Hyundai Marine & Fire Insurance (001450) investor relations material

Executive summary

• Net income for Q1 2026 was KRW 223.3 billion, up 9.9% year-over-year, with ROE stable at 18.0%, driven by strong commercial and long-term insurance performance, despite auto insurance swinging to a loss.

• Insurance service result rose 71.7% year-over-year to KRW 302.1 billion, with notable improvement in long-term insurance due to narrowed claim variance and reversal of one-off costs.

• Persistency ratio remained stable year-over-year, and UI loss ratios improved as the portfolio shifted toward profitability.

• Solvency ratio (K-ICS) improved to 207.2%, up 17 percentage points from year-end and 17.0 percentage points from 1Q25.

Financial highlights

• Net investment income (excluding net insurance finance expenses) was KRW 233.5 billion, down 26.3% year-over-year due to KRW 90 billion in valuation losses on structured bonds and alternative investments.

• Net investment income dropped 94.3% YoY to KRW 6 billion, with investment yield declining to 2.01% from 2.73%.

• Net investment expense increased by 8% year-over-year, mainly from higher interest expense on insurance liabilities and changes in policyholder dividend accounting.

• Total shareholders' equity increased 8.2% YTD to KRW 5,285 billion.

• Premiums in commercial and auto segments grew 13.2% and 0.3% YoY, while long-term new business premiums fell 14.8%.

Outlook and guidance

• 2026 guidance for long-term insurance loss ratio is 98.9%, targeting a 0.7 percentage point decrease, despite KRW 30 billion in respiratory disease losses and KRW 20 billion from delayed managed benefit schemes.

• Regulatory changes, such as the advanced actuarial oversight plan and new medical indemnity products, are expected to reduce losses and improve earnings.

• Continued focus on high-margin products and minimizing interest rate sensitivity to enhance earnings capacity.

• Forward-looking statements are subject to change due to market conditions; actual results may differ from current estimates.