Lotte Non-Life Insurance is a general (non-life) insurer that sells auto, long-term protection, and general insurance, collects premiums, and invests them. It earns money on two axes: the insurance-operating result from selling policies, and the investment result from putting collected premiums to work in bonds and the like; over recent years it has reshaped its portfolio toward higher-margin long-term protection insurance. A Q1 report was filed in May, and the axes that actually move the shares are the recovery of the core insurance business (rising CSM and a turnaround to an insurance-operating profit) and the ongoing stake sale by the largest shareholder, a private-equity fund. On the positive side, the shift toward long-term protection insurance is building CSM, the Q1 insurance-operating result turned to profit, and the K-ICS ratio cleared the regulatory guidance level. On the cautionary side, the investment result is sensitive to interest rates and can produce a loss, as in Q1 when bond valuation losses pushed the bottom line into the red, and a P/E of 12x reflects sale expectations as well.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue fell 12.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 22.4% higher than a year earlier.
- ROE is 8.4% (total-net basis). It is below the sector average.
- Operating margin is 6.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Victoria 77.04% (individual)
Controlling bloc incl. related parties 77.04%
With the controlling bloc holding 77%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Lotte Non-Life Insurance is a general (non-life) insurer that underwrites the risk of accidents to people and property, collects premiums, and invests them.
- It sells auto insurance, long-term protection insurance (long-lived coverage for cancer, disease, injury, and the like), and general insurance (fire, liability, and so on).
- Over recent years it has reshaped its portfolio toward higher-margin long-term protection insurance.
- It earns money in two ways: one is the insurance-operating result from selling policies, and the other is the investment result from putting collected premiums (assets) to work in bonds and the like.
- When these two axes diverge, results become complicated to interpret.
- The latest close is ₩2,060 and market capitalization is ₩639.3 billion.
- The price sits above the 20-day line (₩1,940) and above the 60-day line (₩2,040).
- Trading above both the short- and mid-term moving averages, the trend is on the healthy side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.1, a neutral level.
- The one-month change is +11.1%, the three-month change is +3.0%, and the position versus the 52-week high is -24.4%.
- Relative strength against the KOSPI is 37 (on a 1-99 scale, computed from returns versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 63% of all stocks by strength.
- Over the past three months it lagged the index by 21.6%.
- Chart reading is best done alongside volume and the dates on which disclosures occurred.
- The P/E (how many times a year's earnings the shares trade at) is 12.45x and the P/B (how many times net asset value) is 1.04x.
- Because a non-life insurer's business structure carries large liabilities and interest costs, a general manufacturing yardstick like the debt ratio does not apply cleanly here.
- Instead, it should be viewed through the capital-soundness measure K-ICS (a ratio indicating the ability to pay claims).
- At the end of 2025 this was 159.3%, above the regulator's guidance level (130%).
- On profitability, ROE (how much it earns in a year on its equity) is 8.4%, somewhat below the average for peer non-life insurers.
- That said, it should be read with the low base of 2024 in mind, when net profit was held down by one-off factors.
- In 2025 revenue fell 12.3% from a year earlier, so the top line contracted.
- Earnings, by contrast, recovered strongly.
- 2025 net profit was ₩51.3 billion, up 112% from the prior year (₩27.2 billion, held down by one-off factors).
- CSM (contractual service margin, the reservoir of expected profit from contracts to be recognized over time) — the source of future earnings — steadily accumulated to about ₩2.47 trillion at the end of 2025.
- In Q1 2026 CSM continued to grow, rising 11.1% year on year.
- In other words, the profit reservoir of the core insurance business is expanding.
- However, the final Q1 2026 net result was a loss of ₩19.8 billion.
- The insurance-operating result turned to profit, but rising interest rates fed valuation losses on held bonds into the investment result.
- Because the final net result swings heavily with the direction of interest rates like this, full-year 2026 earnings vary widely depending on the rate path.
- The flow of disclosures centers on periodic reports.
- A Q1 2026 report was filed in May, and in March the 2025 annual report and the AGM results were disclosed.
- Two axes actually move this company's shares.
- The first is the recovery of the core insurance business (rising CSM and a turnaround to an insurance-operating profit), and the second is the stake sale under way by the largest shareholder, a private-equity fund.
- Whether the sale goes through, on what terms, and whether the regulator approves the management-improvement plan are the variables ahead.
- On the positive side is the direction of the core insurance business.
- The shift toward long-term protection insurance is steadily building CSM, and the Q1 2026 insurance-operating result turned to profit.
- K-ICS also cleared the regulatory guidance level, restoring capital headroom.
- On the cautionary side is the volatility of the final net result.
- The investment result from putting collected premiums to work is sensitive to interest rates, so when rates rise, bond valuation losses can produce a loss as they did in Q1.
