Hyundai Marine & Fire Insurance (001450) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was KRW 247.8 billion, down 30.4% year-over-year, and for 1H 2025 was KRW 451 billion, down 45.9% YoY, with sequential growth of 21.9% from 1Q to 2Q.

• Insurance underwriting/service result dropped 43.4% YoY to KRW 212.7 billion in Q2 and 57.2% YoY to KRW 389 billion in 1H, with all segments showing significant declines.

• Investment profit rose 35% YoY to KRW 129.5 billion in Q2 and 15.8% YoY to KRW 236 billion in 1H.

• ROE at the end of H1 2025 stood at 19.6%, down from 30.9% in H1 2024.

Financial highlights

• Long-term insurance underwriting profit increased 61.1% QoQ but declined 36.6% YoY; new business CSM rose 20.7% YoY to KRW 525.7 billion in Q2.

• Auto insurance underwriting/service result fell 97.7% YoY in Q2, impacted by premium rate cuts and higher claim costs.

• Commercial insurance profit/service result dropped 39.5% YoY in Q2 due to large one-off losses.

• Persistency ratio for long-term insurance remained stable at 87.3% for 13th month and 73.6% for 25th month.

• Solvency ratio (K-ICS) stood at 157.0% at the end of Q2 2025.

Outlook and guidance

• Focus remains on enhancing profit generation, capital adequacy, and profitability-driven solvency management.

• Targeting industry-leading new business CSM multiple of around 17x in H2 and plans to increase CSM and strengthen liability management.

• Plans to maintain RBC ratio above 100% and K-ICS ratio above 170% by year-end.

• Healthcare new business premium and CSM multiples are expected to rise.