Hyundai Marine & Fire Insurance (001450) investor relations material

Executive summary

• Net income for 2025 was KRW 561.1 billion, down 45.6% year-over-year, with declines across all insurance lines and a swing to loss in auto insurance.

• Insurance service result for 2025 dropped 62% to KRW 396.1 billion, reflecting significant operational headwinds, especially in long-term and auto segments.

• Q4 2025 saw a net loss of KRW 73 billion, but new business CSM Multiple improved to 15.9x, the highest in the industry.

• K-ICS solvency ratio rose by 33.1 percentage points to 190% by year-end, reflecting improved capital management and ALM.

• Investment income decreased 6.2% year-over-year, but investment yield improved to 3.58% in 2025 from 3.50% in 2024.

Financial highlights

• Insurance service result for 2025 was KRW 396.1 billion, a 62% decline year-over-year, with long-term segment down 60.9% and auto segment turning negative.

• Net investment income for 2025 was KRW 330.3 billion, down 6.2% year-over-year.

• Investment yield was 3.58% in 2025, up from 3.50% in 2024.

• Persistency ratio for long-term business slightly decreased to 86.6% in 2025.

• New business CSM multiples increased, with healthcare at 17.1 times (+3.2 YoY) and overall new-biz at 15.9 times (+3.1 YoY).

Outlook and guidance

• 2026 expected to see heightened interest rate volatility and regulatory changes impacting liability assumptions.

• Strategy focuses on portfolio optimization in commercial, L/R improvement in auto, and expanding high-margin long-term sales.

• Asset allocation to shift further toward bonds (58% in 2026F, up from 55.5% in 2025), with a focus on profitability and duration extension.

• Shareholder return plans include treasury share cancellation and accelerated buybacks upon securing distributable income.

• Auto insurance projected to recover in 2026, with premium increases and cost controls.