| Insurance Contracts |
(1) |
Details of insurance contracts assets and insurance contracts liabilities are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuity/Savings
and others |
|
|
|
|
|
|
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Insurance contracts liabilities |
|
|
8,078,577 |
|
|
|
8,032,075 |
|
|
|
25,460,803 |
|
|
|
4,002,409 |
|
|
|
45,573,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts liabilities (asset) |
|
|
8,078,577 |
|
|
|
8,032,075 |
|
|
|
25,460,803 |
|
|
|
4,002,409 |
|
|
|
45,573,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Assumptions for current estimates of future cash flows and basis for calculation for the year ended December 31, 2025, are as follows: |
1) |
Tongyang Life Insurance Co., Ltd. |
|
|
|
|
|
|
|
|
|
|
Lapse ratio |
|
0% ~ 66.5% |
|
The ratio of surrender value to contract insurance premiums calculated by insurance type, payment method, channels, period of premium payments and durations computed based on experience statistics from the most recent 5 years as of June 30, 2025. |
|
|
|
Loss ratio |
|
7.1% ~ 774.9% |
|
The ratio of claims paid to risk premiums calculated by collateral, gender, channels and experience life table based on experience statistics from the most recent 5 years as of June 30, 2025. * For PYTREND and CHN, the most recent 5-year experience statistics are used and for Trend, the most 10-year experience statistics are used. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense ratio |
|
— |
|
The acquisition and operating expense ratio is calculated by channels and insurance type as a proportionate unit cost based on operating expenses spendings and experience statistics from the most recent year as of June 30, 2025. (recent 3 years for investment management cost) * Agent commission fees and sales promotion expenses are measured by policy duration based on the amounts expected to be actually incurred, in accordance with applicable regulations such as commission payment guidelines. * Depending on the characteristics of cost incurrence, cost drivers applied include converted results, the number of new and existing contracts, projected acquisition and operating expenses, insurance premiums, reserve funds and others. |
|
|
|
Discount rate |
|
3.53% ~ 4.20% |
|
A total of 1,000 interest rate scenarios were applied by estimating parameters that ensure consistency with market-traded assets, based on an adjusted risk-free interest rate term structure reflecting long-term forward rates and liquidity premiums. |
|
|
|
Confidence level of the risk adjustment for non-financial risk |
|
75% |
|
Under the assumption that probability distribution of present value of future cash flows as at each reporting date follows normal distribution, risk adjustment is calculated as the amount which 75th percentile exceeds the probability weighted average of present value of future cash flows. |
2) |
ABL Life Insurance Co., Ltd. |
|
|
|
|
|
|
|
|
|
|
Lapse ratio |
|
0% ~ 61% |
|
The ratio of surrender value to contract insurance premiums calculated by interest level, insurance type, payment method, channels, level of surrender value of insurance contracts, period of premium payments and durations computed based on experience statistics from the most recent 5 years as of June 30, 2025. * Lapse rates for insurance with non-surrender value or low-surrender value are determined in accordance with the Actuarial Standard of Practice on the calculation and application of actuarial assumptions. |
|
|
|
Loss ratio |
|
5% ~ 1,314% |
|
The ratio of claims paid to risk premiums calculated by collateral, gender, age, channels, experience life table and others based on experience statistics from the most recent 5 years as of June 30, 2025. * Determined in accordance with the Actuarial Standard of Practice on the calculation and application of actuarial assumptions. *The claims paid are based on the statistics of the 5 years preceding the occurrence of the accident and are determined by taking into account the progress rate of the incurred but not reported losses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense ratio |
|
— |
|
