Hyundai M&F Insurance (001450 KP) Upgrade to Buy: 1Q26 review – coming back from a long, dark tunnel

Research evidence excerpt

Hyundai M&F Insurance (001450 KP) Upgrade to Buy: 1Q26 review – coming back from a long, dark tunnel

16 May 2026

Equities

Hyundai M&F Insurance (001450 KP) Insurance

Upgrade to Buy: 1Q26 review – coming back from a

long, dark tunnel Korea

◆ HMF posted stable 1Q26 results, driven by the reversal of UPGRADE TO BUY

KRW90bn in onerous contract expenses

TARGET PRICE (KRW) PREVIOUS TARGET (KRW)

◆ K-ICS ratio stood up at 207.2%; as the loss ratios stabilise,

45,000 27,900 investment profits are expected to recover in 2Q26

◆ Upgrade to Buy; raise TP to KRW45,000 from KRW27,900 SHARE PRICE (KRW) UPSIDE/DOWNSIDE

reflecting rising earnings and improved capital ratios 32,750 +37.4%

(as of 14 May 2026)

1Q26 results – Insurance profit rose, but investment profit dropped MARKET DATA

Market cap (KRWbn) 2,792 Free float 57%

Hyundai M&F (HMF) posted stable net income of KRW223bn (+9.9% y-o-y), 42% Market cap (USDm) 1,870 BBG 001450 KP

above consensus, mainly due to a one-off reversal of KRW90bn in onerous contract 3m ADTV (USDm) 13 RIC 001450.KS

expenses, followed by changes in regulatory medical indemnity actuary assumptions. FINANCIALS AND RATIOS (KRW)

Insurance profit rose by 71.7% y-o-y, while investment profit declined by 94.3% due Year to 12/2025a 12/2026e 12/2027e 12/2028e

primarily to KRW90bn in bond valuation losses caused by soaring market rates in IFRS EPS 7,156 9,363 11,168 11,920 IFRS EPS (prev) 7,156 8,528 11,456 na

March. Although auto profit remained in a deficit, it appears to be stabilising. Given Change (%) 0.0 9.8 -2.5 na

Consensus EPS 9,254 10,008 11,368 12,738

that loss ratios are approaching a seasonally low period and February's premium PE (x) 4.3 3.6 3.0 2.8

hikes are taking effect, we believe the auto loss ratio will stabilise.