1. What Happened?: TongYang Life’s H1 2025 Performance

TongYang Life recorded stable premium income and solid asset management performance in the first half of 2025. Key financial soundness indicators, including the Risk-Based Capital (RBC) ratio (155.5%), liquidity ratio (477.5%), and NPL ratio (0.14%), are also at excellent levels. Life insurance, particularly death benefits, accounts for 77.1% of total premium income, demonstrating a stable revenue base.

2. Why?: Opportunities and Risks of Joining Woori Financial Group

Joining the Woori Financial Group is expected to present new opportunities for TongYang Life. Synergies within the group and enhanced financial soundness are anticipated. However, investors should carefully consider the following risk factors: the deficit of its subsidiary, TongYang Life Financial Services; increased volatility in foreign exchange rates, particularly from EUR-denominated derivative transactions; and the potential impact of interest rate fluctuations on asset management and policy reserves. Furthermore, increased competition, including the entry of tech companies into the insurance market, could hinder TongYang Life’s growth.

3. So What?: Investment Strategy and Key Points

Consider these key aspects when evaluating an investment in TongYang Life:

  • Strengths: Stable premium income, sound financials, and potential synergies with Woori Financial Group.
  • Weaknesses: Vulnerability to FX and interest rate fluctuations, deteriorating subsidiary performance, and intensifying competition.
  • Opportunities: Potential for business expansion and increased market share following the integration with Woori Financial Group.
  • Threats: Economic slowdown, rising interest rates, and increased FX volatility.

Carefully consider these factors before making any investment decisions.

4. Investor Action Plan

Investors considering TongYang Life should develop the following action plan:

  • Continuously monitor TongYang Life’s financial indicators and business outlook.
  • Track FX and interest rate trends and develop risk management strategies.
  • Analyze competitors and assess TongYang Life’s competitiveness.
  • Develop a long-term investment plan.