Hello, thank you for joining us today for Samsung Life's earnings conference call. The earnings presentation will be delivered by Samsung Life, followed by your questions. To ask a question, please press star one on your phone. Now we will begin with Samsung Life fiscal year 2025 earnings presentation. Good afternoon, everyone. This is Sunj ung Kim, Investor Relations Part Leader. Thank you for joining us today for Samsung Life's 2025 year-end earnings presentation. Today's call is scheduled for one hour, starting with the earnings presentation delivered by our CFO, Mr. Wan-sam Lee, and followed by your questions, which will be addressed by the members of our management team present here today.
Please note that the figures in this presentation may be revised during the auditing process, and any forward-looking statements, including the earnings outlook contained in today's conference call, are subject to change, depending on both the domestic and overseas market conditions and operating environment. Let me now hand over the presentation to our CFO, Mr. Wan-sam Lee.
Good afternoon, everyone. This is the CFO, Wan-sam Lee. I would like to thank our investors and analysts for taking the time out of your busy schedules to attend today's earnings call. Let me start with our financial highlights for the fiscal year 2025. Our consolidated net profit for the fiscal year 2025 grew by 9.3% year-on-year to record KRW 2.3 trillion, a record high, backed by continuous profit-driven performance and improved fundamentals.
Insurance service results recorded KRW 975 billion, while investment profits recorded KRW 2 trillion. Let me now go over the specifics in the next slides. Insurance service results for the fiscal year 2025 recorded KRW 975 billion, driven by increased CSM profits from high-margin health products and better management of operating variances. Going forward, we will do our best to achieve robust insurance profits of over KRW 1 trillion by securing high-quality new business CSM and by strengthening the efficiency indicators, such as the loss and lapse ratio, along with cost-cutting efforts by reducing fixed costs and countering fraudulent claims. Following is a breakdown of our investment profit.
Investment profit for the full year was maintained at a stable level under the ALM principle, despite losses from the variable account due to market volatility in 2025, resulting in a total of KRW 2 trillion. We will try to improve our investment profit year on year. Under the strengthened ALM principle, we will enhance our investment yield and reinforce risk management measures on non-performing alternative assets to defend our profit against potential losses. Next is the current status of our consolidated balance sheet. Our total assets came in at KRW 351 trillion as of December, and is comprised of KRW 247 trillion in invested assets, KRW 29 trillion in variable account, KRW 29 trillion in corporate pension account, and KRW 46 trillion in Samsung Card and other consolidated subsidiaries.
Total liabilities came in at KRW 286 trillion, with insurance liabilities recording KRW 201 trillion, including KRW 184 trillion for BEL, KRW 3 trillion for RA, and KRW 13.2 trillion for CSM. Shareholders' equity recorded KRW 65 trillion, with KRW 44 trillion in accumulated other comprehensive income and KRW 21 trillion in retained earnings. Next is the CSM movement. Our CSM balance at the end of December was KRW 13.2 trillion, increasing by KRW 0.3 trillion year to date. This was driven by new business CSM of KRW 3.1 trillion, CSM adjustment of KRW 1.8 trillion due to updates on actuarial assumptions and regulation guideline changes, such as the hike in education tax and CSM amortization of KRW 1.5 trillion.
In 2026, we will focus our efforts on growing the CSM balance, which is the foundation of our insurance profit. We will do so by expanding not only the new business CSM, but also by strengthening the efficiency management measures. Now I will explain the changes in the shareholders' equity in more detail. Our shareholders' equity at the end of December 2025 came in at KRW 64.8 trillion, increasing by KRW 26.7 trillion year to date. The increase was attributable to an increase of KRW 2.3 trillion from the annual net profit, a KRW 3.8 trillion increase from change in reserve discount rate, and an increase of KRW 21.4 trillion in the accumulated other comprehensive income, mainly due to the hike in Samsung Electronics share price.
