Hanwha Life to maintain strong capital and stable earnings

Earnings outlook is stable, backed by $6.6b in accumulated CSM.

Hanwha Life Insurance is expected to maintain strong capital and stable earnings, supported by strategic capital issuances and steady release of its large contractual service margin (CSM), according to Fitch Ratings.

Fitch projects capitalisation to remain strong, with the Prism score in the ‘Very Strong’ range and a K-ICS ratio of 163.7% in 2024.

Earnings outlook is stable, backed by $6.6b (₩9.1t) in accumulated CSM and a continued focus on high-margin protection products.

Return on equity increased to 7.2% in 2024, from 4.9% in 2023.

Investment risk is seen as manageable, with most overseas assets currency-hedged and classified as amortised cost.

The risky asset ratio rose to 115%, but pre-emptive loss recognition helped limit exposure. Asset-liability duration gap narrowed to 0.26 years amid preparation for lower interest rates.