The acquisition and operating expense ratio is calculated as a proportionate unit cost of initial premium, converted results, the number of contracts, premium, claim payments, reserve funds, policy loans and others based on experience statistics from the most recent years and business plan, the company’s future expense cost reflected. * Statistics period: applying 1-year for contract execution expense, contract maintenance expense, claims handling cost and investment management cost, and 3-year for investment management cost of policy loans. |
|
|
|
Discount rate |
|
(4.57)% ~ 26.06% |
|
By estimating the parameter that is consistent with assets traded in the market, apply 1,000 interest rate scenarios to the adjusted risk-free term structure of interest rates, which incorporates the long-term forward rate and liquidity premium. |
|
|
|
Confidence level of the risk adjustment for non-financial risk |
|
75% |
|
Under the assumption that probability distribution of present value of future cash flows as at each reporting date follows normal distribution, calculate risk adjustment as the amount which 75th percentile exceeds the probability weighted average of present value of future cash flows. |
| (3) |
Changes in liabilities for remaining coverage and liabilities for claims incurred within insurance contracts liabilities for the year ended December 31, 2025, are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
(asset) for
incurred claims |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Beginning balance |
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Insurance contracts liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts
liabilities (asset) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase due to business combinations |
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Insurance contracts liabilities |
|
|
44,945,543 |
|
|
|
121 |
|
|
|
2,121,606 |
|
|
|
47,067,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts
liabilities (asset) |
|
|
44,945,543 |
|
|
|
121 |
|
|
|
2,121,606 |
|
|
|
47,067,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance income |
|
Insurance contracts under
conversion |
|
|
(1,005,778 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,005,778 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
(1,005,778 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,005,778 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance service expense |
|
Insurance expenses and
insurance service
expenses incurred |
|
|
6,922 |
|
|
|
(288 |
) |
|
|
689,745 |
|
|
|
696,379 |
|
|
|
Amortization of insurance
acquisition cash flows |
|
|
148,980 |
|
|
|
— |
|
|
|
— |
|
|
|
148,980 |
|
|
|
Changes in liability for
incurred claims |
|
|
— |
|
|
|
— |
|
|
|
23,777 |
|
|
|
23,777 |
|
|
|
Reversal of loss components |
|
|
— |
|
|
|
32,478 |
|
|
|
— |
|
|
|
32,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
155,902 |
|
|
|
32,190 |
|
|
|
713,522 |
|
|
|
901,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance service result |
|
|
(849,876 |
) |
|
|
32,190 |
|
|
|
713,522 |
|
|
|
(104,164 |
) |
|
|
|
|
|
|
| Insurance finance interest income and other insurance finance income |
|
Net income |
|
|
1,093,463 |
|
|
|
63 |
|
|
|
38,709 |
|
|
|
1,132,235 |
|
|
|
Other comprehensive
income |
|
|
(2,395,497 |
) |
|
|
— |
|
|
|
(379 |
) |
|
|
(2,395,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
(1,302,034 |
) |
|
|
63 |
|
|
|
38,330 |
|
|
|
(1,263,641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Changes in net income, other comprehensive income and insurance service result |
|
|
(2,151,910 |
) |
|
|
32,253 |
|
|
|
751,852 |
|
|
|
(1,367,805 |
) |
|
|
|
|
|
| Investment components excluded from insurance service result and insurance finance income |
|
|
(2,308,250 |
) |
|
|
— |
|
|
|
2,308,250 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
(asset) for
incurred claims |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flow |
|
Premium received |
|
|
3,496,221 |
|
|
|
— |
|
|
|
— |
|
|
|
3,496,221 |
|
|
|
Insurance acquisition cash
flow |
|
|
(649,882 |
) |
|
|
— |
|
|
|
— |
|
|
|
(649,882 |
) |
|
|
Claims and other insurance
service expenses paid
including investment
components |
|
|
(60,533 |
) |
|
|
— |
|
|
