Hyundai Marine & Fire: Long-term insurance strength drives beat; raise PO to W43,000; reiterate Buy

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Hyundai Marine & Fire: Long-term insurance strength drives beat; raise PO to W43,000; reiterate Buy

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Hyundai Marine & Fire

Long-term insurance strength drives beat;

raise PO to W43,000; reiterate Buy

Reiterate Rating: BUY | PO: 43,000 KRW | Price: 33,350 KRW

Solid earnings beat led by strong long-term underwriting 15 May 2026

Hyundai Marine & Fire (HMF) posted 1Q26 net profit of W233bn, up 10% YoY, ahead of Equity

both Bloomberg consensus of W172bn and our estimate of W133bn. The earnings beat

was largely driven by stronger long-term underwriting, mainly due to one-off reversal of

Key Changesloss-related expenses from the W90bn onerous contract adjustments. Auto insurance

continued to post losses, although it narrowed QoQ. Investment profit came in line with (W) Previous Current

our estimate, down 94% YoY. Management attributed this to the W90bn valuation losses Price Obj. 38,000.00 43,000.00

from structured bonds and alternative investments, driven by rising interest rates and a 2026E EPS 9,989.82 10,883.06

flattening yield curve. That said, more than half of the losses from structured bonds 2027E EPS 13,087.32 13,468.16

have already recovered, and management expects the losses in alternative investment to 2028E EPS 14,953.64 15,219.27

narrow as market volatility stabilizes. HMF’s K-ICS ratio rose 17ppt QoQ to 207% in 1Q.

We continue to believe potential regulatory easing on insurance capital could support the Jisun Lee >>

Research Analyst

company’s resumption of dividends. We reiterate Buy. Merrill Lynch (Seoul)

+82 2 3707 0418

Improved CSM multiple and ALM position jisun.lee@bofa.com

Simon Woo, CFA >>

HMF has been actively communicating its intention to improve the profitability of its Research Analyst