Hanwha Life Insurance (088350) Q2 2025 earnings summary

Executive summary

• Achieved strong new business CSM of KRW 925.5 billion in H1 2025, reaching nearly half of the annual target despite industry volatility and regulatory tightening.

• Consolidated net profit was KRW 461.5 billion, with separate net profit at KRW 180 billion, both declining year-over-year due to lower insurance income and investment returns.

• Organization size increased by 4,700 people, supporting channel competitiveness and sales efficiency.

• Expanded global presence with the acquisition of Velocity Clearing in the U.S. and equity investment in Nobu Bank, Indonesia.

• Consolidated revenue for the half-year ended June 2025 was KRW 14,245,162 million, with operating income of KRW 612,062 million and net income attributable to owners of the parent at KRW 351,155 million.

Financial highlights

• New business APE for H1 2025 was KRW 1.8 trillion, slightly down YoY, but Q2 APE rose 8.7% YoY, driven by whole life and long-term premium products.

• In-force CSM at end-H1 was KRW 8.8 trillion, impacted by liability discount rate cuts and experience variance.

• Investment yield in Q2 was 3.17%, with 92% of the portfolio in interest-bearing assets.

• Insurance segment revenue was KRW 12,146,703 million, with operating profit of KRW 536,165 million.

• Net cash provided by operating activities was KRW 2,459,015 million; net cash used in investing activities was KRW -4,756,414 million; net cash from financing activities was KRW 2,253,878 million.

Outlook and guidance

• Targeting year-end K-ICS ratio in the mid-160% range, with ongoing efforts to improve new business CSM inflow and manage regulatory changes.

• Focused on increasing insurance profits and investment returns in H2 2025 through product monitoring and selective asset allocation.

• Strategic investments in digital insurance, asset management, and overseas banking are expected to drive future growth.

• On track to achieve KRW 2 trillion annual new business CSM target.

• Year-end new business CSM multiple target is 9x, with continued emphasis on high-margin health insurance.