Heungkuk Fire & Marine Insurance is a non-life insurer whose business centers on long-term policies that cover illness and injury over extended periods, alongside auto and general insurance. It earns money on two fronts: underwriting well to keep loss ratios low, and generating investment income by deploying collected premiums into bonds and equities. Its largest shareholders are Heungkuk Life Insurance and Taekwang Industrial, making it a financial affiliate of the Taekwang Group. Recent filings have been mostly routine, dominated by the Q1 quarterly report and group-affiliate transaction and governance disclosures, and top-line insurance volume grew 20.8% in Q1. The notable point is that a P/B of 0.24x, the lowest among peer non-life insurers, together with an 18.1% ROE that is among the highest in the peer group for capital returns, stands out as a strength; on the other hand, as shown by the small Q1 net loss driven by a one-off derivative valuation loss, mark-to-market gains and losses can make quarterly results swing with interest-rate and bond-market moves.
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 5.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 20.8% higher than a year earlier.
- ROE is 18.1% (total-net basis). It is above the sector average.
- Operating margin is 26.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Heungkuk Life Insurance 40.06% (corporate)
Controlling bloc incl. related parties 79.19%
With the controlling bloc holding 79%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Heungkuk Fire & Marine Insurance (full name Heungkuk Fire & Marine Insurance) is a non-life insurer.
- According to the official quarterly report, its main lines are non-life insurance and the related reinsurance, and it operates 14 regional headquarters, 119 branches, and 28 claims offices nationwide.
- The core of its top line is long-term insurance (protection-type policies) that cover illness and injury over long horizons, supplemented by auto insurance and general lines such as fire and liability.
- It earns profit by combining underwriting income, the surplus left after paying claims out of collected premiums, with investment income from deploying those premiums into assets such as bonds and equities.
- In short, it makes money on two fronts: underwriting well to keep loss ratios low, and managing accumulated assets effectively.
- Its largest shareholders are Heungkuk Life Insurance (40.06%) and Taekwang Industrial (39.13%), making it a financial affiliate of the Taekwang Group (listed on the exchange in 1974).
- The latest close is ₩3,035 and market capitalization is ₩195.0 billion.
- The price sits below its 20-day line (₩3,307) and below its 60-day line (₩3,819).
- Trading below both its short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 33.7, a neutral level.
- The 1-month change is -15.1%, the 3-month change is -26.1%, and it stands -53.9% below its 52-week high.
- Relative strength versus KOSPI is 11 (1-99, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- It sits in roughly the top 90% of all stocks by strength.
- Over the past three months it lagged the index by 43.5%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- The P/B (how many times shareholders' equity the price represents) is 0.23x, meaning it trades at a quarter of book value, the lowest even among peer non-life insurers.
- ROE (how much it earns in a year on equity) is 18.1%, so profitability is strong, an unusual combination of turning capital effectively while trading below that capital.
- For insurance and financial firms, premiums collected are booked largely as liabilities (policy reserves) for future claim payments, so applying the same debt-ratio and interest-coverage yardsticks as an ordinary manufacturer distorts the picture.
- Insurer soundness is judged not by the debt ratio but by K-ICS (the solvency ratio, a regulatory measure of whether capital is sufficient to cover claims).
- The P/E (how many times a year's profit the price represents), on a trailing basis, is 1.30x, computed on 2025 net profit of ₩151.7 billion, which had recovered from a prior weak stretch.
- For an insurer whose earnings swing, a multiple based on a single past year tends to look cheaper than reality, so the forward P/E based on this year's expected profit is a more realistic yardstick, and even that value sits at the low end of the peer non-life group.
- In other words, on either a past or forward basis, the price is not in expensive territory relative to earnings.
- Net profit over the last three years traced a V-shaped path of ₩295.5 billion (2023), ₩106.7 billion (2024), and ₩151.7 billion (2025), falling in 2024 then recovering 42.1% in 2025.
- Revenue was ₩716.4 billion in 2025, down 5.0% year on year (a mixed three-year trend), but Q1 2026 revenue rose 20.8% year on year, so the top line revived again.
- That the same quarter's operating and net figures turned to a small loss is not because the core insurance business broke down; rather, it largely reflects a one-off valuation loss on hedging derivatives amid falling interest rates.
- Such valuation losses tend to reverse or shrink as rates and bond markets normalize, so if premium growth and a healthy loss ratio in the core business persist, full-year profit this year could form at a level that supports capital returns, aided by new-business growth and normalizing investment income.
- That the forward P/E reflecting this trend sits at about 2.9x, at the low end among peer non-life insurers (Hanwha General Insurance 2.3x, Hyundai Marine & Fire 3.0x, DB Insurance 5.0x), shows that expectations for a top-line recovery and earnings normalization are not yet fully priced in.
- Recent disclosures have centered on routine reporting: the Q1 2026 quarterly report and its amendment, a large-business-group status disclosure showing membership in the Taekwang Group, standard-terms financial transactions with affiliated financial companies (beneficiary certificates and bonds), a corporate governance report, and shareholder-meeting filings.
- Rather than any large single order win or separate preliminary-earnings disclosure, the filing pattern is the typical one for a financial-group insurer, dominated by group-affiliate transactions and routine and governance disclosures.
- For an investor, the key is to check the K-ICS ratio and the swings in investment income directly in the body of the quarterly report.
- The strengths are clear.
- The price relative to equity is the lowest among peer non-life insurers (P/B 0.24x), an 18.1% ROE places capital returns among the highest in the peer group, and Q1 2026 insurance volume grew 20.8%.
