Q2 2026 Samsung Life Insurance Co Ltd Earnings Call

August 13, 2026

Speaker #1: Good morning and good evening. Thank you all for joining the conference call for the Samsung Life earnings results. This conference will start with a presentation, followed by a Q&A session.

Sun Kim: Good morning and good evening. Thank you all for joining the conference call for the Samsung Life earnings results. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star and 1 on your phone during the Q&A. Now we will begin the presentation on Samsung Life's H1 of fiscal year 2026 earnings results. Good afternoon, everyone. This is Sun Kim, Investor Relations Part Leader. Thank you for joining us today for Samsung Life's 2026 H1 earnings presentation. Today's call is scheduled for 1 hour, starting with the earnings presentation delivered by our CFO, Wan-Sam Lee, and followed by your questions, which will be addressed by the members of our management team present here today.

Speaker #1: If you have a question, please press star and one on your phone during the Q&A. Now, we will begin the presentation on Samsung Life's first half of fiscal year 2026 earnings results.

Speaker #1: Good afternoon, everyone. This is Sun-jun Kim, Investor Relations Part Leader. Thank you for joining us today for Samsung Life's Q2 2026 earnings presentation. Today's call is scheduled for one hour, starting with the earnings presentation delivered by our CFO, Mr. Wan-sam Lee, and followed by your questions, which will be addressed by the members of our management team present here today.

Speaker #1: Please note that the figures in this presentation may be revised during the auditing process, and any forward-looking statements, including the earnings outlook contained in today's conference call, are subject to change depending on both domestic and overseas market conditions and the operating environment.

Wan-Sam Lee: Please note that the figures in this presentation may be revised during the auditing process, and any forward-looking statements, including the earnings outlook contained in today's conference call, are subject to change depending on both the domestic and overseas market conditions and operating environment. Let me now hand over the presentation to our CFO, Wan-Sam Lee. Good afternoon, everyone. This is the CFO, Wan-Sam Lee. I would like to sincerely thank our investors and analysts for taking the time out of your busy schedules to attend our H1 2026 earnings presentation call. Let me start with our key financial results and major business topics for the H1 of 2026. Our consolidated net profit for the H1 grew by 35.8% year-on-year to reach KRW 1.9 trillion, demonstrating our solid earnings capacity. Insurance service results declined by 35.9% year-on-year due to higher operating variance despite stable CSM profits.

Sun Kim: Please note that the figures in this presentation may be revised during the auditing process, and any forward-looking statements, including the earnings outlook contained in today's conference call, are subject to change depending on both the domestic and overseas market conditions and operating environment. Let me now hand over the presentation to our CFO, Wan-Sam Lee.

Speaker #1: Let me now hand over the presentation to our CFO, Mr. Wan-sam Lee. Good afternoon, everyone. This is the CFO, Wan-sam Lee. I would like to sincerely thank our investors and analysts for taking time out of your busy schedules to attend our first-half 2026 earnings presentation call.

Wan-Sam Lee: Good afternoon, everyone. This is the CFO, Wan-Sam Lee. I would like to sincerely thank our investors and analysts for taking the time out of your busy schedules to attend our H1 2026 earnings presentation call. Let me start with our key financial results and major business topics for the H1 of 2026. Our consolidated net profit for the H1 grew by 35.8% year-on-year to reach KRW 1.9 trillion, demonstrating our solid earnings capacity. Insurance service results declined by 35.9% year-on-year due to higher operating variance despite stable CSM profits.

Speaker #1: Let me start with our key financial results and major business topics for the first half of 2026. Our consolidated net profit for the first half grew by 35.8% year on year, reaching 1.9 trillion won, demonstrating our solid earnings capacity.

Speaker #1: Insurance service results declined by 35.9% year-on-year, due to higher operating variance, despite stable CSM profits. On the operating expense side, we recognize a one-off expense of ₩83 billion in the first half, mainly due to higher wages, including a temporary increase in retirement benefit provisions, following the outcome of the Samsung Electronics TI lawsuit.

Sun Kim: On the operating expense side, we recognized a one-off expense of KRW 83 billion in the H1, mainly due to higher wages, including a temporary increase in retirement benefit provisions following the outcome of Samsung Electronics Texas Instruments lawsuit. On the claims payment side, the negative operating variance widened from a year ago due to increase in medical service usage. Given these one-off factors, it seems inevitable to achieve growth for the annual insurance profit on a year-on-year basis. Nonetheless, we will make every effort to secure at least KRW 3 trillion in new business CSM each year, driven by our strong portfolio and sales capabilities across our exclusive and non-exclusive channels. In addition, we will improve our efficiency metrics, such as our loss ratio and expense ratio, with the aim of turning around our insurance profit to show growth going forward.

Wan-Sam Lee: On the operating expense side, we recognized a one-off expense of KRW 83 billion in the H1, mainly due to higher wages, including a temporary increase in retirement benefit provisions following the outcome of Samsung Electronics Texas Instruments lawsuit. On the claims payment side, the negative operating variance widened from a year ago due to increase in medical service usage. Given these one-off factors, it seems inevitable to achieve growth for the annual insurance profit on a year-on-year basis. Nonetheless, we will make every effort to secure at least KRW 3 trillion in new business CSM each year, driven by our strong portfolio and sales capabilities across our exclusive and non-exclusive channels. In addition, we will improve our efficiency metrics, such as our loss ratio and expense ratio, with the aim of turning around our insurance profit to show growth going forward.

Speaker #1: On the claims payment side, the negative operating variance widened from a year ago due to increased medical service usage. Given these one-off factors, it seems inevitable that achieving growth in annual insurance profit on a year-on-year basis will be difficult.

Speaker #1: Nonetheless, we will make every effort to secure at least ₩3 trillion in new business CSM each year, driven by our strong portfolio and sales capabilities across our exclusive and non-exclusive channels.

Speaker #1: In addition, we will improve our efficiency metrics, such as our loss ratio and expense ratio, with the aim of turning around our insurance profit to show growth going forward.

Speaker #1: We have seen our first-year loss ratio improve compared to the beginning of this year, thanks to our newly established framework to rigorously manage our first-year loss ratio by improving our product structure and implementing stricter underwriting standards.

Sun Kim: We have seen our first-year loss ratio improve compared to the beginning of this year, thanks to our newly established framework to rigorously manage our first-year loss ratio by improving our product structure and stricter underwriting standards. We will further strengthen our efforts so that these initiatives translate into an improvement in the overall loss ratio. Investment profit surged from a year ago, supported by higher dividend income and stronger consolidated and equity method earnings from subsidiaries such as Samsung Securities and Samsung Asset Management. Notably, while still modest in absolute terms, earnings contribution from the Thailand and China business have grown at an accelerating pace of growth. That said, amid heightened volatility in financial markets, including interest rates and equity prices, hedging losses on variable insurance within investment income experienced a slight increase.

Wan-Sam Lee: We have seen our first-year loss ratio improve compared to the beginning of this year, thanks to our newly established framework to rigorously manage our first-year loss ratio by improving our product structure and stricter underwriting standards. We will further strengthen our efforts so that these initiatives translate into an improvement in the overall loss ratio. Investment profit surged from a year ago, supported by higher dividend income and stronger consolidated and equity method earnings from subsidiaries such as Samsung Securities and Samsung Asset Management. Notably, while still modest in absolute terms, earnings contribution from the Thailand and China business have grown at an accelerating pace of growth. That said, amid heightened volatility in financial markets, including interest rates and equity prices, hedging losses on variable insurance within investment income experienced a slight increase.

Speaker #1: We will further strengthen our efforts so that these initiatives translate into an improvement in the overall loss ratio. Investment profit surged from a year ago, supported by higher dividend income and stronger consolidated and equity-method earnings from subsidiaries such as Samsung Securities and Samsung Asset Management.

Speaker #1: Notably, while still modest in absolute terms, earnings contribution from the Thailand and China business have grown at an accelerating pace of growth. That said, amid heightened volatility in financial markets, including interest rates and equity prices, hedging losses on variable insurance within investment income experienced a slight increase.

Speaker #1: We run a hedging program to effectively manage our capital and earnings volatility associated with the minimum guarantee options embedded in our variable insurance products.

Sun Kim: We run a hedging program to effectively manage our capital and earnings volatility associated with the minimum guarantee options embedded in our variable insurance products. Going forward, we are operating an internal task force, testing out different strategies for different market conditions to achieve the optimal strategy in periods of extreme market volatility, such as this year. New business CSM recorded KRW 1.7 trillion in H1, growing by 20% year-on-year. We are well on track to achieve our annual target of KRW 3.2 trillion. Taking profitability and market conditions into account, we plan to continuously secure stable new business CSM by implementing a flexible portfolio strategy between the highly profitable health insurance and the whole life insurance solely available to life insurers. For our CSM balance, we reflected key assumption changes in Q2 in accordance with the Financial Supervisory Service's guidelines.

Wan-Sam Lee: We run a hedging program to effectively manage our capital and earnings volatility associated with the minimum guarantee options embedded in our variable insurance products. Going forward, we are operating an internal task force, testing out different strategies for different market conditions to achieve the optimal strategy in periods of extreme market volatility, such as this year. New business CSM recorded KRW 1.7 trillion in H1, growing by 20% year-on-year. We are well on track to achieve our annual target of KRW 3.2 trillion. Taking profitability and market conditions into account, we plan to continuously secure stable new business CSM by implementing a flexible portfolio strategy between the highly profitable health insurance and the whole life insurance solely available to life insurers. For our CSM balance, we reflected key assumption changes in Q2 in accordance with the Financial Supervisory Service's guidelines.

Speaker #1: Going forward, we are operating an internal task force, testing out different strategies for different market conditions to achieve the optimal strategy in periods of extreme market volatility, such as this year.

Speaker #1: New business CSM recorded 1.7 trillion won in the first half, growing by 20% year on year. We are well on track to achieve our annual target of 3.2 trillion won.

Speaker #1: Taking profitability and market conditions into account, we plan to continuously secure stable new business CSM by implementing a flexible portfolio strategy between the highly profitable health insurance and the whole life insurance, solely available to life insurers, for our CSM balance.

Speaker #1: We reflected key assumption changes in the second quarter, in accordance with the Financial Supervisory Authority's guidelines. These changes include applying conservative loss ratio assumptions to new riders, implementing a more defined segmentation of riders, and adjusting expense ratio assumptions to reflect inflation and changes in cost drivers.

Sun Kim: These changes include applying conservative loss ratio assumptions to new riders, a more defined segmentation of riders, and adjusting expense ratios assumptions to reflect inflation and changes in cost drivers. As a result, there was a one-off CSM adjustment. We expect additional guidelines changes in Q4 as well, but expect the impact to be limited as most of the guidelines have been reflected as of June end. Based on this, we will pursue sustainable growth of improving our CSM balance going forward. Amid a tightening regulatory environment, such as the full implementation of the GA 1,200% commission rule and the cap on total sales commissions, the environment for the insurance industry has shifted to prioritize profitability and sustainability over top-line growth. We anticipate these regulatory changes will foster healthy change in the midterm by promoting qualitative growth across sales channels and through a more rationalized expense structure.

Wan-Sam Lee: These changes include applying conservative loss ratio assumptions to new riders, a more defined segmentation of riders, and adjusting expense ratios assumptions to reflect inflation and changes in cost drivers. As a result, there was a one-off CSM adjustment. We expect additional guidelines changes in Q4 as well, but expect the impact to be limited as most of the guidelines have been reflected as of June end. Based on this, we will pursue sustainable growth of improving our CSM balance going forward. Amid a tightening regulatory environment, such as the full implementation of the GA 1,200% commission rule and the cap on total sales commissions, the environment for the insurance industry has shifted to prioritize profitability and sustainability over top-line growth. We anticipate these regulatory changes will foster healthy change in the midterm by promoting qualitative growth across sales channels and through a more rationalized expense structure.

Speaker #1: As a result, there was a one-off CSM adjustment. We expect additional guideline changes in the fourth quarter as well, but expect the impact to be limited, as most of the guidelines have been reflected as of the end of June.

Speaker #1: Based on this, we will pursue sustainable growth by improving our CSM balance going forward. Amid a tightening regulatory environment, such as the full implementation of the GA 1200% commission rule and the cap on total sales commissions, the environment for the insurance industry has shifted to prioritize profitability and sustainability over top-line growth.

Speaker #1: We anticipate these regulatory changes will foster healthy growth in the mid-term by promoting qualitative growth across sales channels and through a more rationalized expense structure.

Speaker #1: Accordingly, we plan to reinforce our efficiency-focused sales strategy by further strengthening the competitiveness of our exclusive channel and through the qualitative growth of our GA channel.

Sun Kim: Accordingly, we plan to reinforce our efficiency-focused sales strategy by further strengthening the competitiveness of our exclusive channel and through qualitative growth of our GA channel. Our exclusive channel has continued to grow steadily with a net increase of approximately 2,100 agents year to date. Our exclusive agents are educated through systematic training programs and generating new business performance based on the highest retention rates in the industry. We will further differentiate the competitiveness of our agents by providing comprehensive support across the overall sales process, including AI-based sales tools and product educations. For the GA channel, we continue to strengthen our portfolio around high-margin whole life and general health products while enhancing AI-enabled sales support systems and expanding partnerships with large GA firms.

Wan-Sam Lee: Accordingly, we plan to reinforce our efficiency-focused sales strategy by further strengthening the competitiveness of our exclusive channel and through qualitative growth of our GA channel. Our exclusive channel has continued to grow steadily with a net increase of approximately 2,100 agents year to date. Our exclusive agents are educated through systematic training programs and generating new business performance based on the highest retention rates in the industry. We will further differentiate the competitiveness of our agents by providing comprehensive support across the overall sales process, including AI-based sales tools and product educations. For the GA channel, we continue to strengthen our portfolio around high-margin whole life and general health products while enhancing AI-enabled sales support systems and expanding partnerships with large GA firms.

Speaker #1: Our exclusive channel has continued to grow steadily, with a net increase of approximately 2,100 agents year to date. Our exclusive agents are educated through systematic training programs and are generating new business performance based on the highest retention rates in the industry.

Speaker #1: We will further differentiate the competitiveness of our agents by providing comprehensive support across the overall sales process, including AI-based sales tools and product education.

Speaker #1: For the GA channel, we continue to strengthen our portfolio around high-margin whole life and general health products, while enhancing AI-enabled sales support systems and expanding partnerships with large GA firms.

Speaker #1: In particular, under a healthier market environment following the introduction of the GA 1,200% commission rule, we will continue to expand our market presence by strengthening our sales infrastructure, including broader support through AI tools.

