Hanwha Life Insurance's Separate Net Profit Last Year 354.3 Billion KRW... 13.7% Decrease YoY

"Full Effort for IFRS17 and K-ICS Preparation"

[Asia Economy Reporter Minwoo Lee] Hanwha Life Insurance recorded a separate basis net profit of 354.3 billion KRW for the past year. With the introduction of the new accounting standard IFRS 17, the company announced its commitment to continuously grow by increasing new contract value and improving management structure.

On the 22nd, Hanwha Life announced through its annual performance conference call that it recorded separate basis earned premiums (sales) of 18.628 trillion KRW and net profit of 354.3 billion KRW for the previous year. Earned premiums increased by 26.3% compared to the previous year, while net profit decreased by 13.7%.

New contract annualized premium equivalent (APE) reached 2.143 trillion KRW, marking a 36.2% increase during the same period. The proportion of general protection insurance within new contract APE was 37%. The company explained that it has continuously expanded the share of general protection insurance in line with IFRS 17. It stated that it will continue to introduce various profitable protection products to establish a stable profit structure.

The 13th installment retention rate was 84.1%, and the 25th installment retention rate was 68.5%. The solvency ratio (RBC), an indicator of capital soundness, was 162.2%, down 22.4 percentage points from the previous year. However, with the introduction of the new solvency system (K-ICS) starting this year, it is expected to improve further.

Additionally, through active asset-liability management (ALM), the duration gap (difference in remaining maturity between assets and liabilities) was recorded at 0.3 years. Furthermore, loss ratio was identified at 80.1% due to growth in risk premiums and accident claim management through strengthened underwriting.

A Hanwha Life official stated, "This year is the inaugural year for the new system, and changes are expected across management including sales, investment, and administration," adding, "Through a profitability-centered management strategy, we aim to secure a new contract service margin (CSM) of 1.8 trillion KRW and achieve a K-ICS ratio of over 180%."