Lotte Insurance on track to normalize 2021 earnings

Lotte Insurance on track to normalize 2021 earnings

Lotte Insurance headquarters in Seoul / Yonhap

By Lee Min-hyung

Lotte Insurance on track to normalize 2021 earnings

Lotte Insurance CEO Lee Myung-jae

Lotte Insurance is on track to achieve an eye-catching earnings rebound this year on continued efforts to reduce its loss ratio, after having reported deficits for the past two consecutive years.

The mid-tier insurer reported a net profit of 76.8 billion won ($67 million) in the first half of 2021, up 21.2 percent from the previous year.

The non-life insurance arm of Lotte has been desperately seeking to normalize its profitability after JKL Partners took over the company back in October 2019. Amid widening fears that the company could fail to do so by 2021 due to pandemic uncertainties, Lotte Insurance appointed Lee Myung-jae as CEO in March this year.

Lee has placed the firm’s focus on minimizing the loss ratio for its overall business as a top priority in its earnings normalization. And, after just five months in office, the company is set to bounce back in its earnings.

“We have increased our insurance sales on our continued efforts to normalize our product portfolio and have succeeded in reducing the loss ratio,” a company official said.

The total loss ratio of the company reached 91.6 percent as of the end of the first quarter in 2019, but it continued improving to 87.1 percent during the same period in 2021. The firm’s losses are also declining at a gradual pace, reaching 868 billion won as of July 31 this year from 950 billion won two years ago.

Lee endeavored to enhance the company’s risk management capability after taking the leadership post. Under the so-called management goal of “embedded value,” Lotte Insurance garnered efforts to take solid control of risk management in the insurance market, rather than pushing for any short-term sales growth.

“Lotte Insurance reported growth in sales and the risk-based capital ratio in the first half of the year, compared to the year before, due to our efforts to enhance core competitiveness in the insurance industry,” the company official said. “We will thoroughly continue responsible management with the focus on strengthening the embedded value.”

According to data from the non-life insurance industry here, Lotte Insurance was the only non-life insurer among the nation’s 10 largest insurers that succeeded in reducing its car insurance loss ratio in July.

The company’s car insurance loss ratio declined by 9.1 percentage points to reach 85.5 percent in July. This was an outstanding achievement at a time when most top-tier and mid-tier competitors failed to do so and ended up widening their ratios during the same period.

Internet Explorer Channel Network
News Related

OTHER NEWS

Support for 2030 Busan expo bid

Kim Young-ju, the chairman of the Committee for World Expo 2030 Busan, and Chung Man-ki, the former vice trade minister and incumbent head of the Korea Industry Alliance Forum, pose ... Read more »

Hong Sang-soo's 'In Front of Your Face' is about finding romance in the tedious

A scene from the film “In Front of Your Face” / Courtesy of Jeonwonsa Film By Kwak Yeon-soo Like many of his other films, director Hong Sang-soo 26th feature “In ... Read more »

S. Korea unveils 2 upgraded road maps for 2050 carbon neutrality goal

President Moon Jae-in and other officials attend a carbon neutrality committee meeting in Seoul on Monday. (Yonhap)The presidential committee on carbon neutrality on Monday unveiled two upgraded policy road maps, ... Read more »

Gov't to team up with businesses over US pressure on chipmakers

Finance Minister Hong Nam-ki speaks during a meeting on the external economy and security at the government complex in Seoul, Monday. Yonhap Seoul to make final decision on CPTTP entry ... Read more »

Miners and banks ‘soften the blow' for share market, lifting the ASX200 to a slight gain

The Australian share market edged slightly higher on Monday, as mining and financial shares “softened the blow” following concerns of an interest rate hike and weak Chinese data. Local shares ... Read more »

Slideshow | Foreign brokerages raise target of these 11 stocks, do you own any?

