Good morning. I am Kim Jae-hong, head of the IR team. Thank you for joining Samsung Fire & Marine Insurance's Q1 2022 earnings conference call. We will begin with our CFO Hong Seong-woo's presentation on key earnings highlights and future business strategy, followed by Q&A, during which answers will be provided by the management team. The whole session will last around one hour. Now, I invite our CFO, Hong Seong-woo.
Good morning, this is CFO Hong Seong-woo. Allow me to present on the Q1 2022 earnings results of the company. Q1 pre-tax profit was KRW 560.2 billion, with net profit at KRW 409.1 billion, down 5.2% year-over-year. Excluding the one-off profit in Q1 of last year, net profit recorded a growth of more than 28%.
First, long-term business saw year-over-year decline in new sales following constrained sales activities on the back of the sudden spread of the COVID pandemic. While versus the second half of last year, we are seeing top line recovery as the CSM-yielding higher margin products, such as health, disease, and children's insurance, are growing their share out of the new sales. Also, on the back of the effort to improve the efficiencies of the value in force, 25th month persistency ratio improved by more than 16 percentage points year-over-year, bonding well and in sync with the plan, while risk and loading premium was also up by 8.1%. In the near term, uptick in claims for cataract surgery and medical indemnities, risk loss ratio was up 1.5 percentage points year-over-year to report 88.1%.
Since April, however, loss ratio trend has stabilized as the regulator tightened standards for claims payment and through the company's own efforts in medical claims review. Also, to secure sources for future earnings, we will bring recovery of sales activities for our offline sales organization and expand new businesses by strengthening product competitiveness. Meanwhile, through sustained efforts behind efficiency improvements, including the persistency ratio, we will continue on with the uptrend in loading premium. Auto insurance on the back of Omicron, which led to a surge in number of people under quarantine, accident rates fell, driving the combined ratio down 4.7 % points year-over-year to 90.1%.
The company, with the improvement in the profitability of our auto insurance, will continue on with its competitiveness in the top line generation, and we will also continuously focus on the high quality policies so that we may sustain our top line trend. After the second quarter, in order to prepare against a rise in loss ratio with the resumption of the normalcy and lifting of social distancing measures, we plan to improve claims process efficiency and strengthen claims management so as to secure the basis for earnings generation.
2분기 이후에도 국내 시장에서의 매출 확대와 리스크 변동성 축소 노력을 지속하여 안정적 손익 기반을 확보해 나가겠습니다.
General line insurance saw loss ratio improvement of 17.8 percentage points year-over-year, reporting 69.5% on efforts behind strengthening of profitability, including the optimization for underwriting and the reinsurance policies. From Q2 onwards, we plan to continue to drive top line in the domestic market and minimize risk volatility.
한편, Canopius 사와의 사업 협력은 양 사가 보유한 자산과 역량을 결합하여 북미, 아시아 지역을 중심으로 협업을 본격화하고 있습니다. 이를 통해 2,000억 원 이상의 협력 매출을 창출할 것으로 예상하며, 향후 지속적으로 협업을 확대하여 가시적인 재무 성과를 낼 수 있도록 추진할 것입니다.
We are also placing full force behind the collaboration with Canopius in bringing the capabilities and assets of both companies for mainly the North American and the Asian markets. We expect this to bring more than KRW 200 billion in cooperation-based revenue this year, and with further broadening of such collaboration on a sustained basis, we will drive tangible financial performance.
다음은 자산운용 부문입니다. 투자 이익은 5,610억 원을 기록하였고, 투자 이익률은 3.0%로 전년 比 0.6%p 감소했으나, 지난해 일회성 배당입 체외시 투자 이익률은 전년 比 0.1%p 개선되었습니다.
Next is asset management. Investment profit reported KRW 561 billion, with investment yield at 3%, down 0.6 percentage points year-over-year. Excluding the one-off dividend gain impact, investment yield improved 0.1 percentage points versus last year.
