SHG 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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FORM 6-K

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REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of March 2026

Commission File Number: 001-31798

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SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant's name into English)

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20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(Address of principal executive offices)

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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  Form 40-F 

Submission of Audit Report (Shinhan Life)

On March 3, 2026, Shinhan Financial Group disclosed audit reports of Shinhan Life, its wholly-owned subsidiary, for the fiscal year 2025 based on the International Financial Reporting Standards as adopted by the Republic of Korea.

The financial statements with external auditor's report are not yet approved by stockholder's meeting approval process, thus contents are subjected to be changed in the due course of the approval process

Please refer to Exhibit 99.1 and 99.2 for Independent Auditor’s Reports on consolidated and separate financial statements.

Exhibit 99.1 : Independent Consolidated Auditor’s Report of Shinhan Life as of December 31, 2025

Exhibit 99.2 : Independent Separate Auditor’s Report of Shinhan Life as of December 31, 2025

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

				Shinhan Financial Group Co., Ltd.
				(Registrant)
Date: March 03, 2026				By:		/s/ JANG Jeong Hoon
				Name: JANG Jeong Hoon
				Title: Chief Financial Officer

EX-99.1

SHINHAN LIFE INSURANCE CO., LTD.

AND SUBSIDIARIES

Consolidated Financial Statements

December 31, 2025 and 2024

(With Independent Auditors’ Report Thereon)

Contents

		Page
Independent Auditors' Report		1
Consolidated Statements of Financial Position		3
Consolidated Statements of Comprehensive Income		5
Consolidated Statements of Changes in Equity		7
Consolidated Statements of Cash Flows		9
Notes to the Consolidated Financial Statements		10

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Financial Position (Continued)

As of December 31, 2025 and 2024

Independent Auditors’ Report

(Based on a report originally issued in Korean)

To the Board of Directors and Shareholder

Shinhan Life Insurance Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Shinhan Life Insurance Co., Ltd. and its subsidiaries (the “Group”), which comprise the consolidated statements of financial position as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“KSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

KPMG Samjong Accounting Corp.

March 3, 2026

Seoul, Korea

This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Financial Position

As of December 31, 2025 and 2024

(In millions of Korean won)		Note		December 31,<br><br>2025		December 31, 2024		January 1, 2024
Assets
Cash and due from banks at amortized cost		5,8,9,11,24,50,52	W	2,538,228		1,695,328		1,838,006
Financial assets at fair value through profit or loss		5,8,9,12,24,50		12,747,883		11,233,117		11,127,310
Securities at fair value through<br><br>other comprehensive income		5,8,9,13,24,50		35,710,318		38,023,907		35,674,980
Securities at amortized cost		5,8,9,14,24		3,958,459		3,937,616		4,348,023
Investments in associates		15		39,474		27,462		25,956
Loans and receivables at amortized cost		5,8,9,16,50		3,567,948		4,031,434		4,775,933
Reinsurance contract assets		6,26		494,226		107,668		62,815
Right-of-use assets		17,50		75,440		90,242		97,606
Property and equipment		18,50		137,813		108,775		90,359
Intangible assets		19,50		193,637		232,736		257,771
Derivative assets		5,8,9,22,50		40,023		117,522		122,465
Current tax assets		48,50		6,531		82,811		71,169
Deferred tax assets		48		37		1,680		88
Investment property		21,24		13,973		14,185		14,397
Net defined benefit assets		31		4,868		16,334		34,796
Other assets		23		132,647		122,451		99,671
Total assets			W	59,661,505		59,843,268		58,641,345

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Financial Position (Continued)

As of December 31, 2025 and 2024

(In millions of Korean won)		Note		December 31,<br><br>2025		December 31, 2024		January 1, 2024
Liabilities
Insurance contract liabilities for:
Participating insurance contracts			W	5,089,927		5,318,700		4,909,601
Non-participating insurance contracts				37,008,627		38,131,434		35,398,989
Variable insurance contracts				5,814,380		4,970,854		5,225,397
		6,25		47,912,934		48,420,988		45,533,987
Reinsurance contract liabilities		6,26		56,378		98,058		93,120
Investment contract liabilities		5,8,9,27,50		1,541,684		1,332,468		1,831,826
Derivative liabilities		5,8,9,22,50		937,659		556,370		240,771
Borrowings		5,8,9,28,50		32,366		23,543		17,835
Debentures		5,8,9,29		798,392		299,487		299,331
Other financial liabilities		5,8,9,30,33,50		697,904		499,809		267,901
Lease liabilities		5,8,9,17,50		77,999		93,923		101,294
Net defined benefit liabilities		31		1,186		1,307		2,336
Provisions		32		107,503		75,720		79,572
Current tax liabilities		45,50		14,029		4,248		55
Deferred tax liabilities		48		1,154,828		1,268,690		1,645,089
Other liabilities		33		122,245		127,956		105,848
Total liabilities				53,455,107		52,802,567		50,218,965
Equity
Capital stocks		34		578,274		578,274		578,274
Hybrid bonds		34		-		299,452		299,452
Capital surplus		34		820,012		820,012		820,012
Capital adjustments		34		891		1,461		1,461
Accumulated other comprehensive income (loss)		34		(2,116,963)		(1,459,913)		123,984
Retained earnings		34		6,924,184		6,801,415		6,599,197
Total equity				6,206,398		7,040,701		8,422,380
Total liabilities and equity			W	59,661,505		59,843,268		58,641,345

See accompanying notes to the consolidated financial statements.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)		Note		2025		2024
Insurance revenue		25,36	W	3,080,971		2,857,315
Reinsurance revenue		26,37		164,353		52,963
Insurance service expenses		25,36,39,50		2,299,752		2,084,961
Reinsurance service expenses		26,37		150,275		57,843
Other operating expenses		39		100,362		114,718
Insurance service result				694,935		652,756
Insurance finance income and investment income:
Insurance finance income from insurance contracts issued		25,38		204,421		397,712
Insurance finance income from reinsurance contracts held		26,38		68,751		24,101
Interest income		9,41,50		1,501,740		1,546,978
Gains on financial assets at fair value<br><br>through profit or loss		9,12		1,925,142		991,852
Gains on disposal of securities at fair value through other comprehensive income		9,13		81,508		79,735
Gains on securities at amortized cost		9,14		17,064		22,284
Gains on disposal of loans at amortized cost		9,12		4,058		103
Reversal of credit loss allowance		42,50		14,126		10,117
Gains on foreign currency transaction		43		267,837		714,920
Gains on derivatives		22,50		185,350		66,441
Dividend income		9,45		37,774		32,510
Fees and commission income		44,50		9,469		12,273
Other investment income		46,50		254,250		235,070
				4,571,490		4,134,096
Insurance finance expenses and investment expenses:
Insurance finance expenses from insurance contracts issued		25,38		2,990,529		2,103,212
Insurance finance expenses from reinsurance contracts held		26,38		57,872		24,045
Interest expenses		9,41,50		67,403		78,726
Losses on financial assets at fair value<br><br>through profit or loss		9,12,50		258,583		630,361
Losses on disposal of securities at fair value through other comprehensive income		9,13		64,118		96,475
Losses on securities at amortized cost		9,14		6,070		565
Losses on disposal of loans at amortized cost		9		622		426
Provision for credit loss allowance		42,50		18,987		16,347
Losses on foreign currency transaction		43		145,240		12,497
Losses on derivatives		22,50		471,242		752,884
Investment administrative expenses		40,50		22,123		19,649
Other investment expenses		46,50		371,648		326,583
				4,474,437		4,061,770
Net finance result				97,053		72,326
(In millions of Korean won, except per share data)		Note		2025		2024
---	---	---	---	---	---	---

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Continued)

For the years ended December 31, 2025 and 2024

Operating profit			W	791,988		725,082
Non-operating expenses		47		(1,446)		(2,747)
Equity in net income (loss) of associated companies		15		(2,428)		(893)
Profit before income taxes				788,114		721,442
Income tax expense		48		280,406		193,041
Profit for the period				507,708		528,401
Other comprehensive income (loss) for the period, net of income tax
Items that may be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at<br><br>fair value through other comprehensive income				(1,476,892)		730,417
Foreign currency translation adjustments for foreign operations				(3,716)		7,254
Gains (losses) on valuation of derivatives held for cash flow hedges				(300,075)		45,219
Net finance income (expenses) from insurance contracts issued				1,279,473		(2,353,449)
Net finance expenses from reinsurance contracts held				(153,671)		(1,544)
				(654,881)		(1,572,103)
Items that will not be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				(620)		849
Remeasurements of defined benefit liabilities				(1,549)		(12,683)
				(2,169)		(11,834)
Total other comprehensive loss, net of income tax		13,22,34		(657,050)		(1,583,937)
Total comprehensive loss for the period			W	(149,342)		(1,055,536)
Profit attributable to:
Equity holders of Shinhan Life Insurance Co., Ltd.				507,708		528,401
			W	507,708		528,401
Total comprehensive loss attributable to:
Equity holders of Shinhan Life Insurance Co., Ltd.				(149,342)		(1,055,536)
			W	(149,342)		(1,055,536)
Earnings per share:
Basic earnings per share and diluted earnings per share in won		51	W	4,333		4,475

See accompanying notes to the consolidated financial statements

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries
		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2024 before the change	W	578,274		299,452		820,012		1,461		124,738		6,599,197		8,423,134
Effects of changes in accounting policies		-		-		-		-		(754)		-		(754)
Balance at January 1, 2024 after the change		578,274		299,452		820,012		1,461		123,984		6,599,197		8,422,380
Total comprehensive income for the period:
Profit for the period		-		-		-		-		-		528,401		528,401
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income		-		-		-		-		731,265		-		731,265
Foreign currency translation adjustments for foreign operations		-		-		-		-		7,254		-		7,254
Gains on valuation of derivatives intended for cash flow hedges		-		-		-		-		45,219		-		45,219
Net finance expenses from insurance contracts issued		-		-		-		-		(2,353,449)		-		(2,353,449)
Net finance expenses from reinsurance contracts held		-		-		-		-		(1,544)		-		(1,544)
Remeasurement of defined benefit plans		-		-		-		-		(12,683)		-		(12,683)
Total other comprehensive income		-		-		-		-		(1,583,938)		-		(1,583,938)
Other changes in equity
Dividends		-		-		-		-		-		(165,338)		(165,338)
Interim dividend		-		-		-		-		-		(150,004)		(150,004)
Interest expenses on hybrid bonds		-		-		-		-		-		(10,800)		(10,800)
Reclassification adjustments from other comprehensive income to retained earnings		-		-		-		-		41		(41)		-
Balance at December 31, 2024	W	578,274		299,452		820,012		1,461		(1,459,913)		6,801,415		7,040,701

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity (Continued)

For the years ended December 31, 2025 and 2024

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity (Continued)

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries
		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2025	W	578,274		299,452		820,012		1,461		(1,459,913)		6,801,415		7,040,701
Total comprehensive income for the period:
Profit for the period		-		-		-		-		-		507,708		507,708
Other comprehensive income, net of income tax:
Losses on valuation of securities at fair value through other comprehensive income		-		-		-		-		(1,477,512)		-		(1,477,512)
Foreign currency translation adjustments for foreign operations		-		-		-		-		(3,716)		-		(3,716)
Losses on valuation of derivatives intended for cash flow hedges		-		-		-		-		(300,075)		-		(300,075)
Net finance income from insurance contracts issued		-		-		-		-		1,279,473		-		1,279,473
Net finance expenses from reinsurance contracts held		-		-		-		-		(153,671)		-		(153,671)
Remeasurement of defined benefit plans		-		-		-		-		(1,549)		-		(1,549)
Total other comprehensive income		-		-		-		-		(657,050)		-		(657,050)
Other changes in equity
Dividends		-		-		-		-		-		(378,307)		(378,307)
Share-based payments		-		-		-		(22)		-		-		(22)
Redemption of hybrid bonds		-		(299,452)		-		(548)		-		-		(300,000)
Interest expenses on hybrid bonds		-		-		-		-		-		(6,632)		(6,632)
Balance at December 31, 2025	W	578,274		-		820,012		891		(2,116,963)		6,924,184		6,206,398

See accompanying notes to the consolidated financial statements

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		2025		2024
Cash flows from operating activities
Profit for the period	W	507,708		528,401
Adjustment for profit or loss (Note 53)		(119,575)		(386,856)
Changes in assets and liabilities (Note 53)		(79,362)		(827,321)
Income tax paid		(26,209)		(11,807)
Interest received		1,047,421		1,049,194
Interest paid		(26,653)		(18,531)
Dividends received		36,045		37,647
Net cash inflow from operating activities		1,339,375		370,727
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss		896,239		1,812,962
Acquisition of financial assets at fair value through profit or loss		(1,726,970)		(1,629,576)
Disposal of securities at fair value<br><br>through other comprehensive income		5,149,353		4,165,220
Acquisition of securities at fair value through<br><br>other comprehensive income		(4,352,098)		(4,741,638)
Disposal of securities at amortized cost		-		407,544
Acquisition of securities at amortized cost		(2,655)		(5,460)
Acquisition of investments in associates		(14,440)		(2,400)
Cash inflows from hedging activities		3,184		4,326
Cash outflows from hedging activities		(172,226)		(114,772)
Disposal of property and equipment		33		162
Acquisition of property and equipment		(49,353)		(42,209)
Disposal of intangible assets		958		51
Acquisition of intangible assets		(40,928)		(54,963)
Decrease in receivables at amortized cost		6,893		8,887
Increase in receivables at amortized cost		(11,763)		(7,765)
Net cash outflow from investing activities		(313,773)		(199,631)
Cash flows from financing activities
Increase in non-controlling interests		7,238		3,909
Issuance of debentures		498,594		-
Decrease in other financial liabilities		-		(502)
Increase in other financial liabilities		37		983
Decrease in lease liabilities		(36,225)		(36,043)
Dividends paid		(378,307)		(315,343)
Redemption of hybrid bonds		(300,000)		-
Interest paid to hybrid bonds		(8,130)		(10,800)
Net cash outflow from financing activities		(216,793)		(357,796)
Net increase (decrease) in cash and cash equivalents		808,809		(186,700)
Changes in cash and cash equivalents due to<br><br>foreign currency translation		1,751		2,622
Cash and cash equivalents at the beginning of the period		829,999		1,014,077
Cash and cash equivalents at the end of the period	W	1,640,559		829,999

See accompanying notes to the consolidated financial statements.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As of and for the years ended December 31, 2025 and 2024

1. Reporting entity

Shinhan Life Insurance Co., Ltd., the controlling company, and its subsidiaries included in the consolidation (collectively the “Group”) are summarized as follows:

(a) Controlling company

Shinhan Life Insurance Co., Ltd., (the “Company” or the “Controlling Company”) was established in January, 1990, which is located at 358 Samil-daero, Jung-gu, Seoul and operates the life insurance business. The Group operates through 237 domestic branches, and Shinhan Financial Group Co., Ltd. owns 100% of the Group's stock. Meanwhile, the Group has merged with Orange Life Insurance Co., Ltd. on July 1, 2021 in accordance with the resolution of the general shareholder's meeting on December 23, 2020, and has changed its name to Shinhan Life Insurance Co., Ltd.

(b) Consolidated subsidiaries

Ownership of Shinhan Life Insurance Co., Ltd. and its major consolidated subsidiaries as of December 31, 2025 and 2024, are as follows:

				Reporting month of the financial statements		Industry		Ownership (%)
Subsidiaries		Location								December 31,<br><br>2025		December 31, 2024
Shinhan Financial Plus Co., Ltd		Korea		December		Service		100.00		100.00
Shinhan Life Insurance Vietnam Co., Ltd.		Vietnam		〃		Life Insurance		100.00		100.00
Shinhan LifeCare Co., Ltd.(*)		Korea		〃		Service		100.00		100.00

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Contined)

As of and for the years ended December 31, 2025 and 2024

1. Reporting entity (continued)

(c) Consolidated structured entities

Consolidated structured entities as of December 31, 2025 and 2024, are as follows:

Structured entities	Location		Reporting month of the financial statements		Ownership (%)
								December 31,<br><br>2025		December 31, 2024
Mirae Asset Maps Global Infra Private Special Asset Trust 2	Korea		December		95.89		95.89
Shinhan AIM Credit Fund 3	Korea		December		99.90		99.90
Shinhan AIM Private fund of funds Trust 7-A	Korea		December		99.58		99.58
Shinhan AIM Private fund of funds Trust 6-B	Korea		December		99.80		99.80
Shinhan AIM Private fund of funds Trust 5	Korea		December		99.88		99.88
KB Global Private Real Estate Debt Fund 23	Korea		December		99.40		99.40
KB Global Private Real Estate Debt Fund 21	Korea		December		99.53		99.53
Shinhan KKR Global Program REC General Private Equity Investment Trust	Korea		December		93.02		93.02
Shinhan KKR Global Program PEF General Private Equity Trust	Korea		December		93.02		93.02
Shinhan KKR Global Program PDF Private Investment Trust	Korea		December		93.02		93.02
Shinhan LCP X Private Investment Trust No.4(H)	Korea		December		99.75		99.75
Pinestreet BDC Global Corporate FoF 38	Korea		December		99.83		-
Pinestreet IG Global Corporate FoF 39	Korea		December		99.90		-
Shinhan BDC OClC Private investment Trust No.1 (H)	Korea		December		99.96		-
Shinhan SLAMS TPA Private Fund	Korea		December		99.70		-
Shinhan Apollo SFG Private Investment Trust No.1()	Korea		December		99.91		-
Apollo SFG IG Short Duration Fund, L.P. (*)	Cayman Islands		December		100.00		-
Shinhan BDC OCIC Private Investment Trust No.2(H)	Korea		December		99.77		-
Shinhan Apollo ADS Private Investment Trust No.1(H)	Korea		December		99.77		-

All values are in US Dollars.

(*) It is held through Shinhan Apollo SFG Private Investment Trust No.1(USD).

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

2. Basis of preparation

(a) Statement of compliance

The accompanying consolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“Korean IFRS” or “K-IFRS”), as prescribed in the Article 5(1)1 of Act on External Audit of Stock Companies.

(b) Date of authorization

The consolidated financial statements of the Group were authorized for issue by the Board of Directors on February 5, 2026, and the consolidated financial statements will be submitted for the final approval to the shareholder’s meeting on March 26, 2026.

(c) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statement of financial position:

• derivative financial instruments measured at fair value
• financial instruments at fair value through profit or loss measured at fair value
• securities at fair value through other comprehensive income measured at fair value
• liabilities for cash-settled share-based payment arrangements measured at fair value
• net defined benefit liability (asset) recognized at the net of the present value of defined benefit obligations less the fair value of plan assets
• insurance and reinsurance contract assets and liabilities measured at the fulfilment cash flows

(d) Functional and presentation currency

The respective financial statements of the Group entities are prepared in the functional currency of the respective economic environment in which the Group entities operate. The consolidated financial statements of the Group are presented and reported in won, which is the controlling company’s functional currency and the presentation currency.

(e) Use of estimates and judgements

The preparation of the consolidated financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. If the estimates and assumptions based on management's best judgment as of December 31, 2025 are different from the actual environment, these estimates and actual results may be different.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

i) Uncertainty in assumptions and estimates

Accounting estimates and assumptions that include significant risks that may incur significant adjustments to the carrying amounts of assets and liabilities accounted for as of the end of the reporting period are as follows and are disclosed in Notes 10.

• Fair value of financial instruments
• Provision for credit loss and allowance for unused credit commitments
• Impairment of non-financial assets
• Defined benefit obligations
• Insurance contract liabilities and reinsurance contract assets(liabilities)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

2. Basis of preparation (continued)

(e) Use of estimates and judgements (continued)

ii) Fair value measurement

The accounting policies and disclosures of the Group require fair value measurement for a number of financial and non-financial assets and liabilities, and thus, the Group establishes the fair value assessment policies and procedures. These policies and procedures involve the operation of the valuation department, which is responsible for the review of all significant fair value measurements, including fair values, which are classified as level 3 in the fair value hierarchy, and the results are reported to the chief financial officer.

The valuation department regularly reviews significant inputs and adjustments that are not observable. If the fair value measurement uses third-party information, such as broker's price or valuation agency, the valuation department determines whether an assessment based on information obtained from third parties can conclude that the fair value hierarchy includes classifications by level and meets the requirements of the related Standard.

When measuring the fair value of an asset or a liability, the Group uses as much market observable inputs as possible. Fair value is classified within the fair value hierarchy based on inputs used in valuation techniques as follows:

• Level 1: Unadjusted quoted prices in active markets accessible to the same assets or liabilities at the

measurement date

• Level 2: Observable inputs, directly or indirectly, on assets or liabilities other than Level 1 quoted prices

• Level 3: Unobservable inputs to assets or liabilities

If several inputs used to measure the fair value of an asset or liability are classified at different levels within the fair value hierarchy, the Group classifies all fair value measurements at the same level as the lowest level inputs in the fair value hierarchy, and a change in the fair value hierarchy is recognized at the end of the reporting period.

Detailed information on the assumptions used in fair value measurements is included in Note 8.

(f) New and amended Korean IFRSs and new interpretations adopted by the Group

The Group has applied the following new and amended accounting standards and new interpretations issued that are effective for the accounting periods beginning on or after January 1, 2025.

i) Amendments to Korean IFRS 1021 ‘The Effects of Changes in Foreign Exchange Rates’ – Lack of exchangeability

The amendments define scenarios where exchanges with other currencies are considered possible for accounting purposes, clarify the assessment of exchangeability with other currencies, and specify requirements for estimating and disclosing the spot exchange rate in cases where no exchangeability exists. If exchange with other currencies is not possible, the spot exchange rate must be estimated on the measurement date using observable exchange rates without adjustment or employing alternative estimation techniques. The adoption of the amendments did not have a material impact on the Group’s consolidated financial statements.

ii) Amendments to Korean IFRS 1117 ‘Insurance Contract’

The amendments add a disclosure requirement for entities to disclose, where the techniques to estimate the inputs used for measuring insurance contracts differ from those prescribed under insurance-related laws or regulations and such differences are considered relevant and material to users of the financial statements, those differences and their effects on the financial statements. The adoption of the amendments did not have a material impact on the Group’s consolidated financial statements.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies

Except for the new and amended accounting standards and new interpretations issued that are effective for the accounting periods beginning on or after January 1, 2025, the same accounting policies were applied by the Group in its consolidated financial statements as of December 31, 2025 and 2024. The material accounting policies adopted by the Group to prepare the consolidated financial statements are set out below.

(a) Basis of consolidation

i) Subsidiaries

If a member of the Group uses accounting policies other than those adopted in the consolidated financial statements for the same transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in preparing the consolidated financial statements.

ii) Intra-group transactions eliminated on consolidation

Intra-group balances, transactions, and any unrealized income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Unrealized intra-group losses are recognized as expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements.

iii) Non-controlling interests

Non-controlling interests in a subsidiary are accounted for separately from the parent’s ownership interests in a subsidiary. Each component of net profit or loss and other comprehensive income is attributed to the owners of the parent and non-controlling interest holders, even when the non-controlling interests balance is reduced to below zero.

iv) Business combinations

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

(b) Investments in associates and joint ventures

An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power of another entity.

The investment in an associate and a joint venture is initially recognized at cost, and the carrying value is increased or decreased to recognize the Group’s share of the profit or loss and changes in equity of the associate and the joint venture after the date of acquisition. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated the Group's stake in preparing the consolidated financial statements. Unrealized losses are also being derecognized unless the transaction provides evidence of an impairment of the transferred assets.

If an associate or a joint venture uses accounting policies different from those of the Group for transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity method.

When the carrying value of that interest, including any long-term investments, is reduced to nil, the recognition of further losses is discontinued except to the extent that the Group has an obligation or has to make payments on behalf of the investee for further losses.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(c) Revenue recognition criteria

The Group recognizes revenue by applying the below five-step model for revenue recognition.

① Identification of contract

② Identification of performance obligation

③ Calculation of transaction price

④ Allocation of transaction price to performance obligation

⑤ Recognition of revenue when performance obligation is fulfilled

i) Interest income and expenses

Interest income is recognized using the effective interest method as time passes.

ii) Dividend income

Dividend income is recognized when the right to receive dividends is established.

(d) Overseas operation

When the functional currency of a overseas operation is not the currency of a hyperinflationary economy, the assets and liabilities in the statement of financial position (including the comparative statement of financial position) are translated at the closing rate at the end of the reporting period, and the income and expenses in the statement of comprehensive income (including the comparative statement of comprehensive income) are translated at the exchange rates at the transaction dates, with resulting foreign exchange differences recognized in other comprehensive income.

(e) Cash and cash equivalents

The Group classifies cash balances, call deposits and highly liquid investment assets with original maturities of three months or less from the acquisition date that are easily converted into a fixed amount of cash and are subject to an insignificant risk of changes in their fair value as cash and cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(f) Non-derivative financial assets

Financial assets are recognized when the Group becomes a party to the contractual provisions of the instrument. In addition, a regular way purchase or sale (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market concerned) is recognized on the trade date.

i) Financial assets designated at FVTPL

Financial assets can be irrevocably designated as measured at FVTPL despite of classification standards stated below, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases. However, once the financial assets are designated at FVTPL, it is irrevocable.

ii) Equity instruments

For the equity instruments that are not held for trading, at initial recognition, the Group may make an irrevocable election to present subsequent changes in fair value in other comprehensive income. Equity instruments that are not classified as financial assets at FVOCI are classified as financial assets at FVTPL.

The Group subsequently measures all equity investments at fair value. Valuation gains or losses of the equity instruments that are classified as financial assets at FVOCI previously recognized as other comprehensive income is not reclassified as profit or loss on derecognition. The Group recognizes dividends in profit or loss when the Group's right to receive payments of the dividend is established.

Valuation gains or losses due to changes in fair value of the financial assets at FVTPL are recognized as gains or losses on financial assets at FVTPL. Impairment loss (reversal) on equity instruments at FVOCI is not recognized separately.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(f) Non-derivative financial assets (continued)

iii) Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model in which the asset is managed and the contractual cash flow characteristics of the asset. Debt instruments are classified as financial assets at amortized cost, at FVOCI, or at FVTPL. Debt instruments are reclassified only when the Group’s business model changes.

① Financial assets at amortized cost

Assets that are held within a business model whose objective is to hold assets to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Impairment losses, and gains or losses on derecognition of the financial assets at amortized cost are recognized in profit or loss. Interest income on the effective interest method is included in the ‘Interest income’ in the consolidated statement of comprehensive income.

