Korean Reinsurance Company 1Q26 post-result call takeaways: Strong underwriting gains support confidence in FY26 targets

研报英文原文证据摘录

Korean Reinsurance Company 1Q26 post-result call takeaways: Strong underwriting gains support confidence in FY26 targets

MW Kim AC Asia Pacific Equity Research

(852) 2800-8517 27 May 2026 J P M O R G A N

mw.kim@jpmorgan.com

Investment Thesis, Valuation and Risks

Korean Reinsurance Company (Overweight; Price Target: W17,000)

Investment Thesis

Korean Re's capital allocation has gradually shifted from domestic towards overseas

business, with overall overseas underwriting expected to stabilise at above 40% of total

through 2026 and 2027. Within the overseas book, further capital reallocation towards

developed markets from Asia should translate into a more predictable underwriting margin

outlook per unit of capital deployed. As a result, an underwriting margin of above 10% (or

90% combined ratio), is highly visible, lending a degree of predictability to the earnings

growth outlook. Following the contract renewals in January and April 2026, we anticipate

a recovery in top-line growth. The company's robust solvency capital position and resilient

dividend payout, currently at 30%, are additional positives. We highlight that under the core

capital regime, the company's strong capital position will be further accentuated, leaving

meaningful headroom for further dividend upside beyond the current 6% yield. On this

basis, we view Korean Re as a key candidate within Korea's value-up investment theme.

Valuation

Our Dec-26 PT of W17,000 is based on a 7x FY26E P/E, closer to the historical average P/E

of 9x (vs. the minimum P/E of 2x), due to the company’s solid capital position, improved

risk management and reshuffling of the underwriting portfolio. We do not apply the

historical average valuation multiple at this stage, reflecting both the cyclical downturn in