Hanwha Life Insurance (088350) Q3 2025 earnings summary

Executive summary

• Achieved consolidated net profit of ₩307.4 billion in Q3 2025, driven by strong subsidiary performance, overseas expansion, and enhanced profitability in health and whole-life products.

• In-force CSM increased by ₩226.3 billion quarter over quarter to approximately ₩9.1 trillion, supported by robust new business CSM inflow.

• Protection APE rose 13% year-over-year to ₩879 billion, with improved profitability in health and whole life insurance.

• Persistency ratios improved, with the 25th month ratio up 15.8 percentage points YoY to 79.6%.

• Consolidated revenue for the nine months ended September 30, 2025, was KRW 20.1 trillion, up from KRW 17.3 trillion year-over-year.

Financial highlights

• New business APE reached ₩1.6 trillion in Q3, up 13% YoY, with new business CSM growing 4.1% cumulatively to ₩1.5 trillion.

• In-force CSM reached KRW 9.1tn, with a net growth of KRW 226bn compared to the previous quarter.

• Separate net income was ₩136.1 billion, showing a positive trend quarter over quarter due to higher investment profits.

• Investment yield increased by 26 bps QoQ to 3.43%, aided by favorable equity markets and alternative asset returns.

• Operating profit for the period was KRW 967.0 billion, up from KRW 908.7 billion year-over-year.

Outlook and guidance

• Targeting new business CSM of over ₩2 trillion for 2025 and 2026, with a focus on profitability and high-margin products.

• On track to reach approximately 75% of FY25 net income guidance (KRW 2tn) by 3Q25.

• Experience variance adjustment expected to improve in Q4 and stabilize in 2026 due to fewer business days and strengthened underwriting.

• K-ICS ratio year-end target is around 155%, with no plans to issue sub-debt.

• The group maintains a stable outlook, supported by strong capital adequacy and risk management.