Samsung Life Insurance experienced a surge in its shares following robust quarterly earnings, igniting optimism among investors for enhanced shareholder returns.
On Wednesday afternoon, the South Korean insurer’s shares climbed as much as 7.8% to 88,100 won, surpassing the Kospi index’s marginal 0.3% decline.
The company’s fourth-quarter net profit of KRW446 billion ($334.3 million), announced on Tuesday, exceeded the KRW368 billion consensus estimate compiled by FnGuide.
Buoyed by the positive earnings report, market analysts anticipate that Samsung Life Insurance may amplify its dividend payouts and engage in additional share buybacks.
Jung Jun-sup, an analyst at NH Investment & Securities, raised the stock’s target price by 14% to KRW99,000, citing expectations of improved shareholder returns.
In a research note on Wednesday, the NH analyst predicted that Samsung Life’s dividend could escalate to KRW4,000 per share this year, up from KRW3,700 in 2023.
Similarly, DB Financial Investment analyst Byunggun Lee adjusted the target for the company upward by 6.5% to KRW99,000, anticipating a dividend increase to KRW4,400 per share in the current year.
Highlighting Samsung Life’s potential for both share buybacks and sustained growth in cash dividend payments, the DB analyst suggested that it might be the sole local insurer positioned to undertake such actions in the near term.
