The first-half performance of TONGYANG Life Insurance, which was incorporated into Woori Financial Group, has fallen short compared to previous years. The core insurance revenue, as well as the investment income supporting the performance, have both underperformed expectations, leading to a net profit for the quarter falling below 100 billion won.
TONGYANG Life Insurance reported on the 11th that its net profit for the first half was 86.8 billion won, a 47.1% decrease compared to the same period last year (164.1 billion won). Insurance revenue was 70.4 billion won, down 48.5% year-on-year, while investment income for the same period was 31 billion won, down 57.3%.
However, the key operating indicator, the insurance contract margin (CSM) balance, increased by 0.4% to 2.7442 trillion won during the same period. Notably, health insurance new contract CSM grew 44.2% year-on-year to 256.8 billion won.
The solvency indicator, the capital adequacy ratio (KICS), rose to 175% in the second quarter, an increase of 48 percentage points from the previous quarter. TONGYANG Life Insurance explained that the improvement in KICS was largely due to the issuance of subordinated bonds worth $500 million (69 billion won) in April.
The policy retention rate improved by 1.8 percentage points and 14.8 percentage points to 90.5% for the 13th installment and 77% for the 25th installment, respectively.