PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Hanwha General Insurance saw both insurance and investment profit improve in the first half of 2026, driving a clear rebound in net income attributable to owners, but the timing of dividend resumption remains uncertain due to the burden of surrender value reserves.
Net income attributable to owners reached KRW 104.7bn in Q1 2026 and KRW 119.1bn in Q2 2026, expanding for consecutive quarters and confirming a clear earnings recovery.
New business CSM hit a record quarterly high of KRW 327.2bn in the second quarter of 2026.
Even after absorbing subsidiary Carrot General Insurance, the auto insurance segment continues to carry a loss ratio burden.
Because the net increase in surrender value reserves has exceeded quarterly net income, dividend resumption may be pushed back until after regulatory changes.
The exclusive agent network has expanded to the fourth-largest scale in the industry, strengthening the sales base.
Hanwha General Insurance is a composite non-life insurer organized around long-term insurance (health and accident protection products), auto insurance, general insurance, and asset management.
Under CEO Na Chae-beom, who took office in 2023, the company has driven long-term insurance growth by emphasizing specialized products such as women's health insurance.
The auto insurance business expanded in scale after the company absorbed its subsidiary Carrot General Insurance in September 2025; before the merger, Hanwha General Insurance's direct auto premiums stood at KRW 816.4bn at the end of 2025, up KRW 145bn year over year, and combined with Carrot's volume the total reached roughly KRW 1 trillion, exceeding Meritz Fire & Marine Insurance's premium base.
On the distribution side, the exclusive agent force grew 16.9% year over year to 13,982 people at the end of 2025, ranking fourth in the industry behind Samsung Fire & Marine, Meritz Fire & Marine, and DB Insurance, while the 13th-month agent retention rate stayed at the industry's highest level of 69.57%.
The competitive landscape has traditionally been dominated by a 'Big 5' of Samsung Fire & Marine, Meritz Fire & Marine, DB Insurance, Hyundai Marine & Fire, and KB Insurance, and Hanwha General Insurance is positioned to challenge this structure through sales force expansion and the Carrot integration.
Under the new accounting regime (IFRS17), contractual service margin (CSM) has emerged as the key indicator of future profitability, and Hanwha General Insurance's in-force CSM reached KRW 4.0694tn at the end of 2025, up 7.0% year over year.
The company's standing within the Hanwha financial group has also grown, with its 2025 standalone net income surpassing that of flagship Hanwha Life and its contribution to group earnings rising to 46%.
Still, auto insurance remains a low-margin business heavily influenced by mandatory-insurance rate policy, meaning that scale expansion through the Carrot integration does not automatically translate into improved profitability.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | ₩106B | — |
| 2025Q3 | — | ₩63.9B | — |
| 2025Q4 | — | ₩86.9B | — |
| 2026Q1 | — | ₩135.9B | — |
| 2026Q2 | — | ₩140.8B | — |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩0 | ₩204.8B | ₩222.2B | — | 7.1% | 431.5% |
| 2023 | ₩0 | ₩306.5B | ₩247.2B | — | 7.6% | 441.4% |
| 2024 | — | ₩435.7B | ₩343B | — | 12.0% | 571.6% |
| 2025 | — | ₩429.6B | ₩299B | — | 11.2% | 656.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual net income attributable to owners rose for three consecutive years from KRW 222.19bn in 2022 to KRW 247.24bn in 2023 and KRW 343.01bn in 2024, before declining to KRW 299.02bn in 2025.
Operating profit followed a similar path, expanding from KRW 204.85bn in 2022 to KRW 306.52bn in 2023 and KRW 435.74bn in 2024, before easing slightly to KRW 429.59bn in 2025.
On a quarterly basis, net income attributable to owners fell to a low of KRW 35.98bn in the third quarter of 2025 before recovering for four consecutive quarters to KRW 59.43bn in Q4 2025, KRW 104.71bn in Q1 2026, and KRW 119.06bn in Q2 2026.
Operating profit also expanded markedly, from KRW 63.86bn in Q3 2025 to KRW 140.77bn in Q2 2026. This rebound aligns with iM Securities' analysis showing second-quarter insurance profit of KRW 102bn, up 8.5% year over year, alongside investment profit of KRW 34.3bn, up 41.7%.
