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

Executive summary

• Net profit attributable to controlling shareholder for Q3 2024 was KRW 1.87 trillion, up 13.8% year over year, with consolidated pre-tax income at KRW 743.8 billion and net income at ₩1.83 trillion.

• Operating profit rose 11.8% year over year to KRW 2.46 trillion, with strong investment profit growth (+103.8% YoY) and insurance revenue for FY'24 Q3 at ₩12.62 trillion.

• Total assets reached ₩83.7 trillion, and the solvency ratio (K-ICS) stood at 280.6% as of September 2024, reflecting strong capital adequacy.

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

• Credit ratings remain at AA- (S&P) and A++ (A.M. Best), reflecting strong capital and risk management.

Financial highlights

• Long-term insurance cumulative profit reached KRW 1.33 trillion, up 2.9% year over year, 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 insurance revenue increased 10.4% year over year, but cumulative profit fell 22.9% to KRW 150.1 billion due to higher loss ratio from high-risk events.

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

• Insurance revenue by segment: General insurance ₩1.91 trillion, Auto ₩4.21 trillion, Long-term ₩6.50 trillion.

Outlook and guidance

• Shareholder return policy remains progressive, targeting a 50% payout ratio, with final DPS to be disclosed after book closing.

• Capital management plan is under review due to pending regulatory and tax changes; Value-up disclosure timeline adjusted accordingly.

• Regulatory impact on K-ICS ratio expected to be minimal for 2024, with a minimum K-ICS target of 200%.

• The company maintains a positive outlook, supported by robust capital, high solvency, and stable earnings.

• Channel and product strategies will leverage multi-channel distribution and innovation to maintain competitive advantage amid evolving regulatory and market dynamics.