[Click e-Stock] "Hyundai Marine & Fire Insurance, Target Price Up...Earnings Outlook Bright This Year"

The securities industry raised its target price for Hyundai Marine & Fire Insurance on February 24, citing higher earnings expectations for this year.

On this day, Meritz Securities raised its target price to 45,000 won and upgraded its investment rating from "Hold" to "Buy." Daishin Securities raised its target price to 48,000 won and maintained its "Buy" rating.

Jo Ahae, an analyst at Meritz Securities, explained the reason for the higher target price, saying, "We reflected the increase in net assets driven by improvements in the (asset-liability) duration," and added, "Although earnings volatility due to regulatory changes was high in 2025, expectations for this year's results remain valid thanks to the indemnity health insurance reform and higher automobile insurance premiums."

Jo also said, "The improvement in the capital ratio is positive, and this is a time when we need to closely watch the reform of the surrender value reserve system," adding, "Although specific details are not yet available, if the accumulation ratio for this reserve is set at 50%, distributable profit is expected to be secured."

Hyejin Park, an analyst at Daishin Securities, also said, "The variance between expected and actual results and the loss component of onerous contracts still appear to be unmanaged," but added, "However, we judge that there is a high possibility that the loss ratio trend will actually decline, and capital management has improved dramatically over the past year," giving a positive evaluation of Hyundai Marine & Fire Insurance.

Hyundai Marine & Fire Insurance's earnings for the fourth quarter of last year fell short of expectations. Net loss came to 73.0 billion won, continuing to show a deficit compared with the same period a year earlier and turning to a loss quarter-on-quarter. Park said, "The company posted weak results as loss-related expenses within other insurance profit and loss recorded a large loss," adding, "Loss-related expenses amounted to minus 315.7 billion won, mostly due to an increase in claims for third-generation indemnity health insurance."