The financial performance of several non-life insurance companies is expected to improve in the second quarter of this year, as the motor loss rate decreases in the wake of the coronavirus pandemic.
The combined net profit of the four listed companies namely, Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, and Hyundai Marine & Marine Insurance, is estimated to reach KRW5,268bn ($4.5bn) for the second quarter of this year, up 14.7% from the corresponding period last year, reported Hankooki.com quoting FnGuide, a financial information company.
The estimates for the four major insurers are:
The main factor for the expected improvement in 2Q earnings is auto business, as the use of automobiles decreased due to restrictions imposed due to curb the spread of COVID-19.In addition, the number of patients in non-coronavirus cases decreased, resulting in fewer claims on medical insurance.
Estimated 2Q net profit
Samsung Fire & Marine
Hyundai Marine & Fire
Meritz Fire & Marine
According to the Korea Hospital Association, 142 medical institutions including 20 senior hospitals, 96 general hospitals, and 26 hospital-grade medical facilities were surveyed, and the findings show a fall in the hospitalisation rate as well as in the number of outpatients in April this year.