Samsung Life Insurance (A032830) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated net profit of KRW 2.1 trillion in 2024, up 11.2% year-on-year, driven by strong health product sales, insurance, and investment gains.

• New business CSM exceeded annual target, reaching KRW 3.3 trillion, with health products comprising 58% of new business CSM.

• Maintained industry-leading exclusive FC channel, adding over 5,500 agents, totaling over 37,000 agents.

• Dividend per share increased 21.6% to KRW 4,500, with total dividends at KRW 808 billion, targeting a midterm payout ratio of 50%.

• K-ICS ratio expected at 180% as of Dec 2024, maintaining sufficient capital despite regulatory tightening.

Financial highlights

• CSM balance rose by KRW 0.7 trillion to KRW 12.9 trillion, a 5.3% increase year-on-year.

• Investment yield reached 3.09% through asset diversification; invested assets totaled KRW 214 trillion.

• Shareholders' equity at KRW 32.7 trillion, down KRW 11.6 trillion year-on-year due to regulatory changes and lower Samsung Electronics share price.

• Insurance service results contributed KRW 542 billion; investment profit totaled KRW 2,272 billion.

• Protection persistency ratio at 90% (13th month) and 69% (25th month), maintaining high industry standards.

Outlook and guidance

• Plans to further expand health product mix to 70% of new business CSM in 2025.

• Targeting insurance profit above KRW 1 trillion for 2025, with continued focus on high-quality new business and efficiency improvements.

• Aims to maintain K-ICS ratio at low-to-mid 180% in 2024, with a minimum target of 150% under stress scenarios.

• FY25 strategy focuses on expanding high-margin health insurance, digital competitiveness, and overseas business.

• Mid-term shareholder return policy aims for a 50% payout ratio within the next three to four years.