|
(2,920,102 |
) |
|
|
(2,980,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
2,785,806 |
|
|
|
— |
|
|
|
(2,920,102 |
) |
|
|
(134,296 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other increase (decrease) |
|
|
(738 |
) |
|
|
88 |
|
|
|
9,345 |
|
|
|
8,695 |
|
| Ending balance |
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Insurance contracts liabilities |
|
|
43,270,451 |
|
|
|
32,462 |
|
|
|
2,270,951 |
|
|
|
45,573,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts
liabilities (asset) |
|
|
43,270,451 |
|
|
|
32,462 |
|
|
|
2,270,951 |
|
|
|
45,573,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (4) |
Changes in the estimate of the present value of the future cash flows, risk adjustment for non-financial risk and contractual service margin for the year ended December 31, 2025, are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
Estimate of the
present value of
future cash
flows |
|
|
Risk adjustment for non-financial risk |
|
|
Insurance
contracts under
conversion |
|
|
|
|
| Beginning balance |
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Insurance contracts liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts
liabilities (asset) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase due to business combinations |
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Insurance contracts liabilities |
|
|
42,710,666 |
|
|
|
773,337 |
|
|
|
3,583,267 |
|
|
|
47,067,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts
liabilities (asset) |
|
|
42,710,666 |
|
|
|
773,337 |
|
|
|
3,583,267 |
|
|
|
47,067,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes related to current service |
|
Amortization of contractual
service margin |
|
|
— |
|
|
|
— |
|
|
|
(154,187 |
) |
|
|
(154,187 |
) |
|
|
Changes in risk adjustment
for non-financial risk |
|
|
— |
|
|
|
(26,471 |
) |
|
|
— |
|
|
|
(26,471 |
) |
|
|
Experience adjustments |
|
|
20,234 |
|
|
|
5 |
|
|
|
— |
|
|
|
20,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
20,234 |
|
|
|
(26,466 |
) |
|
|
(154,187 |
) |
|
|
(160,419 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes related to future service |
|
Change in estimate adjusting
contractual service margin |
|
|
936,116 |
|
|
|
(30,014 |
) |
|
|
(906,102 |
) |
|
|
— |
|
|
|
Change in estimate adjusting
losses (reversal) of group
of onerous contracts |
|
|
53,294 |
|
|
|
(28,990 |
) |
|
|
— |
|
|
|
24,304 |
|
|
|
Effect of initially recognized
contracts |
|
|
(488,210 |
) |
|
|
49,342 |
|
|
|
447,042 |
|
|
|
8,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
501,200 |
|
|
|
(9,662 |
) |
|
|
(459,060 |
) |
|
|
32,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
Estimate of the
present value of
future cash
flows |
|
|
Risk adjustment for non-financial risk |
|
|
Insurance
contracts under
conversion |
|
|
|
|
| Changes related to past service |
|
Changes in liability for
incurred claims |
|
|
22,770 |
|
|
|
1,007 |
|
|
|
— |
|
|
|
23,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
22,770 |
|
|
|
1,007 |
|
|
|
— |
|
|
|
23,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance service result |
|
|
544,204 |
|
|
|
(35,121 |
) |
|
|
(613,247 |
) |
|
|
(104,164 |
) |
|
|
|
|
|
|
| Insurance finance interest income and other insurance finance income |
|
Net income |
|
|
1,059,968 |
|
|
|
8,724 |
|
|
|
63,543 |
|
|
|
1,132,235 |
|
|
|
Other comprehensive
income |
|
|
(2,397,918 |
) |
|
|
2,042 |
|
|
|
— |
|
|
|
(2,395,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
(1,337,950 |
) |
|
|
10,766 |
|
|
|
63,543 |
|
|
|
(1,263,641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Changes in net income, other comprehensive income and insurance service result |
|
|
(793,746 |
) |
|
|
(24,355 |
) |
|
|
(549,704 |
) |
|
|
(1,367,805 |
) |
|
|
|
|
|
|
| Cash flow |
|
Premium received |
|
|
3,496,221 |
|
|
|
— |
|
|
|
— |
|
|
|
3,496,221 |
|
|
|
Insurance acquisition cash
flow |
|
|
(649,882 |
) |
|
|
— |
|
|
|
— |
|
|
|
(649,882 |
) |
|
|
Claims and other insurance
service expenses paid
including investment
components |
|
|
(2,980,630 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(2,980,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
|
|
