[Click e-Stock] "The Leader is Back" Daishin Securities Raises Samsung Fire & Marine Insurance Target Price from 620,000 to 870,000 Won

On July 16, Daishin Securities raised its target price for Samsung Fire & Marine Insurance from 620,000 won to 870,000 won, citing expectations of robust earnings driven by strong performance in both insurance and investment profit.

Hyejin Park, a researcher at Daishin Securities, stated in a Samsung Fire & Marine Insurance report titled "The Leader is Back" released on the same day, "Both insurance profit and investment profit are strong, and second-quarter net profit is expected to hit an all-time high since the introduction of IFRS17." She explained this as the main reason for the positive outlook and also named Samsung Fire & Marine Insurance as her top pick in the sector along with the target price raise.

Park noted, "A particularly positive aspect is that, following the first quarter, the risk loss ratio is expected to decline again in the second quarter. Since July, manual therapy has been designated as a managed benefit, so the loss ratio is expected to fall further in the second half." She added, "The automobile insurance segment is also expected to see a loss ratio improvement in the second quarter and throughout the second half compared to last year, following the rate hike. This indicates that both long-term and automobile lines have passed their lowest points, as reflected in the indicators." She explained that this is clear evidence of a positive trend in key metrics.

Furthermore, Park said, "In addition to the recovery in the main business' profitability, the value of electronic equity holdings and the corresponding dividend income should also be considered in the valuation." She estimated, "While insurance profit is expected to remain solid, investment profit is also likely to stay strong at 390 billion won (up 7.6% QoQ, up 10% YoY), driven by increased interest income from rising interest rates, higher valuation gains thanks to index increases, and higher equity method gains from Canopius."

The previous day's closing price of Samsung Fire & Marine Insurance was 661,000 won.

This content was produced with the assistance of AI translation services.