Samsung Fire & Marine to become Samsung Life subsidiary

Samsung Life Insurance intends to make Samsung Fire & Marine Insurance one of its subsidiaries. Samsung Life is currently Samsung Fire & Marine's largest shareholder, with a 14.98% stake.

The life insurer has reportedly submitted its proposal to two financial regulators.

Analysts suggest that if Samsung Fire & Marine Insurance reduces its share buyback ratio to 5%, Samsung Life's stake in the South Korean non-life insurer would consequently rise to 16.93%.

Under current regulations, however, an insurer cannot hold more than 15% in another company unless it obtains approval from the relevant authorities to incorporate it as a subsidiary. This means that Samsung Life must either integrate Samsung Fire as a subsidiary or sell its excess shares.