[Edaily Reporter PARK JONG-HWA ] Hanwha General Insurance Co.,Ltd. posted strong financial results, driven by an improvement in the difference between the projected and actual loss ratio and gains from the amortization of the insurance contract service margin (CSM).

Hanwha General Insurance announced on the 12th that its second-quarter revenue reached 1.9774 trillion won, a 15.4% increase from the same period last year (1.7134 trillion won). Cumulative revenue for the first half of the year totaled 3.9490 trillion won, an 18.9% increase compared to the same period last year (3.3226 trillion won). Net income, which stood at 79.9 billion won in the second quarter of last year, also rose by 45.6% to 116.4 billion won in the second quarter of this year. The K-ICS ratio (solvency ratio) before transitional measures remains stable at 185%.

Hanwha General Insurance explained that the improvement in performance was driven by a reduction in the variance between projected and actual long-term insurance claims and an increase in CSM amortization gains. CSM refers to the future profits expected from long-term insurance contracts that insurers recognize as liabilities; as CSM is gradually amortized, profits increase accordingly. Hanwha General Insurance’s second-quarter CSM from new contracts reached 327.2 billion won, a 24.9% increase from a year ago (261.9 billion won), setting yet another record high for a single quarter following the first quarter.

Sales of long-term protection products are also driving the improvement in performance. In the second quarter, the monthly average value of new long-term protection contracts reached 7.73 billion won, a 3.5% increase compared to the same period last year. In particular, the “Signature Women’s Health Insurance” plan is cited as a top-performing product.

A Hanwha General Insurance official stated, “Sales of long-term protection products are increasing across all sales channels,” adding, “In the second half of the year, we will maintain our CSM-centered sales strategy and actively expand our product pipeline featuring differentiated competitive advantages to sustain our growth.”