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Samsung Fire Insurance[000810]Announced on the 18th that it will focus on overseas business, digital, and ESG (environmental, social, governance)-oriented management.
On this day, Samsung Fire & Marine Corp. unveiled its management strategy with an amplification of last year’s annual performance.
In the case of overseas business, partnerships with advanced insurance markets and global IT (information and communication) companies will expand in order to overcome the limitations of domestic growth and secure new revenue sources.
Samsung Fire & Marine Insurance has already participated in the management of Canopius, the 4th largest non-life insurance company in the UK’s Lois (specialized insurance market) through investments from 2019 to 2020, and is pursuing a joint venture between a global IT company Tencent and a Chinese subsidiary.
Regarding digital transformation, it plans to increase work efficiency through the establishment of a digital ARS (automatic response system) and RPA (robotic work automation), and also provide differentiated 020 (on-offline linkage business) services for automobiles, long-term insurance, and general insurance. To this end, we will actively promote investment through partnerships with related platform companies and CVC (company-led venture capital).
In addition, SF&MI is also making efforts to’internalize ESG’ by declaring its coal-free policy, expanding investment in new and renewable energy, and implementing digital-based paperless insurance contracts.
For this year’s management strategy, profitability-centered sound management and balanced growth of auto, long-term and general insurance were suggested.
In the case of long-term insurance, the company plans to avoid excessive competition for new personal insurance contracts and focus on qualitative growth centered on insurance premiums.
In auto insurance, the company decided to focus on sales expansion centered on premium contracts with a good combined ratio (loss ratio + business cost), and lay the foundation for a turnaround in insurance profits and losses by continuously securing costs and improving compensation operation efficiency. The reinsurance strategy of general insurance is also re-established, and risk (risk) management is strengthened to ensure stable profit and loss.
Seong-woo Hong, Chief Financial Officer (CFO) of Samsung Fire & Marine Insurance, said, “We will solidify our main business profit base and achieve substantial growth through overseas investment and new business even in an uncertain environment due to coronavirus.”
Last year, Samsung Fire & Marine Insurance’s raw insurance premiums (sales) were 19,5485 billion won, up 3.8% from 2019. By category, auto insurance and general insurance grew 12.6% and 5.8%, respectively, while long-term insurance declined 0.2%.
The combined ratio (loss ratio + business cost ratio) that judges insurance operating efficiency was calculated to be 104.4%, which is 1.5 percentage points (p) lower than last year. The car insurance loss ratio fell by 5.8%p from last year, as the number of vehicles was reduced due to Corona 19, which was the most affected.
Accordingly, last year, Samsung Fire & Marine Corp. achieved a net profit of 766 billion won, 25.9% higher than the previous year. As of the end of 2020, the assets are 91,712 billion won, and the RBC (payment capacity) ratio is around 303.3%.
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