In This Article:
-
Consolidated Net Profit: KRW2.1 trillion, increased by 11.2% year on year.
-
CSM Balance: KRW12.9 trillion, increased by KRW7 trillion year to date.
-
New Business CSM: KRW3.3 trillion, with a CSM margin of 10.5x.
-
Dividend Increase: Raised by 21.6% compared to the previous year.
-
Invested Assets: KRW214 trillion, with an investment yield of 3.09%.
-
Delinquency Ratio: 0.31% in the fourth quarter.
-
Total Assets: KRW312 trillion as of December 2024.
-
Total Liabilities: KRW279 trillion, with insurance liabilities at KRW203 trillion.
-
Shareholders' Equity: KRW32.7 trillion, decreased by KRW11.6 trillion year on year.
-
K-ICS Ratio: Maintained within the 180% level for December 2024.
-
Dividend Per Share (DPS): KRW4,500 for 2024, an increase of 21.6% year on year.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Samsung Life Insurance Co Ltd (XKRX:032830) achieved a record consolidated net profit of KRW2.1 trillion in 2024, marking an 11.2% increase year-on-year.
-
The company successfully increased its CSM balance by KRW7 trillion year-to-date, reaching KRW12.9 trillion, driven by strong health product sales.
-
Samsung Life Insurance Co Ltd (XKRX:032830) raised its dividend by 21.6% compared to the previous year, reflecting its commitment to shareholder returns.
-
The company expanded its exclusive distribution channel, adding approximately 5,500 agents, which contributed to securing high-quality new business CSM.
-
Despite a challenging macro environment, Samsung Life Insurance Co Ltd (XKRX:032830) maintained a low delinquency ratio of 0.31% and achieved an investment yield of 3.09% through asset diversification.
Negative Points
-
The company's CSM margin fell slightly due to falling interest rates and regulatory changes, impacting profitability.
-
Samsung Life Insurance Co Ltd (XKRX:032830) faced a KRW300 billion loss from power-type annuity products due to improved life expectancy assumptions.
-
The K-ICS ratio is expected to decrease gradually due to lower interest rates and regulatory tightening, posing a challenge to capital soundness.
-
Shareholders' equity decreased by KRW11.6 trillion year-on-year, primarily due to a drop in Samsung Electronics' share price and falling interest rates.
-
The company incurred KRW500 billion in costs from loss-making contracts, raising concerns about future liabilities and profitability.
Q & A Highlights
Q: Are there plans for the CEO of Samsung Life to participate more actively in earnings calls, similar to global practices? Also, can you address the gap between expected and actual solvency ratios? A: Wan-Sam Lee, Vice President: We will consider having our CEO or another executive participate more actively in future calls. The gap in solvency ratios is due to unexpected regulatory changes and lower interest rates. We are exploring measures to improve our K-ICS ratio, aiming to maintain it at or above the card level over the next 3-5 years.