Samsung Life Insurance and Samsung Fire & Marine Insurance Both Post Higher Cumulative Net Profit Through the Third Quarter

[Financial News] Samsung Life Insurance and Samsung Fire & Marine Insurance both recorded higher cumulative net profit through the third quarter of this year. At Samsung Life Insurance, higher investment profit—driven by dividend income and improved results at subsidiaries—led the gains, while Samsung Fire & Marine Insurance stood out for a recovery in the profitability of its core insurance business, including improved results in long-term and general insurance and a return to profitability in auto insurance.
According to the insurance industry on the 12th, Samsung Life Insurance’s consolidated net income attributable to controlling shareholders for January through September this year was 2.6859 trillion won, up 26.9% from the same period a year earlier. Insurance service profit was 1.0626 trillion won, while investment profit totaled 2.3985 trillion won. Dividend income and increased profits at subsidiaries and other consolidated entities contributed to the rise in investment profit.
The contractual service margin (CSM), which indicates the future profitability of the core insurance business, also increased. At the end of September, cumulative CSM stood at 14.3 trillion won, up 1.1 trillion won from the start of the year. CSM from new contracts was 2.6259 trillion won, up 14.3% from the same period a year earlier. The company said it secured profitability on new contracts through a sales strategy that took profitability and customer demand into account, even in a high-interest-rate environment. The new Korean Insurance Capital Standard (K-ICS) ratio stood at around 209% at the end of September.
At Samsung Fire & Marine Insurance, improved results in the core insurance business supported its performance. Consolidated net income for the first nine months of this year was 1.8655 trillion won, up 4.6% from the same period a year earlier. Insurance profit rose 9.8% to 1.5103 trillion won, while investment profit increased 6.7% to 1.0434 trillion won.
By insurance line, long-term insurance profit rose 1.1% from the same period a year earlier to 1.2309 trillion won. Improved retention rates for protection-type insurance and loss-ratio management, among other factors, contributed to the increase. Auto insurance maintained a cumulative insurance profit of 39.2 billion won. In particular, third-quarter insurance profit turned positive at 19.1 billion won, compared with a loss of 64.8 billion won in the same period last year.
General insurance profit rose 35.9% from the same period a year earlier to 212.9 billion won. Insurance revenue increased 11.9% to 1.4493 trillion won, and the loss ratio improved by 1.2 percentage points to 62.4%. At the end of the third quarter, the CSM balance was 14.835 trillion won, an increase of 667.4 billion won from the end of last year. The K-ICS ratio stood at 280.8%.
[email protected] Hong Yeji Reporter