Hanwha Life Insurance (088350) Q3 2024 earnings summary

Executive summary

• Achieved strong new business APE growth of 35.7% year-over-year to KRW 977 billion, driven by organizational expansion, product diversification, and a large sales force, with protection APE comprising 80% of the total.

• Net income improved, with Q3 separate net income at KRW 236.8 billion and cumulative net income at KRW 584.6 billion; consolidated cumulative net income reached KRW 727 billion.

• Persistency ratios improved, with 13th month at 90.8% and 25th month at 61.6%.

• Sales force expanded to 30,127, surpassing the annual target ahead of schedule, with a year-over-year increase of 3,538.

• Insurance, asset management, and securities segments all contributed positively, with robust insurance margins and investment returns.

Financial highlights

• Q3 separate net income reached KRW 236.8 billion; cumulative net income was KRW 584.6 billion, and consolidated cumulative net income was KRW 727 billion.

• New business APE reached KRW 977 billion, with protection APE accounting for 80% of the total.

• Investment yield improved to 3.79% year-over-year and quarter-over-quarter, exceeding the liability crediting rate of 3.47%.

• Insurance profit was KRW 107 billion, and investment profit was KRW 174 billion, supported by solid interest earnings and REITs divestment.

• Total assets increased to 153.4 trillion KRW at Q3 2024, up from 147.9 trillion KRW at the end of 2023.

Outlook and guidance

• Targeting a year-end K-ICS ratio of 175% or higher, despite regulatory headwinds.

• Full-year and 2025 new business CSM guidance set at over KRW 2 trillion.

• Ongoing efforts to secure sufficient income for dividends and adapt to regulatory changes.

• Continued focus on mid- and long-term product offerings, organizational growth, and digital transformation.

• Management expects continued stable growth in insurance and investment operations, with a focus on capital strength and risk management.