Despite COVID-19, Samsung Insurance Companies 'Saved Face' in Chinese Business...

Overseas Market Success
Samsung Life China Joint Venture
Operating Revenue 1.5 Trillion KRW
51% Growth Year-on-Year

[Asia Economy Reporter Oh Hyung-gil] Samsung Life Insurance continues to show improved performance in China and Thailand despite the impact of COVID-19. In line with its mid-to-long-term vision to achieve 30% of profits from overseas business sectors, additional overseas investments are expected to become more visible.

Samsung Fire & Marine Insurance's overseas subsidiaries are also delivering tangible results, demonstrating that Samsung's insurance affiliates are holding their ground in the global market.

According to the insurance industry on the 31st, Samsung Life Insurance's Chinese joint venture, Zhongyin Samsung Life Insurance Co., Ltd. (Zhongyin Samsung), achieved operating revenue of 1.5631 trillion KRW last year. This represents a remarkable 51% increase compared to 1.0291 trillion KRW the previous year.

Net income also rose by 31%, from 8.5 billion KRW in 2019 to 11.2 billion KRW last year.

Zhongyin Samsung, established as a joint venture between Samsung Life Insurance and Bank of China in 2005, currently has Bank of China holding a 51% stake, with Samsung Life Insurance and China Airlines holding 25% and 24%, respectively. Since its first profitable year in 2017, it has maintained a profit-making trend for four consecutive years. Bancassurance sales (insurance sales through bank branches) via Bank of China have been a foundation for growth.

Alongside China, another key pillar of overseas strategy is the Thai subsidiary, Thai Samsung Life Insurance. Thai Samsung's operating revenue grew by 10% year-on-year to 189.9 billion KRW last year. Although net income slightly decreased from 1.2 billion KRW to 900 million KRW, it has recorded consecutive profits from 2017 through last year.

Thai Samsung has been nurturing new agents through five development centers across Thailand, increasing the number of agents to 9,178 by the end of last year, a 17% increase compared to the same period the previous year. The new contract annualized premium equivalent (APE) through the agent channel rose 14% year-on-year to 47.3 billion KRW.

Samsung Life Insurance previously established a ‘2030 Mid-to-Long-Term Vision’ to expand the profit contribution ratio of overseas insurance to 30%. Currently, domestic insurance accounts for 85% and overseas 15% of profit contribution. The mid-to-long-term goal is to increase overseas proportions to 32% in asset management, 30% in overseas insurance, and 38% in domestic insurance.

To this end, it is scouting for new investment targets. A Samsung Life Insurance official said, "We have selected emerging Asian countries as investment regions," adding, "The investment targets and timing are still under review."

[Image source=Yonhap News]

Samsung Fire & Marine Insurance Holds Strong in China, Europe, Vietnam, and More

Samsung Fire & Marine Insurance also recorded strong performances from its overseas subsidiaries in China, Vietnam, Singapore, Europe, and others. Although insurance premium revenue from overseas business decreased slightly by about 3% from 235.9 billion KRW the previous year to 229.1 billion KRW last year, net income during the same period increased by 13%, from 29.5 billion KRW to 33.3 billion KRW.

Samsung Fire & Marine Insurance operates seven subsidiaries in Europe, Vietnam, China, Singapore, Indonesia, the United States, and the United Arab Emirates (insurance agency). Among these, the Chinese subsidiary’s net income rose 23% year-on-year to 12.3 billion KRW. The subsidiaries in Vietnam (7.9 billion KRW), Singapore (6.6 billion KRW), and Europe (5.3 billion KRW) also saw increased net profits compared to the previous year.

Last year, Samsung Fire & Marine Insurance established a cooperative system with Tencent, China’s largest IT company, through a third-party allotment capital increase in its Chinese subsidiary.

A Samsung Fire & Marine Insurance official said, "We are currently undergoing approval procedures with Chinese financial authorities to convert the Chinese subsidiary into a joint venture," adding, "We plan to grow the Chinese subsidiary into an online insurance business centered on Tencent’s IT strengths."

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