Hyundai Marine & Fire Insurance Reports KRW 451 Billion Net Profit in First Half, Down 45.9% Year-on-Year

"Excluding One-Off Loss, Decline Narrows to -19.3%"
CSM Balance at KRW 9.3 Trillion, Up 13.7%
K-ICS Ratio at 170%, Up 13 Percentage Points Year-on-Year

Hyundai Marine & Fire Insurance announced on the 13th that its net profit for the first half of the year was KRW 451 billion, a decrease of 45.9% compared to the same period last year.

The company explained that if the one-off profit from the previous year (KRW 274.4 billion from the reversal of costs related to loss-bearing contracts) is excluded, the decline narrows to 19.3%.

The balance of the Contractual Service Margin (CSM) stood at KRW 9.3764 trillion, up 13.7% from the end of the previous year. The new contract CSM multiple was 17.4 times, an increase of 4.5 times from 12.9 times last year.

A company official said, "We are improving our portfolio by focusing on highly profitable CSM product groups," adding, "As the CSM multiple has increased, the growth rate of new contract CSM has also improved."

The K-ICS (Korean Insurance Capital Standard) ratio, a key solvency indicator, was 170.0%, up 13 percentage points from the end of last year. A higher K-ICS ratio indicates stronger financial soundness.

The company explained, "The expansion of long-term bond investments has reduced interest rate risk, and the inflow of new contracts has also had a positive impact."

Looking at the detailed breakdown, the long-term insurance segment posted a profit of KRW 298.4 billion, down 59.3% from the same period last year. Due to a surge in respiratory illnesses and non-covered medical services, there was a KRW 144.1 billion gap between expected and actual insurance payouts.

However, the company noted that if the one-off profit of approximately KRW 274.4 billion from the previous year is excluded, the decline narrows to about -35%.

The auto insurance segment reported a profit of KRW 16.6 billion, a decrease of 79.9% year-on-year. This was negatively affected by consecutive premium reductions and increased compensation costs due to inflation.

The general insurance segment recorded a profit of KRW 73.5 billion, down 20.5% from the previous year. Large-scale claims, such as those involving Kumho Tire and Heungdeok IT Valley, had an impact.

Investment profit was KRW 236.4 billion, up 15.8% from the same period last year. Interest income increased due to the expansion of bond investments.