Samsung Fire & Marine Insurance reported solid results for the first half of the year, driven by a profitability-focused management strategy.
The company announced on August 13 that its net profit for the first half reached 1.3739 trillion won, a 10.1% increase compared to the same period last year. The net profit attributable to shareholders of the parent company rose by 10.2% to 1.3723 trillion won.
Insurance profit increased by 10.9% to 1.1145 trillion won, while investment profit grew by 22.0% to 788 billion won.
In the long-term insurance sector, profit strengthened as the company focused on internal growth across products, underwriting, and channels, resulting in a 5.6% increase in insurance profit to 880.4 billion won. The insurance contract margin (CSM) multiple improved by 1.1 times to 13.9 times, and the total CSM increased by 427.1 billion won from the end of the previous year to reach 14.5947 trillion won.
The retention rate for protection insurance also improved, with the 25-month and 37-month retention rates rising by 6.0 percentage points and 6.3 percentage points, respectively, compared to the same period last year.
In the auto insurance sector, the company focused on improving its profitability-centered contract portfolio, achieving insurance revenue of 2.74 trillion won in the first half. Although the cost of claims increased due to rising compensation costs, effective profit management and a decrease in accident rates due to reduced driving led to a turnaround in insurance profit, which reached 29.6 billion won in the second quarter.
General insurance benefited from growth in domestic and international operations, with insurance revenue increasing by 11.2% to 942.5 billion won compared to the same period last year. Enhanced management of low-profit sectors and a reduction in large claims improved the loss ratio, resulting in a 75.6% increase in insurance profit to 187.5 billion won.
In the asset management sector, the company continued to invest in high-yield assets to enhance its asset holdings, resulting in stable growth in interest income. Gains from the stock market also expanded, leading to an investment return rate of 3.50% for the first half. Investment profit based on managed assets increased by 16.3% to 1.7498 trillion won compared to the same period last year.
Ku Young-min, Chief Financial Officer of Samsung Fire & Marine Insurance, stated, "We are maintaining solid results based on profitability-centered management and differentiated risk management capabilities. In the second half, we will continue to strengthen our core fundamentals while enhancing corporate and shareholder value through innovations based on artificial intelligence and data."
* This article has been translated by AI.
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