LS Securities raised its investment opinion on Samsung Fire & Marine Insurance to Buy, saying the management stance focused on profitability and efficiency is being strengthened, and lifted the target price to 710,000 won from 520,000 won. The previous trading day's closing price for Samsung Fire & Marine Insurance was 618,000 won.
Jeon Bae-seung, an analyst at LS Securities, said on the 23rd that the risk loss ratio rose to 99.8% in the fourth quarter of 2025 and the gap between expected and actual insurance claims remained weak, causing fourth-quarter net income to slightly miss market expectations, but noted that the tightening of underwriting standards is moderating the pace of the loss ratio's increase. With rate adjustments and improvements to the indemnity health insurance system, the loss ratio and the expected-versus-actual gap are expected to show a gradual improvement trend in 2026.
Jeon said that even with new business stagnation in the contractual service margin (CSM), the management stance centered on profitability and efficiency is being strengthened, adding that auto results are also likely to narrow losses thanks to rate adjustments, which could allow the company to recover its previously weak insurance results.
Earlier, Samsung Fire & Marine Insurance posted revenue of 24.7785 trillion won and operating profit of 2.6591 trillion won last year. Revenue rose 9.4% from a year earlier, and operating profit increased 0.4% from a year earlier. Net income came in at 2.0183 trillion won, making it the only non-life insurer to keep net income above 2 trillion won for two consecutive years.