[Click eStock] "Samsung Fire & Marine Insurance, Better-than-Expected Q2 Performance"

[Asia Economy Reporter Ji-hwan Park] Yuanta Securities on the 19th stated that Samsung Fire & Marine Insurance delivered better-than-expected performance in the second quarter of this year, recommending a 'Buy' rating and a target price of 280,000 KRW.

Jeong Tae-jun, a researcher at Yuanta Securities, said, "Samsung Fire & Marine Insurance's second-quarter profit was 269.3 billion KRW, exceeding the market expectation of 243.6 billion KRW," and evaluated that "this was due to insurance operating profit being better than estimated because of a lower-than-expected combined ratio."

In particular, the improvement in loss ratios in long-term insurance and automobile insurance stood out, and the fact that not only long-term insurance but also the incurred loss amount in automobile insurance decreased is a differentiating factor from other non-life insurers. The estimated loss ratios for long-term insurance and automobile insurance in the second quarter were 82.1% and 82.2%, respectively, better than estimates.

Investment operating profit in the second quarter also exceeded estimates, increasing by 1.9% year-on-year and 10.1% quarter-on-quarter. Researcher Jeong explained, "Investment operating profit was higher than estimated due to gains from the sale of stock and real estate funds," and the policy of avoiding bond sales to defend profits is expected to be maintained as is.

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