Samsung Fire & Marine Insurance Resolves Capital Increase for Chinese Subsidiary... Smooth Joint Venture with Tencent

Expansion of Sales Channels Using IT Technology
Prospects for Entering the Chinese Online Insurance Market

[Asia Economy Reporter Oh Hyung-gil] Samsung Fire & Marine Insurance's joint venture project with Tencent, a leading Chinese internet company, is progressing smoothly. The joint venture process is expected to be completed as early as the second half of this year, marking Samsung's entry into the Chinese online insurance market.

According to the insurance industry on the 4th, Samsung Fire & Marine Insurance's Chinese subsidiary, 'Samsung Property Insurance,' recently held an extraordinary general meeting of shareholders and resolved to increase its capital. Last November, Samsung Fire & Marine Insurance decided to convert Samsung Property Insurance into a joint venture through equity partnerships with Chinese investors.

The investors include five companies: Tencent, Shanghai Jiayin Cultural Media Co., Ltd., Wishing Technology Company, Shanghai Tian Tian Asset Management Company, and Bowei Fund, with an investment scale reaching 320 billion KRW.

After the conversion to a joint venture, Samsung Fire & Marine Insurance's shareholding will decrease from 100% to 37%, while Tencent will hold 32%, Shanghai Jiayin 11.5%, Wishing Technology 11.5%, Shanghai Tian Tian 4%, and Bowei Fund 4%.

Following this capital increase decision, Samsung Fire & Marine Insurance plans to submit application documents regarding shareholder changes and capital increase to Chinese regulatory authorities and obtain approval to finalize the joint venture conversion.

Samsung Fire & Marine Insurance intends to nurture its Chinese subsidiary as an online insurance business centered on expanding insurance sales channels by leveraging Tencent's strengths in IT technology. The Chinese non-life insurance market, valued at approximately 288 billion USD (about 322 trillion KRW), has maintained double-digit growth for several years, becoming the world's second-largest market.

In the first quarter of this year, Samsung Fire & Marine Insurance's Chinese subsidiary recorded insurance premium income of 19.8 billion KRW, including 9.8 billion KRW from automobile insurance and 2.7 billion KRW from fire insurance, a 15.3% decrease compared to the same period last year. A Samsung Fire & Marine Insurance official stated, "The procedures to obtain approval from Chinese authorities are progressing smoothly," adding, "We plan to discover digital new business opportunities in the Chinese market based on the platform and provide fast and flexible insurance services."