Hyundai Marine & Fire Insurance (001450) Q3 2026 earnings summary

Executive summary

• Q3 standalone net income fell 9.6% YoY to KRW 165.7bn as stronger insurance service results were offset by negative investment income.

• Q3 insurance service result rose 63% YoY to KRW 263.2bn; 1–3Q result increased 63.0% YoY to KRW 969bn.

• 1–3Q separated net income increased to KRW 781bn from KRW 634bn; Q3 separated net income was KRW 166bn, down 57.7% QoQ.

Financial highlights

• 1–3Q net investment income after insurance finance expenses fell to KRW 78bn from KRW 326bn; Q3 recorded a KRW 28bn loss.

• Q3 alternative investment valuation losses were KRW 66.8bn; Q3 investment yield declined YoY to 1.66%.

• 1–3Q ROE was 20.6%, versus 18.6% in 1–3Q 2025; Q3 ROE was 11.0%, down 17.2% QoQ.

• Invested assets totaled KRW 44.5tn at Q3-end; higher rates reduced bond values and the foreign-currency securities share.

Outlook and guidance

• Quarterly investment income goal is KRW 100bn, or KRW 400bn annually, supported by a higher-yielding asset base and additional investment capacity.

• Higher new-money yields are expected to lift portfolio yields gradually; further valuation losses are assessed as limited if rates remain stable.

• Year-end actuarial updates are expected to raise insurance liabilities and reduce CSM, amortization income, and new-business CSM multiples next year; better claims variances may offset most of the amortization decline.

• 2027 sales strategy prioritizes profitability; phased commissions are expected to reduce healthcare insurance sales, with channel-specific mix and underwriting actions.

• Core K-ICS of 90%–100% in 2027 is viewed as manageable assuming full surrender value reserve recognition; KICS is projected at 190% under current rate assumptions.