Stable Investment and Insurance... Samsung Fire & Marine Insurance Q1 Net Profit 612.7 Billion Won

16.7% Increase Compared to Same Period Last Year
Investment Gains Up 32.8%

Samsung Fire & Marine Insurance continued its growth trend by achieving a net profit of approximately 610 billion KRW in the first quarter of this year. The company generated stable profits in both investment and insurance sectors while preparing for uncertainties.

Samsung Fire & Marine Insurance announced on the 12th that it recorded a net profit attributable to controlling shareholders of 612.7 billion KRW on a consolidated basis for the first quarter of this year. This represents a 16.7% increase compared to the same period last year. It is also a 36.7% increase from the 448.1 billion KRW net profit in the first quarter of last year, before the adoption of the new accounting standard IFRS17.

Pre-tax profit was recorded at 859.3 billion KRW. Among this, insurance profit for the first quarter was 614.8 billion KRW, up 20.8% year-on-year. Investment profit also increased by 32.8% compared to the same period last year, totaling 238.3 billion KRW.

Long-term insurance posted an insurance profit of 420.9 billion KRW, a 38.9% increase from the same period last year. The contract service margin (CSM), a profitability indicator under the new accounting standard, stood at 12.3501 trillion KRW, expanding by 148.8 billion KRW compared to the end of last year. CSM is a concept that recognizes future profits generated from insurance contracts over several years.

The new contract CSM for the first quarter was identified as 678.3 billion KRW. This is attributed to the sales strategy focused on new product launches and high-CSM products such as 세만기 and 무해지.

The long-term risk loss ratio slightly increased by 0.8 percentage points year-on-year to 88.9%. The automobile insurance loss ratio rose by 2.3 percentage points to 75.9% compared to the same period last year, which is believed to be due to the end of the COVID-19 situation. Accordingly, automobile insurance profit was 106.5 billion KRW, down 27.8% year-on-year, but still at a better level than before COVID-19.

General insurance recorded an insurance profit of 57.6 billion KRW, a 40.9% increase from the same period last year. This was analyzed to be due to the expansion of the special and marine markets and growth in overseas business, increased earned premiums from sales growth, and a decreased loss ratio due to fewer high-cost accidents.

In asset management, the investment yield for the first quarter was 3.4%, an improvement of 0.7 percentage points compared to the same period last year. Investment profit increased by 10.6% year-on-year to 591.7 billion KRW. This was explained as the result of efforts to enhance portfolio quality and flexible market responses.

Kim Jun-ha, Chief Financial Officer (CFO) of Samsung Fire & Marine Insurance, said, "Despite ongoing internal and external challenges, we aimed to demonstrate excellent business performance along with the stable adoption of the new accounting standards. Moving forward, we will actively respond to environmental changes, continue solid growth and efficiency innovation, and focus on securing medium- to long-term profit stability."

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