Samsung Fire & Marine Insurance (000810) Q4 2025 earnings summary

Executive summary

• Pre-tax profit for FY2025 rose 1.4% year-over-year to KRW 2,783.3 billion, as strong investment returns offset declines in insurance profit.

• Net profit attributable to majority interest was KRW 2,018.3 billion, maintaining the KRW 2 trillion level for two consecutive years despite a one-off corporate tax rate increase and a 2.7% year-over-year decline.

• The Value-Up Plan was implemented, including treasury share cancellation and increased stake in Canopius, supporting future revenue and business synergies.

• Total customers increased by 0.61 million to 13.43 million.

Financial highlights

• Insurance profit declined 17.4% year-over-year to KRW 1,559.8 billion, while investment profit surged 43.5% to KRW 1,213.3 billion.

• Insurance revenue increased 7.8% to KRW 18.66 trillion, with insurance expenses up 13.8%.

• Investment income grew 9.1% to KRW 5.37 trillion; investment yield improved to 3.44%.

• Auto insurance revenue was KRW 5,565.1 billion, flat year-over-year, but insurance profit turned to a KRW 159 billion deficit due to rate cuts and rising claims.

• P&C insurance revenue rose 6.1% year-over-year, but profit declined 2.8% to KRW 170.8 billion due to higher loss ratios.

Outlook and guidance

• Profitability pressure is expected to persist in 2026 due to ongoing competition and rising claims.

• Strategic focus for 2026 includes business model innovation, CSM growth, global expansion, and AI-driven process innovation.

• Plans include revamping auto insurance pricing, rebalancing P&C portfolio, and expanding global business, especially through Canopius and Samsung Re.

• Targeting a 50% shareholder payout ratio by 2028, with progressive increases planned.