'Freedom+50'for Retired Life

Samsung Life introduces new insurance product for life after retirement

Samsung Life Insurance Co. has extended recently its campaign to push retirement asset expansion from the guarantee asset campaign, the company said.
The largest life insurance company in the country has launched the Freedom+50 retirement insurance brand and launched a massive campaign to sell the product to people over 50 from Sept.1.
The company said the Freedom+50 brand is targeted at people over 50 as the brand name suggests it is for people over 50 to enjoy full freedom in life through an active campaign geared to hike the company's retirement asset from 35 trillion won to 53 trillion won and the number of policyholders from 1.85 million to 2.15 million.
In order to sell the life insurance brand, the company has launched a diversified line of life insurance policies such as no-dividend pension insurance designed to pursue stability and Samsung Power Instant Pension Insurance, a one-time payment type.
No-dividend pension insurance and payment pension insurance products allow their policyholders to use part of the premiums accrued when they need money quickly. Couples can take out no-dividend insurance policies jointly, which is so designed that if a partner dies, the survivor can take over the insurance policy. Policyholders from the age of 45 can get payment of retirement pension .
Since its establishment 50 years ago, our company has been dedicated to finding ways to live in harmony with others instead of focusing on just generating profits, as interdependence is the main concept of life insurance, That's why we have always been involved in social contribution activities, said President Lee Soo-chang of Samsung Life Insurance Co. in an interview with a news media recently.
My life goals are not that different from that of our company. I think living a happy life in harmony with others is the most valuable and rewarding way. Ultimately, I want to live my life while contributing to our nation and society, the Samsung Life CEO continued.
President Lee's sound philosophy in life corresponds with Samsung Life's balanced investment policies in terms of spreading risks through expanded areas of investment.
There is an old saying that you should not put all your eggs in one basket. If you drop the basket, then you will break all your eggs. It's the same with investing. Investors must diversify the risk, the company said in explaining its overseas investment activities.
Year of experience have shown us that there is a low correlation between the rate of investment assets in foreign currencies and the rate of investment return in Korea. In other words, investment assets in foreign currencies are largely unaffected by the decrease or increase in the value of investment assets in Korea. Therefore it is essential to invest in foreign countries in order to ensure the safe management of your assets, especially for those who invest on a long-term basis of up to 20 or 30 years. Although unified currency in the international capital market has increased the correlation between investment returns in Korea and foreign countries, foreign stocks and bonds still yield the benefits of diversified investment.
In Korea, there is a limited number of investment op0-tions with A- or higher grade. Because there is an inadequate number of bonds with a high credit rating, the bond price is relatively high and the rate of investment is low. The credit risk also increases since assets are focused on a limited number of bonds. It takes one or two companies to shake up the entire financial industry.
Turn your eyes to foreign markets, and you will find that it's relatively easy to find high-quality bonds. A reliable asset management company should be able to diversify the credit risk by investing in foreign bonds, which yield as high returns as Korean bonds with the same credit risk.
It is essential for an insurance company to invest safely on a long-term perspective. However, while the average maturity period of debt of Korean insurance companies is between seven to eight years, the average maturity period of domestic bonds is 2.5 years. In order to invest in long maturity options, insurance companies must have the capabilities to invest in foreign markets.
When it comes to asset management, Samsung Life is like a gigantic carrier. Samsung Life never misses new investment opportunities while investing in stocks, bonds, real estate, and other traditional investment options. Samsung Life aims for safe investment by focusing on high-quality bonds of major foreign markets, while also creating new sources of income by developing new financial products such as private equities, hedge funds, and credit linked notes through exhaustive analysis and risk management.
In 1996, Samsung Life invested a total of $200 million in the U.S. and European stock markets in order to build a strong, long-term portfolio.
As of the end of June, 2006, Samsung Life had 101 trillion won in total assets and 82 trillion won in operating assets. In the fiscal year of 2005, Samsung Life achieved a gross profit rate of 6.8 percent on operating assets. nw

President Lee Soo-chang of Samsung Life Insurance Co.

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