Lotte Sonbo "Enhancing Shareholder Value Through Active Shareholder Return Policy"

Lotte Insurance declared at the shareholders' meeting held on the 20th that it will actively pursue shareholder return policies with the goal of maximizing shareholder value.

[Asia Economy Reporter Oh Hyung-gil] Lotte Insurance declared at the shareholders' meeting held on the 20th that it will actively pursue shareholder return policies with the goal of maximizing shareholder value.

At the shareholders' meeting, Lotte Insurance appointed Jeong Jang-geun, CEO of JKL Partners, as an outside director, and approved the financial statements and the limit on directors' remuneration as originally proposed.

Choi Won-jin, CEO of Lotte Insurance, stated the management strategy and vision for this year: "By significantly reducing losses through long-term loss ratio improvement and automobile insurance rebalancing, we will increase profits by enhancing the core competitiveness of the insurance business and focus on high intrinsic value products to drive strong growth."

He added, "Through thorough risk-adjusted performance and duration management, we will maintain stable investment returns with a mid- to long-term asset management perspective," emphasizing, "We will never use asset management to meet short-term accounting profits."

He also said, "Although the gross written premium in 2020 decreased by 11.6% year-on-year to 2.1577 trillion KRW, we will strengthen our fundamentals to achieve operating profits of 113.5 billion KRW in 2020, 142.7 billion KRW in 2021, and 186.7 billion KRW in 2022."

CEO Choi explained that there is currently no distributable profit under the Commercial Act, so dividends cannot be paid, but added, "If distributable profits arise this year, we will consider all possible means such as share buybacks and dividends to maximize shareholder value and share the fruits of growth with our shareholders."

A Lotte Insurance official explained, "Since the change of the major shareholder to JKL Partners, profitability and growth potential have greatly improved, and we will strengthen communication with the capital market by regularly holding lead underwriter investor relations meetings so that this can be properly reflected in the company's stock price."

This content was produced with the assistance of AI translation services.