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Lotte Insurance’s operating loss of 20.8 billion won last year. This is the effect of recognizing 159 billion won as a one-time asset damage arising from aircraft, overseas real estate, and SOC investment assets due to a novel coronavirus infection (Corona 19) in the fourth quarter of last year.
According to Lotte Insurance on the 15th, the cumulative operating profit of last year improved by 50.1 billion won from -70.7 billion won in 2019.
Until the third quarter of last year, the company achieved operating profit of 97.8 billion won, but last year’s operating profit was converted to a loss according to accounting regulations requiring impairment of assets under management to be recognized in operating income at the end of the year.
Last year’s loss ratio and project cost improved to 147.6 billion won and 83.8 billion won, respectively, compared to 2019. However, investment income lost 181.6 billion won compared to the previous year.
Lotte Insurance’s insurance operating profit last year was -21.1 billion won, a 51.3% improvement from 2019 (-4347 billion won).
Lotte Insurance’s management goal is to increase the embedded value after the change of major shareholder in 2019. To this end, the insurance portfolio has been reorganized to significantly expand long-term insurance, halted long-term savings insurance, and reduced auto insurance.
As a result, long-term guarantee insurance recorded sales of 1.5 trillion won, up 16.9% year-on-year, and long-term savings-type insurance and auto insurance sales fell 46.5% and 46.1% from the previous year, respectively. In the process, the total sales decreased by 8.4% compared to the previous year to 2,234.4 billion won.
An official from Lotte Insurance said, “Even though we recognized a large-scale one-time asset damage due to Corona 19, we were able to drastically reduce our deficit compared to the previous year by improving insurance operating profits.” , “We will do our best to achieve the guidance operating profit announced on this day (147.9 billion won in 2021, 161.8 billion won in 2022).”
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