(LEAD) Samsung Life’s Q1 net income plummets amid stock market volatility
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SEOUL, May 13 (Yonhap) — Samsung Life Insurance Co., South Korea’s top life insurer, said Friday its first-quarter net profit fell 72.9 percent due to business losses. variable life insurance in a context of recent stock market volatility.
Net profit was 302.2 billion won ($234.5 million) in the January-March period on a consolidated basis, compared with a profit of 1.1 trillion won a year earlier, it said. stated the company in a regulatory filing.
Operating profit also fell 75.7% year-on-year to 323.8 trillion won, with sales down 7% to 9.3 trillion won.
The lackluster results were attributed in part to higher losses from underwriting variable-life insurance products that were highly exposed to fluctuations in securities markets.
The company saw its losses increase by 213 billion won from a year earlier.
Equity markets, in particular, have recently suffered from volatility due to inflation concerns and aggressive monetary tightening by major economies, including the United States.
Meanwhile, Samsung Life Insurance, the insurance arm of Samsung Group, said its assets stood at 328.1 trillion won at the end of March.
The insurance company also said its risk-based capital ratio (RBC) – actual solvency capital divided by minimum required solvency capital – stood at 246%, which was among the highest among peers.
The figure was over 150% or more recommended by local financial authorities.
Shares of Samsung Life Insurance were trading up 2.68% from the previous session at 10:19 a.m. on the main exchange in Seoul, outperforming the 1.45% rise in KOSPI.