Samsung Life "No Decisions Made on Any Samsung Electronics Shares"

[Asia Economy Reporter Oh Hyung-gil] Samsung Life Insurance is actively pursuing global alternative investments. Regarding the sale of Samsung Electronics shares, it stated that nothing has been decided yet.

On the 13th, Samsung Life CFO Yoo Ho-seok said during the first half earnings announcement, "To respond to the recently changing management environment, we will actively promote new growth businesses such as structural innovation beyond the existing framework, equity investments, and mergers and acquisitions (M&A)," adding, "The scale of investment over the next 10 years will be considerable."

He also said, "Under the newly introduced Solvency II regime, we will be able to maintain a ratio of over 100%," and added, "We plan to utilize capital capacity as investment capital, and even considering dividends, taxes, and surplus accumulation of 0.3 to 0.5 trillion won, we have sufficient investment capacity."

As of the end of June, Samsung Life's equity capital stands at 35.794 trillion won, and its solvency margin ratio (RBC) is 337%, maintaining the highest level in the industry.

Furthermore, Samsung Life stated regarding the amendment of the Insurance Business Act, commonly called the 'Samsung Life Act,' that "the principle of making decisions to enhance shareholder value remains unchanged."

A Samsung Life official said, "It is true that the amendment to the Insurance Business Act, which changes the acquisition limit of affiliate stocks from acquisition cost to market price, is currently being discussed in the National Assembly," adding, "We are monitoring the situation in the National Assembly, and no decisions have been made in any circumstances."

He emphasized, "The recent sharp rise in stock prices partly reflects the market's reaction to the currently discussed amendment to the Insurance Business Act," and "Regardless of what happens, the principle of making decisions to enhance shareholder value remains unchanged."

Under the current Insurance Business Act, insurance companies can own shares of major shareholders or affiliates up to 3% of total assets based on acquisition cost to prevent loss risks. The proposed amendment submitted to the National Assembly includes changing the stock price evaluation from the existing acquisition cost to market value.

Currently, Samsung Life is the largest single shareholder holding 8.51% of Samsung Electronics common stock and 0.01% of preferred stock, calculated based on acquisition cost under the current Insurance Business Act supervisory regulations, not market price. However, if the amendment passes the National Assembly, Samsung Life would have to sell about 20 trillion won worth of Samsung Electronics shares exceeding the 3% limit.

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