Heungkuk Fire Q1 2026 Swings to Net Loss, Solvency Ratio Slightly Declines... Insurance Profit Improves but Investment Losses Lead to Deficit

Heungkuk Fire reported a net loss of 6.6 billion KRW in Q1 2026, swinging from a profit of 119.6 billion KRW in the same period last year. The loss was primarily driven by an investment loss of -21.8 billion KRW due to derivative valuation losses.
Insurance profit stood at 19.7 billion KRW, down from 59.1 billion KRW a year earlier, though insurance revenue increased to 756.3 billion KRW. Rising loss ratios in auto insurance were a factor.
The K-ICS solvency ratio slightly declined to 195.25% from 196.03% at year-end 2025. Under transitional measures, the ratio is 157.00%, still above the regulatory threshold of 150%, but further decline warrants attention.
Total assets decreased to 11.94 trillion KRW from 12.50 trillion KRW, while total liabilities fell to 11.02 trillion KRW. Total equity increased to 917.1 billion KRW, aided by improvement in other comprehensive income.
On March 31, 2026, the company issued 100 billion KRW in subordinated bonds (23rd series) at a 5.5% coupon (maturing 2036) to enhance financial soundness. Hybrid securities outstanding amounted to 411.3 billion KRW.
No dividends were paid for the third consecutive year, and there are no plans for share buybacks or cancellations. Loss per share was 88 KRW.