Samsung Life Insurance (A032830) Q2 2024 earnings summary

Executive summary

• Consolidated net profit for H1 2024 reached KRW 1,369 billion, up 40.5% year-on-year, driven by strong insurance service results, health market expansion, and higher investment profit.

• CSM (Contractual Service Margin) balance increased to KRW 12.7 trillion as of June 2024, with robust growth in health new business CSM, now comprising 54% of new business.

• Exclusive channel remains the primary driver of new business, accounting for 73% of new business APE, with agent headcount rising significantly.

• Insurance service results reached an all-time high, supported by stable CSM amortization and improved efficiency.

• Investment profits increased due to strong performance from consolidated subsidiaries and asset diversification.

Financial highlights

• Total assets as of June 2024 were KRW 320 trillion; invested assets at KRW 222 trillion.

• Shareholders' equity stood at KRW 41.5 trillion, down KRW 2.8 trillion year-to-date, mainly due to regulatory tightening of discount rates.

• Insurance profit for H1 was KRW 712 billion; investment profit was KRW 1.1 trillion, up from KRW 563 billion in H1 FY23.

• Q2 insurance service results hit KRW 444 billion, an all-time high since IFRS 17 adoption.

• Investment yield for H1 was 3.3%, supported by diversified assets and stable dividend income.

Outlook and guidance

• Year-end CSM balance expected to reach KRW 13–13.5 trillion, with annual new business CSM guidance raised to at least KRW 3.2–3.3 trillion.

• Plans to maintain strong insurance profit by focusing on high-margin health products and efficiency management.

• Shareholder return policy targets a 50% payout ratio in the mid to long term (3–4 years), with gradual increases starting this year.

• K-ICS ratio projected in the 200–210% range as of June 2024.