[Edaily Reporter Kim Yoon-jeong] SangSangIn Securities assessed that while #Samsung Fire & Marine Insurance is expected to experience earnings volatility in the short term due to changes in actuarial assumptions, now is the time to focus on expanded shareholder returns and rising equity value. The firm maintained its “Buy” rating and raised the target price to 800,000 won.

On the 19th, Kim Hyun-soo, an analyst at Sangsangin Securities, stated, “The key variable for second-quarter earnings is expected to be the extent to which changes in actuarial assumptions are reflected, but we believe the downside risk to core operating profit will be limited.”
Analyst Kim explained that amortization gains from the contract service margin (CSM) may decline slightly as new collateral loss ratios, non-indemnity renewal-type loss ratios, operating expense assumptions, and the recognition period for common expenses are reflected more conservatively.
However, he noted that no major loss factors have yet been observed in the general insurance segment, and he expects auto insurance to follow a trend similar to that of the first quarter through the second quarter.
He projected that improvements in underwriting results would begin in earnest starting in the second half of the year. Analyst Kim analyzed, “Underwriting results are expected to improve gradually as the effects of the ‘8-week rule’ for outpatients and the inclusion of manual therapy in the managed care system are reflected,” adding, “Volatility in investment gains and losses is also expected to decrease, as market interest rates already largely reflect the possibility of a benchmark rate hike.”
He continued, “With equity method income from Canopius amounting to approximately 220 billion won annually and dividend income from Samsung Electronics totaling about 33 billion won per quarter, we project that consolidated net income for 2026 will reach 2.2 trillion won, a 10.3% increase year-over-year.”
The target price was calculated by applying a target price-to-book ratio (PBR) of 1.18 times to the estimated 2026 book value per share (BPS) of 676,788 won, which reflects the increase in the value of the company’s equity holdings.
Analyst Kim explained, “Samsung Fire & Marine Insurance has set a target shareholder return rate of 50% by 2028, and assuming a step-by-step increase, this year’s dividend per share (DPS) is expected to be 24,000 won, an increase of approximately 23% year-over-year.”
He added, “While short-term earnings volatility due to changes in actuarial assumptions is inevitable, we believe the company will maintain its premium position within the property and casualty insurance sector, given its industry-leading capital strength, the value of its stake in Samsung Electronics, and the visibility of expanded shareholder returns.”