Now let me walk you through our business highlights. In 2026, our new business CSM reported KRW 3.1 trillion, thanks to expansion of the high-margin health product sales. Over the past two years, we have strengthened our market position within the overall insurance sector by introducing new health product lineups, while increasing competitiveness for the coverage we provide. As a result, we were able to increase our health proportion within the new business CSM to 75% in 2025, compared to the 58% in 2024. Our CSM margin rose to 11.3x in 2025, an increase from the previous 10.5x in 2024, thanks to the increased proportion of high-margin health products. Let me go over the details regarding the performance of the health CSM.
The annual new business health CSM recorded KRW 2.3 trillion in 2025. In particular, we were able to enhance both the quality and quantity of our CSM by increasing the proportion of general health products compared to a year ago. Also, we were able to enhance the competitiveness of our health products by diversifying the product lineup based on differentiated customer needs and launched the surrender value strengthened health product, a product type specialized for life insurers. In addition, we also improved our non-pricing competitiveness by improving the overall underwriting process and providing additional healthcare services. Next is on our distribution channel. As of December, we saw a net increase of over 5,000 agents year to date for exclusive channel, resulting in over 43,000 agents as of 2025.
Our exclusive channel generates approximately 70% of our new business APE, which accounts for 85% of our new business CSM, thanks to its high productivity and profitability compared to other distribution channels. We are implementing measures to manage the productivity of the newly added agents and to better manage our expenses. Continuing on is our major efficiency trends. Protection persistency ratio for the 13th month came in at 89%, while 76% in the 25th month, both similar from a quarter ago. Loss ratio has been on a rising trend due to pent-up demand from claims following the normalization of the medical strike in 2025. However, in the fourth quarter, the loss ratio finished down on a quarter-on-quarter basis, recording 84% due to improvement from the living benefit.
We will do our best to maintain a loss ratio at a stable level by reviewing the product structure, such as the risk rate for the coverage with a high loss ratio, strengthen the underwriting process, and reinforce the review process of fraudulent claims. Now let me explain our investment portfolio. As previously mentioned, we are pursuing investment profit expansion through asset diversification strategies under the ALM principle. The general account invested assets recorded KRW 247 trillion as of December 2025, of which interest-bearing assets such as bonds and loans account for 60%. Our investment yield for the general account, amounting KRW 247 trillion, recorded 3.1%, while the interest expense rate on the insurance liabilities stood at 3.2% for the KRW 201 trillion in insurance liabilities.
In addition to the general account investment profit, we recorded KRW 1.3 trillion from the consolidation and equity method profits from subsidiaries, totaling our investment profits to record KRW 2 trillion for 2025. Next is on the K-ICS , which represents our capital soundness. Despite regulatory tightening of the discount rates in 2025, we expect our K-ICS ratio to reach around 198% as of December 2025, thanks to improved fundamentals supported by net increase in CSM balance, earnings expansion, and favorable market conditions, such as raising some Samsung Electronics share price and interest rates. Our Tier 1 capital K-ICS is expected to stand at around 157%, which significantly exceeds the financial authority's recommended level. Going forward, we will remain committed to maintaining an industry-leading capital adequacy level.
Now let me guide you through our future strategies for 2026. We will pursue sustainable growth from our core insurance business and enhance profitability through our asset management business going forward. For our core insurance business, we will continue to grow our exclusive channel, strengthen our GA channel competitiveness, and increase the sales of our high-margin insurance products. In addition, we plan to continuously grow our CSM balance through efficiency management, such as improving the persistency ratio and managing the loss ratio. For our asset management business, we plan to strategically allocate our assets and enhance our investment returns under our ALM principle and find additional growth opportunities in overseas insurers, as well as investment management companies. As our future growth strategy, we established a life care ecosystem that integrates the usage of digital healthcare and senior living.
From the digital side, we will increase work productivity using AI and big data, and also advance the infrastructure environment for our distribution channels. From the healthcare side, we will build the business model to monetize on the healthcare services provided. As for our application, The Health, we will increase its usage to prevent these diseases beforehand and manage risk. Lastly, for senior living business, we will strengthen the foundation for mid to long-term growth by utilizing our subsidiary, Noble Life, which was established in 2025. We will expand our business through market differentiation and internalizing our operational know-how. Lastly, let me go over the direction of our corporate value enhancement plan. As previously communicated, we are committed to achieving a midterm target shareholder return of 50%.
