Samsung Life Insurance Reports H1 Net Profit of 1.1646 Trillion KRW, Up 71.6% YoY (Comprehensive)

Assets of 337.3 Trillion Won, Industry-Leading RBC Ratio of 332% Maintained
Q2 Performance Weak Due to Reserve Impact from Immediate Annuity First Trial Loss

[Asia Economy Reporter Ki Ha-young] Samsung Life Insurance continued its performance improvement as its net profit for the first half of the year surged double digits despite reflecting provisions related to immediate annuities.

Samsung Life Insurance announced on the 13th that its consolidated net profit for the first half of this year reached 1.1646 trillion KRW, a 71.6% increase compared to the previous year. This was the result of improved secondary gains and losses due to Samsung Electronics dividends in Q1, increased consolidated profits, and the recovery of variable guarantee reserves. Operating profit for the same period rose 47.9% year-on-year to 1.3679 trillion KRW, and sales increased by 1.1% to 18.2024 trillion KRW.

However, the second-quarter performance was relatively weak. Net profit for Q2 fell 82.9% year-on-year to 76.6 billion KRW, and operating profit also plunged 93.9% to 33.5 billion KRW. Sales increased 7.3% year-on-year to 8.195 trillion KRW. The large impact was due to the provision of 278 billion KRW following a first-instance loss in the immediate annuity lawsuit. Samsung Life Insurance filed an appeal with the court on the 10th, contesting the first-instance ruling that it lost the lawsuit filed by 57 immediate annuity subscribers claiming unpaid pension amounts.

The new contract value, an indicator representing the flow of future profits, increased 28% year-on-year to 816.3 billion KRW in the first half. New contract APE (Annualized Premium Equivalent) also rose 10.2% year-on-year to 1.4511 trillion KRW. This was due to continuous new product launches this year, enhancing product competitiveness and strengthening non-face-to-face marketing.

As of the end of June, total assets stood at 337.3 trillion KRW, and the RBC ratio, which gauges capital soundness, maintained the industry's highest level at 332%. The protection insurance market share was 25.2%, and the number of customers increased to 8.18 million, solidifying its position as the top company.

Samsung Life Insurance stated, "The first half of 2021 continued to face a difficult management environment due to the prolonged COVID-19 situation, but we achieved favorable results with improvements in both growth and profitability compared to the previous year."

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