Hanwha Life announced on the 23rd that it recorded consolidated net profit of 836.3 billion won last year. The results reflect performance from general agency (GA) subsidiaries including Hanwha Life Financial Service, as well as major subsidiaries in non-life insurance, asset management, and securities, along with newly acquired overseas subsidiaries.
GA subsidiaries posted net profit of 162.1 billion won, while major overseas subsidiaries recorded 117.7 billion won. The company acquired Nobu Bank in the second quarter and Velocity Securities in the third quarter of last year, with six months of results reflected. Full-year contributions from these acquisitions could drive additional earnings growth this year.
On a standalone basis, net profit came in at 313.3 billion won. The decline reflects industry-wide losses from the gap between expected and actual insurance claims due to increased medical utilization, as well as the base effect from asset securitization gains recorded in the previous year.
Hanwha Life said it focused on improving product profitability while maintaining a protection-oriented sales strategy. The company strengthened its core competitiveness by enhancing distribution channel capabilities and continuously launching products that meet market demand. Expanded sales of health insurance products pushed the annual new contract Contractual Service Margin (CSM) to 2.0663 trillion won, exceeding 2 trillion won for the third consecutive year.
The health insurance profitability multiple rose to 15.9 times, up from 15.3 times in 2024. Whole life insurance profitability also improved to 4.0 times from 2.9 times in 2024 as the company strengthened its portfolio with a focus on medium- to long-term payment products. The company also achieved product differentiation by securing 7 of the 13 exclusive use rights registered with the Korea Life Insurance Association last year.
The number of financial planners (FPs) at Hanwha Life's subsidiary-type GAs reached 36,923, an increase of 5,918 from the previous year. The 13th-month persistency rate, an indicator of sales force stability, improved by 4.9 percentage points year-over-year to 54.6%. The Korean Insurance Capital Standard (K-ICS) ratio stood at 157%.
"We will strengthen our portfolio centered on health insurance and long-term payment whole life products, and build a stable insurance profit base through claims experience management," said Yoon Jong-kuk, Chief Financial Officer of Hanwha Life. "Based on this foundation, we will focus on enhancing corporate value and continue to expand future competitiveness through AI-based digital innovation and overseas subsidiary growth."