[Edaily Reporter Kwon Oh Seok ] Hana Securities announced on the 20th that it is maintaining its “Buy” investment rating and target price of 7,300 won for HANWHA LIFE INSURANCE(088350).

Ko Yeon-soo, an analyst at Hana Securities, stated, “Although uncertainty remains regarding the adjustment of the CSM (Contract Service Margin) due to changes in actuarial assumptions related to simplified collateral in the fourth quarter of 2026, as well as the visibility of dividends, we project that annual consolidated net income attributable to shareholders will reach 867.7 billion won (+35.3% year-over-year) thanks to the robust earnings contributions from consolidated subsidiaries.”
She added, “The current P/B (price-to-book) ratio stands at 0.29x, which largely reflects concerns about the sluggish industry conditions. In particular, as the burden of the underwriting margin gap is expected to ease and insurance underwriting results are projected to normalize once the impact of the updated actuarial assumptions subsides, a ‘buy-the-dip’ strategy looking ahead to next year remains valid.”
The analyst projected that second-quarter standalone net income would reach 193.8 billion won, exceeding the consensus estimate (155.7 billion won) by 24.5%. With both insurance and investment earnings improving year-over-year, and despite adjustments to new coverage and expense ratio assumptions, the CSM adjustment is expected to remain at an average quarterly level, leading to better-than-expected results relative to market concerns.
Analyst Ko stated, “Insurance profit is projected to be 137 billion won (+90.9%), which is better than expected. The difference between projected and actual results is expected to improve by approximately 28 billion won year-over-year, while costs associated with loss-bearing contracts are estimated to increase only slightly quarter-over-quarter,” he explained, adding, “Although the volume of new protection-type policies is expected to decline by 6.2% due to a slowdown in the industry, new-business CSM is projected to continue its robust growth trend, reaching 674.6 billion won (+54.3%).”
The analyst further noted, “Investment gains and losses are estimated at 129.8 billion won (a return to profitability). While investment gains and losses in the general account are expected to decrease quarter-over-quarter due to bond valuation losses resulting from rising interest rates and a decline in valuation gains from alternative investments, the variable account is expected to generate trading gains, leading to a significant year-over-year improvement in performance.”