② Financial assets at FVOCI

Assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Other than impairment losses, interest income amortized using effective interest method and foreign exchange differences, gains or losses of the financial assets at FVOCI are recognized as other comprehensive income in equity. On derecognition, gains or losses accumulated in other comprehensive income are reclassified to profit or loss. The interest income on the effective interest method is included in the ‘Interest income’ in the consolidated statement of comprehensive income. Foreign exchange differences and impairment losses are included in the ‘Net foreign currency transaction gain’ and ‘Provision for credit loss allowance’ in the consolidated statement of comprehensive income, respectively.

③ Financial assets at FVTPL

Debt securities other than financial assets at amortized costs or FVOCI are classified at FVTPL. Unless hedge accounting is applied, gains or losses from financial assets at FVTPL are recognized as profit or loss and are included in ‘Net gain on financial assets at fair value through profit or loss’ in the consolidated statement of comprehensive income.

iv) Embedded derivatives

Financial assets with embedded derivatives are classified regarding the entire hybrid contract, and the embedded derivatives are not separately recognized. The entire hybrid contract is considered when it is determined whether the contractual cash flows represent solely payments of principal and interest.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(g) Non-derivative financial liabilities

The Group categorizes financial liabilities into financial liabilities at fair value through profit or loss and other financial liabilities based on the substance of the contractual terms and the definition of financial liabilities.

i) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are initially measured at fair value, and changes therein are recognized in profit or loss.

ii) Other financial liabilities

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities and other financial liabilities include borrowing, debentures, etc. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.

The Group derecognizes a financial liability from the consolidated statement of financial position when it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(h) Derivative financial instruments

Derivatives are initially recognized at fair value. Subsequently, the valuation gains or losses resulting from the fair value changes of derivatives are recognized as described below.

i) Hedge accounting

The Group holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Group designated derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities, or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction. In addition, this document describes the hedging instrument, hedged item, and the method of evaluating the effect of the hedging instrument offsetting changes in the fair value or cash flow of the hedged item due to the hedged risk at the initiation of the hedging relationship and in subsequent periods.

① Fair value hedge

When a derivative is designated as a fair value hedge, an effective part of the change in the fair value of the derivative that meets requirement of fair value risk hedge accounting is recognized in profit or loss, and changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The Group discontinues fair value hedge accounting if the Group does not designate the risk hedge relationship, or the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria.

② Cash flow hedge

When a derivative is designated as a cash flow hedge, an effective part of the change in the cash flow of the derivative that meets requirement of cash flow risk hedge accounting is recognized in profit or loss, and changes in the cash flow of a derivative hedging instrument designated as a cash flow hedge are recognized in other comprehensive income and accumulated in equity, and the ineffective portion is recognized immediately in profit or loss. The Group discontinues cash flow hedge accounting if the Group does not designate the risk hedge relationship, or the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria. Once hedge accounting is discontinued, any cumulative gain or loss existing in equity at that time and is recognized over the period the forecast transaction occurs as profit or loss. However, when a forecast transaction is no longer expected to occur, the cumulative gain or loss recognized in equity is immediately recognized in the profit or loss.

③ Hedge of net investment

Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign operation are recognized in other comprehensive income to the extent that the hedge is effective. To the extent that the hedge is ineffective, such differences are recognized in profit or loss. When the hedged part of a net investment is disposed of, the relevant amount in the accumulated other comprehensive income is transferred to profit or loss as part of the profit or loss on disposal in accordance with K-IFRS No.1021, ‘The Effects of Changes in Foreign Exchange Rates’

ii) Other derivative instruments

All derivatives, except those designated as hedging instruments and that are effective in hedging, are measured at fair value and the gain or loss on valuation resulting from changes in fair value is recognized in profit or loss.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(i) Expected credit losses on financial assets

The Group recognizes provision for credit loss allowance on the following assets:

• Financial assets measured at amortized cost

• Debt instruments measured at fair value through other comprehensive income

The Group measures provision for credit loss allowance at the amount equal to the expected credit loss for the entire period, except for the following financial assets that are measured as 12-month expected credit losses.

• Debt securities whose credit is determined to be low risk at the end of the reporting period

• Other debt securities that have not significantly increased their credit risk (i.e. the risk of defaulting the financial asset over its expected life) since the initial recognition

When determining whether the credit risk of a financial asset has increased significantly since the initial recognition and when estimating expected credit losses, the Group considers information that is available, reasonable, and supportable without excessive cost or effort. This includes qualitative and quantitative information and analysis based on the Group's experience and known credit ratings, including forward-looking information.

The Group assumes that the credit risk of financial assets will increase significantly if the overdue days exceed 30 days.

The Group considers that a default on a financial asset has occurred if:

• the debtor is not likely to fulfill his credit obligations to the Group unless the Group engages in an appeal.

• the delinquent days of financial assets exceed 90 days

The longest period to consider when measuring expected credit loss is the longest contract period in which the Group is exposed to credit risk.

i) Measurement of expected credit loss

Expected credit loss is a probability weighted estimate of credit loss. Credit loss is measured as the present value of all cash deficits (i.e. the difference between all contractual cash flows to be received under a contract and all contractual cash flows that is expected to be received).

Expected credit loss is discounted at the effective interest rate of the financial asset.

ii) Financial assets with credits impaired

At the end of each reporting period, the Group assesses whether the assets of financial assets measured at amortized cost and other comprehensive income and fair value of debt securities measured at fair value are impaired. If one or more events that adversely affect the estimated future cash flows of a financial asset have occurred, the financial asset is impaired.

iii) Presentation of provision for credit loss allowance in the statement of financial position

Provision for credit loss allowance on financial assets measured at amortized cost is deducted from the carrying amount of the asset. For debt instruments measured at fair value through other comprehensive income, the provision for credit loss allowance is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(j) Impairment of non-financial assets

The carrying amounts of the Group’s non-financial assets, other than assets arising from employee benefits, deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.

The Group estimates the recoverable amount of an individual asset, if it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or the CGU.

An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

At the end of each reporting period, the Group reviews whether there are any indications that any impairment losses recognized in prior periods for assets other than goodwill are no longer present or have been reduced, and only reverses the estimates used to determine recoverable amount since the date of recognition of the immediate impairment loss. The carrying amount increased by the reversal of impairment losses shall not exceed the carrying amount before recognition of the impairment loss, less any amortization or accumulated depreciation recognized prior to the impairment.

(k) Leases

i) Accounting treatment as the lessee

The Group leases various tangible assets, such as real estate and vehicles, and the terms of the leases are negotiated individually and include a variety of terms and conditions. There are no other restrictions imposed by the lease contracts, except that the lease assets cannot be provided as collaterals for borrowings.

At the commencement date of the lease, the Group recognizes a right-of-use asset and a lease liability. The payment of each lease is allocated to the repayment of the liability and finance costs. The Group recognizes in profit or loss the amount calculated to produce a constant periodic rate of interest on the lease liability balance for each period as finance costs. Right-of-use assets are depreciated using a straight-line method from the inception of the lease over the lease term of the right-of-use assets.

If the implicit interest rate in the lease can be readily determined, the lease payments shall be discounted using that rate, and if that rate cannot be readily determined, the lessee shall use the lessee’s incremental borrowing rate.

Right-of-use assets are measured at the following items:

• The initial measurement of the lease liability.

• Lease payments made at or before the lease commencement date (net of any lease incentives received).

• Initial direct costs incurred by the lessee.

• An estimate of costs to dismantle and remove the underlying asset, or to restore the underlying asset site, or to restore the underlying asset itself, as incurred by the lessee, as required by the lease terms.

Lease payments associated with short-term leases or leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Short-term leases are leases with a lease term of 12 months or less, and low-value asset leases are leases with a carrying amount of the underlying asset of W 6 million or less.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(k) Leases (continued)

i) Accounting treatment as the lessee(continued)

Additional considerations for the Group’s accounting as a lessee include:

Extension options and termination options are generally included in multiple real estate lease contracts. When estimating the lease term, the Group considers all relevant facts and circumstances that create an economic incentive to exercise the option to extend the lease, or not to exercise the option to terminate the lease. Period covered by an extension option (or period covered by termination option) is included in lease term only if the lessee is reasonably certain to exercise (or not to exercise) the option. If the lessee and the lessor have the right to terminate without the consent of the other parties, the termination period shall be determined in consideration of the economic disadvantages incurred in terminating the contract. When significant events occur or there are significant changes in circumstances that have affected the lessee's control and the lease term before, the parties reassess whether they are quite certain to exercise the option of extension (or not).

ii) Accounting treatment as the lessor

The Group leases various types of assets such as vehicles and machinery under operating and finance lease contracts, with lease terms individually negotiated and comprising various contract terms. Methods employed by the Group to manage risks associated with all rights retained in the underlying assets include repurchase agreements and residual value guarantees.

① Finance Lease

For finance leases, the Group recognizes a finance lease receivable equal to the net investment in the lease. Any difference between the carrying amount of the leased asset at the commencement date and its fair value is recognized as a gain or loss on lease asset disposal in the current period. Furthermore, interest income is recognized using the effective interest rate method on the Group's net investment in finance leases receivable outstanding. Direct costs incurred in connection with finance leases are included in the initial recognition of finance lease receivables and are amortized over the lease term, reducing revenue recognized over the lease term.

② Operating Lease

For operating leases, lease income is recognized on a straight-line basis over the lease term. Direct costs incurred in the negotiation and contract stages of operating leases are recognized in addition to the carrying amount of the underlying asset. Additionally, depreciation of operating lease assets is accounted for similarly to depreciation of other similar assets owned by the Group.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(l) Property, plant, and equipment

Land is not depreciated. Other property and equipment are depreciated on a straight-line method which is the most appropriately reflect the expected consumption pattern of the future economic benefits inherent in the asset over the estimated useful lives, for the acquisition cost after subtracting the residual value. The estimated useful lives for the current and comparative periods are as follows:

The estimated useful life for the years ended December 31, 2025 and 2024 are as follows:

Classification		Expected useful life
Building		50 years
Structure		20 years
Rental property		5 years or rental period
Vehicle		5 years
Tools		5 years

(m) Intangible assets

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

Amortization of intangible assets, except goodwill, is carried out on a straight-line basis over their estimated useful lives from the date they are available for use, with a residual value of zero. However, for certain intangible assets, where the period over which they are expected to be available for use is not reasonably determinable, the useful life of the intangible assets is considered indefinite, and therefore, not subject to amortization.

Classification		Expected useful life
Development cost		5 years
Software		5 years
License		10 years

(n) Investment properties

Investment property is measured initially at its cost including transaction costs incurred in acquiring the asset. After recognition as an asset, investment property is carried at cost less accumulated depreciation and accumulated impairment losses.

Land held for investment is not depreciated. Investment property, except for land, is depreciated using straight-line method over their useful lives of 50 years.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(o) Employee benefits

i) Short-term employee benefits

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

ii) Other long-term employee benefits

The Group’s net obligation in respect of other long-term employee benefits that are not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

iii) Retirement benefits

① Defined benefit plans

As of December 31, 2025, defined benefit liabilities related to the defined benefit plan are recognized by deducting the fair value of external reserve from the present value of the defined benefit plan debt.

The defined benefit liability is calculated by an independent actuary every year. If the net amount calculated by deducting the fair value of the plan assets from the present value of the defined benefit obligation is an asset, the asset is recognized up to the limit of the present value of the economic benefits available in such a way as to receive a refund from the plan or to reduce future contributions to the plan.

(p) Provisions

Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract

i) Definition and classification of insurance contracts

The Group classifies the insurance contract issued as an insurance contract when assuming significant insurance risk from the policyholder, regardless of its legal form. It is classified as an insurance contract if, based on present value, there is a potential loss exposure and if, under any commercially plausible scenario, significant additional payments (determined on a present value basis) would be required to the policyholder. The assessment of assuming significant insurance risk is performed for each contract at the time of issuance. For reinsurance contracts, they are classified as insurance contracts when transferring significant insurance risk to the reinsurer. Additionally, contracts with discretionary participation features are also classified as insurance contracts.

Among the insurance contracts held by the Group, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulations on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by the Group are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

As of December 31, 2025, the present value of estimated future cash flows related to the Group’s participating insurance contracts amounted to W4,719,406 million. This amount was measured based on reasonable assumptions and available information as of December 31, 2025. The key assumptions affecting the measurement of insurance liabilities and the effects (sensitivity) of changes in each assumption on the fulfilment cash flows, including the best estimate of future cash flows (BEL) and the risk adjustment for non-financial risk (RA), and the contractual service margin (CSM) are described in detail in Note 6.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)

• Unit of account

The Group identifies portfolios of insurance contracts by integrating insurance contracts that are subjected to similar risks and managed together based on coverage, currency, and interest rate types. The Group divides a portfolio of insurance contracts issued into the following groups of insurance contracts based on similarity of profitability. However, for contracts issued to which the Group applies the premium allocation approach, the Group shall assume no contracts in the portfolio are onerous (or net gain for reinsurance) at initial recognition, unless facts and circumstances indicate otherwise.

A group of insurance contracts issued:

• a group of contracts that are onerous at initial recognition

• a group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently

• a group of the remaining contracts

A group of reinsurance contract held:

• a group of contracts with net profit at initial recognition

• a group of contracts that at initial recognition have no significant possibility of net gain subsequently

• a group of the remaining contracts

The Group does not include contracts issued more than one year apart in the same group, and it does not reassess the composition of the group subsequently.

② Recognition of group of insurance contracts

The Group recognizes the group of insurance contracts it issues from the earliest of the following .

• The beginning of the coverage period of the group of contracts;

• The date when the first payment from a policyholder in the group becomes due (If there is no contractual payment due date, the time the first premium is received is considered that date); and

• For a group of onerous contracts, when the group becomes onerous.

The Group recognizes a group of reinsurance contracts held at the beginning of the coverage period of the group of insurance contracts held. However, in the case of non-proportional reinsurance where the ceding group of contracts is a onerous portfolio and the reinsurance contract is entered into either at the commencement of the coverage period of that onerous ceding group of insurance contracts or earlier, the Group recognizes the group of reinsurance contracts on the earlier of the commencement of the coverage period for the group of reinsurance contracts and the recognition date of the onerous ceding group of insurance contracts. In addition, in the case of proportional reinsurance, the Group recognizes the group of reinsurance contracts held at the time of initial recognition of the group of underlying insurance contracts, if the initial recognition time of the group of underlying insurance contracts is later than the beginning of the coverage period of the group of reinsurance contracts held.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model

On initial recognition, the Group measures a group of insurance contracts issued as the sum of the fulfillment cash flows comprising estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows , and risk adjustments to non-financial risk and the contractual service margin, and subsequently, as the sum of the liability or asset of for remaining coverage comprising the fulfillment cash flows and the contractual service margin and liability or asset for incurred claims comprising the fulfillment cash flows. The liability for remaining coverage includes the obligation to investigate and pay reasonable insurance benefits according to the current insurance contract for insurance events that have not yet occurred, the obligation to pay amounts related to insurance contract services that have not yet been provided, the obligation to pay amounts related to insurance contract services that have not yet been provided, and represents the obligation to pay investment components and other amounts that have not been transferred to incurred liability. The liability for incurred claims comprises the obligation to investigate insurance events that have already occurred and pay reasonable insurance claims and other incurred insurance costs, the obligation to pay amounts related to insurance contract services already provided, and obligation to pay investment elements and other amounts not related to insurance contract services and not included in the liability for remaining coverage.

• The estimate of future cash flows

The Group estimates future cash flows using a probability-weighted average based on all relevant, reliable, and neutral information available without undue cost or effort regarding the timing, scope, and uncertainty of future cash flows. Estimates for market variables are consistent with observable market prices and reflect the perspective of the entity, while estimates for non-market variables incorporate all reasonable and reliable internal and external evidence available without undue cost or effort, while ensuring consistency with observable market variables. The Group segregates the future cash flows of reinsurance contracts from those of the underlying insurance contracts and measures them separately, using assumptions consistent with the underlying direct insurance contracts issued but including the effects risk of failure of the debtor.

• Future cash flows within the contract boundary

The Group includes all future cash flows within the boundary of the group of insurance contracts issued when measuring the group. Cash flows within the contract boundary refer to cash flows up to the reporting period in which there exists a substantive right or obligation to compel the policyholder to pay premiums (or compel the reinsurer to pay reinsurance premiums for group of reinsurance contracts) or to provide substantive services under the insurance contract (or receive substantive services from the reinsurer for group of reinsurance contracts). Cash flows within the contract boundary include premiums from policyholders, claims and benefits payable to policyholders (including payments linked to underlying items), insurance claim handling expenses, options and guarantees embedded in cash flows, insurance acquisition cash flows directly attributable to the contract or its portfolio, fixed/variable indirect expenses directly attributable to fulfilling the insurance contract, costs related to investment activities and the provision of investment return services/investment-related services, insurance policy loans, etc; and excludes investment income or future insurance-related cash flows, product development expenses, and training expenses not directly attributable to the insurance contract portfolio

The substantive obligation to provide insurance contract services (or the substantive right to receive insurance contract services for group of reinsurance contracts) terminates when there is actual ability to reassess the risk of specific policyholders or portfolios (or risks transferred to reinsurers for group of reinsurance contracts) and, as a result, to fully reflect such risks in pricing or settlement. Risks related to periods after the reassessment date are not considered when reevaluating the portfolio's pricing. The Group reassesses the boundary of the contract at the end of each reporting period to reflect changes in circumstances affecting substantive rights and obligations.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities) (continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)

• Discretionary cash flows

The Group identifies and distinguishes the effects of discretionary cash flow variations, which pertain to amounts or timing of cash flows subject to discretion, and the effects of changes in assumptions related to financial risks on the recognition, separately. Any impact of changes in discretion on recognition is adjusted in contractual service margin. The Group considers any adjustment rate applied to the benchmark rate as discretionary when applying the crediting rate to payments to policyholders.

• Insurance acquisition cash flows

The Group allocates insurance acquisition cash flows directly attributable to the group of insurance contracts in a reasonable and systematic manner based on future group of insurance contracts that will be recognized as a result of renewals within the portfolio and the insurance contracts included in that portfolio. After allocation, insurance acquisition cash flows recognized as an asset is evaluated for recoverability at the end of each reporting period if there is evidence or indication of impairment, and any impairment losses are recognized in the income statement and adjust the carrying amount of an asset for insurance acquisition cash flows. The asset for insurance acquisition cash flows is removed when the related group of insurance contracts is initially recognized and included in the measurement of the fulfillment cash flows for that group of insurance contracts.

• Discount rate

The Group measures the time value of money using a discount rate that reflects the cash flow and liquidity characteristics of insurance contracts while being consistent with current observable market prices and then adjusts future cash flow estimates. To do this, the Group calculates a risk-free interest rate term structure using the Smith-Wilson interpolation method, incorporating yields on government bonds with maturities observed in the market up to the longest term available, along with initial convergence periods and long-term lead rates. Liquidity premiums are then added to determine deterministic scenarios. The liquidity premium is derived by multiplying an adjustment ratio to the difference between the risk spread of the representative insurance industry portfolio and the credit risk spread. Additionally, the Group generates 1,000 stochastic scenarios based on this deterministic scenario, reflecting convergence speed parameters and volatility parameters. Deterministic and stochastic scenarios for foreign currencies are calculated separately from scenarios for the currency of Korean Won, taking into account the characteristics of each currency.

• Risk adjustment for non-financial risk

The Group explicitly reflects between estimated future cash flows and discount rates, reflecting the compensation of the uncertainty surrounding the amounts and timing of cash flows arising from non-financial risks through adjustments for non-financial risk. These adjustments are made in accordance with insurance regulations and are allocated at the individual contract level through reasonable and systematic methods. For reinsurance contracts held, adjustments for non-financial risk are calculated to reflect the risk transferred from the holder of the reinsurance contract to the reinsurer, consistent with the assumptions applied in the underlying insurance contracts issued.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities) (continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)

• Contractual service margin

At the time of initial recognition of a group of insurance contracts issued, the Group measures the contractual service margin, which is unrealized profit that will be recognized as insurance contract services are provided in the future, as the amount that does not recognize revenue or expenses from:

ⅰ) The amount of fulfillment future cash flows expected at initial recognition date for the group of insurance contracts.

ⅱ) All cash flows already incurred from contracts within the group of insurance contracts at the initial recognition date.

ⅲ) The acquisition cash flows allocated to the group of insurance contracts at the initial recognition date.

ⅳ) Other assets or liabilities recognized previously for cash flows associated with the group of insurance contracts at the initial recognition date.

In the case of a reinsurance contracts held, the net cost or net gain on purchasing a group of the reinsurance contracts held is recognized as contractual service margin. However, if the net cost of purchasing reinsurance coverage is related to costs incurred prior to purchasing a group of reinsurance contracts held, it is recognized in profit or loss.

• The changes in fulfilment cashflows and contractual service margins

The Group re-estimates the future cash flows as of the end of each reporting period at current estimates. Changes in fulfilment cash flows related to the future service are adjusted in the contractual service margin, while change in fulfilment cash flows related the current and past service are recognized in profit or loss. The Group also adjusts the contractual service margins for experience adjustments related to future service-related premiums and related insurance acquisition cash flows, as well as for differences between expected and actual investment components. However, changes in the time value of money and financial risk, changes in estimated cash flows for liabilities for incurred claim, and other experience adjustments related to current and past services are not adjusted in the contractual service margins.

The Group calculates the carrying amounts of the contractual service margins at the end of the reporting period by adjusting the following amounts to the carrying amounts at the start of the reporting period.

ⅰ) the effect of any new contracts added to the group;

ⅱ) interest accreted on the carrying amount of the contractual service margins during the reporting period, measured at the discount rate determined at initial recognition;

ⅲ) the changes in fulfillment cash flows relating to future services except to the amounts of change in the fulfillment cash flows are allocated to the loss component or loss recovery component;

ⅳ) the effects of any currency exchange differences on the contractual service margin; and

ⅴ) the amounts recognized as insurance revenue because of the transfer of insurance contract services in the period.

• Loss components and loss recovery components

The Group considers an insurance contract as onerous contract at the date of initial recognition if the fulfilment cash flows allocated to the contract, any previously recognized insurance acquisition cash flows and cash flows and any cash flows arising from the contract at that date of initial recognition in total are a net outflow. Additionally, the Group considers a group of insurance contracts becomes onerous on subsequent measurement if unfavorable changes relating to future services in fulfillment cash flows allocated to the group of insurance contracts exceed the carrying amount of the contractual service margins.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities) (continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)

The Group recognize a loss in profit or loss for the net outflow for the group of onerous contracts, resulting in the carrying amounts of the liability for the group being equal to the fulfillment cash flows and contractual service margin of the group being zero. Any portion at the initial recognition date in the group of onerous contracts that is expected to result in a net outflow or exceeds the carrying amount of the contractual service margin subsequently is considered a loss component of that portfolio and recognized as a loss in the current period. After recognizing the loss component, the Group systematically allocates changes relating to future services in fulfillment cash flows on subsequent measurement between the loss component and the others based on established criteria. However, favorable changes relating to future services in fulfillment cash flows on subsequent measurement are allocated only to the loss component until it is fully exhausted and recognized in the current period. Any excess beyond the loss component’s exhaustion is then recognized as contractual service margin again.

In the case of a group of reinsurance contracts held, when a loss component is recognized in the group of the underlying insurance contracts, the Group calculates the loss recovery component of the group of the reinsurance contracts held by multiplying the expected recovery ratio for claims under the group of the underlying insurance contracts by the loss component attributed to those claims. This loss recovery component is then used to adjust assets for the remaining coverage of the reinsurance group and to adjust the contractual service margin (or directly adjust the liabilities for remaining coverage if the premium allocation approach is applied) for recognition of the current period’s profit or loss. The loss recovery component is adjusted to reflect fluctuations in the loss component of the group of the underlying insurance contracts within the range that does not exceed the loss component’s carrying amount for the group of the underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)

④ Measurement of insurance liabilities (assets) under the variable fee approach

The Group applies the variable fee approach to measure insurance liabilities (assets) for insurance contracts with direct participation features that meet the following conditions at inception: The Group provides investment-related services at the commencement of the insurance contract, and the insurance contract has direct participation features. The Group does not reassess the following conditions unless there is a contract modification. The variable fee approach is not applied to reinsurance contracts held.

i) The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items

ii) The Group expects to pay to policyholder an amount equal to a substantial share of the fair value returns on the underlying items

iii) The Group expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.

In the variable fee approach, it is clear that the obligation to pay an amount equal to the fair value of the underlying items, deducted by the variable fee, constitutes the liability to the policyholder. The variable fee represents the amount deducted from the fair value of the underlying items, which is the portion not subject to fluctuations based on the performance of the underlying items. Fluctuations in the obligation to pay an amount equal to the fair value of the underlying items are not adjusted in the contractual service margin. However, adjustments are made in the contractual service margin for the portion of the fair value of the underlying items attributable to the Group and the fluctuation in the cash flows not subject to variations based on the performance of the underlying items.

The Group measures the fulfillment cash flows under variable fee approach at the initial recognition date and at the end of the reporting period using the same general model. The carrying amounts of the contractual service margin at the end of the reporting period under variable fee approach is adjusted the following amounts to the carrying amounts at the start of the reporting period.

i) the effect of any new contracts added to the group;

ii) the change in the amounts of the entity’s share of the fair value of underlying items excluding recognition and reversal of loss components;

iii) the changes in fulfillment cash flows relating future services excluding recognition and reversal of loss components;

iv) the effects of any currency exchange differences on the contractual service margins; and

v) the amounts recognized as insurance revenue because of the transfer of insurance contract services in the period.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)

⑤ Insurance liabilities (assets) and reinsurance assets (liabilities) measured under the premium allocation approach.

At the inception of a group of insurance contracts issued, if there is a reasonable expectation that the measurement of liabilities for remaining coverage under premium allocation approach does not differ materially from the one under the general model, and if the coverage period for all contracts within the group of insurance contracts issued is one year or less, the insurance liabilities (assets) are measured using the premium allocation approach, which is a simplified method compared to the general model.

The Group measures the residual insurance liabilities (assets) at the initial recognition by deducting from the cash received as premiums (or reinsurance premiums paid in the case of reinsurance contracts), the amount of insurance acquisition cash flows not immediately recognized as expenses (including amounts removed from assets). Subsequently, it determines the carrying amount by adding or subtracting the following amounts from the initial amount.

