Fitch upgrades Hanwha Life’s credit rating to A+ with stable outlook

Hanwha Life Insurance’s headquarters in Seoul / Courtesy of Hanwha Life Insurance

Fitch Ratings, a major global credit rating agency, has upgraded Hanwha Life Insurance’s rating from A to A+, reflecting the firm’s improved profitability following its adoption of International Financial Reporting Standards 17 (IFRS 17) in 2023, as well as its stable financial health and strong risk management capabilities, the insurer said Friday.

The upgrade means that the outlook for the firm's rating has been revised from "positive" to "stable," reflecting expectations that the insurer will maintain financial soundness over the medium to long term.

Fitch assessed that Hanwha Life’s focus on building a portfolio centered around high-margin protection-type products helped strengthen both profitability and capital adequacy.

The insurer’s strategy for overseas expansion, along with a stable sales network supported by competitive distribution channels and a strong brand image, also received favorable evaluations.

Fitch further cited the company’s rebalancing toward long-term bonds in anticipation of potential interest rate cuts, as well as its proactive asset-liability management, as evidence of sound risk management.

“The Fitch upgrade reflects market confidence in our stable financial foundation, profitability and asset-liability management strategy,” a Hanwha Life official said. “We expect this will boost trust among policyholders and investors.”

In March, the insurer also received top credit ratings from Korea’s three major agencies.