Samsung Life Insurance, RBC stricter regulations concerned ... Possibility of recapitalization is limited - Meritz

Concerned about the [financial newspaper goyounghun Korea News] Meritz Investment Bank Securities, Samsung Life Insurance solvency ratio for 20 days (RBC) stricter regulations, but given the limited possibility of recapitalization were saying the target price ₩ 130,000 BUY.

Connecting dominated the fourth quarter net profit of 74.4 billion won of Samsung Life Insurance has achieved 127% year-on-year decline. Although recognized as a bargain purchase gain of 370 billion won bond sale was no profit, to the sale of real estate-related investment losses declined by 3.3%.

Meritz Investment Bank Securities researcher Kim Go-Eun "variable life assurance reserves are 372.3 billion won, is that the increase in the loss ratio declined to 75.7% quaternary profit is positive," he said he diagnosed "secondary margin was -0.68% margin expanded slightly backward point." .

Kim researchers "burden of RBC stricter regulations impact but respond there seems to be no herd" and "step-by-step debt maximum term expansion in scheduled applies, the disclosure based on interest rates decline, variable calculated based on changing insurance and pension risk amount etc. Although expected to lead to further declines RBC said side, Samsung life is more than 200% can be maintained, "he said.

He added, "While preparing for change through active inclusion of portfolio improvements in protection-type-oriented and long-term bonds uncertainty due to the debt introducing structural IFRS 17 and the new solvency ratio is greater" and "high variable life and pension sales weight step by step Although the impact of the RBC seems possible stricter regulations concern the sale of some shares resolved by e "and predicted.



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