[Edaily Reporter Kim Kyung-eun ] HANWHA LIFE INSURANCE(088350)is trading higher in early trading, buoyed by strong second-quarter earnings.

According to MP Doctor on the 13th, as of 9:11 a.m. today, HANWHA LIFE INSURANCE is trading at 5,470 won, up 770 won (16.38%) from the previous trading day.

This is believed to be due to the company’s announcement of a second-quarter earnings surprise the previous day, which boosted investor sentiment.

HANWHA LIFE INSURANCE announced yesterday that its net income for the first half of this year, on a consolidated basis, reached 904.5 billion won, a 96.0% increase compared to the same period last year. On a standalone basis, net income surged 183.9% from 179.7 billion won to 510.2 billion won.

Looking at the second quarter alone, net income reached 262.4 billion won, a 354.6% increase from the same period last year. This figure exceeded market consensus estimates by 68%.

Subsidiaries, including Hanwha General Insurance Co.,Ltd. (215.3 billion won), HANWHA INVESTMENT & SECURITIES (55.7 billion won), and overseas subsidiaries (103.0 billion won), also posted strong results across the board. On a consolidated basis, revenue rose 58.6% from 14.2451 trillion won in the first half of last year to 22.5892 trillion won this year.

The securities industry is raising its expectations for HANWHA LIFE INSURANCE. Meritz Securities maintained its “Buy” rating on HANWHA LIFE INSURANCE today and raised its target price from 5,500 won to 6,200 won.

Jo Ah-hae, an analyst at Meritz Securities, said, “We raised the fair value based on the better-than-expected second-quarter results,” adding, “While uncertainty regarding distributable profits due to the burden of the surrender value reserve still persists, there is room for change driven by solid consolidated profits and regulatory improvements.”

Jeong Min-ki, an analyst at SamsungSecurities, noted, “The company posted an earnings surprise, with net income exceeding the consensus (market average forecast) by 68 percent,” adding, “Although CSM (contract margin) decreased, the earnings outlook for variable annuities has improved due to rising interest rates and a bullish stock market, and the costs that the insurer will have to bear going forward have decreased.”

He continued, “The profitability of the core insurance business is recovering, and improvements in fundamentals are evident in the core business, such as the high growth in CSM from new policies,” and analyzed, “From the perspective of consolidated results—including property and casualty insurance, securities, and overseas subsidiaries—performance improvements are also evident, with a 120% year-over-year increase in profit recorded in the first half.”

However, he added, “For these factors to translate more clearly into corporate value, securing dividend visibility must ultimately be a priority,” and noted, “We believe that stabilizing the core capital ratio and regulatory changes regarding the surrender value reserve—aimed at achieving this—will be prerequisites for a re-rating.”