KOSPIInsurance085620

MIRAE ASSET Life Insurance

₩19,490 0.00%2026-10-02 close

Market Cap

₩2.6T

Turnover

₩1B

Volume

50,000 shares

Shares out.

140M

PER

20.5×

PBR

1.1×

EPS

₩971

Dividend Yield

0.00%

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

Report overview

CSM Grows While Net Profit Slips

New business in health and variable products grew at a double-digit pace, but a change in actuarial assumptions compressed insurance profit and dented first-half 2026 earnings, while a large share cancellation put capital policy and solvency management on trial at the same time.

1
In 2025 insurance revenue reached KRW 1,080.4bn and operating profit KRW 194.5bn, both up from KRW 964.0bn and KRW 122.1bn a year earlier, yet owner-attributable net profit of KRW 130.8bn edged down from KRW 136.1bn.
2
The quarterly path is volatile: operating profit and net profit of KRW 68.4bn and KRW 53.4bn in 1Q26 dropped to KRW 23.6bn and KRW 18.0bn in 2Q26.
3
The company said the actuarial assumption change cut first-half earnings by roughly KRW 70bn, while annualized premium equivalent and new-business contractual service margin rose 32.4% and 25.4% respectively (August 14, 2026).
4
Total equity shrank from KRW 4,086.9bn in 2022 to KRW 2,448.1bn in 2025 and the debt ratio rose from 757.4% to 1,244.8%; the solvency ratio was reported at 155.3% at end-June versus 176.7% at the start of the year.
5
Two rounds of cancellation in March and April 2026 retired 62.96m treasury shares, cutting issued shares by about 31.8%, and the company unveiled a strategy combining core insurance with principal investment, approving an investment in AI chip designer Rebellions.

Business structure

Mirae Asset Life Insurance is a wealth-management-oriented life insurer built around variable insurance and retirement pensions, and it is now pursuing a two-track strategy that adds health-centered protection products.

In its 2026 strategy the company said it would strengthen combined insurance-investment offerings based on its variable insurance MVP fund series and expand fee-based business centered on defined-contribution and individual retirement pension accounts.

Within protection products the health and injury share has risen quickly, reported at 92.9% of protection new-business contractual service margin in the first quarter of 2026. On the asset side, bonds are reported to account for 68% of the investment portfolio, so rate moves feed directly into earnings and capital.

From 2026 the insurer separated an asset-liability management book, which backs insurance liabilities, from a principal investment book for growth-company stakes, and the Rebellions investment was executed as the first case under this framework.

In variable insurance it competes for the top spot with MetLife Korea, with 2025 cumulative new-business variable premiums reported at KRW 3,797.7bn, up 37% year on year.

Distribution strategy centers on expanding general agency channels while strengthening products for people with pre-existing conditions and older customers.

Its asset base is smaller than that of majors such as Samsung Life, Hanwha Life and Shinhan Life, leaving it as a mid-sized player with a distinct presence in variable and annuity segments.

Following the 2026 share cancellations and continued affiliate purchases, the combined largest-shareholder stake was reported to have risen to 81.43%.

Earnings trend

Quarterly revenue · Operating profit

₩261.7B₩65B25Q2₩275B₩61.8B25Q3₩284.5B₩28.3B25Q4₩288.1B₩68.4B26Q1₩306.3B₩23.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩903.9B₩162.4B2022₩901.6B₩169.1B2023₩964B₩122.1B2024₩1.1T₩194.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩261.7B	₩65B	24.9%
2025Q3	₩275B	₩61.8B	22.5%
2025Q4	₩284.5B	₩28.3B	10.0%
2026Q1	₩288.1B	₩68.4B	23.7%
2026Q2	₩306.3B	₩23.6B	7.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩903.9B	₩162.4B	₩124.8B	—	3.1%	757.4%
2023	₩901.6B	₩169.1B	₩117.2B	—	4.0%	1036.9%
2024	₩964B	₩122.1B	₩136.1B	—	5.3%	1167.5%
2025	₩1.1T	₩194.5B	₩130.8B	—	5.3%	1244.8%

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

Earnings analysis

On an annual basis, insurance revenue moved from KRW 903.9bn in 2022 and KRW 901.6bn in 2023 to KRW 964.0bn in 2024 and KRW 1,080.4bn in 2025, showing top-line expansion over the last two years.

