Samsung Life Insurance "From Asset Management to Overseas Expansion... Samsung Life Insurance Act, Inappropriate to Offer Opinions" (Comprehensive)

Samsung Life Earnings Report Overseas Investment Blueprint
"Looking at Emerging Market Insurer Assets"
Immediate Annuity Lawsuit "Will Take Considerable Time Until Conclusion"

[Asia Economy Reporters Oh Hyung-gil and Ki Ha-young] Samsung Life Insurance announced that it is considering equity investments in overseas asset management companies as a priority for its overseas expansion.

Yoo Ho-seok, Chief Financial Officer (CFO) of Samsung Life Insurance, said at the Samsung Life Insurance earnings announcement held on the 12th, "We recognize the necessity of going overseas," adding, "Initially, we plan to enter overseas markets through equity investments, and ultimately through acquiring management rights via mergers and acquisitions (M&A)."

He continued, "If a success story emerges in asset management, the next step will be overseas investments by insurance companies," and added, "We are currently looking at potential deals mainly in emerging markets such as Southeast Asia, beyond the markets we have already entered like China and Thailand."

Regarding the recent first trial results of Mirae Asset Life Insurance's immediate annuity lawsuit, he explained, "There are currently four ongoing lawsuits," and "Mirae Asset Life Insurance plans to appeal, and in September, NH Nonghyup Life Insurance won a similar case, so the outcomes are mixed."

He predicted that since lower courts are issuing conflicting rulings, it will take considerable time before a conclusion is reached on the immediate annuity lawsuits.

Specifically about the amount involved in the immediate annuity lawsuits, he said, "The amounts reported in the media differ from the actual amounts," and explained, "Immediate annuities include not only past amounts but also the entire future amounts, which are calculated on top of the paid insurance benefits, so the temporary impact will not be significant."

[Image source=Yonhap News]

Regarding the so-called 'Samsung Life Insurance Act' currently being promoted by the ruling party, which is an amendment to the Insurance Business Act, he stated, "Since it is under discussion in the National Assembly, it is inappropriate for the company to present specific opinions, so I have nothing to say on this matter," emphasizing, "We are not considering shareholder dividends based on a sale at all."

The amendment to the Insurance Business Act proposed by Park Yong-jin, a member of the Democratic Party of Korea, includes changing the accounting valuation standard for Samsung Electronics shares held by Samsung Life Insurance (8.5%) and Samsung Fire & Marine Insurance (1.5%) from the current 'book value' to 'market value.' If the bill passes, it is expected that Samsung Life Insurance and Samsung Fire & Marine Insurance will have to sell a large volume of Samsung Electronics shares.

Meanwhile, Samsung Life Insurance announced that its cumulative net profit for the third quarter reached 995.1 billion KRW, a 1.9% increase compared to the same period last year. During the same period, sales increased by 3.9% to 18.01 trillion KRW, and operating profit rose by 5.1% to 924.6 billion KRW.

Samsung Life Insurance explained that insurance profits increased by 22% due to business recovery and cost efficiency, and that the variable annuity reserve profit and loss recovered as the stock market gradually stabilized.

The new contract value, an indicator showing the flow of future profits, increased by 2.4% year-on-year to 342 billion KRW in the third quarter, and the new contract annualized premium equivalent (APE) also rose by 15.4% year-on-year to 724 billion KRW.

Total assets increased by 6.1% compared to 306.9 trillion KRW in the same period last year, reaching 325.6 trillion KRW, and the RBC ratio, which measures capital soundness, maintained the industry's highest level at 345%.

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