Hyundai Marine & Fire Insurance (001450) investor relations material

Executive summary

• Q2 2026 net income reached KRW 391.8 billion, up 85.2% year-over-year, with insurance service results rising 89.8% to KRW 403.7 billion, driven by improvements in long-term and auto insurance.

• Net income for H1 2026 was KRW 654.7 billion, with ROE improving to 23.5% and a strong market position in Korea's non-life insurance sector.

• Insurance service result rose 89.8% year-over-year to KRW 706 billion in H1 2026, with strong growth in long-term and commercial segments.

• The group operates as a comprehensive non-life insurance provider, supported by subsidiaries and affiliates, with a focus on digital transformation and risk management.

• Auto segment showed a turnaround, moving from a loss in H1 2025 to a positive result in Q2 2026.

Financial highlights

• Consolidated operating revenue for H1 2026 was KRW 9.31 trillion, with net profit attributable to owners of the parent at KRW 654.7 billion.

• Insurance service results for long-term insurance were KRW 348 billion in Q2, up 89% year-over-year, with significant improvements in CSM amortization and experience variance.

• Net investment income was KRW 99.7 billion in Q2, recovering from Q1 valuation losses but down 23% year-over-year; investment yield decreased to 2.47% in H1 2026.

• Persistency ratios improved: 13th month at 87.5% and 25th month at 74.1% in H1 2026.

• The CSM balance rose to KRW 9.894 trillion, up KRW 1 trillion from year-end 2025, with industry-leading improvements in persistency and loss ratios.

Outlook and guidance

• Year-end liabilities may rise due to new regulatory guidelines, but underlying earnings capacity remains strong.

• Managed benefits in long-term insurance and reforms in auto insurance are expected to further improve claims experience and profitability in the second half.

• The company aims to maintain stable growth in insurance premiums, enhance profitability through risk-based pricing, and continue digital innovation.

• Asset management will focus on reducing bond purchases and expanding medium-risk, medium-return assets to enhance yields.

• Forward-looking statements are based on internal and external expectations, subject to market changes.