Operating profit fell from KRW 169.1bn in 2023 to KRW 122.1bn in 2024 before recovering to KRW 194.5bn in 2025, while owner-attributable net profit oscillated between roughly KRW 120bn and KRW 140bn at KRW 117.2bn, KRW 136.1bn and KRW 130.8bn across 2023 to 2025.

The repeated divergence between operating and net profit reflects the fact that insurance results, investment results and actuarial assumption changes land in different periods. Quarterly results are far less smooth.

Insurance revenue rose every quarter from KRW 261.7bn in 2Q25 to KRW 306.3bn in 2Q26, yet operating profit swung from KRW 65.0bn to KRW 61.8bn, KRW 28.3bn, KRW 68.4bn and KRW 23.6bn, and net profit from KRW 50.7bn to KRW 49.8bn, KRW 5.5bn, KRW 53.4bn and KRW 18.0bn.

First-half 2026 net profit totaled KRW 71.4bn, down 5.4% from KRW 75.5bn a year earlier; the company said the actuarial assumption change reduced earnings by about KRW 70bn and that first-half insurance profit fell to KRW 3.6bn from KRW 83.6bn.

Conversely, in the first quarter the investment line drove profit growth on the base effect from prior-year overseas property impairments and a recovery in offshore assets, according to press reports.

On the balance sheet, total equity contracted from KRW 4,086.9bn in 2022 to KRW 2,448.1bn in 2025 while liabilities stayed near KRW 30tn, lifting the debt ratio from 757.4% to 1,244.8%.

Operating cash flow turned positive at KRW 284.5bn in 2025 after outflows of KRW 671.6bn in 2022, KRW 990.7bn in 2023 and KRW 253.2bn in 2024. Summed owner-attributable net profit for the four quarters from 3Q25 to 2Q26 was KRW 126.7bn, below the roughly KRW 130bn annual level of 2024 and 2025.

Industry analysis

The life insurance sector faces slowing growth alongside tighter capital rules.

The Korea Insurance Research Institute projected 2026 life premium growth of 1.0%, arguing that protection growth continues while weaker savings and variable sales cap top-line expansion, and it forecast the sector's contractual service margin easing from KRW 64.7tn in 2025 to KRW 64.3tn in 2026.

Falling rates pressure solvency through mark-to-market liabilities: institute data showed the life sector's pre-transitional solvency ratio at 181% in the first half of 2026, down 11 percentage points year on year.

The Financial Services Commission said a tier-one-only solvency ratio regime, counting solely high-loss-absorbency items, takes effect on January 1, 2027, with a nine-year transition period for prompt corrective action.

Mirae Asset Life's tier-one-based measure was reported at 105.8% for the first quarter of 2026, not low in absolute terms versus the industry but on a declining path.

On shareholder returns, insurers announced successive cancellation plans after the third round of commercial act amendments mandating treasury share retirement passed, and Mirae Asset Life moved early within that trend.

That said, NH Investment & Securities said in a February 2026 report that weak experience variance and slowing new business would likely persist for some time. Ongoing discussions on easing the surrender value reserve accumulation ratio remain a swing factor for sector-wide dividend capacity.

Outlook

The strategy the company has laid out for 2026 runs along three lines: expanding health-centered protection sales, strengthening fee businesses built on variable insurance and retirement pensions, and scaling up principal investment.

Management said at the annual general meeting that it had adopted a model combining core insurance with principal investment as its central strategy, approving an investment in AI chip designer Rebellions as the first case.

A company official said reviews of promising technology companies in the United States and elsewhere were under way, and reports noted market talk of a Rebellions listing around the first half of 2027.

In the core business, the stated plan is profitability-led growth through stronger products for customers with pre-existing conditions and older ages, plus broader general agency distribution. The burdens to monitor are the residual impact of the actuarial assumption change and solvency management.

The solvency ratio was reported at 155.3% at end-June, down 21.4 percentage points from the start of the year, and industry watchers were cited as expecting possible additional subordinated debt issuance or other capital raising in the second half.

