Hyundai Marine & Fire Insurance (001450) Q4 2024 earnings summary

Executive summary

• Net income for 2024 reached KRW 1.03 trillion, up 33.4% year-over-year, with ROE improving to 20.6%, driven by strong long-term and commercial insurance performance despite a decline in auto insurance profit.

• Insurance service result nearly doubled year-over-year, led by long-term and commercial segments.

• Net investment income declined 21.9% YoY to KRW 352.1 billion, reflecting lower yields and market conditions.

• Fourth quarter saw a net loss of KRW 15.7 billion, mainly due to lower auto insurance and investment profits.

• Regulatory changes led to a restatement of 2023 financials and significant volatility in claim variance and CSM adjustments.

Financial highlights

• Insurance service result increased 98.1% YoY to KRW 1.043 trillion, with long-term insurance profit up 247.6% YoY in Q4.

• Commercial insurance profit up 107.5% YoY; auto insurance profit down 90.5% YoY.

• Persistency ratio for long-term business stable at 87.2%.

• CSM balance at year-end was KRW 8.25 trillion, down 9.2% YoY due to regulatory changes.

• Fourth quarter new business CSM increased 39% YoY to KRW 496 billion.

Outlook and guidance

• 2025 outlook anticipates continued regulatory tightening, a slight decline in new business sales, but expects CSM multiple and new CSM volume to rise.

• Strategy focuses on improving solvency, contract quality, and profitability of new policies, with emphasis on asset-liability management and capital optimization.

• Investment profit is forecasted to improve in 2025 as interest income rises and FVPL losses stabilize.

• Auto insurance profit is projected to decline further, while commercial insurance profit is expected to remain stable.

• Plans to expand net CSM by improving persistency and increasing new business CSM multiples.