Good morning and good evening. Thank you all for joining the conference call for the Samsung Fire & Marine Insurance earnings results. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star and one on your phone during the Q&A. Now, we will begin the presentation on Samsung Fire & Marine Insurance's fourth quarter of fiscal year 2025 earnings results.
Samsung Fire & Marine Insurance, good morning! I am Helen Park, Head of IR at Samsung Fire & Marine Insurance. I would like to thank you all for taking the time to participate in today's 2025 year-end earnings results presentation. Today's session will begin with an overview of the fiscal year 2025 business performance and 2026 outlook, followed by a Q&A session. The session is expected to last approximately 1 hour and 20 minutes. With that, I will turn it over to the Chief Financial Officer for the presentation.
Good morning, this is Chief Financial Officer Koo Young-Min. Allow me to present on the Samsung Fire & Marine Insurance's earnings results for fiscal year 2025 and strategies for this year.
Amid heightened market competition and fast-changing operational environment, SFMI in 2025 reported insurance profit of KRW 1,559.8 billion, which was a decline of 17.4% year-over-year. But on investment profit of KRW 1,213.3 billion, a growth of 43.5%, we achieved pretax profit of KRW 2,783.3 billion, up 1.4%.
Despite one-off impact from rise in corporate income tax rate, net profit attributable to majority interest reported KRW 2,018.3 billion, staying within KRW 2 trillion net profit level for two consecutive years.
On top of this, we've driven meaningful results, implementing the Value-Up Plan in stages, which was announced with an objective of shareholder return enhancement.
First round of treasury share cancellation was completed during the first half of the year, while in the second half, we increased our stake in Canopius. Beyond simply getting the equity method gains, we were able to build the basis for future revenue stream, enabling practical business synergies, regional expansion and commercial business portfolio expansion.
Now, moving on to breakdown of business results. For long-term insurance in the second half of the year, with a shift towards margin-focused new business portfolio, we drove 1.7x improvement in CSM multiple versus the first half of the year, generating stable new business CSM. Thus, despite year-end assumption updates, CSM volume expanded to KRW 14,167.7 billion.
보험 손익은 안정적, 연간 안정적 CSM 상각의 확보와 사업 효율화, 사업비 효율 관리에도 누적된 보험금 예비차 축소 영향으로 KRW 1조 5,077억을 기록하며 전년 대비 4.4% 감소하였습니다.
Notwithstanding steady annual CSM amortization gains and efficient management of expenses due to accumulation of claims variance contraction, insurance profit reported KRW 1,507.7 billion, down 4.4% year-over-year.
자동차 보험은 할인 특약 확대 등 가격 중심의 시장 경쟁이 심화되는 중에도 온라인 채널 경쟁력 등을 기반으로 보험 수익 KRW 5조 5천651억을 기록하며 전년과 유사한 수준을 견지하였습니다.
For auto insurance, while the market saw fierce price competition, such as through offering of discount riders, supported by online channel competitiveness, insurance revenue came in at KRW 5,565.1 billion, similar to the level of last year. Insurance profit turned to KRW 159 billion in deficit on the back of rate cut impact and continuing pressures from rise in claims cost. For P&C Insurance, we saw growth from both domestic and global businesses on the back of portfolio solution expansion and specialty insurance, which drove insurance revenue up 6.1% year-over-year. But due to increase in small to mid-scale claims, loss ratio increased 0.9 percentage points, driving annual insurance profit down slightly by 2.8% to KRW 170.8 billion.
In terms of investments on higher valuation gains secured from alternative investments and interest income, which was guided by an investment strategy around higher yielding assets and book yield enhancement, investment return came in at 3.44% or 0.22 percentage points year-over-year. On an AUM basis, we achieved KRW 2,981.3 billion in investment profit, recording a sizable growth of 13.8% versus last year. Moving on to the company's key business strategies for 2026. Firstly, looking at the overall market environment, we expect profitability pressure will persist across the industry following the impact arising from last year's heightened competition and continuing uncertainties such as rising claims.
As such, we will go beyond simply responding to the market moves under the current competitive dynamic, but will fundamentally innovate business structure under a unwavering and consistent approach towards profitability, so as to solidify core competitiveness of the fundamental insurance business. First, for long-term business, which is the cornerstone of the company's revenue and profit, by shifting to business management with a clear focus on future value, we will establish a framework in generating sustainable and decisively dominant CSM. Rather than simply growing new sales, we will drive quality improvement of new businesses through high value-added products and value-based underwriting per contract, and expand moral hazard detection and implement claims automation as we make the shift towards profit-centric framework for assessment, support, and management of efficiency metrics.
Through such efforts, we will be able to stabilize variability in CSM adjustment and experience variance, and focus on strengthening the capabilities around insurance profit management as we seek to achieve tangible growth. For auto insurance, we plan to revamp the pricing framework to normalize insurance premium and redefine customer value based on highly sophisticated data analytics. Through tailored products and marketing, we'll make the shift towards profit-centric portfolio. Moreover, through stronger on-site execution for claims and tech-based efficiency innovation, we will establish a profit-making business structure that can withstand the market.
일반 보험은 손해 보험 대표 사업임에도 국내 사업 성장이 정체된 사항으로, 사업의 자생력을 재정비하고 저수익 섹터에 대한 과감한 조정을 단행하는 포트폴리오 재편을 통해 수익성을 회복해 나갈 계획입니다. 동시에 신규 비즈니스 발굴로 성장 기반 또한 확대해 나갈 것입니다.
Despite the fact that commercial insurance is the hallmark of P&C business, domestic growth has been stagnant. So we will regain profitability by rebalancing business portfolio, which include making bold changes in low margin sectors and regaining self-resilience. At the same time, we will be broadening the basis for growth by discovering new businesses.
해외 시장에서는 Canopius와 Samsung Re를 중심으로 안정 속, 안정적 수익을 창출하는 한편, 새로운 성장 기회를 확보하여 사업 구조를 더 강화해 나가겠습니다. 이를 통해 일반 보험의 전사 손익 기여도를 증대하겠습니다.
In the global market, while sustaining steady stream of revenue through Canopius and Samsung Re, we will be capturing new growth opportunities to fortify our business structure. Through such efforts, we will also be increasing the commercial line contribution to overall profit of the company.