ⅰ) Premiums received during the reporting period. (Reinsurance premium paid for reinsurance contracts held)

ⅰⅰ) Insurance acquisition cash flows not recognized as expenses and amortization of those insurance acquisition cash flows

ⅲ) Adjustments related to significant financing component.

ⅳ) Amount recognized in profit or loss for the reporting period due to providing insurance contract services.

v) Investment component paid (received for reinsurance contracts held) or transferred to the liability for incurred claims.

The Group does not adjust the carrying amount of the Liabilities for remaining coverage at the initial recognition date if the coverage period of each contract within the group of insurance contracts does not exceed one year, in order to reflect the time value of money and the financial risk effect. Additionally, acquisition cash flows are recognized as expenses when they occur. However, if circumstances indicate that the group of insurance contracts incurs losses, the Group performs impairment tests. If the cash flows for the fulfillment exceed the carrying amount of the liabilities for remaining coverage, the difference is recognized as a loss in the current period and increases the liabilities for remaining coverage by the corresponding amount.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ⅲ) Recognition of insurance revenue and insurance service expenses

① Recognition of insurance revenue in general model and variable fee approach

Insurance revenue is measured as the amount expected to be received in exchange for providing insurance contract services for issued group of insurance contracts. It consists of the sum of changes in the residual insurance liabilities and amounts related to insurance acquisition cash flows.

ⅰ) Insurance service costs incurred during the period, measured at the amount estimated at the inception date (excluding transaction-related taxes collected on behalf of third parties, amounts allocated to loss components, insurance acquisition costs, amounts repayable to policyholders regardless of the occurrence of insurance events, and insurance contract loan execution amounts).

ⅱ) Changes in the risk adjustment for non-financial risk (excluding amounts allocated to loss components and changes related to future services).

ⅲ) Contractual service margin recognized in the current period as profit or loss, calculated based on the quantity of benefits payments and the expected duration of benefits for contracts within the group of insurance contracts, considering the frequency and severity of occurrence of benefits for the entire coverage units allocated to the current period.

ⅳ) Other amounts such as experience adjustments on premiums collected for current or past services.

Insurance revenue related to insurance acquisition cash flows is calculated by systematically allocating the portion of premiums associated with these cash flows over time, reflecting the recovery of these cash flows. The same amount is recognized as insurance service costs.

② Recognition of insurance revenue under the premium allocation approach.

Under the premium allocation approach, insurance revenue is recognized by allocating the expected premium income (excluding investment components) for services provided over each period. However, if the pattern of release of risk expected during the coverage period significantly differs from the passage of time, the expected premium income is allocated according to the pattern expected for the incurring of insurance service expenses.

③ Recognition of insurance service expenses

The insurance service expenses incurred as a result of issuing the group of insurance contracts issued consist of the following.

ⅰ) Increase in the liabilities for incurred claims and changes in the fulfilment cash flows related to premiums and expenses (excluding repayment of investment elements).

ⅱ) Amortization of insurance acquisition cash flows (the same amount is recognized as insurance revenue and insurance service expenses).

ⅲ) Loss component recognized in the group of onerous contracts at initial recognition and the changes of loss component relating the future services.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ⅲ) Recognition of insurance revenue and insurance service expenses (continued)

④ The recognition of reinsurance revenue and reinsurance service expenses for groups of reinsurance contracts held.

The revenue and expenses arising from group of reinsurance contract held is recognized by adopting the method of recognizing insurance service expenses and insurance revenue of underlying insurance contract, with adjustments made to reflect the characteristics of reinsurance contracts (revenue being the amount recovered from reinsurers and expenses being the allocated portion of premiums paid to reinsurers).

ⅳ) Modification and derecognition

The Group derecognizes the original contract and recognizes the modified contract as a new contract when the insurance contract terms are changed and specific criteria are met. If the contract modification does not meet such criteria, the effect of the contract modification is treated as changes in estimated of fulfilment cash flows. There were no instances during the current and prior periods where the original contract was derecognized and the modified contract was recognized as a new contract. When an insurance contract is extinguished (when the obligation specified in the insurance contract expires or is discharged or cancelled), the Group derecognizes the insurance contract, adjusts the estimated cash flows and contractual service margin related to the removed contract within the group of insurance contracts, and reflects the derecognized contract in the number of coverage units of the group of insurance contracts issued.

ⅴ) Change in accounting treatment of accounting estimates measured in the interim financial statements

The Group has adopted an accounting policy of not changing the accounting treatment of accounting estimates measured in interim financial statements when preparing subsequent interim financial statements and annual financial statements.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(q) Insurance contract (continued)

ⅵ) Presentation

The Group separately presents the carrying amounts of insurance contract portfolio, which is an asset, the carrying amounts of the insurance contract portfolio, which is a liability, the carrying amounts of the reinsurance contract portfolio held, which is an asset, and the carrying amounts of the reinsurance contract portfolio held, which is a liability, respectively, in the consolidated statement of financial position. Furthermore, it distinguishes between insurance revenue and reinsurance service expenses, as well as insurance service expenses and reinsurance revenue, without offsetting them against each other in the consolidated statement of comprehensive income.

The Group includes the time value of money and the effects of financial risks, as well as their fluctuations, in insurance finance income (expenses). The Group has chosen an accounting policy to differentiate between insurance finance income (expenses) for the period as either recognized in the current income or in other comprehensive income. For groups of insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to the policyholders, the finance income (expenses) is determined using an allocation that is based on the amounts credited in the period and expected to be credited in future periods. For other insurance groups, the effective interest rate determined at initial recognition is used to calculate insurance finance income (expenses) recognized in the current period. In cases where the variable fee approach is applied to insurance groups holding underlying items, the amount recognized as insurance finance income (expenses) in the current period is determined to eliminate accounting mismatches with the underlying items and recognized in the current income.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(r) Hybrid bonds

The Group classifies an issued financial instrument, or its component parts, as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. Hybrid bonds where the Group has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation are classified as an equity instrument and presented as part of equity.

(s) Income tax

Shinhan Financial Group, the parent company of the Group, reported and paid corporate taxes by considering the entire domestic subsidiary company, including the Group, as a single tax unit, and the consolidated tax burden amount was counted as the current corporate tax liability. The deferred tax liabilities and assets are recognized as temporary differences between the carrying amount of assets and liabilities and the tax value, and items directly attributable to the Group among the future tax burden to be paid for tax losses and tax credits that can be carried forward and deducted.

The carrying value of deferred tax assets is reviewed at the end of each reporting period. The carrying value of deferred tax assets is reduced when it is no longer likely that sufficient taxable income will be generated to use benefits from deferred tax assets.

(t) Operating segments

The Group divides segments based on internal reporting data which is regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segments and evaluate their performance. The segment information reported to the Chief Operating Decision Maker includes items directly attributable to the segment and items that can be reasonably allocated.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(u) New standards and amendments not yet adopted by the Group

At the date of authorization of these financial statements, the Group has not applied the following new and revised K-IFRS Standards that have been issued but are not yet effective:

i) K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures’ – Classification and measurement requirements of financial instruments

In response to questions raised in practice and to incorporate new requirements, K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures’ were amended. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with early application permitted. The principal amendments are as follows. The group does not anticipate that the application of these amendments will have a material impact on its financial statements.

• Permits, subject to specified criteria, a financial liability to be considered settled (derecognized) before the settlement date when it is settled through an electronic payment system

• Clarifies and adds guidance for assessing whether a financial asset meets the criterion of consisting solely of payments of principal and interest

• Requires disclosures, by class of financial instrument, of the effect on the entity of contractual terms that change the timing or amount of contractual cash flows and the extent of the entity’s exposure

• Introduces additional disclosures for equity instruments designated at fair value through other comprehensive income

ii) K-IFRS 1118 ‘Presentation and Disclosure in Financial Statements’

K-IFRS 1118 ‘Presentation and Disclosure in Financial Statements’ replaces K-IFRS 1001 ‘Presentation of Financial Statements’ and introduces new requirements aimed at enhancing the comparability of financial performance among similar entities and providing users with more decision-useful information. The Group expects that the amendments will not affect the recognition or measurement of items in the financial statements and is assessing their impact on presentation and disclosure, including the statement of profit or loss and the disclosure of management-defined performance measures (MPMs).

K-IFRS 1118 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. In accordance with the standard’s retrospective application requirements, comparative information for the annual reporting period ended December 31, 2026 will be restated in accordance with K-IFRS 1118.

iii) K-IFRS Annual Improvements

K-IFRS annual improvements are applied for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. There will be no material impact on the consolidated financial statements from these amendments.

• K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards – Hedging accounting by a first-time adopter

• K-IFRS 1107 Financial Instruments: Disclosures – Gain or loss on derecognition

• K-IFRS 1109 Financial Instruments – Derecognition of lease liabilities and transaction price

• K-IFRS 1110 Consolidated Financial Statements – Determination of ‘de facto agent’

• K-IFRS 1007 Statement of Cash Flows: Cost method

• K-IFRS 1109 Financial Instruments and K-IFRS 1107 Financial Instruments: Disclosures – Contracts referencing nature-dependent electricity

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

4. Summary of financial information

For the year ended December 31, 2025, the Group recognized (i) operating profit of W791,988 million, consisting of W694,935 million of insurance service result and W97,053 million of net finance result; (ii) W3,874 million of non-operating expense and equity in net loss of associated companies, in total; and (iii) W507,708 million of profit for the period.

The operating profit increased by W66,906 million, insurance service result increased by W42,179 million, net finance result increased by W24,727 million, and profit for the period decreased by W20,693 million as compared to the year ended December 31, 2024.

Insurance service result for the year ended December 31, 2025 includes revenue from the contractual service margin recognized in profit or loss for services provided amounting to W735,861 million, and changes in risk adjustment amounting to W185,560 million; and includes W(-)13,777 million and W11,955 million of experience adjustments on claims and operating expenses, respectively.

The insurance service result increased by W42,179 million as compared to the year ended December 31, 2024 mainly due to an increase in the changes in risk adjustment, partially offset by decreases in experience adjustments.

Net finance result for the year ended December 31, 2025 includes W1,434,337 million of net interest income, W2,775,229 million of net insurance finance expenses, and W1,437,945 million of net investment income on securities and others.

The net finance result has increased by W24,727 million as compared to the year ended December 31, 2024 mainly due to an increase in investment income on securities and others, partially offset by decreases in net interest income and net insurance finance expenses.

Total assets are W59,661,505 million as of December 31, 2025, including W12,747,883 million of financial assets at fair value through profit or loss, W35,710,318 million of securities at fair value through other comprehensive income, W3,958,459 of securities at amortized cost, W2,258,061 million of loans, W2,538,228 million of cash and due from banks, and W2,448,556 of derivative assets and others.

Total assets decreased by W181,763 million as compared to the year ended December 31, 2024, mainly due to a decrease of securities at fair value through other comprehensive income caused by the increases in interest rates.

Total liabilities are W53,455,107 million as of December 31, 2025, including W47,912,934 million of insurance contract liabilities (for which the estimates of present value of future cash flows and contractual service margin are W38,958,408 million and W7,554,897 million, respectively); and W5,542,173 million of reinsurance contract liabilities, investment contract liabilities and others in total.

Total liabilities increased by W652,540 million as compared to the year ended December 31, 2024, mainly due to an increase in other liabilities resulting from the issuance of subordinated bonds, partially offset by a decrease in the estimates of present value of future cash flows caused by the increases in interest rates.

Total equity is W6,206,398 million as of December 31, 2025, including W578,274 million of capital stock, W820,012 million of capital surplus, W6,924,184 million of retained earnings, and W2,116,963 million of accumulated other comprehensive loss.

Total equity decreased by W834,303 million as compared to the year ended December 31, 2024, mainly due to a decrease in accumulated other comprehensive income caused by annual dividend paid, changes in discount rate assumptions, and other regulatory effects.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management

(a) Risk management overview

The Group operates a risk management system in order to systematically identify and measure various risks that may arise throughout the Group's overall business and manage them efficiently at a group-wide level, thereby promoting the Group's sound and sustainable development.

The main risks being managed include credit risk, market risk, interest rate risk and liquidity risk. These risks are identified, measured, controlled, and reported in accordance with the risk management guidelines.

i) Risk management principles

The Group’s risk management is guided by the following core principles:

• Carry out all operating activities within a predetermined risk appetite, in consideration of the balance of risk and returns;
• Operate a risk management-related decision-making system that enhances management involvement;
• Organize and operate a risk management organization that is independent from the sales and asset management departments;
• Operate a performance management system that explicitly takes into account risks when making business decisions.
• Aim for preemptive and practical risk management functions;
• Share a careful view to prepare for possible deterioration of the situation even in normal conditions;
• Diversify risks to prevent concentration of risks in specific sectors; and
• Follow formal procedures or methods, such as documentation.

ii) Risk management organization

The basic policies and strategies for risk management are established by the Risk Management Committee within the Board of Directors. The Chief Risk-management Officer (“CRO”) assists the Risk Management Committee and establishes and implements detailed risk policies and strategies through the Risk Management Steering Committee, Investment Steering Committee, and the organization exclusively in charge of risk management.

① Risk Management Committee

The Risk Management Committee serves as the highest decision-making body for risk management. Chaired by an outside director, the Committee operates on a regular basis. It has established a comprehensive management system to formulate risk management policies—including the identification, measurement, monitoring, and control of risks—and to ensure that such risks are appropriately evaluated and managed.

② Risk Management Steering Committee

The Risk Management Steering Committee, as a committee under the Risk Management Committee, is established to comprehensively manage risks that may arise in the course of business at an operational level and performs the detailed tasks delegated by the Risk Management Committee for the efficient implementation of its risk management and resolution matters.

③ Investment Steering Committee

The Investment Steering Committee is responsible for making credit and investment decisions, credit risk management and credit policy. The Risk Management Committee delegates details for risk management and efficient implementation of resolutions.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(a) Risk management overview (continued)

iii) Risk management procedures

The Group manages risks by identifying, measuring, and evaluating the various risks that the Group is exposed; controlling the risks by reflecting in management strategies and policies; and re-identifying risks through monitoring.

① Risk identification: identify risks by type that may occur in management activities, such as credit, market, interest rate, liquidity, etc.

② Risk measurement and evaluation: measure risk capital based on external (set by the Financial Service Commission) and internal standards and evaluate capital adequacy

③ Risk control: establish controls such as risk limits and appropriate investment limits and implement management framework

④ Risk monitoring: monitor any indicators of exceeding limits and risk factors regularly and report the results to management and committees.

(b) Credit risk

ⅰ) Definition and management objective

Credit risk is the risk of potential economic loss or the risk of a counterparty failing to meet its contractual obligations within terms of deposits, loans, securities etc., in which funds are provided in the form of loans or bond purchases, or a legal agreement of an underlying asset at a predetermined price to be exchanged at a specific future date, due to bankruptcy of a debtor, decrease in credit ratings, counterparty default etc. The Group aims to maintain risks within the manageable level and to minimize the realization of the risk.

ii) Management principles

The Group manages credit risk based on the following core principles:

① Establish credit quality management indicators and limits for credit loans, etc. and comply with them;

② Manage credit risk by credit analysis on a regular basis;

③ Comply with the credit risk limits and investment limits; and

④ Manage assets by organizing appropriate investment portfolios and avoid concentrations in any investments.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

iii) Risk management

The Group manages various credit risks that may arise in loans, securities other than trading position, related non-operating assets, investments in associates and subsidiaries, deposits and due from banks, over-the-counter derivatives, and others.

① Risk Measurement Method

Credit risk is measured by inputting risk components according to the Group’s internal credit risk capital calculation method, and the calculation formula is as follows:

EAD(Exposure At Default) × f(PD, LGD, R, M)

Where:

EAD is exposure at default

PD is probability of default

LGD is loss given default

R is correlation

M is maturity

f is a function to calculate capital requirements outlined in the Basel

② Risk limit management and risk mitigation policy

The Group sets limits on credit allowances for each industry, affiliate, and corporate to manage credit risk. The risk management department monitors the compliance with those limits on a daily basis, the result of which is regularly reported to the management, as well as the Risk Management Committee.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

iv) Recognition and measurement of expected credit losses

① How to determine whether credit risk increases significantly after initial recognition

The Group assesses at the end of each reporting period whether the credit risk of a financial instrument has significantly increased since its initial recognition, and when assessing the significant increase in credit risk, the Group uses changes in the risk of a default occurring over the expected life of financial instrument, instead of using the changes in expected credit losses.

(i) Significant increase in credit risk

The Group considers that the credit risk of a financial asset has increased significantly after the initial recognition, if the number of days overdue for a specific exposure exceeds 30 days. The Group calculates overdue days from the earliest date when the Group has not fully received the contractual payments to be received from the borrower and the grace period granted to the borrower is not considered.

The Group periodically reviews the criteria for determining whether credit risk has increased significantly from the following points of view:

• A significant increase in credit risk shall be identified prior to the occurrence of default.

• The criteria established to judge the significant increase in credit risk shall have a more predictive power than the criteria for days of delinquency.

• As a result of applying the judgment criteria, financial instruments shall not move too frequently between the 12-month expected credit losses measurement and the lifetime expected credit losses measurement.

② Modified financial assets

If the contractual cash flows on a financial asset have been renegotiated or modified but the financial asset was not derecognized, the Group assesses whether there has been a significant increase in the credit risk of the financial instrument by comparing the risk of a default occurring at initial recognition based on the original, unmodified contractual terms and the risk of a default occurring at the reporting date based on the modified contractual terms.

Debt restructuring is a qualitative indicator of a significant increase in credit risk and the Group recognizes lifetime expected credit losses for the exposure expected to be the subject of such adjustments. If a borrower faithfully makes payments of contractual cash flows that were modified in accordance with the debt restructuring or if the borrower's internal credit rating has recovered to the level prior to the recognition of the lifetime expected credit losses, the Group recognizes the 12-month expected credit losses for that exposure again.

③ Risk of default

The Group considers a financial asset to be in default if it meets one or more of the following conditions:

• If a borrower is overdue 90 days or more from the contractual payment date,

• If the Group judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The definition of default applied by the Group generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has incurred and the extent thereof may vary.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

iv) Recognition and measurement of expected credit losses (continued)

④ Reflection of forward-looking information

The Group incorporates forward-looking information based on various sources of information when measuring expected credit losses.

⑤ Measurement of expected credit loss

The main variables used to measure expected credit loss are as follows:

• Probability of Default (PD)

• Loss Given Default (LGD)

• Exposure At Default (EAD)

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Group and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Group uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades would be adjusted, and the PD by grade is estimated by considering contract expiration of the exposure.

LGD refers to the expected loss if a borrower defaults. The Group calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Group derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying value of the asset, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

Risk factors of PD, LGD and EAD are collectively estimated.

The criteria classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if necessary. The Group uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from the experience.

⑥ Write-off of financial assets

The Group writes off a portion of or entire loan or debt security that is not expected to receive its principal and interest. In general, the Group conducts write-off when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Group and is carried out with the approval of an external institution, if necessary. Apart from write-off, the Group may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

v) Maximum exposure to credit risk

Credit risk exposure the exposure related to due from banks, loans, investments in debt securities, derivative transactions, off-balance sheet accounts such as loan commitment.

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows:

					2025
		General<br><br>(*1)			Investment-linked (*2)		Total
Due from banks and loans at amortized cost (*3)(*4):
Banks	W	1,165,427			333,521		1,498,948
Retail
- Residential mortgage		351,850			-		351,850
- Others		183,117			-		183,117
Government/Public institutions/Central bank		150,085			41,300		191,385
Corporations
- Conglomerate		706,600			205,231		911,831
- SMEs		149,981			-		149,981
- Special financing		1,509,177			-		1,509,177
		4,216,237			580,052		4,796,289
Due from banks at fair value through profit or loss:
Banks		40,862			-		40,862
Financial assets at fair value through profit or loss		7,018,631			3,778,467		10,797,098
Securities at fair value through other comprehensive income		35,608,367			-		35,608,367
Securities at amortized cost (*4)		3,958,459			-		3,958,459
Derivative assets		39,366			657		40,023
Receivables at amortized cost (*4)		1,202,726			107,160		1,309,886
Off-balance sheet accounts
Unused loan commitments		373,782			-		373,782
Capital commitments		1,316,609			-		1,316,609
		1,690,391			-		1,690,391
	W	53,775,039			4,466,336		58,241,375

(*1) This is the total amount of general accounts and principal-and-interest guaranteed retirement pension products.

(*2) This is the total amount of variable life insurance and investment-linked retirement pension products.

(*3) The due from banks at amortized cost includes cash equivalents.

(*4) The maximum exposure amount to due from banks and loans at amortized cost, securities at amortized cost, and receivables at amortized cost is the carrying amount, net of credit loss allowance, etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

v) Maximum exposure to credit risk (continued)

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows: (continued)

					2024
		General<br><br>(*1)			Investment-linked (*2)		Total
Due from banks and loans at amortized cost (*3)(*4):
Banks	W	1,099,220			291,575		1,390,795
Retail
- Residential mortgage		429,318			-		429,318
- Others		268,572			-		268,572
Government/Public institutions/Central bank		160,057			40,900		200,957
Corporations
- Conglomerate		45,188			121,954		167,142
- SMEs		168,292			-		168,292
- Special financing		1,879,706			-		1,879,706
		4,050,353			454,429		4,504,782
Due from banks at fair value through profit or loss:
Banks		35,450			-		35,450
Financial assets at fair value through profit or loss		6,240,924			3,768,210		10,009,134
Securities at fair value through other comprehensive income		37,862,492			-		37,862,492
Securities at amortized cost (*4)		3,937,616			-		3,937,616
Derivative assets		117,425			97		117,522
Receivables at amortized cost (*4)		1,106,985			114,995		1,221,980
Off-balance sheet accounts
Unused loan commitments		164,307			-		164,307
Capital commitments		1,374,078			-		1,374,078
		1,538,385			-		1,538,385
	W	54,889,927			4,337,731		59,227,658

(*1) This is the total amount of general accounts and principal-and-interest guaranteed retirement pension products.

(*2) This is the total amount of variable life insurance and investment-linked retirement pension products.

(*3) The due from banks at amortized cost includes cash equivalents.

(*4) The maximum exposure amount to due from banks and loans at amortized cost, securities at amortized cost, and receivables at amortized cost is the carrying amount, net of credit loss allowance, etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows:

		2025
		12-month expected credit loss				Lifetime expected credit loss				Total		Allowances		Net		Mitigation of credit risk<br><br>due to collateral
		Grade 1(*1)		Grade 2(*1)		Grade 2(*1)		Impaired
Due from banks and loans at amortized cost (*2):
Banks	W	1,499,822		685		-		-		1,500,507		(1,559)		1,498,948		-
Retail
- Residential mortgage		333,100		6,346		9,637		3,231		352,314		(464)		351,850		347,381
- Others		162,033		17,529		5,900		16,755		202,217		(19,100)		183,117		-
Government/Public institutions/Central bank		191,447		-		-		-		191,447		(62)		191,385		-
Corporations
- Conglomerate		856,576		55,463		-		3,592		915,631		(3,800)		911,831		-
- SMEs		140,000		10,011		-		-		150,011		(30)		149,981		9,898
- Special financing		1,421,576		-		92,241		-		1,513,817		(4,640)		1,509,177		272,845
		4,604,554		90,034		107,778		23,578		4,825,944		(29,655)		4,796,289		630,124
Securities at fair value through other comprehensive income (*3)		35,608,367		-		-		-		35,608,367		-		35,608,367		-
Securities at amortized cost		3,958,717		-		-		-		3,958,717		(258)		3,958,459		-
Receivables at amortized cost		1,304,491		107		2,214		32,749		1,339,561		(29,675)		1,309,886		1,427
	W	45,476,129		90,141		109,992		56,327		45,732,589		(59,588)		45,673,001		631,551

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments (continued)

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

(*1) Each credit quality grade refers to as follows:

Type of Borrower		Grade 1		Grade 2
Retail		Internal credit rating of 5 or above		Internal credit rating of below 5
Governments/public institutions/central bank		OECD sovereign credit rating of 6 or above		OECD sovereign credit rating of below 6
Corporations		Internal credit rating of BBB+ or above		Internal credit rating of below BBB+

(*2) The due from banks at amortized cost includes cash equivalents.

(*3) Provision for credit loss allowance for securities at fair value through other comprehensive income amounted to W7,145 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments (continued)

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		12-month expected credit loss				Lifetime expected credit loss				Total		Allowances		Net		Mitigation of credit risk<br><br>due to collateral
		Grade 1(*1)		Grade 2(*1)		Grade 2(*1)		Impaired
Due from banks and loans at amortized cost (*2):
Banks	W	1,392,401		470		-		-		1,392,871		(2,076)		1,390,795		-
Retail
- Residential mortgage		405,191		9,175		12,042		3,330		429,738		(420)		429,318		423,658
- Others		241,302		26,824		10,756		14,644		293,526		(24,954)		268,572		-
Government/Public institutions/Central bank		201,024		-		-		-		201,024		(67)		200,957		-
Corporations
- Conglomerate		147,072		17,944		3,591		-		168,607		(1,465)		167,142		-
- SMEs		158,427		9,927		-		-		168,354		(62)		168,292		9,857
- Special financing		1,629,475		-		259,483		-		1,888,958		(9,252)		1,879,706		245,318
		4,174,892		64,340		285,872		17,974		4,543,078		(38,296)		4,504,782		678,833
Securities at fair value through other comprehensive income (*3)		37,862,492		-		-		-		37,862,492		-		37,862,492		-
Securities at amortized cost		3,937,870		-		-		-		3,937,870		(254)		3,937,616		-
Receivables at amortized cost		1,215,975		222		2,498		41,349		1,260,044		(38,064)		1,221,980		1,167
	W	47,191,229		64,562		288,370		59,323		47,603,484		(76,614)		47,526,870		680,000

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments (continued)

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

(*1) Each credit quality grade refers to as follows:

Type of Borrower		Grade 1		Grade 2
Retail		Internal credit rating of 5 or above		Internal credit rating of below 5
Governments/public institutions/central bank		OECD sovereign credit rating of 6 or above		OECD sovereign credit rating of below 6
Corporations		Internal credit rating of BBB+ or above		Internal credit rating of below BBB+

(*2) The due from banks at amortized cost includes cash equivalents.

(*3) Provision for credit loss allowance for securities at fair value through other comprehensive income amounted to W8,207 million.

