'Partner for Life'
Samsung Life boasts its management capabilities to manage variety of asset portfolio
Apartner for life"is the slogan for Samsung Life Insurance Co. with assets over 100 trillion won and 82 trillion won in operating assets as of the end of June. In fiscal year 2005, the company earned a gross profit rate of 6.8 percent on operating assets. Samsung Life's asset portfolio is composed of a wide variety of assets including domestic and foreign securities, corporate and retail finance, real estate, and derivative products. Among these, interest revenues from long-term bonds and loans account for about 81 percent, while foreign investment accounts for about 11 percent or 10.4 trillion won. Under the slogan of "Long-Term & Global Investment"Samsung Life is further strengthening its investment management capabilities in order to build a strong, long-term portfolio that customers can trust, while also developing and investing in new products for the global assets market.
The stability of an insurance company is based on its asset management capabilities, claims Samsung Life. It said the main purpose of buying insurance policies is to be protected against accidents and diseases for the next 20 or 30 years. However, the domestic financial environment is changing rapidly and the financial industry is becoming like a war zone where financial institutions are engaged in fierce competition. How can you be sure which insurance companies would still be in business after 30 years/
An insurance company's asset management capabilities have direct effects on the profits from performance management products such as variable insurance policies. In order to ensure long-term and stable returns instead of aiming at short-term and high returns with high risks, an insurance company must have the capabilities to conduct microscopic variables. Just because a financial product has a high value for a few days, it does not mean that it will yield high profits 30 years later.
With over 530 professional asset managers, Samsung Life has the largest team of asset managers in Korea. They ensure high profits through various vehicles for over 1000 different types of asset classes in the seven major areas of investment, such as stocks, bonds, alternative investment, retail finance, corporate finance, real estate and short-term assets.
Samsung Life began investing in foreign countries in 1996. Having invested over 11 trillion won in foreign countries as of 2004, the company is now recognized as the best in Korea in terms of investment size and management capabilities. Investing in the U.S., European, and emerging Asian markets, there are no limits to Samsung Life's investment activities.
Samsung Life Insurance Co. celebrated its 49th founding anniversary on May 5th at its international conference room located in downtown Seoul with over 400 persons attending including officers, staff and consultants. Among the various events held at the ceremony were the adoption of a new resolution, entitled, "Resolution to Look after Customers."President Lee Soo-chang, the new CEO of the largest life insurance company and the flagship company of Samsung Group, in his congratulatory speech, said the second-phase of customer care management, which kicked off early this year, should take a firm root this year so that the brand that trustworthy life partner could be made known both at home and abroad correctly and widely. He also said "change and reform,"should be carried out to boost our ability to cope with changes in business environment.
In the meantime, Samsung Life started out as Dongbang Life Insurance Co. in 1957 and was taken over by Samsung Group in 1963 and continued to make a rapid growth in the past 40 years since then at the top of the industry acting as a locomotive for the development of national economy and boosting the welfare for the people.
In 1957, the initial year of the company's operation, insurance premiums collected and assets totaled 8 million won each, but insurance premiums collected between April 2005 and March, this year amounted to 20.6 trillion won with total assets at 99.6 trillion won, making surprise growth during half century of operation. As of the end of April, the company's assets exceeded 100 trillion won, making the company's 49th founding anniversary doubly significant because the company has become the first one in the secondary financial sector with that much assets. nw
President Lee Soo-chang of Samsung Life Insurance Co.