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% YoY, with consolidated pretax profit at KRW 1,723.8 billion and operating profit at KRW 1.72 trillion.

• Insurance revenue for H1 2024 was KRW 8,287.4 billion, with total assets at KRW 84.3 trillion and a K-ICS solvency ratio of 278.9%.

• Strong growth in long-term insurance new premium sales (up 24.3% YoY) and CSM volume (up KRW 652.5 billion from end-2023), with new business CSM up 13.6% YoY.

• Investment yield improved to 3.5% (up 0.36pp YoY), with investment profit up 48.6% YoY to KRW 519 billion.

• Number of customers reached 12.38 million, up 0.77 million YoY; maintained top-tier credit ratings and industry-leading market share in Korea.

Financial highlights

• 1H 2024 consolidated revenue: KRW 11,033.7 billion; operating income: KRW 1,679.3 billion; net income: KRW 1,314.4 billion.

• Long-term insurance profit rose 5.3% YoY to KRW 905 billion; auto insurance revenue was KRW 2,796.9 billion, with insurance profit down 26.1% YoY to KRW 149.3 billion.

• General insurance revenue: KRW 1,264.1 billion (up 12.7% YoY); insurance profit down 18% YoY to KRW 116.5 billion.

• Investment profit surged 48.6% YoY to KRW 519 billion, with investment yield up 0.36pp to 3.5%.

• Direct written premiums grew 3.3% YoY to KRW 10.43 trillion, led by long-term and commercial lines.

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.

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

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

• Ongoing review of capital allocation and dividend policy to maintain stable shareholder returns.