Impairment information related to credit risk of off-balance sheet accounts

Impairment information related to credit risk of unused loan commitments and capital commitments as of December 31, 2025 and 2024 are as follows:

		2025				2024
		Credit risk exposure for<br><br>12-month expected credit loss		Lifetime expected credit loss		Credit risk exposure for<br><br>12-month expected credit loss		Lifetime expected<br><br>credit loss
Grade 1	W	1,690,391		-		1,538,143		-
Grade 2		-		-		-		242
	W	1,690,391		-		1,538,143		242

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

vii) Concentration by industry sector

An analysis of concentration by industry sector for financial instruments held, net of allowance, as of December 31, 2025 and 2024 are as follows:

		2025
		Finance and insurance		Manufacturing		Retail and wholesale		Real estate and service		Construction service		Hotel and food service		Others		Retail		Total
Due from banks and loans at amortized cost (*):
Banks	W	1,498,948		-		-		-		-		-		-		-		1,498,948
Retail
- Residential mortgage		-		-		-		-		-		-		-		351,850		351,850
- Others		-		-		-		-		-		-		-		183,117		183,117
Government/Public institutions/Central bank		149,949		-		-		-		-		-		41,436		-		191,385
Corporations
- Conglomerate		891,909		19,922		-		-		-		-		-		-		911,831
- SMEs		140,005		-		-		9,898		-		-		78		-		149,981
- Special financing		194,120		13,796		-		716,360		-		-		584,901		-		1,509,177
		2,874,931		33,718		-		726,258		-		-		626,415		534,967		4,796,289
Due from banks at fair value through profit or loss		40,862		-		-		-		-		-		-		-		40,862
Securities at fair value through profit or loss		832,638		39,195		9,903		66,018		4,707		-		9,844,637		-		10,797,098
Securities at fair value through other comprehensive income		6,136,352		856,204		125,364		934,951		346,947		12,345		27,196,204		-		35,608,367
Securities at amortized cost		168,098		-		-		117,502		9,996		-		3,662,863		-		3,958,459
Derivative assets		40,023		-		-		-		-		-		-		-		40,023
Off-balance sheet accounts
Unused loan commitments		26,180		-		-		305,867		-		-		41,735		-		373,782
Capital commitments		-		-		-		-		-		-		1,316,609		-		1,316,609
	W	10,119,084		929,117		135,267		2,150,596		361,650		12,345		42,688,463		534,967		56,931,489

(*) Due from banks at amortized cost includes cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

vii) Concentration by industry sector (continued)

An analysis of concentration by industry sector for financial instruments held, net of allowance, as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Finance and insurance		Manufacturing		Retail and wholesale		Real estate and service		Construction service		Hotel and food service		Others		Retail		Total
Due from banks and loans at amortized cost (*):
Banks	W	1,390,795		-		-		-		-		-		-		-		1,390,795
Retail
- Residential mortgage		-		-		-		-		-		-		-		429,318		429,318
- Others		-		-		-		-		-		-		-		268,572		268,572
Government/Public institutions/Central bank		159,941		-		-		-		-		-		41,016		-		200,957
Corporations
- Conglomerate		144,428		19,921		-		-		-		-		2,793		-		167,142
- SMEs		883		5,974		-		139,998		-		9,857		11,580		-		168,292
- Special financing		13,347		109,102		-		939,088		105,711		-		712,458		-		1,879,706
		1,709,394		134,997		-		1,079,086		105,711		9,857		767,847		697,890		4,504,782
Due from banks at fair value through profit or loss		35,450		-		-		-		-		-		-		-		35,450
Securities at fair value through profit or loss		845,686		74,144		-		77,233		7,916		-		9,004,155		-		10,009,134
Securities at fair value through other comprehensive income		6,972,763		1,030,373		203,160		1,135,078		442,795		12,160		28,066,163		-		37,862,492
Securities at amortized cost		165,728		-		-		118,643		9,996		-		3,643,249		-		3,937,616
Derivative assets		117,522		-		-		-		-		-		-		-		117,522
Off-balance sheet accounts
Unused loan commitments		-		-		-		98,777		22,672		-		42,858		-		164,307
Capital commitments		-		-		-		-		-		-		1,374,078		-		1,374,078
	W	9,846,543		1,239,514		203,160		2,508,817		589,090		22,017		42,898,350		697,890		58,005,381

(*) Due from banks at amortized cost includes cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

viii) Concentration by geographic location

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows:

		2025
		Korea		USA		UK		Japan		Vietnam		Other		Total
Due from banks and loans at amortized cost (*)
Banks	W	1,135,207		193,760		3,314		101		88,817		77,749		1,498,948
Retail
- Residential mortgage		351,850		-		-		-		-		-		351,850
- Others		183,117		-		-		-		-		-		183,117
Government/Public institutions/Central bank		191,385		-		-		-		-		-		191,385
Corporations
- Conglomerate		898,387		8,394		102		747		-		4,201		911,831
- SMEs		149,981		-		-		-		-		-		149,981
- Special financing		1,509,177		-		-		-		-		-		1,509,177
		4,419,104		202,154		3,416		848		88,817		81,950		4,796,289
Due from banks at fair value through profit or loss		-		40,862		-		-		-		-		40,862
Securities at fair value through profit or loss		8,331,524		1,524,052		91,429		25,068		-		825,025		10,797,098
Securities at fair value through other comprehensive income		31,660,305		2,202,585		48,800		109,450		-		1,587,227		35,608,367
Securities at amortized cost		3,950,344		-		-		-		8,115		-		3,958,459
Derivative assets		33,437		550		532		-		-		5,504		40,023
Off-balance sheet accounts
Unused loan commitments		373,782		-		-		-		-		-		373,782
Capital commitments		1,278,879		11,195		-		-		-		26,535		1,316,609
	W	50,047,375		3,981,398		144,177		135,366		96,932		2,526,241		56,931,489

(*) Due from banks at amortized cost includes cash and cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

viii) Concentration by geographic location (continued)

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Korea		USA		UK		Japan		Vietnam		Other		Total
Due from banks and loans at amortized cost (*)
Banks	W	1,069,278		71,222		-		103		105,753		144,439		1,390,795
Retail
- Residential mortgage		429,318		-		-		-		-		-		429,318
- Others		268,572		-		-		-		-		-		268,572
Government/Public institutions/Central bank		200,957		-		-		-		-		-		200,957
Corporations
- Conglomerate		152,416		10,137		149		762		-		3,678		167,142
- SMEs		168,292		-		-		-		-		-		168,292
- Special financing		1,879,706		-		-		-		-		-		1,879,706
		4,168,539		81,359		149		865		105,753		148,117		4,504,782
Due from banks at fair value through profit or loss		-		35,450		-		-		-		-		35,450
Securities at fair value through profit or loss		8,343,840		1,186,540		82,446		24,990		-		371,318		10,009,134
Securities at fair value through other comprehensive income		34,845,378		1,587,667		45,250		-		-		1,384,197		37,862,492
Securities at amortized cost		3,931,915		-		-		-		5,701		-		3,937,616
Derivative assets		117,425		52		45		-		-		-		117,522
Off-balance sheet accounts
Unused loan commitments		164,307		-		-		-		-		-		164,307
Capital commitments		1,331,839		12,871		-		-		-		29,368		1,374,078
	W	52,903,243		2,903,939		127,890		25,855		111,454		1,933,000		58,005,381

(*) Due from banks at amortized cost includes cash and cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(c) Market risk

i) Definition and management objective

Market risk refers to the risk of changes in the market value of the Group’s asset portfolio due to changes in market prices, such as stock prices, interest rates and foreign exchange rates; and the variable insurance guarantee risk. The Group aims to maintain these market risks within a certain range and minimize the realization of risks.

ii) Management Principles

The Group’s risk management principles for market risk are as follows:

① Manage through periodic forecasts for financial market variables such as interest rates, stock prices, and exchange rates;

② Comply with market risk limits and investment limits;

③ Operate stop-loss limits to control risks within a certain range, and obtain a resolution on establishing or amending the stop-loss criterion from the Risk Management Committee; and

④ Compose and manage a diversified portfolio and avoids concentrated investments.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(c) Market risk (continued)

iii) Risk management

The Group manages market risks, from a trading position, on securities, derivatives, assets and liabilities denominated in foreign currencies, and assets and liabilities of variable insurance.

① Market risk measurement technique

Market risk VaR (Value At Risk) is measured using the Delta-Normal method based on the volatility of price, interest rate, and exchange rate-related assets over the preceding one year, aiming to estimate the maximum potential loss that could occur within the target period at the specified confidence level. The variable insurance guarantee risk amount is measured using shock scenario methodology.

② Risk management and risk reduction policy

The Group regulates various limits, including the VaR limit, to manage market risk. Market risk limits are assigned on a daily basis by VaR to check business compliance. Risk management departments regularly monitor whether the operation department complies with these limits and report them to the management and Risk Management Committee.

③ Foreign exchange risk

Since the Group holds foreign currency assets, it is exposed to the risk of dollar and other foreign currency-related exchange rate volatilities.

The Group calculates the exposure by converting the foreign currency assets and contractual amounts held at the exchange rate at the end of the reporting period, and hedges foreign currency assets to avoid currency risks arising from foreign investment. Accordingly, through currency swaps or currency forward contracts when investing in foreign bonds, the Group offsets any gains or losses arising from foreign exchange rate fluctuations that may occur during future investments.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(c) Market risk (continued)

iv) Types of market risk

The details of the VaR for the trading positions held by the Group as of December 31, 2025 and 2024 are as follows:

		2025
		Average		Maximum		Minimum		December 31
Interest rate risk	W	409		810		128		145
Stock price risk		12,893		17,365		6,952		17,365
Foreign exchange risk		63,160		73,470		53,534		69,913
Option volatility risk		193		559		128		128
Total	W	76,655		92,204		60,742		87,551

(*) As of December 31, 2025, the market risk exposure for investment-linked assets held is W5,687,547 million and the minimum guaranteed risk amount that may have an impact on the Group calculated using the internal shock scenario method is W264,326 million.

		2024
		Average		Maximum		Minimum		December 31
Interest rate risk	W	1,378		2,204		683		683
Stock price risk		8,676		12,634		4,415		11,523
Foreign exchange risk		52,117		62,105		40,082		55,467
Option volatility risk		966		1,287		121		559
Total	W	63,137		78,230		45,301		68,232

(*) As of December 31, 2024, the market risk exposure for investment-linked assets held is W4,956,743 million and the minimum guaranteed risk amount that may have an impact on the Group calculated using the internal shock scenario method is W280,577 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(c) Market risk (continued)

v) Composition of foreign currency assets and liabilities by currency

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows:

(In millions of USD, EUR, AUD, SEK, VND, and Won)

		2025
								AUD				SEK				VND				Others (*1)				Total
		Foreign currency	KRW equivalent		Foreign currency	KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent
Assets:
Cash and due from banks at amortized cost	W	130	186,981		3	5,644		1		1,275		-		-		1,652,117		90,206		4		5,917		290,023
Due from banks at FVTPL		28	40,862		-	-		-		-		-		-		-		-		-		-		40,862
Securities at FVTPL		1,639	2,351,007		38	63,010		6		5,859		-		-		-		-		61		87,249		2,507,125
Securities at FVOCI		2,048	2,938,682		360	606,976		655		629,854		3,501		546,039		-		-		110		158,250		4,879,801
Securities at amortized cost		-	-		-	-		-		-		-		-		150,000		8,190		-		-		8,190
Receivables at amortized cost		201	288,082		6	10,708		11		10,140		68		10,673		145,905		7,966		1		1,611		329,180
	W	4,046	5,805,614		407	686,338		673		647,128		3,569		556,712		1,948,022		106,362		176		253,027		8,055,181
Liabilities:
Other financial liabilities	W	-	346		-	-		-		-		-		-		76,561		4,180		-		314		4,840
	W	-	346		-	-		-		-		-		-		76,561		4,180		-		314		4,840
On-balance, net exposure	W	4,046	5,805,268		407	686,338		673		647,128		3,569		556,712		1,871,461		102,182		176		252,713		8,050,341
Off-balance derivative net exposure (*2)		(3,195)	(4,584,740)		(466)	(785,119)		(764)		(733,880)		(4,480)		(698,702)		-		-		(149)		(214,209)		(7,016,650)
Net position	W	851	1,220,528		(59)	(98,781)		(91)		(86,752)		(911)		(141,990)		1,871,461		102,182		27		38,504		1,033,691

(*1) The foreign currency amount is denominated in USD.

(*2) Derivative contract amounts

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(c) Market risk (continued)

v) Composition of foreign currency assets and liabilities by currency (continued)

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows: (continued)

(In millions of USD, EUR, AUD, SEK, VND, and Won)

		2024
								AUD				SEK				VND				Others (*1)				Total
		Foreign currency	KRW equivalent		Foreign currency	KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent
Assets:
Cash and due from banks at amortized cost	W	41	59,893		9	14,366		1		825		-		-		1,864,702		107,593		1		2,032		184,709
Due from banks at FVTPL		24	35,450		-	-		-		-		-		-		-		-		-		-		35,450
Securities at FVTPL		1,069	1,570,566		29	44,780		7		6,067		-		-		-		-		53		78,287		1,699,700
Securities at FVOCI		1,668	2,451,668		330	504,053		626		572,342		3,687		491,250		-		-		31		45,250		4,064,563
Securities at amortized cost		-	-		-	-		-		-		-		-		100,000		5,770		-		-		5,770
Receivables at amortized cost		139	203,945		5	7,754		10		8,912		68		9,117		148,692		8,580		-		615		238,923
	W	2,941	4,321,522		373	570,953		644		588,146		3,755		500,367		2,113,394		121,943		85		126,184		6,229,115
Liabilities:
Other financial liabilities	W	4	5,591		-	-		-		-		-		-		-		-		-		-		5,591
	W	4	5,591		-	-		-		-		-		-		-		-		-		-		5,591
On-balance, net exposure	W	2,937	4,315,931		373	570,953		644		588,146		3,755		500,367		2,113,394		121,943		85		126,184		6,223,524
Off-balance derivative net exposure (*2)		(2,756)	(4,051,843)		(413)	(631,128)		(708)		(646,718)		(4,480)		(596,833)		-		-		(59)		(87,109)		(6,013,631)
Net position	W	181	264,088		(40)	(60,175)		(64)		(58,572)		(725)		(96,466)		2,113,394		121,943		26		39,075		209,893

(*1) The foreign currency amount is denominated in USD.

(*2) Derivative contract amounts

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(d) Interest rate risk

i) Definition and management objective

Interest rate risk refers to the risk of a decline in net asset value or a decrease in net interest income resulted from unfavorable changes in interest rates or maturity mismatch between assets and liabilities. The Group aims to manage changes in profits, resulting from changes in interest rates, within the acceptable levels and to maintain stable net asset value.

ii) Risk management principles

The Group’s risk management principles for interest rate risk are as follows:

① Manage through periodic forecasts for market variables related to interest rates;

② Comply with interest rate risk limits and investment limits; and

③ Measures and manages risks through duration gap analysis, net asset value simulations, and maximum loss estimates.

iii) Risk management

The Group manages interest rate risks in interest-bearing assets (non-trading assets invested for the purpose of receiving interests and derivatives held for hedging) and interest-bearing liabilities (insurance contract liabilities and borrowings).

① Risk measurement method

The risk is measured by (i) the fair value of net assets at the interest rate level at the reporting date measured using a number of stochastic interest rate scenarios and deterministic scenarios generated based on economic scenarios, less (ii) the fair value of net assets based on a scenario at the 99.5% confidence level.

② Risk limit management and risk mitigation policy

The Group sets limits for interest rate risk management and the risk management department monitors the compliance with the limits on a monthly basis, the result of which is regularly reported to management, as well as the Risk Management Committee.

iv) Current status of risk

As of December 31, 2025, the interest risk for the non-trading position held by the Group is W1,244,177 million, which decreased by W458,491 million as compared to December 31, 2024 primarily due to the increases in market interest rates, the reflection of asset decomposition for assets included in indirect investment vehicles, the execution of bond forward contracts and reinsurance ceded under coinsurance arrangements, and the changes in actuarial and economic assumptions.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(e) Liquidity risk

i) Definition and management objective

Liquidity risk refers to the risk that arises from the inability to respond to situation such as maturity mismatch between assets and liabilities or unexpected fund outflows. The Group aims to (i) prevent insolvency due to lack of funds, (ii) minimize the risk of disposing assets held or borrowing funds abnormally or losing investment opportunities that resulted from a maturity mismatch between financing and operating, and (iii) maintain stable profitability.

ii) Management principles

The Group’s risk management principles of liquidity risk are as follows:

① Retain management strategies including liquidity risk management goals, management policies, and internal control systems;

② Establish a framework to calculate and manage an actual liquidity gap that reflects actual maturity of assets and liabilities, real cash flows based on changes in consumer behavior (such as overdue), off-balance sheet transactions, new transaction or financing amounts;

③ Manage risks by conducting a liquidity forecast analysis on a regular basis, and avoid concentration of financial and operational activities at a certain point of time;

④ Comply with liquidity risk limits; and

⑤ Establish risk management plans for a liquidity crisis.

iii) Risk management

The Group manages liquidity risks in all items that accompany cash inflows and outflows such as assets and liabilities on the balance sheet and off-balance sheet transactions.

① Risk measurement method

The risk of insufficient fund is measured based on the 3-month real liquidity gap.

② Risk limit management and risk mitigation policy

The Group sets and monitors various indicators for liquidity risk management and regularly reports them to the management and the Risk Management Committee. The Group prepares for a liquidity crisis by establishing an emergency financing plan to secure liquidity in case of an unexpected liquidity shortage.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(e) Liquidity risk (continued)

iv) Contractual maturities for financial instruments and off-balance sheet accounts

Contractual maturities for financial instruments and off-balance sheet accounts as of December 31, 2025 and 2024 are as follows:

			2025
		Due in<br><br>1 month<br><br>or less		Due after<br><br>1 month<br><br>through<br><br>3 months		Due after<br><br>3 months<br><br>through<br><br>6 months		Due after<br><br>6 months<br><br>through<br><br>1 year		Due after<br><br>1 year<br><br>through<br><br>5 years		Due after<br><br>5 years		Total
Non-derivative financial assets:
Cash and due from banks at amortized cost	W	1,302,293		182,605		2,248		7,378		229,129		992,174		2,715,827
Due from banks at fair value through profit or loss		-		-		-		-		-		40,862		40,862
Securities at fair value through profit or loss		5,213,725		27,763		157,840		358,645		2,141,194		4,807,854		12,707,021
Securities at fair value through other comprehensive income		91,593		128,245		181,257		298,874		5,049,067		29,961,282		35,710,318
Securities at amortized cost		8,776		787,207		10,258		27,112		501,527		3,735,253		5,070,133
Loans at amortized cost		60,174		122,086		113,849		204,935		792,775		1,559,894		2,853,713
Receivables at amortized cost		113,710		87,926		9,608		102,453		354,285		673,995		1,341,977
	W	6,790,271		1,335,832		475,060		999,397		9,067,977		41,771,314		60,439,851
Non-derivative financial liabilities:
Borrowings	W	-		-		-		-		-		32,366		32,366
Debentures		-		8,150		8,150		16,300		882,900		-		915,500
Other financial liabilities(*1)		199,820		43,403		10,243		415,427		29,043		14		697,950
Lease liabilities(*1)		3,644		5,395		9,968		18,144		39,702		3,773		80,626
Investment contract<br><br>liabilities		189,704		15,843		91,042		159,182		1,085,913		-		1,541,684
	W	393,168		72,791		119,403		609,053		2,037,558		36,153		3,268,126
Derivatives:
Cash inflows(*2)	W	217,582		201,977		515,344		716,202		4,316,721		702,040		6,669,866
Cash outflows(*2)		(267,106)		(1,141,045)		(666,191)		(852,985)		(7,373,361)		(796,258)		(11,096,946)
	W	(49,524)		(939,068)		(150,847)		(136,783)		(3,056,640)		(94,218)		(4,427,080)
Off-balance sheet accounts:
Unused loan<br><br>commitments	W	373,782		-		-		-		-		-		373,782
Capital commitments		1,316,609		-		-		-		-		-		1,316,609
	W	1,690,391		-		-		-		-		-		1,690,391

(*1) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities and other financial liabilities.

(*2) Derivatives for hedging are contractual amounts, including principal and interest, while derivatives for trading are at the carrying amounts.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(e) Liquidity risk (continued)

iv) Contractual maturities for financial instruments and off-balance sheet accounts (continued)

Contractual maturities for financial instruments and off-balance sheet accounts as of December 31, 2025 and 2024 are as follows: (continued)

			2024
		Due in<br><br>1 month<br><br>or less		Due after<br><br>1 month<br><br>through<br><br>3 months		Due after<br><br>3 months<br><br>through<br><br>6 months		Due after<br><br>6 months<br><br>through<br><br>1 year		Due after<br><br>1 year<br><br>through<br><br>5 years		Due after<br><br>5 years		Total
Non-derivative financial assets:
Cash and due from banks at amortized cost	W	546,713		134,018		2,369		10,412		247,431		965,514		1,906,457
Due from banks at fair value through profit or loss		-		-		-		-		-		35,450		35,450
Securities at fair value through profit or loss		797,516		29,553		52,179		232,553		2,673,033		7,412,833		11,197,667
Securities at fair value through other comprehensive income		101,019		188,783		301,887		518,381		5,815,942		31,097,895		38,023,907
Securities at amortized cost		6,041		43,499		5,435		47,290		1,286,246		3,809,549		5,198,060
Loans at amortized cost		57,514		183,341		143,029		390,108		924,467		1,802,924		3,501,383
Receivables at amortized cost		140,057		34,640		4,740		107,750		348,015		627,932		1,263,134
	W	1,648,860		613,834		509,639		1,306,494		11,295,134		45,752,097		61,126,058
Non-derivative financial liabilities:
Borrowings	W	-		-		-		-		-		23,543		23,543
Debentures		-		3,900		3,900		7,800		339,000		-		354,600
Other financial liabilities(*1)		185,368		55,451		8,941		225,460		24,630		19		499,869
Lease liabilities(*1)		3,483		6,699		9,956		18,823		53,449		4,981		97,391
Investment contract<br><br>liabilities		106,106		201,023		286,458		404,864		334,017		-		1,332,468
	W	294,957		267,073		309,255		656,947		751,096		28,543		2,307,871
Derivatives:
Cash inflows(*2)	W	49,753		181,090		447,126		797,089		3,796,707		340,458		5,612,223
Cash outflows(*2)		(59,507)		(290,306)		(515,647)		(916,425)		(6,778,137)		(504,308)		(9,064,330)
	W	(9,754)		(109,216)		(68,521)		(119,336)		(2,981,430)		(163,850)		(3,452,107)
Off-balance sheet accounts:
Unused loan<br><br>commitments	W	164,307		-		-		-		-		-		164,307
Capital commitments		1,374,078		-		-		-		-		-		1,374,078
	W	1,538,385		-		-		-		-		-		1,538,385

(*1) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities and other financial liabilities.

(*2) Derivatives for hedging are contractual amounts, including principal and interest, while derivatives for trading are at the carrying amounts.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management

(a) Overview of insurance risk

Insurance risk is the likelihood that insured events occur and the uncertainty of the total amount and timing of claims for the insured events occurred. The main risk covered by insurance contracts is the risk that the actual claim or benefit payment will exceed the accumulated insurance liability. This risk can occur for the following reasons:

① Frequency risk: a possibility that the number of occurrences of the insured event is different from the expected number

② Severity risk: a possibility that the cost of an incident may be different from the expected cost level

By experience, when there are more similar insurance contracts or they are more diversified, the less likely it is that abnormal effects from some contracts will occur. The Group takes this into account when underwriting contracts and strives to form a sufficiently large and diversified group of contracts.

Insurance risk includes a lack of risk diversification and relates to geographical location and the nature of the policyholder as well as to the diversification of risk forms or sizes.

If the insurance contract covers death, a catastrophe affects the frequency the most and can affect the frequency of death earlier than expected due to a wide range of causes such as eating habits, smoking, and exercise habits, etc. In addition, if the coverage is survival, medical technology and social conditions can increase the survival rate. The frequency may also be affected by excessive concentration in residential areas of policyholders.

Insurance accidents in life insurance include not only the death of the policyholders (insured) but also survival, disability and hospitalization.

The Group basically classifies the Group's insurance products into individual insurance and group insurance according to the policyholder. Group insurance means a contract under which the insured belongs to a group of a certain size or larger and in which the policyholder is the representative of the group or organization. The group insurance can be divided into savings and protections. Protection insurance means insurance in which the sum of benefits paid for survival at the base age does not exceed the premium already paid; savings insurance is defined as insurance, except for protection insurance, in which the sum of benefits paid for survival exceeds the premium already paid. Individual insurance can be classified into life insurance in which the insured's death is insured, survival insurance in which the life is insured for a certain period of time, and endowment insurance in which life insurance and survival insurance are mixed.

Life insurance products can also be divided into guaranteed fixed rates, floating rates, interest accreted rate linked, and variable types by the applying term structures of interest types.

In the guaranteed fixed interest type, since the expected rate does not change from the time the policyholder enters into the contract to the end of the insurance period, the Group assumes the interest rate risk if the asset management return rate or market interest rate is lower than the expected rate. Floating interest rate type divides the net insurance premium into the guaranteed portion and the reserve portion; the guaranteed portion is applied with the predetermined expected rate, and the reserve portion changes based on the reserve rate for policy reserve according to asset management return rate, which makes partial hedge to interest rate risk, but the Group assumes some interest rate risk from the changes of asset management return rate, etc. since the minimum reserve rate for policy reserve is predetermined.

The Group uses acquisition strategies and reinsurance strategies to manage insurance risk of uncertainties of the total amount and timing of insurance claims paid due to insured events.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management (continued)

(a) Overview of the insurance risk (continued)

① Acceptance strategy

Acceptance strategy means diversifying the type of risk or the level of claims from that are accepted insurance policies. For example, the Group can balance mortality and survival risks. In addition, the selection of policyholders through regular health check-ups is one of the major acceptance strategies.

② Reinsurance strategy

The risk of reinsurance contracts held to the Group is based on the accepted insurance contracts, which can be the total amount of risk or risk per contract on a per capita basis or per contract basis. In principle, the reinsurance method provides the risk premium excess reinsurance, but other methods may be used within the scope of the relevant laws as required. The degree of reinsurance held by the Group shall be determined by considering the Group's assets, contract conditions, risk level, and technology for selecting the contract.

