Samsung Life Insurance has announced that it continues to face deficits in its dividend insurance contracts, commonly referred to as 'rebated insurance.' The company indicated that due to the ongoing negative returns from these contracts, it is unlikely that they will be able to dividend funds for policyholders even if they proceed with the planned sale of shares in Samsung Electronics and Samsung Fire & Marine Insurance. This situation was made clear in the business report released by Samsung Life, which also addressed the prior controversies surrounding their accounting practices and the distribution of dividends to policyholders.

As of the end of last year, Samsung Life held 1.48 million dividend insurance contracts. Historically, the insurer has paid out approximately 3.9 trillion Korean Won to policyholders over 31 separate occasions since 1986, the last payment being around 14.5 billion Won in 2022. However, the company highlighted that it had used over 11.3 trillion Won from its surplus profits to cover the losses incurred from these dividend contracts, making the financial outlook for the future increasingly pessimistic. They projected a continuation of significant losses, attributing the situation to their asset management returns of 4%, which fall short of the average 7% interest paid on fixed-rate dividend contracts.

In light of recent changes in accounting regulations and the clarification of their handling of 'discrepancy accounting,' Samsung Life has acknowledged that even during their sale of Samsung Electronics shares, which generated roughly 2.33 billion Won, they did not see an improvement in dividend resources for policyholders. This ongoing deficit highlights the challenges faced by the company within the broader context of financial regulations and the profitability of its insurance products, as they adjust to the new regulatory environment.