Key Takeaways
- • Mirae Asset Life Insurance posted a consolidated third-quarter net loss of 33.868 billion won (approximately $25.4 million), reversing from a net profit of 49.756 billion won a year earlier, according to the Financial Supervisory Service's electronic disclosure system.
- • Application of the Financial Supervisory Service's actuarial assumption guidelines reduced insurance profit by 70.7 billion won (approximately $53.0 million), the largest single driver of the loss.
- • Alternative investment valuation losses and market volatility pushed investment results to a 9.2 billion won loss in the quarter.
- • Excluding the regulatory change, insurance profit rose to 125.2 billion won, and held CSM grew 12.7% to 2.3205 trillion won, with health and accident insurance driving new business.
- • The K-ICS solvency ratio fell 29.4 percentage points to an estimated 147.3%, while cumulative January-September net profit fell 70.1% to 37.495 billion won.
Summary
South Korea's Mirae Asset Life Insurance (085620) swung to a consolidated net loss of 33.868 billion won (approximately $25.4 million) in the third quarter, compared with a net profit of 49.756 billion won in the same period last year and a net profit of 17.97 billion won in the prior quarter. According to the Financial Supervisory Service's electronic disclosure system, third-quarter pre-tax loss came to 44 billion won and operating loss to 43.1 billion won, against operating profit of 61.8 billion won a year earlier. Third-quarter revenue rose 20.6% on-year to 1.5132 trillion won (approximately $1.1 billion).
The primary driver was the adoption of the Financial Supervisory Service's actuarial assumption guidelines, which reduced insurance profit by 70.7 billion won (approximately $53.0 million). Valuation losses on alternative investment assets, alongside increased financial market volatility, drove investment results to a 9.2 billion won (approximately $6.9 million) loss. The company characterized these as one-off factors. Excluding the regulatory change, insurance profit came to 125.2 billion won (approximately $93.8 million), above 117.9 billion won a year earlier.
On a cumulative basis, January-September consolidated net profit fell 70.1% to 37.495 billion won (approximately $28.1 million), pre-tax profit fell 72.3% to 45.3 billion won, and operating profit fell 70.5% to 48.963 billion won. Cumulative revenue rose 104.8% to 8.0889 trillion won.
The company's contractual service margin (CSM), a measure of expected future insurance profits, reached 2.3205 trillion won at quarter-end, up 12.7% from year-end 2025. Cumulative new business CSM rose 3.7% to 411.1 billion won, with health and accident insurance contributing 348.9 billion won, up 10.6%, and an 84.9% share of the total. Variable insurance reserves rose 10.8% to 14.194 trillion won.
The K-ICS solvency ratio was estimated at 147.3% at quarter-end, down 29.4 percentage points from year-end, a decline attributed to higher liability valuations under the new assumptions. Subsidiary Mirae Asset Financial Service posted cumulative pre-tax profit of 7.6 billion won, up 44.1%. Because the guidelines apply industry-wide, other insurers may report similar one-off effects. A company official said held CSM was steadily increasing on the back of health-focused new business and pledged to strengthen loss-ratio management and asset-liability management.
The primary driver was the adoption of the Financial Supervisory Service's actuarial assumption guidelines, which reduced insurance profit by 70.7 billion won (approximately $53.0 million). Valuation losses on alternative investment assets, alongside increased financial market volatility, drove investment results to a 9.2 billion won (approximately $6.9 million) loss. The company characterized these as one-off factors. Excluding the regulatory change, insurance profit came to 125.2 billion won (approximately $93.8 million), above 117.9 billion won a year earlier.
On a cumulative basis, January-September consolidated net profit fell 70.1% to 37.495 billion won (approximately $28.1 million), pre-tax profit fell 72.3% to 45.3 billion won, and operating profit fell 70.5% to 48.963 billion won. Cumulative revenue rose 104.8% to 8.0889 trillion won.
The company's contractual service margin (CSM), a measure of expected future insurance profits, reached 2.3205 trillion won at quarter-end, up 12.7% from year-end 2025. Cumulative new business CSM rose 3.7% to 411.1 billion won, with health and accident insurance contributing 348.9 billion won, up 10.6%, and an 84.9% share of the total. Variable insurance reserves rose 10.8% to 14.194 trillion won.
The K-ICS solvency ratio was estimated at 147.3% at quarter-end, down 29.4 percentage points from year-end, a decline attributed to higher liability valuations under the new assumptions. Subsidiary Mirae Asset Financial Service posted cumulative pre-tax profit of 7.6 billion won, up 44.1%. Because the guidelines apply industry-wide, other insurers may report similar one-off effects. A company official said held CSM was steadily increasing on the back of health-focused new business and pledged to strengthen loss-ratio management and asset-liability management.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.