자산운용은 보다 액티브한 투자 전략을 기반으로 투자 이익률을 지속적으로 제고해 나가겠습니다. 리스크 관리 하에 신규 고수익 자산을 발굴하고, 이자 소득 자산의 질적 개선을 통해 전사 이익 기여도를 확대해 나가겠습니다.
We will continue to enhance investment yield based on a more active investment strategy. Under risk management framework, we will also be identifying new and higher yielding assets, and improve the quality of interest bearing assets to make bigger contribution to the company's earnings.
회사는 두 번째로, 리딩 컴퍼니로서 급변하는 환경 가운데 보다 빠르고 과감한 변화를 실행하여 차별화된 신성장 동력을 끊임없이 발굴해 나갈 것입니다.
Secondly, under a rapidly changing environment, as a leading company, we will be quick and bold in driving change to relentlessly explore new and distinctive engine for growth.
the contribution to profit and loss through Canopius, we will utilize it as a strategic base camp for pioneering future markets, such as expanding business in North America and Europe through the full-fledged collaboration model.
We are planning on global business to be the main engine that drives company-wide growth. Canopius will make bigger profit contribution, while collaboration model will fuel regional expansion into North America and Europe, as it works as a strategic base camp for pioneering into future markets.
the discovery of new insurance items and regional expansion, and by strengthening risk management capabilities, stabilize the profit base, thereby solidifying its presence in the Asia region.
For Samsung Re, our plan is to solidify its presence in Asia by diversifying its business portfolio, driven by market expansion and by identifying new insurance product line, and through a stabilized foundation for profit, underpinned by stronger risk management capacity.
또한 회사는 보험 산업의 전통적인 영업 방식을 넘어서, 시장에 보다 민첩하게 대응하는 혁신적이고 과감한 영업 기반 재구축을 추진하고 있습니다.
Also, we are rebuilding operational foundation, one that is innovative and bold, capable of nimbly responding to the market, going beyond the traditional practice of the insurance industry.
조직 성장과 마케팅 역량을 구분하여, 조직 성장 부분에서는 전속 조직의 도입 다변화로 규모를 확대하고, 육성 체계 혁신을 통해 판매력을 강화하여 업계 최고 수준의 전속 조직을 구축할 것이며, 마켓 리딩 부분에서는 우량 계약 위주의 매출 확대와 보유 계약 관리 강화를 통해 사업 효율성을 제고해 나가겠습니다.
By making a distinction between organizational growth and marketing capacity, we will expand the scale through diversified adoption of Tied Agent organization, and will strengthen sales capabilities by innovating the system for fostering talent and build industry's top TA organization. On the market leading side, we will drive sales around high quality policies and strengthen control of in-force contract with a view towards enhancing business efficiency.
신사업 확장과 전사 프로세스 혁신을 통해 성장 기반 또한 공고화할 것입니다. 헬스케어, 모빌리티, 기업 안전 영역에서 새롭게 등장하는 위험을 선제적으로 감지하고, 이를 통해 보험회사의 본연의 사회 안전망 역할을 강화함과 동시에 새로운 수익 기회를 창출해 나가겠습니다.
We will also fortify foundation for growth through new business expansion and corporate-wide process innovation across healthcare, mobility, enterprise safety. We will be preemptively detecting newly emerging risks while strengthening the role as a social safety net, which is the essence of being an insurer, and at the same time, create new revenue opportunities.
아울러 산업 전반의 변화를 가속화하고 있는 AI를 본원 프로세스에 적극 도입함으로써 업무 생산성을 혁신적으로 제고하는 변화를 주도하겠습니다. 특히, 자동차 보험 및 장기 보험의 보상 end-to-end 프로세스 전반에 AI 적용 범위를 확대하여, 업무의 효율성 제고와 동시에 서비스 품질 또한 한 단계 끌어올리겠습니다.
We will also lead the innovation and enhancement in workflow productivity by actively adopting AI into business processes. AI, which is accelerating the transformation across the industry. We will bring AI across end-to-end claims process, particularly for auto and long-term insurance, thereby enhancing work efficiency as well as stepping up service quality.
2026년 삼성화재는 전 사업 부문이 과감한 변화를 실행하여 본업 펀더멘탈을 견고히 하고, 시장의 판을 바꾸는 도전을 통해 새로운 성장 기반을 구축해 나감으로써, 오랜 기간 함께해 주신 주주와 고객, 그리고 사회로부터 신뢰받는 회사로 남을 수 있도록 지속적으로 노력하겠습니다. 감사합니다.
In 2026, SFMI will solidify its business fundamentals, driven by bold changes implemented across the entire business domain, while embarking on challenge that will shift the market landscape as we lay down the foundation for new growth. We will continue to endeavor to be a company worthy of trust by our shareholders, customers, and the greater society, who have stood by us for many such years. Thank you.
이상으로 당사 실적 및 전망에 대한 설명을, 설명을 마치고 이어서 질의응답 시간을 갖도록 하겠습니다. 질의응답은 함께 참석 중인 부문별 담당 임원분들께서 답변드리겠습니다. 원활한 진행을 위해 질문은 한 번에 두 개 이내로 제한하도록 하겠습니다. That concludes the overview of our financial performance and earnings outlook. We will now begin the Q&A session. Our executives from various business divisions are present to respond to your questions. To facilitate and ensure a smooth Q&A session, we kindly ask that each participant limit their questions to a maximum of two at a time. 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 일번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 육번을 누르시면 됩니다. Now, Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one.
For cancellation, please press star two, that is star and two on your phone. 처음으로 질문해 주실 분은 J.P. Morgan의 MW Kim 님입니다. The first question will be provided by MW Kim from J.P. Morgan. Please go ahead with your question.
have improved to 170%. In this situation, I think the concerns about efficient allocation of capital can't help but grow. The part mentioned by the Chief Financial Officer today also seems to include such content, I think. I am curious whether you plan to maintain the 220% level target solvency ratio that the company is currently presenting going forward. And when this figure changes to core capital, how should we interpret it, I'm also curious. And among the surplus capital exceeding this target, today you also mentioned the part about growth, so if you tell me to what extent you see the size that can be allocated to minority shareholders, I would appreciate it. Second, I want to ask regarding the long-term loss ratio. The current 97% level long-term loss ratio seems to be a significantly worsened figure not only compared to last year but also compared to the company's past trend.
