Samsung Fire & Marine Insurance (000810) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated pre-tax income was KRW 743.8 billion; net profit attributable to controlling shareholder was KRW 554.1 billion; cumulative net profit reached KRW 1.87 trillion, up 13.8% year over year.

• Net profit increased by 13.8% year-over-year, driven by stable long-term insurance profit and strong investment returns.

• Operating profit rose 11.8% year-over-year, with investment profit up 103.8% year-over-year.

• Number of customers reached 12.57 million, up 0.76 million year-over-year.

Financial highlights

• Long-term insurance cumulative profit rose 2.9% year over year to KRW 1.33 trillion, with CSM volume at KRW 14.18 trillion, up KRW 878.5 billion year to date.

• Auto insurance Q3 profit dropped 66% year over year to KRW 14.2 billion, but cumulative profit was KRW 163.5 billion with a combined ratio of 96.1%.

• Commercial/P&C insurance revenue increased 10.4% year over year, but cumulative profit fell 22.9% to KRW 150.1 billion due to higher loss ratio and larger claims.

• Investment yield improved to 3.46%, up 0.5 percentage points; cumulative investment profit was KRW 2.10 trillion, up 23.9% year over year.

• Insurance revenue grew 4.2% year-over-year to 12.8tn KRW for 1-3Q.

Outlook and guidance

• Shareholder return policy remains progressive, targeting a 50% payout ratio; timeline for disclosure aligns with book closing.

• Capital management plan is under review due to pending regulatory and tax changes; final Value-up disclosure will be communicated once finalized.

• Regulatory impact on K-ICS ratio in 2024 expected to be minimal, with strong new business CSM supporting capital adequacy.

• Capital management policy focuses on maximizing corporate value and shareholder returns through efficient use of excess capital.

• Industry competition expected to be influenced by regulatory guidelines and channel expansion; focus remains on product and channel competitiveness.