Hyundai Marine & Fire Insurance is a non-life insurer selling auto, long-term, and general insurance. Its earnings rest on two pillars: the insurance result (collecting premiums, providing coverage, and keeping what is left over) and the investment result (putting accumulated reserves to work in bonds and similar assets), while under the new accounting standard the CSM, a reservoir of future profit, keeps flowing in. In the first quarter of 2026 the long-term insurance result jumped as actual loss ratios came in low and the portfolio was steered toward more profitable products, and the company is returning capital by cancelling a large portion of its treasury stock, which amounts to roughly 12% of shares outstanding, though it paid no dividend for the 2024 or 2025 year-ends. What stands out lately is that with an ROE of about 20% and a K-ICS ratio near 207% both earnings and capital are solid, and at a P/E of 2.88x and a P/B of 0.57x the stock trades clearly below peers, yet the two straight years without a dividend are the main reason for that low valuation, so whether the dividend resumes once distributable profit is secured is the key to closing the discount.
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 rose 2.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 57.1% higher than a year earlier.
- ROE is 19.8% (controlling-interest basis). It is above the sector average.
- Operating margin is -12.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Chung Mong-yoon 22% (individual)
Controlling bloc incl. related parties 22.84%
With the controlling bloc holding 23%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Hyundai Marine & Fire Insurance is a non-life insurer that sells auto insurance, long-term insurance (including personal lines such as health and accident cover), and general insurance.
- Its earnings rest on two pillars: an insurance result, which comes from collecting premiums, providing coverage, and managing claims so that less is paid out, and an investment result, which comes from putting accumulated premiums (reserves and provisions) to work in bonds and similar assets.
- In the first quarter of 2026 the long-term insurance result surged, helped by an actual loss ratio (claims paid relative to premiums received) that came in below expectations and by a portfolio steered toward more profitable products.
- Auto insurance was still slightly loss-making, but the loss narrowed.
- Under the new accounting standard (IFRS 17), the CSM (contractual service margin), which sets aside profit to be earned in the future, acts as a reservoir of future earnings, and new-business CSM keeps flowing in.
- The latest close is ₩36,050 and the market cap is ₩3.1 trillion.
- The price sits below its 20-day moving average (₩37,138) but above its 60-day line (₩34,488).
- With the short- and medium-term trends pointing in opposite directions, the two need to be read separately.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 49.0, a neutral reading.
- The stock is down 4.0% over one month and up 21.8% over three months, and it stands 12.6% below its 52-week high.
- Its relative strength versus the KOSPI is 46 (on a 1-99 scale that converts one-year return against the index, weighting recent performance more heavily; higher means stronger than the market), placing it in roughly the top 88% by strength across all stocks.
- Over the past three months it has lagged the index by 4.2%.
- Chart signals are best read alongside trading volume and disclosure dates.
- At a P/E of 2.88x and a P/B of 0.57x, the stock trades low even among non-life peers.
- ROE (how much is earned on equity in a year) is about 19.8%, on the high side, giving the combination of 'earns well, yet the price is near half of book equity.' Net margin is a solid 32% or so.
- Because insurers carry large accounting liabilities in the form of reserves owed back to customers, judging their debt ratio or interest coverage by the same yardstick used for manufacturers can mislead, so financial soundness should be read through the K-ICS (solvency) ratio.
- At the end of the first quarter of 2026, K-ICS was about 207%, comfortably above both the regulatory floor (100%) and the company's own target (160%), so the capital cushion is solid.
- For reference, the 'operating profit' line reported to DART shows as negative, but that is merely an artifact of forcing a non-life insurer's income structure into a manufacturing template; the actual insurance result and net profit are positive.
- Over the past three years net profit ran ₩574.4 billion (2023) to ₩850.5 billion (2024) to ₩1,019.8 billion (2025), a compound pace of about 32% a year.
- The growth rate itself has eased from +48% to +20%, but earnings are still scaling up.
- Revenue (insurance service income) grew a modest +2.2% in 2025, but first-quarter 2026 revenue rose 57% year over year and net profit grew in the double digits (about +16%).
- Given that the first quarter (net profit of about ₩236.4 billion on a consolidated basis) is seasonally weak, if the lower loss ratio and reduced onerous-contract costs persist, full-year earnings this year could well exceed last year's ₩1,019.8 billion.
- On that earnings trajectory, the P/E on this year's expected earnings works out to about 2.5x, below the 2.88x on last year's results.
- In other words, the multiple is compressed even as earnings are rising.
- On May 15, 2026 the first-quarter provisional results and the quarterly report were disclosed, and an IR was held during the same period.
- The capital-return moves stand out: the company decided to cancel a large portion of its treasury stock (about 12% of shares outstanding), with some already cancelled.
- Cancelling treasury stock is a classic form of capital return, lifting per-share value by reducing the share count.
- However, it paid no dividend for the 2024 or 2025 year-ends, because distributable profit was hard to secure under the new accounting and supervisory regime.
- The company has said it will bring forward the point at which distributable profit is available and set a medium-term capital-return policy.
- Resuming the dividend is the key to normalizing the valuation.
- The strengths are clear.
- ROE of about 20% signals high profitability, the first-quarter surge in the long-term insurance result improved the earnings base, and K-ICS near 207% means capital is solid.
