Insurance Companies Set Sail for Overseas Business... Expanding into Venture and Real Estate Sectors

Samsung Life Thailand Subsidiary Localization Success
3Q Cumulative Premium Income Up 2.4%
Hanwha Life High Growth in Vietnam and Indonesia

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Insurance companies seeking new growth engines in overseas markets are sailing smoothly this year, recording strong performance despite the impact of COVID-19.

They are evaluated to have secured a stable business foundation by successfully localizing outside the saturated domestic market. In addition to insurance, they are actively expanding into fields such as ventures and real estate investment.

According to the insurance industry on the 23rd, Samsung Life Insurance's Thailand branch recorded cumulative premium income of 123.4 billion KRW in the third quarter of this year, a 2.4% increase compared to the same period last year. The number of life insurance contracts is over 170,000, with the number of contracts continuously increasing. The Thailand branch has established a sales network based on 7 branches and 102 sales offices in Thailand, securing a customer base of about 140,000 people.

Samsung Life Insurance aims to become a mid-tier insurer through its Thailand branch. It plans to secure additional growth engines by increasing bancassurance partnerships with major banks based on existing sales channels and through mergers and acquisitions (M&A) of small and medium-sized insurers.

Jung-Eun Samsung Acquisition Insurance, a joint venture with China Bank and Zhonghang Group, saw operating revenue sharply decrease to 97.2 billion KRW from 1.1715 trillion KRW in the same period last year, but it is focusing on expanding bancassurance sales based on China Bank.

Samsung Life Insurance is expanding beyond insurance with the goal of earning 30% of its sales from overseas markets by 2030. In May, it decided to acquire a 25% stake in Savills IM, a UK real estate asset management company. From the time the stake acquisition is completed, it plans to manage assets worth 1 billion USD (about 1.1 trillion KRW) through Savills IM.

Hanwha Life Insurance is also showing steady growth in both its Vietnam and Indonesia branches. The Vietnam branch's cumulative premium income for the third quarter was 137.8 billion KRW, an 11.5% increase from the same period last year. The Indonesia branch achieved 5.9 billion KRW, a 43.9% increase compared to last year.

The Vietnam branch is continuously expanding its sales network by securing 17 branches and 122 agencies locally, while in Indonesia it operates 11 branches and 3 agencies.

Hanwha Life is also pushing forward with establishing a corporate venture capital (CVC) subsidiary in the United States. Although specific details such as the corporation name and capital size have not yet been decided, it is expected to play a role in discovering global technology companies while engaging in investment activities.

Samsung Fire & Marine Insurance is also accelerating its overseas business. After securing shares in Canopius, a Lloyd's of London non-life insurer, it participated in a capital increase to strengthen its capabilities.

China Samsung Property Insurance, which is converting into a joint venture with Tencent and others, is currently undergoing approval procedures with Chinese authorities. However, the premium income of local subsidiaries in eight countries including China, Europe, and Vietnam in the third quarter was 296.6 billion KRW, down 5.4% year-on-year.

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