Business · Markets · 49 mins ago
Meritz Financial profit falls 28% as investment losses weigh
South Korea’s Meritz Financial reported third-quarter net profit of 470.7 billion won, down 28% from a year earlier and 26% below market expectations.
The group’s main insurer, Meritz Fire, was the biggest drag after its investment earnings plunged 88%.
Stock-market valuation losses and provisions for property project-finance risks contributed to about 300 billion won in costs.
Insurance operations were stronger, with insurance profit up 35%, while Meritz Securities’ net profit rose 3%.
Kiwoom Securities kept its 170,000-won target price and buy rating, saying the core businesses remained resilient despite the weak overall result.
Market conditions and risk controls will matter as domestic stocks face a downturn and interest rates rise, making it harder to sustain past profitability.
Meritz Financial Holdings’ third-quarter net income attributable to controlling shareholders fell 28% year on year to 470.7 billion won.
The result was 26% below market expectations, mainly because investment earnings at its core affiliate Meritz Fire & Marine Insurance dropped sharply.
Meritz Fire & Marine’s investment profit fell 88% to 39.4 billion won, with about 300 billion won in costs from market valuation losses and provisions related to property project financing.
Insurance profit at the insurer rose 35%, while Meritz Securities’ net income increased 3% and its net operating revenue rose 34%.
Kiwoom Securities kept its target price of 170,000 won and its buy recommendation, while warning that market conditions and risk management could weigh on future profitability.
- Who
- Meritz Financial Holdings and its affiliates, including Meritz Fire & Marine Insurance and Meritz Securities.
- What
- Third-quarter net income attributable to controlling shareholders fell 28% year on year to 470.7 billion won.
- When
- The third quarter of 2026.
- Where
- Not stated.
- Why
- Investment earnings at Meritz Fire & Marine fell sharply, amid market valuation losses and provisions related to property project financing.
This story does not have two clearly opposing sides.
Meritz Financial Holdings recorded net income attributable to controlling shareholders of 470.7 billion won, down 28% year on year.
Kiwoom Securities maintained its 170,000-won target price and buy recommendation for Meritz Financial Holdings.
- Net income attributable to controlling shareholders
- 470.7 billion won
- Year-on-year net income change
- Down 28%
- Meritz Fire & Marine investment profit
- 39.4 billion won, down 88%
- Meritz Fire & Marine insurance profit
- Up 35%
- Kiwoom Securities target price
- 170,000 won
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