Hanwha Life expects earnings despite sluggish 2Q earnings (Shinhan Financial Investment)

Shinhan Financial Investment said on the 30th that Hanwha Life Insurance performed less than market expectations in the second quarter, but still holds the charm of equity value such as K-Bank and Payco.

The target stock price remained at 4,600 won and investment opinion 'buy'.

"Hanwha Life Insurance's provisional operating loss in the second quarter turned to a deficit year-on-year to KRW 128.2 billion," Shinhan Investment said. "Net profit in the second quarter also fell 55.8% year-on-year to KRW 56.6 billion, below market expectations of KRW 62.4 billion.".

This is due to the decrease in the amount of variable insurance guarantee reserves from KRW 160 billion last year to KRW 17 billion this year.

Shinhan Financial Investment explained, "The loss rate was 82.8%, up 9.2% points from the same period last year, and the death insurance premium increased 16.6% over the same period to 500.7 billion won.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com