Report

Hanwha Life Insurance (088350.KS): Moderate 4Q17 results without one-offs

  • -  Hanwha Life Insurance reported a 4Q17 net loss of KRW7.6bn on a parent basis, missing the consensus which projected a KRW65bn profit. However, the weaker-than-expected result was mainly due to: 1) KRW100bn in advance provisioning; and 2) a one-off labor cost of KRW28bn. Without these one-offs, net income would have come to KRW95bn, helped by the writeback on policy reserve for variable insurances amid interest rate hikes.

    • -  A steadily improving loss ratio combined with the writeback on policy reserves for variable insurances suggest continued earnings improvement in 2018. We maintain BUY and our target price of KRW9,500.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Jin Sang Kim

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