Samsung Life applies to the Financial Services Commission to make Samsung Fire a subsidiary (South Korea)

On the 13th, South Korea's Samsung Life Insurance Co., Ltd. applied to financial authorities to incorporate Samsung Fire and Marine Insurance Co., Ltd. as a subsidiary.
Samsung Life Insurance said, "We will hold shares in Samsung Fire & Marine, which is a valuable asset, and will contribute to increasing the value of the government (
"After taking into consideration a comprehensive assessment of our policies to enhance corporate value, we have decided to proceed with the process of incorporating Samsung Fire & Marine into our subsidiary," the company said.
Prior to this, Samsung Fire & Marine Insurance increased its shareholder return rate to 50% by 2028.
Samsung Fire & Marine Insurance Co., Ltd. announced plans to reduce its shareholding in the company from the current 15.9% to less than 5%. If Samsung Fire & Marine Insurance cancels its shares, Samsung Life Insurance Co., Ltd.'s shareholding in Samsung Fire & Marine Insurance Co., Ltd. (14.98%) will be reduced by 1.
In this case, it would violate the regulation that prohibits insurance companies from holding more than 15% of the stock of companies other than subsidiaries. Therefore, Samsung Life Insurance will incorporate Samsung Fire & Marine Insurance into its subsidiary.
Samsung Fire & Marine Insurance Co., Ltd. announced at its investor relations meeting the previous day that it plans to cancel its own shares in April after the general shareholders' meeting in order to increase shareholder returns.
Samsung Fire & Marine Insurance's CFO Koo Young-min said in a conference call held on the same day, "(Regarding the incorporation of Samsung Fire & Marine Insurance into its subsidiaries)
) Samsung Life is currently considering it. However, Samsung Fire & Marine has stated that there will be no change to its governance structure. Director Ku said, "Even if the company is incorporated as a subsidiary of Samsung Life, it will continue to have directors as before.
The Financial Services Commission said it will continue to hold Samsung Fire & Marine's shares if it receives approval to incorporate the company as a subsidiary.