[Click eStock] "Samsung Fire & Marine Insurance, Unwavering Stability"

On April 22, Korea Investment & Securities analyzed that Samsung Fire & Marine Insurance's strong capital position would enable the company to continue expanding shareholder returns. The firm maintained a 'Buy' rating and set a target price of 480,000 won.

Korea Investment & Securities projected that Samsung Fire & Marine Insurance's long-term insurance profit would grow by 5.5% year-on-year in 2024. However, due to a shift to losses in the auto insurance segment, the company's overall insurance profit is expected to remain at a similar level to last year. The cumulative effect of auto insurance premium reductions is expected to push the auto insurance loss ratio, which was 80% in 2023 and 83% in 2024, up to 85% in 2025.

As of the end of last year, Samsung Fire & Marine Insurance's K-ICS ratio stood at 264.5%. The K-ICS ratio is calculated by dividing the available capital by the required capital, and serves as an indicator of an insurer's capital soundness. The financial authorities' recommended level is 150%. Analyst Hong Yeran stated, "Over the medium to long term, the company should be able to maintain a level above its target of 220%," adding, "Companies with abundant capital capacity can respond more flexibly, which justifies a higher premium."

In January, Samsung Fire & Marine Insurance announced a plan to enhance corporate value. The main shareholder return initiatives include increasing the dividend payout ratio to 50% by 2028 and canceling 1.36 million common shares and 90,000 preferred shares from treasury stock each year. She analyzed, "There are no negative factors that could hinder the expansion of shareholder returns, so the company should be able to smoothly implement its plan to enhance corporate value," and added, "If the amount of share cancellations this year is included in shareholder returns, the expected total shareholder return yield will reach 8.7%."