Samsung Fire & Marine Insurance Reports 766.8 Billion KRW Net Profit Last Year... "Future Focus on Global, Digital, and ESG Initiatives"

Net Profit Increases by 25.9% Due to Decrease in Loss Ratio

[Asia Economy Reporter Ki Ha-young] Samsung Fire & Marine Insurance's net profit for last year increased by about 26% compared to the previous year as the loss ratio decreased due to the spread of COVID-19. This year, the company plans to focus on profitability-centered internal management and balanced growth across the automobile, long-term, and general insurance sectors.

On the 18th, Samsung Fire & Marine Insurance announced its 2020 business performance, reporting a net profit of 766.8 billion KRW, up 25.9% from the previous year. The significant factor was the decrease in the automobile insurance loss ratio as vehicle usage declined due to the spread of COVID-19. Revenue reached 19.5485 trillion KRW, and operating profit was 1.132 trillion KRW, increasing by 3.8% and 23.8%, respectively, compared to the previous year. As of the end of last year, assets stood at 91.721 trillion KRW, up 8.6%, and the Risk-Based Capital (RBC) ratio was maintained at around 303.3%.

The combined ratio (loss ratio + expense ratio), which measures insurance business efficiency, was recorded at 104.4%, down 1.5 percentage points from the previous year. The main reason was the 5.8 percentage point drop in the automobile insurance loss ratio due to reduced vehicle usage amid COVID-19.

Samsung Fire & Marine Insurance announced its future management strategy on the same day, stating it will focus on overseas business, digital transformation, and Environmental, Social, and Governance (ESG)-centered management. Regarding overseas business, to overcome the limitations of domestic growth and secure new revenue sources, partnerships with advanced insurance markets and global IT companies will be expanded. Samsung Fire & Marine Insurance has already participated in the management of Canopius, the UK's 4th largest specialty insurance company in the Lloyd's market, through investments made between 2019 and 2020, and is currently promoting the conversion of its Chinese subsidiary into a joint venture with the global IT company Tencent.

In terms of digital transformation, the company plans to enhance operational efficiency through the establishment of a digital automated response system (ARS) and robotic process automation (RPA), and provide differentiated O2O (online-to-offline) services for automobile, long-term, and general insurance. To this end, active partnerships with related platform companies and investments through Corporate Venture Capital (CVC) will be pursued.

Additionally, Samsung Fire & Marine Insurance is making efforts to internalize ESG by declaring a coal phase-out policy, expanding investments in renewable energy, and practicing paperless insurance contracts based on digital platforms.

This year's management strategies include profitability-centered internal management and balanced growth across the automobile, long-term, and general insurance sectors. For long-term insurance, the company plans to avoid excessive competition in new life insurance contracts and focus on qualitative growth centered on protection insurance premiums.

Hong Seong-woo, Chief Financial Officer (CFO) of Samsung Fire & Marine Insurance, said, "Despite the uncertain environment caused by COVID-19, we will strengthen the core business profit base and achieve solid growth through overseas investments and new businesses. We will strive to deliver results exceeding those of last year."

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