Owners' equity rose from KRW 3.1375tn in 2022 to KRW 3.2323tn in 2023, then declined to KRW 2.8665tn in 2024 and KRW 2.6696tn in 2025, a pattern that can be read as reflecting mark-to-market liabilities and shifting interest rate conditions.
Operating cash flow fell sharply from KRW 1.5835tn in 2023 and KRW 1.4924tn in 2024 to KRW 668.3bn in 2025, illustrating volatility in cash generation.
The debt ratio climbed steadily from 431.5% in 2022 to 656.9% in 2025, a figure driven by the structural growth in insurance liabilities that is not directly comparable to debt ratios in manufacturing industries.
New business CSM in the second quarter of 2026 reached KRW 327.2bn, up 24.9% year over year and surpassing the prior record of KRW 302.4bn set in the first quarter, further building the company's future earnings base.
Korea's non-life insurance industry is shifting its evaluation framework from scale to profitability and quality amid the dual transition to IFRS17 accounting and the K-ICS solvency regime.
Contractual service margin (CSM), which captures the future profit a new contract is expected to generate, growing each quarter is interpreted as signaling greater room for future profitability improvement.
Hanwha Investment & Securities noted that combined second-quarter 2026 net income for Samsung Fire & Marine, DB Insurance, Hyundai Marine & Fire, and Hanwha General Insurance reached KRW 1.5192tn, up 6.6% year over year and 9.6% above market estimates, interpreting this as the industry passing through the worst phase of an earnings slump that began in the second quarter of 2024.
However, an earlier analysis for the first quarter of 2026 found that three of the four insurers besides Samsung Fire & Marine faced distinct sources of weakness, including deteriorating auto insurance results and valuation losses on interest-bearing assets, with rising direct and indirect operating expenses cited as a specific drag for Hanwha General Insurance.
Because auto insurance is a mandatory line of coverage, the segment faces persistent government pressure to lower rates, and loss ratio management remains a challenge across the industry, including among the four largest insurers.
Within this competitive landscape, Hanwha General Insurance is positioned to challenge the traditional 'Big 5' structure of Samsung Fire & Marine, Meritz Fire & Marine, DB Insurance, Hyundai Marine & Fire, and KB Insurance through the Carrot integration and sales force expansion, showing tangible progress in agent scale and CSM growth.
In an August 2026 report, iM Securities raised its 2026 annual net income forecast for Hanwha General Insurance by 6.7%, from KRW 333bn to KRW 355bn. Kiwoom Securities projected third- and fourth-quarter 2026 net income at KRW 109bn and KRW 84.3bn respectively, representing year-over-year increases of 52% and 26%.
The company has set a target of raising combined auto insurance revenue with Carrot General Insurance to KRW 2 trillion within five years, while expanding market share to 8% by 2028 and 10% by 2030.
On the capital adequacy front, the solvency ratio stood at 185% before transitional measures and 228% after transitional measures as of end-June 2026, maintaining a stable level.
However, dividend resumption still hinges on the burden of surrender value reserves; iM Securities noted that the net increase in these reserves has exceeded quarterly net income, making dividend resumption difficult without regulatory reform, and conservatively projected that timing to be sometime after 2027.
CEO Na Chae-beom's term runs through March 2027, and observers note that the earnings improvement trend through year-end could influence the decision on a possible re-appointment.
Taken together, the outlook points to continued profit improvement centered on insurance results, occurring alongside ongoing auto insurance integration burdens and a delayed dividend resumption timeline.
Hanwha General Insurance's share price relative to net asset value has tended to trade at a discount compared to the historical average for the non-life insurance sector.
The company has sustained profitability without net losses in recent years, and the first half of 2026 saw consecutive quarterly earnings improvements that made the profit recovery trend clear, even as total shareholders' equity itself trended lower over the past three years.
On the dividend front, the resumption of payouts has been delayed due to the burden of surrender value reserves, placing the company in a different position from other large peers in the sector that continue to pay dividends.
Among sell-side views, Hanwha Investment & Securities issued a Buy rating with a target price of KRW 9,500 in an April 2026 report, while iM Securities maintained a Buy rating with a target price of KRW 8,000 in an August 2026 report.
