Last year, insurance companies recorded a net profit exceeding 13 trillion won (US$9.68 billion), marking a record high performance in history.According to the “2023 Insurance Company Management Performance” report released by the Financial Supervisory Service on March 26, the combined net profit of
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.At Hyundai M&F, 2024E P/B sits at only 0.39x, well below that for Samsung F&M (0.76x) and DB Insurance (0.59x). Although its shareholder return momentum is weak, Hyundai M&F offers limited valuation b
Samjong KPMG (KPMG Korea) predicts that the semiconductor and smartphone markets will rebound in 2024 thanks to the full-scale commercialization of artificial intelligence (AI) technology. On the other hand, the automobile, shipping, construction, and distribution industries are likely to show slugg
This year has seen a significant improvement in the profits of insurance companies, largely attributed to the substantial increase in insurance gains following the introduction of the new IFRS17 international accounting standard. As banks, which have made large-scale interest income this year, are p
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Through its 3Q23 earnings announcement, Samsung F&M demonstrated stable underwriting profit, excellent new contract creation ability, and only limited impact from the implementation of IFRS17 actuaria
The author is an analyst for NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com -- Ed.Hanwha Corp’s in-house businesses have been resettled as construction, global, and momentum. The expansions of its green energy/materials and high-value added new ventures are to usher in earnin
Hyundai Securities said in a company analysis report on Samsung Life Insurance on Sept. 22 that Korea’s biggest life insurer is expected to continue to increase its dividends in the mid to long term as it needs to serve as a major source of funds for deferred payment of the large inheritance tax by
In the first half of this year, insurance companies achieved a net profit of nearly 10 trillion won (US$7.56 billion), driven by increased sales of guaranteed insurance policies and the positive effects of implementing new accounting standards, specifically IFRS9 and IFRS17.According to the prelimin
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Although Hyundai M&F’s claims and expenses proved greater than estimated amounts in 1H23, we view the result as being a temporary issue stemming from the company’s relatively high portion of children’
As the Korean insurance industry’s performances have improved this year, shareholders have much anticipation for an increase in dividends but insurers are hesitant to specify their dividend policies. This is because the introduction of the new accounting standard, IFRS17, and the new employee benefi
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Samsung Life’s shareholder return is to strengthen in response its high capital ratio and better profit scale and stability following transition to IFRS17. The impact of IFRS17 actuarial assumption gu
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Some adjustments to Hyundai M&F’s capital and capital ratios appear unavoidable given financial authorities' IFRS17 guidelines. But, we view a recent correction in the firm’s share price as being
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.In its first IFRS17 earnings announcement, Mirae Asset Life reported 1Q23 NP of W101bn. Moving ahead, we expect that quarterly NP of around W50bn will be sustainable, even after excluding one-off FVPL
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Recently, domestic insurance companies have announced their first IFRS17-based earnings results. However, uncertainties related to accounting principle changes have escalated further. Market participa
Global non-life insurers have been entering the Korean market one after another. The Korean insurance market ranks seventh or eighth in the world.Star International Insurance Singapore is expected to target the Korean travel insurance and accident insurance markets beginning from 2024 if it receives
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.DB Insurance continues to display the profitability and earnings stability strengths it boasted at the time of IFRS4, announcing 1Q23 NP of W400bn and a K-ICS ratio of 210% . Its shares trade at an at
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Samsung F&M’s 1Q23 earnings displayed a differentiated K-ICS ratio and a significant difference between estimated and actual figures. Of particular attraction, with K-ICS ratio reaching 273%, it is hi
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Hyundai M&F’s non-consolidated NP for 1Q23 (its first IFRS17 earnings announcement) exceeded W300bn. Although we are a little disappointed by forecast fluctuations and CSM-related uncertainties, we no
The author is an analyst for NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com -- Ed.In-house businesses have been reorganized into: construction, global, and momentum. The firm’s growth potential is rising on the expansion of its green energy/materials ventures and high-value a
Korean insurers’ performances have been noticeably improved in the first quarter of 2023 on the strength of the implementation of the new International Financial Reporting Standard 17 (IFRS 17), according to sources in the Korean insurance industry on May 10.The new accounting standard may be more f