Samsung Life Insurance Co., Ltd. Insurance
Insurance Rating Date: Samsung Life Insurance Co., Ltd. 21 November 2016
Analyst Rating Overview Rating History
Song Mi Jung (IFSR)
+822 368 5591 [email protected] IFSR AAA/Stable AAA
Yang Seung Yong Rating Type Initial Rating AA+ Team Head, CPA +822 368 5589 Unsecured Bond NR [email protected] CP NR 13.01 14.01 15.01 16.01
Financial Highlights (Unit:KRW 100mn, %)
2013(03) 2013(12) 2014(12) 2015(12) 2016(09) Total Assets (Separate a/c incl.) 1,854,751 1,910,034 2,112,041 2,262,438 2,416,772 Equity 213,354 184,766 215,678 228,659 273,638 Premium Income (Separate a/c 307,555 196,005 282,388 incl.) 274,571 191,383 Net Income 9,354 4,548 11,311 10,839 10,075 Net Income after reflecting Loan Loss Reserve Adjustment 8,684 4,300 10,973 10,376 9,830 General a/c ROA 0.6 0.4 0.7 0.6 0.7 Investment Return Ratio 4.2 4.3 4.3 3.7 4.2 Death Benefits/Risk Premiums 85.8 87.1 85.5 77.8 80.9 Actual Expense/Premium Income 12.1 13.6 12.4 12.8 12.8 RWA/Total Assets 34.9 34.5 32.9 33.2 33.8 Weighted Bad Assets/Total Assets 0.2 0.1 0.1 0.1 0.0 Leverage (x) 7.2 8.5 8.0 8.0 7.2 RBC Ratio 408.3 329.5 369.2 336.5 388.3 Applied F/S Separate Separate Separate Separate Separate Note 1: Leverage ratio= (General account assets - unamortized deferred acquisition costs)/equity Note 2: Figures have been adjusted and reclassified in accordance with K-IFRS.
Rating Rationale
Korea Ratings Corporation(KR) has assigned an Insurer Financial Strength Rating of ‘AAA’ to Samsung Life Insurance Co., Ltd.(the Company). The rating reflects as follows:
Market-leading position in the industry Diversified product mix, stronger sales activities on protection-type products Highest level of financial soundness in the industry as shown in profitability and capital adequacy Expectation of excellent financial soundness Need for monitoring of trend of RBC ratio and capital management strategy following tightening of regulations
Company Profile
Established in April 1957 as ‘Dongbang Life Insurance’, the Company was
www.korearatings.com Samsung Life Insurance Co., Ltd. Insurance
incorporated into Samsung Group in July 1963. It changed its name to the current ‘Samsung Life Insurance’ in July 1989. Based on excellent brand awareness, competitive edge of the captive agent channel, and highly loyal customer base, the Company has gained no. 1 position in Korea’s life insurance industry.
www.korearatings.com Samsung Life Insurance Co., Ltd. Financial Institutions
Key Rating Rationale
As one of the largest life insurers in the industry, the Company’s business stability is very strong. Based on excellent brand awareness, competitive edge of the captive agent channel and loyalty of customers, the Company has secured top level of business stability proven by its no.1 position(22.5% market share measured by premium income in H1 FY2016) in Korea’s life insurance industry. The product mix is diversified across protection-type, saving-type, and separate account products, and the Company has been strengthening sales activities on protection- type products as part of its recent growth strategy focused on the profitability.
Superb profitability has been maintained, and the Company’s financial soundness demonstrated by RBC ratio is on the highest level in the industry. In spite of drop in investment return ratio amidst continued low interest rate trend, the Company has been posting profit in both expense margin and mortality margin in a stable manner based on the economy of scale and excellent operational efficiency. As the Company posted profit over a long period of time and accumulated large earned surplus by retaining earnings, its equity is the largest in the life insurance industry. At the same time, the RBC ratio is highest in the industry, standing at 388.3% as of end-Se