Hyundai Marine suffers insurance profit squeeze

AM Best says medical indemnity exposure left the insurer sensitive to claims trends.

Hyundai Marine & Fire Insurance Co., Ltd.’s long-term insurance profitability weakened in 2025 due to its relatively high exposure to medical indemnity policies, which shows the insurer’s sensitivity to claims trends within this segment.

The insurer recorded increased loss ratios last year.

Whilst the South Korean insurer maintains strong capitalisation and market position, AM Best pointed to several factors that could weigh on its performance.

The company’s motor insurance business also remained under pressure, posting underwriting losses in 2025. 

AM Best attributed this to the cumulative impact of premium rate cuts, intensified market competition, and rising claims costs driven by inflation across the industry.

Although HMF’s risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), the insurer continues to face balance sheet volatility linked to interest rate movements. 

AM Best said this remains an offsetting factor despite improvements in the company’s local solvency position in 2025, supported by higher interest rates and efforts to reduce the asset-liability duration gap.