Sun Kim: In particular, under a healthier market environment following the introduction of the GA 1,200% commission rule, we will continue to expand our market presence by strengthening sales infrastructure, including broader support through AI tools. Next, turning to the capital adequacy, our KICS ratio as of June recorded 208%, while Tier 1 capital KICS ratio remains stable at 177%. Going forward, we will continue to maintain industry-leading capital adequacy by securing high-quality new business CSM, improving operating efficiency, and rigorous ALM management centered on Tier 1 capital KICS ratio. In Q2 2026, the surrender value reserve amounted to KRW 3.1 trillion, up by KRW 1.4 trillion from KRW 1.7 trillion at the end of Q1. Approximately KRW 0.5 trillion of surrender value reserve is generated on a recurring quarterly basis due to new business sales.

Wan-Sam Lee: In particular, under a healthier market environment following the introduction of the GA 1,200% commission rule, we will continue to expand our market presence by strengthening sales infrastructure, including broader support through AI tools. Next, turning to the capital adequacy, our KICS ratio as of June recorded 208%, while Tier 1 capital KICS ratio remains stable at 177%. Going forward, we will continue to maintain industry-leading capital adequacy by securing high-quality new business CSM, improving operating efficiency, and rigorous ALM management centered on Tier 1 capital KICS ratio. In Q2 2026, the surrender value reserve amounted to KRW 3.1 trillion, up by KRW 1.4 trillion from KRW 1.7 trillion at the end of Q1. Approximately KRW 0.5 trillion of surrender value reserve is generated on a recurring quarterly basis due to new business sales.

Speaker #1: Next, turning to capital adequacy, our KICS ratio as of June recorded 208%, while the Tier 1 capital KICS ratio remains stable at 177%. Going forward, we will continue to maintain industry-leading capital adequacy by securing high-quality new business CSM, improving operating efficiency, and maintaining rigorous ALM management centered on the Tier 1 capital KICS ratio.

Speaker #1: In the second quarter of 2026, the surrender value reserve amounted to 3.1 trillion won, up by 1.4 trillion from 1.7 trillion won at the end of the first quarter.

Speaker #1: Approximately ₩0.5 trillion of surrender value reserve is generated on a recurring quarterly basis due to new business sales. In addition, increased market volatility resulted in an additional impact of approximately ₩0.9 trillion, due to the valuation difference between the reserves and liabilities of our variable products.

Sun Kim: In addition, increased market volatility resulted in an additional impact of approximately KRW 0.9 trillion due to the valuation difference between the reserves and liabilities of our variable products. However, this increase largely reflects temporary effects from heightened market volatility. If market conditions, including equity prices and interest rates, stabilize going forward, we expect the pace of increase in the surrender value reserve to gradually moderate. We also have sufficient distributable earnings, and therefore, the increase in the surrender value reserve is expected to have a limited impact on our shareholder return policy. Regarding the shareholder return, we plan to maintain a foreseeable dividend policy under the principle of increasing shareholder dividends at a rate above the growth rate of recurring profits.

Wan-Sam Lee: In addition, increased market volatility resulted in an additional impact of approximately KRW 0.9 trillion due to the valuation difference between the reserves and liabilities of our variable products. However, this increase largely reflects temporary effects from heightened market volatility. If market conditions, including equity prices and interest rates, stabilize going forward, we expect the pace of increase in the surrender value reserve to gradually moderate. We also have sufficient distributable earnings, and therefore, the increase in the surrender value reserve is expected to have a limited impact on our shareholder return policy. Regarding the shareholder return, we plan to maintain a foreseeable dividend policy under the principle of increasing shareholder dividends at a rate above the growth rate of recurring profits.

Speaker #1: However, this increase largely reflects temporary effects from heightened market volatility. If market conditions, including equity prices and interest rates, stabilize going forward, we expect the pace of increase in the surrender value reserve to gradually moderate.

Speaker #1: We also have sufficient distributable earnings, and therefore the increase in the surrender value reserve is expected to have a limited impact on our shareholder return policy.

Speaker #1: Regarding shareholder return, we plan to maintain a foreseeable dividend policy under the principle of increasing shareholder dividends at a rate above the growth rate of recurring profits.

Speaker #1: We will maintain a consistent shareholder return principle, unwavering from short-term earnings volatility, while strengthening market confidence as a dividend growth stock by improving the quality of earnings and enhancing capital efficiency.

Sun Kim: We will maintain a consistent shareholder return principle, unwavering from short-term earnings volatility, while strengthening market confidence as a dividend growth stock by improving the quality of earnings and enhancing capital efficiency. In addition, we will continue to explore ways to effectively utilize surplus capital, including expansion into new business. Additionally, we understand that our investors are very interested in the timing of our value-up program announcement. Taking into account measures such as treasury share cancellation plans, we are required to make the announcement before next year's annual general meeting of shareholders. We will do our best to make the announcement as early as possible. Despite domestic and overseas economic uncertainties, Samsung Life will continue to pursue sustainable growth based on industry-leading sales competitiveness, asset management capabilities, and solid capital foundation.

Wan-Sam Lee: We will maintain a consistent shareholder return principle, unwavering from short-term earnings volatility, while strengthening market confidence as a dividend growth stock by improving the quality of earnings and enhancing capital efficiency. In addition, we will continue to explore ways to effectively utilize surplus capital, including expansion into new business. Additionally, we understand that our investors are very interested in the timing of our value-up program announcement. Taking into account measures such as treasury share cancellation plans, we are required to make the announcement before next year's annual general meeting of shareholders. We will do our best to make the announcement as early as possible. Despite domestic and overseas economic uncertainties, Samsung Life will continue to pursue sustainable growth based on industry-leading sales competitiveness, asset management capabilities, and solid capital foundation.

Speaker #1: In addition, we will continue to explore ways to effectively utilize surplus capital, including expansion into new businesses. Additionally, we understand that our investors are very interested in the timing of our value-up program announcement.

Speaker #1: Taking into account measures such as Treasury share cancellation plans, we are required to make the announcement before next year's Annual General Meeting of Shareholders.

Speaker #1: We will do our best to make the announcement as early as possible. Despite domestic and overseas economic uncertainties, Samsung Life will continue to pursue sustainable growth based on industry-leading sales competitiveness, asset management capabilities, and a solid capital foundation.

Speaker #1: Going into the second half, we will focus on delivering tangible results toward our goals of securing more than 3.2 trillion won in new business CSM, achieving double-digit growth in annual earnings, and enhancing shareholder returns based on these results.

Sun Kim: Going into the H2, we will focus on delivering tangible results toward our goals of securing more than KRW 3.2 trillion in new business CSM, achieving double-digit growth in annual earnings, and enhancing shareholder returns based on these results. We will now move on to the Q&A session, and we will do our best to address your questions. Thank you.

Wan-Sam Lee: Going into the H2, we will focus on delivering tangible results toward our goals of securing more than KRW 3.2 trillion in new business CSM, achieving double-digit growth in annual earnings, and enhancing shareholder returns based on these results. We will now move on to the Q&A session, and we will do our best to address your questions. Thank you.

Speaker #1: We will now move on to the Q&A session, and we will do our best to address your questions. Thank you.

Speaker #2: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. Now the Q&A session will begin. Please press star 1—that is, star and 1—if you have any questions.

Operator: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다.

Sun Kim: Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.

[Translator]: Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.

Speaker #2: Questions will be taken in the order you have pressed star 1. For cancellation, please press star 2—that is, star and 2 on your phone.

Speaker #2: 처음으로 질문해 주실 분은 JP모건증권의 MW Kim Min입니다. The first question will be provided by MW Kim from JP Morgan Securities. Please go ahead with your question.

Operator: 처음으로 질문해 주실 분은 J.P. Morgan Securities의 MW Kim 님입니다.

Sun Kim: The first question will be provided by MW Kim from J.P. Morgan Securities. Please go ahead with your question.

[Translator]: The first question will be provided by MW Kim from J.P. Morgan Securities. Please go ahead with your question.

MW Kim: 안녕하십니까? 질문 기회 주셔서 감사드립니다. 두 가지를 질문을 드리고 싶습니다. 첫 번째는, 한국의 60세 이상의 베이비부머 세대가 가장 부유한 계층이라는 분석이 많습니다. 지난 한 10년 동안 이 부동산 가치의 상승과 또 지난 1년 정도 KOSPI 강세를 고려할 때, 이 부유층 은퇴자들의 자산이 많이 늘어났을 것으로 생각이 듭니다. 대상 시장이 향후 10년간 얼마나 확대될 것으로 보시는지 회사의 생각이 궁금합니다. 그리고 또 회사가 이 시장에서 미래 수익을 확보하기 위한 전략을 보유하고 있는지, 가능하시다면 정량적으로 전망도 부탁을 드립니다. 두 번째 질문은 리스크 관리에 대한 부분입니다. 현재 한국 신년물 국채금리가 4% 이상으로 상승된 상황에서 일반적으로 금리 상승은 헤지 증가와 유동성 관리 부담을 초래하는 것으로 알고 있습니다. 현재 그 헤지 추세, 그리고 헤지 스트레스 시나리오에 대한 회사의 관점, 그리고 유동성 관리 계획을 설명해 주시면 감사드리겠습니다.

Speaker #3: 예, 안녕하십니까. 질문 기회 주셔서 감사드립니다. 두 가지를 질문을 드리고 싶습니다. 첫 번째는 한국의 60세 이상의 베이비부머 세대가 가장 부유한 계층이라는 분석이 많습니다. 지난 한 10년 동안 부동산 가치의 상승과 그리고 또 지난 1년 정도 코스피 강세를 고려할 때 부유층, 은퇴자들의 자산이 많이 늘어났을 것으로 생각이 됩니다.

Speaker #3: 대상 시장이 향후 10년간 얼마나 확대될 것으로 보시는지 회사의 생각이 궁금합니다. 그리고 또 회사가 이 시장에서 미래 수익을 확보하기 위한 전략을 보유하고 있는지, 가능하시다면 정량적으로 전망도 부탁드립니다.

Speaker #3: 두 번째 질문은 리스크 관리에 대한 부분입니다. 현재 한국 10년물 국채 금리가 4% 이상으로 상승된 상황에서, 일반적으로 금리 상승은 헤지율 증가와 유동성 관리 부담을 초래하는 것으로 알고 있습니다.

Speaker #3: 현재 헤지율 추세, 그리고 헤지율 스트레스 시나리오에 대한 회사의 관점, 그리고 유동성 관리 계획을 설명해 주시면 감사드리겠습니다. 그리고 이미 말씀을 해 주시긴 했는데, 변액 준비금 비중과 주식시장 변동성이 재무제표에 미치는 영향이 적지도 않은 만큼, 이런 재무 변동성을 완화하기 위한 회사의 전략을 좀 더 구체적으로 공유해 주시면 감사드리겠습니다.

MW Kim: 그리고 이미 말씀을 좀 해주시긴 했는데, 이 변액 준비금 비중과 주식시장 변동성이 재무제표에 미치는 영향이 적지도 않은 만큼, 이런 재무 변동성을 완화하기 위한 회사의 전략을 좀 더 구체적으로 공유해 주시면 감사드리겠습니다. 이상입니다.

Speaker #3: 이상입니다.

Sophia Foel: Yes, thank you very much. I would like to ask two questions. First is about the high net worth individuals, the baby boomers who are approaching retirement age. Obviously, over the last decade or so, real estate property prices have continued to rise, and over the past year, the KOSPI has delivered very strong performance, and it is fair to say that the high net worth asset base is probably much bigger. So in terms of your addressable market, how much further upside do you see in terms of the addressable market over the next 10 years? What is your outlook in terms of further upside? I also wonder if the company has already established a future strategy on securing future earnings. If so, if you could provide more of a quantitative outlook, I would appreciate it as well. Second question is on risk management.

[Translator]: Yes, thank you very much. I would like to ask two questions. First is about the high net worth individuals, the baby boomers who are approaching retirement age. Obviously, over the last decade or so, real estate property prices have continued to rise, and over the past year, the KOSPI has delivered very strong performance, and it is fair to say that the high net worth asset base is probably much bigger. So in terms of your addressable market, how much further upside do you see in terms of the addressable market over the next 10 years? What is your outlook in terms of further upside? I also wonder if the company has already established a future strategy on securing future earnings. If so, if you could provide more of a quantitative outlook, I would appreciate it as well. Second question is on risk management.

Speaker #2: Yes, thank you very much. I would like to ask two questions. The first is about high net worth individuals, specifically the baby boomers who are approaching retirement age.

Speaker #2: Obviously, over the last decade or so, real estate property prices have continued to rise, and over the past year, the cost fee has delivered very strong performance.

Speaker #2: Which, and it is fair to say, that the High Net Worth asset-based segment is probably much bigger. So in terms of your addressable market, how much further upside do you see in terms of the addressable market over the next 10 years?

Speaker #2: What is your outlook in terms of further upside? And also, I wonder if the company has already established a future strategy for securing future earnings.

Speaker #2: If so, if you could provide more of a quantitative outlook, I would appreciate it as well. The second question is on risk management. The 10-year KTB is actually yielding above 4%. With rising interest rates, of course, this is associated with a higher risk of lapses.

Sophia Foel: The 10-year KTB is actually yielding at above 4%. With rising interest rates, of course, this is associated with higher risk of lapses. Also, added pressure in terms of liquidity management as well. So can you share the latest trends in terms of the lapse rates that you have been seeing, and what are your stress scenario assumptions? Also, please share your plans in terms of liquidity management. We have also seen a significant impact on your financials from the volatility from the equity market, also from the variable account reserves as well. So if you could also share some measures by the company to mitigate against that kind of financial impact or volatility, I would also appreciate it.

[Translator]: The 10-year KTB is actually yielding at above 4%. With rising interest rates, of course, this is associated with higher risk of lapses. Also, added pressure in terms of liquidity management as well. So can you share the latest trends in terms of the lapse rates that you have been seeing, and what are your stress scenario assumptions? Also, please share your plans in terms of liquidity management. We have also seen a significant impact on your financials from the volatility from the equity market, also from the variable account reserves as well. So if you could also share some measures by the company to mitigate against that kind of financial impact or volatility, I would also appreciate it.

Speaker #2: Also, there has been added pressure in terms of liquidity management as well. So, can you share the latest trends in terms of the lapse rates that you have been seeing, and what are your stress scenario assumptions?

Speaker #2: And also, please share your plans in terms of liquidity management. We have seen a significant impact on your financials from the volatility in the equity market, as well as from the variable account reserves.

Speaker #2: So, if you could also share some measures by the company to mitigate against that kind of financial impact or volatility, I would also appreciate it.

Speaker #3: 안녕하십니까, 삼성생명 채널마케팅팀장 허정무입니다.

Huh Jung-moo: 안녕하십니까, 삼성생명 채널 마케팅팀장 허정무입니다.

Speaker #2: Yes, this is Huh Jung-moo, Head of the Channel Marketing Team at Samsung Life.

