Hanwha Life Insurance: Risk Reward Update

Research evidence excerpt

Hanwha Life Insurance: Risk Reward Update

UpdateM

RiskRisk RewardReward– Hanwha- HanwhaLife InsuranceLife(088350.KS)Insurance (088350.KS)

Needs more clarity on shareholder return and ROE trajectory

PRICE TARGET W4,500 UNDERWEIGHT THESIS

Base case, P/B-ROE valuation. Key assumptions: ▪While potential easing of surrender value

COE: 12.1% base, 10.8% bull, 13.4% bear. reserve requirements offers optionality, HLI

Sustainable ROE: 4.11% base, 5.28% bull, 3.32% bear. still lacks visibility on dividend payout due

to the negative dividend pool. We expect no W5,025

dividend for 2026.

Consensus Price Target Distribution W2,600.00 W7,300.00 the current valuation multiple MS PT ▪Although

remains distressed at ~0.3x 2026e P/B, weSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

await greater confidence in the resumption

of dividend payout.

▪HLI has shown highly volatile earnings

RISK REWARD CHART prints throughout 2024-2025, driven mainly

by investment profits, which need to

W7,000W7,000(+44.48%)W7,000(+44.48%)(+44.48%) stabilize to improve longer-term earnings

KRW visibility.

6000 Consensus Rating Distribution

W4,845W4,845W4,845 33% Overweight

4500 W4,500W4,500(-7.12%)W4,500(-7.12%)(-7.12%) 42% Equal-weight

25% Underweight

MS Rating

W3,100W3,100(-36.02%)W3,100(-36.02%)(-36.02%) Source: Refinitiv, Morgan Stanley Research

Risk Reward Themes

Self-help: Negative

MAY '25 NOV '25 MAY '26 MAY '27 View descriptions of Risk Rewards Themes here

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research

BULL CASE W7,000 BASE CASE W4,500 BEAR CASE W3,100

2026E 0.38x P/BV 2026E 0.25x P/BV 2026E 0.17x P/BV

Sustainable ROE at 5.28% with stronger- Sustainable ROE at 4.11%.