For the fiscal year 2025, our dividend per share came in at KRW 5,300, an 18% year-on-year increase, thanks to earnings improvement and enhanced dividend payout ratio. Going forward, we will continue to expand our total dividend amount by increasing the dividend per share by more than our recurring profit growth each year based on improving fundamentals. This concludes our presentation on our 2025 annual earnings results. Thank you for attending today's earnings call, and we appreciate your continued interest and support for Samsung Life.
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. The first question will be provided by MW Kim from JPMorgan. Please go ahead with your question.
Yes, thank you for the opportunity to ask questions. I will ask two. First, about the PEA adjustments. If you look at the end of year materials, it does seem that there was some reclassification of PEA from liabilities to the capital accounts or the equity accounts, excuse me. So even if you do not consider the valuation gains from your SEC shares, just on the strength of your core underwriting insurance profits alone, on a CSM basis, we can anticipate gradual improvement in your underlying profit. And then if we assume 50% or so target payout, as the size of your shareholder equity continues to grow, that may mean that there is limited room for further upside in terms of improving on your ROE. So could you address this question?
Also give us some more backdrop to the changed reclassification or accounting treatment for your PEA account, and any midterm plans for added capital efficiency. Second, my question has to do with future dividend policy, also distributable pools to fund future dividends. Obviously, Samsung Electronics share price has increased significantly, and this has translated into improved capital adequacy ratio for Samsung Life as well, compared to a couple of years ago, I think the rise in SEC share prices is actually quite significant. And looking forward at a potential future point when you are ready to dispose of those shares, there may be significant disposal gains. So could you—I think you mentioned possibility of a special dividend in the past.
So could you clarify that further, possible use of proceeds from disposal of SEC shares, how you intend to return those excess gains to the shareholders? I do appreciate it.
네, CFO입니다.
Yes, this is the CFO. My name is Wan-sam . Yes, let me first take your question on the policyholder, the PEA adjustment. So previously in December of last year, there was a return notice provided from the FSS to the Association of Life Insurance Companies in Korea, regarding the accounting treatment for PEA accounts under life insurance companies. So pursuant to the inquiry and also the subsequent response from the FSS, we have determined that in accordance to the accounting standard number 1117, starting at the end of the current period, we will begin assessment of those liability.
We will do the liability assessment. And then briefly on our mid to long-term ROE. So we intend to continue to deliver solid growth in terms of CSM, particularly net CSM growth, driven by new business. To continue to improve our insurance service profits, underlined by ALM practice, increase in our net interest spread, diversification of our investment portfolio, and also increased contribution from our consolidated equity method gains, to which will also help improve our investment profits. So the goal is to gradually improve our ROE in the mid to long term, and consistently improve our dividend per share as part of our ongoing capital policy. And then further on our dividends.
We have consistently emphasized our midterm target of 50% in terms of shareholder return, and we intend to continue to deliver solid earnings and profit growth to enhance the visibility of our shareholder return policy. Our number one principle in terms of shareholder return would be the consistent enhancement of our DPS. Over the last five years, we have increased our dividends at an annual average growth rate of 16% or more, and going forward, we will continue to increase our dividend per share at above or at minimum above the growth of our ordinary income, so that we can anchor ourselves as a stable dividend growth stock.
When we determined our dividends for 2025, we factored in not only our recurring or ordinary income, but also the disposition gains from SEC share sales that were generated in February last year. So those will also be included in our pool of distributable profits to fund dividends, and this plan remains unchanged.
다만 걱정하시는 바와 같이, 향후 전자매각이익의 발생 시점을 정확히 예측할 수가 없고, 매각의 규모 또한 변동성이 크게 확대됨에 따라서 회사가 지향하는 꾸준한 배당 규모 상향에 변수로 작용할 수 있을 것으로 판단되어서, 전자매각에 대한 배당 지급률을 특정해서 말씀드리기는 어려운 상황입니다.
