SGIC (Seoul Guarantee Insurance Company), confirms industry’s highest dividend payout ratio of 50.2%, Business News
– 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