Mirae Asset Life Insurance posted a net loss of 33.9 billion won in the third quarter of this year, swinging to a quarterly loss. The company cited one-off factors stemming from the application of actuarial assumption guidelines and heightened financial market volatility.
According to the Financial Supervisory Service's electronic disclosure system on the 13th, Mirae Asset Life's consolidated net loss for the third quarter was 33.9 billion won. Its operating loss was 43.1 billion won. In the third quarter of last year, it posted an operating profit of 61.8 billion won. Revenue came to 1.5132 trillion won, up 20.58% from a year earlier.
Cumulative results also slipped. Net profit for the first three quarters totaled 37.495 billion won, down 70.1% from the same period a year earlier. Cumulative operating profit was 49 billion won, a decline of 70.5%. Cumulative revenue, on the other hand, swelled 104.8% to 8.0889 trillion won.
The company explained that reflecting the actuarial assumption guidelines presented by the supervisory authorities weighed heavily on third-quarter earnings. Actuarial assumptions are the premises used when valuing insurance liabilities. The change in these assumptions put pressure on results, it said. Heightened financial market volatility was also cited as a one-off factor.
Indicators of future earnings continued to trend upward. The company said its contractual service margin (CSM) has been rising steadily as it expands new contracts centered on health insurance. CSM is a measure that calculates the profit to be generated from insurance contracts in the future at present value. It is used to gauge an insurer's future profitability.
"The expansion of new contracts centered on health insurance is steadily increasing our CSM and building a foundation for future profit," a Mirae Asset Life official said. The official added that the company will steadily strengthen its earnings capacity by managing loss ratios, securing profitability-focused new contracts and bolstering asset-liability management (ALM).