(134,291 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(134,296 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other increase (decrease) |
|
|
8,695 |
|
|
|
— |
|
|
|
— |
|
|
|
8,695 |
|
|
|
|
|
|
|
| Ending balance |
|
Insurance contracts assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Insurance contracts liabilities |
|
|
41,791,324 |
|
|
|
748,977 |
|
|
|
3,033,563 |
|
|
|
45,573,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net insurance contracts
liabilities (asset) |
|
|
41,791,324 |
|
|
|
748,977 |
|
|
|
3,033,563 |
|
|
|
45,573,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (5) |
The effect on the consolidated statement of financial position at the time of initial recognition of new insurance contracts for the year ended December 31, 2025 is as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
The estimates of the
present value of future cash
outflows |
|
|
The estimates
of the present
value of
future cash
inflows |
|
|
Risk
adjustment
for non-
financial
risk |
|
|
|
|
|
|
|
|
Loss at
initial
recognition |
|
| |
|
|
|
Insurance
acquisition
cash flow |
|
|
Insurance
expenses and
insurance |
|
| Initial recognition of new insurance contracts (*1) |
|
Non-onerous
contracts |
|
|
608,795 |
|
|
|
3,444,352 |
|
|
|
(4,546,284 |
) |
|
|
46,095 |
|
|
|
447,042 |
|
|
|
— |
|
|
|
— |
|
| |
Onerous
contracts |
|
|
46,026 |
|
|
|
227,758 |
|
|
|
(268,857 |
) |
|
|
3,247 |
|
|
|
— |
|
|
|
8,174 |
|
|
|
8,174 |
|
| Sub-total |
|
|
654,821 |
|
|
|
3,672,110 |
|
|
|
(4,815,141 |
) |
|
|
49,342 |
|
|
|
447,042 |
|
|
|
8,174 |
|
|
|
8,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Business Combination |
|
|
630,150 |
|
|
|
101,042,991 |
|
|
|
(58,962,475 |
) |
|
|
773,337 |
|
|
|
3,583,267 |
|
|
|
47,067,270 |
|
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
1,284,971 |
|
|
|
104,715,101 |
|
|
|
(63,777,616 |
) |
|
|
822,679 |
|
|
|
4,030,309 |
|
|
|
47,075,444 |
|
|
|
8,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
There are no insurance contracts acquired in a transfer. |
| (6) |
Expected amounts of insurance revenue to be recognized in profit or loss by the anticipated amortization period of the contractual service margin (CSM) for insurance contracts as of December 31, 2025, are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2025 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life |
|
|
30,628 |
|
|
|
28,920 |
|
|
|
28,431 |
|
|
|
28,613 |
|
|
|
28,616 |
|
|
|
131,482 |
|
|
|
222,769 |
|
|
|
180,182 |
|
|
|
275,902 |
|
|
|
955,543 |
|
| Health |
|
|
78,792 |
|
|
|
70,989 |
|
|
|
62,633 |
|
|
|
57,086 |
|
|
|
52,756 |
|
|
|
213,953 |
|
|
|
331,027 |
|
|
|
259,354 |
|
|
|
397,794 |
|
|
|
1,524,384 |
|
| Annuity/Savings and others |
|
|
46,266 |
|
|
|
41,112 |
|
|
|
37,263 |
|
|
|
33,865 |
|
|
|
29,973 |
|
|
|
104,470 |
|
|
|
76,944 |
|
|
|
29,301 |
|
|
|
17,550 |
|
|
|
416,744 |
|
| Variable |
|
|
16,368 |
|
|
|
14,377 |
|
|
|
12,600 |
|
|
|
10,898 |
|
|
|
9,375 |
|
|
|
31,108 |
|
|
|
27,175 |
|
|
|
9,890 |
|
|
|
5,101 |
|
|
|
136,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
172,054 |
|
|
|
155,398 |
|
|
|
140,927 |
|
|
|
130,462 |
|
|
|
120,720 |
|
|
|
481,013 |
|
|
|
657,915 |
|
|
|
478,727 |
|
|
|
696,347 |
|
|
|
3,033,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (7) |
Details and fair value of underlying assets of participating insurance contracts as of December 31, 2025, are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
| |
|
|
|
| Cash and deposits |
|
|
257,847 |
|
| Securities |
|
|
2,594,648 |
|
| Other assets |
|
|
75,383 |
|
|
|
|
|
|
| Total |
|
|
2,927,878 |
|
|
|
|
|
|
| (8) |
Amount related to time value of money related to risk mitigation for participating insurance contracts, financial risks allocated and changes in fulfillment cash flows that are not recognized as contractual service margin as of December 31, 2025, is as follows (Unit: Korean Won in millions): |
|
|
|
|
|
| |
|
|
|
| Not recognized as contractual service margin |
|
|
50,448 |
|
| (9) |
No amounts from the valuation of financial assets at FVTOCI relate to the insurance contracts under the fair value approach or conversion of the modified retrospective approach. |
|