Sophia Foel: Yes, this is Huh Jung-moo, Head of Channel Marketing Team at Samsung Life.

[Translator]: Yes, this is Huh Jung-moo, Head of Channel Marketing Team at Samsung Life.

Speaker #3: 예, 말씀하신 것처럼 한국의 부는 대부분 60세 이상이 소유하고 있고, 현재 저희가 파악하기로는 MI로는 부유층의 전체 부유층 고객 수는 한국 전체로 약 10억 이상의 부유층이 한 47만 명 정도 되고요.

Huh Jung-moo: 예, 말씀하신 것처럼 한국의 부는 대부분 60세 이상이 소유하고 있고, 현재 저희가 파악한 MI로는 전체 부유층 고객 수는 한국 전체로 약 10억 이상의 부유층이 한 47만 명 정도 되고요. 이 중에서 삼성생명에 보험을 가입하신 분은 약 5만 명 정도 추산하고 있습니다.

Speaker #3: 이 중에서 삼성생명의 보험을 가입하신 분은 약 5만 명 정도로 추산하고 있습니다.

Speaker #2: So yes, as you have said, there is a very high concentration of wealth, particularly among those age 60 and above. And for all of Korea, based on our market intelligence, we believe there are about 470,000 high net worth customers with assets above a certain level.

Sophia Foel: Yes, as you have said, there is a very high concentration of wealth, particularly among those age 60 and above. For all of Korea, based on our market intelligence, we believe there is about 470,000 individuals, high net worth customers with assets above a certain level. Of that pool, above 1 billion in financial assets. Of that pool, 50,000 actually are existing Samsung Life policyholders or our customers.

[Translator]: Yes, as you have said, there is a very high concentration of wealth, particularly among those age 60 and above. For all of Korea, based on our market intelligence, we believe there is about 470,000 individuals, high net worth customers with assets above a certain level. Of that pool, above 1 billion in financial assets. Of that pool, 50,000 actually are existing Samsung Life policyholders or our customers.

Speaker #2: Of that pool, above $1 billion in financial assets, 50,000 actually are existing Samsung Life policyholders or our customers.

Speaker #3: 예, 물론 금융자산 기준이고요. 좀 자세히 말씀드리면, 저희 삼성생명 같은 경우는 아시겠지만 보험회사 중에는 거의 유일하게 패밀리 오피스라는 조직을 통해 초고액 자산가에게 종신보험 외에 수익증권, 그리고 다양한 신탁 컨설팅을 하고 있고, 또한 8개 권역에 FP 센터를 통해 동일한 서비스를 제공하고 있습니다.

Huh Jung-moo: 물론 금융자산 기준이고요. 근데 삼성생명 같은 경우는 아시겠지만, 보험 회사 중에는 거의 유일하게 Family Office라는 조직을 통해서 초고액 자산가에게 종신보험 외에 수익 증권, 그리고 다양한 신탁 컨설팅을 하고 있고, 또한 8개 권역에 FP 센터를 통해서 동일한 서비스를 제공하고 있습니다.

Speaker #2: So again, this is based on financial assets only, by the way. And you will know that Samsung Life, among the insurance companies in Korea, has a very unique position in that we have a family office within our organization.

Sophia Foel: Again, this is based on financial assets only, by the way. You will know that Samsung Life, among the insurance companies in Korea, has a very unique position that we have a Family Office within our organization. Our Family Offices caters to the ultra-high net worth individuals, providing not only whole life or other insurance type products, but a diverse lineup of other services as well, including beneficiary certificate or funds, also trust consultation as well across our FP centers that are located in eight key geographies.

[Translator]: Again, this is based on financial assets only, by the way. You will know that Samsung Life, among the insurance companies in Korea, has a very unique position that we have a Family Office within our organization. Our Family Offices caters to the ultra-high net worth individuals, providing not only whole life or other insurance type products, but a diverse lineup of other services as well, including beneficiary certificate or funds, also trust consultation as well across our FP centers that are located in eight key geographies.

Speaker #2: So our family office is catered to ultra-high-net-worth individuals, providing not only whole life or other insurance-type products, but a diverse lineup of other services as well, including beneficiary certificates or funds.

Speaker #2: Also, trust consultation as well across our FP centers that are located in eight key geographies.

Speaker #3: 증권회사가 금융자산의 증식에 초점을 맞추고 있고, 은행은 금융자산의 유지에 초점을 맞춘다면, 보험회사, 특히 삼성생명은 금융자산의 이전에 초점을 맞추고 있습니다. 그래서 특히 종신보험을 통한 부의 이전에 더 초점을 맞추고 있습니다.

Huh Jung-moo: 증권 회사가 금융자산의 증식에 초점을 맞추고 있고, 그리고 은행사가 금융자산 유지에 초점을 맞춘다면, 보험회사, 특히 삼성생명은 금융자산 이전에 초점을 맞추고 있고요. 그래서 특히 종신보험을 통한 부의 이전에 초점을 더 맞추고 있습니다.

Speaker #2: So, obviously, for the security firms, their focus in terms of their business is financial asset appreciation to grow wealth. For the banks, it is to maintain that wealth.

Sophia Foel: Obviously for the security firms, their focus in terms of their business is financial asset appreciation to grow wealth. For the banks, it is to maintain that wealth. As an insurer, for us, actually, the transfer of that financial wealth or asset is very key. Through our whole life product mechanism, the transfer of wealth is our area of focus.

[Translator]: Obviously for the security firms, their focus in terms of their business is financial asset appreciation to grow wealth. For the banks, it is to maintain that wealth. As an insurer, for us, actually, the transfer of that financial wealth or asset is very key. Through our whole life product mechanism, the transfer of wealth is our area of focus.

Speaker #2: And as an insurer, for us, actually, the transfer of that financial wealth or assets is very key. So, through our whole life product mechanism, the transfer of wealth is our area of focus.

Speaker #3: 특히 최근에는 삼성생명이 보유한 고객, 특히 종신보험이나 건강 정기보험을 보유한 고객의 사망보험금의 총액이 약 60조 원 정도 되는데요. 이분들을 대상으로 사망보험금 청구권 신탁 가입을 이렇게 활성화하고 있습니다.

Huh Jung-moo: 특히 최근에는 삼성생명이 보유한 고객, 특히 종신보험이나 정기보험을 보유한 고객의 사망보험금의 총액이 한 60조 정도 되는데요. 이분들을 대상으로 사망보험금 청구권 신탁 가입을 활성화하고 있습니다. 사망보험금 청구권 신탁을 하시게 될 경우 안정적인 보험금을 수익자에게 지급이 가능해서 현재 삼성생명은 미래 신수종 사업 중에 하나로 신탁업을 확장하고 있습니다.

Speaker #3: 사망보험금 청구권 신탁을 하시게 될 경우, 안정적인 보험금을 수익자에게 지급이 가능해서, 현재 삼성생명은 미래 신수종 사업 중 하나로 신탁업을 확장하고 있습니다.

Sophia Foel: We obviously have a very extensive customer base of customers who hold either our whole life or other term insurance policies. The total amount of death claims paid out actually is quite extensive at around KRW 60 trillion, the payable amount. We are targeting those individuals to expand into the trust business. We have been promoting a service which is entrusting their death cover claims to trust. This actually provides for assurance in terms of the smooth transfer of the death benefits to the designated beneficiaries. This is a key part of our new business strategy to expand into the trust business.

Speaker #2: So, we obviously have a very extensive customer base of customers who hold either our whole life or other term insurance policies. The total amount of death claims paid out is actually quite extensive, at around ₩60 trillion.

[Translator]: We obviously have a very extensive customer base of customers who hold either our whole life or other term insurance policies. The total amount of death claims paid out actually is quite extensive at around KRW 60 trillion, the payable amount. We are targeting those individuals to expand into the trust business. We have been promoting a service which is entrusting their death cover claims to trust. This actually provides for assurance in terms of the smooth transfer of the death benefits to the designated beneficiaries. This is a key part of our new business strategy to expand into the trust business.

Speaker #2: The payable amount. So we are targeting those individuals to expand into the trust business. And we have been promoting a service which is entrusting their death cover claims to trusts.

Speaker #2: So this actually provides assurance in terms of the smooth transfer of death benefits to the designated beneficiaries. This is a key part of our new business strategy to expand into the trust business.

Speaker #3: 현재 삼성생명의 사망보험금 청구권 신탁 AUM은 약 8,000억이고, 올해 안에 1조를 돌파할 거고요. 국내 타 보험사 중 2위사는 약 1,000억 수준으로 격차를 확대하고 있습니다.

Huh Jung-moo: 현재 삼성생명의 사망보험금 청구권 신탁 AUM은 약 8천억이고, 올해 안에 1조 돌파할 거고요. 국내 타 보험사는 2위사가 1천억 정도 수준으로 격차를 확대하고 있습니다. WM 관련해서는 삼성생명이 되게 잘하고 있는데요. 추후에 필요하시면 애널리스트분들에게 더 많은 자료를 드리고 설명할 수 있는 기회를 만들도록 하겠습니다. 감사합니다.

Speaker #3: WM 관련해서는 삼성생명이 되게 잘하고 있는데요. 추후에 필요하시면 애널 분들에게 더 많은 자료를 드리고, 설명할 수 있는 기회를 만들도록 하겠습니다. 감사합니다.

Speaker #2: And so already, the AUM is now at around 800 billion won today. We expect to exceed the 1 trillion won mark within this year. The nearest competition, the second-ranked insurance company in Korea, is very far behind with AUM of just 100 billion won, showing a widened gap.

Sophia Foel: Already the AUM is now at around KRW 800 billion to date. We expect to exceed the KRW 1 trillion mark within this year. The nearest competition, the second ranked insurance company in Korea, is very far behind with AUM of just KRW 100 billion as we widen the gap. For WM, we are also doing quite well. If required, we will try to create another opportunity where we can share more materials and present to our analysts.

[Translator]: Already the AUM is now at around KRW 800 billion to date. We expect to exceed the KRW 1 trillion mark within this year. The nearest competition, the second ranked insurance company in Korea, is very far behind with AUM of just KRW 100 billion as we widen the gap. For WM, we are also doing quite well. If required, we will try to create another opportunity where we can share more materials and present to our analysts.

Speaker #2: For WM, we are also doing quite well. If required, we'll try to create another opportunity where we can share more materials and present to our analysts.

Speaker #3: 네, 셰프입니다. 조금 부연 설명드리겠습니다.

Huh Jung-moo: CFO입니다. 조금 부연 설명드리겠습니다.

Wan-Sam Lee: CFO입니다. 조금 부연 설명드리겠습니다.

Speaker #2: This is the CFO. Let me add just a little bit.

Sophia Foel: This is Sophia Foel. Let me add just a little bit.

[Translator]: This is Sophia Foel. Let me add just a little bit.

Speaker #3: 부유층이 증가하고 있는 것에 대한 저희는 명확하게 인식을 하고 있고, 부유층 확보 및 관리하기 위해서 갖춘 인프라는 제가 생각하기에는 이렇게 최고 수준입니다. 또한 강력한 존속체들의 자산 컨설팅 능력을 저희가 향상시키는 데 주력하고 있고, 종신보험 이외에 이분들의 니즈가 있는 일시나 보험을 적극적으로 판매해서 이분들의 시장을 더 확대해 나갈 계획이라는 것은 라는 점을 좀 안내해 드리고 싶습니다.

Wan-Sam Lee: 부유층이 증가하고 있는 거에 대해 저희는 명확하게 인식을 하고 있고, 부유층을 확보 및 관리하기 위해서 갖춘 인프라는 제가 생각하기에는 업계 최고 수준입니다. 또한 강력한 전속 채널의 자산 컨설팅 능력을 저희가 향상시키는 데 주력하고 있고, 종신보험 이외에 이분들의 니즈가 있는 일시납 보험을 적극적으로 판매해서 이분들의 시장을 적극적으로 확대해 나갈 계획이라는 점을 안내해 드리고 싶습니다.

Speaker #2: Yes. So, we have a very clear recognition that the high net worth market is, in fact, growing. And, in terms of the underlying infrastructure to cater to this segment and to manage it well, I would say that we are by far the top performing in the industry.

Sophia Foel: Yes. We have a very clear recognition that the high net worth market is in fact growing. In terms of the underlying infrastructure to cater to this segment, and to manage it well, I would say that we are by far the top performing in the industry. We can leverage our very strong exclusive channel, and we are focusing on continuing to grow the asset consulting capacity of our channel. We are also expanding beyond just whole life, particularly to single payment type products and policies that have underlying needs within high net worth markets.

[Translator]: Yes. We have a very clear recognition that the high net worth market is in fact growing. In terms of the underlying infrastructure to cater to this segment, and to manage it well, I would say that we are by far the top performing in the industry. We can leverage our very strong exclusive channel, and we are focusing on continuing to grow the asset consulting capacity of our channel. We are also expanding beyond just whole life, particularly to single payment type products and policies that have underlying needs within high net worth markets.

Speaker #2: We can leverage our very strong, exclusive channel, and we are focusing on continuing to grow the asset consulting capacity of our channel. We are also expanding beyond just whole life, particularly to single-payment type products and policies that have underlying needs within the high-net-worth market.

Lee Jisun: 네, 안녕하십니까. RM 팀장 이지선입니다. 두 번째 유동성 관련하여 답변드리도록 하겠습니다.

Lee Ji-seon: 네, 안녕하십니까. RM 팀장 이지선입니다. 두 번째 유동성 관련하여 답변드리도록 하겠습니다.

Speaker #4: 안녕하십니까, RM팀장 이지선입니다. 두 번째 유동성 관련하여 답변드리도록 하겠습니다.

Speaker #2: Yes, this is 이지선, head of the RM team. Let me take your second question on liquidity management.

Sophia Foel: Yes, this is Lee Jisun, Head of the RM team. Let me take your second question on liquidity management.

[Translator]: Yes, this is Lee Jisun, Head of the RM team. Let me take your second question on liquidity management.

Speaker #4: 예, 말씀 주신 바와 같이 금리 상승과 이제 주가 급상승에 따라 저희 당사도 헤지가 조금 늘어난 것은 사실입니다.

Lee Jisun: 말씀드린 바와 같이 금리 상승과 주가 급상승에 따라 저희 당사도 해지가 조금 늘어난 것은 사실입니다.

Lee Ji-seon: 말씀드린 바와 같이 금리 상승과 주가 급상승에 따라 저희 당사도 해지가 조금 늘어난 것은 사실입니다.

Speaker #2: So, as you said, with rising interest rates and also an abrupt increase in share prices, it is true that we have also seen a slight increase in our lapse ratio as well.

Sophia Foel: As you said, with rising interest rates and also an abrupt increase in share prices, it is true that we also have seen a slight increase in our lapse ratio.

[Translator]: As you said, with rising interest rates and also an abrupt increase in share prices, it is true that we also have seen a slight increase in our lapse ratio.