Well, that being said, as you mentioned, as a source of concern, it is hard to really anticipate the exact timing of when those disposal gains will likely occur from SEC shares. And the size of those proceeds also are subject to great variability as well. So in terms of achieving our steady increase in dividends, which is our goal, this could act as a potential variable. And so it is hard for us at this point to specify exactly what part of those disposal proceeds in terms of exact dividend ratio will be provided to our shareholders.
하지만 회사는 적정 KICS 비율 이상 시 주당 배당금을 매년 꾸준히 늘려가는 것을 최우선 목표로 당기순이익과 주식매각이익을 함께 고려해서 주당 배당금을 상향하는 방식으로 지급할 계획입니다.
However, our number one goal will be to continuously increase our dividends per share consistently year-on-year, when we feel that our K-ICS ratio is above a level that we find to be adequate. We will consider both our net profit and also SEC sale gains to consistently improve our DPS.
현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼에 별표와 일번을 누르시기 바랍니다.
Currently, there are no participants with questions. Please press star one... star and one to give your question.
다시 한번 안내 말씀드립니다. 현재 질문을 요청하신 분은 없습니다. 질문을 요청하실 때까지 조금 더 기다리겠습니다.
Currently, there are no participants with questions. We will wait for a second until there is another question.
신한투자증권 임희연입니다
The following question will be presented by Lim Hee-yeon from Shinhan Investment and Securities. Please go ahead with your question.
임씨, 질문 좀 해주세요
If you can hear me, we welcome your questions.
준비해 주셔서 감사합니다. 혹시 들리시나요?
예, 들립니다.
네. 확인 감사합니다. 혹시 2026년 이제 신계약이라던가, 예상하시는 CSM 마진 개수에 대해서 조금 가이던스를 주시면 감사하겠고요. 그리고 최근에 해약환급금 준비금 제도 변경 관련해서 작년부터 여러 가지 논의가 되고 있는 걸로 알고 있습니다. 현재 이 논의 과정 속에서 삼성생명에서는 어떠한 입장을 가지고 계신지, 그리고, 어떠한 방향성으로 접근을 하고 계시는지에 대해서 좀 공유해 주시면 저희가, 전망하는 데 있어서 많은 도움이 될 것 같습니다. 감사합니다.
Yes. So for 2026, if the company could provide your guidance in terms of how we should be thinking of new business and other performance metrics as well. And nowadays there is a lot of talk about surrender value reserves, and so I'd like to hear more on Samsung Life's position, how in terms of your overall approach.
예, 안녕하십니까? 채널 마케팅 팀장 허정무입니다. 일번 질문 관련해서 답변드리겠습니다.
Yes, this is Huh Jung-moo from the channel marketing team. Let me take the first question.
2026년은 수수료 규제 도입 그리고 손해율 및 사업비 가이드라인 적용 등 도전적인 외부 환경이 지속될 것으로 예상합니다.
So we do expect challenging conditions to continue in 2026, with the introduction of regulations for different fees, also guidelines for loss rates and expense ratios as well.
그러나 이러한 변동성 속에서도 최우선 목표를 신계약 CSM 확보로 하고, 2025년 3.1조보다 증가한 2026년에는 연계약- 연간 신계약 CSM을 최소 3.2조, 2조 이상 달성을 타겟으로 삼고 있습니다.
However, regardless of the external volatility or change, nonetheless, we are strongly committed to achieving our full year 2026 target of KRW 3.2 trillion or more in terms of new business CSM. So that will bring us above the KRW 3.1 trillion in new business CSM we reached in 2025.
그리고 신계약 마진에 해당하는 신계약 CSM 나누기 물량인, 신계약 배수도 2020년에 약 11배가 나왔는데요. 2022년에는 12배 이상을 추진토록 하겠습니다. 이상입니다.
Then a measure of the profitability of our new business, which is the new business multiple, which is new business CSM over volume. We achieved 11x multiples in 2025, but we will strive to achieve 12x higher multiple in 2026.
안녕하십니까? 계리 팀장 변인철입니다. 주신 질문 두 번째 것 답변드리겠습니다.
Yes, this is Byun In-cheol, Head of the Actuarial Team. Let me take the second part of your question.