- On either a trailing or a forward basis, the price relative to earnings sits at the low end of the peer group, so the stock reads as undervalued on both an asset and a profitability basis.
- The cautions deserve balanced weight too.
- Q1 net profit was a small loss due to a one-off derivative valuation loss, and such mark-to-market swings make quarterly results move whenever rates and bond markets are choppy.
- There is also the trading-volume and liquidity discount typical of a small insurer.
- In sum, this is a stock where a low multiple could naturally be justified if rates stabilize and the core loss ratio stays healthy, and where prolonged rate volatility could keep quarterly profit swinging and slow the closing of the valuation gap.
🔎 Valuation vs peers Undervalued
Listed domestic non-life insurers with a similar business mix, weighted toward small and mid-sized players; Hanwha General Insurance (a small-to-mid non-life insurer with a high share of long-term policies) is the closest comparable, while Hyundai Marine & Fire and DB Insurance serve as large-cap reference points.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha General Insurance | 2.19x | 0.24x | 11.20% |
| Hyundai Marine & Fire Insurance | 3.01x | 0.60x | 19.77% |
| DB Insurance | 5.55x | 0.91x | 16.43% |
The price relative to equity (P/B 0.27x) is the lowest among peer non-life insurers, and with an 18.1% ROE profitability is among the highest in the peer group, so on an asset and profitability basis this is undervalued territory. That said, the 1.51x P/E is a trailing figure from a point when 2025 net profit rose sharply off a recovery base, so it should not be taken at face value (at an earnings inflection, a multiple based on past profit can look cheaper than reality). Because Q1 turned to a loss on a one-off valuation charge, on a forward basis the multiple rises above the trailing one and looks likely to converge toward Hanwha General Insurance's level, yet it would still sit at the low end of the peer group. A small-cap discount and quarterly swings tied to rate moves are why the undervaluation does not close easily.
Price history Close · MA20 · MA60
The latest close is ₩3,035 and the market capitalization is ₩195.0 billion. The price sits below its 20-day moving average (₩3,307) and below its 60-day moving average (₩3,819). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 33.7, a neutral level. The one-month change is -15.1%, the three-month change is -26.1%, and the position relative to the 52-week high is -53.9%. Relative strength versus the KOSPI is 11 (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 10% of all stocks. Over the past three months it lagged the index by 43.5%. 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 -43.55% / 6M -47.09% / 12M -69.70%
Key metrics vs whole-market median
Valuation
The P/E of 1.29x is below the whole-market median (13.81x). The P/B of 0.23x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Profitability & financials
Return on equity (ROE) is 18.1%, above the whole-market average (5.0%). The operating margin is 26.2%. The debt ratio is 1493.9%, 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 | $456.4M | $500.0M | $474.8M | -5.04% ↓ slower |
| Operating profit | $252.5M | $98.6M | $124.3M | +26.03% ↑ faster |
| Net profit | $195.9M | $70.7M | $100.5M | +42.13% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $456.4M | $500.0M | $474.8M |
| Operating profit | — | — | $252.5M | $98.6M | $124.3M |
| Net profit | — | — | $195.9M | $70.7M | $100.5M |
| Revenue CAGR | 2-yr avg 2.00% | ||||
Revenue fell 5.0% year over year (2023 ₩688.6 billion → 2024 ₩754.4 billion → 2025 ₩716.4 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 26.0% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 2.0%. The two-year revenue CAGR is 2.0%. In the most recent quarter (Q1 2026), revenue was 20.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 18.1% points to solid profitability.
Points to watch
- Revenue fell 5.0% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-29FilingFiled the (amended) Q1 2026 quarterly report - top-line revenue rose 20.8% year on year, but operating and net results turned to a small lossShort term: a quarterly loss surfaced as a one-off valuation loss was recognized. Medium term: whether core underwriting keeps growing and investment income normalizes is the key to an earnings recovery. Source
- 2026-06-01FilingLarge-business-group status disclosure (individual company) - a routine filing confirming it is a financial affiliate of the Taekwang Group (largest shareholders Heungkuk Life 40.06%, Taekwang Industrial 39.13%)Medium term: group governance and affiliate transactions can affect capital policy and asset management, so it is worth monitoring. Source
- 2026-04-15FilingCorporate governance report disclosure (annual report, attachment amendment) - disclosing the state of the board, internal controls, and other governance mattersMedium term: a reference for gauging governance transparency and shareholder-return policy, and a supporting basis for judging dividend potential. Source
- 2026-04-10FilingStandard-terms financial transactions by an affiliated financial company (securities - beneficiary certificates and bonds) - disclosure of asset-management dealings among affiliatesShort term: limited impact, but the scale and terms of affiliate transactions warrant a check from an asset-soundness and conflict-of-interest standpoint. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Largest-shareholder stakes | 40.06% · 39.13% | 40.06% · 39.13% | Confirmed | link |
| Q1 2026 results | revenue 2,723(YoY +20.8%), -21.4, -6.6 | revenue 2,723, -21 | Confirmed | link |
| 2025 net profit (separate) | ₩151.7 billion(YoY +42.1%) | — | Unverified | link |
| P/B (price / shareholders' equity) | 0.27x | — | Unverified | link |
Recent filings
- 2026-06-05Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-05-29PeriodicQuarterly report (amended)
- 2026-05-27Large-business-group status disclosure (amended)
- 2026-05-27Large-business-group status disclosure (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-04-15Corporate governance report (amended)
- 2026-04-10Disclosure
- 2026-04-10Disclosure
- 2026-04-06Amended filing
- 2026-04-06Amended filing
- 2026-03-31Earnings disclosure
📖 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.