Samsung Life Insurance (A032830) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 rose 2.1% year-over-year to ₩635.3 billion, driven by CSM amortization, improved operating variance, and investment profit.

• Health segment now represents 74% of new business CSM, reaching a record high and contributing to a CSM balance of ₩13.3 trillion, up ₩0.4 trillion year-to-date.

• Focused on expanding market share in health, improving sales channel efficiency, and increasing agent count by over 2,000 year-to-date.

• Shareholders' equity decreased by KRW 1.2tn to KRW 31.5tn due to regulatory tightening of the discount rate.

Financial highlights

• Investment yield reached 3.98% in Q1 2025, supported by asset diversification.

• Insurance service results improved 3.6% YoY, with CSM amortization profit and operating variance contributing to growth.

• Investment profit remained stable at KRW 565bn (+0.4% YoY), supported by steady net interest margin and increased dividend income.

• Consolidated net profit attributable to controlling shareholders was KRW 635bn, up from KRW 622bn in 1Q FY24.

Outlook and guidance

• Targeting new business CSM above ₩250 billion monthly and over ₩3 trillion for full year 2025.

• Expecting CSM balance to exceed ₩13 trillion by year-end, with more specific guidance to be provided after Q2.

• Committed to increasing shareholder return ratio toward 50% as recurring profit and ROE improve.

• K-ICS ratio expected to remain at the 180% level as of March 2025, indicating strong capital adequacy.