The upgrade reflects improvements in the insurer’s product mix and sales growth, largely driven by its general agency arm, Hanwha Life Financial Service. The focus on protection-type insurance products has supported consistent performance.
Hanwha Life’s return on capital rose slightly to 3.4% in 2024, up from 3.2% in 2023, indicating stable earnings.
The company’s Korea Insurance Capital Standard (K-ICS) ratio, a key measure of financial health, fell to 163.7% by the end of 2024 from 183.8% the previous year. This decline was mainly due to stricter capital regulations and lower interest rates. Despite this drop, Moody’s still considers the insurer’s capitalisation solid and expects the solvency ratio to remain between 160% and 170%, supported by strong new business margins and reinsurance strategies.
The report also noted that Hanwha Life’s duration gap—the difference between the maturity of its assets and liabilities—remains minimal, which reduces interest rate risk.
However, the insurer faces some challenges. Moody’s warned of increasing financial leverage, which is projected to rise to between 25% and 30%. Additionally, asset risk remains high. The high-risk asset ratio grew to 123.0%, due to weaker equity markets and greater exposure to riskier investments.
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