Hanwha Life announced on the 9th that global credit rating agency Fitch Ratings has upgraded its credit rating from A to A+.
Fitch expects Hanwha Life to maintain financial soundness in the medium to long term, upgrading the rating from 'A·positive' to 'A+·stable.' Earlier, Hanwha Life had obtained the highest credit rating from the three major domestic credit rating agencies (Korea Credit Rating, Korea Ratings, NICE Credit Rating) in March.
According to Hanwha Life, Fitch made this decision considering Hanwha Life's continuous improvement in profitability (return on equity) and stable financial soundness, as well as its high level of risk management capability following the introduction of the new accounting system (IFRS17).
Fitch analyzed that the establishment of a portfolio centered on high-revenue protection insurance by Hanwha Life is leading to increased profitability and capital soundness.
It also evaluated the stability of the sales organization as high, based on the competitive strength of the channel centered around the 31,000 insurance planners of Hanwha Life Financial Services and its excellent brand image.
Fitch rated highly Hanwha Life's proactive asset-liability management (ALM) sectors, such as efficient management of investment risks and asset rebalancing focused on long-term bonds in anticipation of potential interest rate cuts, as well as the reduction of duration gaps between assets and liabilities.
Previously, Hanwha Life recorded a net profit of 866 billion won on a consolidated basis last year. A Hanwha Life official noted, 'This upgrade by Fitch proves that our stable financial foundation, profitability, and medium to long-term asset-liability management strategy have gained trust in the market,' and added, 'We expect an enhancement in external trust from policyholders and domestic and foreign investors.'