Korea's leading insurer Hanwha Life said on Thursday that credit appraiser Korea Investors Service has revised the firm's credit rating from 'AA' to the highest rating of 'AAA' with a stable outlook, reflecting the firm's increased market dominance.
This upgrade follows the enhancement of Hanwha's credit rating to 'AA' just nine months earlier in June of last year.
"Despite challenging economic conditions both domestically and internationally, our industry-leading financial soundness and profitability have been recognized. We hope this upgrade will further bolster the trust of our policyholders and attract both domestic and foreign investors,” Hanwha Life said in a statement.
The credit ratings firm attributed the upgrade to Hanwha's strengthening market position, particularly through the expansion of its sales channels within the general agency market. A general agency refers to an independent firm or contractor that sells insurance products on behalf of an insurance company to selected brokers.
Hanwha's stable profit generation from high-quality new contracts and effective capital ratio management were key factors contributing to the upgraded rating.
"Hanwha Life maintains its leading position in the general agency industry, driven by channel stability through its subsidiary Hanwha Life Financial Services and enhanced market dominance via strategic acquisitions of top GAs,” the Korea Investors Service said in a statement.
The credit appraiser also highlighted that Hanwha Life achieved a contractual service margin exceeding 2 trillion won ($1.37 billion) last year, with a steady influx of new contracts focused on guaranteed insurance products.
Last year, Hanwha Life received upgrades to its credit rating outlook from all three major domestic credit rating agencies — Korea Investors Service (AA+), Korea Ratings (AA+) and NICE Investors Service — as well as global agencies, including Standard & Poor's (A), Moody's (A2) and Fitch (A).
hnpark@heraldcorp.com
