Samsung Fire & Marine Insurance's Net Profit Last Year 1.1 Trillion KRW... 4.5% Increase YoY

Auto Insurance Loss Ratio Holds Steady

[Asia Economy Reporter Minwoo Lee] Samsung Fire & Marine Insurance posted a net profit exceeding 1 trillion won last year.

Samsung Fire & Marine Insurance announced at its corporate briefing on the 21st that it recorded a pre-tax profit of 1.5368 trillion won and a net profit of 1.1414 trillion won for the 2022 fiscal year. These figures represent increases of 4.3% and 4.5%, respectively, compared to the previous year. Excluding the base effect of the special dividend from Samsung Electronics in 2021 (pre-tax 140.1 billion won), the net profit growth rate reached 16.5%.

The gross written premium, which refers to sales, was recorded at 20.0126 trillion won, up 1.8% from the previous year. By insurance category, general insurance increased by 17.8%, automobile insurance by 0.5%, and long-term insurance by 0.3% respectively.

The combined ratio (loss ratio + expense ratio), which measures insurance business efficiency, was 102.2%, down 0.8 percentage points from the previous year.

Regarding loss ratios by category, automobile insurance recorded 81.7%, a decrease of 0.2 percentage points from the previous year, due to expansion of high-quality sales and improved compensation efficiency. General insurance showed 77.1%, up 2.1 percentage points from the previous year, attributed to the impact of natural disasters and high-cost accidents. Long-term insurance improved by 3.1 percentage points from the previous year to 81.2%, influenced by strengthened payment review standards for excessive claims.

Kim Junha, Head of Management Support at Samsung Fire & Marine Insurance, said, "This year, the insurance industry is facing internal and external environmental changes such as accounting system changes and the possibility of a global economic recession. In response to these market conditions, we will continue steady growth and efficiency innovation and focus on securing mid- to long-term profit stability."