Hyundai Marine & Fire Insurance First Take: Fundamental improvements offset by non-distributable earnings beat in 1Q26

Research evidence excerpt

Hyundai Marine & Fire Insurance First Take: Fundamental improvements offset by non-distributable earnings beat in 1Q26

iently to 74.9% as of March 2026. When accounting for the 100% recognition

(Registration)of the surrender value reserve, based on our estimates, this would exceed the

regulatory recommended level of 80%, reaching 85.9%. Over the course of the - Hyundai M&F (22 May, 4pm HKT)

year, Hyundai M&F actively purchased ultra-long bonds to extend asset duration, (Registration)

whilst simultaneously reducing liability duration through portfolio optimisation, - Korean Re (26 May, 3pm HKT)

namely by increasing the product offering of fixed-term insurance policies. As a (Registration)

result, the company's duration gap narrowed to almost zero year as of Mar-26,

compared with a -2.5 years as of Jun-25. With asset and liability durations now * If you are subject to the MiFID II Research Unbundling

matched, sensitivity of the K-ICS ratio to interest rate declines is minimal, at - regime, you may only be eligible to participate in this event if

0.7%p for a 50bp rate reduction. We view this as a favourable position from which youresearch.have thePleaseappropriatecheck yourleveleligibilityof accessbeforeto J.P.participating/Morgan

to navigate macro volatility. Reserve quality. In 1Q26, Hyundai M&F recorded accessing. If you are unsure as to your eligibility, please

a relatively modest negative CSM adjustment of negative W40B. The CSM reach out to your usual J.P. Morgan contact.

balance nonetheless grew 3% q/q to W9.2T, notwithstanding the slower pace of

new business sales (1Q26 new business CSM: W470B, -18% oya). Earnings.

1Q26 net profit of W223B, up 10% oya, came in well ahead of both JPMe and

consensus expectations, with insurance service results rising 72% oya.