특히 회사 이익의 기반이 장기 보험이라는 점에서, 우려가 좀 있습니다. 향후 이년에서 삼년을 전망할 때 장기 손해율이 어느 수준까지 개선될 수 있는지, 말씀해 주시면 감사를 드리겠습니다. 이상입니다.
Good morning, I am Kim Myung-Wook from J.P. Morgan. Thank you for taking my question. I would like to ask you two questions. First one, as of the end of the year, we see that your solvency K-ICS ratio is at 260% and your core capital ratio has improved to 170%. Under this backdrop, I'm sure that the management team, and also as was alluded to by the Chief Financial Officer in the opening presentation, will be thinking about the efficient way to allocate your capital. So my question is this: Do you plan to continue on with the current target ratio of 220%? And if you were to convert that on a core capital basis, how should we, the market, be interpreting what that implies?
Above and beyond the target level, aside from making the investment for growth, would like to know as to what will be the size or the amount that could be used for allocating to the minority shareholders of the company. Second question is on your loss ratio for the long term business. Currently, the risk loss ratio is at 97%, which is, you know, which is quite bad compared to your past trend as well as compared to the previous year. Since our long term business is core pillar behind the company's earnings, would like to know as to what extent would you be able to improve the loss ratio in the coming two to three years?
네, CFO 구용민입니다. 일번 질문에 대해서 답변드리겠습니다. 말씀하신 대로, 전년 말 기준, 킥스 비율은 263%이고, 2027년부터 시행될 기본 자본 비율은 저희가 171%로 알고 있습니다. 근데 저희가 당초에 그 220%, 그 기존 킥스 비율의 220%를 중장기 목표로 조정했던 것은 회사의 보이스크에 대한 포트폴리오 부분, 그다음에 신용등급 유지에 따라 종합적으로 고려한 설정입니다.
최근에도 저희가 그 KICS 비율 권고치 하향과 관련돼서 중장기 목표를 조정할 가능성이 있느냐는 질문을 많이 주셨는데, 사실은 그 신용평가사의 자본 적정성 평가는 감독 기준의 규제 비율이나 권고치하고는 별도로 개별 회사의 리스크 구조라든지 경영 전략을 반영하여 세팅을 하는 것이기 때문에, 지금 현재 사항으로는 목표 변경 계획은 없는 사항이고, 말씀하신 기본 자본 비율에 대한 중장기 목표는 저희가 2027년에 이제 시행이 된다면 거기에 맞춰서 준비를 해야 될 부분이라고 생각합니다. 아울러서 소액 주주에 대한 주주 환원 계획도 말씀을 하셨는데, 소액 주주뿐만 아니라 주주에 대한 환원 계획은 저희가 당초 2025년 1월에 별도 공시를 하면서 2028년까지 주주 환원율을 50%까지 올리겠다고 말씀드렸는데, 큰 틀에서 그 범위 내에서 같이 움직인다고 보시면 될 것 같습니다. 이상입니다.
Yes, this is the Chief Financial Officer, Koo Young-Min. Responding to your first question, you are correct. As of the end of the year, our K-ICS ratio reported 263%, and if we were to convert that to a core capital basis, which would be implemented from most likely 2027, our internal calculation shows that it will be 1%. And you've mentioned whether we have any plans to make any changes to our mid- to long-term target of 220%. Now, this target had been determined based upon the fact portfolio that we currently have, as well as in consideration of us maintaining the credit ratings that we are currently getting. If you...
With regards to any potential for reducing or making changes to the target level in light of the downward adjustment that was made by the supervisors, I can say that when a ratings agency evaluates the adequacy of a creditworthiness of an entity, regardless of the statutory recommendation, they make that decision based upon the risk structure of the company's business and also consider many different business management related factors. So as of this point, we do not have any particular plans to make changes to that target percentage. In terms of the core capital based target, when that regulation is applied in 2027, in accordance with that scheduling, we will be making an appropriate preparation as we go forward.
Also, in terms of your question about shareholder return to the minority shareholders, as a shareholder return as a whole, inclusive of minority or and majority, basically, as per the disclosure that we've made back in January 2025, when we made the Value-Up Plan, our objective is to progressively increase our shareholder return to 50% by year 2028, and we will be working within that scope.
네, 두 번째 질문에 답변 드릴 장기 보험 전략 팀장입니다. 2025년 손해율은 97.2%로, 전년 대비 +9.5 퍼센트 포인트 상승했지만, 이는 2024년 1분기 IBNR 제도 변경에 따른 기저효과입니다. IBNR 제도 제외 시에 손해율은 92.6%로, 전년 대비 +4.8 퍼센트 포인트 상승했습니다.
This is the team leader of Long-Term Insurance Strategy. In 2025, the loss ratio reported 97.2%, which it was an increase of 9.5 percentage points on a year-over-year basis. Now, this is attributable to the base effect going back to first quarter of 2024, with the change in the IBNR related rules. So if we were to take away the IBNR changes, the impact of IBNR changes, the figure would stand at 92.6%, which is a year-over-year increase of 4.8 percentage points.
손해율 상승은, 실손과 연초에 영남권 산불 등의 고액 사고 등의 영향입니다. 다만, 당사는 이분기부터, 수익성 중심 전략으로 전환을 해서 일부 고손해율 담보 영업을 중단하고, 고수익 상품 중심으로, 포트폴리오를 재편하면서 효율 관리에 집중한 결과 하반기 손해율은, 상승폭은 안정화되고 있습니다.
Now, such increase in loss ratio is mostly coming out of the medical indemnity products, as well as the fire incident that took place at the South Yeongnam, the Yeongnam region, which were large claim events. But starting the second quarter, we took on a strategy focusing on profitability, and we discontinued the provision of the products that entailed high loss ratio and focused more on high margin products. We made the shift of our portfolio towards that direction, and so starting the second half of the year, we had seen loss ratios stabilize.
2026년 이후에는, 우량담보 확대와, 요율 개정으로 신계약 유입을 통한 손해율 개선이 이루어질 것으로 예상되고 있습니다. 또한 2026년 1월에, 경험 위험률 조정을 통해서 보험료를 인상을 하였고, 2025년부터는, 주요 과잉 청구에 대해서 관리 조치 시행을 하고 있어서 연간 손해율은 2025년을 고점으로 점차 낮아질 전망입니다. 이상입니다.
