According to the Financial Supervisory Service's electronic disclosure system on May 14, Samsung Life's net profit attributable to shareholders for the first quarter reached 1.2036 trillion won, marking an 89.5% increase compared to the same period last year.
The rise in investment income, which increased by 125.5% to 1.2729 trillion won, was bolstered by dividend income, increased profits from subsidiaries, and the reversal of a provision worth approximately 400 billion won following a legal victory in an immediate annuity lawsuit last year.
Samsung Fire also saw a slight increase in net profit, supported by stable earnings from long-term insurance. However, the auto insurance sector reported a loss of 9.6 billion won due to premium reductions and an increase in claims. Samsung Fire anticipates improvements in auto insurance loss ratios with the upcoming implementation of the '8-week rule' aimed at curbing excessive medical treatments for patients.
Both companies benefited from the positive impact of Samsung Electronics' stock performance on their financial capabilities. Notably, Samsung Life, the largest shareholder of Samsung Electronics, saw its equity rise from 64.8 trillion won at the end of last year to 83.3 trillion won by the end of March this year, with the increase attributed to 16.6 trillion won in evaluation gains related to Samsung Electronics.
As a result, Samsung Life's K-ICS (solvency) ratio stood at 210% as of the end of March, up 12 percentage points from the end of last year. Samsung Fire also maintained a stable K-ICS ratio in the 270% range, continuing to demonstrate the highest capital strength in the industry.
Samsung Life plans to leverage its increased capital strength to enhance shareholder returns while expanding into new business areas.
Iwan Sam, Chief Financial Officer of Samsung Life, stated, "Since the K-ICS for the first quarter exceeded our target level, we plan to actively utilize surplus funds to enhance shareholder value and as investment resources. We are also considering expanding into new business areas, including overseas mergers and acquisitions in insurance and asset management, as well as healthcare and senior living sectors."
* This article has been translated by AI.
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