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 a 17.4% decline 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 shareholder returns and future growth.

• Total customers increased by 0.61 million to 13.43 million.

Financial highlights

• Long-term insurance CSM volume expanded to KRW 14,167.7 billion, with a 1.7x improvement in CSM multiple in H2 versus H1.

• Insurance profit for long-term insurance was KRW 1,507.7 billion, down 4.4% year-over-year.

• 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 grew 6.1% year-over-year, but profit declined 2.8% to KRW 170.8 billion due to higher loss ratios; HQ profit reached 171bn KRW, supported by revenue growth and increased overseas subsidiary contributions.

• Investment profit reached KRW 2,981.3 billion, up 13.8% year-over-year, with a 3.44% investment return; investment income grew 9.1% to 5.37tn KRW.

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.

• Auto insurance pricing will be revamped, and commercial insurance will undergo portfolio rebalancing to improve profitability.

• Global business, especially through Canopius and Samsung Re, will be the main growth engine, targeting regional expansion and new product lines.

• Commitment to progressive increase in shareholder return to 50% payout ratio by 2028.