Samsung flexes financial muscle as insurance, card units top rankings
Hyung-gyo Seo
15 HOURS AGO
Samsung Life Insurance's headquarters in Seoul Samsung Group’s financial affiliates are closing in on KB Financial Group for the top spot in South Korea’s financial services sector, underscoring Samsung’s disciplined management amid an economic slowdown.
According to company filings, Samsung Life Insurance Co., Samsung Fire & Marine Insurance Co. and Samsung Card Co. all secured the top position in their respective sectors in terms of net profit during the first quarter.
The three affiliates’ strong performance comes as the domestic financial sector faces mounting headwinds from tepid consumer sentiment and stagnant market conditions.
(Graphics by Daeun Lee) Samsung Life, the flagship of the group’s financial arm, posted 703.7 billion won ($506 million) in net profit in the first three months of this year on a standalone basis, up 8% from a year earlier, despite a deterioration in the broader life insurance industry.
SAMSUNG LIFE’S DOMINANCE
With the results, Samsung Life ranked top not just in the life insurance sector but also in the overall insurance business, including the non-life segment.
Samsung's flag seen outside its headquarters in Seoul
Its two closest rivals Kyobo Life Insurance Co. and Hanwha Life Insurance Co. posted 315.3 billion won and 122 billion won in net profit, respectively.
Samsung Fire & Marine saw its net profit fall 18.8% on-year to 555.6 billion won, reflecting industry-wide challenges, including higher claims and investment losses.
Nevertheless, the company maintained its leadership in the non-life segment, as peers such as DB Insurance Co. and Hyundai Marine & Fire Insurance Co. saw steeper declines in profitability.
Samsung Card's Monimo super mobile banking app launched in 2022 Samsung Card posted a 3.9% on-year increase in net profit to 184.3 billion won, extending its lead in the card business for a second consecutive year.
Samsung Securities Co., meanwhile, saw net profit slide 3.4% to 227.9 billion won, ranking third after Korea Investment & Securities Co. and Mirae Asset Securities Co.
NON-BANKING UNITS DRIVE PROFITABILITY
In aggregate, the four financial units under Samsung reported a combined net profit of 1.67 trillion won on a non-consolidated basis, trailing KB Financial’s 1.70 trillion won.
The Asset, an office building in Seoul, is Samsung Fire & Marine Insurance's headquarters Notably, Samsung’s tally excludes earnings from subsidiaries, which, if consolidated, would put its financial units ahead of KB.
Analysts said the fierce competition between the two financial conglomerates – Samsung and KB – reflects the shifting dynamics in Korea’s financial services sector, where non-bank units are increasingly driving profitability amid margin pressures in traditional lending businesses.
“The first-quarter results once again highlight Samsung’s strength in operational management and risk controls, particularly in insurance and card businesses where disciplined underwriting and cost efficiency remain key differentiators,” said a Seoul-based analyst at a domestic brokerage.
Write to Hyung-gyo Seo at seogyo@hankyung.com In-Soo Nam edited this article.