Health and Accident CSM Soars 136.4%, Driving Growth in New Contract CSM
Global MVP Assets Reach KRW 3.5 Trillion with Expanded Variable Insurance Fund Lineup
Major Capital Raising Unlikely
"Share Buybacks and Other Shareholder Return Policies Under Review"
Mirae Asset Life Insurance achieved stable earnings in the first half of this year, driven by growth in new contracts for protection-type insurance.
On August 14, Mirae Asset Life Insurance announced that its pre-tax profit for the first half of this year reached KRW 102.1 billion, a 51.3% increase compared to the same period last year. Net profit surged by 41.7% year-on-year to KRW 75.5 billion, up from KRW 53.3 billion in the previous year.
This strong performance was primarily attributed to an increase in the Contractual Service Margin (CSM), which expanded due to robust sales of health and accident insurance.
The CSM stood at KRW 245.2 billion, up 42.2% from the previous year. In particular, the health and accident CSM soared by 136.4% to KRW 198.6 billion, demonstrating strong growth in new contracts focused on protection-type products. The accumulated CSM increased by 5.1% from the end of last year to KRW 2.185 trillion.
The total Annualized Premium Equivalent (APE) for the first half of this year was KRW 296.3 billion, a 14.3% increase compared to the same period last year.
In addition, by diversifying its variable insurance fund lineup and enhancing its professional consulting capabilities, the total net assets of the global MVP reached KRW 3.5 trillion. The cumulative return of the MVP60 Fund was 93%. The Risk-Based Capital Ratio (K-ICS), a key solvency indicator, stood at 184.6%, maintaining a stable level of financial soundness.
A representative from Mirae Asset Life Insurance stated, "In order to prepare for uncertain and rapid capital fluctuations resulting from the introduction of IFRS17 and K-ICS, we have not considered share buybacks thus far." The representative added, "Given that the K-ICS ratio in the first quarter of this year was a stable 183.3%, and the basic capital K-ICS ratio was 127.1%, unless there are any special circumstances, we do not anticipate any major capital raising issues, including large-scale rights offerings, in the foreseeable future." The representative also said, "We plan to review shareholder return policies, including share buybacks, to protect shareholders and enhance shareholder value."
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