해외 완급 준비금 제도에 대해서 작년 사분기에 감독당국이 주주환원과 기업가치 상향으로 이어질 수 있도록 적립 개선 필요성에 대해서 검토를 언급한 바 있습니다.
The authorities did mention that practices may have to improve regarding surrender value reserves in the interest of expanding shareholder returns and also enhancing corporate value. This was mentioned sometime the fourth quarter last year.
발표는 있었지만 구체적으로 아직까지 진행된 바가 없어서 제도가 어떻게 갈지에 대해서는 답변드리기는 어렵지만, 저희가 생각하는 방향은 동 제도가 가지는 소비자 보호, 과당 경제 억제 등 합리적인 제도로 개선될 수 있는 방향으로, 저희는 생각하고 있습니다. 이상입니다.
Although the authorities made that initial announcement, nothing actually has developed further beyond that point. It is hard for us to say where exactly this policy is likely to be headed. That being said, in terms of our approach, we do expect broad improvements in what may be a more rational or reasonable scheme in the interest of better consumer protection, also mitigating excessive competition.
다음 질문은 모건스탠리 최희원 님입니다.
The following question will be presented by Heewon Choi from Morgan Stanley. Please go ahead with your question.
네, 안녕하세요. 질문 기회 주셔서 감사합니다. 저는 세 가지 질문드리고 싶은데요. 먼저 첫 번째로, 이번 분기에 저희 좀 CSM 조정 규모가 컸던 것 같은데, 교육세 인상이라든지, 법인세 인상 효과 등의 일회성 요인이 저희 손익이나 CSM에 어떻게 영향을 미쳤는지 조금 세부적으로 설명해 주시면 감사드리겠고요. 두 번째로는 아까도 잠깐 언급해 주셨다시피, 이제 상반기 중으로 손해율 및 사업비 가이드라인 적용이 예정되어 있는데, 그게 손익이나 아니면 CSM에 저희 쪽엔 어떤 영향을 미칠지, 좀 대략적인 방향성이라도 공유해 주시면 감사하겠습니다. 마지막으로 이제 2027년부터 그 기본 자본 비율 요건 도입을 앞두고 있는데, 중장기적인 관점에서 생각하시는 기본 자본 비율이랑 그다음에 킥스 비율의 적정 수준이 어느 정도라고 생각하시는지 알려주시면 감사하겠습니다.
Yes, thank you. I'd like to ask three questions. It seems that in the current quarter, there was quite substantial CSM adjustment. I believe potentially there might have been one-off factors, including the increase in the education tax, the rise in the corporate income tax rate as well. So could you elaborate further on how these one-offs impacted your CSM, also your profits? And second question is, you did mention that in the first half of this year, loss ratio and expense ratio related guidelines are expected to go into effect. So could you also give us a rough idea of how you believe the guidelines should affect your CSM, also profits as well? And third question is, starting in 2027, the Tier 1 capital adequacy ratio will start to be adopted.
In the mid- to longer term, what kind of adequate level of Tier 1 capital and also your K-ICS ratio are you looking at?
네, 액추어리 팀장 변인철입니다. 주신 질문 첫 번째, 두 번째 질문에 대해 답변드리겠습니다.
Yes, this is Byun In-cheol, Head of the Actuarial Team. Let me take the first and second part of your question.
네, 먼저 그 사분기, 가정 CSM 조정의 주요 원인은 크게 두 가지로, 첫 번째는 이제 교육세 인상에 따른 영향 KRW 300 billion 하고요.
In terms of the cause of the CSM adjustment in the fourth quarter, broadly, there were two drivers. First was the increase in the education tax, which accounted for an adjustment of KRW 300 billion.
그리고 2024년 말, 저희 실손의료 세대 보험료가 좀 인하된 영향에 따라, 그리고 2025년, 의료 파업 정상화 및 실손 청구 증가에 따른 악화분 때문에 실손 쪽에서 약 KRW 600 billion-KRW 700 billion 정도 조정이 있었습니다.
And then the second large component came from our indemnity products, an adjustment of KRW 600 billion-KRW 700 billion. And so, this also reflects the lowering of premiums on indemnity products, mainly the first generation and second generation of indemnity loss products at the end of 2024, and also with normalization after the medical strikes in 2025, this did lead to an increase in indemnity claims. So that was the second driver.
