Hanwha Life Insurance: Q4 2024 Earnings Call Highlights Strong Financial Performance and Future Growth Potential

Hanwha Life Insurance Co Ltd (XKRX:088350) recently held its Q4 2024 earnings call, highlighting strong financial performance and future growth potential. The company's net profit on a separate basis rose 17% year-on-year to 720.6 billion won, continuing solid growth for the second consecutive year since the introduction of the new system. The consolidated net profit reached 866 billion won due to the good performance of major consolidated subsidiaries and stable separate profits.

Hanwha Life Insurance's performance improved last year as a result of strengthening its sales channel competitiveness, launching products that lead market trends, and strengthening its competitiveness at its headquarters. The number of FPs (insurance planners) belonging to Hanwha Life Insurance's subsidiary GA (insurance agency) increased by 3,833 from the previous year to 31,005, securing more than 30,000 architect organizations to secure the industry's highest level of channel competitiveness. The company also continued to release coverage products such as "The Signature Cancer Insurance" and "H10 Health Insurance," which contributed to sales growth.

Based on these initiatives, the annual new contract CSM (contract service margin) recorded 2.1231 trillion won, exceeding the 2 trillion won presented as guidance for the second consecutive year. The year-end holding contract CSM is KRW 9.1091 trillion. In the case of new contracts APE (annual payment insurance premiums), it recorded 3.8557 trillion won, up 18.2% from the same period last year, with 81% of them, or 3.1232 trillion won, collected as coverage APE, maintaining a stable insurance portfolio.

Hanwha Life Insurance's focus on digital innovation and AI technology has significantly contributed to its financial performance in Q4 2024. The company's strategic initiatives, such as expanding sales channel competitiveness, launching innovative products, and implementing AI-based automated insurance claim underwriting, have led to stable new contract growth and strong financial results. In the long term, Hanwha Life Insurance's commitment to digital innovation and AI technology will continue to strengthen its competitiveness and drive future growth.

Additionally, Hanwha Life Insurance's expansion into overseas markets and acquisitions, such as the majority stake in Lippo General Insurance in Indonesia and the partial acquisition agreement with Nobu Bank, are expected to provide synergies and access to new customer segments. By integrating these new entities into its global strategy, Hanwha Life Insurance aims to strengthen the competitiveness of its subsidiaries in their local markets and drive future growth by expanding its business overseas to markets like the U.S. and Southeast Asia.

In conclusion, Hanwha Life Insurance's Q4 2024 earnings call highlights strong financial performance and future growth potential, driven by its focus on digital innovation, AI technology, and strategic expansion into overseas markets. The company's commitment to ESG management and maintaining a stable risk-based capital (RBC) ratio has also contributed to its financial stability and future prospects. As Hanwha Life Insurance continues to adapt to the evolving needs of its customers and the global financial landscape, it is well-positioned to maintain its market leadership and drive long-term growth.