And looking out into 2026, we will be expanding high quality policies and exposure and to the increases in the pricing, the insurance premium. We and also through acquisition of more new business, we expect that the loss ratio will start to improve. And also there's been a change in the experience table, and we've made the adjustment and accordingly had increased the premium, the rate, the pricing of the product. And as we go into 2026, there are rules in place for selective control on certain items, for benefit items and non-benefit items, in order to mitigate excessive treatment and excessive claims. And hence we think that in 2025, well, in 2026, we will start to see stabilization or the coming down of the loss ratio, with 25 being the peak.
Thank you for your question. We'll now take the next question. The following question will be presented by Lee Byung-Gun from DB Securities. Please go ahead with your question.
Uh, yeah.
Thank you. I am Lee Byung-Gun from DB Securities, asking you two questions, and the first question is actually a follow-up, asking for a little more detail. We were disappointed at the DPS amount that you have announced on a year-over-year basis is 2.6% higher. And also, if you look at on a payout basis, you know, the dividend payout is 5.4% on a year-over-year basis, and that also is quite disappointing. If you look at page 17, where it says that your payout ratio going forward and by 2028 is going to be 50%, since we only have about three years left. If you make the calculation, that means on a per annum basis, we need to expect about 6.9% increase in DPS on an annual basis.
That seems to be quite reasonable. Also in light of the fact that the equity method gains you will get from Canopius is going to be higher, and also the dividend that you get paid for Samsung Electronics shares is going to go up. So it seems on an annual basis, your net profit is not going to go down. Now, having said that, would that mean that at the current net profit level of [Uncertain] , shouldn't we be expecting a DPS of KRW 24,000? And is that a reasonable calculation or is that something that we can reasonably expect? Can we expect 7% DPS increases going, going forward? Second question, some more clarification on your loss ratio. I do see and agree that 2025 would have been your peak for your loss ratio, and afterwards there would be an annual decline in loss ratio.
But I think the picture is a little different for your experience variance, especially for most recent underwriting years, the loss ratio seems to be bigger on that side or as we get closer to the recent underwriting year. I would think that it would be very difficult to reflect that fully in the CSM adjustment. My question is this: even if the loss ratio experience variance margin actually comes down on an absolute basis. Still, it may come down, but still it will be quite significant. Do you incorporate that? And how is that reflected on your business plan?
네, 경영지원 팀장입니다. 첫 번째 질문 답변드리겠습니다. 우선 그 CFO께서 말씀드린 바와 같이, 그 저희가 작년 1월 기업가치 제고 계획 때 공유드린 바와 같이, 50%, 2028년에 타겟을 50% 배당 성향을 맞추겠다는 계획에 대해서는 변함이 없습니다. 그리고 올해 그 저희가 당기, 그 당기 순이익이 그 역성장임에도 불구하고 배당 성향은 확대를 했고, DPS도 늘어났다라는 걸 좀 알아주시면 좋을 것 같고요. 장기적으로 봤을 때도 저희가 이제 말씀하셨듯이 7% 배당 성장을 기대할 수 있냐라고 말씀을 주셨는데, 이 부분은 저희가 배당 성향을 가지고 그 저희가 밸류 같이 그 제고 관련돼서 말씀드렸는데, DPS 관련해서 그 말씀하신 KRW 24,000을 저희가 맞추게 되려면, 이게 저희가 기본적으로 깔려야 되는 게, 그 당기 순이익이 확대돼야 된다는 그런 전제가 있어야 될 것 같습니다.
저희가 여기에 대해서는 저희가 확답을 못 드리겠지만, 저희는 당기 순이익 우상향을 위해서 말씀드린 그 Canopius, 그 지분법 이익 증가라든지, 본업 경쟁력 강화를 통해서, 우상향하는 모습을 계속 보여드릴 거고, 기대의 수준에 맞도록 저희가, 회사를 성장시켜 나가도록 하겠습니다. 그리고, 배당 성향도 마찬가지로 50% 우상향하는, 점진적으로 우상향하는 모습으로 내년, 내후년, 계획을 하고 있습니다.
This is the team leader, the corporate management support team, responding to your question. As our Chief Financial Officer has mentioned, based upon the Value-Up Plan, which we announced January 11, one year ago, our objective is to reach the 50% payout ratio by 2028, and that plan stays the same. There is no change to that. You know, we would like you to also appreciate that despite the fact that our net profit had posted a negative growth, we expanded our payout ratio and increased our DPS as well. Now, the way our Value-Up Plan is set up is, it is based upon the payout ratio, and you're asking whether we could actually, you know, we should be paying out DPS of KRW 24,000.
In order for that to happen, there has to be a premise of us increasing and expanding the net profit of the company. And so at this point, it will be difficult to give you any definitive answer, but the company is endeavoring its utmost to make sure that we uptrend our net profit through such efforts, as you've mentioned, gaining more equity method gains from Canopius, and also strengthening the core insurance business of the company. We will be very much committed to increasing the net profit of the company so that we can, you know, meet and satisfy the expectations that the market has. So, you know, in terms of, in terms of, also that 50% payout ratio target, we will continuously, you know, work to achieve the objective for that progressive increase.
네, 두 번째 질문에 답변드릴 장기보험 전략팀장입니다. 25년에는, 실손, 재물 등의 손해액 증가로, 예실차가 감소했습니다. UI 별로 보면, 최근 계약과 과거 계약의 예실차 감소에 미친 비중이, 50/50 수준입니다.
Insurance, and that had an impact of driving down the experience variance, and the impact based upon the underwriting years for most recent versus the past, it's 50/50.
2026년에는 적정 원가 반영과, 치료비, 그 대표 상품인 마이핏 중심의 상품 전략을 강화하고, 동시에 실손 제도 개선에 힘입어서 손해율은 점진적으로 구조적 개선이 기대가 됩니다. 특히 2026년 1월 요율 개정으로 예실차는 점진적 개선이 가속화될 예정입니다.