Insurance risk can also be affected by the policyholder's right to terminate the contract or exercise annuity conversion rights to reduce or not pay the full premium. As a result, insurance risks may be affected by the policyholder's actions and decisions. The Group's insurance risk can be estimated on the assumption that the policyholder is reasonable. For example, a person who is worse than a person in good health would have less intention of terminating insurance that covers death. These factors are also reflected in the assumptions about the Group's insurance liabilities.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management (continued)

(b) Insurance risk management policy

i) Measurement of Insurance Risk

Unlike other financial instruments, life insurance companies' insurance policies have the characteristics of long-term contracts, which can be exposed to insurance risk that may arise due to an increase in actual claim payments than the risk rate determined at the time of development of the product and interest rate risk that may arise due to differences in interest rates and maturities between insurance liabilities and asset management.

The purpose of the Group’s risk management is to generate long-term stable growth and profits by proactively preventing and systematically managing the various risks that may arise in the course of management activities, reflecting these uncertain financial environments and the characteristics of life insurance products with long-term attributes.

The Group divides insurance risks arising from life insurance contracts into six sub-risks: death risk, longevity risk, disability/disease risk, cancellation risk, operating expense risk, and catastrophe risk. The risk amount for each sub-risk is measured on assets and liabilities that may directly or indirectly cause loss to the Group in the event of changes in actuarial assumptions, and is calculated based on the net asset value through the shock scenario method or risk coefficient method for each sub-risk.

The shock scenario method, one of the insurance risk measurement methods, is a method of calculating the amount of change in net asset value when applying a scenario in which the basic assumptions used for market valuation of assets or liabilities change. On the other hand, the risk coefficient method is a method that calculates the amount by multiplying a specific exposure by a specified risk coefficient, and is suitable for risk amounts that have short maturity or do not have large changes in net asset value during market valuation. In addition, the Group calculates the life insurance risk amount considering the diversification effect by adding the risk amount calculated for each sub-risk, reflecting the correlation coefficient between the sub-risks.

ii) Insurance risk management organization and management method

The Group measures the statutory minimum level of capital based on the life insurance risk amount and manages it within the allowable range. For this purpose, the Group establishes basic principles of risk management and establishes and implements regulations and management systems to implement them. In addition, the Group supports decision-making related to various risks through the Risk Management Committee and risk management organization, and prepare risk management procedures to identify and manage risks in a timely manner.

In general, risk management procedures are to recognize exposed risks, measure their size, set acceptable limits, monitor them regularly to report to management, and efficiently control and manage risks in case they exceed their limits.

Management methods by risk type are as follows:

① Insurance risk management

The Group develops insurance products with proper profitability by setting the profitability guidelines from the time of product development, establishes and operates the acceptance policy to prevent reverse selection, running the claim-screening policy to make claim payments.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management (continued)

(b) Insurance risk management policy (continued)

ii) Insurance risk management organization and management method (continued)

② Interest rate risk management

The Group establishes a guideline and consider the market interest rate and asset management return rate to determine the published interest rate and expected interest rate within the guidelines. The Group also establishes the asset management strategy considering the interest rate level and maturity of liabilities; establishes a long-term target portfolio by comprehensively considering the risk level and rate of return of operating assets after analyzing the properties of long-term insurance liabilities, and sets a viable portfolio as a guideline every year to allocate and manage assets.

③ Liquidity risk management

The Group inspects and manages the amount of claims paid insurance and liquid assets periodically.

④ Equity price risk management

Equity price risk is managed in accordance with established management principles, including periodic forecasting, compliance with risk limits and investment limits, and the establishment and operation of appropriate portfolios. In addition, equity price risk is measured periodically and monitored by the risk management department, and the results are reported to management and the Risk Management Committee. Detailed information on equity price risk management is disclosed in Note 5 ‘Financial risk management.’

(c) Korean Insurance Capital Standard(K-ICS)

K-ICS is an equity capital system that precisely evaluates risk and financial soundness by evaluating the assets and liabilities of insurance companies to market so that they can be applied under the financial statements prepared in accordance with K-IFRS 1117 on insurance contracts. To maintain consistency in mark-to-market valuation and ensure consistency with international capital regulations, the supervisory authorities introduced K-ICS based on mark-to-market valuation, which improves the quality of insurance companies' capital by calculating available and required capital in line with economic substance. This is a system designed to encourage improvement and strengthen risk management.

With the introduction of K-ICS, the supervisory authorities have established standards for preparing a financial position statement based on soundness supervision standards to separately calculate assets and liabilities that meet the purpose of supervision and at the same time substantially reflect the risks of insurance companies. In the K-ICS, the available capital, or solvency amount, is measured based on the basic capital and supplementary capital classified by the loss absorption capacity of the net asset amount in the statement of financial position based on soundness supervision standards evaluated at market price, and there are some restrictions on loss compensation. Supplementary capital, defined as having, can be reflected in the solvency amount up to 50% of the required capital. In addition, the required capital under the K-ICS, that is, the solvency standard amount, refers to the amount of potential losses that may occur in the insurance company over the next year. Specifically, the K-ICS divides the risks exposed due to insurance contract underwriting and asset management into five risks: life and long-term non-life insurance risk, general non-life insurance risk, market risk, credit risk, and operational risk. Under the 99.5% confidence level, the solvency standard amount is required to be measured by calculating the maximum loss that can occur over the next year using the shock scenario method.

Under the K-ICS, the risk-based capital ratio is calculated by dividing the solvency amount by the solvency standard amount. If the insurance company's solvency ratio is less than 100%, it indicates that the solvency standard amount measured by the potential loss amount cannot be covered with capital, which means that the insurance company's capital soundness has become poor, and the supervisory authority must comply with the Regulations on Supervision of Insurance Business. Accordingly, insurance companies with a solvency ratio of less than 100% are required to take timely corrective actions such as management improvement recommendations, management improvement requests, or management improvement orders. As such, the new solvency system is a system in which the supervisory authorities seek to protect policyholders by supervising the capital adequacy and risk management capabilities of insurance companies.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance Risk management (continued)

(d) Financial risks related to insurance contracts

Investment contracts that include insurance contracts and discretionary participation feature may be exposed to financial risks although it is an insurance liability, and the form of exposure is as follows:

① Credit risk

Credit risk refers to the risk of loss resulting from the borrower's failure to repay a loan or meet contractual obligations. The Group's reinsurance assets are exposed to credit risk as assets that may incur losses if the reinsurer defaults at the time of receipt of the claims and receivables.

② Interest rate risk

Interest rate risk means the risk that arises when the Group's financial position fluctuates unfavorably due to the effect of interest rates on assets and liabilities. The Group manages matched assets and liabilities for each portfolio to minimize the impact of mismatches between assets and liabilities caused by interest rate fluctuations, thus reducing the risk.

③ Liquidity risk

Liquidity risk refers to the risk that assets and liabilities are subject to inconsistency or failure to respond to unexpected cash outflows. Therefore, future cash outflows from investment contracts, including insurance liabilities which account for most of the Group's liabilities and discretionary participation features, are factors used to determine the level of risk associated with the Group's liquidity.

The purpose of the Group's management of liquidity risk is to maintain sufficient liquidity to prepare for repayments arising from insurance contracts under normal circumstances or when market shocks occur. The Group's main liquidity risk management methods are as follows:

• Regularly inspect and manage the amount of insurance payments and liquid assets

• Maintain and manage a portfolio comprised of assets that can be relatively easily liquidated in preparation for unexpected disruptions in financing.

• Monitoring liquidity ratios by running liquidity stress tests

• Establishment of asset liability management strategy considering insurance contract liability cash flow

④ Market risk

Market risk refers to the risk of loss arising when the Group's financial position fluctuates unfavorably due to adverse price fluctuations such as stock prices and exchange rates. The Group carries out insurance contract transactions denominated in foreign currencies and is therefore exposed to exchange rate fluctuations. Exposure to exchange rate fluctuations is managed through foreign exchange forward contracts and interest rate swaps between different currencies.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(e) Concentration of insurance risk

i) The concentration of insurance risks (based on the fulfilment cash flows) by region as of December 31, 2025 and 2024 are as follow:

		2025
		Insurance contracts
		Participating		Non-Participating		Variable		Reinsurance contracts		Total
Domestic	W	4,959,061		29,808,665		5,591,163		53,048		40,411,937
International		-		(849)		-		-		(849)
	W	4,959,061		29,807,816		5,591,163		53,048		40,411,088
		2024
---	---	---	---	---	---	---	---	---	---	---
		Insurance contracts
		Participating		Non-Participating		Variable		Reinsurance contracts		Total
Domestic	W	5,200,167		31,160,425		4,834,945		345,177		41,540,714
International		-		(1,341)		-		-		(1,341)
	W	5,200,167		31,159,084		4,834,945		345,177		41,539,373

ii) The amount of foreign currency insurance liabilities (based on the fulfilment cash flows) as of December 31, 2025 and 2024 are as follow:

(In thousands of USD and EUR, and		2025						2024
in millions of VND and won)		Foreign currency amount		KRW converted amount			Foreign currency amount			KRW converted amount
Foreign Currency	W	279,946		401,695			168,209			247,267
Insurance Liabilities		110		185			119			182
- Non-participating	VND	(15,540)		(849)			(23,242)			(1,341)
	W			401,031						246,108

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows:

i) Participating insurance contracts

		2025
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	4,738,480		130,865		-		-
Mortality rate		increased by 3.27%		4,732,654		127,293		9,398		(1,887)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		4,742,230		126,951		165		115
Long-term property and other		increased by 4.19%		4,738,480		130,865		-		-
Lapse rate(increase)		increased by 9.16%		4,726,618		130,294		12,433		(6,606)
Lapse rate(decrease)		decreased by 9.16%		4,750,500		131,545		(12,700)		6,861
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		4,743,228		128,161		(2,044)		611

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	4,979,280		118,533		-		-
Mortality rate		increased by 3.27%		4,974,196		114,164		9,453		(1,895)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		4,984,691		113,928		(806)		124
Long-term property and other		increased by 4.19%		4,979,280		118,533		-		-
Lapse rate(increase)		increased by 9.16%		4,963,981		120,301		13,532		(5,710)
Lapse rate(decrease)		decreased by 9.16%		4,994,968		116,666		(13,820)		5,949
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		4,984,797		115,214		(2,197)		484

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

ii) Non-participating insurance contracts

		2025
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	28,288,556		7,199,651		-		-
Mortality rate		increased by 3.27%		28,406,579		7,081,232		397		(2,440)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		29,032,742		6,553,779		(98,314)		41,408
Long-term property and other		increased by 4.19%		28,288,556		7,199,651		-		-
Lapse rate(increase)		increased by 9.16%		29,032,371		6,475,155		(19,318)		(78,503)
Lapse rate(decrease)		decreased by 9.16%		27,470,393		8,000,387		17,427		82,187
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		28,487,259		7,007,703		(6,755)		15,146

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	29,627,853		6,969,672		-		-
Mortality rate		increased by 3.27%		29,749,337		6,848,600		(411)		(9,443)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		30,300,967		6,324,390		(27,831)		14,386
Long-term property and other		increased by 4.19%		29,627,853		6,969,672		-		-
Lapse rate(increase)		increased by 9.16%		30,338,377		6,275,939		(16,791)		(89,404)
Lapse rate(decrease)		decreased by 9.16%		28,845,362		7,734,641		17,522		98,708
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		29,820,711		6,782,260		(5,446)		8,158

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

iii) Variable insurance contracts

		2025
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	5,528,259		223,218		-		-
Mortality rate		increased by 3.27%		5,542,000		218,227		(8,750)		2,058
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		5,553,328		218,469		(20,320)		2,632
Long-term property and other		increased by 4.19%		5,528,259		223,218		-		-
Lapse rate(increase)		increased by 9.16%		5,585,976		190,331		(24,830)		(9,064)
Lapse rate(decrease)		decreased by 9.16%		5,464,450		278,118		8,909		9,826
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		5,541,523		216,204		(6,250)		1,203

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	4,773,118		135,908		-		-
Mortality rate		increased by 3.27%		4,788,129		128,304		(7,407)		1,386
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		4,797,541		129,336		(17,851)		1,666
Long-term property and other		increased by 4.19%		4,773,118		135,908		-		-
Lapse rate(increase)		increased by 9.16%		4,824,350		106,919		(22,243)		(9,536)
Lapse rate(decrease)		decreased by 9.16%		4,716,553		190,190		2,282		10,428
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		4,786,747		127,067		(4,787)		981

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

iv) After reflecting the reinsurance effect

		2025
		Sensitivity (*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	38,727,725		7,062,840		-		-
Mortality rate		increased by 3.27%		38,845,670		6,943,850		1,045		(2,160)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		39,445,049		6,463,985		(118,469)		41,920
Long-term property and other		increased by 4.19%		38,727,725		7,062,840		-		-
Lapse rate(increase)		increased by 9.16%		39,477,221		6,345,060		(31,715)		(92,695)
Lapse rate(decrease)		decreased by 9.16%		37,900,620		7,876,309		13,636		97,419
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		38,944,441		6,861,174		(15,050)		16,960

(*1) The amounts represent the aggregate of participating, non-participating, and variable insurance contracts.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity (*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	39,819,864		6,869,326		-		-
Mortality rate		increased by 3.27%		39,946,680		6,740,875		1,635		8,702
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		40,478,965		6,256,714		(46,488)		34,285
Long-term property and other		increased by 4.19%		39,819,864		6,869,326		-		-
Lapse rate(increase)		increased by 9.16%		40,533,222		6,181,469		(25,501)		(86,772)
Lapse rate(decrease)		decreased by 9.16%		39,031,830		7,651,376		5,984		133,903
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		40,031,868		6,669,753		(12,430)		9,624

(*1) The amounts represent the aggregate of participating, non-participating, and variable insurance contracts.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(g) Credit risk arising from insurance contracts

The amount of the reinsurance contracts assets held by risk level as of December 31, 2025 and 2024 are as follow:

		2025				2024
			Reinsurance contract assets for<br><br>remaining coverage		Reinsurance contract assets for incurred claims		Reinsurance contract assets for<br><br>remaining coverage		Reinsurance contract assets for incurred claims
AA+ ~ AA-	W	335,136		20,462		-		146

(h) Interest rate risk arising from insurance contracts

The impact of exposure to interest rate risk and interest rate changes on profit or loss on equity as of December 31, 2025 and 2024 are as follow:

① Interest rate risk exposure

		2025		2024
Exposure to financial instruments measured at fair value (*1)	W	47,717,387		48,843,348
Insurance contract exposure (*2)
Participating		4,738,480		4,979,280
Non-participating		28,289,432		29,628,025
Variable		5,528,259		4,773,118
Others		172,430		439,613
Net exposure (financial instruments less insurance contracts)		8,988,786		9,023,312

(*1) It is the total amount of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, and derivative assets (liabilities).

(*2) It is the amount of insurance contract liabilities and reinsurance contract assets (liabilities) for remaining coverage, less contractual service margin.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(h) Interest rate risk arising from insurance contracts (continued)

The impact of exposure to interest rate risk and interest rate changes on profit or loss on equity as of December 31, 2025 and 2024 are as follow: (continued)

② Interest Rate Risk Sensitivity

				2025				2024
				Effects on<br>profit or loss		Effects on equity		Effects on<br>profit or loss		Effects on equity
100bp Increase		Insurance contracts (*1)
		Participating	W	-		509,420		-		539,618
		Non-participating		-		4,535,425		-		3,772,927
		Variable		-		21,308		-		44,699
		Reinsurance contracts (*1)		-		255,489		-		50,365
		Financial assets (*2)		(26,466)		(4,736,892)		(35,934)		(4,777,699)
100bp Decrease		Insurance contracts (*1)
		Participating		-		(620,972)		-		(658,212)
		Non-participating		-		(5,802,811)		-		(5,332,780)
		Variable		-		(60,875)		-		(82,742)
		Reinsurance contracts (*1)		-		(308,842)		-		(59,948)
		Financial assets (*2)		26,563		5,800,791		35,934		5,837,965

(*1) This is the effects on equity (before tax) due to changes in expected cash flows of insurance and reinsurance contracts, excluding variable annuities/savings.

(*2) Calculated for assets related to insurance contracts excluding variable annuities/savings. The profit or loss effects are the changes in financial assets recognized at fair value through profit or loss, and the equity effects are the changes in financial assets at fair value through other comprehensive income and interest rate derivatives.

(i) Equity price risk arising from insurance contracts

The effects of changes in equity prices on profit or loss and equity as of December 31, 2025 and 2024 are as follows:

				2025				2024
				Effects on<br>profit or loss		Effects on equity		Effects on<br>profit or loss		Effects on equity
10% Increase		Insurance contracts
		Participating	W	-		-		-		-
		Non-participating		-		-		-		-
		Variable		(255,595)		-		(193,578)		-
		Reinsurance contracts		-		-		-		-
		Financial assets		255,595		-		193,578		-
10% Decrease		Insurance contracts
		Participating		-		-		-		-
		Non-participating		-		-		-		-
		Variable		255,595		-		193,578		-
		Reinsurance contracts		-		-		-		-
		Financial assets		(255,595)		-		(193,578)		-

(*) The analysis is based on assets related to variable annuity and savings insurance contracts to which the variable fee approach is applied, and the profit or loss effects represent changes in financial assets at fair value through profit or loss.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(j) Liquidity risk arising from insurance contracts

As of December 31, 2025 and 2024, the amount of undiscounted remaining contractual cash flows by maturity date are as follow. This amount does not include liabilities for remaining coverage (insurance contracts and reinsurance contracts) measured by applying the premium allocation approach.

		2025
		Less than<br><br>1 year		1~2<br><br>year		2~3<br><br>year		3~4<br><br>year		4~5<br><br>years		More than 5 years		Total
Insurance Contracts
Participating insurance:
Cash inflows	W	34,397		25,425		20,141		16,443		13,515		63,988		173,909
Cash outflows		(240,847)		(253,700)		(255,690)		(258,371)		(261,112)		(8,042,439)		(9,312,159)
		(206,450)		(228,275)		(235,549)		(241,928)		(247,597)		(7,978,451)		(9,138,250)
Non-participating insurance:
Cash inflows		6,331,260		5,662,522		5,010,684		4,358,197		3,771,019		51,088,737		76,222,419
Cash outflows		(5,068,663)		(4,871,804)		(4,780,238)		(4,705,099)		(4,437,033)		(134,903,633)		(158,766,470)
		1,262,597		790,718		230,446		(346,902)		(666,014)		(83,814,896)		(82,544,051)
Variable insurance
Cash inflows		437,302		361,966		297,826		249,995		213,177		2,158,311		3,718,577
Cash outflows		(948,429)		(855,175)		(765,759)		(669,433)		(604,609)		(8,817,026)		(12,660,431)
		(511,127)		(493,209)		(467,933)		(419,438)		(391,432)		(6,658,715)		(8,941,854)
	W	545,020		69,234		(473,036)		(1,008,268)		(1,305,043)		(98,452,062)		(100,624,155)
Reinsurance contract
Cash inflows	W	322,122		302,044		286,274		278,232		271,893		9,694,621		11,155,186
Cash outflows		(347,205)		(334,989)		(321,136)		(312,211)		(305,518)		(9,388,316)		(11,009,375)
	W	(25,083)		(32,945)		(34,862)		(33,979)		(33,625)		306,305		145,811
Total (including variable insurance)	W	519,937		36,289		(507,898)		(1,042,247)		(1,338,668)		(98,145,757)		(100,478,344)
Total (excluding variable insurance)	W	1,031,064		529,498		(39,965)		(622,809)		(947,236)		(91,487,042)		(91,536,490)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(j) Liquidity risk arising from insurance contracts (continued)

As of December 31, 2025 and 2024, the amount of undiscounted remaining contractual cash flows by maturity date are as follow. This amount does not include liabilities for remaining coverage (insurance contracts and reinsurance contracts) measured by applying the premium allocation approach. (continued)

		2024
		Less than<br><br>1 year		1~2<br><br>year		2~3<br><br>year		3~4<br><br>year		4~5<br><br>years		More than 5 years		Total
Insurance Contracts
Participating insurance:
Cash inflows	W	43,374		33,437		24,916		19,959		16,437		106,215		244,338
Cash outflows		(240,206)		(228,226)		(232,215)		(241,157)		(240,783)		(8,645,374)		(9,827,961)
		(196,832)		(194,789)		(207,299)		(221,198)		(224,346)		(8,539,159)		(9,583,623)
Non-participating insurance:
Cash inflows		5,582,811		4,840,753		4,361,203		3,863,416		3,314,013		47,454,014		69,416,210
Cash outflows		(5,750,906)		(4,300,951)		(4,353,876)		(4,074,145)		(4,294,566)		(124,429,513)		(147,203,957)
		(168,095)		539,802		7,327		(210,729)		(980,553)		(76,975,499)		(77,787,747)
Variable insurance
Cash inflows		482,531		402,250		334,537		279,308		237,124		2,351,146		4,086,896
Cash outflows		(916,187)		(783,304)		(709,458)		(636,965)		(559,272)		(8,181,229)		(11,786,415)
		(433,656)		(381,054)		(374,921)		(357,657)		(322,148)		(5,830,083)		(7,699,519)
	W	(798,583)		(36,041)		(574,893)		(789,584)		(1,527,047)		(91,344,741)		(95,070,889)
Reinsurance contract
Cash inflows	W	225,165		216,544		209,995		207,721		207,575		8,223,398		9,290,398
Cash outflows		(244,930)		(237,756)		(230,883)		(227,262)		(226,934)		(9,123,146)		(10,290,911)
	W	(19,765)		(21,212)		(20,888)		(19,541)		(19,359)		(899,748)		(1,000,513)
Total (including variable insurance)	W	(818,348)		(57,253)		(595,781)		(809,125)		(1,546,406)		(92,244,489)		(96,071,402)
Total (excluding variable insurance)	W	(384,692)		323,801		(220,860)		(451,468)		(1,224,258)		(86,414,406)		(88,371,883)

As of December 31, 2025 and 2024, the amount to be paid upon request by policyholders of insurance contracts issued is W56,064,811 million and W53,227,935 million, respectively.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(k) Claims development

The Claims development as of December 31, 2025 and 2024 are as follows:

		2025
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted ultimate gross claims	W	1,069,793		1,106,219		1,154,705		1,232,242		1,419,726		5,982,685
Claims paid
At end of accident year		832,601		857,694		896,770		952,706		1,098,335		4,638,106
1 year later		187,431		194,972		201,175		220,039		-		803,617
2 years later		27,435		27,703		30,697		-				85,835
3 years later		12,000		15,032		-						27,032
4 years later		4,859		-								4,859
Cumulative claims paid		1,064,326		1,095,402		1,128,643		1,172,745		1,098,335		5,559,449
Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid		5,467		10,818		26,063		59,497		321,391		423,236
Effect of discounting		-										(12,313)
Future claim adjustment expenses												9,205
Incurred claims that have been confirmed but not paid												1,366,616
Risk adjustment for non-financial risk												15,973
Reinsurance effect												(119,384)
Net liability for incurred claims	W											1,683,333

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(k) Claims development (continued)

The Claims development as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted ultimate gross claims	W	959,974		1,070,850		1,104,112		1,152,207		1,233,110		5,520,253
Claims paid
At end of accident year		746,984		833,427		857,650		896,474		957,713		4,292,248
1 year later		166,072		187,415		195,026		202,132		-		750,645
2 years later		23,751		27,433		27,763		-				78,947
3 years later		13,248		12,079		-						25,327
4 years later		4,849		-								4,849
Cumulative claims paid		954,904		1,060,354		1,080,439		1,098,606		957,713		5,152,016
Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid		5,070		10,496		23,673		53,601		275,397		368,237
Effect of discounting		-										(11,011)
Future claim adjustment expenses												7,316
Incurred claims that have been confirmed but not paid												1,436,530
Risk adjustment for non-financial risk												14,041
Reinsurance effect												(94,435)
Net liability for incurred claims	W											1,720,678

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

7. Capital risk management

In order to manage the required capital for maintaining solvency, the Group measures the risk-based capital in a manner required by the supervisory authority, manages it internally, and discloses it externally. The Group also manages risk appetite based on internal model.

The solvency margin ratio is a measure of financial soundness or ability to pay claims by a life insurer and is calculated by dividing solvency margin by solvency capital requirement, where the solvency margin is a measure of the extent to which the Group can fulfill its obligations to policyholders even in the event of an unexpected loss or decline in asset value and solvency capital requirement is the Group’s risk amount.

The Group manages the solvency margin ratio based on the consolidated financial statements and the supervisory authority requires insurance companies to maintain the solvency margin ratio at least 100%. If an insurance company fails to meet the solvency margin ratio requirement, the timely corrective measures shall be taken.

		Solvency margin ratio		Improvement measures
Management improvement recommendation		50% or above through less than 100%		Increase in equity, restriction on initiating new business, etc.
Management improvement request		0% or above through less than 50%		Request for replacement of executives, closure of subsidiaries, etc.
Management improvement order		Less than 0%		Suspension of executive officers from office, suspension of insurance business, etc.

The Group obtains approval on the management standards for the solvency margin ratio based on risk-based capital from the Risk Management Committee every year.

As of December 31, 2025, the Group complies with the solvency margin ratio required by the supervisory authority. In addition, based on the internal model, the Group monitors compliance with the limits for each risk type every month that are approved by the Risk Management Committee based on total risk limit approved by the board of director. At this time, the risk appetite is managed to be within 100%.

The Group also conducts stress testing by setting crisis scenarios for interest rates, stock prices, and exchange rates. The stress test is conducted on both the solvency margin ratio and the internal model. The Group establishes a capital management plan based on the results and report to the management as well as the Risk Management Committee at least once a year.

8. Fair value of financial instruments

The fair value of financial instruments traded in the active market is calculated based on the quoted price of the trading brokerage agency as of the end of the reporting period.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques or the results of the assessment by an independent external assessment agency. The Group utilizes various valuation techniques and makes reasonable assumptions based on current market conditions at the end of the reporting period.

