2Q26 Preview: Modest Quarter, With Greater Focus on 2H

研报英文原文证据摘录

2Q26 Preview: Modest Quarter, With Greater Focus on 2H

Idea

July 13, 2026 02:25 PM GMT

Morgan Stanley & Co. International plc, Seoul Branch+MS. Korea Insurers | Asia Pacific Heewon Choi

Equity Analyst

2Q26 Preview: Modest Quarter, Heewon.Choi@morganstanley.comJoon Seok +82 2 399-4836

Joon.Seok@morganstanley.com +82 2 399-4934

With Greater Focus on 2H

2Q should be a modest quarter with no major surprises, and we

do not expect 2Q26 to serve as a broad re-rating catalyst. In 2H,

investor focus is likely to shift toward indemnity reform and S. Korea Financials

capital allocation, with DBI remaining our preferred pure- Asia Pacific

Industry View Attractive

insurance defensive idea.

What’s Changed

2Q26 preview – relatively quiet quarter: 2Q26 earnings for Korean insurers should Samsung Fire & Marine

(000810.KS) From To

be broadly uneventful, with no significant one-off items across coverage. We expect Price Target W660,000 W740,000

underwriting profit to continue stabilizing, helped by narrowing long-term claims DB Insurance Co Ltd

variance and limited deterioration in non-life auto loss ratios, although a meaningful (005830.KS) From To

Price Target W209,000 W212,000

turnaround is unlikely at this stage. Investment profit may show some market-driven

volatility from higher rates and stronger equity markets, but overall earnings quality

should remain manageable. For CSM, we expect investors to focus less on weak new

business volumes and more on net CSM growth after assumption-related

adjustments, where we expect the negative impact to be less significant than in

4Q25.

2H26 focus – indemnity reform and capital allocation: Beyond the 2Q print, we

think the key debate will shift to whether medical indemnity reforms can start

improving loss-ratio visibility in 2H26.