And also in 2026, we will be able to reflect appropriate level of, claims cost, and also we will focus on our core products in terms of the strategic approach and focusing on My Fit product, and also with regards to the treatment related, claims and expenses. And with the improvement in the overall regulatory rules and environment, we are looking forward to a structural improvement in loss ratio profile. And also in January of 2026, there was adjustment in the rates, the pricing, and so going forward, we are looking forward to improvement and experience variance.
질문 감사합니다. 그럼 다음 질문을 받겠습니다. Thank you for your question. We'll take the next question.
The following question will be presented by Jay Won Won from HSBC. Please go ahead with your question.
질문 기회 주셔서 감사합니다. 그 두 가지 여쭙고 싶은데요. 신계약하고 손실부담 계약 좀 여쭤보고 싶습니다. 일단 신계약 CSM 보면은, 저는 안정적인 성장을 위해서는 신계약 CSM이 되게 중요하다고 생각을 하는데요. 항상, 과거부터 가이드라인 3조 원을 제시해 주셨는데, 올해는 3조 원을 좀 미스를 한 것 같습니다. 주 원인이 무엇이고, 그리고 올해에는 다시 3조 원을 목표로 하는 것인지, 올해 목표가 얼마인지 공유해 주시면 좋을 것 같고요. 두 번째는 그 손실부담 계약 4분기 숫자가 좀 궁금합니다. 이 과거 2년치 손실부담 계약이 분기 숫자를 보면 그거와는 좀 방향이 다른 것 같은데요. 이게 분기마다 저희가 신계약 손실이 있었고, 손해율도 올라가고, 우리 분기 손실도 좀 비슷한 수준인데, 이번에는 4분기 손실부담 계약 손실 폭이 상당히 떨어졌습니다. 어떤 부분이 과거랑 좀 달랐는지 설명해 주시면 감사하겠습니다.
Thank you for taking my question. My question relates to your new business and onerous contract. I feel that for the company to achieve a stable growth, new business CSM is very important. And if you look at your past practices, your guidance has been around KRW 3 trillion. But for this year, it seems you've missed that level. So for 2026, should we expect KRW 3 trillion to be the usual target? Second question is: What is the reason that we are seeing a different direction of where your onerous contract is moving as of Q4? If you compare quarterly figures of the past two years, it seems to be quite different. To be a little more clear, we'd like to know as to the why we, for this quarter, we've seen, or the quarterly onerous contracts actually come down, unlike the past.
예, 질문에 답변드릴 장기보험 전략팀장입니다. 신계약 CSM은 2025년, 상반기에 CSM 배수 악화, 하반기, 신계약 매출 정체로, 2025년 연간 신계약 CSM은 2024년 대비 감소했습니다. 다만 이 분기, 수익성 중심의 전략으로 전환 후에, CSM 배수 개선에 힘입어서 점진적으로 회복 흐름을 보였습니다.
Now, this is the long-term insurance strategy team leader. In terms of the new business CSM, in the first half of 2025, the CSM multiple had deteriorated, and also in the second half of the year, we had seen stagnant new business sales. So on a 2025 and an annual basis, new CSM, new business CSM had actually fallen versus 2024. But as we entered into the second quarter, we shifted to a margin-focused strategy, which had an impact on improving the CSM multiple and which drove gradual recovery.
2026년에는 미래가치 중심의 경영 기조 하에 우량 신계약을 기반으로 한 안정적인 CSM 창출을 추진할 계획입니다. 손해율 상승과 CSM 훼손이 우려되는 고손해 경증 담보의 경쟁을 지양하고, 고 CSM 상품과 손해율이 우량한 중증 담보 중심으로 판매력을 강화해서 전년 수준의 신계약 CSM을 확보할 계획에 있습니다.
In 2026, we are going to take on a business approach focusing on creating future value, and we will focus on acquiring high quality new business, which will drive a steady CSM profile. We will stay away from providing coverage for minor injuries, which minor injury products, which actually entail high level of loss ratio, and focus more on high margin CSM, providing protection for more major, major risks. That would be where our sales capability will be focused on, so that we will be able to regain our positioning in terms of new business CSM, as we've done in the past.
두 번째 질문에 답변드리겠습니다. 4분기 손실 비용은 KRW 173억 환입이 발생했습니다. 전년 대비 감소했습니다. 이는 실손 요율 조정을 반영한 효과로 분기에 환입이 발생한 영향이라고 보시면 될 것 같습니다.
Regarding the second question, with the loss component related expense for Q4, there was a write back or reversal of KRW 70.3 billion, which is attributable to the adjustments made to medical indemnity pricing, having that impact being reflected on that quarterly figure.
질문 감사합니다. 그럼 다음 질문을 받겠습니다. Thank you for your question. We'll now take the next question.
is Tae Joon Jeong from Mirae Asset Securities.
The following question will be presented by Tae Joon Jeong from Mirae Asset Securities. Please go ahead with your question.
예, 안녕하세요. 미래에셋증권의 정태준입니다. 질문 기회 감사드립니다. 저는 한 가지 질문드리겠는데요. 저희 당국에서 상반기까지 손해율이랑 사업비율 가이드라인 적용할 계획인데, 혹시 지금 예상하시는 시스템 조정 등의 영향에 이제 계량적인 가이던스가 있으시면 공유 부탁드립니다. 감사합니다.
Thank you. My name is Tae Joon Jeong from Mirae Asset Securities. Would like to understand as to the impact that you, the company, will have for this year with the changes in the guidelines for the loss ratio and expense ratio, what will the impact be for the company?
예, 질문에 답변드릴 장기보험 전략팀장입니다. 개리 가정 관련 손해율 및 사업비 가이드라인 보도자료가 발표가 되었습니다. 손해율 측면에서는 신담보 및 비실손 갱신 담보 손해율을 90%로 적용하는 부분이고, 사업비 측면에서는 전체 사업비에 물가상승률을 적용하고, 전체 보험기간 동안의 공통비를 인식하도록 하는 내용입니다.
This is the team leader of the long-term insurance strategy team. Regarding your question about the actuarial assumption changes and also the recent press release that was made by the authorities on changes in the guideline for the loss ratio and the expense ratio. For the loss ratio, it has to do with new protection or new coverage, and on the non-indemnity side, increasing that per, increasing the relevant percentage to 90%, and on the expense side, reflecting the actual inflation as well as the reflecting the inflation and also applying a common expense across the insurance period.
