April 18, 2024

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[THE INVESTOR] Although Samsung Fire and Marine Insurance missed market expectations in the fourth quarter last year it is the best alternative in the industry, said KTB Investment and Securities on Feb. 16, lowering the target price to 330,000 won (US$290.83) from 350,000 won.

Its net profit came in at 85.3 billion won, 44.2 percent lower than estimates, as one-off profit from the sale of real estate and Samsung Securities stake was dented by the loss from impairment of Samsung C&T, explained analyst Lee Nam-seok.

There is a possibility that loss ratio from automobile insurance might worsen, said the analyst but recommended Samsung F&M Insurance as the best alternative in the industry. 

“Although confidence in the possibility of improvement in loss ratio declined and weakened the industry momentum, its risk based capital is over 300 percent, relatively free from the burden of capital expansion,” said Lee.
The analyst maintained a “buy” recommendation saying that it is the only company that has the capacity to carry out shareholder-friendly policy regardless of the strengthened regulations. 

By Hwang You-mee (glamazon@heraldcorp.com)