DB Securities said Samsung Life Insurance is increasingly likely to move in tandem with Samsung Electronics' stock as gains on the valuation of Samsung Electronics have grown. It raised its target price to 332,500 won from 235,000 won, but kept its investment rating at "Hold," noting a lack of catalysts to lift the share price on its own.
Earlier, Samsung Life Insurance disclosed that it posted a net profit of 1.2036 trillion won in the first quarter of 2026. That was up 89.5% from a year earlier and far above the consensus (the average of securities firms' forecasts) of 756.4 billion won.
Lee Byung-geon, an analyst at DB Securities, said, "Increased dividend income from Samsung Electronics and strong results at affiliates such as securities and asset management played a role," but added, "A one-off investment gain of 525 billion won from the reversal of provisions for immediate annuities and profits from real estate sales was the biggest reason for the upside surprise."
Even accounting for the base effect of realizing real estate disposal gains in the 200 billion won range last year, this year's net profit is expected to increase from a year earlier.
Samsung Life Insurance also stressed that it will maintain its principle of an "upward DPS (dividend per share)" even as the stock rises on expectations of a special dividend from Samsung Electronics. Lee Wan-sam, chief financial officer (CFO) at Samsung Life Insurance, said, "We have grown DPS by an annual average of more than 16% over the past five years, and we will increase it by at least as much as recurring profit."
Analyst Lee said, "However, if the dividend increases too much, the company mentioned it would consider paying it out over several years, so the possibility of a sharp increase in DPS, as some in the market expect, does not seem high." He projected DPS of 6,200 won, up 16% from last year.
As gains on the valuation of Samsung Electronics rise, they are expected to have a positive impact on the share price as well. According to DB Securities, Samsung Life Insurance's gains on the valuation of Samsung Electronics approach 85% of net worth.
Lee said, "Return on equity (ROE) and dividend yield are also around 2%, making it inevitable for the stock to be linked to Samsung Electronics' share price," while adding, "Given the lack of intrinsic share-price drivers, we present a 'Hold' investment rating."