Speaker #4: 그렇지만 상반기에 조금 많이 올랐던 것이, 이제 하반기에 주식시장에도 변동성이 크게 늘어나면서 그 헤지가 조금 안정화되고 있는 그런 상황이고요.

Lee Jisun: 그렇지만 상반기에 조금 많이 올랐던 것이 이제 하반기에 주식 시장에도 변동성이 크게 늘어나면서 그 해지가 조금 안정화되고 있는 그런 상황이고요.

Lee Ji-seon: 그렇지만 상반기에 조금 많이 올랐던 것이 이제 하반기에 주식 시장에도 변동성이 크게 늘어나면서 그 해지가 조금 안정화되고 있는 그런 상황이고요.

Speaker #2: However, although it did go up in the first half in particular, into the second half of the year, amid widening volatility in the equity market, we have seen a recovery more towards stable trends.

Sophia Foel: However, although it did go up in the H1, in particular into the H2 of the year, amid widening volatility in the equity market, we have seen recovery more towards stable trends.

[Translator]: However, although it did go up in the H1, in particular into the H2 of the year, amid widening volatility in the equity market, we have seen recovery more towards stable trends.

Speaker #4: 하지만 당사는 기본적으로 자산과 부채의 규모를 고려해서 거의 매일 그 수지차를 전망하고, 각 위기 단계별 최소 유동성 자금 기준을 관리, 운영하고 있습니다.

Lee Jisun: 하지만 당사는 기본적으로 그 자산과 부채 규모를 고려해서 거의 매일 그 수지타를 전망을 하고, 그 각 위기 단계별 최소 유동성 자금 기준을 관리 운영을 하고 있습니다.

Lee Ji-seon: 하지만 당사는 기본적으로 그 자산과 부채 규모를 고려해서 거의 매일 그 수지타를 전망을 하고, 그 각 위기 단계별 최소 유동성 자금 기준을 관리 운영을 하고 있습니다.

Speaker #2: But just as a baseline, we continue to track, on a day-to-day basis, our assets versus liabilities, just in terms of the size. And we continue to forecast the gap in terms of the balance.

Sophia Foel: Just as a baseline, we continue to track on a day-to-day basis, our assets versus liability, just in terms of the size. We continue to forecast the gap in terms of the balance. We have identified different crisis scenarios and identified the minimum level of liquidity that must be defended in every crisis scenario.

[Translator]: Just as a baseline, we continue to track on a day-to-day basis, our assets versus liability, just in terms of the size. We continue to forecast the gap in terms of the balance. We have identified different crisis scenarios and identified the minimum level of liquidity that must be defended in every crisis scenario.

Speaker #2: And we have identified different crisis scenarios and determined the minimum level of liquidity that must be maintained in every crisis scenario.

Speaker #4: 당사의 관리 기준상으로는 아직까지는 평시 기준이나, 이미 한 2년 전부터 1단계 수준으로 유동성을 관리해 오고 있고요.

Lee Jisun: 당사의 관리 기준상으로는 아직까지는 평시 기준이나 이미 한 2년 전부터 1단계 수준으로 유동성을 관리해 오고 있고요.

Lee Ji-seon: 당사의 관리 기준상으로는 아직까지는 평시 기준이나 이미 한 2년 전부터 1단계 수준으로 유동성을 관리해 오고 있고요.

Speaker #2: So, based on our management criteria, we are under normal conditions at the moment. But early—well, starting two years ago—we actually have been enforcing tighter liquidity control aligned to stage one in the scenario analysis.

Sophia Foel: Based on our management criteria, we are under normal conditions at the moment. Well, starting two years ago, we actually have been enforcing tighter liquidity control, aligned to stage 1 in the scenario analysis.

[Translator]: Based on our management criteria, we are under normal conditions at the moment. Well, starting two years ago, we actually have been enforcing tighter liquidity control, aligned to stage 1 in the scenario analysis.

Speaker #4: 예전 외환위기 시에 헤지가 급상승했던 그런 헤지 증가분은 위기 상황 시나리오에 반영을 해서, 그에 따른 유동성 위기를 저희가 갖고 있는 대책으로 커버 가능한지도 매 분기별 점검을 진행하고 있습니다.

Lee Jisun: 예전 그 외환위기 시에 해지가 급상승했던 그런 해지 증가분은 위기 상황 시나리오에 반영을 해서 그에 따른 유동성 위기를 저희가 갖고 있는 대책으로 커버 가능한지도 매 분기별 점검을 진행하고 있습니다.

Lee Ji-seon: 예전 그 외환위기 시에 해지가 급상승했던 그런 해지 증가분은 위기 상황 시나리오에 반영을 해서 그에 따른 유동성 위기를 저희가 갖고 있는 대책으로 커버 가능한지도 매 분기별 점검을 진행하고 있습니다.

Speaker #2: And we are continuing to carry out scenario analysis, assuming a very high-risk contingency situation where there may be an abrupt increase in lapses, similar to what we saw previously during the Asian Financial Crisis.

Sophia Foel: And we are continuing to carry out scenario analysis, assuming very high risk contingency situation where there may be an abrupt increase in lapse similar to what we saw previously during the Asian financial crisis. And we are testing on a quarterly basis if we have the means within Samsung Life to cover against that kind of liquidity risk and exposure.

[Translator]: And we are continuing to carry out scenario analysis, assuming very high risk contingency situation where there may be an abrupt increase in lapse similar to what we saw previously during the Asian financial crisis. And we are testing on a quarterly basis if we have the means within Samsung Life to cover against that kind of liquidity risk and exposure.

Speaker #2: And we are testing on a quarterly basis if we have the means within Samsung Life to cover against that kind of liquidity risk and exposure.

Speaker #4: 그래서 결론을 말씀드리면, 지금까지는 큰 문제 없다고 생각하고 있지만, 시장 상황이 워낙 변동성이 커진 상황이기 때문에 이를 고려해서 보수적으로 관리하도록 하겠습니다. 감사합니다.

Lee Jisun: 그래서 결론을 말씀드리면 지금까지는 큰 문제 없다고 생각하고 있지만, 시장 상황이 워낙 변동성이 커진 상황이기 때문에 이를 고려해서 보수적으로 관리하도록 하겠습니다. 감사합니다.

Lee Ji-seon: 그래서 결론을 말씀드리면 지금까지는 큰 문제 없다고 생각하고 있지만, 시장 상황이 워낙 변동성이 커진 상황이기 때문에 이를 고려해서 보수적으로 관리하도록 하겠습니다. 감사합니다.

Speaker #2: So our conclusion to date is that we do not see any sort of major concern. However, with market volatility as wide as it is now, we intend to continue very tight management based on a conservative stance.

Sophia Foel: Our conclusion to date is that we do not see any source of major concern. However, with the market volatility as wide as it is now, we intend to continue very tight management based on a conservative stance.

[Translator]: Our conclusion to date is that we do not see any source of major concern. However, with the market volatility as wide as it is now, we intend to continue very tight management based on a conservative stance.

Speaker #2: 네, 자산운용전략팀장 김혜진입니다.

Kim Hye-jin: 네, 자산운용전략팀장 김혜진입니다. 세 번째 질문 답변드리겠습니다.

Kim Hyejin: 네, 자산운용전략팀장 김혜진입니다. 세 번째 질문 답변드리겠습니다.

Speaker #5: 세 번째 질문 답변드리겠습니다.

Speaker #2: Yes, this is Kim Hye-jin, Head of Asset Management. Let me take your third question.

Sophia Foel: Yes, this is Kim Hye-jin, Head of Asset Management. Let me take your third question.

[Translator]: Yes, this is Kim Hye-jin, Head of Asset Management. Let me take your third question.

Speaker #5: 올해 상반기에는 유독 극심한 시장 변동성이 발생하면서, 헤지 관련된 손익 변동성이 커졌습니다.

Kim Hye-jin: 올해 상반기에는 유독 극심한 시장 변동성이 발생하면서 헤지 관련된 손익 변동성이 커졌습니다.

Kim Hyejin: 올해 상반기에는 유독 극심한 시장 변동성이 발생하면서 헤지 관련된 손익 변동성이 커졌습니다.

Speaker #2: So in the first half, certainly with very significant widening of market volatility, we have seen elevated hedging-related loss.

Sophia Foel: In H1, certainly with very significant widening of market volatility, we have seen elevated hedging-related loss.

[Translator]: In H1, certainly with very significant widening of market volatility, we have seen elevated hedging-related loss.

Speaker #5: 헤지는 변액 보증 옵션에 대한 리스크를 헤지하는 것으로, 만약 이를 안 했을 경우 손익 변동성은 사실 1조 원 이상 커졌을 수도 있습니다. 따라서 해당 리스크에 대해서는 앞으로도 계속 헤지를 진행해야 한다고 보고 있습니다.

Kim Hye-jin: 헤지는 변액보험 옵션에 대한 리스크를 헷지하는 것으로 만약 이를 안 했을 경우에 손익 변동성은 사실 1조 이상 커졌을 수도 있습니다. 따라서 해당 리스크에 대해서는 앞으로도 계속 헷지를 진행해야 한다고 보고 있습니다.

Kim Hyejin: 헤지는 변액보험 옵션에 대한 리스크를 헷지하는 것으로 만약 이를 안 했을 경우에 손익 변동성은 사실 1조 이상 커졌을 수도 있습니다. 따라서 해당 리스크에 대해서는 앞으로도 계속 헷지를 진행해야 한다고 보고 있습니다.

Speaker #2: So, obviously, the hedging was for the purpose of hedging against the risk associated with minimum guarantees that were provided as an option on our variable account policies.

Sophia Foel: Obviously, the hedging was for the purpose of hedging against the risk associated with minimum guarantees that were provided as an option on our variable account policies. If we had not hedged against that risk, potentially there could have been an impact of around KRW 1 trillion to our P&L. Obviously, we believe we need to continue to hedge against this potential risk. But because this should not be an added burden to our financial stability, we are running our own task force on variable product hedging, specifically to analyze the root cause of the recent developments and to develop numerous hedging tools or means so that we can minimize the error rates. We intend to refine our analysis and mitigating measures further so that we can be more defensive against market volatility, such as we saw in H1. Yes, this is the CFO.

[Translator]: Obviously, the hedging was for the purpose of hedging against the risk associated with minimum guarantees that were provided as an option on our variable account policies. If we had not hedged against that risk, potentially there could have been an impact of around KRW 1 trillion to our P&L. Obviously, we believe we need to continue to hedge against this potential risk. But because this should not be an added burden to our financial stability, we are running our own task force on variable product hedging, specifically to analyze the root cause of the recent developments and to develop numerous hedging tools or means so that we can minimize the error rates. We intend to refine our analysis and mitigating measures further so that we can be more defensive against market volatility, such as we saw in H1.

Speaker #2: If we had not hedged against that risk, potentially there could have been an impact of around KRW 1 trillion to our P&L. So, obviously, we believe we need to continue to hedge against this potential risk.

Speaker #5: 다만 재무 안전성에 부담이 되어서는 안 되기 때문에 현재 자체적으로 변액 헤지 TF를 가동 중에 있고, 정밀한 원익 분석 및 오차 최소화를 위해서 헤지 수단 다변화도 병행하고 있습니다.

Speaker #2: But because this should not be an added burden to our financial stability, we are running our own task force on variable product hedging specifically, to analyze the root cause of the recent developments and to develop numerous hedging tools or means so that we can minimize the error rates.

Speaker #5: 향후 상반기와 같은 시장 변동성 확대에도 대응해 나갈 수 있도록 더욱 정교해 나가도록 하겠습니다. 이상입니다.

Speaker #2: We intend to refine our analysis and mitigating measures further so that we can be more defensive against market volatility, such as we saw in the first half.

Speaker #3: 네, 셰프입니다. 조금 더 말씀드리겠습니다. 향후 주식시장 변동 등으로 인한 유동성을 저희가 적극적으로 관리하기 위해서, 조금 전에 말씀드린 대로 시장에 흐르고 있는 현금 자산을 저희가 적극적으로 확보하기 위해 개인 및 법인 고객에 적합한 상품을 개발하여 7월부터 적극적으로 판매하고 있고, 앞으로도 지속적으로 판매할 계획입니다.

Wan-Sam Lee: []

[Translator]: Yes, this is the CFO.

Speaker #3: 이를 추가로 말씀드립니다.

Speaker #2: Yes, this is the CFO. I would just like to add that we actually have been moving quite proactively in terms of managing our liquidity.

Sophia Foel: I would just like to add that we actually have been moving quite proactively in terms of managing our liquidity, particularly given the wide market or widening market volatility. We actually have been trying to tap a lot of the widely available cash assets that are circulating in the market by developing certain products that can cater to not only retail or individual customers, but to corporate customers as well. We have started the sales of these new products in July, and we will continue with this type of product-driven strategy as well.

[Translator]: I would just like to add that we actually have been moving quite proactively in terms of managing our liquidity, particularly given the wide market or widening market volatility. We actually have been trying to tap a lot of the widely available cash assets that are circulating in the market by developing certain products that can cater to not only retail or individual customers, but to corporate customers as well. We have started the sales of these new products in July, and we will continue with this type of product-driven strategy as well.

Speaker #2: Particularly given the wide market, or widening market volatility, we have actually been trying to tap a lot of the widely available cash assets that are circulating in the market by developing certain products that can cater to not only retail or individual customers but to corporate customers as well.

Speaker #2: We have started the sales of these new products in July, and we will continue with this type of product-driven strategy as well.

Speaker #4: 다음으로 질문해 주실 분은 한화투자증권의 김도하 님입니다. The following question will be presented by Doha Kim from Hanwha Investment & Securities. Please go ahead with your question.

Sun Kim: The following question will be presented by Doha Kim from Hanwha Investment & Securities. Please go ahead with your question.

Operator: The following question will be presented by Doha Kim from Hanwha Investment & Securities. Please go ahead with your question.

Speaker #2: 네, 질문 기회 주셔서 감사합니다. 저도 투자 쪽 다시 또 여쭤보고, 배당 쪽 여쭤보려고 하는데요. 투자단에서는 일단 제가 지금 별도 CEP 기준으로 보고 있어서, 보시는 숫자랑 같지 않을 수도 있는데, 당표상 PDF 하단 2페이지로 기재되어 있는 연결 손익 현황에서 투자 별도를 통해서도 보실 수 있을 것 같습니다.

