Samsung Life Insurance said on the 14th in its first-quarter earnings release (IR) conference call, "We understand that expectations in the market for shareholder returns are very high due to Samsung Electronics' strong performance, but at this point it is difficult to communicate with the market by finalizing a shareholder return plan based on anticipating special dividends from Samsung Electronics."
Samsung Life Insurance added, "However, if dividends from Samsung Electronics are carried out, the gains will be included in retained earnings, and an increase in retained earnings will also raise the size of dividend payments." Samsung Life Insurance also said that to enhance shareholder value, it will expand its medium-term payout ratio to up to 50% and use dividends higher than minimum recurring profit.
Samsung Life Insurance said the surrender rate rose in January this year due to a stock market rally, but turned to a stabilization trend after February. Samsung Life Insurance said, "We are recently carrying out companywide efficiency management of surrender rates, and due to last year's stock market rally, surrender rates for some financial products have increased by 1% to 2%," adding, "The surrender rate that rose early this year entered a stabilization trend after February, and if the current trend continues, we expect the size of the CSM adjustment will not be large."
On the increase in operating expenses, it expected a gradual reduction after system improvements in the second half, such as restructuring agent commissions. Samsung Life Insurance said, "The life insurance market has grown from a monthly 50 billion won expense market in 2022 to a recent monthly 100 billion won expense market," adding, "Sales expenses have increased significantly due to intensified competition to scout agents and overheated incentives and promotions."
It added, "From the second half, the '1200% rule' will be expanded to GAs, and with total sales expense caps and other measures, volume competition centered on sales expenses is expected to gradually shrink from the second half."
Samsung Life Insurance said first-quarter net profit on a consolidation basis was 1.2036 trillion won, up 89.5% from a year earlier. Insurance profit came to 256.5 billion won due to increased actual-versus-expected loss, while investment profit reached 1.2729 trillion won on higher dividends income and greater profit from subsidiaries and consolidation.