1. What Happened?: Q2 Earnings Miss

Hanwha Non-life Insurance reported a 4.5% year-over-year increase in revenue to ₩17.134 trillion in Q2 2025. However, operating profit fell by 21.2% to ₩1.166 trillion, and net income dropped by 31.2% to ₩799 billion, revealing a significant decline in profitability despite top-line growth.

2. Why?: Factors Behind the Decline

The decline in profitability is attributed to a combination of factors, including losses in insurance operations and underperformance in investment activities. The continuing trend of declining profitability, which began in the first half of the year, is particularly worrisome. The ongoing losses at Carrot Non-life Insurance are also adding to the pressure.

3. So What?: Impact on Investors

This earnings report is likely to negatively impact the stock price in the short term. However, the long-term impact will depend on Hanwha Non-life Insurance’s fundamentals, including its long-term insurance growth, asset management capabilities, and risk management practices. The profitability turnaround of Carrot Non-life Insurance is another crucial factor.

4. Investor Action Plan

  • Short-term Investors: Be mindful of potential short-term stock price declines.
  • Long-term Investors: Carefully consider the company’s strategies for improving profitability, its response to external environment changes, Q3 and annual earnings forecasts, macroeconomic indicators, and regulatory changes.