Samsung Fire & Marine Insurance 2Q Net Profit 603.2 Billion KRW... 40% Increase YoY

First Half Net Profit 1.2 Trillion... 'Record High'
Impact of IFRS17 Adoption Also Present
CSM at 12.6 Trillion... Up 450 Billion from Year-End

Samsung Fire & Marine Insurance achieved a net profit exceeding 600 billion KRW in the second quarter of this year, marking the highest performance on a half-year basis. However, it is noted that this should be considered in light of the first year of the new accounting standard IFRS 17 being introduced.

Samsung Fire & Marine Insurance announced on the 14th that it recorded an operating profit of 746.8 billion KRW and a net profit of 603.2 billion KRW in the second quarter of this year. These figures represent increases of 27.9% and 40.3%, respectively, compared to the same period last year.

The net profit for the first half of the year reached 1.2166 trillion KRW, up 27.3% from the same period last year, setting a record high. Of the pre-tax profit of 1.6286 trillion KRW in the first half, insurance profit was 1.2581 trillion KRW, an increase of 19.5% compared to the same period last year. Investment profit was recorded at 354.1 billion KRW, up 47.9% during the same period.

Among insurance profits, long-term insurance amounted to 861.6 billion KRW, a 29.2% increase from the same period last year. Despite an increase in accident rates following the transition to normalcy after COVID-19, automobile insurance maintained a loss ratio (the ratio of claims paid to premiums received) of 76.3%, the same level as the previous year. Although insurance profit decreased by 6.6% to 201.9 billion KRW compared to the same period last year, it is explained that this is a favorable level compared to the pre-COVID-19 period.

Insurance profit from general insurance was 142.1 billion KRW, up 10.8% from the same period last year. This is attributed to increased insurance revenue due to market expansion in specialty and marine insurance and growth in overseas business, as well as a decrease in loss ratio due to fewer high-cost accidents.

The investment yield for the first half of the year improved by 0.75 percentage points to 3.14% compared to the same period last year. The scale of investment profit was 1.2088 trillion KRW, an increase of 23.8% compared to the same period last year. Efforts to enhance retained premiums and flexible market responses were evaluated as effective.

Regarding the Contractual Service Margin (CSM), which is the source of future earnings, the new contracts for the first half of the year were identified at 1.4426 trillion KRW. This is attributed to the improvement in the monthly average new contract premiums and conversion multiples due to new product launches and a profitability-focused portfolio improvement strategy. As a result, the CSM as of the first half of this year was recorded at 12.6549 trillion KRW, an increase of 453.5 billion KRW from the end of last year.

Kim Jun-ha, Chief Financial Officer (CFO) and Head of Management Support at Samsung Fire & Marine Insurance, said, "Despite ongoing internal and external uncertainties, we demonstrated excellent business performance in the first half of the year. We will continue to actively respond to changes in regulations and market environments, pursue solid growth, continuous efficiency innovation, and risk management to ensure stable profit expansion."

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