AM Best Affirms Credit Ratings of Samsung Fire & Marine Insurance Co., Ltd., and Its Subsidiaries

HONG KONG--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” (Superior) of Samsung Fire & Marine Insurance Co., Ltd. (SFM) (South Korea) and its subsidiaries, Samsung Fire & Marine Insurance Company of Europe Limited (United Kingdom), Samsung Vina Insurance Co., Ltd. (Vietnam) and Samsung Reinsurance Pte. Ltd. (SRE) (Singapore). Concurrently, AM Best has affirmed the FSR of A- (Excellent), the Long-Term ICR of “a-” (Excellent), and the Indonesia National Scale Rating (NSR) of aaa.ID (Exceptional) of PT Asuransi Samsung Tugu (AST) (Indonesia). The outlook of these Credit Ratings (ratings) is stable.

The ratings of SFM reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).

SFM’s risk-adjusted capitalisation is expected to remain comfortably at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by its robust absolute capital and effective capital management. The company maintains the highest regulatory solvency ratio among its non-life peers in South Korea, and plans to use excess capital for growth opportunities and shareholder returns in future years. While SFM’s capital is exposed to certain volatility resulting from the changes in the market value of its affiliated stock holdings, its risk-adjusted capitalisation is resilient to various capital market stress scenarios. Additionally, SFM’s balance sheet strength is supported by its debt-free position and conservative investment strategy.

SFM has a long-term track record of strong operating performance, which is supported by a highly stable underwriting performance with a relatively low combined ratio, when compared with its domestic peers. Additionally, the company has robust investment profits. Despite pressure on the profitability of the long-term insurance segment in the market, SFM is expected to continue demonstrating a positive distinction from its market peers, underpinned by its favourable loss ratio and stable capability to generate a new business contractual service margin. Prospectively, AM Best expects that SFM’s bottom line will benefit from increased contributions from Canopius Group Limited (Canopius) following the expansion of its ownership stake to 40.03% from 18.86% in 2025.

SFM is the market leader in South Korea’s non-life sector with an approximately 22% market share in terms of gross insurance service revenue in 2025, and has superior branding power being a part of the wider Samsung Group. The company has strong control over its distribution of long-term insurance through a large network of tied agents, and is capable of flexibly adjusting its channel strategy to balance growth and profitability. Furthermore, SFM’s affiliation with the Samsung Group enables it to provide group-related business in South Korea and overseas, which serves as a good source of profits in its general insurance line with favourable loss ratios. SFM’s global expansion has been accelerated with additional investment in Canopius in 2025, and its efforts to broaden its presence across the reinsurance market in Asia-Pacific region through SRE.

With a sophisticated risk management culture and framework that are entrenched in the organisation, AM Best views SFM’s ERM capabilities as superior to those of its domestic and international peers with similar risk profiles.

The ratings of AST reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate ERM. The ratings also recognise the wide range of support provided by AST’s parent, SFM.

AST’s risk-adjusted capitalisation is assessed at the strongest level, as measured by BCAR. AST plans to grow its capital organically through full profit retention to prepare for Indonesia’s regulatory capital requirement by 2028. AST’s moderately high credit risk derived from sizeable exposures to domestic (re)insurers is mitigated partially by affiliated and international reinsurance partners of high credit quality.

AST’s strong operating performance is mainly supported by a large amount of reinsurance commission income, low acquisition costs from the direct distribution channel, and a stable stream of investment income. Despite deterioration in underwriting performance in 2025, mainly due to couple of large claim losses, AM Best expects that AST’s corrective measures, including tightened underwriting discipline and rate adjustments, will support its underwriting results for the medium term.

AM Best expects that the Korea Interests Abroad and Samsung group risks will remain as the main underwriting focus of AST over the medium term, while it plans to gradually increase its local inward business to support SFM’s expansion strategy for global inward business. AST is highly integrated into its parent, receiving support in various areas such as key personnel, underwriting, marketing, risk management and reinsurance.

Negative rating actions could occur for SFM if there is a significant deterioration in its balance sheet strength fundamentals. Negative rating actions also could arise if there is a continuous deteriorating trend in SFM’s operating performance to a level that no longer supports its current strong assessment level. While AM Best believes it to be unlikely, positive rating actions could occur if SFM’s operating performance demonstrates exceptionally strong and consistent results.

Negative rating actions could arise if there is a sustained deterioration in AST’s operating performance from business execution. Negative rating actions could also occur if support from SFM is reduced to an extent that it no longer supports the current level of enhancement. Although unlikely in the short term, positive rating actions could arise if there is a notable and sustained expansion of its market presence leading to an improved business profile.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.