Doha Kim: 질문 기회 주셔서 감사합니다. 저도 투자 쪽 다시 여쭤보고 배당 쪽 여쭤보려고 하는데요. 투자 판에서는 일단 제가 지금 별도 세 기준으로 보고 있어서 보시는 숫자랑 같지 않을 수도 있는데, 장표상 PDF 하단에 인피니트로 기재되어 있는 연결손익 현황에서 투자 별도를 통해서도 보실 수 있을 것 같습니다. 변액 헤지 쪽에서의 손실이 좀 있으셨던 걸로 설명을 계속 주셨는데 그게 규모가 어떻게 되시는지. 사실 세 기준에 특별 계정만 따로 발라놓고 보면 440억 원 정도 적자가 나왔고, 저희가 이쪽은 원래 보통 제로섬을 놓고 보니까 이 정도의 헤지 손실로 이해하면 될까 싶은데, 일반 계정 판에서 적자가 나온 게 저는 더 커 보이거든요. 그래서 변액보험 영향이 얼마셨는지, 그리고 그게 특별 계정에만 소화가 된 게 맞는지라고 하면 일반 계정 판에서 매평이 좀 안 좋게 나온 원인을 저희가 따로 발라서 봐야 될지, 아니면 정상적인 부분에서 에러가 난 게 있는지 설명을 주셔야 저희 투자 쪽의 추후 추정치를 보는 데 있어서 도움이 될 거라고 생각이 됩니다.

Do-ha Kim: 질문 기회 주셔서 감사합니다. 저도 투자 쪽 다시 여쭤보고 배당 쪽 여쭤보려고 하는데요. 투자 판에서는 일단 제가 지금 별도 세 기준으로 보고 있어서 보시는 숫자랑 같지 않을 수도 있는데, 장표상 PDF 하단에 인피니트로 기재되어 있는 연결손익 현황에서 투자 별도를 통해서도 보실 수 있을 것 같습니다. 변액 헤지 쪽에서의 손실이 좀 있으셨던 걸로 설명을 계속 주셨는데 그게 규모가 어떻게 되시는지. 사실 세 기준에 특별 계정만 따로 발라놓고 보면 440억 원 정도 적자가 나왔고, 저희가 이쪽은 원래 보통 제로섬을 놓고 보니까 이 정도의 헤지 손실로 이해하면 될까 싶은데, 일반 계정 판에서 적자가 나온 게 저는 더 커 보이거든요. 그래서 변액보험 영향이 얼마셨는지, 그리고 그게 특별 계정에만 소화가 된 게 맞는지라고 하면 일반 계정 판에서 매평이 좀 안 좋게 나온 원인을 저희가 따로 발라서 봐야 될지, 아니면 정상적인 부분에서 에러가 난 게 있는지 설명을 주셔야 저희 투자 쪽의 추후 추정치를 보는 데 있어서 도움이 될 거라고 생각이 됩니다.

Speaker #2: 그 변액 헤지 쪽에서의 손실이 좀 있으셨던 걸로 설명을 계속 주셨는데, 그게 규모가 어떻게 되시는지요? 사실 이 CEP 기준에 특별 계정만 따로 발라놓고 보면 840억 원 정도 적자가 나왔고, 저희가 이쪽은 원래 보통 제로섬을 놓고 보니까 이 정도의 헤지 손실로 이해하면 될까 싶은데, 일반 계정단에서 적자가 나온 게 저는 더 커 보이거든요.

Speaker #2: 그래서 변액 보증 영향이 얼마셨는지, 그리고 그게 특별계정에만 소화가 된 게 맞는지라고 하면, 일반계정 단에서 매평이 좀 안 좋게 나온 원인을 저희가 따로 발라서 봐야 할지, 아니면 정상적인 부분에서 에러가 난 게 있는지 설명을 주셔야 저희 투자 쪽에서 추후 추정치를 보는 데 있어서 도움이 될 거라고 생각이 됩니다.

Speaker #2: 더불어 배당 같은 경우는 지금 앞서서도 CFO께서 여러 번 얘기를 주셨고, 당장의 어떤 계획을 말씀 주실 거라고 기대되지는 않습니다만, 저희가 작년서부터도 동일한 요구들을 사실 많이 했었고요.

Doha Kim: 더불어 배당 같은 경우는 지금 앞서서도 CFO께서 여러 번 얘기를 주셨고, 당장에 어떤 계획을 말씀 주실 거라고 기대되진 않습니다만 저희가 작년 전부터도 동일한 요구들을 사실 많이 했었고요. 준비해서 말씀 주시겠다고 했지만 준비할 시간은 사실 많았었던 것 같습니다. 그래서 내년 배당 정식 공시는 그때는 당연히 뭔가 나올 거라고 생각되지만, 아까 그것보다도 이르게 할 수 있도록 노력하겠다고 말씀을 주셨기에 저희가 올해 안에는 이런 특별 이익에 대한 sharing을 좀 감을 잡을 정도의 정책이 나올 거라고 봐도 될지, 가능하시면 시기까지 말씀을 주셨으면 좋겠는데 어려우시다고 하면 올해 안에를 볼 수 있는지까지라도 말씀을 주셔야. 지금 저희는 DPS 상승을 기대하는 투자자는 아마 없을 거예요. 특별 이익에 대한 sharing이 어디까지 되느냐를 기대하는 것이기 때문에 좀 더 투자자들이 감을 잡을 수 있게끔 설명을 구체화해 주시면 감사하겠습니다.

Do-ha Kim: 더불어 배당 같은 경우는 지금 앞서서도 CFO께서 여러 번 얘기를 주셨고, 당장에 어떤 계획을 말씀 주실 거라고 기대되진 않습니다만 저희가 작년 전부터도 동일한 요구들을 사실 많이 했었고요. 준비해서 말씀 주시겠다고 했지만 준비할 시간은 사실 많았었던 것 같습니다. 그래서 내년 배당 정식 공시는 그때는 당연히 뭔가 나올 거라고 생각되지만, 아까 그것보다도 이르게 할 수 있도록 노력하겠다고 말씀을 주셨기에 저희가 올해 안에는 이런 특별 이익에 대한 sharing을 좀 감을 잡을 정도의 정책이 나올 거라고 봐도 될지, 가능하시면 시기까지 말씀을 주셨으면 좋겠는데 어려우시다고 하면 올해 안에를 볼 수 있는지까지라도 말씀을 주셔야. 지금 저희는 DPS 상승을 기대하는 투자자는 아마 없을 거예요. 특별 이익에 대한 sharing이 어디까지 되느냐를 기대하는 것이기 때문에 좀 더 투자자들이 감을 잡을 수 있게끔 설명을 구체화해 주시면 감사하겠습니다.

Speaker #2: 준비해서 말씀 주시겠다고 했지만, 준비할 시간은 사실 많았었던 것 같습니다. 그래서 내년 계획 정식 공시는 그때는 당연히 뭔가 나올 거라고 생각되지만, 아까 그것보다도 이르게 할 수 있도록 노력하겠다고 말씀을 주셨기에 저희가 올해 안에는 이런 특별이익에 대한 쉐어링을 좀 감을 잡을 정도로의 정책이 나올 거라고 봐도 될지, 가능하시면 시기까지 말씀을 주셨으면 좋겠는데, 어려우시다고 하면 올해 안에 볼 수 있는지까지라도 말씀을 주셔야 지금 저희는 DPS 상승을 기대하는 투자자는 아마 없을 거예요.

Speaker #2: 특별 이익에 대한 쉐어링이 어디까지 되느냐를 기대하는 것이기 때문에, 좀 더 투자자들이 감을 잡을 수 있게끔 설명을 구체화해 주시면 감사하겠습니다. Yes. I would like to ask a question on investment and then dividends.

Sophia Foel: Yes, I would like to ask a question on investment and then dividends. I am looking at the separate basis numbers. It may not match exactly with the number set that you are looking at. But in terms of the variable hedging loss that you mentioned, what is the exact size? Just in terms of the special account, I think it is somewhere around 4 billion. Is that consistent with the total amount, or is there another portion that also impacts your general account? Sorry, 84 billion. Second question, regarding the dividends. I think on numerous occasions, the CFO has said that while you are not able to immediately share, still, you will try to address the requests, the numerous requests to try to share, to give more color as quickly as possible. That being said, a lot of time has passed and still we have not received that kind of information.

[Translator]: Yes, I would like to ask a question on investment and then dividends. I am looking at the separate basis numbers. It may not match exactly with the number set that you are looking at. But in terms of the variable hedging loss that you mentioned, what is the exact size? Just in terms of the special account, I think it is somewhere around 4 billion. Is that consistent with the total amount, or is there another portion that also impacts your general account?

Speaker #2: So, I'm looking at the separate basis numbers, so they may not match exactly with the numbers set that you are looking at. But in terms of the variable hedging loss that you mentioned, what is the exact size?

Speaker #2: Just in terms of the special account, I think it's somewhere around $4 billion. So, is that consistent with the total amount, or is there another portion that also impacts your general account?

Speaker #2: So sorry, $84 billion. Second question, regarding the dividends, I think on numerous occasions the CFO has said that while you're not able to immediately share, you'll still try to address the requests—the numerous requests—to try to provide more color as quickly as possible.

[Translator]: Sorry, 84 billion. Second question, regarding the dividends. I think on numerous occasions, the CFO has said that while you are not able to immediately share, still, you will try to address the requests, the numerous requests to try to share, to give more color as quickly as possible. That being said, a lot of time has passed and still we have not received that kind of information.

Speaker #2: That being said, a lot of time has passed and still we don't have we have not received that kind of information. So will you at least be sharing that kind of update at least within this year?

Sophia Foel: Will you at least be sharing that kind of update, at least within this year? If you can share. I don't think any of the investors are expecting any increase in the DPS per se, but we are interested whether you have plans to share some of your special earnings. Could you explain further?

[Translator]: Will you at least be sharing that kind of update, at least within this year? If you can share. I don't think any of the investors are expecting any increase in the DPS per se, but we are interested whether you have plans to share some of your special earnings. Could you explain further?

Speaker #2: If you can share, I don't think any of the investors are expecting any increase in the DPS per se, but we are interested in whether you have plans to share some of your special earnings.

Speaker #2: So could you explain further? 이 자산운용전략팀 김혜진입니다. Yes, this is Kim Hye-jin from the Asset Management Strategy Team. 저희 변액 보증 옵션은 일반 계정에서 수수료를 받아서 그걸로 헤지하는 방식으로 운영됩니다.

Kim Hye-jin: 예, 자산운용전략팀 김혜진입니다.

Kim Hyejin: 예, 자산운용전략팀 김혜진입니다.

Sophia Foel: Yes, this is Kim Hye-jin from the asset management team.

[Translator]: Yes, this is Kim Hye-jin from the asset management team.

Kim Hye-jin: 저희 변액보증옵션은 일반계정에서 수수료를 받아서 그걸로 헷지하는 방식으로 운영됩니다. 따라서 현재 발생하고 있는 변액 헷지 관련 손실은 모두 다 일반계정에서 발생하고 있습니다.

Kim Hyejin: 저희 변액보증옵션은 일반계정에서 수수료를 받아서 그걸로 헷지하는 방식으로 운영됩니다. 따라서 현재 발생하고 있는 변액 헷지 관련 손실은 모두 다 일반계정에서 발생하고 있습니다.

Speaker #2: 따라서 현재 발생하고 있는 변액 헤지 관련 손실은 모두 다 일반 계정에서 발생하고 있습니다. So, in terms of our variable hedging loss, actually the hedging is done using fees that are received through our general accounts.

Sophia Foel: In terms of our variable hedging loss, actually the hedging is done using fees that are received through our general accounts. In fact, that means all hedging-related losses are specific to our general accounts only.

[Translator]: In terms of our variable hedging loss, actually the hedging is done using fees that are received through our general accounts. In fact, that means all hedging-related losses are specific to our general accounts only.

Speaker #2: So in fact, that means all hedging-related losses are specific to our general accounts only. 그리고 그 금액은 현재 총 850억 정도로 보시면 됩니다. 이상입니다.

Kim Hye-jin: 그리고 그 금액은 현재 총 850억 정도로 보시면 됩니다. 이상입니다.

Kim Hyejin: 그리고 그 금액은 현재 총 850억 정도로 보시면 됩니다. 이상입니다.

Speaker #2: And the hedging-related loss actually totals about 85 billion Korean won.

Sophia Foel: The hedging-related loss actually totals about KRW 85 billion.

[Translator]: The hedging-related loss actually totals about KRW 85 billion.

Speaker #5: 네, CFO입니다. 배당 정책하고, 전자 특별 배당 관련해서 말씀드리겠습니다.

Wan-Sam Lee: 네, CFO입니다. 배당 정책하고 전자 특별배당 관련해서 말씀드리겠습니다.

Speaker #2: Yes, this is the CFO. Let me continue.

Sophia Foel: Yes, this is the CFO. Let me elaborate on our dividend policy, also the Samsung Electronics related special dividend that you asked about.

[Translator]: Yes, this is the CFO. Let me elaborate on our dividend policy, also the Samsung Electronics related special dividend that you asked about.

Speaker #1: Let me elaborate on our dividend policy as well. Regarding the Samsung Electronics-related special dividend that you asked about, I'd like to seek your understanding in advance that I am not able to share the detailed numbers or exact timing today.

Wan-Sam Lee: 현재 명확한 시점과 그 숫자를 말씀 못 드리는 점 사전에 양해 말씀드립니다.

Sophia Foel: I would like to seek your understanding in advance that I am not able to share the detailed numbers or the exact timing today.

[Translator]: I would like to seek your understanding in advance that I am not able to share the detailed numbers or the exact timing today.

Wan-Sam Lee: 잘 아시다시피 당사는 장기 주주 환원을 50%를 목표로 견조한 이익 성장과 주당 배당금의 지속적인 상향을 통해 주주 환원의 예측 가능성을 지속적으로 제고해 나가겠습니다.

Speaker #2: To

Speaker #1: So we are obviously targeting a long-term shareholder return target of 50%, driven by robust earnings growth and consistent increases to our dividend per share.

Sophia Foel: We obviously are targeting a long-term shareholder return target of 50%, driven by robust earnings growth and consistent increase to our DPS. We continue to work hard to drive for that kind of consistent incremental improvement.

[Translator]: We obviously are targeting a long-term shareholder return target of 50%, driven by robust earnings growth and consistent increase to our DPS. We continue to work hard to drive for that kind of consistent incremental improvement.

Speaker #1: And we continue to work hard to drive that kind of consistent and incremental improvement.

Wan-Sam Lee: 잘 아시다시피 당사는 지난 5년간 주당 배당금을 연평균 16% 이상 성장시켜 왔고, 앞으로도 최소 경상이익 성장률 이상으로 주당 배당금을 확대한다고 말씀을 드렸고, 이를 통해서 안정적인 배당 성장주로서 자리매김할 수 있도록 최선을 다하겠습니다.

Speaker #2: Will

Speaker #1: So, as you are well aware, we have been growing our dividend per share at an annual growth rate of above 16%. And we have committed to continuing to expand our dividend per share at a rate above the growth rate of our recurring earnings.

