[Edaily Reporter PARK JONG-HWA ] Hyundai MARINE & FIRE INSURANCE CO.,LTD’s cumulative net income for the first three quarters increased by more than 20% compared to last year. However, looking at the third quarter alone, earnings deteriorated due to investment losses.

Hyundai MARINE & FIRE INSURANCE CO.,LTD announced on the 13th that its cumulative net income for the first three quarters of this year reached 780.8 billion won, a 23.1% increase compared to the same period last year (634.1 billion won). However, looking solely at third-quarter results, net income fell 9.6% from 183.1 billion won last year to 165.7 billion won this year.

The investment segment was the primary cause of the decline in third-quarter earnings. While Hyundai MARINE & FIRE INSURANCE CO.,LTD posted a profit of 89.4 billion won from its investment segment in the third quarter of last year, it recorded a loss of 27.8 billion won this year. Looking at cumulative investment gains and losses for the first three quarters, the figure fell 76.1% from 325.8 billion won last year to 78.0 billion won this year. This was due to valuation losses on stocks, bonds, and alternative investments resulting from increased interest rate volatility. The company stated, “We plan to improve returns by focusing on high-quality assets such as corporate loans.”

In its core insurance business, cumulative profit for the first three quarters increased by 63.0%, from 555 billion won to 969 billion won. This was due to a reduction in losses stemming from the difference between projected and actual payouts for long-term insurance, as well as the stabilization of the loss ratio in general insurance. However, the auto insurance segment posted a loss of 23.3 billion won due to the impact of premium reductions and rising claims costs.

The CSM (Contract Service Margin—unrealized profits calculated by discounting future insurance profits to their present value), an indicator of future growth, stood at 10.1692 trillion won as of the end of the third quarter, a 14.2% increase compared to the end of last year. As the CSM balance grew, the K-ICS ratio (solvency ratio), which indicates the insurer’s financial soundness, also rose from 190.1% at the end of last year to 210.3% at the end of the third quarter of this year.