다만 최근 금리 및 환율의 급격한 상승, 스태그플레이션의 우려 등으로 주식시장의 위축이 이어지며 금융시장의 불안감이 확대되고 있습니다. 회사는 배당 수익형 자산 및 고이원 자산의 비중을 지속 확대하는 등 포트폴리오 개선 노력을 지속하여 중장기적 투자 이익률을 제고해 나가겠습니다.
Recently, there were rate hikes and steep rise in the FX rate, creating concerns around stagflation, which is in turn constraining the equities market as nervousness spreads across the greater financial market. Against this backdrop, we plan to focus on improving mid to long-term profitability of the portfolio by way of increasing the mix of higher yielding assets like dividend bearing assets.
다음으로 현재 진행 중인 주요 추진 사항에 대해 간단히 말씀드리겠습니다. 먼저 내년으로 다가온 IFRS 17 도입과 관련, 감독당국과 최종 제도 점검이 진행 중이나, 내부적으로는 유지율 개선 등 효율 중심의 경영 체계 안착을 위한 노력을 지속하고 있으며, CSM 확보를 위해 고수익 상품의 매출 확대를 추진 중으로 IFRS 17 도입 이후 안정적인 손익 시현이 가능하도록 철저히 준비할 것입니다.
Next, I will briefly highlight key tasks being undertaken by SFMI. First, on the upcoming implementation of IFRS 17 next year, we are in the process of making the final checks on the regime together with the regulators, while internally, we are making our internal business framework more geared towards efficiency, including placing efforts behind improving the persistency performance. We are also working to drive higher revenue from higher margin products to secure contractual service margins. As such, we plan to make thorough preparations for stable earnings profile after the adoption of IFRS 17.
다음으로 디지털 사업 추진 현황에 대해 말씀드리겠습니다. 회사는 독자 플랫폼인 삼성화재 다이렉트 착을 기반으로 고객 라이프스타일에 맞는 상품과 서비스를 지속 확장하며 생활종합 플랫폼으로 성장하고 있습니다. 또한 지난달 런칭한 삼성금융통합플랫폼 모니모를 통해 삼성 금융사 간 시너지를 극대화하여 새로운 고객 유입 채널로 적극 활용할 계획입니다.
Lastly, on the company's digital business initiatives. Based on SFMI's 다이렉트 착, which is our standalone platform, we are evolving into a daily life platform as we expand product and services befitting the customer's lifestyle. Through Monimo, which is Samsung's integrated financial platform launched last month, we plan to maximize synergies across its affiliates and actively use it to attract inflow of new customers.
디지털 헬스케어 사업은 기존 당사 고객 대상의 서비스에서 벗어나 전 국민이 사용할 수 있는 개인 맞춤형 건강관리 서비스인 Anyfit+로 새롭게 탈바꿈하여 이번 달 런칭을 준비 중에 있으며, 기업체 임직원을 대상으로 건강관리 프로그램을 제공하는 B2B 수익 모델도 개발하고 있습니다.
For the digital healthcare business, we are working on the launch of Any fit+ this month, newly revamped and personalized healthcare management services that could be used by the nation's entire population to be more than a service just for the company's customers. We are also developing a B2B business model that offer health management programs for the employees of companies.
올해 1분기 삼성화재는 대내외적으로 어려운 경영 환경에도 불구하고 시장의 예상치를 상회하는 성과를 시현하였습니다. 향후 엔데믹 전환에 따른 손해액 증가 등 불확실성이 가중될 것으로 예상되지만, 수익성 중심의 성장과 효율 개선 노력을 지속하여 안정적 수익 기반을 이어나가겠습니다. 감사합니다.
During the first quarter, despite difficult operational backdrop, both internal and external, we outperformed market expectations. Although we expect there to be added uncertainties such as rising claims as we transition from pandemic to endemic, we will continue on with a steady basis of earnings through sustained efforts behind efficiency improvements and profit-driven growth. Thank you.