- A P/E of 2.88x and a P/B of 0.57x sit clearly below non-life peers, marking a level where the price looks cheap against both earnings and assets.
- The ongoing treasury-stock cancellation is real capital return.
- The caution is the dividend.
- Two straight years without one weakens the appeal for income-focused investors, and that dividend gap is itself the main reason for the low valuation.
- If distributable profit is secured and the dividend resumes, there is ample room for the discount to close; if it is delayed, the discount may persist.
- Non-life earnings can also swing quarter to quarter with loss ratios, interest rates, and CSM amortization, so it is better to read the annual trend than to overreact to a single quarter's figure.
🔎 Valuation vs peers Undervalued
Compared against large listed domestic non-life insurers with a similar mix of auto, long-term, and 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% |
(a) Position versus peers: at a P/E of 2.88x and a P/B of 0.57x, the stock is clearly lower than Samsung Fire & Marine (P/E 13.8, P/B 1.31) and DB Insurance (P/E 4.99, P/B 0.82). Its ROE, at about 20%, is actually higher than both. (b) Discount factor: the biggest reason is the two straight years without a dividend. Under the new accounting and supervisory regime, securing distributable profit was delayed and no dividend was paid, which weighed on the valuation. (c) Trailing limits and the forward case: the trailing P/E of 2.88x is already low, but reflecting the first-quarter surge in the long-term insurance result and the improving loss ratio, the P/E on this year's expected earnings drops further to about 2.5x. With earnings rising and capital solid yet the multiple among the lowest in the group, a resumed dividend could go a long way toward closing the discount, which is why we read this as an undervalued level.
Price history Close · MA20 · MA60
The latest close is ₩36,050 and the market capitalization is ₩3.1 trillion. The price sits below its 20-day moving average (₩37,138) and above its 60-day moving average (₩34,488). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 49.0, a neutral level. The one-month change is -4.0%, the three-month change is +21.8%, and the position relative to the 52-week high is -12.6%. Relative strength versus the KOSPI is 46 (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 46% of all stocks. Over the past three months it lagged the index by 4.2%. 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 -4.19% / 6M -27.94% / 12M -43.46%
Key metrics vs sector median
Valuation
The P/E of 3.01x is below the sector median (5.37x). The P/B of 0.60x is below the sector median (0.88x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Profitability & financials
Return on equity (ROE) is 19.8%, above the sector average (11.0%). The operating margin is -12.5%. The debt ratio is 977.8%, 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 (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.6B | $2.1B | $2.1B | +2.24% ↓ slower |
| Operating profit | -$273.2M | -$290.3M | -$262.8M | — |
| Net profit | $380.7M | $563.7M | $675.9M | +19.90% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $1.6B | $2.1B | $2.1B |
| Operating profit | — | — | -$273.2M | -$290.3M | -$262.8M |
| Net profit | — | — | $380.7M | $563.7M | $675.9M |
| Revenue CAGR | 2-yr avg 16.26% | ||||
Revenue rose 2.2% year over year (2023 ₩2.3 trillion → 2024 ₩3.1 trillion → 2025 ₩3.2 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 3 years on record, revenue compound annual growth (CAGR) is 16.3%. The two-year revenue CAGR is 16.3%. In the most recent quarter (Q1 2026), revenue was 57.1% 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 19.8% points to solid profitability.
Points to watch
- Revenue rose 2.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-15EarningsFirst-quarter 2026 provisional operating results disclosed. The long-term insurance result rose sharply, lifting net profit by double digits year over year; auto insurance was slightly loss-making, but the loss narrowed.Confirms improving medium-term earnings. If the lower loss ratio and reduced onerous-contract costs persist, there is room to raise full-year earnings. Source
- 2026-05-15FilingFirst-quarter 2026 quarterly report filed. Discloses detailed financial metrics including the financial statements and K-ICS.Supporting evidence for financial soundness, such as the capital cushion (K-ICS about 207%). Underpins medium- to long-term stability. Source
- 2026-05-04IRNotice of an IR (investor briefing). A forum for communicating on first-quarter results and capital and capital-return policy.A channel to confirm the company's direction on capital return (treasury-stock cancellation and efforts to resume the dividend). Source
- 2026-05-14FilingCorporate governance report disclosed (attachment correction). Updates governance status including the board and capital return.Reference material on the capital-return framework and governance transparency. Affects long-term credibility. Source
- 2026-05-29FilingLarge business group status disclosure (annual). Regular disclosure of affiliate status within the business group.Limited direct impact on earnings, but useful for confirming affiliate-structure transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 net profit (consolidated) | approx. ₩236.4 billion(+16.0% YoY) | 2026-05-15 | Confirmed | link |
| 2025 full-year net profit | approx. 1₩19.8 billion(+19.9% YoY) | 2026-05-15 | Confirmed | link |
| Dividend (DPS) | base dividend_yield·dps=null | 2024·2025 | Confirmed | link |
| This year's expected net profit and forward P/E | approx. 1₩150.0 billion / forward PER approx. 2.5x(self-estimate) | — | Unverified | — |
Recent filings
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15EarningsFair-disclosure notice
- 2026-05-14Corporate governance report (amended)
- 2026-05-04Disclosure
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10Disclosure
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
📖 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.