In This Article:
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New Business CSM Increase: KRW834.6 billion Q-o-Q in the third quarter.
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CSM Balance: Increased by KRW0.7 trillion from the start of the year, recording KRW13 trillion.
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Net Profit Attributable to Controlling Shareholders (Q3): KRW673.6 billion on a consolidated basis.
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YTD Consolidated Profit Attributable to Controlling Shareholders: KRW2,421 billion, up KRW592.4 billion Y-o-Y.
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Insurance Service Results: KRW1.187 trillion.
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Investment Profit: KRW1.53 trillion.
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Health Products New Business CSM: 62% of new business CSM as of the third quarter.
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YTD New Business CSM: KRW2.5 trillion.
Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Samsung Life Insurance Co Ltd (XKRX:032830) reported a significant increase in new business CSM, up by KRW834.6 billion quarter-over-quarter, driven by strong sales of health products.
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The company's CSM balance increased by KRW0.7 trillion from the start of the year, reaching KRW13 trillion, indicating strong future earnings potential.
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Year-to-date consolidated profit attributable to controlling shareholders rose by KRW592.4 billion year-over-year, totaling KRW2,421 billion.
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Samsung Life Insurance Co Ltd (XKRX:032830) achieved a solid year-to-date new business CSM of KRW2.5 trillion, with health products accounting for 62% of new business CSM.
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The company is committed to expanding total shareholder return to 50% in the mid to long term, reflecting a focus on enhancing shareholder value.
Negative Points
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The solvency ratio has decreased compared to previous quarters, with the KIC ratio dropping from 219% at the end of last year to between 190% and 200% as of September.
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Regulatory tightening in Korea, including a decrease in the discount rate and an extension of the last liquid point, has made the KIC scheme more conservative.
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Samsung Life Insurance Co Ltd (XKRX:032830) faces challenges from growing volatility in domestic and global financial markets, which could impact future earnings.
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The company anticipates potential valuation losses on some alternative investments due to interest rate and share price volatility.
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There is a negative balance of KRW3 trillion in surrender value reserves, which is expected to turn positive only by late 2026 or end of 2027, depending on new business sales.
Q & A Highlights
Q: What is Samsung Life's target solvency ratio, and how does it plan to manage volatility in solvency capital? A: Jungsun Lee, Head of RM, explained that Samsung Life aims to maintain a solvency ratio between 200% to 220% in the long term, similar to European insurance companies. Recent regulatory tightening in Korea has led to a more conservative approach, with a target around 180% to 190%. The company is exploring measures like purchasing ultra-long bonds and using coinsurance to manage volatility.