Sophia Foel: As you are well aware, we have been growing our DPS at an annual growth rate of above 16%, and we have committed to continuing to expand our DPS at above the rate of growth for our recurring earnings. We are committed, again, to doing our best to anchor ourselves as a very stable dividend growth share.

[Translator]: As you are well aware, we have been growing our DPS at an annual growth rate of above 16%, and we have committed to continuing to expand our DPS at above the rate of growth for our recurring earnings. We are committed, again, to doing our best to anchor ourselves as a very stable dividend growth share.

Speaker #1: So, we are committed to doing our best to anchor ourselves as a very stable dividend growth share. And then, regarding Samsung Electronics disposal gains—also, the possibility of special dividends.

Wan-Sam Lee: 아무래도 전자, 그 저희 매각익과 특별배당에 관해서 간략히 말씀드리겠습니다.

Sophia Foel: Regarding Samsung Electronics disposal gains, also possibility of special dividends.

[Translator]: Regarding Samsung Electronics disposal gains, also possibility of special dividends.

Wan-Sam Lee: 당사는 25년도 배당 결정 시에도 경상이익뿐만 아니라 지난해 2월에 발생한 전자 매각익도 배당 재원에 포함하여 결정하였고, 앞으로도 이 계획에는 변화가 없습니다.

Speaker #2: Approval

Speaker #1: So when we were determining our dividend policy earlier in 2025, we committed to expanding the dividend per share above ordinary growth. And also, at the time of disposing regarding disposal gains from SEC shares, we also determined that they would be included in the pool of funds for dividends, and that policy remains unchanged today.

Sophia Foel: When we were determining our dividend policy earlier in 2025, we committed to expanding dividend per share above ordinary growth. Also at the time of disposing regarding disposal gains from SEC shares, we also determined that they would be included in the pool of funds for dividends, and that policy remains unchanged today.

[Translator]: When we were determining our dividend policy earlier in 2025, we committed to expanding dividend per share above ordinary growth. Also at the time of disposing regarding disposal gains from SEC shares, we also determined that they would be included in the pool of funds for dividends, and that policy remains unchanged today.

Wan-Sam Lee: 아마 조금 전에 말씀하신 대로 관심도가 매우 높은 그 전자의 특별배당 관련해서는 지금 시점을 저희가 정확하게 예측할 수도 없고, 규모 또한 변동성이 크게 예측됨에 따라서 현재 시점에서 전자 특별배당에 대해서 특정해서 말씀드리기는 매우 어려운 상황입니다.

Speaker #2: So

Sophia Foel: Regarding special dividends regarding SEC shares, I do know that this is a matter of great interest, but it is very difficult for me to share any specifics in terms of what exact timeline we expect. Also, the size given the different factors that may lead to changing conditions.

Speaker #1: And regarding special dividends concerning SEC shares, I do know that this is a matter of interest, but it is very difficult for me to share any specifics in terms of what exact timeline we expect.

[Translator]: Regarding special dividends regarding SEC shares, I do know that this is a matter of great interest, but it is very difficult for me to share any specifics in terms of what exact timeline we expect. Also, the size given the different factors that may lead to changing conditions.

Speaker #1: Also, the size, given the different factors that may lead to changes, and changing conditions.

Wan-Sam Lee: 그러나 시장에서 예측하는 대로 전자의 그 특별배당 발표 시점이 정해지고 규모가 정해지면 그런 것들을 포함해서 회사가 적정 K-ICS 비율 이상으로 유지할 경우에 주당 배당금을 매년 꾸준히 늘려가는 것은 제가 미리 소통을 드린 바와 같이 지속적으로 추진해 나가도록 그렇게 하겠습니다.

Speaker #2: So To butyl

Sophia Foel: Once there is more clarity in terms of the special dividends, in terms of the size and likely timing, and on the assumption that we are maintaining our K-ICS ratio above a certain adequate level, we remain committed to continuing to improve our DPS year-on-year.

Speaker #1: And so once there is more clarity in terms of the special dividends , in terms of the size and likely timing . Then and on the assumption that we are maintaining our Kix ratio above a certain adequate level , we remain committed to continuing to improve our DPS year on year

[Translator]: Once there is more clarity in terms of the special dividends, in terms of the size and likely timing, and on the assumption that we are maintaining our K-ICS ratio above a certain adequate level, we remain committed to continuing to improve our DPS year-on-year.

Operator: 다음으로 질문해 주실 분은 DB증권의 이병건 님입니다.

Speaker #3: The following question will be presented by Byung John Lee from DB Securities. Please go ahead with your question.

Sophia Foel: The following question will be presented by Byungkwon Lee from DB Securities. Please go ahead with your question.

[Translator]: The following question will be presented by Byungkwon Lee from DB Securities. Please go ahead with your question.

Speaker #4: Yeah, no, I think I saw that on page D2. In capital.

Byungkwon Lee: 안녕하십니까. DB증권 이병건입니다. 해약환급금 준비금 관련해서 일단 여쭤보려고 하는데요. 변액에 대해서는 아까 상세하게 말씀을 주셨고요. 그런데 보게 되면 우리가 이제 80% 정도 적립한다고 보게 되면 오전에 실적을 발표한 선보사와 절대적인 규모는 상당히 유사한데, 저희가 생각할 때 구조는 좀 다르지 않을까 싶거든요. 그러니까 실제로 해약환급금 준비금에 지금 α1, α2를 초과해서 집행하는 사업비가 상당히 큰 영향을 주고 있는데 상대적으로 우리 회사는 그쪽의 영향은 좀 적지 않을까라고 추정이 됩니다. 그래서 회사 쪽에서 해약환급금 준비금, 정상적으로 분기 5천억 정도라고 되는 부분이 마이너스 부채라든가 기타 다른 요인, 그리고 사업비를 기초서류 이상으로 사용하는 것에서 발생하는 것들, 이런 것들의 비중이 어느 정도 현재 차지하고 있다고 봐야 되는지 추가적인 설명이 가능하시면 부탁을 드리겠습니다. 그리고 두 번째 여쭤볼 부분은 1,200% 룰 관련해서 내년도에 어쨌든 총량 규제가 도입이 되고요. 지금 정부 쪽에서는 이것과 관련해서 제재 수준도 어느 정도 입법화한다라는 얘기도 나오고 있는 것 같습니다.

Byungkwon Lee: 그래서 현재 수준에서 내년도 총량 규제가 도입된다고 봤을 때, 어느 정도 신계약비 지출이 줄어들 가능성이 있다고 보시는지, 혹시 내부적으로 보시는 게 있다면 공유를 좀 해주셨으면 합니다. 이상입니다.

Speaker #1: Yes. So, my first question has to do with the surrender value reserves. You did elaborate on the variable accounts breakdown.

Sophia Foel: Yes. My first question has to do with the surrender value reserves. You did elaborate on the variable accounts breakdown. I am interested in the surrender value reserves as well. Earlier this morning, there was a non-life company that reported their earnings. I think in terms of the absolute size of the accumulation, perhaps it is quite similar, 80%, but perhaps the breakdown or the composition might be different, which is why I ask. You talked about an ordinary level of about KRW 500 billion in surrender value reserves. What are the factors? Maybe operating expense overruns relative to the budget, but beyond that, what other factors may have an impact?

[Translator]: Yes. My first question has to do with the surrender value reserves. You did elaborate on the variable accounts breakdown. I am interested in the surrender value reserves as well. Earlier this morning, there was a non-life company that reported their earnings. I think in terms of the absolute size of the accumulation, perhaps it is quite similar, 80%, but perhaps the breakdown or the composition might be different, which is why I ask. You talked about an ordinary level of about KRW 500 billion in surrender value reserves. What are the factors? Maybe operating expense overruns relative to the budget, but beyond that, what other factors may have an impact?

Speaker #1: So, I'm interested in the surrender value reserves as well. Earlier this morning, there was a non-life company that reported their earnings.

Speaker #1: So I think the in terms of the absolute size of the accumulation , perhaps it is quite similar , 80% , but perhaps the , the breakdown or the composition might be different , which is why I asked .

Speaker #1: So you talked about an ordinary level of about 500 billion in surrender value reserves. So what are the factors? Maybe operating expense overruns relative to the budget.

Speaker #1: But then, beyond that, what other factors may have an impact? And the second question is regarding the 1,200% rule that will be implemented starting next year.

Sophia Foel: My second question is regarding the 1200% commission rule that will be implemented starting next year, I believe, where an aggregate cap will be enforced starting 2027, with the government also talking about possible sanctions being written into the law as well. Assuming the current level, if the rule is adopted, to what extent will your new business acquisition expense be reduced? If you have some internal numbers, I would like to hear.

[Translator]: My second question is regarding the 1200% commission rule that will be implemented starting next year, I believe, where an aggregate cap will be enforced starting 2027, with the government also talking about possible sanctions being written into the law as well. Assuming the current level, if the rule is adopted, to what extent will your new business acquisition expense be reduced? If you have some internal numbers, I would like to hear.

Speaker #1: I believe an aggregate cap will be enforced starting in 2027, with the government also talking about possible sanctions being written into the law as well.

Speaker #1: So, assuming the current level, if the rule is adopted, to what extent will your new business acquisition expense be reduced?

Speaker #1: Do you have some internal numbers? I'd like to hear them. Yes, this is ahead of the actuarial team. Let me take your first question.

Byun Incho: 안녕하십니까? 계리팀장 변인철입니다. 먼저 첫 번째 질문 답변드리겠습니다.

Byun Incheol: 안녕하십니까? 계리팀장 변인철입니다. 먼저 첫 번째 질문 답변드리겠습니다.

Sophia Foel: Yes, this is Byun Incho, Head of the Actuarial team. Let me take your first question.

Byun Incheol: Yes, this is Byun Incho, Head of the Actuarial team. Let me take your first question.

Byun Incho: 말씀하신 대로 해약금 준비금은 원가 부채하고 시가 부채의 차이를 의미하는데요. 상품을 발행하게 되면 시가 부채는 음수를 띠기 때문에 발생하는 구조입니다.

Byun Incheol: 말씀하신 대로 해약금 준비금은 원가 부채하고 시가 부채의 차이를 의미하는데요. 상품을 발행하게 되면 시가 부채는 음수를 띠기 때문에 발생하는 구조입니다.

Speaker #2: On On the

Speaker #1: So in terms of the surrender value reserves, this actually represents the difference between our liability measured at cost versus liability measured at fair value.

Sophia Foel: In terms of the surrender value reserves, this actually represents the difference between our liability measured at cost versus liability measured at fair value. Anytime we issue a new product, then the fair value liability becomes a negative, which results in that difference.

[Translator]: In terms of the surrender value reserves, this actually represents the difference between our liability measured at cost versus liability measured at fair value. Anytime we issue a new product, then the fair value liability becomes a negative, which results in that difference.

Speaker #1: And any time we issue a new product, then the fair value liability becomes a negative, which results in that difference.

Byun Incho: 그래서 말씀하신 대로 신계약비 집행 수준에 따라서 초과 수준이 결정이 되는데, 당사의 경우에는 그 수준이 크지 않은 것으로 알고 있습니다. 다만, 구체적인 수치는 IR팀 통해서 말씀을 드리도록 하겠습니다.

Byun Incheol: 그래서 말씀하신 대로 신계약비 집행 수준에 따라서 초과 수준이 결정이 되는데, 당사의 경우에는 그 수준이 크지 않은 것으로 알고 있습니다. 다만, 구체적인 수치는 IR팀 통해서 말씀을 드리도록 하겠습니다.

Speaker #2: In the LTM, or the...

Speaker #1: So based on our analysis of this difference , actually it is not a meaningful level for us . However , if you need more further details , please contact the IR team

Sophia Foel: Based on our analysis of this difference, actually, it is not a meaningful level for us. However, if you need more further details, please contact the IR team.

[Translator]: Based on our analysis of this difference, actually, it is not a meaningful level for us. However, if you need more further details, please contact the IR team.

Byun Incho: 그럼 참고로 지금 정상적으로 분기에 발생하는 수준은 말씀하신 대로 한 5천억 수준으로 이해하시면 되고요. 현재 2분기 기준으로 3조 1천의 해약금 준비금을 적립하고 있는데, 사실 변액 쪽을 제외한 일반 상품들의 해약금 준비금은 아직도 음수인 상황입니다. 이상입니다.

Byun Incheol: 그럼 참고로 지금 정상적으로 분기에 발생하는 수준은 말씀하신 대로 한 5천억 수준으로 이해하시면 되고요. 현재 2분기 기준으로 3조 1천의 해약금 준비금을 적립하고 있는데, 사실 변액 쪽을 제외한 일반 상품들의 해약금 준비금은 아직도 음수인 상황입니다. 이상입니다.

Speaker #2: And In the

Speaker #1: Okay , so on an ordinary quarterly basis , yes , you are correct . The surrender value reserves typically are about 500 billion per quarter as of the second quarter , the total reserve amount is about 3 trillion .

Sophia Foel: Okay. On an ordinary quarterly basis, yes, you are correct. The surrender value reserves typically are about KRW 500 billion per quarter. As of the Q2, the total reserve amount is about KRW 3.1 trillion. With the exception of the variable products, the surrender value reserves are negative for all other types of policies.

[Translator]: Okay. On an ordinary quarterly basis, yes, you are correct. The surrender value reserves typically are about KRW 500 billion per quarter. As of the Q2, the total reserve amount is about KRW 3.1 trillion. With the exception of the variable products, the surrender value reserves are negative for all other types of policies.

Speaker #1: 3.1 trillion. With the exception of the variable products, the surrender value reserves are all negative for all other types of policies.

Speaker #2: Yeah

Wan-Sam Lee: 네, 두 번째 질문에 대해 답해드리겠습니다. CFO입니다.

Speaker #1: Yes. This is the CFO. Let me discuss the second question a bit more.

Sophia Foel: Yes, this is the CFO. Let me discuss the second question a bit more.

[Translator]: Yes, this is the CFO. Let me discuss the second question a bit more.

Wan-Sam Lee: 저희가 예측하기로는 현재 신계약비 집행 대비 당사는 약 10% 정도, 그리고 업계는 약 20% 수준으로 감소될 것으로 전망하고 있습니다.

Speaker #2: On The

Speaker #1: So in terms of expected reduction to new business or business acquisition costs , we expect it will be about 10% reduced cost for us , 20% for the broad industry So we want to ensure that the reduced new business acquisition expense does not lead to any contraction in sales activities .

Sophia Foel: In terms of expected reduction to new business or business acquisition cost, we expect it will be about 10% reduced cost for us, 20% for the broad industry.

[Translator]: In terms of expected reduction to new business or business acquisition cost, we expect it will be about 10% reduced cost for us, 20% for the broad industry.

