Insurers in the Inca Financial Alliance Rejoice with Increased Valuation Gains and New Contracts

Insurance companies that have invested in Inca Financial Services are celebrating substantial valuation gains and increased new contract numbers. 

Insurance companies that have invested in Inca Financial Services are celebrating substantial valuation gains and increased new contract numbers. Major insurers such as DB Insurance, Meritz Fire & Marine Insurance, Hanwha General Insurance, and Hanwha Life Insurance have seen their share values rise significantly since going public, with valuation gains in the hundreds of billions. Additionally, these companies have experienced significant improvements in new contract volumes due to their partnerships. This blog post explores the results of these investments and their positive impacts.

1. Valuation Gains Boost Insurer Profits

In the first half of this year, the valuation gains for insurers investing in Inca Financial Services have surged. According to the Financial Supervisory Service's electronic disclosure system, DB Insurance, Meritz Fire & Marine Insurance, Hanwha General Insurance, and Hanwha Life Insurance have collectively realized valuation gains totaling 35.21 billion KRW, more than tripling their initial valuation gains of 9.69 billion KRW.

DB Insurance recorded the highest return on investment at 308.7%. It purchased a 4.29% stake in Inca Financial Services for 2.93 billion KRW on March 4, 2022, resulting in a valuation gain of 12 billion KRW. Hanwha General Insurance also saw a high return rate of 286.7%. It acquired a 4.36% share in Inca Financial Services for 3.11 billion KRW on August 30, 2021, with valuation gains reaching 12.2 billion KRW, nearly quadrupling its initial investment. Meritz Fire & Marine Insurance and Hanwha Life Insurance also saw their valuation gains increase by almost three times.

2. Increase in New Contracts and Partnership Benefits

The benefits of the insurers’ investments extend beyond valuation gains, as they have also experienced significant increases in new contracts. The number of insurance products sold by Inca Financial Services saw substantial growth before and after the equity investments. For instance, Meritz Fire & Marine Insurance’s sales grew from 99,814 contracts in 2021 to 180,183 contracts in 2023, an 80.5% increase. Hanwha General Insurance’s sales rose by 153.1% from 24,553 contracts in 2021 to 62,144 contracts in 2023. Similarly, DB Insurance’s sales increased by 32% from 122,154 contracts to 161,402 contracts, and Hanwha Life Insurance’s sales more than doubled from 2,671 contracts to 7,799 contracts.

These increases in new contracts demonstrate the tangible benefits of the partnership with Inca Financial Services. An industry insider noted, “Insurance companies’ investments in Inca Financial Services represent a win-win strategy, and investment in high-quality GAs is expected to rise further.”

Investments in Inca Financial Services have proven to be highly beneficial for the insurers involved, not only in terms of substantial valuation gains but also in increasing new contract volumes. This success highlights the positive outcomes of the collaboration between insurers and GAs. As the partnership grows, it is anticipated that both market competitiveness and benefits for consumers will continue to improve.