Samsung Fire & Marine Insurance's Canopius Acquisition to Lift Global Earnings Contribution Above 20%

[Financial News] LS Securities said on the 11th that it expects the contribution of overseas operations to earnings at Samsung Fire & Marine Insurance to significantly exceed 20% following its acquisition of Canopius. The outlook takes into account earnings from other overseas equity investments, including a Chinese joint venture, insurance income from overseas subsidiaries, and a potential future entry into the U.S. market. LS Securities maintained its “Buy” rating on Samsung Fire & Marine Insurance and its target price of 800,000 won.
Jeon Bae-seung, a researcher at LS Securities, said, “Canopius’s equity-method earnings in the first half of this year totaled 168 billion won, or 9.1% of pretax profit. If the ownership stake doubles to 80%, its share of earnings is expected to reach 20%. We attach great significance to the acquisition of control of Canopius because it lays the groundwork for a full-scale overseas expansion. Opportunities to boost growth and profitability are expected to continue to come into focus as the global platform is strengthened. Overseas insurers with global portfolios, such as Tokio Marine, trade at P/B ratios of 1.5x or higher.”
Samsung Fire & Marine Insurance acquired a 40.5% stake in Canopius for 2.3 trillion won ($1.67 billion), raising its ownership to 80.6% and securing its position as the largest shareholder. The acquisition gives the company a platform for global expansion, and it has brought in private equity firm KKR (12.15% stake) as a co-investor to target the U.S. E&S direct insurance market. The company plans to complete the acquisition of control in the first half of 2027, subject to approval from regulators in South Korea and the U.K.  


[email protected] Kang Gu-gwi Reporter