Surpassing 2 Trillion Won for the First Time Ever
Samsung Fire & Marine Insurance's net profit surpassed 2 trillion won for the first time in history last year.
On the 12th, Samsung Fire & Marine Insurance announced that its controlling shareholder net profit on a consolidated basis last year reached 2.0736 trillion won, a 14% increase compared to the previous year. During the same period, insurance profit decreased by 188.9 billion won, down 6%, but investment profit increased by 101.8% to 84.5 billion won.
The insurance contract margin (CSM), a profitability indicator for insurance companies under the International Financial Reporting Standards (IFRS 17) system, increased by 5.8% year-on-year to 14.0739 trillion won. This was influenced by the launch of new products and the expansion of the General Agency (GA) channel.
Long-term insurance recorded 1.5776 trillion won, growing 2.5% compared to the previous year. Auto insurance decreased by 49.6% from 19 billion won to 9.6 billion won, due to accumulated rate cuts and increased loss ratios. General insurance recorded 17.6 billion won, down 13.9% year-on-year, due to an increase in high-cost claims.
The investment sector showed favorable performance. Investment yield increased by 0.4 percentage points year-on-year to 3.22%, driven by increased interest and dividend income. Investment profit also rose 19.7% to 261.9 billion won.
The solvency ratio (K-ICS), an indicator of insurance company soundness, was recorded at around 265%, down 8 percentage points from the previous year.
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