Samsung Fire & Marine Insurance Reports Record Half-Year Net Profit of KRW 1.3124 Trillion

Samsung Fire & Marine Insurance posted a net profit exceeding 1.3 trillion KRW in the first half of this year. Thanks to the adoption of the new accounting standard, International Financial Reporting Standards (IFRS) 17, the company recorded its highest performance for the first half of the year.

Samsung Fire & Marine Insurance announced on the 14th that its consolidated net profit attributable to controlling shareholders for the first half of this year was 1.3124 trillion KRW, an 8.2% increase compared to the same period last year. Revenue reached 11.0337 trillion KRW, up 6% from the first half of last year, and operating profit increased by 6.4% to 1.6793 trillion KRW.

Consolidated pre-tax profit was recorded at 1.7238 trillion KRW. Among the pre-tax profits, insurance profit was 1.1976 trillion KRW, demonstrating stable insurance profitability, while investment profit rose 48.6% year-on-year to 519.4 billion KRW, driven by improved operating income and valuation gains.

Long-term insurance grew by 24.3% compared to the same period last year through the launch of new products and strategic responses to the General Agency (GA) channel. The new contract Contractual Service Margin (CSM), a profitability indicator, increased by 13.6% to 1.6383 trillion KRW. As a result, the CSM size increased by 652.5 billion KRW from the end of last year to 13.9553 trillion KRW, and insurance profit was 904.8 billion KRW due to increased CSM amortization income.

Auto insurance loss ratio rose by 2.2 percentage points year-on-year to 78.5% due to accumulated rate reductions. However, through differentiated marketing strategies by channel and target customers, insurance revenue for the first half of this year reached 2.7969 trillion KRW, and insurance profit was 149.3 billion KRW.

General insurance recorded insurance revenue of 800.2 billion KRW in the first half of this year due to simultaneous growth in domestic and overseas business sales. However, insurance profit decreased by 18% year-on-year to 116.5 billion KRW due to an increase in loss ratio caused by high-value claims.

The investment yield for the first half of this year improved by 0.36 percentage points year-on-year to 3.5%. This was attributed to efforts to enhance the spread (the difference between the interest rates of assets held by the insurer and bond yields, representing expected future earnings) and expand valuation gains through alternative investments. Investment income based on managed assets expanded by 17.9% to 1.4254 trillion KRW.

Kim Jun-ha, Chief Financial Officer (CFO) of Samsung Fire & Marine Insurance, said, "Despite ongoing internal and external uncertainties and intensified market competition, we have continued to achieve outstanding results across all areas including sales, profits, and customer expansion. We will do our best to realize solid growth through fundamental changes and innovation and to secure a stable future profit base."

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