Hyundai Marine & Fire Insurance Posts 1.03 Trillion KRW Net Profit Last Year, Up 33.4% Year-on-Year

Long-term Insurance Profit and Loss: 865.3 Billion KRW, Up 248%
Auto Insurance: 19.2 Billion KRW, Down 91%
K-ICS Ratio at 155.8%, Exceeding Recommended Level

Hyundai Marine & Fire Insurance announced on the 21st that it recorded a net profit of 1.0307 trillion KRW last year. This represents a 33.4% increase compared to the previous year. Long-term insurance profit and loss increased by 248% in one year.

Seoul Jongno-gu Hyundai Marine & Fire Insurance headquarters building. Provided by Hyundai Marine & Fire Insurance

Long-term insurance profit and loss amounted to 865.3 billion KRW, a 247.6% increase from the previous year. Hyundai Marine & Fire Insurance explained that costs related to loss-bearing contracts decreased due to the effect of premium rate hikes for indemnity insurance. However, the deficit in insurance claim reserves widened due to increased losses from epidemic respiratory diseases such as a rise in flu patients.

Automobile insurance profit and loss recorded 19.2 billion KRW, down 90.5% compared to the previous year. This was due to premium reductions and an increase in car accidents caused by seasonal factors such as heavy snowfall at the end of last year.

General insurance profit and loss increased by 107.5% year-on-year to 158.6 billion KRW. On the other hand, investment profit and loss decreased by 21.9% during the same period to 352.1 billion KRW due to base effects such as dividend income.

Insurance contract margin (CSM) was recorded at 8.2477 trillion KRW, down 9.2% from the previous year due to the impact of financial authorities’ guidelines on surrender rates for no-surrender and low-surrender insurance policies.

A Hyundai Marine & Fire Insurance official said, "We are striving to improve performance through long-term new contract CSM multiple growth and the composition of a highly profitable product portfolio."

The solvency ratio (K-ICS) stood at 155.8%, a decrease of 14.3 percentage points from the end of the fourth quarter last year. It barely exceeded the supervisory authority’s recommended level of 150%.

Hyundai Marine & Fire Insurance stated, "We plan to strengthen K-ICS ratio management through expanding asset duration, issuing capital securities, and promoting reinsurance."