Cash dividends have been constrained by the surrender value reserve rules, and the company said dividends and share cancellations are being reviewed in line with relevant regulations and internal procedures.

Ultimately, how far growth in new-business indicators offsets accounting and capital headwinds will determine the earnings trajectory.

Valuation

PER

20.5×

PBR

1.1×

ROE

5.2%

EPS

₩971

BPS

₩18,578

Dividend per share

₩0

Two forces are moving this stock's valuation at once. One is earnings quality: the sum of the last four quarters sits below the annual levels of 2024 and 2025, weakening the denominator of earnings-based multiples.

The other is the share count: the cancellation of 62.96m treasury shares in 2026 cut issued shares by about 31.8%, changing the arithmetic of per-share metrics outright.

Korean life insurers have long traded well below book value, whereas Mirae Asset Life currently trades in a zone where the discount to net assets has disappeared.

Contradicting inputs behind that multiple include equity that has shrunk since 2022 and dividends constrained by surrender value reserve rules, set against newly priced-in share cancellations and the principal investment strategy.

Exact multiples and per-share figures are shown live on the screen cards; what matters in the text is watching how the residual actuarial assumption impact and the solvency trend flow through both earnings and capital.

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

Bull factors

Double-digit growth in new business

The company said first-half 2026 annualized premium equivalent rose 32.4% year on year to KRW 392.3bn and new-business contractual service margin gained 25.4% to KRW 307.6bn. Within that, protection APE increased 50.8% to KRW 213.0bn.

Contractual service margin in force was reported at KRW 2,331.1bn at end-June, up 13.2% from the end of last year. Because this margin represents a stock of profit to be recognized later, growth in new-business metrics underpins future insurance earnings.

Improving portfolio quality

Reports showed health and injury products at 92.9% of protection new-business contractual service margin in the first quarter of 2026, with margin multiples on monthly premiums around 18.2 times for health and injury and 16.3 times for protection overall.

In the same quarter total APE rose 5.8% to KRW 178.2bn while protection alone jumped 34.6% to KRW 101.1bn, a clear mix shift. A product mix that moves away from savings-led growth is generally read as favorable for profit recognition under the current accounting regime. Whether that trend holds alongside loss ratio control is a separate item to verify.

Visible capital policy and a new investment strategy

The company cancelled 62.96m treasury shares across March and April 2026, describing this as about 93% of its treasury holdings and equivalent to roughly a 31.8% reduction in issued shares.

Amid commercial act amendments mandating treasury share retirement, this was viewed as relatively early execution within the sector.

It also presented a strategy combining core insurance with principal investment and approved the Rebellions deal, creating a new channel through which investment outcomes could feed earnings.

On operating metrics, room to improve fee-based businesses and protection margins is the core axis of the strategy the company has outlined.

Bear factors

Actuarial assumption change squeezed insurance profit

The company said the actuarial assumption change reduced first-half 2026 earnings by about KRW 70bn and that insurance profit collapsed to KRW 3.6bn from KRW 83.6bn a year earlier.

In confirmed figures, 2Q26 operating profit of KRW 23.6bn and net profit of KRW 18.0bn were far below the prior quarter's KRW 68.4bn and KRW 53.4bn.

A similar drop appeared in 4Q25, with operating profit of KRW 28.3bn and net profit of KRW 5.5bn, suggesting a recurring pattern where assumption changes and experience adjustments cluster in particular quarters. With earnings this volatile by quarter, a single quarter is a poor basis for judging trend.

Shrinking equity and a falling solvency ratio

Total equity fell from KRW 4,086.9bn in 2022 to KRW 2,910.7bn in 2023, KRW 2,563.7bn in 2024 and KRW 2,448.1bn in 2025, while the debt ratio climbed to 1,244.8%. The solvency ratio was reported at 155.3% at end-June, down 21.4 percentage points from 176.7% at the start of the year.

Commentary also noted that share cancellation, separate from its shareholder-return merits, reduces accounting-basis available capital and thus weighs on the solvency ratio. With tier-one-based rules taking effect in 2027, capital management is becoming harder.

Slowing industry and dividend constraints

The Korea Insurance Research Institute projected 2026 life premium growth of 1.0% and a slight decline in life insurers' contractual service margin, with variable insurance premiums down 5% on wider market volatility.

