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

Executive summary

• Net income for H1 2025 was KRW 451 billion, down 45.9% year-over-year, with Q2 2025 net income at KRW 247.8 billion, reflecting higher loss ratios and sequential growth from Q1.

• Insurance service result declined 57.2% YoY to KRW 389 billion, with all segments showing significant drops.

• Net investment income rose 15.8% YoY to KRW 236 billion, while investment profit for Q2 increased 35% YoY to KRW 129.5 billion.

• The group operates through insurance, asset management, and non-financial subsidiaries, maintaining strong credit ratings (A / Stable by S&P, A (Excellent) / Stable by A.M. Best as of July 2025).

Financial highlights

• Consolidated total assets reached KRW 50.13 trillion as of June 30, 2025, with operating revenue for H1 2025 at KRW 9.16 trillion and consolidated net profit at KRW 504.5 billion.

• ROE decreased from 30.9% in H1 2024 to 19.6% in H1 2025.

• Long-term insurance underwriting profit increased 61.1% QoQ but declined 36.6% YoY; auto insurance underwriting profit fell 97.7% YoY to KRW 0.9 billion.

• New business CSM amount rose 20.7% YoY to KRW 525.7 billion in Q2; CSM balance at end-H1 was KRW 9,376.4 billion.

• The group issued KRW 2.6 trillion in new subordinated bonds in 2024–2025, strengthening capital adequacy.

Outlook and guidance

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

• Targeting industry-leading new business CSM multiple of around 17x in H2 and maintaining RBC ratio above 100% and K-ICS ratio above 170% by year-end.

• Plans to increase CSM and strengthen liability management in 2H 2025, with healthcare new business premium and CSM multiples expected to rise.