메리츠금융지주 · MERITZ FINANCIAL GROUP INC.
| Revenue | ₩43.04T |
|---|---|
| Operating income | ₩3.15T |
| Net income | ₩2.35T |
| Free cash flow | ₩-7.18T |
| Operating margin | 7.3% |
| Net margin | 5.5% |
| Return on equity | 20.6% |
| Period | TTM 2025-09-30 |
OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Compelling valuation and capital returns outweigh manageable but real earnings-volatility risks.
Buy: Meritz Financial delivered strong 1Q26 earnings of KRW 680.2 billion, up 9.6% year over year, with a 25.4% ROE, while Securities net income rose 30.2% standalone and the shares trade at 6.9x forward PER with a stated 14.6% buyback-and-cancellation yield. The main tension is earnings quality: insurance profit fell 7.0%, Securities benefited from favorable markets and provision reversals, and the still-unquantified 2Q regulatory assumption changes create near-term uncertainty.
- Shareholder Returns
- Fire Marine Insurance
- Securities Equity Exposure
- Insurance Regulation
- Real Estate Exposure
- Moum Platform
Near term
2Q26 results will reveal the impact of fully reflecting revised loss-ratio, expense, and simplified-insurance assumptions; management expects minimal impact but has not quantified it.
Securities earnings may remain strong if domestic equities, IPO activity, and trading conditions stay favorable, but the quarter included provision reversals and increased equity exposure.
The KRW 700 billion treasury-share trust is being deployed, with KRW 146.1 billion of purchases completed by end-April, supporting near-term per-share value.
Fire & Marine’s negative KRW 8.8 billion E/A variance could remain volatile if respiratory claims and targeted cancer-treatment utilization stay elevated.
Longer term
The group’s capital-return case remains unusually strong, supported by a 25.4% ROE, rising BPS, ongoing buybacks, and management’s 180% K-ICS target versus a 150% internal stress minimum.
Fire & Marine is gaining GA-channel share while avoiding low-profitability business; GA health-insurance new sales rose 30% year over year in 1Q, but market contraction and year-end commission-system changes could limit growth.
Securities is deliberately expanding proprietary domestic and overseas equity investments and venture exposure, potentially raising structural earnings power but also increasing sensitivity to market drawdowns.
MOUM and the Webull-linked omnibus account could improve foreign-investor access and retail engagement, but the proposed AI/community differentiation is not yet proven and faces intense brokerage competition.
Real-estate exposure of KRW 29.6 trillion remains a monitoring point despite 91% senior-tranche exposure, approximately 47% average LTV, completion guarantees, and a 1Q net provision reversal.
Red flags
Management could not provide a precise estimate for the 2Q regulatory assumption changes because measurement remains in progress; the claim that the impact will be minimal is not independently quantified.
Securities’ strong quarter included provision reversals, equity-market gains, and a larger proprietary equity book, making normalized earnings less certain than headline growth suggests.
Fire & Marine’s investment profit benefited from approximately KRW 28 billion of FVPL valuation and disposal gains and partial provision reversals, while insurance profit declined and E/A variance turned negative.
The strategy of increasing equity investments across domestic, overseas, venture, and strategic-technology assets may improve returns but increases mark-to-market and concentration risk during a market reversal.
Auto insurance remains loss-making as accident frequency and average claim severity rise, while long-term health-insurance profitability faces industry-wide assumption normalization and regulatory pressure.
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest ANNUAL · 2026-04-06
- Operating Cf Burn
Red flags
- Operating Cf Burn — Negative operating cash flow
Earnings transcripts
- Issuer IR
1Q26 Earnings Result — 1Q26_Transcript_ENG.pdf
MERITZ FINANCIAL GROUP INC.
- Issuer IR
2025 Earnings Result — 2025_Transcript_ENG.pdf
MERITZ FINANCIAL GROUP INC.
- Issuer IR
3Q25 Earnings Result — 3Q25_Transcript_ENG.pdf
MERITZ FINANCIAL GROUP INC.
- Issuer IR
1Q25 Earnings Result — 1Q25_Transcript_ENG.pdf
MERITZ FINANCIAL GROUP INC.
- Issuer IR
2Q25 Earnings Result — 2Q25_Transcript_ENG_F.pdf
MERITZ FINANCIAL GROUP INC.
- Issuer IR
2024 Earnings Result — 2024_Transcript_ENG.pdf
MERITZ FINANCIAL GROUP INC.