Shinhan Financial Investment maintained its target price of KRW 34,000 and its investment opinion of "buy", saying it is preparing for IFRS17 (New International Financial Reporting Standards) as a strategy to expand sales of new contracts for Meritz Fire & Marine Insurance.
Shinhan Financial Investment said, "Operating profit of 138.1 billion won and net profit of 100.4 billion won are expected in the fourth quarter, and long-term risk damage rate will rise slightly to 96.8%.".
"Meritz Fire & Marine Insurance has implemented the with corona policy since November, but in the short term, expectations for maintaining and strengthening the status quo are valid rather than easing the distance," Shinhan Investment said. "The increase in sales of new contracts at the end of the year is expected to lead to accelerated inflow of long-term risk insurance premiums.".
"The reorganization of the planner's fee system is expected to be limited to the past level of bleeding competition, but the expansion of C (cost) is inevitable in the process of increasing Q, and there is a possibility that much of the costs delayed to next year will be reflected due to the lack of restrictions on the payment of fees for the second year," Shinhan Investment added.
Shinhan Financial Investment explained, "A positive approach to stable CSM after the introduction of IFRS 17 is needed.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