The Indian market continued to make the fresh record highs on positive September quarter earnings, better CPI inflation and IIP data. The BSE Sensex and the Nifty touched fresh record ... Read more »

Unification Minister calls for talks to discuss the North's ‘double standard' accusation

Unification Minister Lee In-young speaks during a parliamentary audit of the ministry at the National Assembly on Monday. (Yonhap)Unification Minister Lee In-young on Monday stressed the need for talks with ... Read more »

Ex-Foreign Minister Kang asks for local labor sector's support for her bid for top ILO seat

Former Foreign Minister Kang Kyung-wha speaks with officials of the Federation of Korea Trade Unions at the organization’s office in Seoul on Monday. (Yonhap)Former Foreign Minister Kang Kyung-wha on Monday ... Read more »

Police search Nat'l Assembly in Seoul over bomb threat

The National Assembly (Yonhap)Police and fire officials searched the National Assembly complex in Seoul on Monday after a lawmaker’s office received a bomb threat by phone, officials said Monday. According ... Read more »

S. Korea to raise goal of cutting emissions to 40% by 2030: Moon

(Yonhap)South Korea will reduce its greenhouse gas emissions by 40 percent from the 2018 levels by 2030, sharply raising its previous goal as part of efforts to curb the pace ... Read more »

Opposition pressures Lee Jae-myung at parliamentary audit

Gyeonggi Province Gov. Lee Jae-myung attends the parliamentary audit at the province government office in Suwon, Gyeonggi Province on Monday. The placard reads “recipient of money = culprit, sharer of ... Read more »

US general calls for strong space partnership with S. Korea

This image shows the official poster of the International Aerospace Symposium hosted by South Korea’s Air Force.A top US military official called Monday for strong space cooperation with South Korea, ... Read more »

More K-pop stars sing for webtoon soundtracks

Singer-actor Jinyoung is set to release, “You Said You Don’t Know Love,” a soundtrack for the popular webtoon, “Morning Kiss at Tiffany’s,” on Oct. 21. Courtesy of orangeDmsn By Dong ... Read more »

Casino faces major class action after money laundering allegations revealed

Star Entertainment Group shareholders are forming a class action after alleged inadequacies were exposed in the casino’s systems related to the management of anti-money laundering and counter-terrorism financing risks. Maurice ... Read more »

Air Force chief meets with US officials ahead of major defense exhibition

(Yonhap)South Korean Air Force Chief of Staff Gen. Park In-ho met with a delegation of senior US military and defense officials in Seoul on Monday to discuss bilateral cooperation ahead ... Read more »

S. Korea voices concern over Japan's Fukushima water release plan

This photo, provided by South Korea’s foreign ministry, shows Ham Sang-wook (L), Seoul’s deputy foreign minister for multilateral affairs, speaking with Rafael Grossi (R), director general of the International Atomic ... Read more »

BTS agency to host global audition to recruit talent

Courtesy of Big Hit Music Big Hit Music, the K-pop agency behind BTS and Tomorrow X Together, said Monday it will throw a global audition to launch a next-generation boy ... Read more »

Moon orders plan for booster shots for people who receive J&J COVID-19 vaccine

President Moon Jae-in is administered a COVID-19 vaccine booster shot at the National Medical Center in Seoul last Friday. (Yonhap)President Moon Jae-in on Monday ordered officials to swiftly set up ... Read more »

POSCO chief to lead World Steel Association for 3 years

By Kim Hyun-bin POSCO Group Chairman Choi Jeong-woo has been appointed to be part of the executive board of directors for the World Steel Association, and is scheduled to become ... Read more »

S. Korean, US, Japanese intelligence chiefs to discuss N. Korea in Seoul: source

These file photos from May 9, 2021, show, from left to right, Avril Haines, the US director of national intelligence; Park Jie-won, head of South Korea’s National Intelligence Service; and ... Read more »

Market LIVE Updates: SGX Nifty indicates a flat to positive start for the Indian indices

Read more »

Nearly 90 cities, counties in danger of extinction due to population decrease

gettyimagesbank Nearly 90 small cities and counties that are in danger of extinction due to population decrease have been designated as “depopulation areas” for intensive support from the central government, ... Read more »

89 cities, counties, wards designated as depopulation areas

Minister of the Interior and Safety Jeon Hae-cheol announces the designation of 89 cities, counties and wards as depopulation areas in a news conference in Seoul on Monday. (Yonhap)Nearly 90 ... Read more »

Seoul closely monitoring N. Korean leader's increased messages toward US: ministry

