– Initiates full-fledged procedures for successful IPO this year
SEOUL, South Korea, March 13, 2023 /PRNewswire/ — Seoul Guarantee Insurance Company (SGIC) decided on a dividend payout ratio to net profit for last fiscal year on March 13th (Mon). SGIC approved the 56th financial statement and business report at the Board of Directors meeting held at its headquaters in Jongno-gu, Seoul. At the meeting, the dividend ratio was set at 50.2% which is the highest level in the industry.
SGIC has been paying dividends for 12 consecutive years since 2012, with an average shareholder return rate (payout ratio) of 54% over the past decade, exceeding the average of 23% for listed non-life insurers. With its best performance of last year, SGIC will pay 282.6 billion won as dividends this year. In addition, SGIC will review and announce active shareholder return policies including presenting dividend propensity targets and changing the dividend base date.
SGIC, which started as the first dedicated guarantee insurance company in Korea in 1969, is the largest general guarantee institution in Korea with an annual guarantee of 323 trillion won (US＄255 billion). Over the past 54 years, it has introduced various guarantee products including various performance guarantees, installment sales guarantee insurance, and mobile communication credit insurance.
At the end of 2022, the balance of guarantees stood approximately 452 trillion won (US＄356 billion), maintaining a high annual growth rate, and net profit for the current period is KRW 564 billion(US＄442 million), an increase of more than 20% compared to the previous year. The return on assets (ROA) recorded 5.8% last year from 3.8% in 2020 and 4.8% in 2021, which is more than five times the average of domestic non-life insurance companies (ROA of about 1.1%, as of the third quarter of 2022).
SGIC not only boasts the highest profitability, but also has excellent financial soundness such as solvency margin ratio and earned loss ratio. It has obtained an A+ rating from S&P, and an AA- rating from Fitch, securing international recognition.
SGIC is preparing for an initial public offering(IPO) in domestic stock market this year. Although the internal and external environment is challenging, considering the dominant position, risk management and underwriting know-how, and active dividend payout ratio that have been established for over 50 years in the domestic guarantee insurance market, it is considered one of the best IPO stocks in Korea in 2023.
Starting with overseas business briefings in Hong Kong and Singapore in this week, SGIC is to directly convey its competitiveness and investment highlights to institutional investors, drawing much interest from related industries.