Seoul Guarantee Insurance cements position as industry leader
![Seoul Guarantee Insurance held the SGI WAY 2030 proclamation ceremony in February. [SEOUL GUARANTEE INSURANCE]](https://koreajoongangdaily.joins.com/data/photo/2023/03/14/b05e890d-faa5-4268-bf30-c26003a23f1f.jpg)
Seoul Guarantee Insurance held the SGI WAY 2030 proclamation ceremony in February. [SEOUL GUARANTEE INSURANCE]
Seoul Guarantee Insurance (SGI) is moving forward as the No. 1 comprehensive guarantee service provider in Korea.
The balance of guarantees at the end of 2022 stood at 452 trillion won ($356 billion), maintaining robust annual growth, while its net profit during the term is about 560 billion won, an increase of over 20 percent compared to last year.
The total return on assets recorded 5.8 percent last year from 3.8 percent in 2020 and 4.8 percent in 2021, which is more than five times the average of domestic non-life insurance companies.
SGI has the best profitability as well as excellent financial soundness including the solvency margin and earned-incurred loss ratio. It was rated A+ by Standard & Poor, a global credit rating agency, achieving international credibility as Fitch Ratings affirmed AA- rating as well.
SGI is also entering the global market following the establishment of a new branch in Hanoi, Vietnam, in 2014, which is the first foreign non-life insurance company ever. It opened its Jakarta representative office in Indonesia in May 2022, while in October, a subsidiary, SGI MENA (Middle East and North Africa), was opened to strengthen reinsurance capabilities in its area.
SGI also exports the Korean guarantee insurance to Mongolia and Cambodia via Agcia (Asia Guarantee & Credit Insurance Association), Asia’s first bloc community operating guarantee insurance established in April 2020. Currently, 16 guarantee insurance businesses including insurers and credit rating agencies from 10 Asian countries have joined the Agcia, which is chaired by the SGI.
SGI is accelerating toward a platform-oriented digital switchover with growing direct guarantees through new platform business channels while expanding guarantee products with new data businesses by leveraging data of business transactional guarantees between economic units over 54 years.
In particular, SGI is developing new businesses and diversifying its investment strategies by fortifying partnership management with various industries including equity investment in Internet-only bank, KakaoBank, and forming a joint venture of a non-finance credit bureau with Korea’s top three telecom carriers — SKT, KT, LGU+.
SGI held a proclamation ceremony to mark its 54th anniversary and unveiled a new management strategy — SGI WAY 2030 — in February.
SGI WAY 2030 contains the company’s future direction of becoming a digital-based global platform company, by systematizing its global, digital and partnership management strategy by 2030.
"We plan to create a super gap in the existing market based on our achievements so far via SGI WAY 2030, while diversifying our portfolio based on developing inroads into new markets and new businesses,” CEO of SGI, Yoo Kwang-yeol said.
BY PARK YE-EUN [park.yeeun@joongang.co.kr]
with the Korea JoongAng Daily
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