Hanwha Life recorded a net profit of 461.5 billion won in the first half of this year. This is a decrease of over 30% compared to the same period last year. Although the new contract insurance contract margin (CSM) has increased, changes in the strengthened liability discount rate system and U.S. tariff policies caused a decline in revenue.
On the 13th, Hanwha Life announced through a conference call that it achieved a consolidated net profit of 461.5 billion won in the first half of this year. This is a 30.8% decrease compared to the 667.3 billion won in the same period last year. Hanwha Life explained that the decrease in net profit was due to the expansion of loss-bearing contracts stemming from institutional factors such as the strengthening of the liability discount rate, as well as increased volatility in domestic and international financial markets due to U.S. tariff policies and exchange rate fluctuations.
However, the newly contracted insurance contract margin (CSM) achieved 925.5 billion won in the first half. With the expansion of health insurance product sales and improved product profitability, an annual achievement of over 2 trillion won in new contract CSM is expected this year, following 2023 and 2024. Notably, despite falling interest rates and intensified competition, the profitability of health insurance in the first half improved to 15.3 times, compared to 14.4 times in the same period last year. The second quarter new contract annualized premium equivalent (APE) was 884.4 billion won, an increase of 8.7% compared to the same period last year, while the first half new contract APE recorded 1.7656 trillion won.
K-ICS achieved 161%, a 7 percentage point increase compared to the previous quarter, through stable new contract CSM inflow and proactive financial soundness management. The duration gap recorded 0.08 years, a decrease of 0.19 years from the previous quarter.
The number of exclusive planners (FP) affiliated with Hanwha Life's subsidiary-type GA increased by approximately 4,700 compared to the end of last year, reaching 35,705. As a result of strengthening organizational stability through sales infrastructure, the retention rate for the 13th round increased by 6.0 percentage points compared to the end of the previous year, reaching 55.7%. The 25th round contract maintenance rate, an indicator of sales efficiency, recorded an increase of 16.3 percentage points compared to the end of the previous year, standing at 80.1%.
A spokesperson for Hanwha Life stated, "Based on stable financial soundness, we will focus our efforts on enhancing corporate value by increasing CSM of retained contracts through improving optimal efficiency and managing K-ICS ratios through ALM strengthening."