Samsung insurers post 1.3 tn won profit, rival major banks

Résumé détaillé

Samsung Life Insurance and Samsung Fire & Marine Insurance posted combined third-quarter net profit of nearly 1.3 trillion won ($960 million), rivaling the earnings of South…

Samsung Life Insurance and Samsung Fire & Marine Insurance posted combined third-quarter net profit of nearly 1.3 trillion won ($960 million), rivaling the earnings of South Korea’s major commercial banks as stronger insurance operations helped offset weaker investment results.

The two insurers reported combined net profit attributable to controlling shareholders of 1.28 trillion won, according to industry figures released on Thursday.

Samsung Life earned 792 billion won, up 9.6 percent from a year earlier, while Samsung Fire & Marine posted 493.2 billion won, down 8.3 percent.

Their combined profit fell short of KB Kookmin Bank’s 1.53 trillion won but exceeded Shinhan Bank’s 1.22 trillion won, Hana Bank’s 1.19 trillion won and Woori Bank’s 1.02 trillion won.

Although the comparison involves the combined earnings of two insurance companies against those of individual banks, the results underscore the insurers’ substantial earnings capacity.

Samsung Life’s insurance service result more than doubled to 529 billion won, up 102.4 percent from a year earlier.

The improvement was driven largely by a turnaround in the difference between actual insurance claims and expenses and previously estimated amounts. This measure swung to a surplus of 137 billion won from a deficit of 54 billion won a year earlier.

Investment profit, however, fell 21.9 percent to 541 billion won, reflecting valuation losses on financial assets amid rising market interest rates and declining share prices.

Separately, valuation gains on Samsung Life’s holdings in Samsung Electronics increased by 53.4 trillion won from the end of last year through September. The gains were recognized in other comprehensive income rather than net profit, strengthening the insurer’s capital position.

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