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Samsung Life files to incorporate Samsung Fire as subsidiary

Published: 13 Feb. 2025, 19:12

SHIN HA-NEE
[email protected]

The Samsung Fire & Marine Insurance logo is shown at the company's headquarters office in Seocho District, southern Seoul. [SAMSUNG FIRE & MARINE INSURANCE]

Samsung Life Insurance filed for regulatory approval from the Financial Services Commission to incorporate Samsung Fire & Marine Insurance as its subsidiary, the insurer said Thursday.

The move follows Samsung Fire & Marine Insurance’s shareholder value enhancement plan announcement on Jan. 31, under which the company aims to reduce its treasury stock holdings from their current 15.93 percent to less than 5 percent by 2028.

If Samsung Fire & Marine Insurance retires its treasury shares, the current 14.98 percent stake that Samsung Life Insurance — the firm’s largest shareholder — holds in the fire insurance company would increase to more than 15 percent.

The current law forbids an insurer from owning more than 15 percent of another company unless it is legally incorporated as a subsidiary.

“Even if Samsung Fire & Marine Insurance becomes a subsidiary of Samsung Life Insurance, there will be no particular change in its business operations or governance structure,” said Samsung Fire & Marine Insurance Chief Finance Officer Koo Young-min on Wednesday during a conference call following the firm’s earnings report.

BY SHIN HA-NEE [[email protected]]