Shinan Financial Plus: Boost in Revenue Driven by Parent Company Contribution

Shinan Financial Plus, a subsidiary of Shinan Life's GA (General Agency), has significantly increased its revenue by expanding life insurance commission income.

Shinan Financial Plus, a subsidiary of Shinan Life's GA (General Agency), has significantly increased its revenue by expanding life insurance commission income. Despite taking on increased deficits, the company has grown sales volume by leveraging its parent company's product line. This strategy highlights the importance of Shinan Financial Plus's role as a subsidiary GA.

Shinan Financial Plus recorded sales of 127.3 billion KRW and a net loss of 3 billion KRW in the first half of 2024. Although the deficit increased by 2.3 billion KRW from the previous year, sales surged by 23.2%. Since launching its GA business in July 2020, the company has continued to grow, showing another round of external growth this year.

One of the primary challenges leading to profit loss has been the rising cost of sales commissions due to intense market competition. Shinan Financial Plus’s cost of sales ratio increased from 88.8% in the first half of 2023 to 92.6% in 2024. However, this cost burden was offset by a 10.2% increase in new contracts, totaling over 176,000.

The company's commissions grew by 43.7%, with life insurance commissions surging by 134.9%, surpassing general insurance. This success is largely attributed to Shinan Life’s strong product sales strategy, notably in high-return life insurance plans, which allowed Shinan Financial Plus to emerge as a key sales channel.

Unlike many GA subsidiaries, which are heavily reliant on their parent company, Shinan Financial Plus maintains a relatively low dependency on Shinan Life (22%), showing potential for independent growth. Additionally, the company has been expanding its sales team through initiatives such as the "Dream Plus" project, aimed at recruiting more advisors to support its growing sales network.

Shinan Financial Plus’s continued growth in sales, despite operating deficits, demonstrates the company's strategic focus on expanding its sales force and leveraging its parent company’s offerings. As the company continues to diversify its product portfolio and commission sources, further growth can be expected, positioning the company as a dynamic player in the insurance market.