저희가 분기당 그 계약 변동이나 여러 가지 비경상적인 요소로 일어나는 CSM 조정이 약 이천억 수준이기 때문에 방금 말씀드린 두 가지 요인을 제외했을 경우에는 특이사항이 없는 것으로 이해해 주시면 될 것 같습니다.
So typically for a given quarter, we usually have a CSM adjustment around KRW 200 billion or so from changes to policies, also other non-recurring one-off factors.
So when we take out those two main components that I mentioned, the CSM adjustment is actually in line and consistent with past trends.
다음, 두 번째 질문에 대해서 답변드리겠습니다.
Now, regarding your second question.
예, 최근 감독 당국은 개리 과정 관련하여 손해율 및 사업 비율 가이드라인에 대해서, 그, 보도자료를 통해 발표한 바 있습니다.
The authorities did issue a press release regarding potential guidelines for actuarial assumptions, including expense ratio and loss ratio.
발표된 가이드라인은 방향성에서 봤을 때 손해율 측면에서 비갱신 관련된 부분에 있어서는 당사가 좀 보수적으로 썼던 부분이 있어서 플러스 되는 효과가 있을 것 같고, 그, 신규 담보에 대해서 강화하는 부분에 대해서는 일부 마이너스 효과가 있을 것 같습니다.
So in terms of the direction of the proposed guidelines, as far as the loss rates are concerned, we actually have had been quite, conservative in our assumptions, particularly for non-renewal type policies. So, the guidelines, if anything, will be an added plus for us. In terms of new coverage, the tightened guidelines may represent a partial, detraction.
사업비 과정의 경우에도 당사는 그 물가 상승률 등에 대해서는 이미 반영을 하고 있었기 때문에, 이, 공통비 원가 동인 관련된 부분에 대해서 지금 합리적인 기준, 내부 기준을 지금 검토를 시작하고 있는 단계입니다.
And then regarding the expense ratio assumptions, we have already been pricing in inflationary assumptions, as well. So for regarding shared cost, cost allocation, we believe, that the guidelines will be quite reasonable or rational.
At this point, I think we do not have exact details in terms of the direction of the policies, particularly regarding the criteria for calculation of the loss ratio. Also, review of the underlying statistics for calculating expense loading. Also, the scope of the assumptions, the assumption calculations is also quite expansive at this point. But once these outstanding points are determined, we will be sure to communicate back with you.
RM 팀장 이지선입니다. 세 번째 질문에 대해서 답변드리겠습니다.
Yes, this is, Yi Ji-sun , Head of the RM team. Let me take your third question.
예, 말씀을 주신 바와 같이 기본 비율은, 기본 자본 비율은 감독 규정상 당국의 권고 기준은 80%, 규제 수준은 50%로 발표되었습니다.
So, in terms of the Tier 1 capital ratio that you mentioned, according to the regulations, 80% was proposed as the recommended level, while the regulatory threshold was set at 50%.
25년 말 기준 당사의 비율은, 157%로, 말씀드린 그 기준을 크게 상회하고 있는 상황입니다.
As of 2025, our Tier 1 ratio is actually 157%, which is substantially above both thresholds.
기본 자본 비율의 시행 일자가 2027년이기 때문에 그 사이에 어느 정도 비율로 관리할지는 좀 더 검토는 해야 되겠지만.
So, because Tier 1 capital regime is going to go into effect only in 2027, in the interim, ahead of 2027, exactly what level we will manage our Tier 1 against, we will have to do some more further review.
기본 자본 비율의 그 변동성은 킥스 비율 대비 조금 더 큰 점을 고려해서, 지금 대략적으로는 120이나 130% 정도 수준으로 관리되면 저희가 중장기 킥스 180 정도에 적정하게, 관리되 비슷한 수준으로 관리되지 않을까 지금 생각하고 있습니다.
But, in given that the Tier 1 ratio, it has slightly wider volatility versus the K-ICS ratio, roughly speaking, we think that, Tier 1 broadly within 120%-130% would be, largely consistent with our mid- to long-term K-ICS range of 180%.