These target prices reflect each brokerage's own analysis and represent one reference point among market perspectives, independent of actual share price movement.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Both insurance profit and investment profit posted double-digit year-over-year growth in the first half of 2026, driving consecutive quarterly expansion in net income attributable to owners. New business CSM also set a fresh quarterly record of KRW 327.2bn in the second quarter, broadening the future profit base. This trend aligns with the broader pattern of the four major non-life insurers beating consensus estimates.
The exclusive agent force has grown to the fourth-largest scale in the industry and retention rates remain among the highest, stabilizing the sales base. Specialized products such as women's health insurance are cited as a key driver of earnings improvement.
The digital platform gained through the Carrot integration is also a long-term factor for channel diversification.
The post-transitional solvency ratio stood at 228% as of end-June 2026, well above the regulatory threshold. The pre-transitional ratio of 185% also indicates stable capital adequacy. This could provide a foundational condition for dividend resumption if regulatory reforms are implemented.
Before the merger, Carrot General Insurance's auto insurance loss ratio was 97.4%, higher than Hanwha General Insurance's own 83.8%, which could weigh on profitability after integration.
In the first half of 2025, Hanwha General Insurance's auto insurance result was a loss of KRW 9.7bn, a wider loss than the KRW 1.0bn loss in the same period a year earlier. Regardless of revenue growth targets, the structurally low-margin nature of the auto insurance line persists.
The net increase in surrender value reserves continues to exceed quarterly net income, leading to analysis that dividend resumption is difficult without regulatory reform. The timing of resumption is conservatively projected to be sometime after 2027. This means earnings improvement may not immediately translate into expanded shareholder returns.
Owners' equity has declined for two consecutive years since 2023, falling to KRW 2.6696tn at the end of 2025. In a preview of first-quarter 2026 results, rising direct and indirect operating expenses were cited as a factor behind earnings weakness.
Operating cash flow also fell sharply in 2025 compared to the prior year, reflecting volatility in cash generation.
Under the IFRS17/K-ICS regime, changes in market interest rates directly affect insurance liability valuation and capital ratios. In a declining rate environment, the value of insurance liabilities can rise, pressuring capital ratios.
Non-life insurers are generally considered less interest-rate sensitive than life insurers, but they are not entirely insulated.
Because auto insurance is mandatory, it remains continuously subject to government rate policy, and persistent pressure to lower rates could constrain profitability improvement.
Changes in indemnity insurance reform or supervisory direction on surrender value reserve regulations are also factors that could affect earnings and dividend policy.
If synergies from the Carrot General Insurance merger fail to materialize as planned, cost burdens could persist. With the industry's 'Big 5' structure still firmly entrenched, there is also a risk that the company, as a challenger, may not achieve its market share expansion targets.
Expected timing for the third-quarter 2026 earnings release, when it will be worth checking whether results align with Kiwoom Securities' forecast of KRW 109bn in net income, up 52% year over year.
Timing for the annual 2026 earnings and dividend policy announcement, when progress on easing the surrender value reserve burden and dividend resumption discussions can be assessed.
The end of CEO Na Chae-beom's current term, when it will be important to check whether he is reappointed and whether management strategy continuity is maintained.
A point to check over the longer term whether the integrated Carrot auto insurance business has achieved its targeted 8% market share.
Hanwha General Insurance is in a clear recovery phase, with both insurance and investment profit improving in the first half of 2026 and net income attributable to owners expanding for consecutive quarters.
The future profit base is also widening, as new business CSM has set consecutive quarterly records, supported by an expanding exclusive agent network and a specialized women's insurance strategy.
However, the loss ratio burden in the auto insurance segment following the Carrot General Insurance integration has not yet been resolved, and the burden of surrender value reserves suggests dividend resumption could be pushed back until after 2027.
Owners' equity has declined for two consecutive years and operating cash flow has shown volatility, so the qualitative aspects of capital and cash flow deserve attention alongside the earnings improvement.
While some sell-side analysts have raised target prices or maintained Buy ratings reflecting the earnings recovery, these reflect each brokerage's own judgment, and investors will need to reconfirm the trajectory through concrete upcoming events such as third-quarter results, dividend policy direction, and the CEO reappointment decision.
Report written 2026-09-05 · Data as of 2026-09-04
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