Hanwha Life Insurance outlook revised on stronger profitability

This reflects improved product mix, strong distribution via its subsidiary.

Hanwha Life Insurance’s outlook has been revised to stable, with expectations that the insurer will maintain solid profitability and capitalisation over the next 12 to 18 months, according to Moody’s Ratings.

The upgrade reflects improved product mix and strong distribution via its general agency subsidiary, Hanwha Life Financial Service, which has driven steady growth in protection product sales. 

Return on capital rose to 3.4% in 2024 from 3.2% in 2023.

Hanwha Life’s K-ICS ratio declined to 163.7% at end-2024 from 183.8% a year earlier due to tighter capital rules and lower interest rates. 

Moody’s still considers capitalisation solid and expects the solvency ratio to stay between 160% and 170%, supported by new business margins and reinsurance. The duration gap is expected to remain minimal.

Challenges include rising financial leverage—projected at 25%–30%—and elevated asset risk, with the high-risk asset ratio climbing to 123.0% due to weaker equity and increased exposure to riskier investments.