2Q26 earnings preview: signs of gradual improvement

研报英文原文证据摘录

2Q26 earnings preview: signs of gradual improvement

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Insurance - Korea

2Q26 earnings preview: signs of gradual

improvement

Price Objective Change

Expect gradual recovery in earnings 15 July 2026

We forecast the net profit of Korean insurers under our coverage to decline 20% QoQ, Equity

but remain broadly flat YoY in 2Q26. That said, excluding Samsung Life, we expect the Republic Of Korea

P&C insurers under our coverage to deliver 30% QoQ/9% YoY earnings growth. In the Insurance

case of Samsung Life, reported earnings are likely to appear weaker YoY due to higher Jisun Lee >>

base, triggered by one-off gains recognized in 2Q25. At the core earnings level, we Research Analyst

believe the sector remains on a modest upward trajectory, supported by improving Merrill+82 2 3707Lynch0418(Seoul)

profitability in both auto and general insurance, as well as growth in long-term insurance jisun.lee@bofa.com

earnings driven by improving experience variances. We raise our 2026E-28E earnings Simon Woo, CFA >>

Research Analyst

estimates by 1-7% on average and update our POs for insurers (see Exhibit 2). We prefer Merrill Lynch (Seoul)

SFM, given its stable earnings profile and sector-leading capital ratio. simon.woo@bofa.com

Improvement seen across general, auto and long term

We expect continued improvement in both general and auto insurance profitability. Exhibit 1: SFM to begin with earnings

General insurance should benefit from the absence of large loss events, while auto Earnings reporting dates

insurance profitability is likely to improve on the back of lower driving activity following Company Reporting date

higher oil prices, the positive carry-over effect from premium rate hikes implemented at SFM 13-Aug