Hanwha Life is Korea's second-largest life insurer, selling individual and group life policies. It earns money along three lines: insurance operating profit, where the future earnings of protection-type policies are accumulated in CSM and released each year; investment income from managing ₩178 trillion in total assets; and consolidated earnings from its sales subsidiary and overseas affiliates. In Q1 2026 all three lines held up evenly, and on May 12 the company disclosed consolidated net profit of ₩381.6 billion (up roughly 29% year over year) in a fair disclosure. On the same day's conference call, it flagged the possibility of a full-year net increase in CSM while reaffirming that reforms to the surrender-value reserve system must come first before dividends can resume. What stands out lately is that at a P/B of 0.27x the discount to asset value is clear, and with net profit up 29% and CSM growing again, three years of declining earnings are at an inflection point toward recovery while K-ICS soundness holds; yet two straight years without a dividend and a low 4.6% ROE mean the low P/B could be left in place for a long time if the dividend-system reform is delayed.
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 11.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 90.3% higher than a year earlier.
- ROE is 4.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 7.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Hanwha 43.24% (corporate)
Controlling bloc incl. related parties 45.05%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Hanwha Life is Korea's second-largest life insurer, selling individual and group life policies.
- It makes money along three broad lines.
- First is insurance operating profit from selling protection-type policies covering death, illness, and long-term care.
- Under the new accounting standard (IFRS17), the future earnings of these contracts are stored in an item called CSM (contractual service margin, a reservoir of profit recognized gradually over time) and released into results a little each year.
- That is why, for a life insurer, whether CSM grew or shrank matters more to earnings than how much was sold this year.
- Second is investment income, earned by putting the premiums collected from customers to work in bonds, equities, loans, and real estate.
- With total assets reaching ₩178 trillion, the company also has the character of a large asset manager.
- Third is consolidated earnings flowing up from subsidiaries such as Hanwha Life Financial Services (a large insurance-sales subsidiary) and overseas units.
- In Q1 2026 all three lines (new protection contracts, improved investment income, subsidiary results) held up evenly, lifting net profit.
- The latest close is ₩4,245 and market cap is ₩3.7 trillion.
- The price sits below its 20-day line (₩4,779) and below its 60-day line (₩4,934).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- RSI (an auxiliary gauge weighing the strength of gains against losses over the past 14 days on a 0-100 scale) is 36.5, a neutral level.
- The one-month change is -11.3%, the three-month change is -3.5%, and the position versus the 52-week high is -35.7%.
- Relative strength versus the KOSPI is 46 (1-99, recent one-year return against the index recency-weighted; higher means stronger than the market).
- That places it in roughly the top 54% of all stocks by strength.
- Over the past three months it lagged the index by 29.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 5.75x, and the P/B (how many times book equity the price represents) is 0.27x.
- In particular, a P/B of 0.27x means the shares are priced at just over a quarter of the company's book equity per share (₩15,976) — a discount characteristic of life insurers.
- ROE (how much is earned in a year per unit of equity) is still on the low side at 4.6%, and the net margin of 4.2% is also modest.
- That said, an insurer's liabilities (₩178 trillion) are mostly 'insurance contract reserves' to be returned to customers, so they are entirely different in nature from an ordinary manufacturer's debt.
- For that reason an insurer's soundness should be judged not by debt ratio but by K-ICS (the solvency ratio, the capital buffer to pay claims even in a crisis), and Hanwha Life's K-ICS on a total-capital basis is about 157%, above the regulatory floor (100%).
- Because last year's net profit fell from the prior year, the trailing P/E alone looks bland, but this is a company at an earnings inflection where profit is rising again, so judging on last year's confirmed results has its limits.
- Revenue (premium income and the like) rose for three straight years (2023 to 2025) at an annual pace of around 11%, and operating profit trended gently higher.
- Net profit, by contrast, slid over three years — from ₩758.5 billion in 2023 to ₩737.3 billion in 2024 to ₩641.3 billion in 2025 (standalone) — reflecting CSM adjustments after the shift to the new accounting standard and a lowered earnings baseline amid changing investment conditions.
- But the flow changed in Q1 2026.
- Consolidated net profit came in at ₩381.6 billion, up about 29% year over year, and the company said 'the quarterly reduction in CSM adjustment eased sharply and the CSM balance on in-force contracts also grew net,' adding that a full-year net increase in CSM is possible.
- A net increase in CSM means the reservoir of future earnings to be drawn down is being refilled, which is positive for the direction of earnings.
- With improved investment income and subsidiary results added on, it is reasonable to see this year's consolidated earnings on a track that improves versus last year (standalone).
- The 2026 flow can be read around earnings disclosures and IR.
- On April 28 the company pre-announced a Q1 earnings IR, and on May 12 it officially reported Q1 consolidated net profit of ₩381.6 billion (up about 29% year over year) via a fair disclosure of provisional operating results.
- On the same day's conference call, the company flagged the possibility of a full-year net increase in CSM while reaffirming that dividends can resume only after reforms to the surrender-value reserve system.
- That system is a factor that locks accounting profit away from distributable profit; if reformed, it would open room to end the two years without a dividend.
- In April, disclosures related to holdings followed, including changes in executive and major-shareholder stakes and large-holding reports.
- Observations in summary: (1) With the price at about a quarter of net asset value (P/B 0.27x), the discount to asset value is clear, and even compared with other large life insurers the discount is wide.
- (2) Q1 2026 net profit rose 29% and CSM turned to a net-increase phase, putting three years of declining earnings at a recovery inflection.
