Mixed First-Half Results for Non-Life Insurers... "Core Insurance Strength to Decide Second Half"

Samsung, DB, and Hyundai Hold Steady, While KB Falters
Performance Gap Driven by Long-term Insurance and Investment Income
Focus on Impact of Managed Care and Auto Insurance Reforms

The first-half financial performances of major non-life insurance companies this year were mixed, depending on their core insurance business and investment profits and losses. Samsung Fire & Marine Insurance, DB Insurance, and Hyundai Marine & Fire Insurance saw increases in insurance profit, driven by improved long-term insurance profitability and the effects of actuarial assumption changes. Meritz Fire & Marine Insurance offset results with investment income, while KB Insurance experienced declines in both insurance profit and net income. In the second half of the year, fundamental insurance profitability indicators—such as loss ratios and retention rates—are expected to be the decisive factors, rather than one-off gains.

According to the insurance industry on August 15, 2026, Samsung Fire & Marine Insurance's consolidated net income for the first half of the year was KRW 1.374 trillion, up 10.1% from the same period last year. This marks the company's highest half-year performance since the adoption of the new International Financial Reporting Standard (IFRS17) in 2023.

The insurance profit grew as profitability improved in long-term and general insurance, and auto insurance returned to the black. Investment profit also increased due to valuation gains amid a strong stock market and higher equity method gains from UK specialty insurer Canopius. Koo Youngmin, CFO and Head of Corporate Support at Samsung Fire & Marine Insurance, commented, "In the second half of the year, we plan to diversify our business portfolio focusing on specialty and marine insurance, and refine our profit management system to strengthen our leading position in the domestic B2B market," adding, "We will also enhance our competitiveness by expanding our global operations through collaboration with Canopius."

DB Insurance saw a significant recovery in insurance profit in the second quarter, mainly driven by long-term insurance. This was the result of an improved risk loss ratio and the reversal of costs related to loss-making contracts due to actuarial assumption changes. General insurance, which had underperformed due to a major accident in the first quarter, returned to profitability in the second quarter. However, auto insurance continued to face profitability pressures due to accumulated premium reductions and higher claims costs.

Hyundai Marine & Fire Insurance posted the most notable improvement in insurance profit among leading non-life insurers. Losses from differences between expected and actual insurance claims in long-term coverage narrowed, and one-off profit reversals were recorded thanks to the adoption of advanced actuarial assumption guidelines. General insurance also benefited from a favorable base effect due to high-value claims a year earlier and stabilized loss ratios.

Auto insurance recorded an overall loss in the first half, but returned to profit in the second quarter. Although investment profit decreased due to valuation losses from rising interest rates, improvements in the core insurance business more than offset this, resulting in higher net income.

Meritz Fire & Marine Insurance experienced a slight decline in insurance profit, but investment earnings made up for it. In long-term insurance, increased amortization of the Contractual Service Margin (CSM) and profit reversal from actuarial assumption changes contributed positively. However, higher payouts for thyroid metastatic cancer coverage and increasing medical expenses became burdens. Hyejin Park, an analyst at Daishin Securities, explained, "The significant growth in investment profit was due to valuation gains from the substantial increase in equity-type assets built up through phased investments since last year."

In contrast to other major non-life insurers, KB Insurance saw decreases in both insurance profit and net income. While general insurance improved, it was not enough to offset the overall decline in insurance profit. KB Insurance intends to expand its long-term profit base through profitability-focused product sales and contract management.

A financial sector official stated, "From the second half of the year, insurance fundamentals such as loss ratios and retention rates will become more important," and added, "The impact of changes like the introduction of managed care benefits for manual therapy and reforms to the auto insurance program for patients with minor injuries will determine whether such effects translate into real profit and loss for each insurer, and thus shape their overall performance."

This content was produced with the assistance of AI translation services.