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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] The likelihood of Samsung Life Insurance incorporating Samsung Fire & Marine Insurance as a subsidiary has increased. Samsung is expected to clarify its position on this potential move during its quarterly earnings conference (IR) on April 20.
According to financial authorities and Samsung Life Insurance on Tuesday, following Samsung Fire & Marine's announcement of its "Value-Up" plan to enhance corporate value, the company is now reviewing detailed plans for incorporating Samsung Fire & Marine as a subsidiary.
Samsung Life stated, "We are examining various aspects of Samsung Fire & Marine's Value-Up plan at a high level," adding, "We have not yet engaged in specific discussions with the authorities, but we expect to share related details at the upcoming annual earnings announcement later this month."
Earlier, on March 31, Samsung Fire & Marine revealed that its Value-Up plan includes a proposal to reduce its treasury stock from the current 15.93% to under 5% by 2028 through a large-scale stock buyback and cancellation initiative.
Samsung Life is the largest shareholder of Samsung Fire & Marine (holding 14.98%), and if the insurer proceeds with the buyback and stock cancellation, Samsung Life's shareholding will naturally increase. The market speculates that if Samsung Fire & Marine's treasury stock is reduced to 5%, Samsung Life's stake would rise to 16.93%, potentially triggering significant consequences.
Under current insurance laws, Samsung Life would face regulatory issues if its stake in Samsung Fire & Marine exceeds the 15% limit, as insurance companies are restricted from holding more than 15% of another company's stock. However, if Samsung Life's stake surpasses 15%, the company would be required to either acquire Samsung Fire & Marine as a subsidiary or sell off the excess shares.
Currently, Samsung Life has consolidated subsidiaries in other sectors, such as credit cards, securities, and asset management, but Samsung Fire & Marine remains an independent entity.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
