Samsung Fire & Marine Insurance (000810) Q4 2024 earnings summary

Executive summary

• Net profit increased 14% YoY to KRW 2.0736 trillion in 2024, the first non-life insurer in Korea to surpass KRW 2 trillion in net profit, driven by strong investment returns and stable long-term insurance profit.

• Operating profit rose 12.6% YoY to KRW 2.7445 trillion, with investment profit up 101.8% to KRW 845.3 billion.

• Number of customers grew by 0.87 million to 12.82 million YoY.

• Outlined 2025 strategies focusing on product innovation, channel competitiveness, and global expansion.

Financial highlights

• Long-term insurance profit grew 2.5% YoY to KRW 1.5776 trillion, with CSM balance rising by KRW 771.1 billion to KRW 14.0739 trillion.

• Auto insurance maintained profitability with a combined ratio of 98.3% and profit of KRW 95.8 billion despite rate cuts and competition.

• P&C insurance revenue increased 10.4% YoY, but profit declined 13.9% YoY to KRW 175.7 billion due to large loss events.

• Investment yield improved to 3.40%, up from 2.80% YoY, with investment profit up 19.7% YoY to KRW 2.6193 trillion.

• Persistency and loss ratios in long-term insurance stabilized, supporting CSM growth.

Outlook and guidance

• 2025 strategy targets balanced growth in quantity and quality, focusing on CSM growth, process automation, and global expansion.

• Shareholder return policy aims for a progressive increase to a 50% payout ratio and cancellation of treasury shares by 2028.

• Auto insurance faces profitability pressures from rate cuts and inflation; P&C market growth expected to slow due to competition.

• Asset management anticipates increased market volatility amid domestic and external uncertainties.

• Targeting sustainable ROE of 11–13% and a K-ICS solvency ratio of 220%.