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[Alpha Biz=(Chicago) Reporter Paul Lee] Hanwha Life Insurance and Kyobo Life Insurance saw their earnings fall significantly from the same period last year, the report showed. It was largely due to losses in the investment sector.
Hanwha Life Insurance announced on the 15th that its cumulative net profit by the third quarter of this year was KRW 577.9 billion, down 26.6% from the same period last year (KRW 787.2 billion). In the third quarter alone, we lost 40.8 billion won. In the third quarter of last year, it posted a net profit of 310.1 billion won, but this year it turned into a deficit.
Hanwha Life Insurance's insurance sales were good. In the third quarter of this year, the new contract margin (CSM) was 691.6 billion won. The cumulative new contract CSM was 1.8559 trillion won, up 48.6% from the same period last year (1.2492 trillion won).
Hanwha Life Insurance's annual premium (APE) for new contracts was 2.5651 trillion won, up 86.6% from 1.3743 trillion won a year earlier. In particular, guaranteed APE increased by 118% to 1.7932 trillion won. It is explained that sales of profitable general guarantee products such as cancer insurance and dementia insurance have expanded.
However, we lost 252.3 billion won in investment in the third quarter. Rising interest rates have caused losses in alternative investments such as bonds and overseas commercial real estate.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
