Samsung Life’s investment income boosts life insurers’ earnings, while loans decline
With Samsung Electronics shares held by Samsung Life and investment gains, life insurers’1quarterly earnings improved, while insurers’ loan balances fell and the share of nonperforming loans rose. Dividend expectations in the life insurance sector and indicators of loan soundness are both coming into focus.
Samsung Life holds a stake in Samsung Electronics 8.41% stake. Samsung Life, this year 1from investment gains alone 1.2recorded in profits. As a result, some life insurers’ 1quarterly earnings improved.
Industry sources said that dividends for the full year could exceed 3won on Samsung Life’s dividend alone. Industry estimates show life insurers’ net income for the 1quarter rose 10% year over year. By contrast, non-life insurers’ net profit declined over the same period.
Samsung Electronics delivered record-level results in the 1quarter. These results affected dividends and investment income for its major shareholder. Differences in the share of investment gains among life insurers translated into differences in their earnings.
The Financial Supervisory Service announced the status of insurers’ loan receivables. According to the announcement, insurers’ outstanding loans in the quarter this year 1compared with the end of last year 1fell by more than trillion won. The contraction in corporate lending was cited as the main reason.
The same data showed that the share of nonperforming loans had increased at some insurers. Loan soundness indicators varied among insurers.1Cases were reported in which loan-related indicators deteriorated alongside a decline in quarterly results at non-life insurers.
Expectations for dividends across the insurance industry and loan soundness indicators are both drawing attention, based on the Financial Supervisory Service’s announcement and insurers’ earnings disclosures. Investors can check each insurer’s investment returns and loan-related indicators through quarterly results and disclosures. Further dividend disclosures and announcements related to soundness are expected from each company.
Sources: 매일경제 경제
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