September 30, 2022
  • September 30, 2022

Shares of non-life insurance companies fall as floods damage vehicles

By on August 10, 2022 0

Stalled cars, which had been submerged by the heaviest rainfall of more than 100 millimeters per hour in 80 years on the night of Aug. 8, 2022, block a street in southern Seoul on the morning of Aug. 9.  (Yonhap)

Stalled cars, which had been submerged by the heaviest rainfall of more than 100 millimeters per hour in 80 years on the night of Aug. 8, 2022, block a street in southern Seoul on the morning of Aug. 9. (Yonhap)

SEOUL, August 10 (Korea Bizwire)While a large number of vehicles suffered water damage due to heavy rains that hit Seoul and surrounding areas Monday night, stock prices of non-life insurance companies fell the next day.

Shares of Lotte Insurance closed at 1,740 won on Tuesday, down 1.97% from the previous trading day.

Shares of other non-life insurance companies, including Heungkuk Fire & Marine Insurance, DB Insurance, Samsung Fire & Marine Insurance, Hanwha Non-Life Insurance and Hyundai Marine & Fire Insurance fell 1.90%, 1 .85%, 1.55%, 1.17% and 0.88%, respectively.

In contrast, shares of car rental and used car companies such as K Car, SK Rent-A-Car and Lotte Rental jumped 6.34%, 3.88% and 2.65%, respectively. .

As of Tuesday, major non-life insurance companies received more than 3,000 claims for vehicle damage resulting from torrential rains, and those reports continue to rise.

Water damage to vehicles is one of the factors having a direct impact on the deterioration of the motor loss ratio of non-life insurance companies.

“Damage to vehicles caused by heavy rain would lead to an increase in insurance claims,” ​​said Kang Seung-geon, a researcher at KB Securities.

“Given that non-life insurance companies have maintained a low level of claims since the COVID-19 outbreak, the increase in the number of vehicle damages will inevitably have a negative impact on their performance in the third quarter.”

JS Shin ([email protected])