- (3) K-ICS is above the regulatory floor, so soundness itself is maintained.
- Points to note: (1) With no dividend for two straight years, shareholder returns are weak, and if the system reform that is the key to normalizing dividends is delayed, the low P/B could persist.
- (2) At an ROE of 4.6%, capital efficiency is still low, so the discount can be countered with the 'cheap for a reason' argument.
- (3) A life insurer's earnings are sensitive to the investment environment (rates, equities) and CSM adjustments, so quarter-to-quarter swings are large.
- In short, this is closer to 'a low P/B held down by dividends and capital efficiency while soundness is maintained' than to the low valuation of a company with impaired capital, and a structure where the discount can narrow as earnings recovery and dividend-system reform are confirmed.
🔎 Valuation vs peers Undervalued
Compared with large domestic life and non-life insurers (a functionally similar business set) on valuation relative to capital and profitability.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Life Insurance | 28.31x | 1.04x | 3.67% |
| Samsung Fire & Marine Insurance | 13.76x | 1.31x | 9.49% |
| Hanwha General Insurance | 2.19x | 0.24x | 11.20% |
(a) Functional peer set: whereas Samsung Life, a large life insurer of the same kind, trades at a P/B of 1.23x, Hanwha Life is at 0.27x, valued very low relative to asset value. Hanwha General Insurance (P/B 0.25x, ROE 11.2%), a non-life insurer, differs in business character, so it serves more as a reference than a direct comparison. (b) Premium/discount: the absence of a dividend and the low ROE act as discount factors, so it carries a large discount to large peers. (c) The trailing P/E of 5.9x is based on last year's standalone net profit (₩641.3 billion) at a low after three straight declining years, so it does not fully reflect the current recovery phase (Q1 consolidated +29%, CSM growing net). Because an insurer's earnings swing widely, it is more appropriate to look at price-to-book, K-ICS, and CSM trends than at P/E; on that view this is judged undervalued, trading at about a quarter of net asset value while soundness holds.
Price history Close · MA20 · MA60
The latest close is ₩4,245 and the market capitalization is ₩3.7 trillion. The price sits below its 20-day moving average (₩4,779) and below its 60-day moving average (₩4,934). 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 36.5, a neutral level. The one-month change is -11.3%, the three-month change is -3.5%, and the position relative to the 52-week high is -35.7%. 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 29.1%. 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 -29.07% / 6M -18.81% / 12M -45.03%
Key metrics vs whole-market median
Valuation
The P/E of 5.75x is below the whole-market median (13.81x). The P/B of 0.27x 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 4.6%, in line with the whole-market average (5.0%). The operating margin is 7.5%. The debt ratio is 1286.7%, 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 | $8.2B | $9.1B | $10.1B | +11.53% ↑ faster |
| Operating profit | $700.6M | $727.0M | $760.4M | +4.58% ↑ faster |
| Net profit | $502.7M | $488.6M | $425.0M | -13.01% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $8.2B | $9.1B | $10.1B |
| Operating profit | — | — | $700.6M | $727.0M | $760.4M |
| Net profit | — | — | $502.7M | $488.6M | $425.0M |
| Revenue CAGR | 2-yr avg 11.17% | ||||
Revenue rose 11.5% year over year (2023 ₩12.4 trillion → 2024 ₩13.7 trillion → 2025 ₩15.3 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 4.6% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 11.2%. The two-year revenue CAGR is 11.2%. In the most recent quarter (Q1 2026), revenue was 90.3% 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.
- Revenue grew 11.5% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-12EarningsQ1 2026 provisional operating results (fair disclosure) — consolidated net profit ₩381.6 billion (up about 29% year over year), operating profit ₩480.8 billion.A sign that net profit, which had declined for three years, has turned to recovery. New protection contracts, investment income, and subsidiary earnings contributed evenly, which is positive for the direction of earnings. Source
- 2026-05-12IRQ1 earnings conference call — flagged that the in-force CSM balance grew net and a full-year net increase in CSM is possible, and reaffirmed that a dividend resumption comes only after reform of the surrender-value reserve system.Rebuilding the future-earnings reservoir (CSM) is favorable for mid-term profit. However, dividend normalization hinges on the system reform, so the timing of shareholder returns remains uncertain. Source
- 2026-04-28IRNotice of IR session — pre-announcement of the Q1 earnings briefing.A communication channel ahead of the earnings disclosure. Regularizes results-and-strategy communication with investors. Source
- 2026-05-29FilingQ1 2026 quarterly report filed (as of March 2026).A periodic filing that finalizes the provisional results. A basis for confirming detailed financials and segment results. Source
- 2026-04-07UpdateLarge-holding status report filed (general).A disclosure of a change in a major stake. A reference factor on the governance and supply-demand side. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated net profit | 381,582 | approx. ₩381.6 billion | Confirmed | link |
| Q1 2026 operating profit | 480,782 | approx. ₩480.8 billion | Confirmed | link |
| Dividend status (dividend per share) | DPS = (null) | 2 | Confirmed | link |
| Full-year 2026 earnings direction (company's official outlook) | self-estimate forward net profit approx. 6,800 | CSM | Unverified | link |
Recent filings
- 2026-05-29PeriodicQuarterly report (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-12EarningsFair-disclosure notice
- 2026-04-28Disclosure
- 2026-04-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-14Disclosure
- 2026-04-14Disclosure
- 2026-04-07OwnershipOwnership-change filing
- 2026-04-03OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31PeriodicAnnual business report (amended)
📖 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.