Lotte Insurance Posts 36.2 Billion Won Net Profit in Q2 as Both Insurance and Investment Operations Turn Profitable

Lotte Insurance delivered solid results in the second quarter of this year.

According to Lotte Insurance on August 14, operating profit for the second quarter reached 48.3 billion won, while net profit was 36.2 billion won, marking increases of 60.2% and 55.2%, respectively, compared to the same period last year.

Insurance operating profit for the second quarter came to 32.9 billion won, turning positive after a loss of 11.2 billion won in the first quarter. The first-quarter loss was due to temporary regulatory changes, such as adjustments to the assumptions for loss ratios by attained age.

Investment operating profit also swung to a surplus of 15.4 billion won, compared to a loss of 7.9 billion won in the same period last year. The company explained that, following a change in its largest shareholder in 2019, it has pursued investment asset rebalancing-such as selling fund securities, increasing safe assets, and reducing required capital-which has led to structural improvements.

The new contract CSM (Contractual Service Margin) reached 103.6 billion won, bringing the total for the first half of the year to 213.5 billion won. As of the end of June, the CSM balance stood at 2.2677 trillion won, an increase from the previous quarter. Direct premiums from long-term protection-type insurance amounted to 1.2514 trillion won, up 7.0% year-on-year.

On a cumulative basis for the first half, operating profit was 61.3 billion won and net profit was 47.5 billion won, representing decreases of 15.3% and 17.2%, respectively, compared to the same period last year.