Samsung Life Insurance's Net Profit Reaches 1.4 Trillion Won Last Year, Smiles Thanks to Samsung Electronics' Special Dividend

[Asia Economy Reporter Changhwan Lee] Samsung Life Insurance achieved improved performance last year, supported by a special dividend from Samsung Electronics.

Samsung Life Insurance held an investor relations (IR) meeting on the 22nd and announced that its net profit for last year was 1.4694 trillion KRW, an increase of 16.1% compared to the previous year. During the same period, sales revenue rose 1.6% year-on-year to 35.079 trillion KRW, while operating profit decreased by 5% to 1.701 trillion KRW.

Samsung Life Insurance explained that net profit improved due to receiving a special dividend of 802 billion KRW from Samsung Electronics in the first quarter of last year, as well as improved profits from subsidiaries such as Samsung Securities and Samsung Card.

A Samsung Life Insurance official said, "The improvement in other comprehensive income was a result of increased consolidated profits from Samsung Electronics' special dividend in Q1 last year and improved subsidiary earnings."

However, profit from the insurance business declined by 22.8% year-on-year to 1.239 trillion KRW. The loss ratio rose by 5.8 percentage points from 80% the previous year to 85.8% last year, worsening profits. Due to the prolonged COVID-19 pandemic, increased hospital expenses caused insurance business profits and losses to fall back to 2019 levels.

The value of new contracts, an indicator representing the future profit flow, was 1.4058 trillion KRW last year, up 6.7% compared to the previous year. The value of new contracts is the value converted into future profits by calculating all revenues and costs that may occur over the entire insurance period after signing an insurance contract.

The sales indicator, new contract APE (Annualized Premium Equivalent), was 2.711 trillion KRW, similar to the previous year. The company emphasized that this was due to continuously launching new products to enhance product competitiveness and strengthening non-face-to-face marketing.

Total assets increased by 1.4% year-on-year to approximately 341 trillion KRW, and the RBC (Risk-Based Capital) ratio, which gauges capital soundness, maintained the industry's highest level at 305%.

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