Shinhan Life’s cumulative CSM tops KRW 8 trillion through Q3; net profit down 18.5%

[Financial News] Shinhan Life expanded its future earnings base by growing its contractual service margin (CSM) to the KRW 8 trillion range. Net income declined amid volatility in financial markets, but the company maintained a solvency ratio in the 200% range and preserved its capital soundness.
According to Shinhan Life on the 27th, its in-force CSM stood at KRW 8.0423 trillion at the end of the third quarter this year. That was up 5.7% (KRW 433.1 billion) from the same period last year, setting a record high. Cumulative CSM from new business in the third quarter also reached KRW 1.1379 trillion, up KRW 421.8 billion from the end of the first half.
Profitability indicators, however, retreated. Cumulative net income for the first three quarters of this year was KRW 419.4 billion, down 18.5% from the same period last year. Cumulative insurance earnings fell 17.3% to KRW 474.4 billion, while financial earnings declined 25.7% to KRW 132.9 billion. Lower gains and losses from bond valuation and disposals, along with one-off factors, affected results.
Annualized premium equivalent (APE) declined 7.3% to KRW 1.1492 trillion. APE for protection insurance fell 17.8% due to a base effect following adjustments to the product portfolio, while APE for savings and pension insurance rose 99% to KRW 220.9 billion.
Total assets at the end of September stood at KRW 56.7 trillion, down 6.0% from the same period last year. The solvency ratio (K-ICS) was 204.6% (provisional).
Shinhan Life plans to continue its balanced growth strategy, which aims to increase both customer value and the company’s long-term profitability. A Shinhan Life representative said, “We will make customer trust the starting point of our management and enhance corporate value through sustainable profit generation and stable asset management.”
 

[email protected] Hong Yeji Reporter