정확한 수준은 추후, 규제 시행 전에 다시 한번 공유드리도록 하겠습니다. 이상입니다.
In terms of the exact level that we will be managing against, we will get back to you before the regulations actually enter into effect.
The following question will be presented by Seung-Gun Kang from KB Securities. Please go ahead with your question.
Uh, yeah.
Yes, thank you for the opportunity. We did talk a bit about dividends, and you did clarify that proceeds from SEC share sales will be used as part of the funding for future dividend payments. So, in terms of the overall picture, by 2028, the company has stated that you intend to gradually increase your payout ratio up to 50%. Now, our hope was that in the interim, up to 2028, we would have liked to see the SEC, the disposal gains, be used to fund special dividends as an added layer, instead of having to wait until 2028. So, there were some expectations that we might see a rather faster increase in your payout at the front end.
However, based on what you have announced, this time, it does seem that we will have to wait until 2028. While the disposal gains will be included in the overall distributable pool, it seems that you're painting a more or less linear trajectory, as you move toward that 50% target. So because there may be those types of concerns, if you could clarify and provide us with more clear guidance, I'd appreciate it.
네, CFO 이완삼입니다.
Yes, this is the CFO, Lee Wan-sam. So again, it is very hard for us to also estimate the exact timing of when we will see disposal gains on our SEC shareholdings. And also, the size of those, the disposal and the gains also is subject to a lot of variance as well.
That said, we cannot specify exactly how much of those proceeds will be used to fund the dividends. So, in terms of determining our strategy, we intend to be quite strategic. For example, the core behind our capital management policy will be the gradual improvement to our dividend per share. And any time that there is a disposal of any of our affiliate holdings at a scale that could potentially impact that, also, anytime we have a non-recurring source of earnings, we intend to evenly allocate those proceeds over a specific time period and include in the pool of funds available for distribution. And so overall, we will be quite strategic.
Again, anytime these types of events may occur, we will review internally and update the market as quickly as possible.
Currently, there are no participants with questions. Please press star one, star and one to give your question. The following question will be presented by Ji-won Kim from Daol Investment & Securities . Please go ahead with your question.
아, 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 그 마무리 되는 시점에 제가 짧게 질문을 드리면요. 그 조금 전에 말씀 주셨던 그 특별배당 관련해서 만약에 비경산적인 부분이 발생을 하면 적정 기간 내에 이제 안분을 해서 전략적으로 이제 판단을 하겠다고 언급을 주셨는데, 그 적정 기간이라고 하는 시점이 저희가 밸류업 계획상으로, 정하시는 뭐 2028년, 2029년이라는 이런 특정 시점 내에 포함되는 기간인지 여부를 여쭤보고 싶습니다. 감사합니다.
Yes, thank you. Just a quick question, before you're ready to wrap up. You mentioned that potentially non-recurring earnings may be used as part of special dividend. You did mention that you will be strategic, you will be allocating those proceeds over a certain time period. In terms of time period, would it be within the timetable of your Value-up plan? So within the bounds of, say, 2028 or 2029?
예, CFO입니다. 전자 그 대규모 매각이 발생해서 저희도 매각, 매각 규모가 크게 발생을 하고, 또 이럴 경우에 매각 규모와 DPS 성장률에 따라서 적정 기간 안분은, 그때 상황에 따라서 좀 달라질 수 있기 때문에, 그 시점에 대해서 시장과 소통을 좀 하도록 하겠습니다.
Yes, this is the CFO. In the event that we do a major sell-off of SEC shares and, indeed, see a sizable gain from the disposition, in that kind of scenario, still the size, or it would depend on the size of the disposition gains, also the DPS growth rate at that time, which will inform how exactly we will allocate, evenly, over what exact time period. So, we will try to follow up with more specifics, at that time period or at that time.
또 그 향후 전자, 조금 전에 말씀드린 바와 같이 전자 매각이 발생 시점과 그 규모를 정확하게 저희가 예측을 할 수가 없기 때문에, 조금 전에 질문 주신 그런 정확한 시점을 말씀 못 드려서 다시 한번 더 죄송하게 생각합니다. 이상입니다.
