[Special Stock] Hyundai Haesang Hits 52-Week Low Amid Dividend Challenges Forecast

Hyundai Marine & Fire Insurance recorded a 52-week low amid market expectations that dividends will be difficult for the time being.

As of 10 a.m. on the 20th, Hyundai Marine & Fire Insurance was trading at 24,050 KRW, down 9.25% from the previous day. During the session, it fell to 23,950 KRW, marking a 52-week low.

On the same day, DB Financial Investment downgraded Hyundai Marine & Fire Insurance's investment rating to 'Hold,' citing low expectations for dividends in the near term, and lowered the target price from 42,800 KRW to 26,900 KRW.

Researcher Lee Byung-geon of DB Financial Investment stated, "Due to an increase in other comprehensive losses caused by falling interest rates and an increase in surrender value reserves, dividends are unlikely this year," adding, "Considering the nearly 30 basis points (1bp = 0.01 percentage point) decline in the 10-year government bond yield since the end of September and the strengthening of actuarial assumptions for non-surrender products, the year-end solvency ratio (K-ICS) is expected to fall to around 150%, which is concerning."

He continued, "Assuming no significant changes in the current regulatory revision direction, it will be difficult to resume dividends over the next 2 to 3 years under neutral assumptions," and analyzed, "Due to recent political uncertainties, the likelihood of early and vigorous reforms related to indemnity insurance and non-reimbursable benefits is slim."