S&P turns Hanwha view to stable

S&P said it revised its rating outlook on Hanwha General Insurance Co. Ltd. to stable from negative. The agency also affirmed its A long-term issuer credit on HGI, the property and casualty insurance subsidiary of the Hanwha insurance group. The group includes Hanwha Life Insurance Co. Ltd. (HLI) and HGI.

“The outlook revision reflects our view that Hanwha insurance group's improving earnings will strengthen its capacity to service its financial obligations over the next two years,” S&P said in a press release.

The agency noted the group will probably benefit from rising interest rates in Korea.

“Rising interest rates will support the group's investment returns and help reduce potential reserve provisioning, in our view. Along with a gradual economic recovery, we forecast Korea's policy rate will rise to 1.5% by the end of 2022 from 0.75% at present,” S&P said.

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