Hyundai Marine & Fire Insurance's Cumulative Net Profit Rises 23% to 780.8 Billion Won in First Three Quarters

Auto insurance posts 23.3 billion won loss
CSM balance rises 14.2% to 10.2 trillion won
K-ICS ratio rises 20.2 percentage points to 210.3%

Hyundai Marine & Fire Insurance said on Nov. 13 that its cumulative net profit for the first three quarters of this year rose 23.1% from the same period last year to 780.8 billion won.

However, its net profit for the third quarter fell 9.6% to 165.7 billion won.

For the first three quarters, auto insurance recorded a loss of 23.3 billion won, continuing to post a deficit compared with the same period a year earlier. Hyundai Marine & Fire Insurance said the deficit appeared to have continued due to accumulated premium cuts and rising claims costs. Auto insurance losses in the third quarter alone totaled 13.1 billion won.

Long-term insurance generated a profit of 824.8 billion won, up 71.8% from the same period a year earlier. The increase is attributed to continued improvement in the variance between expected and actual claims and expenses. Long-term insurance profit in the third quarter rose 16.2% to 211 billion won.

As high-value claims occurred and the overall loss ratio stabilized, general insurance also generated a profit of 167.5 billion won, up 54.0% from the same period a year earlier. In the third quarter alone, profit rose 85.5% year on year to 65.3 billion won.

Investment profit fell 76.1% year on year to 78 billion won. The company recorded an investment loss of 27.8 billion won in the third quarter, turning to a loss from a profit in the same period last year.

Hyundai Marine & Fire Insurance said, "Investment results were weak due to valuation losses on stocks, bonds and alternative investments," adding, "We will improve returns by focusing on high-quality assets, including corporate loans."

As a result of managing its portfolio to focus on profitable product groups with high contractual service margins (CSM), the CSM balance increased 14.2% from the end of last year to 10.1692 trillion won.

Reflecting improvements, including the increase in the CSM balance, the ratio under the Korean Insurance Capital Standard (K-ICS) rose 20.2 percentage points from the end of last year to 210.3%.

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