AM Best affirms Hanwha General Insurance’s A financial strength rating and “a” issuer credit rating with stable outlook

AM Best affirmed Hanwha General Insurance Company Limited’s Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of “a” (Excellent), both with a stable outlook. The agency said the ratings reflect the South Korean insurer’s strong balance sheet strength, adequate operating performance, neutral business profile, appropriate enterprise risk management and support from parent Hanwha Life Insurance Co., Ltd. HGI’s risk-adjusted capitalization remained at the strongest level under Best’s Capital Adequacy Ratio, including credit for hybrid securities, even as capital and surplus fell moderately at year-end 2025 due to accumulated other comprehensive income movements tied to interest-rate changes and a discount-rate cut under regulatory guidelines. AM Best said HGI has responded with subordinated bond issuance, asset-liability management and reinsurance, while adjusted debt leverage rose to 22.9% after subordinated bond issuance in 2025 and coverage remained adequate. The insurer posted a consolidated return on equity of 10.3% and a combined ratio of 96.2% on a net/net IFRS 17 basis in 2025. AM Best said long-term insurance revenue grew at a double-digit rate, though profitability in that line weakened amid higher medical indemnity claims and competition. HGI held about 7% market share by gross insurance service revenue in 2025, ranking as South Korea’s sixth-largest non-life insurer.