Lotte Non-Life Insurance disclosed on the 15th that it posted a first-quarter net loss of 19.8 billion won. Operating profit and loss for the same period came to a loss of 28.5 billion won.
A Lotte Non-Life Insurance official said, "The decline in investment profit and loss was due to an unfavorable market environment, including the Middle East war and rising oil prices," adding, "However, key indicators such as insurance operating profit and the contractual service margin (CSM) continued to improve, strengthening the competitiveness of our core business."
In the first quarter, Lotte Non-Life Insurance's insurance operating profit was 27.2 billion won, turning to the black from a loss of 11.2 billion won a year earlier. At the end of the first quarter, the contractual service margin (CSM) was 2.509 trillion won, up 11.1% from a year earlier. First-quarter CSM amortization was 58.7 billion won, up 12.3% from a year earlier.
Investment operating performance for the same period recorded a loss of 55.7 billion won. This was due to a sharp rise in interest rates amid an unfavorable market environment, including the Middle East war and rising oil prices. At the end of the first quarter this year, Lotte Non-Life Insurance's preliminary Korean Insurance Capital Standard (K-ICS) ratio was 164.4%.