Meritz Financial Group’s cumulative net profit for the first three quarters of this year stood at 1,962.1 billion won, a 3.2% decrease from the same period last year. Despite improved insurance underwriting results at its main subsidiary Meritz Fire Insurance and increased net profit at Meritz Securities, the group-wide performance was affected by a decline in investment gains due to heightened volatility in financial markets.
According to Meritz Financial Group on the 11th, the consolidated cumulative net profit for the first three quarters of this year was 1,962.1 billion won, down 64.7 billion won (3.2%) from 2,026.8 billion won in the same period last year. Operating profit over the same period was 2,342.3 billion won, a 7.6% decrease year-on-year. In contrast, revenue surged 95.2% to 4,871.22 billion won. Meritz Financial Group’s total assets as of the end of Q3 were 1,464,973 billion won, an 8.1% increase from the end of last year. Return on equity (ROE) was recorded at 23.5%.
Meritz Fire Insurance posted a standalone cumulative net profit of 1,352.8 billion won for the first three quarters. This represents a 6.8% decrease from 1,451.1 billion won in the same period last year. Profitability in core insurance operations improved. Meritz Fire Insurance’s cumulative insurance underwriting profit for the first three quarters was 1,102.2 billion won, up 7.6% year-on-year. New contract revenue for long-term life and health insurance also increased by 15.6% to 105.6 billion won. Long-term life and health insurance refers to products within the long-term insurance category that cover risks related to human body, life, or health, with a contract period of one year or more. Profitability-focused growth in the long-term insurance segment and improved underwriting results in general and auto insurance contributed to this trend. However, investment gains declined due to increased stock market volatility.
A Meritz Fire Insurance official stated, “Profitability-focused growth in the long-term insurance segment and improved insurance underwriting results strengthened our core competitiveness, driving overall performance.” The official added, “However, investment gains decreased due to factors such as unrealized losses on equity investments resulting from stock market volatility.”
Meritz Securities continued its trend of increasing net profit. Its consolidated cumulative net profit for the first three quarters was 720.5 billion won, a 12.0% increase from 643.5 billion won in the same period last year. However, operating profit decreased by 8.6% to 641.3 billion won. The company maintained solid performance by successfully executing customized structured finance deals for large corporations in its corporate finance division. The asset management division also achieved favorable operational results despite heightened market volatility, while the retail division recorded stable performance.
A Meritz Securities official said, “We will pursue qualitative growth in our retail business based on our expanded customer base and digital platform competitiveness.” The official added, “We will also enhance synergies with our corporate finance and asset management divisions to secure sustainable growth drivers.”
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