1. What Happened in H1 2025?

Hyundai Marine & Fire Insurance reported revenue of KRW 38,218 billion (-9.0% YoY), operating profit of KRW 3,975 billion (+43.0% YoY), and net profit of KRW 3,006 billion (+50.4% YoY) for H1 2025. While operating and net profits significantly beat market expectations, revenue declined.

2. Why the Fluctuation in Performance?

  • Positive Factors: Improved profitability, stable financial soundness (RBC ratio of 170.0%), high contract retention rate (86.5% for 13th period, 73.3% for 25th period)
  • Negative Factors: Slowing revenue growth, low investment yield (1.66%), proportion of Level 3 financial instruments, suspension of dividends, litigation risks

3. What’s Next?

While positive stock momentum is expected in the short term, long-term growth hinges on revenue recovery, improved investment returns, and normalization of dividend policy. The company also needs to actively respond to external environmental changes such as the introduction of IFRS 17 and K-ICS, and intensifying market competition.

4. What Actions Should Investors Take?

Investors should carefully analyze the reasons for sluggish sales, non-operating income and investment profit, subsidiary performance, and future investment strategies before making investment decisions. If investors believe in Hyundai Marine & Fire Insurance’s long-term growth potential, they may consider investing from a mid-to-long-term perspective.