Yeah, speaking in Korean.
Regarding those two guidelines, it actually entails a significant amount of work scope, because we have to work from the basic statistics, the data, and making significant changes to the assumptions. So there will be simulation that will be required, and once the working standard or working rules are distributed, we will be able to make more in-depth analysis. But at this point, we believe that there will be some mixed impact in terms of the loss ratio and the expense ratio.
Thank you for your question. We'll now take the next question. The following question will be presented by Seung-Gun Kang from KB Securities. Please go ahead with your question.
Yeah, speaking in Korean.
I have two questions. In the fourth quarter, there were quite a bit of one-time factors. For instance, increase in the educational tax had impacted your CSM and also increased your indirect costs. And also with the adjustment upwards of the corporate income tax, there was also certain additional corporate tax that you have paid. And with, on the CSM adjustment side, there are multiple detailed factors, which, if you could share, would be quite helpful. Second question, I also am coming back to the dividend-related question because the dividend that you have declared is lower than what the market had expected. I would think that in 2025, the disposition gains that you got from Samsung Electronics shares, would like to know to what extent did that contribute to the distributable sources for dividend payout?
I say this because we, as analysts, would have to make projection as to, you know, the amount of dividend that would be paid out in 2026, which is based not just on earnings, but also the dividend that you get paid for Samsung's holdings. I ask this question because in 2025, the dividend figure does not seem to be... will have included the Samsung Electronics related, you know, dividend payment. If so, because your previous position was that you would be using SEC related dividend as distributable sources for payback, just would like to know whether that stance had changed.
Yeah, speaking in Korean.
This is the head of long-term insurance strategy team, responding to your question about 2025 CSM adjustment, which in the size of which was KRW 1.7 trillion compared to the previous year's KRW 1.6 trillion. It was an increase of KRW 0.1 trillion. And in Q4, it's because of the increase in the education tax of KRW 300 billion, which was a one-off, and also change in the year-end assumption, which had an impact of increasing the CSM adjustment. So if we were to take out and exclude such one-time impact on a year-over-year basis, we see a stable trend.
예, 두 번째 질문 답변드리겠습니다. 계영준 팀장입니다. 예, 말씀해 주셨듯이, 그 전자 매, 주식 매각익 관련해서는 매각익이 손익이 인식이 되지 않지만, 이익잉여금에 바로 반영되는 그런 구조고요. 저희가 배당, 올해 배당을 산정을 할 때 그 이익잉여금의 배당 지원을 가지고 배당, 그 DPS를 산정했기 때문에 그 부분이 자연스럽게 반영이 됐다라고 보시면 될 것 같고요. 실은 이게 지금 전자배당, 전자, 매각익이 그 올해 발생이 된다면, 이 부분도 당연히 동일한 메커니즘을 통해서 배당에 반영이 될 예정입니다.
This is the Head of Corporate Management Support team. Responding to your second question about dividend. The sale of the shares of Samsung Electronics, and the proceeds from it is not captured under PNL, but it goes under retained earnings. And, when we make the calculation and decision on DPS based upon, the distributable sources which reflect that retained earnings. So yes, it is reflected. And also going forward in 2026, if there were to be a gain from the sale of the Samsung Electronics shares this year, it would also be reflected as well.
예, 한 가지 더 말씀을 드리자면 아까 법인세 관련돼서 반영 여부를 말씀드려 하셨고요. 이 법인세 관련해서도 저희가 작년 연결 세전이익이 KRW 2.745 trillion이었고, 올해 연결 세전이익은 KRW 2.783 trillion입니다. 그래서 성장하는 모습을 세전이익이 좀 보여줬는데, 당기순이익 관점에서는 다소 이제 역성장하는 모습이 보입니다. 이 부분을 보시면 자연스럽게 아시겠지만, 법인세 인상, 인상률이 이번에 반영됐다라고 보시면 될 것 같습니다. 이상입니다.
Just to elaborate on the corporate income tax side. Last year, on a consolidated pre-tax basis, the amount was around KRW 2.7 trillion, and for this year it was what? Around KRW 2.783 trillion. So on a pre-tax basis, there was an upward trend, while for the net profit there was a negative growth, which is attributable to that increase in the corporate tax rate.
아, 질문 감사합니다. 그럼 다음 질문을 받겠습니다. Thank you for your question. We'll now take the next question.
Heeyeon Lim from Shinhan Investment and Securities.
The following question will be presented by Heeyeon Lim from Shinhan Investment and Securities. Please go ahead with your question.
네, 질문 기회 주셔서 감사합니다. 두 가지 여쭙고 싶고요. 일단 첫 번째로는 그 손해율 관련해서 좀 한 가지 더 여쭙고 싶은 부분이 있고, 두 번째는 법인세율 관련해서 좀 문의드리고 싶습니다. 먼저, 이제 손해율 관련해서는 앞서서 이제 실손하고 정기보험 손해율이 작년에 이제 많이 올라왔었던 부분들에 대해서 말씀을 주셨는데, 제가 봤을 때는 그 이외에도 비실손 건강 담보 쪽에서도 손해율이 최근 몇 년 동안에 좀 가파르게 올라오고 있는 모습이지 않을까라고 추정을 좀 하고 있습니다. 실제로 지금 그러한 부분들이 확인되고 있는지, 만약에 그렇다면 그 원인은 어떤 것인지, 좀 부연 설명을 부탁드리고 싶고요. 실제로 작년 그리고 재작년에 놓고 보았을 때 손해율 상승 요인 중에 이 비실손 건강 담보 손해율이 어느 정도 이제 기여를 했는지 같이 좀 이제 말씀을 주시면 감사하겠습니다.
또한, 이제 내년에 놓고 보았을 때, 그러니까 2026년에 놓고 보았을 때, 이 비실손 건강 담보 쪽에서도 손해율이 개선될 수 있는 여지가 있다면 그 부분에 대해서도 같이 설명을 부탁드리고 싶고요. 두 번째로는 법인세율 관련해 갖고, 이번 그 사분기 법인세율이 전분기 대비해서 많이 올라온 걸로 보이는데, 이게 그 교육세 관련된 이슈 때문에 이렇게 좀 튀는 걸로 보이는 건지 한번 확인 부탁드리고 싶습니다. 아울러서 이 법인세, 그 교육세 관련된 부분이 저희가 회계적으로 어떻게 앞으로 처리가 될 것인지에 대해서도 같이 부연 설명을 해주시면 감사하겠습니다.