The Group classifies the fair value of financial instruments into three fair value levels:

• Level 1 : Measurement of fair value based on the prices disclosed in the active trading market.
• Level 2 : Measurement of fair value by valuation technique based on market-observed information
• Level 3 : Measurement of fair value based on unobservable information in the market.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value

i) The details of fair value by valuation level of financial instruments measured at fair value in the consolidated statements of financial position as of December 31, 2025 and 2024 are as follows:

		2025
		Level 1		Level 2		Level 3		Total
Financial assets:
Due from banks at fair value through profit or loss	W	-		40,862		-		40,862
Securities at fair value through profit or loss
Debt securities		3,120,892		1,851,300		5,824,906		10,797,098
Equity securities		1,909,923		-		-		1,909,923
		5,030,815		1,851,300		5,824,906		12,707,021
Securities at fair value through other comprehensive income
Debt securities		22,931,497		12,676,870		-		35,608,367
Equity securities		-		-		101,951		101,951
		22,931,497		12,676,870		101,951		35,710,318
Derivative assets
Held for trading		657		5,346		965		6,968
Held for hedging		-		33,055		-		33,055
		657		38,401		965		40,023
	W	27,962,969		14,607,433		5,927,822		48,498,224
Financial liabilities:
Derivative liabilities
Held for trading	W	29		22,443		-		22,472
Held for hedging		-		915,187		-		915,187
	W	29		937,630		-		937,659
		2024
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets:
Due from banks at fair value through profit or loss	W	-		35,450		-		35,450
Securities at fair value through profit or loss
Debt securities		3,110,322		1,915,608		4,983,204		10,009,134
Equity securities		1,188,533		-		-		1,188,533
		4,298,855		1,915,608		4,983,204		11,197,667
Securities at fair value through other comprehensive income
Debt securities		23,212,859		14,649,633		-		37,862,492
Equity securities		-		-		161,415		161,415
		23,212,859		14,649,633		161,415		38,023,907
Derivative assets
Held for trading		97		-		526		623
Held for hedging		-		116,899		-		116,899
		97		116,899		526		117,522
	W	27,511,811		16,717,590		5,145,145		49,374,546
Financial liabilities:
Derivative liabilities
Held for trading	W	245		1,799		-		2,044
Held for hedging		-		554,326		-		554,326
	W	245		556,125		-		556,370

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

ii) There is no transfer between level 1 and level 2 of financial instruments measured at fair value for the years ended December 31, 2025 and 2024.

iii) Valuation techniques and input variables for financial instruments classified as Level 2

Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of December 31, 2025 and 2024 are as follows:

Type of financial instrument		Valuation techniques			2025		2024		Input variables
Financial assets
Financial assets at fair value through profit or loss
Debt securities		Net asset value (NAV), Discounted cash flow (DCF), Hull-White model		W	1,892,162		1,951,058		Discount rates, fair value of the underlying assets
Securities at fair value through other comprehensive income
Debt securities		DCF			12,676,870		14,649,633		Discount rates
Derivative assets
Currency forward		Implied forward rate, DCF			9,055		-		Discount rates,<br><br>foreign exchange rates
Currency swap					2,601		2,369		Discount rates,<br><br>foreign exchange rates
Interest rate forward					26,745		114,530		Discount rates
				W	14,607,433		16,717,590
Financial liabilities
Currency forward		Implied forward rate, DCF		W	285,723		256,882		Discount rates,<br><br>foreign exchange rates
Currency swap					412,716		245,963		Discount rates,<br><br>foreign exchange rates
Interest rate forward					239,191		53,280		Discount rates
				W	937,630		556,125

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

iv) Details of financial instruments classified as fair value level 3

Changes in financial instruments classified as fair value level 3 for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Financial assets at fair value through profit or loss		Securities at fair value through other comprehensive income		Net derivatives held for trading		Total
Beginning balance	W	4,983,204		161,415		526		5,145,145
Total gains or losses
Amount recognized in profit or loss (*)		53,971		-		2,665		56,636
Amount recognized in other comprehensive income		-		(963)		-		(963)
Acquisition		1,270,800		1,499		685		1,272,984
Settlement		(483,069)		(60,000)		(2,911)		(545,980)
Moving from level 3		-		-		-		-
Ending balance	W	5,824,906		101,951		965		5,927,822

(*) The amounts recognized in profit or loss during the current period in relation to movements in financial instruments classified as Level 3 in the fair value hierarchy, as well as the gains or losses related to assets and liabilities held as of the end of the reporting period are as follows:

			Amount recognized in profit or loss		Amount recognized in profit or loss related to financial instruments held at the end of the reporting period
Gains or losses on financial assets at fair value through profit or loss		W	53,971		66,547
Gains or losses on derivatives			2,665		484
		W	56,636		67,031

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

iv) Details of financial instruments classified as fair value level 3 (continued)

Changes in financial instruments classified as fair value level 3 for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Financial assets at fair value through profit or loss		Securities at fair value through other comprehensive income		Net derivatives held for trading		Total
Beginning balance	W	5,046,084		110,362		4,626		5,161,072
Total gains or losses
Amount recognized in profit or loss (*2)		69,844		-		(3,626)		66,218
Amount recognized in other<br><br>comprehensive income		-		1,153		-		1,153
Acquisition		524,338		50,000		2,581		576,919
Settlement		(535,737)		(100)		(3,055)		(538,892)
Moving from level 3 (*1)		(121,325)		-		-		(121,325)
Ending balance	W	4,983,204		161,415		526		5,145,145

(*1) The financial instrument has shifted between levels due to changes in the availability of observable market data due to changes in the evaluation method. The Group recognizes changes in levels at the end of the reporting period in which changes in events or circumstances that cause changes between levels occur.

(*2) The amounts recognized in profit or loss during the current period in relation to movements in financial instruments classified as Level 3 in the fair value hierarchy, as well as the gains or losses related to assets and liabilities held as of the end of the reporting period are as follows:

			Amount recognized in profit or loss		Amount recognized in profit or loss related to financial instruments held at the end of the reporting period
Gains or losses on financial assets at fair value through profit or loss		W	69,844		69,525
Gains or losses on derivatives			(3,626)		(1,570)
		W	66,218		67,955

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

v) Valuation techniques and unobservable input variables for financial instruments classified as Level 3

Valuation techniques and significant unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2025 and 2024 are as below:

			2025
			Valuation techniques		Carrying amount		Significant unobservable inputs		Range		Effects of unobservable inputs on fair value
Financial assets<br><br>at fair value<br><br>through profit<br><br>or loss
- Debt securities			Dividend discount model,<br><br>Hull-White, NAV	W	5,824,906		Discount rates, liquidation value		Discount rates 10.08% ~ 17.95%<br><br>liquidation value 0.00%		Fair value decreases when discount rate increases<br><br>Fair value increases when liquidation value increases
Securities<br><br>at fair value<br><br>through other<br><br>comprehensive<br><br>income
- Equity securities			Hull-White, NAV		101,951		The volatility of an interest rate		0.46% ~ 0.67%		The greater the volatility, the greater the fluctuation in fair value
Derivative assets
- Equity related			Monte-Carlo<br><br>Simulation,<br><br>Black-Scholes		965		The volatility of an underlying asset		23.51% ~ 29.54%		The greater the volatility, the greater the fluctuation in fair value
				W	5,927,822

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

v) Valuation techniques and unobservable input variables for financial instruments classified as Level 3 (continued)

Valuation techniques and significant unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2025 and 2024 are as below: (continued)

			2024
			Valuation techniques		Carrying amount		Significant unobservable inputs		Range		Effects of unobservable inputs on fair value
Financial assets<br><br>at fair value<br><br>through profit<br><br>or loss
- Debt securities			Dividend discount model,<br><br>Hull-White, NAV	W	4,983,204		Discount rates, liquidation value		Discount rates 6.32% ~ 9.48%<br><br>liquidation value 0.00%		Fair value decreases when discount rate increases<br><br>Fair value increases when liquidation value increases
Securities<br><br>at fair value<br><br>through other<br><br>comprehensive<br><br>income
- Equity securities			Hull-White, NAV		161,415		The volatility of an interest rate		0.41% ~ 0.73%		The greater the volatility, the greater the fluctuation in fair value
Derivative assets
- Equity related			Monte-Carlo<br><br>Simulation,<br><br>Black-Scholes		526		The volatility of an underlying asset		19.94% ~ 21.28%		The greater the volatility, the greater the fluctuation in fair value
				W	5,145,145

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

vi) Sensitivity analysis by variation of unobserved variables

If other input variables remain constant for the fair value of a financial instrument measured at fair value as of December 31, 2025 and 2024, the effect of a significant but unobservable input variable fluctuating reasonably on the reporting date is as follows:

		2025
		Favorable change		Unfavorable change
Financial assets at fair value through profit or loss (*1)	W	7,060		(6,966)
Securities at fair value through other<br><br>comprehensive income (*1)		6,829		(5,965)
Derivative assets (*2)		24		(24)
	W	13,913		(12,955)

(*1) The changes in fair value is calculated by increasing or decreasing the major unobservable input variables, liquidation value (-1% to 1%) and discount rate (-1% to 1%).

(*2) The changes in fair value is calculated by increasing or decreasing the volatility (-1% to 1%), which is a major unobservable input variable.

		2024
		Favorable change		Unfavorable change
Financial assets at fair value through profit or loss (*1)	W	9,486		(9,249)
Securities at fair value through other<br><br>comprehensive income (*1)		7,132		(6,840)
Derivative assets (*2)		51		(47)
	W	16,669		(16,136)

(*1) The changes in fair value is calculated by increasing or decreasing the major unobservable input variables, liquidation value (-1% to 1%) and discount rate (-1% to 1%).

(*2) The changes in fair value is calculated by increasing or decreasing the volatility (-1% to 1%), which is a major unobservable input variable.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost

i) The fair value calculation method for major financial instruments measured at amortized cost is as follows:

Classification		Fair value calculation method
Cash and due from bank		The carrying amount and fair value of cash is the same, and the fair value of due from bank at amortized cost is valued at the present value of the expected cash inflows.
Loans		The fair value of the loans is assessed as the present value of the expected cash flows expected to be received discounted at a discount rate taking into account the borrower's credit risk.
Securities		The fair value of the securities at amortized cost is assessed as the present value of expected cash flows expected to be received.
Other financial assets/liabilities		The carrying amount is used as a proxy for fair value because it is difficult to reliably estimate expected cash flows.
Investment contract liabilities		The accumulated pension benefits of the retirement pension contract holders, as defined by the Insurance Business Act and the Regulations on Supervision of Insurance Business, have been used as fair value proxies.
Borrowings/debentures		The fair value of borrowings/debentures is assessed by the present value of expected cash flows expected to be paid.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost (continued)

ii) The carrying amount and fair value of financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025
		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	W	1,640,559		1,640,559
Due from banks at amortized cost		897,669		874,201
Securities at amortized cost
Government bonds		3,509,359		3,049,353
Special purpose bonds		440,985		392,786
Foreign currency-denominated securities		8,115		7,660
		3,958,459		3,449,799
Loans at amortized cost
Retail loans		534,967		530,810
Corporate loans		1,723,094		1,730,737
		2,258,061		2,261,547
Receivables at amortized cost		1,309,886		1,309,886
	W	10,064,634		9,535,992
Financial liabilities
Investment contract liabilities	W	1,541,684		1,541,684
Borrowings		32,366		32,366
Debentures		798,392		788,577
Other financial liabilities		697,904		697,904
	W	3,070,346		3,060,531

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost (continued)

ii) The carrying amount and fair value of financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	W	829,999		829,999
Due from banks at amortized cost		865,329		867,885
Securities at amortized cost
Government bonds		3,489,625		3,190,906
Special purpose bonds		442,290		416,001
Foreign currency-denominated securities		5,701		5,724
		3,937,616		3,612,631
Loans at amortized cost
Retail loans		697,890		705,859
Corporate loans		2,111,564		2,073,375
		2,809,454		2,779,234
Receivables at amortized cost		4,983,204		1,221,980
	W	4,983,204		9,311,729
Financial liabilities
Investment contract liabilities	W	1,332,468		1,332,468
Borrowings		23,543		23,543
Debentures		299,487		306,408
Other financial liabilities		499,809		499,809
	W	2,155,307		2,162,228

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost (continued)

iii) The fair value of financial instruments that are not measured at their fair values in the statements of financial position but with their fair value disclosed, by valuation level as of December 31, 2025 and 2024 are as follows:

		2025
		Level 1		Level 2		Level 3		Total
Financial assets
Due from banks at amortized cost	W	-		874,201		-		874,201
Securities at amortized cost
Government bonds		3,049,353		-		-		3,049,353
Special purpose bonds		-		392,786		-		392,786
Foreign currency-denominated securities		-		7,660		-		7,660
		3,049,353		400,446		-		3,449,799
Loans at amortized cost
Retail loans		-		-		530,810		530,810
Corporate loans		-		-		1,730,737		1,730,737
		-		-		2,261,547		2,261,547
	W	3,049,353		1,274,647		2,261,547		6,585,547
Financial liabilities
Debentures	W	-		-		788,577		788,577
		2024
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets
Due from banks at amortized cost	W	-		867,885		-		867,885
Securities at amortized cost
Government bonds		3,190,906		-		-		3,190,906
Special purpose bonds		-		416,001		-		416,001
Foreign currency-denominated securities		-		5,724		-		5,724
		3,190,906		421,725		-		3,612,631
Loans at amortized cost
Retail loans		-		-		705,859		705,859
Corporate loans		-		-		2,073,375		2,073,375
		-		-		2,779,234		2,779,234
	W	3,190,906		1,289,610		2,779,234		7,259,750
Financial liabilities
Debentures	W	-		-		306,408		306,408

The Group does not disclose the fair value hierarchy in relation to items that disclose the carrying amount at fair value, considering the carrying amount as a reasonable approximation of the fair value.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments

(a) Carrying amount of each financial instrument

i) The carrying amount of each financial assets by classification category as of December 31, 2025 and 2024 are as follows:

		2025
		Financial assets at fair<br><br>value through profit or loss (*)		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Hedging derivatives		Total
<General>
Cash and due from<br><br>banks at amortized cost	W	-		-		1,711,633		-		1,711,633
Financial assets at fair<br><br>value through profit or loss		6,730,227		-		-		-		6,730,227
Securities at fair<br><br>value through other<br><br>comprehensive income		-		35,306,146		-		-		35,306,146
Securities at amortized cost		-		-		3,958,459		-		3,958,459
Loans at amortized cost		-		-		2,027,001		-		2,027,001
Receivables at amortized cost		-		-		1,197,150		-		1,197,150
Derivative assets		6,310		-		-		33,056		39,366
		6,736,537		35,306,146		8,894,243		33,056		50,969,982
< Variable>
Cash and due from<br><br>banks at amortized cost		-		-		537,497		-		537,497
Financial assets at fair<br><br>value through profit or loss		5,673,090		-		-		-		5,673,090
Loans at amortized cost		-		-		41,300		-		41,300
Receivables at amortized cost		-		-		107,048		-		107,048
Derivative assets		657		-		-		-		657
		5,673,747		-		685,845		-		6,359,592
< Retirement>
Cash and due from<br><br>banks at amortized cost		-		-		289,098		-		289,098
Financial assets at fair<br><br>value through profit or loss		344,566		-		-		-		344,566
Securities at fair<br><br>value through other<br><br>comprehensive income		-		404,172		-		-		404,172
Loans at amortized cost		-		-		189,760		-		189,760
Receivables at amortized cost		-		-		5,688		-		5,688
		344,566		404,172		484,546		-		1,233,284
	W	12,754,850		35,710,318		10,064,634		33,056		58,562,858

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(a) Carrying amount of each financial instrument (continued)

i) The carrying amount of each financial assets by classification category as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Financial assets at fair<br><br>value through profit or loss (*)		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Hedging derivatives		Total
<General>
Cash and due from<br><br>banks at amortized cost	W	-		-		1,230,632		-		1,230,632
Financial assets at fair<br><br>value through profit or loss		6,026,124		-		-		-		6,026,124
Securities at fair<br><br>value through other<br><br>comprehensive income		-		37,377,472		-		-		37,377,472
Securities at amortized cost		-		-		3,937,616		-		3,937,616
Loans at amortized cost		-		-		2,445,238		-		2,445,238
Receivables at amortized cost		-		-		1,100,761		-		1,100,761
Derivative assets		526		-		-		116,899		117,425
		6,026,650		37,377,472		8,714,247		116,899		52,235,268
< Variable>
Cash and due from<br><br>banks at amortized cost		-		-		412,404		-		412,404
Financial assets at fair<br><br>value through profit or loss		4,942,771		-		-		-		4,942,771
Loans at amortized cost		-		-		40,900		-		40,900
Receivables at amortized cost		-		-		114,800		-		114,800
Derivative assets		97		-		-		-		97
		4,942,868		-		568,104		-		5,510,972
< Retirement>
Cash and due from<br><br>banks at amortized cost		-		-		52,292		-		52,292
Financial assets at fair<br><br>value through profit or loss		264,222		-		-		-		264,222
Securities at fair<br><br>value through other<br><br>comprehensive income		-		646,435		-		-		646,435
Loans at amortized cost		-		-		323,316		-		323,316
Receivables at amortized cost		-		-		6,419		-		6,419
		264,222		646,435		382,027		-		1,292,684
	W	11,233,740		38,023,907		9,664,378		116,899		59,038,924

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(a) Carrying amount of each financial instrument (continued)

ii) The carrying amount of each financial liabilities by classification category as of December 31, 2025 and 2024 are as follows:

		2025
		Financial liabilities at fair value through profit or loss		Financial liabilities at amortized cost		Hedging derivatives		Total
<General>
Derivative liabilities	W	22,443		-		909,968		932,411
Borrowings		-		32,366		-		32,366
Debentures		-		798,392		-		798,392
Other financial liabilities		-		676,358		-		676,358
Lease liabilities		-		77,999		-		77,999
		22,443		1,585,115		909,968		2,517,526
< Variable>
Derivative liabilities		29		-		-		29
Other financial liabilities		-		21,329		-		21,329
		29		21,329		-		21,358
< Retirement>
Investment contract liabilities		-		1,541,684		-		1,541,684
Derivative liabilities		-		-		5,219		5,219
Other financial liabilities		-		217		-		217
		-		1,541,901		5,219		1,547,120
	W	22,472		3,148,345		915,187		4,086,004

(*) Included derivatives held for trading.

		2024
		Financial liabilities at fair value through profit or loss		Financial liabilities at amortized cost		Hedging derivatives		Total
<General>
Derivative liabilities	W	1,799		-		548,988		550,787
Borrowings		-		23,543		-		23,543
Debentures		-		299,487		-		299,487
Other financial liabilities		-		487,118		-		487,118
Lease liabilities		-		93,923		-		93,923
		1,799		904,071		548,988		1,454,858
< Variable>
Derivative liabilities		245		-		-		245
Other financial liabilities		-		12,544		-		12,544
		245		12,544		-		12,789
< Retirement>
Investment contract liabilities		-		1,332,468		-		1,332,468
Derivative liabilities		-		-		5,338		5,338
Other financial liabilities		-		147		-		147
		-		1,332,615		5,338		1,337,953
	W	2,044		2,249,230		554,326		2,805,600

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(b) Net profit or loss classification by classification of financial instruments

Net profit or loss by classification of financial instruments for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Net Interest<br>income or expense		Dividend<br>income		Other gains and losses		Gain or loss<br>on valuation		Gain or loss<br>on disposal		Total
<General>
Cash and due from<br>banks at amortized cost	W	51,466		-		614		-		10,993		63,073
Financial assets at fair<br>value through profit or loss		33,936		5		184,430		75,936		18,455		312,762
Securities at fair<br>value through other<br>comprehensive income		1,108,281		5,556		144,849		-		16,115		1,274,801
Securities at amortized cost		117,388		-		(7)		-		-		117,381
Loans at amortized cost		103,688		-		(7,646)		-		3,437		99,479
Receivables at amortized cost		3,888		-		(6)		-		-		3,882
Derivatives held for trading		-		-		(77,567)		-		-		(77,567)
Derivatives held for hedging		-		-		(195,428)		-		-		(195,428)
Debentures		(25,686)		-		-		-		-		(25,686)
Other financial liabilities		(29)		-		-		-		-		(29)
Lease liabilities		(2,554)		-		-		-		-		(2,554)
		1,390,378		5,561		49,239		75,936		49,000		1,570,114
< Variable>
Cash and due from<br>banks at amortized cost		10,238		-		(272)		-		-		9,966
Financial assets at fair<br>value through profit or loss		49,948		31,866		5,378		1,024,241		325,143		1,436,576
Loans at amortized cost		830		-		-		-		-		830
Receivables at amortized cost		18		-		(625)		-		-		(607)
Derivatives held for trading		-		-		(13,605)		-		-		(13,605)
		61,034		31,866		(9,124)		1,024,241		325,143		1,433,160
< Retirement>
Cash and due from<br>banks at amortized cost		806		-		(4)		-		-		802
Financial assets at fair<br>value through profit or loss		3		152		3,791		1,536		6,617		12,099
Securities at fair<br>value through other<br>comprehensive income		14,049		195		(524)		-		1,275		14,995
Loans at amortized cost		7,202		-		2,388		-		-		9,590
Receivables at amortized cost		-		-		2		-		-		2
Derivatives held for trading		-		-		10		-		-		10
Derivatives held for hedging		-		-		697		-		-		697
Investment contract liabilities		(39,135)		-		-		-		-		(39,135)
		(17,075)		347		6,360		1,536		7,892		(940)
	W	1,434,337		37,774		46,475		1,101,713		382,035		3,002,334

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(b) Net profit or loss classification by classification of financial instruments (continued)

Net profit or losses by classification of financial instruments for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Net Interest<br>income or expense		Dividend<br>income		Other gains and losses		Gain or loss<br>on valuation		Gain or loss<br>on disposal		Total
<General>
Cash and due from<br>banks at amortized cost	W	51,264		-		1,321		-		-		52,585
Financial assets at fair<br>value through profit or loss		30,041		-		328,757		15,737		4,375		378,910
Securities at fair<br>value through other<br>comprehensive income		1,085,216		4,121		454,649		-		3,399		1,547,385
Securities at amortized cost		129,179		-		(43)		-		21,719		150,855
Loans at amortized cost		129,357		-		(8,210)		-		(323)		120,824
Receivables at amortized cost		3,678		-		24,363		-		-		28,041
Derivatives held for trading		-		-		6,832		-		-		6,832
Derivatives held for hedging		-		-		(568,221)		-		-		(568,221)
Debentures		(15,761)		-		-		-		-		(15,761)
Other financial liabilities		(36)		-		-		-		-		(36)
Lease liabilities		(2,937)		-		-		-		-		(2,937)
		1,410,001		4,121		239,448		15,737		29,170		1,698,477
< Variable>
Cash and due from<br>banks at amortized cost		10,788		-		3,857		-		-		14,645
Financial assets at fair<br>value through profit or loss		66,041		28,001		119,874		10,159		82,282		306,357
Loans at amortized cost		1,672		-		-		-		-		1,672
Receivables at amortized cost		19		-		1,505		-		-		1,524
Derivatives held for trading		-		-		(119,124)		-		-		(119,124)
		78,520		28,001		6,112		10,159		82,282		205,074
< Retirement>
Cash and due from<br>banks at amortized cost		816		-		7		-		-		823
Financial assets at fair<br>value through profit or loss		63		110		5,614		2,773		2,187		10,747
Securities at fair<br>value through other<br>comprehensive income		24,542		278		5,908		-		(20,138)		10,590
Loans at amortized cost		14,301		-		2,401		-		-		16,702
Receivables at amortized cost		-		-		166		-		-		166
Derivatives held for trading		-		-		(200)		-		-		(200)
Derivatives held for hedging		-		-		(5,730)		-		-		(5,730)
Investment contract liabilities		(59,991)		-		-		-		-		(59,991)
		(20,269)		388		8,166		2,773		(17,951)		(26,893)
	W	1,468,252		32,510		253,726		28,669		93,501		1,876,658

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(c) Financial instrument offsetting

Details of financial instruments subject to collective offsetting agreements or similar agreements as of December 31, 2025 and 2024 are as follows:

		2025
		Total financial instruments recognized		Total amount of financial instruments recognized that were offset		Net amount of financial instruments presented in the statement of financial position		Related amounts not offset in the statements of<br><br>financial position				Net amount
																		Financial instruments		Cash collateral received
Financial assets
Derivative assets	W	39,365		-		39,365		34,050		-		5,315
Purchase under repurchase agreement		44,100		-		44,100		44,100		-		-
Foreign currency-denominated securities lending		1,265,304		-		1,265,304		1,092,398		-		172,906
	W	1,348,769		-		1,348,769		1,170,548		-		178,221
Financial liabilities
Derivative liabilities	W	937,630		-		937,630		819,949		-		117,681

(*) Securities lending transactions represent transactions in which the Group directly lends securities and receives collateral. The amounts exclude W9,992,630 million relating to securities lent through an intermediary, the Korea Securities Finance Corporation, for which pledges were established in the name of the intermediary.

		2024
		Total financial instruments recognized		Total amount of financial instruments recognized that were offset		Net amount of financial instruments presented in the statement of financial position		Related amounts not offset in the statements of<br><br>financial position				Net amount
																		Financial instruments		Cash collateral received
Financial assets
Derivative assets	W	117,425		-		117,425		108,915		-		8,510
Purchase under repurchase agreement		40,900		-		40,900		40,900		-		-
Foreign currency-denominated securities lending		1,260,151		-		1,260,151		1,197,807		-		62,344
	W	1,418,476		-		1,418,476		1,347,622		-		70,854
Financial liabilities
Derivative liabilities	W	556,125		-		556,125		494,031		-		62,094

(*) Securities lending transactions represent transactions in which the Group directly lends securities and receives collateral. The amounts exclude W8,211,309 million relating to securities lent through an intermediary, the Korea Securities Finance Corporation, for which pledges were established in the name of the intermediary.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(d) Transfers transaction of financial assets

i) Financial instruments which do not meet the derecognition criteria

① Securities Lending Transactions

If the Group lends securities owned by itself, the ownership of the securities is transferred, but the Group must return the securities at the end of the loan period, so the Group continues to recognize the entire securities as it holds most of the risks and rewards of the securities. The carrying amount of securities lending as of December 31, 2025 and 2024 is as follows:

Classification				2025		2024
Financial assets at fair value		Government bonds	W	9,371		-
through profit or loss		Stocks		35,757		15,826
				45,128		15,826
Securities at fair value through		Government bonds		7,622,098		6,481,140
other comprehensive income		Foreign currency bonds		1,265,304		1,260,151
				8,887,402		7,741,291
Securities at amortized cost		Government bonds		2,370,532		1,730,170
			W	11,303,062		9,487,287

ii) Financial instruments that meet the derecognition criteria but are continuously involved.

