As the domestic insurance market faces growth limitations due to low birthrates and an aging population, the life insurance industry is increasingly focusing on expanding into overseas markets. Samsung Life Insurance is bolstering its international strategy based on strong performance from its Thai subsidiary.
According to data from the Financial Supervisory Service on May 18, Samsung Life's Thai subsidiary reported a net profit of 10.4 billion won in the first quarter of this year, a 63% increase from 6.4 billion won in the same period last year. During this time, assets grew by 11.7% to reach 1.34 trillion won. The K-ICS (Korea Insurance Capital Standard) ratio stood at 323% at the end of the first quarter, significantly exceeding the Thai insurance authority's minimum requirement of 140%.
Established in 1997, Samsung Life's Thai subsidiary was the first overseas venture by a domestic life insurer. The company is positioning Thailand as a key hub in Southeast Asia, expanding its business through bancassurance partnerships and local investments. Currently, it operates four branches and 133 sales offices in major regions of Thailand, primarily focusing on a consultant-based sales organization.
The Thai insurance market is witnessing a growing demand for health and protection products, driven by an expanding middle class and rising incomes. According to the Organization for Economic Cooperation and Development (OECD), the size of life insurance premiums in Thailand has increased from $3.2 billion in 2000 to an estimated $19 billion by 2024.
Buoyed by local business growth, Samsung Life has also indicated the possibility of further overseas investments. During a conference call on May 14 regarding its first-quarter results for 2026, the company stated, "Our businesses in Thailand and China are growing rapidly, and profitability is improving. Based on this experience, we are exploring new merger and acquisition opportunities."
Industry experts believe that the structural slowdown in the domestic market, exacerbated by low birthrates and an aging population, is driving the push for overseas expansion. The popularity of whole life insurance, a core product in the life insurance sector, is also waning.
Hanwha Life is noted as one of the most aggressive domestic life insurers in expanding its overseas operations. The company is strengthening its local sales in Vietnam and Indonesia and has recently acquired a bank in Indonesia, pursuing a strategy that integrates insurance and finance.
An industry insider remarked, "As it becomes increasingly difficult to generate stable profits in the domestic insurance market due to demographic changes, the need for overseas market expansion is growing. However, international operations require a long-term approach due to differences in language, culture, and regulatory environments, which is why this trend is predominantly led by larger firms."
* This article has been translated by AI.
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