Hyundai Marine & Fire Insurance Posts 561.1 Billion Won in Net Income Last Year, Down 45.6% from a Year Earlier

Hyundai Marine & Fire Insurance announced on the 23rd that its net income last year came to 561.1 billion won, down 45.6% from a year earlier.

However, Hyundai Marine & Fire Insurance explained that if one-off gains such as the reversal of loss-making contract-related expenses recognized last year (274.4 billion won) are excluded, the decline narrows to 32.3%.

By insurance segment, profit from long-term insurance was 338.1 billion won, a decrease of 60.9%. The deterioration in the loss ratio due to the spread of respiratory diseases such as influenza weighed on earnings.

The automobile insurance segment swung to a loss from a year earlier, posting a loss of 90.8 billion won, as cumulative premium cuts and the impact of abnormal weather conditions such as heavy rain and cold waves increased seasonal volatility.

In general insurance, profit came to 148.8 billion won, down 6.1%, mainly due to the impact of several large-loss accidents.

The K-ICS risk-based capital ratio stood at 190.1%, up 33.1 percentage points from the same period a year earlier. The company said this was driven by managing liability sensitivity through increased purchases of long-term bonds and management of the new business portfolio.

The balance of the Contractual Service Margin (CSM) was 8.9017 trillion won, up 7.9%. Hyundai Marine & Fire Insurance said that improvements in its portfolio focused on product groups with high CSM led to an increase in the new business multiple.