Korean Reinsurance Company Upgrade to OW as underwriting recovery builds after a strong 1Q26 combined ratio print (74.6%, -14.5%p oya)

Research evidence excerpt

Korean Reinsurance Company Upgrade to OW as underwriting recovery builds after a strong 1Q26 combined ratio print (74.6%, -14.5%p oya)

J P M O R G A N Asia Pacific Equity Research

16 May 2026

Korean Reinsurance Company ▲Overweight

Previous: Neutral

Upgrade to OW as underwriting recovery builds after a 003690.KS, 003690 KS

Price (15 May 26):W13,110

strong 1Q26 combined ratio print (74.6%, -14.5%p oya) ▲Price Target (Dec-26):W17,000

Prior (Dec-26):W12,000

We upgrade Korean Re to OW (from N) with a new Dec-26 PT of W17,000 Insurance

AC(previously W12,000), based on 7x FY26E P/E. The upgrade reflects a meaningful MW Kim

improvement in underwriting performance (1Q26 combined ratio: 74.6%, - (852) 2800-8517

14.5%p oya), as well as better-than-expected underwriting results anticipated for mw.kim@jpmorgan.com

the remainder of the year. The stock has been a material underperformer YTD (14% J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

vs. KOSPI: 78%), and we believe the current valuation of 5x FY26E P/E or 0.6x

Julia Kim

FY26E P/B appears undemanding in the context of improving fundamentals. We (852) 2800-8540

identify several near-term catalysts: top-line growth recovery post contract julia.c.kim@jpmorgan.com

renewals in January and April; upward earnings revisions for FY26, given that J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

1Q26 net profit accounts for 78% of FY26 Bloomberg consensus estimates; and

potential upside to the current 6% dividend yield. Dan Wang

(86-21) 6106-6349

• Better-than-expected underwriting. The company delivered a strong dan.wang@jpmorgan.comSAC Registration Number: S1730524080001

underwriting performance across both domestic and overseas business lines in J.P.