As of December 31, 2025 and 2024, there are no financial instruments which meet the derecognition criteria, but the Group is continuously involved.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

10. Material accounting estimates and judgments

In preparing the consolidated financial statements, the Group makes judgments about assumptions and assumptions about the future. These estimates and judgments are continually evaluated, taking into account other factors such as past experiences and future events that are reasonably predictable from the current situation. The accounting estimates calculated in this way may not match the actual results. The judgments on accounting estimates and assumptions that include significant risks that can materially change the carrying amounts of assets and liabilities as of the reporting date are as follows:

(a) Fair value of financial instruments

The fair value of financial instruments (e.g., over-the-counter derivatives) that are not traded in an active trading market is determined using valuation techniques. As of the end of the reporting period, the Group makes judgments regarding the selection and assumptions of various valuation techniques based on major market conditions. When the valuation model is used to determine the fair value of various financial instruments that are not traded in the normal trading market, the Group uses a variety of methods from the general valuation model to the developed self-evaluation model, in which various input variables and assumptions are applied.

(b) Allowance for credit losses and provision for unused commitments

The Group assesses the impairment of the loan receivables and establishes provisions for bad debts and for unused commitment limits. The provision for such credit losses is determined by the assumptions and variables of the model used to estimate expected cash flows for each borrower to estimate the individual bad debt allowance and the collective bad debt allowance and unused commitment allowance.

(c) Impairment of non-financial assets

The Group evaluates the existence of signs of impairment for all non-financial assets at the end of each reporting period. However, for intangible assets with indefinite useful life, the impairment test is conducted every year by comparing the recoverable amount and the carrying amount regardless of signs suggesting impairment. Other non-financial assets are being tested for impairment when there is an indication that the carrying amount will not be recoverable. To calculate the value-in-use, the management chooses an appropriate discount rate to estimate the expected future cash flows from the asset or cash-generating unit and calculate the present value of the expected future cash flows.

(d) Defined benefit obligation

The present value of defined benefit obligations may vary depending on various factors determined by actuarial methods that use many assumptions. The assumptions used to determine the net cost (benefit) of the pension include the discount rate, and changes in these assumptions will affect the carrying amount of the defined benefit obligation.

The Group determines the appropriate discount rate at the end of each year. These discount rates represent the interest rates that should be used to determine the present value of estimated future cash outflows expected to occur when the defined benefit obligation is settled. The Group determines the appropriate discount rate by considering the interest rate of high-quality corporate bonds that are denominated in the currency in which the pension will be paid and have maturity similar to that of the related defined benefit obligation.

Other major assumptions related to defined benefit obligations are based on some current market conditions.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

10. Material accounting estimates and judgments (continued)

(e) Insurance contract liabilities and reinsurance contract assets (liabilities)

The Group calculates the present value of the future cash flows of the remaining benefit liabilities and incurred claims liabilities for measurement purposes. This involves estimating the neutral present value of future cash flows, considering the time value of money, adjusting for financial risks associated with future cash flows, and making risk adjustments for non-financial risks. The measurement of the present value of these cash flows is determined by estimating relevant market variables, assessing uncertainties regarding the amounts and timing of future cash flows, considering actuarial and economic assumptions, and other risks.

The number of coverage units in the group of insurance contracts is determined by considering the amount of benefit provided by contracts within the group the duration of expected coverage, the frequency and recurrence of the coverage risk for all coverage units allocated to the current period.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

11. Cash and due from banks at amortized cost

(a) Cash and due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025		2024
Cash and cash equivalents:
Savings account	W	113,761		138,684
Current account		55		57
Others		1,526,743		691,258
		1,640,559		829,999
Due from banks at amortized cost:
Time deposit		532,292		539,407
Installment savings		168,250		228,250
Other deposits		198,879		100,403
(Credit loss allowance)		(1,752)		(2,731)
		897,669		865,329
	W	2,538,228		1,695,328

(b) Restricted due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025		2024		Restrictions<br><br>on use
Due from banks denominated in won	W	71,906		60,661		Sales-related pledge establishment,<br><br>deposits for opening current accounts, deposits for futures transactions, etc.
Due from banks denominated in foreign currency		112,904		15,735
	W	184,810		76,396

(*) Due from banks at amortized cost is the amount before deducting the credit loss allowance.

(c) The changes in credit loss allowance for due from banks at amortized cost for the years ended December 31, 2025 and 2024, are as follows:

		Designated for measurement of<br><br>12-month expected credit loss
		2025		2024
Beginning balance of credit loss allowance	W	2,731		2,682
Provision for credit loss allowance		(881)		(112)
Others (*)		(98)		161
Ending balance of credit loss allowance	W	1,752		2,731

(*) Other changes are due to exchange rate fluctuations.

(d) Gains or losses arising from the derecognition of due from banks at amortized cost for the year ended December 31, 2025 are as follows:

		Carrying amount (*)		Gains or losses
Installment savings	W	122,550		17,064
Time deposits		33,186		(6,071)

(*) The carrying amount includes accrued interest of W65,736 million.

The installment savings and the time deposits were early redeemed and derecognized from financial as a result of the issuer’s early termination and the closure of the related business segment, respectively during the year ended December 31, 2025.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

12. Financial assets at fair value through profit or loss

(a) Financial assets at fair value through profit or loss as of December 31, 2025 and 2024, are as follows:

		2025		2024
Due from banks:
Due from banks in foreign currency	W	40,862		35,450
Securities:
Debt securities:
Government bonds		1,146,044		1,395,210
Special purpose bonds		83,762		67,325
Financial institutions bonds		177,496		204,029
Corporate bonds		108,745		146,417
Puttable stocks		53,233		56,035
Puttable equity instruments		259,238		245,761
Beneficiary certificates		6,145,380		5,850,511
Other securities		139,540		202,256
Debt securities in foreign currency		284,767		223,895
Puttable financial instruments in foreign currency		2,408		3,035
Beneficiary certificates in foreign currency		2,230,885		1,400,558
Other securities in foreign currency		165,600		214,102
		10,797,098		10,009,134
Equity securities:
Stocks		1,908,466		1,187,865
Other foreign securities		1,457		668
		1,909,923		1,188,533
		12,707,021		11,197,667
	W	12,747,883		11,233,117

(b) Gains and losses on financial assets at fair value through profit or loss

Gains and losses on financial assets at fair value through profit or loss for the years ended December 31, 2025 and 2024, are as follows:

		2025		2024
Gain on financial assets measured at fair value through profit or loss:
Gain on valuation	W	1,292,826		478,329
Gain on disposal		417,684		269,545
Others		214,632		243,978
		1,925,142		991,852
Loss on financial assets measured at fair value through profit or loss:
Loss on valuation		191,114		449,660
Loss on disposal		67,469		180,701
		258,583		630,361
Net gain (loss) on financial assets at fair value through profit or loss	W	1,666,559			361,491

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

13. Securities at fair value through other comprehensive income

(a) Securities at fair value through other comprehensive income as of December 31, 2025 and 2024, are as follows:

		2025		2024
Debt securities:
Government bonds	W	21,835,014		22,596,093
Special purpose bonds		5,982,047		7,143,921
Financial institution bonds		832,580		1,189,289
Corporate bonds		2,078,925		2,868,627
Debt securities in foreign currency		4,879,801		4,064,562
		35,608,367		37,862,492
Equity securities (*):
Stocks		1,522		2,504
Other securities		100,429		158,911
		101,951		161,415
	W	35,710,318		38,023,907

(*) The Group elected to designate as equity securities measured at fair value through other comprehensive income for reasons such as retention as required by its policy.

(b) Changes in total carrying amount

The changes in total carrying amount of debt securities at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance (*1)	W	37,862,492		35,564,618
Acquisition		4,352,645		4,651,017
Disposal and redemption		(5,070,702)		(4,136,394)
Others (*2)		(1,536,068)		1,783,251
Ending balance (*1)	W	35,608,367		37,862,492

(*1) The total carrying amount subject to credit loss allowance is the amortized cost of the debt securities.

(*2) Included the effects of valuation, changes in foreign exchange rates, etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

13. Securities at fair value through other comprehensive income (continued)

(c) Changes in credit loss allowance

Changes in credit loss allowance for debt securities at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance (*)	W	8,207		9,466
Reversal of credit loss allowance		(1,049)		(1,257)
Other		(13)		(2)
Ending balance (*)	W	7,145		8,207

(*) The above provisions for credit loss were recognized in gains (losses) on valuation of securities at fair value through other comprehensive income and were not adjusted to the carrying amount of the corresponding assets in the consolidated statements of financial position.

(d) Equity instruments designated at fair value through other comprehensive income were disposed during the years ending December 31, 2025 and 2024. At the time of disposals, the fair value and accumulated valuation gains or losses are as follows:

		2025
		Fair value at disposal date		Accumulated gains/losses at disposal date
Other securities	W	60,000		-

(*) The disposal was made as a result of the issuer’s exercise of the call option on the hybrid bonds.

		2024
		Fair value at disposal date		Accumulated gains/losses at disposal date
Stocks	W	100		(41)

(*) The disposal was made due to a change in holding purpose, and the accumulated valuation gains or losses were transferred to unappropriated retained earnings.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

13. Securities at fair value through other comprehensive income (continued)

(e) The dividend income recognized related to equity instruments at fair value through other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Dividend income recognized from assets held at the end of<br><br>the reporting period
Other Securities	W	4,580		4,399
Dividend income recognized from assets disposed of<br><br>during the reporting period
Other Securities		1,171		-
	W	5,751		4,399

(f) Gains and losses on disposal of securities at fair value through other comprehensive income recognized for the years ended December 31, 2025 and 2024, are as follows:

		2025		2024
Gain on disposal of securities at fair value through other<br><br>comprehensive income	W	81,508		79,735
Loss on disposal of securities at fair value through other<br><br>comprehensive income		(64,118)		(96,475)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

14. Securities at amortized cost

(a) Securities at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025		2024
Government bonds	W	3,509,359		3,489,625
Special purpose bonds		441,168		442,475
Foreign currency-denominated securities		8,190		5,770
(Credit loss allowance)		(258)		(254)
	W	3,958,459		3,937,616

(b) Changes in total carrying amount

Changes in total carrying amounts of securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance	W	3,937,870		4,348,231
Acquisition		2,655		5,460
Disposal		-		(427,907)
Others (*)		18,192		12,086
Ending balance	W	3,958,717		3,937,870

(*) The amounts include amortization recognized using the effective interest method.

(c) Changes in credit loss allowance

Changes in credit loss allowance for securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance	W	254		208
Provision for (reversal of) credit loss allowance		7		43
Others (*)		(3)		3
Ending balance	W	258		254

(*) Other changes represent amounts arising from changes in exchange rates.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

14. Securities at amortized cost (continued)

(d) Gains or losses on derecognition

Gains or losses on derecognition of securities at amortized cost for the year ended December 31, 2024 are as follows:

		Par value		Book value		Profits or losses resulting from derecognition (*)
Government bonds	W	370,000		427,906		21,719

(*) W 42,081 million of accumulated other comprehensive income on bond forwards was reclassified as profit for the year and included in the profit or loss amount due to disposal upon the derecognition of securities at amortized cost.

Certain securities at amortized cost were disposed during the year ended December 31, 2024 to secure additional asset duration for the purpose of comprehensive assets and liabilities management in response to changes in interest rates.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

15. Investments in associates

(a) Investments in associates as of December 31, 2025 and 2024 are as follows:

Investees		Location		Reporting month of the financial statements		Ownership (%)				Carrying amount
									2025		2024		2025		2024
iPIXEL Co., Ltd. (*)		Korea		December		10.44		10.51	W	-		-
Findvalue JD Fund No.1		Korea		December		27.03		27.03		871		897
IGIS Private Real Estate Investment Trust 517-1		Korea		December		46.84		46.78		26,610		26,565
IGIS Private Real Estate Investment Trust 562-1		Korea		December		50.00		-		11,993		-
									W	39,474		27,462

(*) Although the ownership percentages are less than 20%, the Group applies the equity method accounting as it participates in policy-making processes and therefore can exercise significant influence on the investee.

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows:

		2025
Investees		Beginning<br><br>balance		Acquisition		Equity method<br>gain (loss)		Ending<br><br>balance
Findvalue JD Fund No.1	W	897		-		(26)		871
IGIS Private Real Estate Investment Trust 517-1		26,565		1,440		(1,395)		26,610
IGIS Private Real Estate Investment Trust 562-1		-		13,000		(1,007)		11,993
	W	27,462		14,440		(2,428)		39,474
		2024
---	---	---	---	---	---	---	---	---
Investees		Beginning<br><br>balance		Acquisition		Equity method<br>gain (loss)		Ending<br><br>balance
Findvalue JD Fund No.1	W	884		-		13		897
IGIS Private Real Estate Investment Trust 517-1		25,072		2,400		(907)		26,565
	W	25,956		2,400		(894)		27,462

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

15. Investments in associates (continued)

(c) The financial position as of December 31, 2025 and 2024 and the summary financial information of the associate related to management performance for the years ended December 31, 2025 and 2024 are as follows.

		2025
Investees		Assets		Liabilities		Equity		Operating income		Net income		Total comprehensive income
iPIXEL Co., Ltd.	W	687		591		96		(1,230)		(233)		(233)
Findvalue JD Fund No.1		3,224		-		3,224		-		(76)		(76)
IGIS Private Real Estate Investment Trust 517-1		58,089		346		57,743		11		(776)		(776)
IGIS Private Real Estate Investment Trust 562-1		25,127		663		24,464		127		(1,535)		(1,535)
	W	87,127		1,600		85,527		(1,092)		(2,620)		(2,620)
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---
Investees		Assets		Liabilities		Equity		Operating income		Net income		Total comprehensive income
iPIXEL Co., Ltd.	W	881		564		317		14		(1,396)		(1,396)
Findvalue JD Fund No.1v		3,300		-		3,300		-		(278)		(278)
IGIS Private Real Estate Investment Trust 517-1		57,133		346		56,787		55		(1,939)		(1,939)
	W	61,314		910		60,404		69		(3,613)		(3,613)

(d) Reconciliation of the financial information of associates to the carrying amounts of interests in associates as of December 31, 2025 and 2024 is as follows:

		2025
Investees		Net assets (a)		Ownership interest (b)		Share of net assets (a)x(b)		Unrealized<br>gains or losses		Others (*)		Carrying amount
iPIXEL Co., Ltd.	W	96		10.44%		10		-		(10)		-
Findvalue JD Fund No.1		3,224		27.03%		871		-		-		871
IGIS Private Real Estate Investment Trust 517-1		57,743		46.84%		27,049		(439)		-		26,610
IGIS Private Real Estate Investment Trust 562-1		24,464		50.00%		12,232		(264)		25		11,993
	W	85,527				40,162		(703)		15		39,474

(*) Others represent adjustments between the financial statements as of the valuation date used in the external fair value assessment and the financial statements as of the reporting date.

		2024
Investees		Net assets (a)		Ownership interest (b)		Share of net assets (a)x(b)		Unrealized<br>gains or losses		Others (*)		Carrying amount
iPIXEL Co., Ltd.	W	317		10.51%		33		-		(33)		-
Findvalue JD Fund No.1		3,300		27.03%		892		-		5		897
IGIS Private Real Estate Investment Trust 517-1		56,787		46.78%		26,565		-		-		26,565
	W	60,404				27,490		-		(28)		27,462

(*) Others represent adjustments between the financial statements as of the valuation date used in the external fair value assessment and the financial statements as of the reporting date.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost

(a) Loans and receivables at amortized cost as of December 31, 2025 and 2024 are as follows:

i) Loans at amortized cost

		2025		2024
Mortgage loans	W	632,526		679,799
Credit loans		1,322,447		1,754,050
Loans secured by third party guarantee		270,361		349,487
Other loans		64,100		60,900
		2,289,434		2,844,236
Deferred loan origination cost (fees)		(3,468)		783
(Credit loss allowance)		(27,905)		(35,565)
	W	2,258,061		2,809,454

ii) Receivables at amortized cost

		2025		2024
Receivables, etc.	W	108,303		104,906
Deposits		63,436		59,111
Accrued income		1,135,133		1,098,820
Others		35,105		-
		1,341,977		1,262,837
(Present value discounts)		(2,416)		(2,793)
(Credit loss allowance)		(29,675)		(38,064)
	W	1,309,886		1,221,980

(b) Changes in total carrying amount

Changes in total carrying value of loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

i) Loans at amortized cost

		2025
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset
Beginning balance	W	682,492		22,798		17,974		1,858,681		263,074		-		2,845,019
Transfer to (from)<br><br>12-month expected credit losses		6,614		(6,567)		(47)		-		-		-		-
Transfer to (from) lifetime expected credit losses		(7,251)		7,490		(239)		-		-		-		-
Transfer to (from) impaired financial asset		(17,713)		(3,280)		20,993		-		(3,591)		3,591		-
Origination, collection and others		(145,135)		(4,904)		(3,484)		(223,079)		(167,242)		-		(543,844)
Charge off (*)		-		-		(13,074)		-		-		-		(13,074)
Disposal		-		-		(2,135)		-		-		-		(2,135)
Ending balance	W	519,007		15,537		19,988		1,635,602		92,241		3,591		2,285,966

(*) The amount of uncollected loans (principal) at amortized cost, which has been charged off but is still being recovered as of December 31, 2025, is W21,562 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost (continued)

(b) Changes in total carrying amount (continued)

Changes in total carrying amount of loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows: (continued)

i) Loans at amortized cost (continued)

		2024
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset
Beginning balance	W	770,296		24,596		14,249		2,640,162		211,068		-		3,660,371
Transfer to (from)<br><br>12-month expected credit losses		7,948		(7,782)		(166)		20,000		(20,000)		-		-
Transfer to (from) lifetime expected credit losses		(13,075)		13,322		(247)		(54,617)		54,617		-		-
Transfer to (from) impaired financial asset		(16,789)		(1,766)		18,555		-		-		-		-
Origination, collection and others		(65,888)		(5,572)		(2,619)		(746,864)		17,389		-		(803,554)
Charge off (*)		-		-		(10,660)		-		-		-		(10,660)
Disposal		-		-		(1,138)		-		-		-		(1,138)
Ending balance	W	682,492		22,798		17,974		1,858,681		263,074		-		2,845,019

(*) The amount of uncollected loans (principal) at amortized cost, which has been charged off but is still being recovered as of December 31, 2024, is W 32,322 million.

ii) Receivables at amortized cost

		2025
		12-month<br><br>expected credit loss		Lifetime<br><br>expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	2,914,553		2,498		41,349		2,958,400
Transfer to (from) 12-month<br><br>expected credit losses		33		(31)		(2)		-
Transfer to (from) lifetime expected credit losses		(31)		40		(9)		-
Transfer to (from) impaired financial assets		(1,699)		9		1,690		-
Origination, collection and others		896,617		(302)		(77)		896,238
Charge off		-		-		(10,202)		(10,202)
Ending balance (*)	W	3,809,473		2,214		32,749		3,844,436

(*) Included the total carrying amounts of cash and cash equivalents and due from banks at amortized cost.

		2024
		12-month<br><br>expected credit loss		Lifetime<br><br>expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	2,986,884		2,176		44,921		3,033,981
Transfer to (from) 12-month<br><br>expected credit losses		57		(54)		(3)		-
Transfer to (from) lifetime expected credit losses		(171)		174		(3)		-
Transfer to (from) impaired financial assets		(98)		(700)		798		-
Origination, collection and others		(72,119)		902		(259)		(71,476)
Charge off		-		-		(4,105)		(4,105)
Ending balance (*)	W	2,914,553		2,498		41,349		2,958,400

(*) Included the total carrying amounts of cash and cash equivalents and due from banks at amortized cost.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost (continued)

(c) Changes in credit loss allowance

Changes in credit loss allowance for loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

i) Loans at amortized cost

		2025
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>assets		12-month expected credit loss		Lifetime expected credit loss		Impaired financial assets
Beginning balance	W	8,353		3,719		13,302		4,119		6,072		-		35,565
Transfer to (from)<br><br>12-month expected credit losses		1,210		(1,168)		(42)		-		-		-		-
Transfer to (from) lifetime expected credit losses		(363)		448		(85)		-		-		-		-
Transfer to (from) impaired financial asset		(489)		(583)		1,072		-		(798)		798		-
Provision (reversal)		(3,773)		(1,022)		11,380		(668)		(3,976)		2,793		4,734
Collection		-		-		1,787		-		-		-		1,787
Charge off		-		-		(13,075)		-		-		-		(13,075)
Disposal		-		-		(1,106)		-		-		-		(1,106)
Ending balance	W	4,938		1,394		13,233		3,451		1,298		3,591		27,905
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>assets		12-month expected credit loss		Lifetime expected credit loss		Impaired financial assets
Beginning balance	W	8,082		3,184		9,845		5,806		10,553		-		37,470
Transfer to (from)<br><br>12-month expected credit losses		1,282		(1,240)		(42)		301		(301)		-		-
Transfer to (from) lifetime expected credit losses		(357)		384		(27)		(120)		120		-		-
Transfer to (from) impaired financial asset		(382)		(286)		668		-		-		-		-
Provision (reversal)		(272)		1,677		12,173		(1,868)		(4,300)		-		7,410
Collection		-		-		1,780		-		-		-		1,780
Charge off		-		-		(10,660)		-		-		-		(10,660)
Disposal		-		-		(435)		-		-		-		(435)
Ending balance	W	8,353		3,719		13,302		4,119		6,072		-		35,565

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost (continued)

(c) Changes in credit loss allowance (continued)

Changes in credit loss allowance for loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows: (continued)

ii) Receivables at amortized cost

		2025
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance (*1)	W	3,317		90		37,388		40,795
Transfer to (from) 12-month expected credit losses		8		(6)		(2)		-
Transfer to (from) lifetime expected credit losses		(2)		8		(6)		-
Transfer to (from) impaired financial assets		(1,758)		(10)		1,768		-
Provision (reversal)		801		(32)		(126)		643
Collection		-		-		289		289
Charge off		-		-		(10,202)		(10,202)
Others (*2)		(98)		-		-		(98)
Ending balance (*1)	W	2,268		50		29,109		31,427

(*1) Included credit loss allowance for due from banks at amortized cost.

(*2) Included the effects of changes in foreign exchange rates.

		2024
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance (*1)	W	3,250		82		39,611		42,943
Transfer to (from) 12-month expected credit losses		8		(5)		(3)		-
Transfer to (from) lifetime expected credit losses		(2)		5		(3)		-
Transfer to (from) impaired financial assets		(2)		(15)		17		-
Provision (reversal)		(109)		23		1,722		1,636
Collection		-		-		149		149
Charge off		-		-		(4,105)		(4,105)
Others (*2)		172		-		-		172
Ending balance (*1)	W	3,317		90		37,388		40,795

(*1) Included credit loss allowance for due from banks at amortized cost.

(*2) Included the effects of changes in foreign exchange rates.

(d) Deferred loan origination cost (fees)

Changes in deferred loan origination cost (fees) for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Beginning balance	W	783		(194)
Loan origination		(5,181)		(1,313)
Amortization		930		2,290
Ending balance	W	(3,468)		783

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

17. Lease

(a) Details of the right-of-use assets as of December 31, 2025 and 2024 are as follows:

		2025
		Acquisition cost		Accumulated depreciation		Carrying amount
Real estate	W	226,848		(152,084)		74,764
Vehicle		1,283		(607)		676
	W	228,131		(152,691)		75,440
		2024
---	---	---	---	---	---	---
		Acquisition cost		Accumulated depreciation		Carrying amount
Real estate	W	213,019		(123,534)		89,485
Vehicle		1,297		(540)		757
	W	214,316		(124,074)		90,242

(b) Changes in the right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Real estate		Vehicle		Total
Beginning balance	W	89,485		756		90,241
Acquisition		30,559		412		30,971
Disposal		(5,196)		(150)		(5,346)
Depreciation		(38,902)		(342)		(39,244)
Transfer		(681)		-		(681)
Effects of foreign currency movements		(501)		-		(501)
Ending balance	W	74,764		676		75,440
		2024
---	---	---	---	---	---	---
		Real estate		Vehicle		Total
Beginning balance	W	96,775		831		97,606
Acquisition		33,539		462		34,001
Disposal		(2,566)		(189)		(2,755)
Depreciation		(38,753)		(347)		(39,100)
Transfer		(275)		-		(275)
Effects of foreign currency movements		765		-		765
Ending balance	W	89,485		757		90,242

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

17. Lease (continued)

(c) The amount recognized in profit or loss for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Depreciation of right-of-use assets	W	39,243		39,100
Interest expenses of lease liability		2,553		2,937
Expenses related to low-value lease assets		849		1,178
		42,645		43,215
Revenues from sublease of right-of-use assets		(98)		(92)
	W	42,547		43,123

(d) Total cash outflows from leases for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Cash outflows of lease liabilities	W	36,225		36,043
Cash outflows of low-value lease assets		849		1,178
	W	37,074		37,221

(e) The estimated timing of outflows of lease liabilities as of the years ended December 31, 2025 and 2024 are as follows:

		2025
Due (*)		Real estate		Vehicle		Total
In 1 month or less	W	3,614		30		3,644
After 1 month through 3 months		5,335		60		5,395
After 3 months through 6 months		9,881		87		9,968
After 6 months through 1 year		17,984		159		18,143
After 1 year through 5 years		39,311		392		39,703
After 5 years		3,773		-		3,773
	W	79,898		728		80,626

(*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

		2024
Due (*)		Real estate		Vehicle		Total
In 1 month or less	W	3,453		30		3,483
After 1 month through 3 months		6,639		60		6,699
After 3 months through 6 months		9,866		90		9,956
After 6 months through 1 year		18,652		171		18,823
After 1 year through 5 years		52,981		468		53,449
After 5 years		4,981		-		4,981
	W	96,572		819		97,391

(*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

18. Property and equipment

(a) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

				2025
		Acquisition cost				Accumulated<br><br>depreciation		Accumulated<br><br>impairment		Carrying amount
Land	W	43,333				-		-		43,333
Buildings		36,913				(9,802)		(10,851)		16,260
Structure		3,894				(2,755)		(780)		359
Rental property (*)		56,483				(40,104)		-		16,379
Equipment (*)		131,146				(105,752)		-		25,394
Construction in progress		30,062				-		-		30,062
Other assets		6,026				-		-		6,026
	W	307,857				(158,413)		(11,631)		137,813

(*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

				2024
		Acquisition cost				Accumulated<br><br>depreciation		Accumulated<br><br>impairment		Carrying amount
Land	W	43,333				-		-		43,333
Buildings		36,913				(9,328)		(9,979)		17,606
Structure		3,894				(2,659)		(728)		507
Rental property (*)		48,851				(33,653)		-		15,198
Equipment (*)		123,933				(94,834)		-		29,099
Construction in progress		2,645				-		-		2,645
Other assets		387				-		-		387
	W	259,956				(140,474)		(10,707)		108,775

(*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

18. Property and equipment (continued)

(b) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impairment		Depreciation		Ending balance
Land	W	43,333		-		-		-		-		-		43,333
Buildings		17,606		-		-		-		(872)		(474)		16,260
Structure		507		-		-		-		(52)		(96)		359
Rental property		15,198		8,135		(227)		-		-		(6,727)		16,379
Equipment		29,099		8,052		(219)		1,345		-		(12,883)		25,394
Construction in progress		2,645		27,417		-		-		-		-		30,062
Other assets		387		5,797		-		(158)		-		-		6,026
	W	108,775		49,401		(446)		1,187		(924)		(20,180)		137,813

(*) Included amounts transferred from other property and equipment to equipment, and the effect of exchange rate fluctuations.

