Korean Re is the country's only dedicated reinsurer, a company that takes on risks other insurers find too heavy to carry alone. It underwrites fire, marine and aviation risk as well as life and long-term insurance risk, and the returns it earns by investing the premiums it collects are also a major source of profit. In its preliminary results for Q1 2026, operating profit rose 135.9% year over year, and in March the company voluntarily disclosed a corporate value-up plan setting out its direction on shareholder returns. What stands out recently is a balance: if a healthy loss ratio and a favorable rate environment persist, the higher earnings make low-valuation signals such as a 0.61x P/B and a 4.5% dividend yield look like strengths, but a large catastrophe that sharply worsens the loss ratio could widen the swings in profit.
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 17.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 128.0% higher than a year earlier.
- ROE is 8.7% (total-net basis). It is above the sector average.
- Operating margin is 52.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Jang In-sun 6.11% (individual)
Controlling bloc incl. related parties 20.32%
With the controlling bloc holding 20%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Korean Re is a reinsurance company (insurance for insurers) that takes on risks other insurers find too heavy to bear alone.
- As the only dedicated reinsurer in the country, it underwrites a broad range of exposures — not only general property risks such as fire, marine, aviation and specialty lines, but life and long-term insurance risk as well — and the investment income it earns by putting the premiums it receives (assumed premiums) to work is another major source of profit.
- A large share of its revenue comes from domestic primary insurers, but it also maintains a steady share of overseas assumed business, so the business is more sensitive to the overall flow of market risk and to reinsurance rates than to any single insurer's sales.
- In other words, it is closer to reality to think of it as a company that takes risk off others' books and accumulates the fees plus investment returns, rather than as a company that sells insurance.
- The latest close is ₩13,370 and the market cap is ₩2.4 trillion.
- The price sits above the 20-day line (₩13,256) and above the 60-day line (₩12,950).
- Being above both the short- and medium-term moving averages, the trend looks healthy.
- The RSI (an auxiliary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 52.1, a neutral level.
- The one-month change is +2.2%, the three-month change is +10.0%, and the position versus the 52-week high is -8.1%.
- Relative strength versus the KOSPI is 43 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 57% of all stocks by strength.
- Over the past three months it lagged the index by 9.6%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- On confirmed full-year 2025 results, the P/E ratio (how many times one year's net profit the price represents) is 7.34x, the P/B (how many times net assets per share) is 0.64x, ROE (how much is earned in a year on shareholders' equity) is 8.7%, and the operating margin is 52.3%.
- A P/B below 1x means the market cap is smaller than book net assets.
- The debt ratio (debt relative to equity) is 387%, which looks high on the face of it, but insurers are a business where the policy reserves that will be paid out as claims in the future are recorded as accounting liabilities, so they should not be judged by the same yardstick as ordinary manufacturers.
- The key point here is that the 6.95x P/E is on a trailing basis.
- Korean Re is a stock whose earnings have stepped up a level this year, and at such an earnings inflection the valuation implied by this year's profit is closer to the true picture than one built on last year's numbers.
- Indeed, the forward P/B on this year's earnings is 0.64x, falling even lower than the trailing figure.
- So rather than the trailing metrics being burdensome, the structure is one that actually gets cheaper as this year's earnings are reflected.
- Secured three-year annual operating profit rose each year, from ₩363.7 billion in 2023 to ₩405.4 billion in 2024 to ₩470.9 billion in 2025 (+16.2% year over year), and net profit also climbed steadily from ₩283.9 billion to ₩316.7 billion to ₩322.0 billion.
- Revenue jumped in 2024 and then fell in 2025, a mixed picture (-17.5% year over year), but in reinsurance — where profit matters more than the top line, driven by the loss ratio on assumed risk and the rate cycle — the more essential point is that earnings have been stacking up in step fashion even as the top line swings.
- And this year the very pace of earnings has stepped up a level.
- Q1 2026 operating profit was ₩291.2 billion, up 135.9% year over year, and net profit was ₩214.6 billion, up 125.5%.
- That single quarter's operating profit already equals 62% of last year's full-year operating profit.
- With the loss ratio staying healthy and the investment income from deploying assumed premiums providing support, the company has entered a phase where reinsurance rates and risk-taking are favorable.
- That this year's forward P/E, reflecting this earnings level, has fallen below the trailing figure (6.95x) directly shows a picture in which this year's earnings will clearly rise by a wide margin over last year's.
- That said, it is worth keeping in mind that, given the nature of reinsurance, quarter-to-quarter swings can be large depending on the timing of major catastrophes or claims.
- The core of this year's flow is two disclosures.
- First, the corporate value-up plan filed as a voluntary disclosure on March 27, 2026, is material in which the company set out how it intends to raise shareholder value on its own, and it is a starting point for gauging its direction on capital deployment and shareholder returns.
- Second, the Q1 preliminary results released as a fair disclosure on May 15 are material in which the company itself confirmed that operating profit rose 135.9% year over year.
- The quarterly report (and its correction) filed on that day and on May 29 is the source document behind those numbers, and the new-facility investment disclosures in March-April show capital being deployed on the asset and infrastructure side.
- All of these are facts confirmed directly from official source documents rather than from general news reports.
- Korean Re's strengths are clear: its position as the country's only dedicated reinsurer, a 0.61x P/B that sits below net assets (0.56x on this year's earnings), a 4.5% dividend yield, and operating profit that has been stacking up each year and stepped up another level in Q1 this year.
