Lotte Insurance announced on the 14th that it recorded a net profit of 47.5 billion won. This figure represents a decrease of 17.2% compared to the same period last year.
Lotte Insurance explained that the decline in net profit was due to the application of the no-margin guideline at the end of last year and the application of loss ratio assumptions by age attained at the beginning of this year, resulting in a one-time temporary adjustment of the CSM.
In the first half of the year, the insurance operating profit was 21.6 billion won, reflecting the temporary one-time impact of regulatory changes in the first quarter. The investment operating profit for the first half reached 39.7 billion won.
The sales scale of long-term guarantee insurance, which is the key insurance product, continued its growth trend. In the first half of 2025, the premium income for long-term guarantee insurance at Lotte Insurance was 1.2514 trillion won, an increase of 7% compared to 1.1699 trillion won in the same period last year.
As of the end of June 2025, the balance of CSM at Lotte Insurance was 22.677 trillion won, showing a slight increase compared to the first quarter. The CSM from new contracts that flowed in during the first half was 2.135 billion won, of which the amount that came in during the second quarter reached 1.036 billion won.
According to its digital transformation (DT) vision, the new growth drivers, Wonder and Alice (ALICE), have been showing continuous performance. In the first half of 2025, a total of 2,246 individuals were appointed as smart planners (designers), which is more than ten times the number of new planners in the same period last year. During the same period, the premium income and number of contracts for long-term insurance also surged over tenfold, recording unparalleled success as a digital designer platform.
Alice has also solidified its position as the only 'lifestyle-oriented insurance platform' in the country. In the first half of this year, customer inflow (MAU) reached a total of 1.96 million cases, growing 24.4% compared to 1.58 million cases in the first half of last year. The number of contracts concluded was 126,752, which is an increase of 63.3% compared to 77,611 cases in the first half of last year.
A Lotte Insurance official said, 'We recorded solid business performance in the second quarter through continuous growth of insurance operating profit and resolution of secondary reverse margins,' and added, 'We will continue to ensure stable acquisition of new contract CSM and improve the investment sector to enhance corporate value.'