Hyundai Marine & Fire Insurance announced on November 14 that its standalone net profit for the third quarter of this year was provisionally tallied at 183.2 billion won. This represents a 14.2% decrease compared to the same period last year.
The cumulative net profit for the first three quarters was 634.1 billion won, down 39.4% year-on-year. However, Hyundai Marine & Fire Insurance explained that, excluding the reversal of 274.4 billion won in loss-bearing contract-related expenses that occurred last year, the actual decline was around 24.9%.
The long-term insurance segment posted a profit of 181.5 billion won in the third quarter, up 27.9% from a year earlier. While amortization income from the Contractual Service Margin (CSM) continued to rise, the increase in insurance claim loss ratios due to the summer outbreak of respiratory diseases limited the overall profit growth.
The general insurance segment recorded a profit of 35.2 billion won, an increase of 30.7% compared to the same period last year.
The auto insurance segment swung to a loss, posting a deficit of 55.3 billion won, a sharp decline of 520.3% year-on-year. This was due to large-scale flood damage from heavy rainfall in July, as well as the continued impact of premium reductions over the past several years.
Investment profit fell by 18.1% year-on-year to 89.4 billion won, affected by valuation losses on certain assets and the depreciation of the Korean won.
As of the end of the third quarter, the CSM balance stood at 9.6278 trillion won, up 2.7% from the previous quarter.
The risk-based capital ratio (K-ICS), which indicates financial soundness, improved by 9.8 percentage points from the previous quarter to 179.8%.
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