Samsung Fire & Marine Insurance reported a slight decline in its net profit for the third quarter of this year compared to the same period last year.
On November 13, Samsung Fire & Marine Insurance announced that its net profit for the third quarter was 538.5 billion won, down 2.9% year-on-year.
The cumulative net profit for the first three quarters was 1.7859 trillion won, a decrease of 4.4% compared to the same period last year.
Third-quarter revenue increased by 7.6% year-on-year to 5.7323 trillion won, while operating profit fell by 7.4% to 664.1 billion won.
For long-term insurance, the company pursued a profitability-focused strategy, such as improving its portfolio with high-quality coverage, resulting in a new contract insurance service margin (CSM) of 766.9 billion won. This represents a 6.6% increase from the end of the previous quarter. The total CSM also grew by 430.1 billion won from the previous quarter’s end, surpassing 15 trillion won.
Despite an increase in amortization profit due to the expansion of total CSM, the loss ratio rose, narrowing the difference between actual and expected insurance payouts. As a result, cumulative insurance profit decreased by 8.8% year-on-year to 1.2172 trillion won.
In the case of auto insurance, insurance profit for the third quarter turned to a deficit of 64.8 billion won, resulting in a cumulative loss of 34.1 billion won. This was due to the accumulated impact of consecutive rate cuts, as well as an increase in accidents caused by natural disasters such as heavy rains and heat waves.
For general insurance, both domestic and overseas businesses continued to grow, with cumulative insurance profit on a separate basis reaching 156.7 billion won, up 4.4% from the same period last year. Overseas subsidiaries, including Samsung Re, the company’s reinsurance arm, achieved cumulative insurance profit of 22.5 billion won, a 31% increase year-on-year, maintaining balanced growth in both revenue and profit.
In asset management, investment profit rose to 809 billion won in the third quarter, up 20.2% year-on-year, driven by gains from stocks and alternative investments amid a strong stock market and the effects of replacing low-yield bonds. Cumulative investment profit was 2.3141 trillion won, an increase of 10.3% from the same period last year. The investment return rate was 3.67%, up 0.22 percentage points year-on-year.
As of the end of September, the risk-based capital ratio (K-ICS) stood at 275.9%, up 11.4 percentage points from the end of last year.
Gu Youngmin, Chief Financial Officer of Samsung Fire & Marine Insurance, stated, "Despite internal and external uncertainties and intense market competition, all divisions of the company are responding swiftly and proactively, focusing on differentiating our core business competitiveness. Through a profitability-centered, sustainable growth strategy, we will strive to achieve the best results in 2025 and thoroughly prepare for 2026, which will be a turning point for further growth."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
