[Click eStock] "Samsung Life Insurance, Shareholder Return Yield 5% This Year... Target Price Up"

NH Investment & Securities has raised the target price of Samsung Life Insurance to 131,000 KRW. It is analyzed that the shareholder return rate has increased, resulting in a 5% earnings yield per share this year from dividends and share repurchases.

Jung Joon-seop, an analyst at NH Investment & Securities, stated, "Samsung Life Insurance increased its shareholder return rate from 35.1% to 39.9% last year, bringing the return rate from shareholder returns close to 5%," and added, "It is highly likely that the earnings yield will trend upward as the company concretizes its capital policy through future 'value-up' initiatives."

Analyst Jung evaluated, "While life insurance companies face increased performance uncertainty due to the adoption of International Financial Reporting Standards (IFRS17), the relative attractiveness of insurers like Samsung Life Insurance, which have strong shareholder return capacity and willingness, is increasing."

Analyst Jung also predicted, "Samsung Life Insurance is managing investment gains and losses at a favorable level through bond replacement trades and some asset sales," and added, "Furthermore, with improvements in insurance profits, the performance is expected to exceed previous forecasts."

He explained the reason for raising the target price, saying, "The value of non-financial affiliate shares rose from 10.5 trillion KRW to 12.6 trillion KRW, and the corporate value of financial affiliates also increased from 10.4 trillion KRW to 10.8 trillion KRW," adding, "When the combined value of 23.4 trillion KRW is converted to a per-share value, it results in the target price of 131,000 KRW."

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