Insurance Company CEO Buys Company Shares... "Responsible Management Next Year as Well"

by Oh Hyungil

Published 24 Dec.2021 11:00(KST)

"Enhancing Shareholder Value and Commitment to Sustainable Growth"

Jo Yong-il, CEO of Hyundai Marine & Fire Insurance

[Asia Economy Reporter Oh Hyung-gil] Insurance company executives are actively buying back their own shares at the end of the year, enhancing shareholder value and strengthening responsible management ahead of the new year. This reflects their determination to continue growth next year based on this year's strong performance.

According to the insurance industry on the 24th, Cho Yong-il, CEO of Hyundai Marine & Fire Insurance, purchased 4,000 shares of the company's stock on the market at 24,800 KRW per share the previous day. Adding to the 4,280 shares bought in February, his total holdings increased to 8,280 shares.

A Hyundai Marine & Fire Insurance official explained, "Most insurance stocks, including ours, are undervalued compared to their performance," adding, "The purpose is to increase corporate value and continue responsible management next year."

Hyundai Marine & Fire Insurance has recorded strong results up to the third quarter, thanks to improvements in loss ratios and expense ratios in automobile and general insurance. The cumulative net income reached 387.7 billion KRW, a 23.2% increase compared to the same period last year. Despite the impact of COVID-19, the loss ratios of major products have stabilized. The general insurance loss ratio improved by about 10 percentage points from the previous year to 60.0%. The automobile insurance loss ratio also remained at 79.5%, down 5.2 percentage points from the same period last year.

Since his appointment, CEO Cho has emphasized the core business of non-life insurance companies. To normalize indemnity medical insurance, he reported illegal medical advertising activities and established a long-term indemnity management department.

Park Jun-gyu, who was promoted to vice president this month and leads Samsung Life Insurance’s Global Business Team, also purchased 150 shares of the company’s stock on the 22nd at 67,500 KRW per share. He joined Samsung Economic Research Institute in 2016, was promoted to an executive at Samsung Life Insurance in 2018, and has led the Global Business Team since last year. Born in 1975, he rose to vice president in his 40s and is considered a leading figure in the 'New Samsung' generational change.

Kang Sung-soo, CEO of Hanwha General Insurance, also bought a total of 20,000 shares last month. Shortly after his appointment in March last year, he purchased 72,000 shares over 14 transactions and bought an additional 28,000 shares in June of the same year. His total holdings amount to 100,000 shares.

Hanwha General Insurance recorded a net loss in 2019 and was included in the Financial Supervisory Service’s management control target, but succeeded in turning a profit last year with a net income of 88.4 billion KRW. The cumulative net profit for the third quarter this year also increased by 84.3% compared to the same period last year, reaching 168 billion KRW. It is interpreted that CEO Kang, whose term expires next year, showed his commitment to management improvement through share buybacks.