Hanwha Life Insurance (088350) Q1 2025 earnings summary

Executive summary

• Achieved consolidated net profit of KRW 295.7 billion in Q1 2025, with separate net profit at KRW 122 billion, despite external uncertainties and market volatility.

• Enhanced operational efficiency, product margins, and sales competency contributed to improved mid- to long-term financial stability.

• Received upgrades to AAA stable from three domestic agencies and A+ stable from Fitch in Q1 2025.

• Total consolidated assets reached KRW 165.1 trillion, up from KRW 160.1 trillion at the end of 2024.

• Insurance contract liabilities increased to KRW 118.1 trillion, reflecting business growth.

Financial highlights

• Q1 2025 consolidated revenue was KRW 6.46 trillion, with operating profit of KRW 371.4 billion and investment yield at 3.05%.

• Consolidated net income declined year-over-year due to lower investment income from increased market volatility.

• New business CSM for Q1 was KRW 488.2 billion, on track for annual target over KRW 2 trillion.

• Net cash from operating activities was KRW 1.41 trillion, while investing activities used KRW 2.79 trillion.

• Insurance profit reached KRW 104 billion, supported by stable amortization gains from new business CSM.

Outlook and guidance

• Targeting new business CSM of over KRW 2 trillion for the full year, with continued focus on high-margin products and improved persistency ratios.

• Guidance for K-ICS ratio by year-end 2025 is mid-160%, with an internal target of around 170%.

• The company aims to maintain stable dividend levels, balancing profitability, regulatory changes, and capital strength.

• Plans to further improve profitability and maintain industry-leading channel competitiveness.

• No specific forward-looking financial guidance was provided, but management emphasized ongoing focus on core business competitiveness and stable returns.