- Valuation also needs a balanced view.
- A P/E of 12x is not explained by earnings power alone; it reflects expectations tied to the governance event of the largest shareholder's sale as well.
- In sum, the strengths are the recovery of the core insurance business and sale expectations, while the weaknesses are the rate-driven swings in the investment result and an already elevated valuation.
🔎 Valuation vs peers Overvalued
Compared against domestic listed non-life insurers whose business structure overlaps — a large-cap (Samsung Fire & Marine) alongside mid-cap insurers (DB Insurance, Hyundai Marine & Fire, and Hanwha General Insurance).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Fire & Marine Insurance | 13.76x | 1.31x | 9.49% |
| DB Insurance | 5.55x | 0.91x | 16.43% |
| Hyundai Marine & Fire Insurance | 3.01x | 0.60x | 19.77% |
| Hanwha General Insurance | 2.19x | 0.24x | 11.20% |
Lotte Non-Life's P/E of 12.0x is the second highest in the peer set after Samsung Fire & Marine (13.6x). Yet its ROE, at 8.4%, is the lowest in the peer set, and its revenue contracted. Similarly sized mid-cap non-life insurers DB Insurance (P/E 5.3x, ROE 16.4%), Hyundai Marine & Fire (3.0x, 19.8%), and Hanwha General Insurance (2.3x, 11.2%) have stronger earnings power yet trade at far lower multiples. Earnings power alone does not explain Lotte Non-Life's premium. Much of that premium appears to come from expectations tied to the governance event of the largest shareholder's sale. Given that Q1 2026 was a net loss, we judge the current P/E of 12.45x to be a phase in which expectations run ahead of recovered earnings.
Price history Close · MA20 · MA60
The latest close is ₩2,060 and the market capitalization is ₩639.3 billion. The price sits above its 20-day moving average (₩1,940) and above its 60-day moving average (₩2,040). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.1, a neutral level. The one-month change is +11.1%, the three-month change is +3.0%, and the position relative to the 52-week high is -24.4%. Relative strength versus the KOSPI is 37 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 37% of all stocks. Over the past three months it lagged the index by 21.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -21.56% / 6M -26.31% / 12M -52.02%
Key metrics vs sector median
Valuation
The P/E of 12.45x is above the sector median (5.37x). The P/B of 1.04x is above the sector median (0.88x).
Profitability & financials
Return on equity (ROE) is 8.4%, below the sector average (11.0%). The operating margin is 6.6%. The debt ratio is 2248.8%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $618.2M | $747.1M | $655.4M | -12.27% ↓ slower |
| Operating profit | $248.8M | $20.6M | $42.9M | +108.42% ↑ faster |
| Net profit | $189.3M | $16.1M | $34.0M | +111.92% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $618.2M | $747.1M | $655.4M |
| Operating profit | — | — | $248.8M | $20.6M | $42.9M |
| Net profit | — | — | $189.3M | $16.1M | $34.0M |
| Revenue CAGR | 2-yr avg 2.96% | ||||
Revenue fell 12.3% year over year (2023 ₩932.8 billion → 2024 ₩1.1 trillion → 2025 ₩988.9 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 108.4% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 3.0%. The two-year revenue CAGR is 3.0%. In the most recent quarter (Q1 2026), revenue was 22.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 12.3% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15FilingQ1 2026 report filed. Revenue of ₩314.6 billion (+22.4% year on year), operating loss of ₩28.5 billion, net loss of ₩19.8 billion. The insurance-operating result turned to profit, but bond valuation losses from rising rates fed into the investment result.Near term: improvement in the core insurance business and the final loss diverge, making results complicated to interpret. Reconfirms a structure in which the rate direction governs quarterly results. Source
- 2026-03-19Earnings2025 annual report filed. Annual revenue of ₩988.9 billion, operating profit of ₩64.7 billion, net profit of ₩51.3 billion (+112% year on year). CSM (contractual service margin) expanded to about ₩2.47 trillion.Medium term: the shift toward long-term protection insurance builds the profit reservoir (CSM), strengthening the earnings base of the core business. Source
- 2026-03-27FilingAGM results disclosed. Routine agenda items such as approval of the financial statements were processed.Medium term: a routine event for confirming the direction of shareholder returns, such as dividends and appropriation of retained earnings. Source
- 2026-05-29FilingCorrected Q1 2026 report filed reflecting the finalized quarterly financials.Near term: finalized quarterly financials reflected. A point for checking the trend in capital soundness (K-ICS). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29PeriodicQuarterly report (amended)
- 2026-05-28Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-04Disclosure
- 2026-04-09Disclosure
- 2026-03-31PeriodicAnnual business report (amended)
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.