Hanwha Life announced on May 15 that its consolidated net profit for the first quarter of this year was 295.7 billion won, a decrease of 19.7% compared to the same period last year.
During the same period, revenue declined by 1.1% to 6.455 trillion won, and operating profit fell by 7.4% to 371.4 billion won.
The first-quarter annualized premium equivalent (APE) for protection-type insurance reached 688.1 billion won, driven by increased sales of new general protection products such as 'NoesimH Health Insurance' and 'CarebackH Health Insurance.' The contractual service margin (CSM) for new contracts was 488.2 billion won, and the company expects to achieve an annual new contract CSM of over 2 trillion won.
The 25th-month persistency rate, an indicator of operational efficiency, rose by 19.3% compared to the end of last year to reach 83.1%. The company explained that it expects to generate a solid CSM through the gradual improvement of mid- to long-term persistency rates.
On a separate basis, first-quarter net profit was 122 billion won. Insurance profit reached 104.2 billion won, up 15% year-on-year, due to a reduction in the difference between expected and actual insurance payments following the resolution of additional IBNR (incurred but not reported) reserve issues. However, investment profit and gains on disposals were negatively impacted by increased volatility in domestic and international financial markets, including U.S. tariff policies.
The number of agents affiliated with Hanwha Life's subsidiary-type general agency (GA) increased by approximately 3,400 from the end of last year to 34,419.
A Hanwha Life representative stated, "We will continue to strengthen our mid- to long-term financial stability by actively launching products that meet customer needs and enhancing operational efficiency through improvements in persistency rates."
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