Q3 2026 earnings results

New-contract CSM reaches 2.09 trillion won, up 40%

K-ICS ratio rises from 168% to 171%

Investment loss of 107.3 billion won recorded

Overseas subsidiaries post cumulative profit of 146.6 billion won

Hanwha Life Insurance headquarters [Hanwha Life Insurance]
Hanwha Life Insurance headquarters [Hanwha Life Insurance]

Hanwha Life Insurance said Friday its cumulative consolidated net profit for the first three quarters of 2026 reached 865.6 billion won ($650 million), up 12.6 percent from the same period last year.

The insurer said insurance profit growth was particularly strong. Cumulative insurance profit through the third quarter reached 385.1 billion won, a 176 percent increase from the same period a year earlier — surpassing the full-year insurance profit of 344.4 billion won recorded last year by 12 percent. Hanwha Life attributed the gains to a product portfolio restructuring and a profitability-focused sales strategy it has pursued since last year.

Cumulative new-contract contractual service margin, or CSM, reached 2.09 trillion won through the third quarter, up more than 40 percent from the same period last year. CSM represents the unrealized future profit an insurer expects to earn as it provides services to customers; a larger CSM signals stronger long-term profitability.

New-contract CSM grew every quarter this year, rising from 610.9 billion won in the first quarter to 689.2 billion won in the second and 785.9 billion won in the third. "This reflects the ongoing product portfolio restructuring we have pursued since last year," a Hanwha Life official said, adding that the results stem from "improving the product mix around profitability, including expanding sales of mid- and long-term whole life and national health insurance products."

The CSM profitability ratio for new protection insurance contracts improved from 7.3 times to 11.7 times compared with the same period last year. Whole life insurance profitability improved consistently, rising from 7.1 times in the first quarter to 10.5 times in the second and 11.7 times in the third.

Through tighter claims management and more refined actuarial assumptions, the company reduced losses from the gap between projected and actual claims payouts and converted previously loss-making contracts into gains. As a result, in-force CSM at the end of the third quarter reached 9.41 trillion won, up 5.4 percent from the end of the first half.

Investment profit came in at a cumulative loss of 107.3 billion won through the third quarter, driven by non-recurring factors including exchange rate movements and equity market volatility.

Hanwha Life said, however, that the hybrid securities in question are issued and redeemed in US dollars, and that any foreign exchange gains or losses arising before redemption represent accounting fluctuations separate from the actual performance of its asset management operations.

The cumulative return on assets under management in the general account rose 0.21 percentage points from the end of last year to 3.41 percent. The K-ICS solvency ratio, a key capital adequacy indicator, climbed 3 percentage points to 171 percent at the end of the third quarter from 168 percent at the end of the first half, supported by a net increase in in-force CSM and improved claims experience.

Overseas subsidiaries posted cumulative profit of 146.6 billion won, with the Vietnam unit contributing 46.7 billion won, Indonesia's Nobu Bank 46.1 billion won and US-based Velocity 38.8 billion won. Domestically, Hanwha Life Financial Services recorded profit of 88.3 billion won, up 10.2 percent.

"Non-recurring factors from financial market volatility — including exchange rates and share prices — were reflected in the results, but our core business competitiveness has been further strengthened on the back of new-contract CSM growth and rising insurance profit," a Hanwha Life official said. "We will continue to enhance enterprise value by building up the fundamental strength of insurance profit through profitability-focused portfolio management and claims experience control, while expanding synergies with domestic and overseas subsidiaries."


kimstar@heraldcorp.com