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Fitch raises Hanwha Life's credit ratings on firm's strengthened capital position

Published: 09 May. 2025, 15:30

KIM JU-YEON
[email protected]

Hanwha Life's headquarters in Yeouido, western Seoul [HANWHA]

Fitch Ratings on Thursday raised Hanwha Life’s credit ratings in financial strength and default risk to reflect the firm’s strengthened capital position.

The U.S. based credit rating agency bumped up Hanwha Life’s Insurer Financial Strength rating to A+ from A and Long-term Issuer Default rating to A from A-. Fitch’s outlook for the life insurance company remains stable.

Fitch’s scale ranks AAA as highest, down to D, while plus and minus symbols indicate relative standings. Ratings up to BBB are considered investment grade.

The upgrade reflects Hanwha Life’s “strong” capital position supported by substantial contractual service margin from new insurance contracts and its strategic issuance of capital securities, Fitch said.

It also took into account the company’s solid brand standing, distribution capability and operating scale compared to rival life insurers in Korea.

Hanwha Life posted 866 billion won ($618 million) in consolidated net profit last year, thanks to its expansion of core insurance operations and improved performance in customer service, sales and product development by integrating AI and other digital solutions, the company said in a statement on Friday.

“Fitch’s rating upgrade demonstrates that the market has confidence in the company’s stable financial foundation, profitability and its medium- to long-term asset and liability management strategy,” a Hanwha Life official said.

“We expect it to improve our external credibility among policyholders and domestic and international investors,” the official added.

BY KIM JU-YEON [[email protected]]