[Edaily Reporter Kim Hyung-il ] LS SECURITIES assessed that SamsungFire&MarineInsurance(000810)has laid the groundwork for global business expansion through its acquisition of a controlling stake in the British insurance company Canopius. With the contribution of overseas operations to profits expected to rise to over 20%, the firm maintained its “Buy” rating and target price of 800,000 won.

On the 11th, the LS SECURITIES Research Center analyzed that SamsungFire&MarineInsurance acquired a 40.5% stake in Canopius the previous day for approximately 2.3 trillion won ($1.67 billion), raising its ownership stake to 80.6% and securing the position of largest shareholder. The company plans to bring in private equity firm KKR as a co-investor holding a 12.15% stake to pursue entry into the U.S. enterprise and special risks (E&S) primary insurance market. It expects to finalize the acquisition of management control in the first half of next year, following approval from regulatory authorities in South Korea and the United Kingdom.

LS SECURITIES determined that the acquisition price is appropriate and that the financial burden will not be significant. The acquisition price of $1.67 billion represents a price-to-book ratio (PBR) of 1.7 times based on Canopius’s total capital as of the end of last year, Given that Canopius has recorded a return on equity (ROE) of over 20% over the past three years and that the PBR applied when LS Securities acquired a 21% stake last October was 1.4 times, the valuation and control premium are considered appropriate.

The burden associated with the capital raise is also expected to be limited. This is because there are no plans for separate external financing, and the decline in the solvency ratio (K-ICS) is projected to be limited to around 20%.

Canopius’s contribution to profits is expected to grow in line with the increased stake. In the first half of 2026, equity method income from Canopius amounted to 168 billion won, accounting for 9.1% of SamsungFire&MarineInsurance’s pre-tax profit. As the ownership stake nearly doubles compared to the previous level, the share of profits is estimated to expand to around 20%. When combined with profits from other overseas equity investments—such as the joint venture (JV) in China—and insurance revenue from overseas subsidiaries, the profit contribution from overseas operations is projected to significantly exceed 20%.

LS SECURITIES assessed that this acquisition will serve as a catalyst for the full-scale expansion of global operations. The firm explained that as the global business platform is strengthened in the future, opportunities to enhance growth and profitability will continue to emerge. It also cited the fact that overseas insurers with global portfolios, such as Tokyo Marine, are trading at a price-to-book ratio (PBR) of 1.5 times or higher as supporting evidence. Based on this, the firm added that SamsungFire&MarineInsurance’s stock price premium within the industry can be justified.