In This Article:
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Samsung Fire & Marine Insurance Co Ltd (XKRX:000810) reported a consolidated pretax income of 743.8 billion won for Q3 2024.
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The company achieved a 13.8% year-over-year increase in cumulative net profit, reaching 1 trillion 866.5 billion won.
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Long-term insurance profits rose by 2.9% year-over-year, supported by increased CSM amortization and strong product competitiveness.
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Commercial insurance revenue increased by 10.4% year-over-year, driven by growth in both domestic and global markets.
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Investment yields improved to 3.46%, with cumulative investment profit up 23.9% year-over-year, aided by enhanced operational efficiency and valuation gains on alternative investments.
Negative Points
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Auto insurance profits fell by 66% year-over-year in Q3 due to rate cuts and increased competition.
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The cumulative combined ratio for auto insurance was reported at 96.1%, indicating challenges in managing claims efficiency.
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Commercial insurance faced a 5.4% point increase in loss ratio due to high-risk events, leading to a 22.9% year-over-year decline in cumulative insurance profit.
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Despite revenue growth, the commercial insurance segment's profitability was negatively impacted by increased loss ratios.
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The company faces ongoing competitive pressures in the auto insurance market, affecting top-line revenue growth.
Q & A Highlights
Q: Can you provide more details on the factors driving the increase in long-term insurance profits? A: The Head of IR, Kim Jae Hong, explained that the increase in long-term insurance profits, which rose by 2.9% year over year, was primarily due to an increase in CSM amortization and a steady level of experience variance. This was supported by stronger product competitiveness and proactive channel strategies.
Q: What were the main challenges faced by the auto insurance segment this quarter? A: Kim Jae Hong noted that the auto insurance segment faced challenges due to the impact of rate cuts and increased competition for top-line revenue, resulting in a 66% year-over-year decline in Q3 insurance profit. However, by managing claims efficiency, the cumulative combined ratio was maintained at 96.1%, sustaining a profit streak.
Q: How did commercial insurance perform, and what were the contributing factors to its results? A: The commercial insurance segment saw a 10.4% increase in revenue due to growth in both domestic and global businesses. However, high-risk events led to a 5.4% increase in the loss ratio year over year, which drove cumulative insurance profit down by 22.9% to 150.1 billion.