New Contract CSM Reaches KRW 925.5 Billion
On Track for Over KRW 2 Trillion for Third Consecutive Year
On August 13, Hanwha Life announced that its consolidated net profit for the first half of the year was KRW 461.5 billion, a 30.3% decrease compared to the same period last year.
The company explained that the temporary decline in valuation gains and losses was due to several factors: an increase in loss-bearing contracts resulting from institutional factors such as the strengthening of the liability discount rate, and heightened volatility in domestic and international financial markets caused by factors such as U.S. tariff policies and exchange rate fluctuations.
Operating profit for the first half of the year was KRW 612.1 billion, down 21.6% from the same period last year.
The Contractual Service Margin (CSM) for new insurance contracts in the first half reached KRW 925.5 billion. Expanded sales of health insurance products and improved product profitability had a positive impact. Hanwha Life expects to achieve over KRW 2 trillion in new contract CSM annually this year as well, following similar results in 2023 and 2024.
The profitability of health insurance in the first half was 15.3 times, an improvement from 14.4 times in the first half of last year. The annualized premium equivalent (APE) for new contracts in the first half was KRW 1.7656 trillion.
The number of financial planners (FPs) affiliated with Hanwha Life’s subsidiary-type general agency (GA) increased by about 4,700 from the end of last year to 35,705, which is among the highest in the industry.
The risk-based capital (K-ICS) ratio, a key solvency indicator, rose by 7 percentage points from the previous quarter to 161%. A higher K-ICS ratio indicates stronger financial soundness.
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