North Korean leader Kim Jong-un speaks at a lecture to commemorate the 76th founding anniversary of the ruling Workers’ Party last Sunday, in this photo released by the North’s official ... Read more »

New virus cases hit 3-month low

Health workers take samples for COVID-19 at a makeshift testing center near Seoul Station in central Seoul, Oct. 18. Yonhap South Korea’s daily coronavirus cases dropped to the lowest level ... Read more »

Asia jittery ahead of China GDP; oil high

Asian shares are on edge ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world's second-largest economy even as ... Read more »

Facebook to hire 10,000 people in EU to build 'metaverse'

Attendees walk past a Facebook logo during Facebook’s F8 developer conference in San Jose, Calif., April 30, 2019. Facebook on Monday announced plans to hire 10,000 people in the European ... Read more »

S. Korea to start deploying new hand-held mine detector next year

This image, provided on Monday by the Defense Acquisition Program Administration, shows a newly developed hand-held mine detector. (Defense Acquisition Program Administration)South Korea plans to start deploying a new military ... Read more »

Lee to appear at parliamentary audit amid snowballing development corruption scandal

This photo, provided by the National Assembly’s photo press corps, shows Gyeonggi Gov. Lee Jae-myung speaking at the National Assembly in Seoul last Friday. (National Assembly Photo Press Corps)Gyeonggi Gov. ... Read more »

Busan's Ilgwang Beach becomes outdoor art gallery

“Narratives from the Hadal Zone” (2021) by Kim Kyung-hwa / Courtesy of the artist and Busan Biennale Organizing Committee By Park Han-sol Ilgwang Beach in Busan, one of the many ... Read more »

Key suspect in corruption-laden development scandal detained upon return from US

Nam Wook (C), a key figure in a sprawling land development scandal in Seongnam, Gyeonggi Province, is swarmed by reporters at Incheon International Airport, west of Seoul, on Monday, after ... Read more »

'Squid Game' draws attention to Jeju Island

Actress Jung Ho-yeon as Kang Sae-byeok in Netflix original series “Squid Game” / Courtesy of Netflix By Nam Hyun-woo The popularity of Netflix’s original series “Squid Game” is pushing up ... Read more »

Namkoong Min's fascinating makeover as elite spy agent

Actor Namkoong Min / Courtesy of MBC Lee Ha-nee emerges as rom com queen, creating rare rivalry in Friday-Saturday dramas By Kang Hyun-kyungDrama fans these days are faced with a ... Read more »

Wall St climbs on strong bank results

US stocks have risen as Goldman Sachs was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand. The three major stock indexes were ... Read more »

China to keep up scrutiny of internet sector

This illustration file picture taken in Paris shows the logo of the US social network application Linkedin on the screen of a tablet. Microsoft on Oct. 14 said it will ... Read more »

Choyeon, Eunchae from 'Produce 48' to debut in new girl group bugAboo

K-pop girl group bugAboo / Courtesy of Ateam Entertainment By Dong Sun-hwa Choyeon and Eunchae, who made their names known through Mnet’s audition program “Produce 48” in 2018, will debut ... Read more »

Seoul expresses ‘deep regret' over Kishida's Yasukuni offering

A woman prays in front of a wooden plaque showing the name of Japan’s Prime Minister Fumio Kishida seen with a “masakaki” tree that he sent as an offering to ... Read more »

Tencent increasing investments in Korea amid China regulation

People pass by Tencent’s headquarters in Guangdong, China, on July 12. AFP-Yonhap By Kim Jae-heun China’s IT giant Tencent is investing more into the Korean game sector amid the Chinese ... Read more »

'Work Later, Drink Now' to follow three female friends

Actors Lee Sun-bin, from left, Han Sun-hwa, Jung Eun-ji, and Choi Si-won pose for pictures during the online press conference of the series “Work Later, Drink Now,” Friday. Courtesy of ... Read more »

Hyundai Motor aims to produce its own semiconductors

Hyundai Motor and Kia Corp. headquarters in Seoul / Courtesy of Hyundai Motor Group By Kim Hyun-bin Hyundai Motor Group is taking steps to advance beyond its traditional strength of ... Read more »