Samsung Life Insurance Last Year's Net Profit 1.6 Trillion KRW... 7.8% Increase YoY

Limited Effect of Corporate Tax Reduction: Operating Profit Decreases by 20% Year-on-Year

[Asia Economy Reporter Minwoo Lee] Samsung Life Insurance posted a net profit of 1.6 trillion KRW last year. Although this represents a growth of about 7.8% compared to the previous year, it was mainly due to the effect of a decrease in deferred corporate tax liabilities following the revision of the Corporate Tax Act. Excluding this, the net profit actually decreased compared to the previous year.

Samsung Life Insurance announced at its investor relations (IR) meeting on the 21st that it recorded a net profit of 1.5833 trillion KRW last year. This is an increase of 7.8% compared to the previous year (1.4694 trillion KRW). However, this was largely influenced by the reduction in deferred corporate tax liabilities due to the revision of the Corporate Tax Act. Excluding this, the recurring net profit was 1.1551 trillion KRW, which is about 21.4% lower than the total net profit in 2021.

Looking into the details, the operating indicator new contract APE (Annual Premium Equivalent, a concept that converts premiums at the time of new contract signing into annual premiums) was 2.6743 trillion KRW, similar to the previous year (2.7112 trillion KRW). This is explained as a result of continuing a profitability-focused sales policy and strengthening channel competitiveness. The asset management yield increased by 0.7 percentage points year-on-year to 3.4%.

Meanwhile, total assets stood at 316.2 trillion KRW, and the solvency margin ratio (RBC ratio), which measures capital soundness, remained at an industry-leading level of 244%.