Investment Profit Up 25%, but Insurance Profit Declines
K-ICS Ratio at 274.5%, Up 10 Percentage Points Year-on-Year
Samsung Fire & Marine Insurance announced on August 13 that its net profit for the first half of the year reached KRW 1.2474 trillion, a decrease of 5.1% compared to the same period last year.
Sales for the first half stood at KRW 12.9633 trillion, with operating profit at KRW 1.6038 trillion. While sales increased by 17.5% year-on-year, operating profit declined by 4.5% over the same period.
Insurance profit was KRW 1.005 trillion, down 16.1% from the previous year.
The balance of the Contractual Service Margin (CSM) for long-term insurance rose by KRW 503.7 billion from the end of last year, reaching KRW 14.5776 trillion.
However, the difference between actual and expected results (experience-profit) dropped sharply from KRW 140.3 billion in the first half of last year to KRW 2.7 billion in the first half of this year.
In the general insurance segment, profit fell by 8.3% year-on-year to KRW 106.8 billion, mainly due to the occurrence of large-scale accidents.
Auto insurance profit stood at KRW 30.7 billion, a decrease of 79.5% compared to the previous year.
Investment profit reached KRW 645.9 billion, up 24.4% year-on-year.
The company enhanced profitability by increasing dividend-type assets, such as corporate finance funds and private equity funds (PEFs), based on risk management.
The investment return rose by 0.14 percentage points, from 3.5% in the first half of last year to 3.64% in the first half of this year.
The key solvency indicator, the K-ICS ratio, was 274.5%, up 10 percentage points from the end of last year.
Increases in macroeconomic indicators such as interest rates and stock prices, as well as ongoing performance factors, all contributed positively to raising the K-ICS ratio.
Second-quarter net profit was KRW 638.4 billion, up 4.2% from the previous year.
Sales increased by 24.1% to KRW 6.8574 trillion, and operating profit rose by 3.7% to KRW 811.5 billion.
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