AM Best Affirms Credit Ratings of Hyundai Marine & Fire Insurance Co., Ltd.

JUNE 18, 2026 08:35 AM (EDT)

AM Best Affirms Credit Ratings of Hyundai Marine & Fire Insurance Co., Ltd.

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FOR IMMEDIATE RELEASE

HONG KONG - JUNE 18, 2026 08:35 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of Hyundai Marine & Fire Insurance Co., Ltd. (HMF) (South Korea). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect HMF's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management.

HMF's risk-adjusted capitalisation is assessed at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). While balance sheet volatility from interest rate movements remains an offsetting factor, HMF's local solvency position rebounded in 2025, mainly due to rising interest rates and efforts to reduce the asset/liability duration gap to mitigate sensitivity to interest rate movements. HMF has good financial flexibility with a proven track record of successfully issuing supplementary capital securities. While the company's adjusted financial leverage is expected to remain within AM Best's positive assessment level, it showed an increase following multiple rounds of subordinated debt issuance in recent years.

HMF's operating performance is assessed as adequate, with a double-digit return-on-equity ratio and a combined ratio of 96.8% (net/net) in 2025, as calculated by AM Best. The company's long-term insurance profitability deteriorated in 2025, attributable to its relatively larger exposure to medical indemnity policies with increased loss ratios, highlighting its sensitivity to such policies. The auto insurance line recorded underwriting losses due to the cumulative effect of base rate cuts, intensified competition and inflationary pressures on claims costs across the industry. Nonetheless, robust investment profits bolstered the overall bottom line in 2025, mainly owing to a large disposal gain on its fair value through profit or loss assets and an increase in its interest income amid a favourable interest rate environment.

HMF remains one of the largest non-life insurers in South Korea, with a stable market share of approximately 17%, in terms of gross insurance service revenue in 2025. HMF maintains a diversified product and distribution channel mix. The company benefits from its solid business relationships with Hyundai conglomerates, including Hyundai Motor Group, which provide a steady source of business for its general insurance line, especially marine insurance.

Negative rating actions could occur if there is a significant deterioration in HMF's balance sheet strength fundamentals. Negative rating actions also could arise if there is a sustained and material deterioration in its operating performance. Positive rating actions could occur if the company's balance sheet strength fundamentals demonstrate sustained improvement although the likelihood of such actions remains limited at this time.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.