Mirae Asset Life has more than doubled its net profit in the first quarter of this year, thanks to an expansion in protection insurance sales. The company reported improvements in its health insurance product portfolio and continued growth in commission-based businesses such as variable insurance and retirement pensions.
On May 15, Mirae Asset Life announced that its consolidated net profit for the first quarter reached 534 billion won, marking an increase of approximately 115% compared to the same period last year. This growth is attributed to a focus on profitability-driven sales strategies and risk management amid uncertain domestic and international conditions.
Notably, the growth in new contracts for protection insurance was significant. The annualized premium equivalent (APE) for new protection insurance contracts in the first quarter was 1.01 trillion won, a 34.6% increase from the previous year.
The company also saw an increase in its insurance contract margin (CSM), a key indicator of future profitability. The CSM for new contracts in the first quarter was 1.507 trillion won, up 6.8% year-on-year, while the CSM for existing contracts rose to 21.506 trillion won, a 4.5% increase from the end of last year. The CSM for protection insurance increased by 9.7%, and the CSM for health and injury insurance grew by 10.9%.
The revenue structure remained stable, with insurance profit recorded at 7.7 billion won and investment profit at 586 billion won. Total assets were reported at 32.3 trillion won, with equity capital amounting to 24 trillion won.
Commission-based businesses, including variable insurance and retirement pensions, continued to show growth. The reserve for variable insurance in the first quarter reached 13.3 trillion won, a 15.0% increase from the same period last year, while commission income from variable insurance rose by 15.7% to 14.3 billion won. Overall fee-based business performance expanded to 191.7 billion won compared to the previous year.
A representative from Mirae Asset Life stated, "Despite the uncertain domestic and international environment, we focused on improving our product portfolio and risk management to achieve sustainable profit generation. We have achieved stable earnings based on solid fundamentals."
* This article has been translated by AI.
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