Thank you. I have two questions. First one relates to loss ratio. You've mentioned in 2025, the loss ratios for medical indemnities, long-term and property insurance have gone up quite significantly. But I would also project that the loss ratio for the non-indemnity healthcare coverage would have also gone up quite significantly. I just would like to double check whether that understanding is correct, and if that is the case, what would be the reason behind that? So would also like to know as to what the impact of such healthcare coverage is for 2024 and 2025, and also how would things play out as we move into 2026? So these are non medical indemnity healthcare coverage. Second question is, you've mentioned that there is a significant increase...
It seems there is a significant increase in corporate income tax rate in Q4 versus Q3. Now, is this an outcome of an education tax impact? How, going forward, should we be doing the accounting treatment for education tax?
예, 첫 번째 질문에 답변드릴 장기보험 전략팀장입니다. 그 총 손해율은 전년 대비 5% 수준 상승을 하였고요. 비실손 생존 담보의 손해율도 특별히 더 증가한 수준은 아닙니다. 총손해율과 유사한 수준으로 이제 상승을 했습니다. 원인으로는 저희가 그, 나중에 원가 확보를 해야 되는 그, 요율 부족을 원인으로 좀 볼 수가 있겠고요.
... 전체적으로는 저희가 이 실손 외에도 비실손 생존 담보의 손해율 관리를 위해서 AI 모럴 해저드 탐지 시스템 구축이라든가, 이렇게 보험금 청구와 관련된 계약 관리를 병행 중에 있습니다. 이상입니다.
Responding to your first question and the head of long-term insurance strategy, the total loss ratio had increased about 5% year-over-year basis, and for the non-medical indemnity, the living benefit coverage was also about that level. It wasn't that for that coverage was more higher than what we've seen in terms of the total loss ratio profile. The main reason behind it is because of the shortfall in terms of the rate making. The rate had not been able to cover for the cost related to that protection. So not just on the medical indemnity side, but on the non-indemnity living benefit products, we have seen this level of loss ratio.
In order to respond to this, we have been developing a moral hazard detection system powered by AI, and also have very closely controlled the claims related process with regards to these types of insurance policies.
예, 두 번째 질문 답변드리겠습니다. 경영지원 팀장입니다. 첫 번째, 법인세율 반영 여부 말씀을 주셨는데, 좀 전에 말씀드린 대로 법인세율 인상분이 반영이 되었고, 참고로 법인세율은 최고 세율 24%에서 25%로 인상이 확정되어 이 부분이 회계적으로 세후 이익이 반영이 됐다라고 보시면 될 것 같습니다. 그리고 말씀... 예.
So this is the head of corporate management support team. Yes, there has been an increase in the income tax rate at the top-notch segment. The tax rate had been increased from 24% - 25%. So that was finalized and consent, and it had an impact on the after-tax basis from an accounting perspective.
그리고 교육세를 말씀을 주셨는데, 교육세는 법인세와는 별도로 생각해주시면 될 것 같습니다. 교육세는 과세 표준의 과거 0.5%에서 1%로 인상이 된 바 있습니다.
Education tax is separate from corporate income tax. In terms of the tax base, the base had increased from 0.5%-1%.
예, 이 부분으로 인해서 그 세전 이익, 그, 다시 말씀드리면 사업비에 반영이 된다라고 보시면 될 것 같고요. 사업비 증가 요인으로 이미 반영이 됐다라고 보시면 될 것 같고, 내년에, 올해, 올해 2026년 손익에도 동일하게 사업비 증가 요인으로 반영될 것으로 보시면 될 것 같습니다.
So education tax is going to be a factor that increases the expense on the pre-tax profit basis. That's how we account for it. And so for 2026, that will be how it would be reflected in the PNL.
질문 감사합니다. 그럼 다음 질문을 받겠습니다. Thank you for your question. We'll now take the next question. 다음으로 질문해 주실 분은 Schroders의 Matthew Yang님입니다. The following question will be presented by Matthew Yang from Schroders. Please go ahead with your question.
네, 안녕하세요. Schroders 양정원입니다. 일부러 좀 마지막에 질문을 드리려고 했습니다. 쭉 management들께서 말씀하신 것을 듣고, 두 가지 질문이 있는데요. 첫 번째는 core business 관련 질문입니다. 사실 저는 CSM과 CSM adjustment를 합친 net으로 많이 한국보험업을 바라보는데요. 결국에는요, new CSM size에는 우리의 비용이 반영되어 있는 성과인 거고, CSM adjustment를 더하고 나서 우리가 실제로 어떤 성과를 거두는가를 좀 더 볼 수 있다고 생각했는데, 2023년부터 net CSM sales는 KRW 2.3 trillion에서 올해 KRW 2.1 trillion까지 감소했습니다. 그래서 과연 이제 IFRS 17 도입 취지는 회계의 투명성, 보험이라는 게 항상 회계가 좀 일정하지 않았기 때문에, 이 quality 측면에서 투자자들에게 많은 큰 손을 줬던 것 같은데, IFRS 17 도입이 오히려 이게 좀 더 강화된 것 같아서 management께서는 이 CSM adjustment를 줄이기 위해서 어떤 경영 전략을 가지고 계신지, 이게 주요 KPI로 생각하고 계신 건지.
왜냐하면 같은 net value라고 하더라도 CSM adjustment가 적은 net CSM이 저는 좀 더 가치 있는, quality가 높은 earning이라고 생각을 하거든요. 그래서 일단 거기에 대해서 경영진들께서 어떤 생각을 가지고 계신지 질문드리고요. 두 번째 질문은, 주주 환원인데, 사실 화재가 자체적으로 그룹 내에서 이제 Value-Up도 발표하시고 해서 많은 기대가 있었습니다. 근데 최근에 이제 다른 삼성 계열사들이 발표하는 좀 진보적인 계획에 비해서 화재가 지금 진행하고 있는 속도는 대단히 느리다고 저는 생각을 합니다. 가장 중요한 거는 사실 배당 성향도 중요하지만, 우리가 200%의 그 약속을 했는데, 그걸 언제 맞출 수 있는지, 그 타임라인을 주는 게 되게 중요하다고 저는 생각을 하거든요? 그런데 지금 우리가 170%에 가까운 K-ICS ratio로 2025년도를 마무리했는데, 거기 Canopius 지분 구입에 들어간 6-7 percentage points 정도의 그 감소 효과를 감안했음에도 불구하고, 그럼 core business상으로는 K-ICS ratio가 오히려 올라간 건데...
