Samsung Fire & Marine Insurance (000810) H1 2024 earnings summary

Executive summary

• Net profit attributable to majority interest for H1 2024 was KRW 1,312.4 billion, up 8.2% year-over-year, driven by stable underwriting profit and strong investment returns.

• Consolidated pretax profit for H1 2024 was KRW 1,723.8 billion.

• Operating profit increased 6.6% year-over-year to 1.7tn KRW.

• Number of customers grew by 0.77 million year-over-year, reaching 12.38 million.

• Strong growth in long-term insurance new premium sales (up 24.3% YoY) and CSM volume (up KRW 652.5 billion from end-2023).

Financial highlights

• Insurance profit for H1 2024: KRW 904.8 billion (up 5.3% YoY) for long-term insurance.

• Auto insurance revenue: KRW 2,796.9 billion, flat YoY; insurance profit down 26.1% YoY to KRW 149.3 billion due to higher loss ratio.

• General insurance revenue: KRW 800.2 billion (up 12.7% YoY); insurance profit down 18% YoY to KRW 116.5 billion.

• Investment profit increased 48.6% year-over-year to 519bn KRW, with investment yield up 0.36 percentage points.

• Direct written premiums increased 3.3% year-over-year to 10.4tn KRW.

Outlook and guidance

• Focus in H2 on high CSM margin products, persistency, and efficiency to sustain CSM growth.

• Plans to manage loss and expense ratios, especially in auto and general insurance, amid market competition and natural disaster volatility.

• Capital management policy targets maximizing corporate value through efficient use of excess capital, with a focus on ROE and healthy capital levels.

• Shareholder return strategies include potential DPS increases and share buybacks.

• Ongoing portfolio diversification and risk management in response to financial market uncertainties and regulatory changes.