1. HMFI’s 2025 First Half: What Happened?

HMFI recorded KRW 9.1 trillion in revenue and KRW 504.5 billion in net profit on a consolidated basis. Growth in the long-term insurance market and enhanced product/channel competitiveness were key factors. A high Risk-Based Capital (RBC) ratio of 170.0% demonstrates robust financial soundness.

2. Driving Forces Behind the Strong Performance

HMFI’s robust performance stems from its focus on securing future growth engines, including accelerated digital transformation (InsurTech investments, automation, customer data utilization) and overseas business expansion (VBI in Vietnam, Hyundai Property & Casualty Insurance in China). Excellent capital adequacy and stable operating assets enable consistent profit generation.

3. Investment Risks to Consider

Despite the positive aspects, investors should consider potential risks. Intensified competition in the maturing domestic non-life insurance market, potential fluctuations in investment returns due to interest rate and exchange rate volatility, and a lower ROE (6.43%) compared to the same period last year require careful attention. While rising interest rates may enhance investment returns, they also introduce the risk of increased volatility in valuation gains and losses on bond holdings.

4. Action Plan for Investors

  • Long-Term Perspective: HMFI is pursuing mid- to long-term growth through long-term insurance expansion and digital transformation. Investors should consider investments with a long-term perspective rather than being swayed by short-term market fluctuations.
  • Risk Management Capabilities: Continuous monitoring of HMFI’s risk management capabilities and cost efficiency efforts is crucial in the face of interest rate/exchange rate volatility and intensified competition.
  • Shareholder Return Policy: Increased visibility of shareholder return policies through future capital reinforcement and regulatory improvements can enhance investment attractiveness. Investors should pay close attention to relevant policy changes.