[Edaily Reporter Hyera Lee ] On the 22nd, DaishinSecurities stated that it is difficult to fully explain the corporate value of Samsung Life Insurance ( Samsung Life Insurance(032830)) based solely on traditional insurance-sector valuation metrics. Consequently, the firm upgraded its investment rating to “Buy” and raised its target price to 590,000 won from the previous level.

Park Hye-jin, an analyst at DaishinSecurities, stated in a report released that day, “Samsung Life Insurance’s stock price has been rising day after day as it reflects the value of its stake in SamsungElectronics,” adding, “A Sum-of-the-Parts (SOTP) valuation method is necessary to reflect not only the core insurance business but also the value of its holdings in subsidiaries.”
DaishinSecurities calculated Samsung Life Insurance’s fair enterprise value at 118 trillion won. This figure is the sum of the value of its stakes in listed companies (86 trillion won), the value of its stakes in unlisted companies (3.8 trillion won), the operating value of its core insurance business (26.5 trillion won), and net cash (1.74 trillion won). In particular, the value of its stake in SamsungElectronics was assessed based on the 40% share held by shareholders.
Researcher Park assessed that Samsung Life Insurance’s core insurance business remains robust. “Samsung Life Insurance’s sustainable annual net income is in the range of 2.5 trillion to 2.6 trillion won,” Park said, adding, “This year, net income is expected to rise to 2.81 trillion won as a portion of provision liabilities is recognized as investment gains.”
Researcher Park noted, “Although competition in health insurance is intensifying across the industry and growth potential is limited, Samsung Life Insurance possesses the strongest competitiveness in health insurance sales among life insurers, thanks to its large network of exclusive agents.”
He predicted that future stock price movements would be highly correlated with those of SamsungElectronics. Analyst Park stated, “Given the limitations on growth in the core insurance business, Samsung Life Insurance’s enterprise value is bound to be significantly influenced by the value of its equity holdings, including SamsungElectronics,” adding, “Ultimately, the direction of Samsung Life Insurance’s stock price is highly likely to be determined by the trend of SamsungElectronics’ stock price.”