HANWHA GENERAL INSURANCE disclosed on the 13th that it posted a net profit of 71.6 billion won in the third quarter this year. That was down 21.3% from a year earlier.
Revenue came to 1.5991 trillion won, up 13.3% from a year earlier, while operating profit fell 26.2% on-year to 92.8 billion won. New long-term protection contracts reached 22.9 billion won, averaging 7.6 billion won per month, up 30% from a year earlier. HANWHA GENERAL INSURANCE said this was the result of steadily strengthening its market dominance by expanding sales focused on the women's and senior insurance markets and scaling up its sales channels.
At the end of the third quarter, the contractual service margin (CSM) of in-force contracts was 4.2607 trillion won, up 12% from 3.8032 trillion won at the end of last year. New business CSM rose 57.2% from 180.7 billion won a year earlier to a quarterly record of 284.1 billion won. In the third quarter, the profit-and-loss segment recorded 156 billion won, up 11.7% from the same period last year, on realized gains from higher stock prices and an increase in dividends and interest revenue.
Insurance profit was 45 billion won, down 49.5% from a year earlier. The decline was due to a worsening gap between expected and actual long-term insurance claims amid an industrywide increase in medical utilization, and more insurance accidents in auto and general insurance due to seasonal factors. As of the end of September, HANWHA GENERAL INSURANCE's risk-based capital (K-ICS) ratio is expected to be 212% after transitional measures.
A HANWHA GENERAL INSURANCE official said, "As we continue to sell high-value products such as women's and senior insurance, our value multiple is steadily increasing, and we expect profitability to improve steadily going forward," adding, "From the fourth quarter, we will focus more on improving profit and loss through sales growth centered on high-quality contracts and precise underwriting not only in long-term insurance but also in auto and general insurance."