In the variable segment, MetLife Korea's January 2026 first-year premiums were reported up 103.2% while Mirae Asset Life's fell 29.9%, pointing to intensifying share competition.

A company official said surrender value reserve rules make it structurally difficult to secure funds for cash dividends, and no per-share cash dividend is confirmed in disclosed data. Until the reserve ratio easing is settled, shareholder returns remain reliant on share cancellation.

Risk factors

Rate and capital risk

Bonds are reported at 68% of the investment portfolio, so the direction of rates feeds straight into earnings and capital.

An analysis of ten life insurers with assets above KRW 20tn reportedly showed Mirae Asset Life's solvency ratio falling 11.4 percentage points on a 50bp rate rise, meaning higher rates are not automatically favorable. In a falling-rate environment, mark-to-market liabilities push capital down from the other direction. Either way, quarterly moves in the solvency ratio and total equity need to be tracked together.

Regulatory risk

The Financial Services Commission said a tier-one-based solvency regime takes effect on January 1, 2027, and that insurers whose tier-one ratio falls below 50% as of end-March 2027 will face minimum compliance targets.

Mirae Asset Life's tier-one-based measure was reported at 105.8% in the first quarter of 2026, though down from the prior year-end. The authorities also said conditions apply to early redemption of capital securities counted as tier one.

Whether the surrender value reserve accumulation ratio is eased remains a variable tied directly to dividend capacity.

Governance and liquidity risk

Following share cancellations and continued affiliate purchases, the combined largest-shareholder stake was reported to have risen to 81.43%. Concentrated ownership invites opposing readings, from a smaller free float to weaker minority shareholder influence, so the actual float and trading conditions warrant checking.

Expanding principal investment raises exposure to unlisted companies, bringing valuation volatility and uncertainty over exit timing. In the Rebellions case, listing timing is only market talk and no confirmed schedule is verifiable.

What to watch next

Mid-November 2026
Third-quarter 2026 results. The key questions are whether the residual actuarial assumption impact has washed out and whether insurance profit normalizes from the first half's KRW 3.6bn level, alongside whether growth rates in APE and new-business contractual service margin hold up.
November 2026 disclosure
End-third-quarter solvency ratio and the tier-one-based measure. Whether the ratio slips further from 155.3% at end-June and whether capital raising such as subordinated debt is actually executed will gauge readiness for the 2027 rules.
Fourth quarter 2026 to early 2027
Final decisions on insurance capital rule changes, including any easing of the surrender value reserve accumulation ratio. A confirmed change would alter how distributable funds are calculated and could shift the mix of shareholder return tools.
January 1, 2027
Start of the tier-one-based solvency regime. The Financial Services Commission said insurers below a 50% tier-one ratio as of end-March 2027 will face minimum compliance targets, so company-level figures disclosed right after implementation will reveal the regulatory burden.
February to March 2027
Confirmation of full-year 2026 results and the capital policy announcement. This is when any dividend resumption, further treasury share purchases or cancellations, and the scale of valuation gains or losses on the principal investment portfolio should be disclosed together.

Overall view

Mirae Asset Life has expanded insurance revenue from KRW 901.6bn in 2023 to KRW 1,080.4bn in 2025 while profit oscillated in a band of roughly KRW 120bn to KRW 140bn.

In 2026 the swing became extreme, with first-quarter net profit of KRW 53.4bn against KRW 18.0bn in the second, which the company attributed to an actuarial assumption change worth about KRW 70bn and first-half insurance profit of just KRW 3.6bn.

Against that, forward profit indicators expanded, with APE up 32.4%, new-business contractual service margin up 25.4% and margin in force at KRW 2,331.1bn. On capital, shrinking equity, a rising debt ratio and a 155.3% solvency ratio at end-June coexist as burdens, with tier-one-based rules due in 2027.

Capital policy became visible through the cancellation of 62.96m treasury shares, yet cash dividends remain constrained by surrender value reserve rules, and the principal investment strategy has only taken its first step with Rebellions, so results will take time to verify.

The setup pits new-business growth against accounting and capital headwinds, and which side prevails should emerge step by step in third-quarter results and solvency disclosures. This report is for information purposes only and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.