汇丰银行-韩国保险业-korea life insurance solid risk margin expansion supports 2q17 earnings-20170810-hsbc.pdfVIP

10 August 2017   Korea Life Insurance EQUITIES LIFE INSURANCE Solid risk margin expansion supports 2Q17 earnings Korea  Korean life insurers reported stronger than expected 2Q17 Sinyoung Park* earnings due to solid risk margin and reserve write-back Analyst, Korea Financials The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch  We see much-reduced risk given elevated market rates and sinyoungpark@ +822 3706 8770 potentially softer regulatory changes… …but stay Hold on Samsung Life (TP KRW120k) and Hanwha * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations Life (TP KRW7k) given limited catalysts and lingering uncertainty Samsung Life (Hold): Solid risk margin and well-defended negative spread Samsung Life reported 2Q17 net profit of KRW380bn, up 15% y-o-y and in line with consensus. Insurance profit grew 19.5% q-o-q and 14.1% y-o-y on the back of