[Click eStock] "Mirae Asset Life Insurance, Target Price Maintained at 6,500 Won"

Shinhan Investment Corp. maintained a target price of 6,500 KRW and a buy rating for Mirae Asset Life Insurance on the 24th.

Researchers Heeyeon Lim and Minjong Kim of Shinhan Investment Corp. stated, "The company posted solid earnings that met expectations," adding, "With improvements expected in the surrender reserve system within the year, securing distributable profits is anticipated to increase preference within the industry."

The company recorded a net profit of 39.4 billion KRW in the first quarter, meeting expectations. Operating profit (OP) was 50.1 billion KRW, and net profit (NP) was 39.4 billion KRW. Excluding the effects of changes in the IBNR (Incurred But Not Reported) loss reserve system, the recurring OP was 70.9 billion KRW, representing a real increase compared to the recurring OP adjusted for last year's one-time factors.

Quarterly guaranteed premiums at the beginning of the month were 5.6 billion KRW, new contract APE (Annualized Premium Equivalent) was 132.2 billion KRW, guaranteed premiums were 69.0 billion KRW, variable investment-type premiums were 63.2 billion KRW, reflecting growth in variable insurance due to recovery in stock market investment sentiment. New contract CSM (Contractual Service Margin) was estimated at 80.3 billion KRW, with a CSM conversion multiple of 17.2 times.

A negative variance of 24.8 billion KRW in actual versus expected results and a negative 20.8 billion KRW related to the IBNR system change were reflected, resulting in other losses of 15.7 billion KRW due to indirect business expenses recognized each quarter.

Fees amounted to 18.7 billion KRW, variable insurance 13.1 billion KRW, retirement pensions 5.6 billion KRW, variable reserves 12.3 trillion KRW, and retirement pension reserves 6.1 trillion KRW.

The investment yield on assets was 2.35%, the discount rate was 3.21%, and the holding spread was 3.18%. Excluding last year's one-time bond disposal gains of 44.7 billion KRW, investment gains improved compared to the same period last year.