Corporate Logo(source: samsungfire.com)
Korea Investment & Securities Co.,Ltd announced on July 9 that it has raised its target price for Samsung Fire & Marine Insurance (000810) by 10%, from 480,000 won to 530,000 won, anticipating a gradual recovery in profitability following a first-quarter trough. The investment rating was maintained at ‘Buy.’
According to analyst Hong Ye-ran at Korea Investment & Securities Co.,Ltd, Samsung Fire & Marine’s second-quarter net income attributable to controlling interests is expected to reach 603.6 billion won, broadly in line with market consensus.
Hong explained, “Compared to the same period last year, weakness in insurance underwriting profit is likely to be offset by solid investment income. Insurance profit is projected to decline 10.3% year-on-year to 508.7 billion won.”
She noted that while long-term insurance results are expected to remain resilient, auto insurance is forecast to post a quarterly loss. “Long-term insurance profit is projected to fall 2.1% year-on-year to 448.8 billion won, as the experience variance is expected to decrease 22.4% year-on-year to 61.8 billion won, despite increased CSM amortization income.”
Auto insurance is forecast to post a loss of 400 million won, down 47.2 billion won from the same period last year. “Due to cumulative rate reductions and rising per-claim losses, the loss ratio is expected to increase by 3.4 percentage points year-on-year to 83.4%,” she added.
Hong emphasized that profitability is expected to improve from the first quarter. “Key indicators are likely to have bottomed in Q1,” she said. “The CSM multiple, which dropped to 11.8x in Q1, is projected to rise to 13.7x, supported by the April rate hike.”
She further projected that the full-year CSM multiple would gradually climb to 12.9x, reflecting continued improvement. As profitability recovers, second-quarter new contract CSM is expected to increase by 6.4% year-on-year and 14.1% quarter-on-quarter to 800.7 billion won.
Annual new contract CSM is also forecast to reach 3 trillion won, performing better than previously expected. “Investment income is projected to grow 20.4% year-on-year to 272.5 billion won, supported by solid asset valuation gains and one-time profits from real estate sales,” Hong added.
Commenting on the basis for the target price revision, she said, “A re-rating in valuation multiples driven by expectations of regulatory easing in the sector underpins the upward revision. Despite the recent rise in the share price, the company remains the most stable option, supported by strong earnings, a differentiated K-ICS ratio, and robust ALM capabilities.”
She concluded, “With excess capital of approximately 4.4 trillion won and a K-ICS ratio exceeding 220%, the company is well-positioned to allocate resources flexibly between growth and shareholder returns, opening further upside potential.”
*[KOSPI] Samsung Fire & Marine Insurance(000810) is the largest property insurance company in Korea, engaged in property and casualty insurance as well as third-party insurance. Market capitalization is 21.303 trillion won (as of July 8, 2025, closing price).
Corporate Logo(source: samsungfire.com)
Korea Investment & Securities Co.,Ltd announced on July 9 that it has raised its target price for Samsung Fire & Marine Insurance (000810) by 10%, from 480,000 won to 530,000 won, anticipating a gradual recovery in profitability following a first-quarter trough. The investment rating was maintained at ‘Buy.’
According to analyst Hong Ye-ran at Korea Investment & Securities Co.,Ltd, Samsung Fire & Marine’s second-quarter net income attributable to controlling interests is expected to reach 603.6 billion won, broadly in line with market consensus.
Hong explained, “Compared to the same period last year, weakness in insurance underwriting profit is likely to be offset by solid investment income. Insurance profit is projected to decline 10.3% year-on-year to 508.7 billion won.”
She noted that while long-term insurance results are expected to remain resilient, auto insurance is forecast to post a quarterly loss. “Long-term insurance profit is projected to fall 2.1% year-on-year to 448.8 billion won, as the experience variance is expected to decrease 22.4% year-on-year to 61.8 billion won, despite increased CSM amortization income.”
Auto insurance is forecast to post a loss of 400 million won, down 47.2 billion won from the same period last year. “Due to cumulative rate reductions and rising per-claim losses, the loss ratio is expected to increase by 3.4 percentage points year-on-year to 83.4%,” she added.
Hong emphasized that profitability is expected to improve from the first quarter. “Key indicators are likely to have bottomed in Q1,” she said. “The CSM multiple, which dropped to 11.8x in Q1, is projected to rise to 13.7x, supported by the April rate hike.”
She further projected that the full-year CSM multiple would gradually climb to 12.9x, reflecting continued improvement. As profitability recovers, second-quarter new contract CSM is expected to increase by 6.4% year-on-year and 14.1% quarter-on-quarter to 800.7 billion won.
Annual new contract CSM is also forecast to reach 3 trillion won, performing better than previously expected. “Investment income is projected to grow 20.4% year-on-year to 272.5 billion won, supported by solid asset valuation gains and one-time profits from real estate sales,” Hong added.
Commenting on the basis for the target price revision, she said, “A re-rating in valuation multiples driven by expectations of regulatory easing in the sector underpins the upward revision. Despite the recent rise in the share price, the company remains the most stable option, supported by strong earnings, a differentiated K-ICS ratio, and robust ALM capabilities.”
She concluded, “With excess capital of approximately 4.4 trillion won and a K-ICS ratio exceeding 220%, the company is well-positioned to allocate resources flexibly between growth and shareholder returns, opening further upside potential.”
*[KOSPI] Samsung Fire & Marine Insurance(000810) is the largest property insurance company in Korea, engaged in property and casualty insurance as well as third-party insurance. Market capitalization is 21.303 trillion won (as of July 8, 2025, closing price).