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

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

[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 held 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 over 140,000 people.

Samsung Life Insurance aims to become a mid-tier insurer through its Thailand branch. It plans to increase partnerships with major banks and bancassurance (insurance sales through banks) based on existing sales channels and secure additional growth engines 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, recorded operating revenue of 97.2 billion KRW, significantly down from 1.1715 trillion KRW in the same period last year, but is focusing on expanding bancassurance sales based on China Bank.

Samsung Life Insurance is also 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 specialized asset management company. From the time the share acquisition is completed, it plans to manage assets worth 1 billion USD (approximately 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 compared to the same period last year. The Indonesia branch achieved 5.9 billion KRW, a 43.9% increase from 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 to establish a subsidiary in the US in the form of a corporate venture capital (CVC). Although the specific corporate 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 business.

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

China Samsung Property Insurance, which is transitioning 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.

Shinhan Life is also preparing to launch its Vietnam branch in February next year. The Vietnam overseas subsidiary, which has received establishment approval from local authorities, is currently finalizing preparations for full-scale business commencement next year.

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