Samsung Life on Top Again

IThe largest life insurer sees net income rising close to 2 tln won in 2010 for first time in history and tops in industry


President Lee Soo-chang of Samsung Life Insurance Co.

Samsung Life Insurance Co. posted net profit close to 2 trillion won last year, the largest in its history and becoming the first life insurer ever to record net income over 1 trillion won, the company said recently.
The Samsung affiliate said its net profit came to 1.933 trillion won in its fiscal year ending in March from April, 2010, up 113 percent YoY, exceeding its 2009 net profit which amounted to 906.1 billion won.
The largest life insurer in Korea said the one-time profit in the area of investment has been the largest factor that made the net profit to rise to such a height.
The reduced loss provision amounting to 440 billion won due to the return of ABS securities and the sales proceeds from selling securities to be ready for changing the company’s accounting system to IFRS system, which amounted to 470 billion won which combined to total 910 billion won in one-time profit helped to boost the net income for 2010, the company said.
The company said operating profit rose 129.7 percent at 1.94 trillion won last year, while total assets increased 10 percent YoY at 146.34 trillion won.
The company will pay 2,000 won for dividend pending the shareholders’ approval, which came to 400 billion won in total with the majority shareholder Samsung Chairman Lee Kun-hee getting 83 billion won in dividends for his shareholdings in Samsung Life, the company said.
Samsung Life Insurance stands at an important juncture, poised to achieve a quantum leap from Koran market leader to global prominence. The core global competencies for this transition are secured by hiring the best human resources, adopting the best systems and nurturing the best corporate culture. To this end, we are increasing our investments in training and are revamping our systems to remain ahead of the competition. In addition, we are acquiring future business drivers by making inroads into the emerging Chinese, Indian and Thai markets. We will build a sound management system, nurturing the necessary global competencies for us to become a major world player.
Our new management paradigm in the 21st century is to be a highly respected company. Our shared values of caring for customers and adhering to ethical practice present the uncompromising foundation of our management system. As we practice these values, we remain the industry leader in Korea that is trusted by our customers and stakeholders in business as well as society. The company has been a leader in the life insurance industry in Korea introducing new products and services with its talented financial consultants. The company has also been at the forefront of providing social services including the operation of a hospital, children’s home, and support to economically isolated people, among its other public services under its management ideal that corporate profits should be returned to society.
Samsung Life has also been busy exploring overseas market for its products and services. In 1997, the company kicked off its overseas operations by setting up a joint-venture life insurance firm in Bangkok, which was followed by its entry into China’s life insurance market in 2005.
In May of last year, the company at last undertook the initial public offering successfully realizing its long-term dream.
The Asian Financial Crisis of the late 1990s has led to rapid changes in the business environment. Also, it has become a general trend for the economy to maintain low interest rates and slow growth. Management of customer relationship, therefore, becoming increasingly important for a company to maintain growth and survive the fierce market competition; Samsung Life’s move to make customer satisfaction the No. 1 management priority is a timely and appropriate strategy.
In 2003, the Customer Policy Office was launched under the direct control of the CEO. It stands for the company’s determination to make customers are our top priority and commitment to serve customers in all possible ways as well as the fact that this philosophy is shared by all our employees. A consistent code of business ethics for all our employees and consultants has been established and promoted, and education and training sessions have been provided to help employees learn it and put it to practice. nw

Photo on courtesy of Samsung Life