Hyundai Marine & Fire Insurance said on the 14th that cumulative net income for the third quarter this year was 634.1 billion won, down 39.4% from a year earlier.
Excluding one-off gains such as the reversal of loss-bearing contract-related expense last year, the figure was down 24.9%. Third-quarter net income was 183.2 billion won, down 14.2% from a year earlier.
Auto insurance profit and loss plunged 520.3% from a year earlier, swinging to a deficit with a loss of 55.3 billion won. The impact came from four consecutive years of accumulated premium cuts and flood damage from heavy rains in July. Long-term insurance profit and loss was 181.5 billion won, up 27.9% from last year.
Amortization income of the contractual service margin (CSM) is on the rise, but the spread between expected and actual insurance claims widened again due to the summer respiratory disease outbreak, trimming the pace of increase. General insurance rose 30.7% from last year to 35.2 billion won as the occurrence of large claims slowed and the loss ratio stabilized.
Investment profit and loss fell 18.1% from last year to 89.4 billion won due to valuation losses on some assets and the effect of a weaker won. As of the end of the third quarter, the CSM balance was 9.6278 trillion won, up 2.7% from the previous quarter. As the CSM new-business multiple rose, the increase in the size of new-business CSM also improved.
The capital adequacy (K-ICS) ratio, which shows financial soundness, was 179.8%, up 9.8 percentage points from the previous quarter.