Wan-Sam Lee: 이러한 신계약비 집행으로 인한 판매가 위축되지 않도록 저희는 판매 시 비가격 경쟁력 강화를 위해서 판매 조직의 활동량을 증가시키려고 노력하고 있습니다.

Sophia Foel: We want to ensure that the reduced new business acquisition expense does not lead to any contraction in sales activities. We have been focusing on non-pricing related competitiveness and trying to promote more activities on the part of our sales organization.

[Translator]: We want to ensure that the reduced new business acquisition expense does not lead to any contraction in sales activities. We have been focusing on non-pricing related competitiveness and trying to promote more activities on the part of our sales organization.

Speaker #1: So we've been focusing on non-pricing-related competitiveness and trying to activate more, or excuse me, to promote more activities on the part of our sales organization.

Wan-Sam Lee: 이를 위해서 저희가 AI 툴을 적극적으로 활용할 예정이고, AI 판매 화법 등을 적극적으로 개발해서 제공을 하면서 저희가 지속적으로 주장했던 연간 신계약 CSM 3조 이상은 지속적으로 달성할 수 있도록 적극적으로 판매를 활성화하도록 하겠습니다. 이상입니다.

Speaker #2: AI tool AI So

Sophia Foel: In order to continue to boost sales, we are actively deploying AI-enabled tools and also developing AI-based sales practices to drive further sales growth so that we can deliver on our annual new business CSM target of KRW 3 trillion or above.

Speaker #1: In order to continue to boost sales , we are actively deploying AI enabled tools and also developing AI based sales practices as well to drive further sales growth so that we can deliver on our annual new business , SM target of 3 trillion or above

[Translator]: In order to continue to boost sales, we are actively deploying AI-enabled tools and also developing AI-based sales practices to drive further sales growth so that we can deliver on our annual new business CSM target of KRW 3 trillion or above.

Operator: 다음으로 질문해 주실 분은 iM증권의 설용진 님입니다.

Speaker #3: I am. The following question will be presented by Yong Jin Sol from M Securities. Please go ahead with your question.

Sun Kim: The following question will be presented by Yong-Jin Seol from iM Securities. Please go ahead with your question.

[Translator]: The following question will be presented by Yong-Jin Seol from iM Securities. Please go ahead with your question.

Speaker #5: I know to confirm that not is the...

Yong-Jin Seol: 질문 주셔서 감사합니다. 아까 간단하게 말씀해 주셨던 이번에 계리 가정 선진화 관련 영역 좀 여쭙고 싶고요. 이번에 CSM 조정이 좀 있었다 보니까, 제도 관련 이슈가 얼마 정도씩 긍정적인 요인과 마이너스 요인이 어떻게 혼재되어서 나타나는지 좀 세부적으로 설명해 주시면 감사할 것 같고요. 혹시 4분기에 예정된 간편 담보에 대한 가정 조정 영향도 내부적으로 추정하고 계신 게 있으면 공유해 주시면 감사할 것 같습니다. 그리고 계리 가정 선진화 반영하게 되면 신계약 베스트 영향이 좀 있을 것 같은데, 하반기랑 해가지고 전반적인 어페스 영향 공유해 주시면 감사할 것 같습니다.

Sophia Foel: I had a question mostly on the impact from the changes to the actuarial consumptions. It does seem that you had some CSM adjustment this quarter, which could be the mixed effect of positive and also detracting factors. If you could provide a breakdown, I appreciate it. Also, what type of impact do you think this may have on the simplified issue type of coverage that you are planning to release in Q4? Also, what is the possible impact in terms of new business? What kind of an assumption changes do you expect in Q4? What kind of impact from the changed assumptions in Q4?

Speaker #1: I had a question mostly on the impact from the changes to the actuarial consumption. It does seem that you had some CSM adjustment this quarter, which could be the mixed effect of positive.

[Translator]: I had a question mostly on the impact from the changes to the actuarial consumptions. It does seem that you had some CSM adjustment this quarter, which could be the mixed effect of positive and also detracting factors. If you could provide a breakdown, I appreciate it. Also, what type of impact do you think this may have on the simplified issue type of coverage that you are planning to release in Q4? Also, what is the possible impact in terms of new business? What kind of an assumption changes do you expect in Q4? What kind of impact from the changed assumptions in Q4?

Speaker #1: And also, detracting factors. So if you could provide a breakdown, I would appreciate it. And also, what type of impact do you think this may have on the simplified issue type of coverage that you're planning to release in the fourth quarter?

Speaker #1: Also, what is the possible impact in terms of new business? What kind of assumption changes do you expect in the fourth quarter?

Speaker #1: What kind of impact resulted from the changed assumptions in the fourth quarter?

Speaker #2: Yeah Then

Byun Incho: 계리팀장 변인철입니다. 2분기 계리 과정 선진화 영향하고 4분기에 예정된 간편 담보에 대한 변경 영향에 대해서 답변드리도록 하겠습니다.

Byun Incheol: 계리팀장 변인철입니다. 2분기 계리 과정 선진화 영향하고 4분기에 예정된 간편 담보에 대한 변경 영향에 대해서 답변드리도록 하겠습니다.

Speaker #1: So, okay, let me elaborate more on the impact of the changes to the actual assumptions in the second quarter. On the assumptions applied for the simplified coverage plan for the fourth quarter...

Sophia Foel: Okay, let me elaborate more on the impact of the changes to the actuarial assumptions in Q2, on the assumptions applied for the simplified coverage planned for Q4.

[Translator]: Okay, let me elaborate more on the impact of the changes to the actuarial assumptions in Q2, on the assumptions applied for the simplified coverage planned for Q4.

Byun Incho: 2분기 계리 과정 선진화는 크게 손해율과 사업비율로 나눠지는데요. 손해율 같은 경우에는 신규 담보에 대한 보수적인 적용, 그다음에 산출 단위의 세분화 등 영향으로 당사 입장에서는 CSM 감소 요인이었고, 반대로 사업비, 물가 상승률이나 원가 동인 변경 같은 경우에는 당사의 경우 물가 상승률을 일부 반영하고 있었던 상황인지라 이 부분에 대한 영향은 플러스 영향으로 발생했습니다.

Byun Incheol: 2분기 계리 과정 선진화는 크게 손해율과 사업비율로 나눠지는데요. 손해율 같은 경우에는 신규 담보에 대한 보수적인 적용, 그다음에 산출 단위의 세분화 등 영향으로 당사 입장에서는 CSM 감소 요인이었고, 반대로 사업비, 물가 상승률이나 원가 동인 변경 같은 경우에는 당사의 경우 물가 상승률을 일부 반영하고 있었던 상황인지라 이 부분에 대한 영향은 플러스 영향으로 발생했습니다.

Speaker #2: So In In The

Speaker #1: So, in terms of the changes to the assumptions, it can be divided into two parts: one on the loss ratio, the other on the expense assumptions for the loss assumption.

Sophia Foel: In terms of the changes to the actuarial assumptions, it can be divided into two parts. One on the loss ratio, the other on the expense assumption. For the loss ratio assumptions, conservative loss ratio assumptions are to be applied for newly introduced coverage, also certain type of renewable products as well. There have been more refined standards. This could potentially pressure our CSM, but on the expense assumption side, which stipulates that inflation-related assumption shall be reflected, we had already been doing that already. That will not be an impacting factor.

[Translator]: In terms of the changes to the actuarial assumptions, it can be divided into two parts. One on the loss ratio, the other on the expense assumption. For the loss ratio assumptions, conservative loss ratio assumptions are to be applied for newly introduced coverage, also certain type of renewable products as well. There have been more refined standards. This could potentially pressure our CSM, but on the expense assumption side, which stipulates that inflation-related assumption shall be reflected, we had already been doing that already. That will not be an impacting factor.

Speaker #1: Loss ratio assumptions—conservative loss ratio assumptions are to be applied for newly introduced coverages. Also, this applies to certain types of renewable products as well.

Speaker #1: So there have been more refined standards . This could potentially pressure our CSM , but on the expense assumption side , which stipulates that inflation related assumptions shall be reflected , we had already been doing that already , so that will not be an impacting factor

Byun Incho: 그리고 4분기 간편 담보에 대해서 90% 손해율을 반영하게 되면 일부 마이너스 요인은 있을 것으로 예상이 되고요. 다만, 당사의 어떤 효율들이 개선되고 있는 부분들이 있어서 그 영향은 2분기보다는 상당폭 줄어들 것으로 지금 전망하고 있습니다.

Byun Incheol: 그리고 4분기 간편 담보에 대해서 90% 손해율을 반영하게 되면 일부 마이너스 요인은 있을 것으로 예상이 되고요. 다만, 당사의 어떤 효율들이 개선되고 있는 부분들이 있어서 그 영향은 2분기보다는 상당폭 줄어들 것으로 지금 전망하고 있습니다.

Speaker #2: So In The

Speaker #1: And regarding the simplified coverage in the fourth quarter, where a loss ratio of 40 or 90% shall be applied, in that case it could act in part as a negative factor.

Sophia Foel: Regarding the simplified coverage in Q4, where a loss ratio of 90% shall be applied, in that case, that could act in part as a negative factor. But given how our efficiency metrics actually have been improving, the impact will be to a lesser extent in Q4 versus Q2.

[Translator]: Regarding the simplified coverage in Q4, where a loss ratio of 90% shall be applied, in that case, that could act in part as a negative factor. But given how our efficiency metrics actually have been improving, the impact will be to a lesser extent in Q4 versus Q2.

Speaker #1: But given how our efficiency metrics actually have been improving, the impact will be to a lesser extent in the fourth quarter versus the second quarter.

Byun Incho: 실질적으로 근본 손해율 쪽의 강화 조치가 당사의 실질 체력보다 약간 보수적인 측면이 있어서, 이러한 근본에 반영한 담보들에 대한 자기 통계를 사용하는 시점이 오면 이 부분이 회복되면서 당사의 플러스 요인으로 중장기적으로는 전망하고 있습니다. 이상입니다.

Byun Incheol: 실질적으로 근본 손해율 쪽의 강화 조치가 당사의 실질 체력보다 약간 보수적인 측면이 있어서, 이러한 근본에 반영한 담보들에 대한 자기 통계를 사용하는 시점이 오면 이 부분이 회복되면서 당사의 플러스 요인으로 중장기적으로는 전망하고 있습니다. 이상입니다.

Speaker #2: So The On

Speaker #1: So the tightening of the loss ratio related assumptions . Actually , are more on the conservative side relative to our underlying fundamentals . But with time , as the time of mortality approaches , for example , and the statistics are updated , we think in the mid to longer term , it shall actually serve as a plus factor for us

Sophia Foel: Tightening of the loss ratio related assumptions actually are more on the conservative side relative to our underlying fundamentals. But with time, as the time of mortality approaches, for example, and the statistics are updated, we think in the mid to longer term, it shall actually serve as a plus factor for us. Yes, this is from the channel marketing team. Let me answer about the impact to our new business results. For the H1, our new business CSM multiple is around 13 times. If the changed actuarial assumptions had been applied in January, it would have been lower by about 1.7 times. So it would actually be about 11.3 times.

[Translator]: Tightening of the loss ratio related assumptions actually are more on the conservative side relative to our underlying fundamentals. But with time, as the time of mortality approaches, for example, and the statistics are updated, we think in the mid to longer term, it shall actually serve as a plus factor for us. Yes, this is from the channel marketing team. Let me answer about the impact to our new business results. For the H1, our new business CSM multiple is around 13 times. If the changed actuarial assumptions had been applied in January, it would have been lower by about 1.7 times. So it would actually be about 11.3 times.

Speaker #2: To .

Speaker #1: Yes, this is from the channel marketing team. Let me ask you about the impact on our new business results.

Speaker #2: And Also The

Speaker #1: For the first half , our new business , CSM multiple is around 13 times . If the changed . Actuarial assumptions had been applied in January , it would have been lower by about 1.7 times .

Speaker #1: So, it would actually be about 11.3 times.

Speaker #2: The

Speaker #1: However , in the second half , as our CFO explained , we will . Focus very much on expanding sales of our high margin health related policies , as well as the traditional whole life products .

Sophia Foel: However, in the H2, as our CFO explained, we will focus very much on expanding sales of our high margining health-related policies as well as the traditional whole life products as we secure a stable inflow of new business CSM. So as of July, after factoring in the enhanced assumptions, we are still expecting to maintain new business CSM multiple of 13 times. We recorded KRW 1.7 trillion in the H1 in terms of new business CSM, and we will work hard to deliver above that in the H2.

[Translator]: However, in the H2, as our CFO explained, we will focus very much on expanding sales of our high margining health-related policies as well as the traditional whole life products as we secure a stable inflow of new business CSM. So as of July, after factoring in the enhanced assumptions, we are still expecting to maintain new business CSM multiple of 13 times. We recorded KRW 1.7 trillion in the H1 in terms of new business CSM, and we will work hard to deliver above that in the H2.

Speaker #1: As we secure a stable inflow of new business, CSM.

Speaker #2: CSM Will

Speaker #1: So, as of July, after factoring in the enhanced assumptions, we still managed. We are still expecting to maintain new business.

Speaker #1: CSM multiple of 13 times. We recorded 1.7 trillion in the first half in terms of new business CSM, and we will work hard to deliver above that in the second half.

Speaker #3: The following question will be presented by June from NH Investment & Securities. Please go ahead with your question.

Sun Kim: The following question will be presented by Junsup Jung from NH Investment & Securities. Please go ahead with your question.

Operator: The following question will be presented by Junsup Jung from NH Investment & Securities. Please go ahead with your question.

Speaker #5: An KDB in The Is In . You May Yeah . So M&A On The New Samsung Samsung

Speaker #1: Yes. First, I'd like to ask about your M&A or capital allocation strategy. I believe that initially you considered a potential acquisition of KDB Life, but then decided not to take part in the main bidding.

Sophia Foel: Yes. First I'd like to ask about your M&A or capital allocation strategy. I believe that initially you considered a potential acquisition of KDB Life, but then decided to not take part in the main bidding. What was the background to your initial interest, and why did you ultimately decide to drop out? Also, can you provide the overall strategy or directionality in terms of future M&A? What kind of sectors you may be looking at? What size, and what would be the expected financial impact? The M&A funding may actually lead to a decline in your KICS ratio. So what would be the maximum amount of spend that you will be willing to consider?

Junsup Jung: Yes. First I'd like to ask about your M&A or capital allocation strategy. I believe that initially you considered a potential acquisition of KDB Life, but then decided to not take part in the main bidding. What was the background to your initial interest, and why did you ultimately decide to drop out? Also, can you provide the overall strategy or directionality in terms of future M&A? What kind of sectors you may be looking at? What size, and what would be the expected financial impact? The M&A funding may actually lead to a decline in your KICS ratio. So what would be the maximum amount of spend that you will be willing to consider?