- In particular, the forward P/E reflecting this year's earnings is a low, undervalued signal relative to the reference peer set (Samsung Fire & Marine at 14.4x, etc.) — an uncommon combination in which the valuation actually gets cheaper as earnings grow.
- Also worth weighing is that its 8.7% ROE is lower than the comparison large non-life insurers (in the 16-20% range), though this is less a weakness than something that stems largely from the difference in business structure between reinsurance and primary insurance.
- In short, when a healthy loss ratio and a favorable rate environment persist, the higher earnings make the low P/B and P/E look like strengths, whereas a sharp deterioration in the loss ratio from a major catastrophe would expose the swings in profit as a weakness.
- On the current figures alone, the stock clearly sits on the cheap side relative to its assets and earnings.
🔎 Valuation vs peers Undervalued
Korean Re is the only listed dedicated reinsurer in the country, so with no direct peer, the closest listed non-life insurers by business are used as a reference set (bearing in mind that primary insurers and reinsurers differ in business structure).
| 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% |
Against the reference peer set, Korean Re's P/B (0.64x) sits in the same low range as Hyundai Marine & Fire (0.61x) and its P/E is around the middle. Asset valuation is in discount territory, but with ROE at roughly half the peer level, much of that discount is explained by the difference in profitability. The key, however, is a question of timing. The 7.4x P/E is calculated on trailing confirmed results, yet Q1 2026 operating profit already reaches 62% of last year's full-year figure, so earnings may have passed an inflection point. No official company outlook figures are confirmed, so a forward basis can only be approximated from the three-year seasonality ratios of DART's confirmed quarterly results, and that is an estimate. It is therefore more appropriate to view this not as a flat 'cheap or expensive' call but as a conditional structure: if the Q1 pace of earnings carries through for the year, the low P/B becomes a strength, and if earnings revert, the low ROE becomes a weakness.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩744.2 billion | approx. ₩393.3 billion | approx. ₩285.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩13,370 and the market capitalization is ₩2.4 trillion. The price sits above its 20-day moving average (₩13,256) and above its 60-day moving average (₩12,950). 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 52.1, a neutral level. The one-month change is +2.2%, the three-month change is +10.0%, and the position relative to the 52-week high is -8.1%. Relative strength versus the KOSPI is 44 (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 43% of all stocks. Over the past three months it lagged the index by 9.6%. 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 -9.60% / 6M -30.80% / 12M -44.20%
Key metrics vs whole-market median
Valuation
The P/E of 7.34x is below the whole-market median (13.81x). The P/B of 0.64x 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. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Profitability & financials
Return on equity (ROE) is 8.7%, above the whole-market average (5.0%). The operating margin is 52.3%. The debt ratio is 387.1%, 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 | $460.1M | $723.7M | $597.2M | -17.47% ↓ slower |
| Operating profit | $241.0M | $268.7M | $312.1M | +16.16% ↑ faster |
| Net profit | $188.1M | $209.9M | $213.4M | +1.70% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $460.1M | $723.7M | $597.2M |
| Operating profit | — | — | $241.0M | $268.7M | $312.1M |
| Net profit | — | — | $188.1M | $209.9M | $213.4M |
| Revenue CAGR | 2-yr avg 13.94% | ||||
Revenue fell 17.5% year over year (2023 ₩694.1 billion → 2024 ₩1.1 trillion → 2025 ₩901.1 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 16.2% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 13.9%. The two-year revenue CAGR is 13.9%. In the most recent quarter (Q1 2026), revenue was 128.0% 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.
- The dividend yield, at 4.3%, is on the high side.
Points to watch
- Revenue fell 17.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-27FilingCorporate value-up plan (voluntary disclosure) filed — the company voluntarily disclosed measures to raise corporate value, including its direction on capital deployment and shareholder returnsA reference point for gauging the direction of shareholder-return policy over the medium term. Whether it translates into actual execution is the key question. Source
- 2026-05-15EarningsFair disclosure of Q1 2026 preliminary operating results — the company itself confirmed that operating profit rose 135.9% year over yearConfirms the earnings improvement in official company material in the near term. Suggests the trailing P/E may look higher than reality. Source
- 2026-05-15FilingQ1 2026 quarterly report filed — source document behind revenue of ₩532.1 billion, operating profit of ₩291.2 billion and net profit of ₩214.6 billionThe confirmed basis for the preliminary figures. The cumulative basis lets you check the quarterly flow. Source
- 2026-03-27FilingNew-facility investment disclosure — disclosed the deployment of new investment in assets and infrastructure (includes a correction filed on 2026-04-16)Material that shows changes in operating infrastructure and capital allocation over the medium term. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩291.2 billion(+135.9% YoY) | 135.9% — 5 15 | Confirmed | link |
| 2025 full-year operating profit | ₩470.9 billion | 2025 | Confirmed | link |
| Dividend per share (DPS) | ₩570 | — | Unverified | link |
| Seasonality-approximated full-year operating profit for this year | approx. ₩1.3 trillion | — | Unverified | link |
Recent filings
- 2026-05-29PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15EarningsFair-disclosure notice
- 2026-04-16Amended filing
- 2026-04-14Corporate governance report (amended)
- 2026-04-10OwnershipOwnership-change filing
- 2026-04-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-02OwnershipOwnership-change filing
- 2026-03-31PeriodicAnnual business report (amended)
- 2026-03-27Disclosure
- 2026-03-27Disclosure
📖 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.