汇丰银行-股票保险-korea non-life insurance solid may,loss ratio improvements continue-20170701-hsbc.pdfVIP

1 July 2017   Korea non-life insurance EQUITIES INSURANCE Solid May, loss ratio improvements continue Korea  Risk loss ratio continues to improve on the back of steady risk Sinyoung Park* premium inflows and slowing claims growth Analyst, Korea Financials The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch Regulator’s plan to enhance LAT framework also includes sinyoungpark@ +822 3706 8770 supportive measures * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is  Continue to prefer HMF and Dongbu (both Buy rated), which not registered/ qualified pursuant to FINRA regulations are more leveraged to the long-term re-pricing cycle Passing through the inflection point for long-term risk loss ratio Sector earnings were up 24% y-o-y driven by continued loss ratio improvements across the board on a y-o-y basis (4.3ppt in auto, 1.9ppt in long-term and 16ppt in commercial). Of note, the risk loss ratio improved by 6-7ppt y-o-y at second-tier insurers on the back of steady risk