Lotte Non-Life Insurance롯데손해보험

Shinhan Financial Group's agreed purchase of a 77% stake lifts Lotte Non-Life Insurance's profile, while recent profit has been weak.

Lotte Non-Life Insurance is a Korean non-life insurer whose main business is long-term insurance, and it is now moving toward control by Shinhan Financial Group. The company posted a net profit of ₩16.5B over the trailing twelve months to H1 2026, with a small operating loss of ₩21.9B and a high leverage ratio. Its shares closed at ₩2,530 on 20 October 2026, up 31% over one year but well below the 52-week high of ₩3,280.

What stands out

• Shinhan Financial Group reported acquiring shares worth ₩693.3B, taking its stake to 77%, with a reported ₩700B total investment; news coverage raised the possibility of an additional capital increase.
• Trailing profit is thin: operating income was negative at about -₩21.9B and ROE was 1.8%, compared with ₩64.7B operating income and ROE of 7.3% for 2025.
• Valuation is high against peers on earnings: P/E is 47.7 versus a 2025 year-end P/E of 10.5, while P/B is 0.8 and the dividend yield is 0%.
• Free cash flow was negative at about -₩564B over the trailing period, and liabilities were about 12.7 times equity, a figure the data does not explain further.
• Recent filings include several 5%+ holding reports and a response to a news report and an exchange inquiry about a price move, but the data does not say what these covered.

What to watch

• Whether Shinhan completes the acquisition and whether any additional capital increase is announced, as covered in the news reports.
• The next periodic filings and any further responses to rumours or exchange inquiries, which the data does not detail.
• Earnings trend: the trailing period shows an operating loss, and the data does not include revenue figures to show the underlying business trend.