Samsung Life Looks Undervalued; Higher Interest Rates May Relieve Some of Its Burden

We maintain our fair value estimate of KRW 75,000 for Samsung Life Insurance as we roll our model forward by a year following fourth-quarter results. Our fair value estimate is equivalent to 0.29 times year-end embedded value of KRW 45.8 trillion (up 5% from KRW 43.6 trillion at end-2020), a multiple we see as fair given our expectation of an average return on embedded value, or RoEV, of 3.0% over the next five years. It represents 21% upside from Tuesday’s closing price.