Speaker #1: So, what was the background to your initial interest, and why did you ultimately decide to drop out? Also, can you provide the overall strategy or directionality in terms of future M&A?

Speaker #1: What kind of sectors might you be looking at? What size, and what would be the expected financial impact? The M&A funding may actually lead to a decline in your KICS ratio.

Speaker #1: So what would be the maximum amount of spend that you will be willing to consider ? Second question is I think of course , thanks in part to your own effort , but also thanks to the rise in SEC share prices , you have seen your net asset value actually go up quite considerably .

Sophia Foel: Second question is, I think, of course, thanks in part to your own effort, but also thanks to the rise in SEC share prices, we have seen your net asset value actually go up quite considerably. If, of course, overall, we believe that share prices should continue to rise, but, if the movement actually goes in an unexpected direction for either yourself or Samsung Electronics, what would be the possibility that Samsung Life could be classified as a low PBR stock? What are your thoughts, and what kind of response measures do you have in place?

Junsup Jung: Second question is, I think, of course, thanks in part to your own effort, but also thanks to the rise in SEC share prices, we have seen your net asset value actually go up quite considerably. If, of course, overall, we believe that share prices should continue to rise, but, if the movement actually goes in an unexpected direction for either yourself or Samsung Electronics, what would be the possibility that Samsung Life could be classified as a low PBR stock? What are your thoughts, and what kind of response measures do you have in place?

Speaker #1: But if , of course , overall , we believe that share prices should continue to rise , but if the movement actually goes in a unexpected direction for either your self or Samsung Electronics , what would be the possibility that Samsung Life could be classified as a low PBR stock ?

Speaker #1: So, what are your thoughts, and then what kind of response measures do you have in place?

Wan-Sam Lee: CFO입니다. 먼저 KDB 인수 관련 배경과 그다음에 M&A 관련해서 말씀드리겠습니다.

Speaker #2: KDB M&A

Speaker #1: Yes , this is the CFO . Let me explain . The background to why we were looking at KDB . The acquisition and also more on our M&A strategy .

Sophia Foel: Yes, this is the CFO. Let me explain the background to why we were looking at KDB, the acquisition, and also more on our M&A strategy.

[Translator]: Yes, this is the CFO. Let me explain the background to why we were looking at KDB, the acquisition, and also more on our M&A strategy.

Speaker #2: KDB

Wan-Sam Lee: 먼저 KDB 인수 참여 배경과 미참여 배경에 대해서 구체적으로 설명드리기에는 공시 이슈가 있기 때문에 자세하게 말씀드리지 못하는 점 양해 부탁드리겠습니다.

Speaker #1: I must seek your kind understanding that, due to disclosure requirements, I am not able to share too much detail in terms of why we decided to at first join and then ultimately decided not to go ahead with the bidding.

Sophia Foel: I must seek your kind understanding that due to disclosure requirements, I am not able to share too much detail in terms of why we decided to at first join and then ultimately decided not to go ahead with the bidding.

[Translator]: I must seek your kind understanding that due to disclosure requirements, I am not able to share too much detail in terms of why we decided to at first join and then ultimately decided not to go ahead with the bidding.

Wan-Sam Lee: 간단하게 말씀드리면 저희가 채널 운영이라든지 상품 운영이라든지 자산 운영 관점에서 전략적인 시너지가 있을 것으로 예상을 하고 파악을 했으나, 그런 전략적 시너지 제고가 어렵다고 판단돼서 저희가 미참여했다는 걸 말씀드리겠습니다.

Speaker #2: So

Speaker #1: So initially, we felt that potentially there could be some strategic synergy with KDB in terms of overall channel operations, products, and also asset management as well.

Sophia Foel: Initially, we felt that potentially there could be some strategic synergy with KDB in terms of overall channel operations, products, and also asset management as well. But based on our assessment, we reached the conclusion that may not be practical or achievable, which is why we decided to drop out from the bidding.

[Translator]: Initially, we felt that potentially there could be some strategic synergy with KDB in terms of overall channel operations, products, and also asset management as well. But based on our assessment, we reached the conclusion that may not be practical or achievable, which is why we decided to drop out from the bidding.

Speaker #1: But based on our assessment, we reached the conclusion that that may not be practical or achievable, which is why we decided to drop out from the bidding.

Speaker #2: And So

Wan-Sam Lee: 그다음에 M&A 관련해서는 잘 아시다시피 국내 생명보험 시장의 성장의 한계를 극복하기 위해서 저희가 해외 사업을 적극적으로 추진하겠다고 말씀을 드린 바가 있습니다.

Speaker #1: So, regarding M&A, given the limitations to growth in the domestic life insurance market, we explained previously that we wanted to expand quite proactively into overseas markets.

Sophia Foel: Regarding M&A, given the limitations to growth in the domestic life insurance market, we explained previously that we wanted to expand quite proactively into the overseas markets.

[Translator]: Regarding M&A, given the limitations to growth in the domestic life insurance market, we explained previously that we wanted to expand quite proactively into the overseas markets.

Wan-Sam Lee: 좀 전에 말씀드린 바와 같이 저희가 지금 태국과 중국 사업의 이익 규모가 빠른 속도로 성장하고 있고, 그래서 이 시장에 대해서 조금 더 확대할 계획이고요. 이러한 경험을 바탕으로 해서 신규 M&A 기회를 적극적으로 모색하고 있습니다.

Speaker #2: So the M&A

Speaker #1: So, for our current overseas operations in Thailand and China, actually, we have seen very rapid growth in just the size of the earnings from those two markets.

Sophia Foel: For our current overseas operations in Thailand and China, actually, we have seen very rapid growth in just the size of the earnings from those two markets. We are planning expansion in those two markets. Building on that successful experience, we will seek out actively other promising M&A opportunities.

[Translator]: For our current overseas operations in Thailand and China, actually, we have seen very rapid growth in just the size of the earnings from those two markets. We are planning expansion in those two markets. Building on that successful experience, we will seek out actively other promising M&A opportunities.

Speaker #1: So we are planning expansion in those two markets. Then, building on that successful experience, we will actively seek out other promising M&A opportunities.

Speaker #2: Emerging markets in Asia, IT, M&A consulting has

Wan-Sam Lee: Emerging market인 아시아 시장과 더불어 미국과 같은 선진 시장에 대한 M&A 기회도 지금 적극적으로 모색을 하고 있고, 이를 적극적으로 추진하기 위해서 저희가 상반기에 외부 컨설팅을 활용해서 해외 사업 방향을 수립을 했고, 그거를 단계적으로 추진할 계획입니다.

Speaker #1: So we're looking beyond the emerging markets and the Asian market into advanced markets like the US as well, as we explore good M&A opportunities and move more proactively.

Sophia Foel: We are looking beyond the emerging market and the Asian market into advanced markets like the US as well as we explore good M&A opportunities. To move more proactively, we actually engaged in an outside consultancy in H1, and we established our overseas business strategy, and we will gradually be implementing that strategy in phases.

[Translator]: We are looking beyond the emerging market and the Asian market into advanced markets like the US as well as we explore good M&A opportunities. To move more proactively, we actually engaged in an outside consultancy in H1, and we established our overseas business strategy, and we will gradually be implementing that strategy in phases.

Speaker #1: We actually engaged in an outside consultancy in the first half. And we established our overseas business strategy. We will gradually be implementing that strategy in phases.

Wan-Sam Lee: 또한 당사는 보험사로서 ALM을 최우선으로 하되, 투자 이익 극대화를 위한 다양한 투자 기회를 찾고 있습니다. 대체 투자는 시장 상황을 상시 모니터링하고 수익성, 안정성을 종합적으로 고려해서 점진적으로 확대할 계획입니다. 이상입니다.

Speaker #2: Two. Two to six as.

Speaker #1: And as an insurance company, obviously, ARM remains our number one priority. But that being said, we also want to improve our investment returns as well.

Sophia Foel: As an insurance company, obviously, ALM remains our number one priority. That being said, we also want to maximize our investment returns as well. We are actively seeking out promising investment opportunity as well. For alternative investments in particular, we are examining very closely potential investments that are both safe and with good return profile as well. We will be implementing these investments in phases.

[Translator]: As an insurance company, obviously, ALM remains our number one priority. That being said, we also want to maximize our investment returns as well. We are actively seeking out promising investment opportunity as well. For alternative investments in particular, we are examining very closely potential investments that are both safe and with good return profile as well. We will be implementing these investments in phases.

Speaker #1: And we're actively seeking out promising investment opportunities as well. For alternative investments in particular, we are examining very closely potential investments that are both safe and have a good return profile as well.

Speaker #1: And we will be implementing these investments in phases.

Speaker #2: Yeah So To an M&A

Sun Kim: IR 팀장입니다. 우선 현재 알려진 기준으로 봤을 때, 저PBR 기업으로 우리가 분류될 가능성은 희박하고요. 이 제도를 떠나서 PBR 개선을 위해서 CFO께서 말씀하신 대로 주주 환원을 점진적으로 확대하고, 또 잉여 자본 활용한 M&A 및 신사업 확대를 전략적으로 추진할 계획입니다. 이상입니다.

Speaker #1: As this is the head of IR, regarding the likelihood that we may be classified as a low PBR stock, I believe the likelihood of that occurring is very weak, or thin at best.

Sophia Foel: Yes, this is the Head of IR. Regarding the likelihood that we may be classified as a low PBR stock, I believe the likelihood of that occurring is very weak or thin at best. But apart from the scheme itself, as our CFO has explained, we continue to work to improve our PBR by gradually increasing our shareholder return ratio, also using our excess capital to drive M&A or other new business opportunities.

[Translator]: Yes, this is the Head of IR. Regarding the likelihood that we may be classified as a low PBR stock, I believe the likelihood of that occurring is very weak or thin at best. But apart from the scheme itself, as our CFO has explained, we continue to work to improve our PBR by gradually increasing our shareholder return ratio, also using our excess capital to drive M&A or other new business opportunities.

Speaker #1: But apart from the scheme itself, as our CFO has said, we continue to work to improve our PBR by gradually increasing our shareholder return ratio.

Speaker #1: Also, using our excess capital to drive M&A or other new business opportunities.

Speaker #3: Tomorrow, in the Q2. The following question will be presented by Simeon Pak from Goldman Sachs. Please go ahead with your question.

Operator: 다음으로 질문해 주실 분은 골드만삭스의 박신영 님입니다.

Sophia Foel: The following question will be presented by Shin Young Park from Goldman Sachs. Please go ahead with your question.

[Translator]: The following question will be presented by Shin Young Park from Goldman Sachs. Please go ahead with your question.

Shin Young Park: 네, 안녕하세요. 질문 한 가지만 드리고 싶은데요. 저희 부사장님께서 계속 말씀주시는 게 경상이익 성장률 이상으로 주당 배당금을 확대를 해서 주주 환원에 적극적으로 기여를 해주시겠다, 이렇게 말씀을 여러 번 해주신 것 같은데요. 경상이익이라는 단어의 정의가 뭔지 조금만 더 상세한 설명을 같이 붙여주시면 큰 도움이 될 것 같습니다. 감사합니다.

Sinyoung Park: 네, 안녕하세요. 질문 한 가지만 드리고 싶은데요. 저희 부사장님께서 계속 말씀주시는 게 경상이익 성장률 이상으로 주당 배당금을 확대를 해서 주주 환원에 적극적으로 기여를 해주시겠다, 이렇게 말씀을 여러 번 해주신 것 같은데요. 경상이익이라는 단어의 정의가 뭔지 조금만 더 상세한 설명을 같이 붙여주시면 큰 도움이 될 것 같습니다. 감사합니다.

Speaker #6: Thank you to all. Your questions and comments on Simeon, thank you. Kamsahamnida.

Speaker #1: Oh yes . Thank you . I just have one question . I think the CFO has consistently said that the company will be improving the dividend per share at a growth rate above the growth for ordinary earnings or recurring earnings to broaden the shareholder returns .

Sophia Foel: Yes, thank you. I just have one question. I think the CFO has consistently said that the company will be improving the dividend per share at a growth rate above the growth for ordinary earnings or recurring earnings to broaden the shareholder returns. Could you explain the exact definition of what you mean by recurring or ordinary profit or ordinary earnings? That would be very helpful. Yes, this is the CFO. Thank you for the very good question. In terms of what do we mean by ordinary profits, I think everybody will pretty much have the same idea, but as an insurance company, it is fair to say it is normalized operating profit. Normalized means that any one-offs are removed. Basically, we are talking about operating profits. I know maybe there is a hidden question there.

[Translator]: Yes, thank you. I just have one question. I think the CFO has consistently said that the company will be improving the dividend per share at a growth rate above the growth for ordinary earnings or recurring earnings to broaden the shareholder returns. Could you explain the exact definition of what you mean by recurring or ordinary profit or ordinary earnings? That would be very helpful.

Speaker #1: So, could you explain the exact definition of what you mean by ordinary profit or ordinary earnings? That would be very helpful.

Speaker #2: Yeah

Wan-Sam Lee: Yes, this is the CFO. Thank you for the very good question. In terms of what do we mean by ordinary profits, I think everybody will pretty much have the same idea, but as an insurance company, it is fair to say it is normalized operating profit. Normalized means that any one-offs are removed. Basically, we are talking about operating profits. I know maybe there is a hidden question there.

Speaker #1: Yes, this is the CFO. Thank you for the very good question.

Speaker #2: We yes . In the

Speaker #1: So in terms of what do we mean by ordinary profits ? I think everybody will pretty much have the same idea . But as an insurance company , it's fair to say it's normalized operating profit .

Speaker #1: So, 'normalized' means that any one-offs are removed. So basically, we're talking about operating profits.

Speaker #2: And

Speaker #1: So I know maybe there's a hidden question on there . So I think everybody's interested in knowing whether any disposal gains on SEC shares will be included in the pool of funds available for distribution in relation to , you know , SEC special dividends or share cancellation , share buyback and cancellation .

Sophia Foel: I think everybody is interested in knowing whether any disposal gains on SEC shares will be included in the pool of funds available for distribution in relation to SEC special dividends or share buyback and cancellation. I will reiterate that all of those types of gains or proceeds will be included in the funds available for dividend distribution. Yes, thank you very much. As there are no further questions, we will now conclude our earnings call. Thank you very much.

Wan-Sam Lee: I think everybody is interested in knowing whether any disposal gains on SEC shares will be included in the pool of funds available for distribution in relation to SEC special dividends or share buyback and cancellation. I will reiterate that all of those types of gains or proceeds will be included in the funds available for dividend distribution. Yes, thank you very much. As there are no further questions, we will now conclude our earnings call. Thank you very much.

Speaker #1: I will reiterate that all of those types of gains or proceeds will be included in the funds available for dividend distribution. The Analyst: Yeah, thank you very much.

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Q2 2026 Samsung Life Insurance Co Ltd Earnings Call

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