Amid expectations of a Samsung Life dividend, insurers’ 1quarterly earnings diverge
Samsung Life holds a stake in Samsung Electronics of 8.41%, and this year 1alone, investment gains in the quarter totaled 1.2trillion won. Life insurers’ results improved, while those of non-life insurers declined; insurance-sector loan balances fell by more than 1trillion won from year-end, while the share of non-performing loans increased.
Samsung Life holds a 8.41% stake in Samsung Electronics. The company disclosed that investment gains related to Samsung Electronics amounted to 1trillion won in the quarter 1.2alone this year. Over the same period, results diverged between life and non-life insurers.
The life insurance industry’s 1quarter net profit rose 10% year on year. Samsung Life could pay dividends totaling more than 3trillion won this year, it has been suggested. Industry watchers cite dividend expectations as one factor in the results.
According to Financial Supervisory Service statistics, outstanding loans extended by insurers fell by more than 1trillion won from the end of last year. The contraction in corporate lending was identified as a key factor. The same data also showed that the share of non-performing loans in the insurance sector had increased.
In the Gwangju–Jeonnam financial sector, 1quarterly loan balances increased from the previous quarter. Regional lending trends differ from the national average. Increased lending in provincial areas may partly affect insurers’ lending behavior.
In summary, amid the spotlight on improved life insurers’ performance and dividend expectations, two conflicting trends are evident: a reduction in the insurance sector’s loan balances and an increase in the share of non-performing loans. The relevant disclosures are based on materials published separately by each insurer and statistics from the Financial Supervisory Service. More specific figures are expected in additional disclosures and quarterly reports.