Samsung Fire & Marine Insurance has become the first private company in South Korea to receive an 'AA' credit rating from the global credit rating agency Standard & Poor's (S&P).
On August 2, Samsung Fire announced that it has upgraded its long-term insurance payment capability rating and issuer credit rating from 'AA-' to 'AA' by S&P.
This 'AA' rating is equivalent to the sovereign credit rating of South Korea, marking a unique achievement among domestic private companies.
S&P cited several factors for the upgrade, including robust asset-liability management, excellent capital adequacy maintained after the introduction of International Financial Reporting Standards (IFRS 17), stable profitability, and strong internal capital generation capabilities. The agency also positively assessed Samsung Fire's leading position in the domestic non-life insurance market and its diversification of revenue sources through global business expansion.
Specifically, S&P projected that Samsung Fire's combined ratio, which was approximately 91% last year, will gradually improve to between 88% and 91% over the next two years, a level considered competitive compared to global insurers.
With this credit rating upgrade, Samsung Fire expects to enhance its competitiveness in large-scale risk coverage areas, including corporate insurance, specialty insurance, and project risk underwriting.
The upgrade is also anticipated to positively impact its global business expansion. S&P noted that Samsung Fire's strengthened capital base would sufficiently support the capital needs during its overseas business expansion, and the contribution to profits from its investment in the Lloyd's insurer Canopius is expected to continue to grow.
A representative from Samsung Fire stated, "We will continue to provide more stable insurance services to our customers and grow as a trusted global top-tier insurer in the corporate and global markets."
* This article has been translated by AI.
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