The long-term insurance sector saw significant growth, with the insurance contract margin (CSM) multiple improving to 14.2 times, a 2.3-fold increase year-on-year. The total CSM also rose by 301.5 billion won from the end of last year, reaching 14.4692 trillion won.
Insurance profit reached 440 billion won, up 4.9% from the previous year. The retention rates for 25-month and 37-month policies also improved, rising by 7.1 percentage points and 5.0 percentage points, respectively, continuing the trend of enhanced efficiency metrics.
In the auto insurance sector, despite a prolonged deterioration in loss ratios, the company shifted to a portfolio strategy focused on high-quality contracts, resulting in an increase in premium income per policy compared to the previous quarter. Although insurance revenue decreased by 1.0% year-on-year to 1.3636 trillion won, the insurance profit was maintained at a deficit level of 9.6 billion won.
The general insurance sector benefited from growth in domestic and international operations, with insurance revenue increasing by 9.6% year-on-year to 449.1 billion won. The loss ratio improved by 9.9 percentage points to 53.6%, thanks to refined rate structures and a reduction in large claims, leading to an insurance profit of 104.7 billion won, an increase of 55.1 billion won.
In asset management, improvements in the bond portfolio and operational efficiency strategies led to an expansion in interest and dividend income. Consequently, the investment return rate for the first quarter was 3.68%, with investment income based on managed assets reaching 853.7 billion won, a 15.4% increase from the previous year.
The solvency ratio (K-ICS) improved to 270.1%, up 7.3 percentage points from the end of last year (262.9%).
Koo Young-min, Chief Financial Officer of Samsung Fire & Marine Insurance, stated, "As a result of proactive structural improvements under a solid and consistent profitability-focused management policy, the first quarter insurance profit has turned to a growth trend. We will strengthen our core competitiveness through continuous innovation across all business sectors and establish new growth foundations."
* This article has been translated by AI.
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