Insurance Companies with Record-Breaking Performance... Maximum Bonuses as Well

Following Samsung Life and Fire & Marine,
Meritz Fire & Marine Also Offers Top Bonuses
Thanks to Changes in Accounting Standards

Insurance companies are paying out performance bonuses at record levels as they posted their highest-ever earnings last year. Thanks to the effects of changes in accounting standards, they achieved record-breaking results last year and significantly increased compensation based on the principle of performance-based rewards.

Meritz Fire & Marine Insurance Gangnam Office. Provided by Meritz Fire & Marine Insurance

According to the industry on the 4th, Meritz Fire & Marine Insurance announced in an internal notice the day before that the expected performance bonus payout rate this year is around 60% of the annual salary. Meritz Fire & Marine Insurance also paid about 60% of the annual salary as a performance bonus last year. This year's performance bonus is expected to be similar to or slightly higher than last year's level. This is among the highest levels in the insurance industry, including non-life and life insurance companies.

Not only Meritz Fire & Marine Insurance, but other insurers such as Samsung Life Insurance and Samsung Fire & Marine Insurance also plan to provide high levels of performance bonuses. Samsung Life Insurance has set the expected performance bonus payout rate this year at around 34-38% of the annual salary, while Samsung Fire & Marine Insurance plans to pay about 46-50% of the annual salary. Samsung Life Insurance paid about 29% of the annual salary as a performance bonus last year, and this year's expected rate is the highest in the past 10 years. Samsung Fire & Marine Insurance will pay record-breaking performance bonuses again this year.

The reason for the high performance bonuses is the record-high earnings. Thanks to the effects of changes in accounting standards, they posted their highest-ever earnings last year. Meritz Fire & Marine Insurance's cumulative net profit for the third quarter was 1.4928 trillion KRW, a 15.2% increase compared to the same period last year. Samsung Life Insurance recorded 2.0421 trillion KRW, up 40.9% during the same period. Samsung Fire & Marine Insurance posted 1.8665 trillion KRW, a 13.8% increase. All three companies achieved their highest-ever earnings.