Part A — Financial Results
Hanwha Life Insurance Co., Ltd. (KRX: 088350) reported consolidated operating profit of KRW 480.8 billion (approximately USD 347 million) for the first quarter ended March 31, 2026, according to its quarterly report filed with the Financial Supervisory Service on May 29, 2026. The result marks a 29.5% year-on-year increase from KRW 371.4 billion in Q1 2025.
Consolidated revenue reached KRW 9.99 trillion, up 54.7% year-on-year, reflecting expanded insurance premiums and investment income across the group's life insurance, non-life insurance, and securities subsidiaries. Pre-tax income came in at KRW 484.6 billion, while consolidated net income attributable to the group reached KRW 324.4 billion, equating to earnings per share of KRW 399.
On a standalone basis — covering only the core life insurance business — Hanwha Life reported net income of KRW 247.8 billion for Q1 2026, with total assets of approximately KRW 124.2 trillion as of March 31, 2026.
New-Contract CSM Hits KRW 610.9 Billion
A key metric under the IFRS 17 accounting framework, the new-contract Contractual Service Margin (CSM) — which represents the present value of expected future profits from newly written policies — reached KRW 610.9 billion in Q1 2026. Management attributed the result to sustained demand for protection-type life insurance products and the group's strategy of prioritising high-margin business over volume growth.
The company said IFRS 17's "insurance service result" combined with stable investment income underpinned profitability. Under the new standard, premium revenue and insurance service costs are recognised differently than under the older Korean GAAP, making the CSM pipeline a closely watched metric by analysts.
K-ICS Solvency Ratio Improves to 162.1%
Hanwha Life's K-ICS (Korean Insurance Capital Standard) solvency ratio, the primary regulatory capital adequacy metric for South Korean insurers, rose to 162.1% at the end of Q1 2026 (with transitional measures applied). This compares with 157.5% at end-2025, an improvement of approximately 4.6 percentage points quarter-on-quarter. Without the transitional adjustment, the ratio stood at 183.6%.
The regulatory minimum is 100%; most major Korean life insurers target above 150%. The gain was driven by growth in available capital, with eligible capital rising to KRW 24.0 trillion against required capital of KRW 14.8 trillion.
All three domestic credit rating agencies — Korea Ratings, NICE Investors Service, and Korea Credit Rating — maintain an AAA rating on Hanwha Life. International rating agencies Moody's and Fitch have assigned ratings of A1 and A+, respectively.
Part B — Subsidiary Highlights
Hanwha General Insurance: Net Income Falls 30.7%
Wholly owned subsidiary Hanwha General Insurance (formerly Hanwha Non-Life Insurance) reported standalone operating profit of KRW 130.6 billion in Q1 2026, but net income declined sharply by 30.7% year-on-year to KRW 98.9 billion.
Insurance revenue totalled KRW 1.576 trillion, while insurance service costs were KRW 1.416 trillion, yielding an insurance service result of KRW 66.8 billion. Investment income contributed KRW 63.8 billion to the operating line. The net income decline was attributed to higher tax charges and a strong base-period comparison.
The subsidiary's K-ICS solvency ratio stood at 220.8% at end-Q1 2026, up from 215.8% at end-2025 — well above the industry average.
Hanwha Investment & Securities: Quarterly Net Income KRW 19.1 Billion
Hanwha Investment & Securities reported consolidated total assets of KRW 19.1 trillion as of March 31, 2026 (+9.75% from end-2025), while quarterly net income declined to KRW 19.1 billion from KRW 37.2 billion in Q1 2025, reflecting lower trading revenues.
Overseas Life Insurance Operations
- Vietnam (Hanwha Life Vietnam): Q1 2026 premium income of KRW 43.5 billion. The subsidiary continues to expand its agency and bancassurance channels.
- Indonesia (PT Hanwha Life Insurance Indonesia): Premium income of KRW 9.7 billion in Q1 2026; total assets KRW 320.2 billion as of March 31, 2026.
Policy Retention Rates
Hanwha Life's 13th-month policy retention rate — a key measure of customer stickiness — stood at 87.3% for life insurance in Q1 2026 (vs. 86.5% in Q1 2025), and 88.7% for general insurance (vs. 86.4%). The 25th-month retention rate for life insurance was 70.6% (vs. 69.0% in Q1 2025).
Source: Hanwha Life Insurance quarterly report (분기보고서) filed with Korea's Financial Supervisory Service via DART (dart.fss.or.kr), rcept_no 20260529001672, filed May 29, 2026.
This article is for informational purposes only and does not constitute investment advice.
