Samsung Fire & Marine Insurance Receives 'AA' S&P Credit Rating: "First Private Company in Korea"

Recognized for Capital Strength and Risk Management Capabilities
Enhancing Competitiveness in the Global Market

Samsung Fire & Marine Insurance announced on August 2 that it has become the first private company in Korea to receive an 'AA' credit rating from the global credit rating agency Standard & Poor's (S&P).

Samsung Fire & Marine Insurance Headquarters, Seocho-gu, Seoul. Samsung Fire & Marine Insurance

The company's long-term insurer financial strength rating and issuer credit rating have both been upgraded by one notch from 'AA-' to 'AA,' placing them at the same level as South Korea’s sovereign credit rating.

A representative from Samsung Fire & Marine Insurance explained, "This means that Samsung Fire & Marine Insurance's excellent capital strength, stable profitability, proactive risk management capabilities, and sustainable growth potential have been officially recognized in the global market."

S&P cited several reasons for the upgrade, including robust asset-liability (ALM) duration management, excellent capital adequacy maintained even after the introduction of the new international accounting standard (IFRS17), stable profitability and the ability to generate internal capital, its leading position in the domestic non-life insurance market, and increased regional and revenue diversification backed by expansion of its global operations. Each of these factors was independently highlighted as a key reason for the rating upgrade.

S&P also projected that as Samsung Fire & Marine Insurance's underwriting capability and claims management skills continue to improve profitability, its combined ratio—which stood at approximately 91% last year—will gradually improve to the 88%–91% range over the next two years.

Samsung Fire & Marine Insurance believes that this credit rating upgrade will allow it to offer individual customers even greater confidence in its strengthened financial stability and claims-paying ability.

The company also expects that, for corporate clients, its global-level credit status will enable it to further strengthen its capacity to provide stable risk coverage across areas such as large-scale corporate insurance, specialty insurance, and project risk underwriting. In particular, Samsung Fire & Marine Insurance's financial stability and claims-paying ability are expected to serve as important competitive advantages throughout sales processes involving long-term insurance contracts and management of large-scale risks for corporate customers.

The company also stated that its solid capital base will support capital needs required during overseas business expansion, and that its growing investments in Lloyd's insurer Canopius and similar ventures are expected to lead to a continued increase in overseas business profit contribution.

A Samsung Fire & Marine Insurance representative stated, "Receiving this credit rating is a meaningful achievement that recognizes our world-class capital strength, risk management capabilities, and sustainable growth potential," adding, "We will continue to provide stable insurance services to our customers and strive to grow as a trusted global top-tier insurer for both corporate clients and in the global market."

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