Hanwha Life Insurance (HLINSU)

Hanwha Life’s current credit quality can be assessed as that of a highly rated insurance credit positioned in the upper tier of Korean life insurers. Domestic AAA ratings, Moody’s A1, Fitch A+, S&P A, FY2025 standalone total assets of KRW 125.8 trillion, FY2025 consolidated net income of KRW 836.3 billion, new business CSM of KRW 2.0663 trillion, CSM stock of KRW 8.7137 trillion and Q1 2026 consolidated net income of KRW 381.6 billion support the issuer credit profile. This is an initial assessment based on official Financial Highlights, published articles and the SGX Offering Circular. Insurance service results, investment-asset breakdown, OCI, and K-ICS eligible / required capital should be rechecked in detail in the FY2025 annual report. As of 14 May 2026, the direction of credit quality is best viewed as stable to awaiting confirmation of gradual improvement. Q1 2026 earnings improvement is positive, but given the FY2025 standalone earnings decline and K-ICS of 157%, the pace of improvement should not be overestimated.

The supports for issuer credit are clear. Hanwha Life is a leading issuer in the Korean life insurance market, not a weak small or midsized insurer or a financial company undergoing restructuring. Its long operating history, brand, distribution power, high official ratings, CSM-generation capacity, ALM management and access to foreign-currency capital markets support the confidence of policyholders and bond investors. The product shift toward protection-type insurance is also consistent with improving profitability and future earnings stock under IFRS 17. The distribution model centred on Hanwha Life Financial Service is an important franchise asset that differentiates the company from other major life insurers.

The main constraints are capital and the quality of insurance earnings. K-ICS of 157% is within a safe range, but it is difficult to view as extremely thick for a highly rated major life insurer. The decline in FY2025 standalone net income leaves some caution around the earnings stability of the insurance company itself, even if increased medical utilisation and the prior-year reversal explain part of the decline. Rapid growth in protection-type insurance is positive for CSM, but it also increases future claims-ratio, lapse, sales-quality and assumption-change risks. The financial leverage and high-risk asset ratio highlighted by Moody’s are also important for capital-securities investors.