Samsung Life Insurance Co. reported a 2.1% year-on-year increase in first-quarter net profit to 635.3 billion won ($457 million), surpassing analyst expectations in a challenging market environment.
South Korea’s largest insurer posted better-than-anticipated results as FN Guide had projected a 0.53% decline in net profit to 618.8 billion won for the quarter. Revenue climbed 4.1% to 6.33 trillion won ($4.55 billion), while operating profit inched up 1% to 753.9 billion won ($542 million).
The performance was buoyed by a 3.6% improvement in insurance profit to 277.9 billion won, driven by increased amortization gains from Contractual Service Margin (CSM) and improved expected versus actual differences. Investment profit saw minimal growth of 0.4% year-on-year, reaching 563 billion won.
Despite the positive quarterly results, new contract CSM fell 23.3% to 657.8 billion won. The insurer has strategically pivoted toward health coverage, with 74% of new contract CSM now coming from health insurance products.
Samsung Life maintains its industry-leading position with 39,350 exclusive insurance planners and has reinforced its health coverage focus by becoming the first Korean insurer to launch a heavy particle radiation therapy rider. Total CSM increased 3.1% since the beginning of the year to 13.3 trillion won by the end of March.