And so again, because we cannot accurately predict exactly when the timing will come for the sell-off of the SEC shares and what size of that will be, I apologize that we are not able to be more specific in terms of the expected timing.
질문은 골드만삭스 박신영입니다
The following question will be presented by Shin Yeong Park from Goldman Sachs. Please go ahead with your question.
안녕하세요. 저 골드만 박신영입니다. 저는 그 밸류업 계획 발표 시기랑 자사주 소각 계획에 대해서 여쭙고 싶은데요. 저희가 아직 밸류업 계획을 굉장히 오래 기다리고 있는 것 같은데, 이제 다른 삼성 계열사 같은 경우에는 자사주 소각이라든지 이런 것들을 일부 시작을 한 것 같아요. 그래서 저희는 그게 언제쯤 가시성이 생길 수 있는지, 예를 들어서 상법 개정안이 패싱이 되면은 그 다음에는 이제 저희가 관련한 계획을 들을 수 있는 건지, 아니면은 추가적으로 또 고려하시는 사항이 있는 건지 말씀해 주시면, 큰 도움이 될 것 같습니다. 감사합니다.
Yes, this is Park Shin Yeong from Goldman Sachs Securities. I think I'd like to ask two questions on the timing of your announcement, on your Value-up plan and also cancellation of treasury shares. I think we've been waiting for some time now, for the company to announce, your plans on the value program. Other, affiliates within the Samsung Group apparently have already begun, cancellation of their treasury shares. So when should we gain more visibility in terms of Samsung Life? Will you potentially be ready to make that announcement once the proposed, revision to the Commercial Code is finalized? Or even then, would there be any, any additional, consideration, that you would have to take into consideration? It would be very helpful to know.
예, CFO입니다. 먼저, 밸류업 공시가 지연되고 있는 점에 대해서는 다시 한번 더, 오래 시간 동안 기다려 주신 투자자분들께 진심으로 죄송스럽게 생각합니다.
First of all, I'd like to express my sincere apologies to our investors, who I know have been waiting for quite a long time. I apologize for the delay in our disclosure of our Value-up plan.
현재 그 대내외 시장 상황과 자사주 소각과 관련한, 정부의 법 개정, 방향성 및 진행 경과를 지켜보고 있으며, 법 개정 결과에 따라서 소각 등을 포함한 자사주 처리 계획을 종합적으로 검토해서 시장과 소통하겠습니다.
So we are currently observing developments as they unfold, including evolving market conditions in and outside of Korea. Also, the government's move to regarding the proposed change to the laws regarding treasury share cancellation. And once the revision is finalized, then we will undertake a review of what we will do with our treasury shareholdings, including possible cancellation and update the market.
예, 마지막으로, 상법 개정 시기를 정확하게 예측할 수는 없지만, 상법 통과 시에 자사주에 대한 처리 방안을 포함한 전체적인 자본 효율성 제고 방안 등을 종합적으로 반영해서 밸류업을 공시, 밸류업 공시를 검토하고 있습니다.
And again, it is hard to predict exactly when the Commercial Code revision will be finalized and complete. But once the bill is passed into law, we will again undertake in a comprehensive consideration our overall value program, including measures to enhance our capital efficiency.
예, 이때는 그 자사주 소각 계획과 추후 하는 정책, 중장기 손익 및 자본 효율성 제고 방안 등을 종합적으로 고려해서 검토하고 있다고 말씀드리겠습니다. 이상입니다.
So again, it will be a comprehensive review of what we do with our treasury shares, including possible cancellation. Also, our mid- to long-term profit outlook. Also, our shareholder policies will be included in our Value-up disclosure at that time.
네, 더 이상 추가 질문이 없는 관계로 오늘 실적 발표회는 여기서 종료하도록 하겠습니다. 추가적인 질문이 있으신 분들께서는 IR 파트로, 연락 주시기 바랍니다. 감사합니다.
As there are no further questions, we will now conclude our conference call. For further inquiries, please contact the IR team.