Fitch ups Hanwha Life to A+ with stable outlook

Fitch Ratings upgraded Hanwha Life Insurance's rating to A+ from A, with a stable outlook, citing the South Korean insurer’s strong financial footing and solid profitability,

“The upgrade reflects Hanwha Life’s strong capital position, underpinned by a substantial contractual service margin and strategic issuance of additional capital securities,” Fitch said Thursday, adding the firm's financial leverage remained sound despite multiple capital issuances.

Fitch highlighted Hanwha Life’s steady earnings performance, driven by a focus on high-margin, protection-type insurance products designed to reduce income volatility from capital-market swings.

The agency also pointed to the insurer’s favorable corporate profile, supported by its exclusive general agency subsidiary, Hanwha Life Financial Service, the largest general agency in Korea with over 31,000 agents.

“Our assessment reflects Hanwha Life's solid brand franchise, strong distribution capability and substantial operating scale compared with other life insurers in Korea,” Fitch said. Hanwha Life is the nation’s second-largest life insurer by premium income.

The ratings agency said Hanwha Life’s proactive risk control stood out amid heightened market volatility, noting the firm has preemptively mitigated risks related to overseas investments and actively managed its asset-liability profile in anticipation of interest rate cuts.

Fitch also flagged the company’s ongoing overseas expansion as a positive, citing its efforts to diversify geographically through acquisitions.

Last year, Hanwha Life posted a consolidated net profit of 866 billion won ($618 million), up 5 percent on-year, while its contractual service margin — a key gauge of an insurer’s profitability — reached 9.1 trillion won.

“Fitch’s upgrade affirms market confidence in our stable financial foundation, profitability and long-term asset-liability management strategy,” a Hanwha Life official said. “We expect it will further strengthen trust among policyholders and investors in and out of Korea.”