...도대체 어떤 타임라인으로 이 목표를 맞추시겠다는 건지, 그거에 대해서 좀 더 투명하게 힌트를 좀 주셨으면 좋겠습니다. 결국은 밸류업의 핵심은 ROE를 구조적으로 개선하는 것이고, 그거에 대해서 우리가 엑세스 캐피탈을 정의를 하셨고, 이걸 어떻게 활용하실 건지에 대해서 좀 저희 같은 장기 투자자들에게 경영진께서 설명해 주시는 게 대단히 도움이 되고, 중요하다고 생각을 합니다.
Yes, I've wanted the opportunity to listen to the answers to other questions, so I intentionally wanted to be the last person to be asking the question. My first question has to do with your core business. When I look at CSM, I look at new CSM, plus CSM adjustment, and I look at it on a net basis when I assess the Korean insurance industry, because the new CSM reflect the relevant cost, and then only when you actually put in the CSM adjustment factor, would you actually be able to have a clear understanding of what the earnings capacity of a certain insurer is. In looking back from 2023, I see on a net basis that your net CSM had actually fallen from KRW 2.3 trillion down to KRW 1.2 trillion.
The whole purpose of implementing IFRS 17 was for the higher transparency of accounting in the insurance industry, because that was not always ensured. So would like to know as to what the company's strategy is in reducing this variance in the CSM adjustment. Because I would think that even if the net value is the same across different entities, basically the net CSM is going to net CSM with low amounts of adjustment is going to be higher in quality in terms of information. So we'd like to gain the understanding of what the management's approach is to this. Second is on the shareholder return. So the market had high level of expectation for SFMI because you were the first amongst the Samsung Group of companies to actually share a preemptive value plan.
But as other Samsung companies have announced their value plan, it seems like the speed at SFMI is quite slow because, of course, the payout ratio itself is important, but since you have committed to that 220%, would like to understand and gain more color on the timeline with regards to this, because you closed the year with 270% K-ICS ratio , and even if you account for the Canopius, share acquisition, which will have about 67% impact, your K-ICS ratio would still have increased on a core business basis. So what is the timeline going forward? Because value plan seeks to improve the ROE, and how you're going to use this excess capital and return it to the shareholders is very important, especially for long-term investors like us.
It's important that we hear as to what your thoughts are on this.
네, 첫 번째 질문에 답변드릴 장기보험 전략팀장입니다. 당사는, IFRS 17 시행 이후에, 내실있는 성장을 위해서, 상품 채널 등의 모든 전략을 수익성 확보로 전환해서 운영을 하고 있습니다.
This is the head of long-term insurance strategy team. Since the adoption of IFRS 17, in order to achieve resilient growth, the company had focused all of its efforts on profitability-driven product portfolio and channel portfolio.
26년에도 CSM 순증 극대화를 목표로, 밸류체인 전반을 CSM 중심으로 재정비할 계획입니다. 외형 성장보다는 근본적인 체질 개선에 집중을 해서, 우량 신규약을 확보하고, 해지율이나 사업비 등의 효율 지표 개선을 통해서 가정 변경에 따른 CSM 조정을 안정화시키고, CSM 총량을 지속적으로 확대해 나갈 계획입니다. 이상입니다.
In 2026, we will exert efforts to maximize the net CSM and upon, you know, under that objective, realign the value chain across that very objective. So rather than wanting to try to grow just the top line volume, we're going to focus on the fundamentals so that we can acquire high quality new business, improve on the efficiency metrics such as lapse ratio and expense ratio, so that the adjustments to the CSM could be stabilized, you know, rising, in the wake of any changes to the assumption. So we will focus more on maximizing total CSM.
네, 두 번째 질문에 답변드릴 경영지원 실장입니다. 최근에 업계 수익성 부분하고 코어 KPI 도입 때문에 전체적으로 업계 내에서 구조적으로 격차가 많이 확대되는 가운데에서도 당사의 자본 활용 전략에 대해서 시장의 관심이 높은 부분은, 말씀하신 질문 주신 부분도 똑같이 저희도 공감을 하고 있습니다. 작년 1월에 기업가치 제고를 위한 밸류업을 저희가 시장에 발표를 했는데, 사실 그 이유와 관련돼서 저희가 그 이후 저희가 직접적으로 시장하고 소통하지 못한 부분이 있는 것 같습니다. 말씀하신 대로 지금 사업 부문별 ROE를 정교하게 측정하고, 각 부문별 목표를 달성하기 위해서 자본 배분 관련된 부분을 준비를 하고 있습니다. 해당 부분이 어느 정도 마련하면 그 부분에 대해서는 시장과 소통하도록 하고, 어쨌든 저희는 자본 효율을 통해서 주주가치 제고를 지속적으로 추진한다는 게 삼성화재의 첫 번째 priority가 되겠습니다. 감사합니다.
Responding to your second question, this is the Chief Financial Officer. In terms of the recent efforts across the industry to focus more on profitability and with the adoption of the core KPIs, we are seeing a structural gap widening within the industry players. So we fully understand where you're coming from in terms of your interest on efficient use of the capital. And after we announced our value plan last January, we also—I also admit that we had insufficient communication with the market. At this point, we are in the midst of fine-tuning the ROE targets by each of our business, and also in order to achieve the target, we are focusing on realigning the capital allocation planning as we speak. We at SFMI place capital efficiency as our number one objective in further enhancing shareholder value.
더 이상 질문이 없는 관계로 질의응답 시간을 끝내도록 하겠습니다. 다시 한번 금일 설명회에 참여해 주신 여러분들께 감사의 말씀을 드리며, 이것으로 삼성화재 2025년 결산 실적 설명회를 모두 마치겠습니다. Since there are no further questions, we'll now conclude the Q&A session. Once again, thank you for attending today's-