		2024
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impairment		Depreciation		Ending balance
Land	W	12,877		24,348		-		6,108		-		-		43,333
Buildings		19,699		14		-		-		(1,590)		(517)		17,606
Structure		739		-		-		-		(113)		(119)		507
Rental property		17,500		4,359		(489)		509		-		(6,681)		15,198
Equipment		33,126		9,353		(319)		480		-		(13,541)		29,099
Construction in progress		6,288		2,465		-		(6,108)		-		-		2,645
Other assets		130		946		(13)		(676)		-		-		387
	W	90,359		41,485		(821)		313		(1,703)		(20,858)		108,775

(*) Included amounts transferred from construction in progress to land and others, and the effect of exchange rate fluctuations.

(c) As of December 31, 2025, there are no property and equipment provided as collateral.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

19. Intangible assets

(a) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

		2025								2024
		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-iyng amount		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-iyng amount
Goodwill	W	13,851		-		(3,560)		10,291		13,851		-		(3,560)		10,291
Development cost (*)		511,614		(404,612)		(1,168)		105,834		508,344		(343,941)		(1,168)		163,235
Software (*)		165,609		(128,106)		-		37,503		156,588		(112,848)		-		43,740
Membership		9,081		-		(382)		8,699		8,737		-		(380)		8,357
Others		31,321		(11)		-		31,310		7,123		(10)		-		7,113
	W	731,476		(532,729)		(5,110)		193,637		694,643		(456,799)		(5,108)		232,736

(*) The acquisition cost of and the accumulated amortization of the development cost and software include the amount related to government subsidies.

(b) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impair<br><br>-ment<br><br>loss		Amortiza<br><br>-tion		Ending balance
Goodwill	W	10,291		-		-		-		-		-		10,291
Development cost		163,235		3,818		-		1,727		-		(62,946)		105,834
Software		43,740		4,181		(7)		5,067		-		(15,478)		37,503
Membership		8,357		345		-		(1)		(2)		-		8,699
Others		7,113		33,683		(958)		(8,527)		-		(1)		31,310
	W	232,736		42,027		(965)		(1,734)		(2)		(78,425)		193,637

(*) Included amounts transferred from intangible assets under development to development cost and software, and the effect of exchange rate fluctuations.

		2024
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impair<br><br>-ment<br><br>loss		Amortiza<br><br>-tion		Ending balance
Goodwill	W	10,291		-		-		-		-		-		10,291
Development cost		179,693		12,544		(234)		33,189		(167)		(61,790)		163,235
Software		41,019		12,966		(272)		3,795		-		(13,768)		43,740
Membership		8,357		-		-		-		-		-		8,357
Others		18,411		25,703		-		(37,000)		-		(1)		7,113
	W	257,771		51,213		(506)		(16)		(167)		(75,559)		232,736

(*) Included amounts transferred from intangible assets under development to development cost and software, and the effect of exchange rate fluctuations.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

19. Intangible assets (continued)

(c) Goodwill

i) Composition of goodwill

The Group’s carrying amount of goodwill for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Shinhan Financial Plus Co., Ltd.	W	10,291		10,291

ii) Goodwill impairment test

① Explanation on evaluation method

The recoverable amounts of each cash-generating unit (CGU) are evaluated based on their respective value in use.

② Projection period

The evaluation date for recoverable amount is June 30, 2025. The forecast period for assessing utility value extends 5.5 years beyond the evaluation date (from July 2025 to December 2030), with the value thereafter reflecting perpetual value.

③ Discount rates and terminal growth rate

The required rates of return expected by shareholder are applied to the discount rates. It is calculated in consideration of which comprises a risk-free interest rate, a market risk premium and systemic risk (beta factor). Discount rates and terminal growth rates applied to each CGU are as follows:

		Discount rate (%)		Terminal growth rate (%)
Shinhan Financial Plus Co., Ltd.		7.6%		1.0%

④ Total recoverable amount and total carrying amount of CGUs to which goodwill has been allocated, are as follows:

		Amount
Total recoverable amount	W	18,908
Total carrying amount (*)		14,879
	W	4,029

(*) It is the amount reflected impairment loss incurred in the CGU.

As a result of the impairment assessment on the goodwill recognized by Shinhan Financial Plus Co., Ltd, the total carrying amount exceeds the total recoverable amount and thus no impairment loss was recognized.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

20. Insured assets

Details of insurance held for cash, securities and property and equipment of the Group as of the December 31, 2025 and 2024 are as follows:

						Amount covered
Insurance type		Insured assets		Insurance company		2025		2024
Comprehensive insurance for financial institutions		Electronic financial transaction		Meritz Fire & Marine<br><br>Insurance Co., Ltd., etc.	W	500		500
Comprehensive property insurance		Comprehensive property risk Mechanical risk<br><br>General liability risk		Meritz Fire & Marine<br><br>Insurance Co., Ltd., etc.		109,677		113,666
		Fire		DB Insurance Co, Ltd., etc.		-		5,725
Executive Liability Insurance		Directors and officers		Meritz Fire & Marine<br><br>Insurance Co., Ltd.		50,000		50,000
Other insurance 1		Personal information leakage		Meritz Fire & Marine<br><br>Insurance Co., Ltd., etc		5,000		6,000
Other insurance 2		Cash, securities		Meritz Fire & Marine<br><br>Insurance Co., Ltd.		30		270
Other insurance 3		Elevator accident		Samsung Fire & Marine<br><br>Insurance Co., Ltd.		90		90
					W	165,297		176,251

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

21. Investment properties

(a) Details of investment properties as of December 31, 2025 and 2024 are as follows:

		2025						2024
		Acquisition cost		Accumulated<br><br>depreciation		Carrying amount		Acquisition cost		Accumulated<br><br>depreciation		Carrying amount
Land	W	6,032		-		6,032		6,032		-		6,032
Buildings		10,649		(2,708)		7,941		10,649		(2,496)		8,153
	W	16,681		(2,708)		13,973		16,681		(2,496)		14,185

(b) Changes in investment properties for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,153		(212)		7,941
	W	14,185		(212)		13,973
		2024
---	---	---	---	---	---	---
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,365		(212)		8,153
	W	14,397		(212)		14,185

(c) Income and expenses on investment properties

Rental income on investment properties and direct operating expenses for investment properties that generated rental income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Rental income	W	990		812
Operating expenses		212		212

(d) Fair value measurement

i) The fair value of investment properties as of December 31, 2025 and 2024 are as follows:

		2025		2024
Land	W	13,481		13,850
Buildings		12,809		13,161
	W	26,290		27,011

The fair value of an investment property is determined by the value measured by an independent assessment agency that has recently assessed a similar property in the area of the investment property being assessed, which is classified as Level 3 fair value based on inputs used in the valuation technique.

ii) Valuation techniques and inputs used in measuring the fair value of investment properties are as follows:

		Valuation technique		2025		2024		Inputs
Land		Officially assessed land price-based approach	W	13,481		13,850		Officially assessed land price, transaction-related comparable cases
Buildings		Cost Approach		12,809		13,161		Transaction-related comparable cases
			W	26,290		27,011

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives

(a) Notional amounts of outstanding derivative contracts as of December 31, 2025 and 2024 are as follows

		2025		2024
Currency related derivatives:
Exchange traded:
Currency futures	W	857,030		787,438
Over the counter:
Currency forward		839,998		20,188
Equity related derivatives:
Exchange traded:
Equity futures		270,976		156,694
Over the counter:
Equity options		216,994		343,508
Interest rate related derivatives:
Exchange traded:
Interest rate futures		67,565		68,534
Other derivatives:
Exchange traded:
Commodity futures		9,392		7,705
		2,261,955		1,384,067
Hedges:
Fair value hedges:
Currency forward		1,037,603		887,925
Cash flow hedges:
Currency forward		2,338,128		2,034,281
Currency swaps		3,677,525		3,127,576
Interest rate forward		3,625,708		2,700,358
		10,678,964		8,750,140
	W	12,940,919		10,134,207

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(b) Fair value

The fair values of derivatives held as of December 31, 2025 and 2024 are as follows:

		2025				2024
		Assets		Liabilities		Assets		Liabilities
Currency related derivatives:
Over the counter:
Currency forward	W	5,345		22,443		-		1,799
Equity related derivatives:
Exchange traded:
Equity futures		309		12		-		159
Over the counter:
Equity options		965		-		526		-
Other derivatives:
Exchange traded:
Commodity futures		348		17		97		86
		6,967		22,472		623		2,044
Hedges:
Fair value hedges:
Currency forward		3,048		52,669		-		82,407
Cash flow hedges:
Currency forward		661		210,611		-		172,676
Currency swaps		2,601		412,716		2,369		245,963
Interest rate forward		26,745		239,191		114,530		53,280
		33,055		915,187		116,899		554,326
	W	40,022		937,659		117,522		556,370

(c) Gains or losses related to derivatives

Gains or losses related to derivatives for the years ended December 31, 2025 and 2024 are as follows:

			2025		2024
Gains related to derivatives	W	185,350			66,441
Losses related to derivatives		471,242			752,884

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Currency related derivatives:
Over the counter:
Currency forward	W	11,868		27,701		-
Equity related derivatives:
Exchange traded:
Equity futures		309		12		-
Over the counter:
Equity options		619		136		-
Other derivatives:
Exchange traded:
Commodity futures		349		16		-
		13,145		27,865		-
Hedges:
Fair value hedges:
Currency forward		3,134		20,082		-
Cash flow hedges:
Currency forward		15,031		25,424		(77,126)
Currency swaps		27,449		190,821		(69,574)
Interest rate forward		59		6,703		(267,674)
		45,673		243,030		(414,374)
	W	58,818		270,895		(414,374)

(*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the income tax effect.

(*2) Excluded the change in the accumulated other comprehensive income for the year ended December 31, 2025, amounting to W1,497 million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2025.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives (continued)

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Currency related derivatives:
Over the counter:
Currency forward	W	-		2,000		-
Equity related derivatives:
Exchange traded:
Equity futures		-		159		-
Over the counter:
Equity options		64		1,633		-
Other derivatives:
Exchange traded:
Commodity futures		97		87		-
		161		3,879		-
Hedges:
Fair value hedges:
Currency forward		-		87,711		-
Cash flow hedges:
Currency forward		-		196,570		20,961
Currency swaps		-		225,780		7,578
Interest rate forward		21		7,414		122,904
		21		517,475		151,443
	W	182		521,354		151,443

(*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the income tax effect.

(*2) Excluded the change in the accumulated other comprehensive income for the year ended December 31, 2024, amounting to W(88,537) million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2024.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(e) Gains or losses related to hedge

i) The amounts recognized in profit or loss due to the ineffectiveness of the hedge in fair value hedges for the years ended December 31, 2025 and 2024 are as follows:

		2025
Fair value hedge		Fair value hedge designated gains or losses (hedged item)		Fair value hedge designated gains or losses (hedging instrument)		Ineffective portion of hedge recognized at profit or loss (*)
Foreign currency risk	W	(11,237)		(9,662)		(20,899)

(*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

		2024
Fair value hedge		Fair value hedge designated gains or losses (hedge item)		Fair value hedge designated gains or losses (hedging instrument)		Ineffective portion of hedge recognized at profit or loss (*)
Foreign currency risk	W	102,006		(105,605)		(3,599)

(*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(e) Gains or losses related to hedge (continued)

ii) The amounts and the accounts affecting profit or loss and other comprehensive income due to the ineffectiveness of the hedge in cash flow hedges for the years ended December 31, 2025 and 2024 are as follows:

		2025
Cash flow hedge		Hedge gains or losses for the reporting period recognized at other comprehensive income (*1)		Ineffective portion of hedge recognized at profit or loss (*2)		Amount reclassified from cash flow hedge reserves to profit or loss
Interest rate risk	W	(267,674)		(6,022)		-
Foreign currency translation risk		(146,701)		(2,316)		(176,270)
Discontinuation of<br><br>Hedging (*3)		1,497		-		7
	W	(412,878)		(8,338)		(176,263)

(*1) Amount before deduction of income tax effect as other comprehensive income in the statement of comprehensive income.

(*2) Ineffective portion of hedge: difference of hedging gains or losses between the hedging instrument and the hedged item.

(*3) A derivative contract to avoid the risk of cash flow changes in debt securities due to changes in interest rates, which has matured as of the end of the reporting period.

		2024
Cash flow hedge		Hedge gains or losses for the reporting period recognized at other comprehensive income (*1)		Ineffective portion of hedge recognized at profit or loss (*2)		Amount reclassified from cash flow hedge reserves to profit or loss
Interest rate risk	W	122,904		(7,393)		-
Foreign currency translation risk		28,539		(1,934)		(461,137)
Discontinuation of<br><br>Hedging (*3)		(88,537)		-		47,915
	W	62,906		(9,327)		(413,222)

(*1) Amount before deduction of income tax effect as other comprehensive income in the statement of comprehensive income.

(*2) Ineffective portion of hedge: difference of hedging gains or losses between the hedging instrument and the hedged item.

(*3) A derivative contract to avoid the risk of cash flow changes in debt securities due to changes in interest rates, which has matured as of the end of the reporting period.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(f) Effects of hedge accounting on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated statement of changes in equity

i) Hedging purpose and strategy

The Group trades derivative instruments to avoid exchange risk and interest rate arising from the assets of the Group. The Group applies fair value hedge accounting using currency forward to avoid fair value changes due to exchange rate changes of foreign currency beneficiary certificates. The Group also applies cash flow hedge accounting using currency forward, currency swap and interest rate forward to avoid cash flow volatility caused by exchange rate and interest rate changes of foreign currency bonds and structured deposits, as well as bonds in Won.

ii) Average hedge ratio

Nominal amounts and average hedge ratios for hedging instruments for the years ended December 31, 2025 and 2024 are as follows:

		2025
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>3 years		After 3 years through<br><br>4 years		After 4 years through<br><br>5 years		After 5 years		Total
Interest rate risk
- Nominal amount of hedging instrument	W	1,064,184		821,851		894,267		741,241		52,300		51,865		3,625,708
- Average price		2.66%		3.16%		3.28%		2.78%		3.12%		3.12%
- Average hedge ratio		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
Foreign currency risk(*)
- Nominal amount of hedging instruments	W	1,530,984		1,001,516		1,950,103		920,071		889,076		761,506		7,053,256
- Average hedge ratio:		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%

(*) The average exchange rates for the hedging instruments are USD/KRW 1,299.36, EUR/KRW 1,488.89, GBP/KRW 1,484.00, AUD/KRW 886.93, and SEK/KRW 130.77.

		2024
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>3 years		After 3 years through<br><br>4 years		After 4 years through<br><br>5 years		After 5 years		Total
Interest rate risk
- Nominal amount of hedging instrument	W	103,543		1,064,184		670,683		673,962		83,822		104,164		2,700,358
- Average price		3.20%		2.66%		3.24%		3.46%		3.28%		3.12%
- Average hedge ratio		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
Foreign currency risk(*)
- Nominal amount of hedging instruments	W	1,394,926		808,654		1,203,322		1,457,542		737,635		447,703		6,049,782
- Average hedge ratio:		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%

(*) The average exchange rates for the hedging instruments are USD/KRW 1,276.06, EUR/KRW 1,396.60, GBP/KRW 1,569.16, AUD/KRW 883.39, and SEK/KRW 127.57.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(f) Effects of hedge accounting on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated statement of changes in equity (continued)

iii) The impact of hedging instruments on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated statement of changes in equity as of and for the years ended December 31, 2025 and 2024

		2025
		Nominal amount		Carrying value				Fair value changes during the period
						Asset			Liability
Fair value hedge:
Currency forward	W	1,037,603		3,048		52,669		(9,662)
Cash flow hedge:
Interest rate forward		3,625,708		26,745		239,191		(273,328)
Currency swap		3,677,525		2,601		412,716		(227,548)
Currency forward		2,338,128		661		210,611		(85,023)
		2024
---	---	---	---	---	---	---	---	---	---	---
		Nominal amount		Carrying value				Fair value changes during the period
					Asset		Liability
Fair value hedge:
Currency forward	W	887,925		-		82,407		(105,605)
Cash flow hedge:
Interest rate forward		2,700,358		114,530		53,280		87,936
Currency swap		3,127,576		2,369		245,963		(214,801)
Currency forward		2,034,281		-		172,676		(173,472)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(f) Effects of hedge accounting on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated `statement of changes in equity (continued)

iv) The impact of hedged items on the consolidated statement of financial position, the consolidated statement of comprehensive income, the consolidated statement of changes in equity as of and for the years ended December 31, 2025 and 2024

		2025
		Carrying value				Accumulated adjustments for fair value hedge				FV changes during the period		Cash flow hedge reserves
		Asset		Liability		Asset		Liability
Fair value hedge
Foreign exchange risk: securities in foreign currencies	W	1,031,379		-		-		-		(11,237)		-
Cash flow hedge
Interest rate risk: bonds in won and in foreign currencies		488,318		-		-		-		-		(222,410)
Foreign exchange risk: bonds and loans in foreign currencies		4,388,035		-		-		-		153,355		(67,534)
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Carrying value				Accumulated adjustments for fair value hedge				FV changes during the period		Cash flow hedge reserves
		Asset		Liability		Asset		Liability
Fair value hedge
Foreign exchange risk: securities in foreign currencies	W	948,976		-		-		-		102,006		-
Cash flow hedge
Interest rate risk: bonds in won and in foreign currencies		409,183		-		-		-		-		43,768
Foreign exchange risk: bonds and loans in foreign currencies		3,698,841		-		-		-		413,772		79,166

(g) As of December 31, 2025, due from banks with restriction on use related to derivative transactions is W83,907 million (W74,296 as of December 31, 2024) and W28,942 million of which is deposited at Shinhan Securities Co., Ltd., a related party.

(h) As of December 31, 2025, financial assets of W1,264,644 million (W718,881 million as of December 31, 2024) are provided as collateral to financial institutions such as Samsung Futures Co., Ltd. for derivatives transactions. Of these, the collateral amount provided to the related parties, Shinhan Securities Co., Ltd. and Shinhan Bank Co., Ltd. are W30,537 and W146,627 million, respectively.

(i) As of December 31, 2025, the quantified effect of the mitigation of credit risk related to derivative assets, resulting from collateral held such as securities, amounts to W21,640 million (W81,381 million as of December 31, 2024).

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

23. Other assets

Other assets as of December 31, 2025 and 2024 are as follows:

		2025		2024
Prepaid expense	W	130,950		122,025
Prepayments		1,332		73
Others		365		353
	W	132,647		122,451

24. Pledged Assets

The assets pledged as collateral as of December 31, 2025 and 2024 are as follows:

		2025		2024		Reason for collateral
Securities at fair value through profit or loss	W	170,521		101,197		Variable insurance funds substitute securities transactions
Securities at fair value through other comprehensive income		1,152,880		512,157		Derivatives, compensation joint fund, coinsurance
Securities at amortized cost		183,450		105,527		Derivatives
Investment property		376		376		Collateral mortgage
Time Deposits		2,010		2,061		Pledge assets
	W	1,509,237		721,318

25. Insurance contract liabilities

(a) The carrying amounts of insurance contract liabilities as of December 31, 2025 and 2024, are as follows:

i) By insurance product

		2025		2024
Life	W	17,898,335		17,613,660
Health		4,954,917		5,411,290
Annuity & savings		19,245,300		20,425,184
Variable		5,814,382		4,970,854
	W	47,912,934		48,420,988

ii) By type of insurance contract

		2025		2024
Participating	W	5,089,929		5,318,700
Non-participating		37,008,623		38,131,434
Variable		5,814,382		4,970,854
	W	47,912,934		48,420,988

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows:

		2025
		General measurement model						Variable fee approach						Premium allocation approach
		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin
Non-Par
Participating life	W	711,307		9,044		46,786		-		-		-		-
Non-participating life		9,660,088		527,280		2,480,856		-		-		-		-
Participating health		33,519		590		4,290		-		-		-		-
Non-participating health		598,123		603,402		3,095,108		-		-		-		75
Participating annuity & savings		1,226,299		3,122		86		-		-		-		-
Non-participating annuity & savings		1,034,861		833		63		-		-		-		801
Indirect-Par
Non-participating life		3,337,719		105,403		531,706		-		-		-		-
Variable life		1,067,440		55,890		90,018		-		-		-		-
Participating annuity & savings		2,748,281		6,317		79,703		-		-		-		-
Non-participating annuity & savings		11,039,593		44,773		961,124		-		-		-		-
Asset-linked annuity & savings		1,330,933		4,606		131,956		-		-		-		-
Direct-Par
Variable annuity & savings		-		-		-		4,383,410		21,518		133,201		-
Subtotal
Participating		4,719,406		19,073		130,865		-		-		-		-
Non-participating		27,001,317		1,286,297		7,200,813		-		-		-		876
Variable		1,067,440		55,890		90,018		4,383,410		21,518		133,201		-
	W	32,788,163		1,361,260		7,421,696		4,383,410		21,518		133,201		876

(*) The above table resents the liabilities for remaining coverage, where

1. Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2. Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3. Direct-par: Groups of insurance contracts with direct participation features.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows: (continued)

		2024
		General measurement model						Variable fee approach						Premium allocation approach
		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin
Non-Par
Participating life	W	745,498		9,632		37,819		-		-		-		-
Non-participating life		9,422,649		517,744		2,397,806		-		-		-		-
Participating health		41,039		662		2,939		-		-		-		-
Non-participating health		1,140,636		558,115		3,004,689		-		-		-		171
Participating annuity & savings		1,283,222		4,022		91		-		-		-		-
Non-participating annuity & savings		833,532		359		70		-		-		-		-
Indirect-Par
Non-participating life		3,332,895		116,290		551,776		-		-		-		-
Variable life		789,150		56,804		87,522		-		-		-		-
Participating annuity & savings		2,888,543		6,661		77,684		-		-		-		-
Non-participating annuity & savings		12,361,824		40,368		891,849		-		-		-		-
Asset-linked annuity & savings		1,299,061		2,990		126,162		-		-		-		-
Direct-Par
Variable annuity & savings		-		-		-		3,908,127		19,038		48,386		-
Subtotal
Participating		4,958,302		20,977		118,533		-		-		-		-
Non-participating		28,390,597		1,235,866		6,972,352		-		-		-		171
Variable		789,150		56,804		87,522		3,908,127		19,038		48,386		-
	W	34,138,049		1,313,647		7,178,407		3,908,127		19,038		48,386		171

(*) The above table resents the liabilities for remaining coverage, where

1. Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2. Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3. Direct-par: Groups of insurance contracts with direct participation features.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

25. Insurance contract liabilities (continued)

(c) As of December 31, 2025, and December 31, 2024, the Group applied the following assumptions for estimating future cash flows for the contracts held, along with the basis for their determination.

Classification		2025		2024		Assumptions and measurement basis
Lapse ratio		0% ~ 66.77%		0% ~ 69.75%		- The ratio of lapsed contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-lapse-value insurance products), and duration.<br><br>- For zero/low-lapse-value insurance products, the lapse ratio for the period when there is insufficient experience statistics is calculated, using the log-linear regression model, so that it converges to 0.1% at the time of completion of premium payments
Loss ratio		3.16% ~ 1,787.70%		8% ~ 316%		- Other than general mortality: the ratio of accident claims to insurance premiums to on-level risk insurance premiums by risk coverage and elapsed period based on the last five years' experience statistics<br><br>- General mortality: the ratio of actual mortality rate to expected mortality rate by risk coverage and elapsed period based on the last five years' experience statistics
Operating expense ratio		-		-		- Calculate unit costs such as performance, agent commissions, number of new/retained contracts, initial/continuing premiums, reserve funds, etc. based on a business plan (budget) incorporating future expense policies based on recent experience statistics
Discount rate		2.79% ~ 4.59%		2.31% ~ 4.55%		- Disclosure standard interest rate term structure provided by the Financial Supervisory Service
The confidence level for the risk adjustments regarding non-financial risk		75%		75%		- The risk adjustment is calculated as the portion of 75th percentile exceeding the probability-weighted average of the present value of future cash flows, assuming that the probability distribution of the present value of future cash flows follows a normal distribution at each reporting date.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below:

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Non-Par
Participating life
Expected claim (A) W		11,648		11,712		11,728		11,723		11,693		11,633		11,546		11,421		11,256		11,040		50,785		41,996		33,709		26,849		53,892		187,936
Risk Premium (B)		32,757		33,568		34,351		35,089		35,750		36,351		36,879		37,304		37,609		37,793		188,152		178,947		160,757		134,205		231,427		686,650
Loss ratio (A/B)		35.56%		34.89%		34.14%		33.41%		32.71%		32.00%		31.31%		30.62%		29.93%		29.21%		26.99%		23.47%		20.97%		20.01%		23.29%		27.37%
Non-participating life
Expected claim (A) W		493,789		499,149		502,700		506,152		507,814		507,318		506,508		505,064		505,101		503,796		2,488,659		2,367,449		2,107,041		1,726,616		6,264,192		9,723,857
Risk Premium (B)		572,930		572,032		567,986		569,379		568,209		569,984		575,634		580,151		587,183		592,430		3,022,601		3,062,465		2,987,067		2,754,610		11,852,823		12,868,423
Loss ratio (A/B)		86.19%		87.26%		88.51%		88.90%		89.37%		89.01%		87.99%		87.06%		86.02%		85.04%		82.34%		77.31%		70.54%		62.68%		52.85%		75.56%
Participating health
Expected claim (A) W		2,017		1,981		1,785		1,691		1,624		1,546		1,459		1,375		1,302		1,218		4,916		3,246		2,086		1,372		4,257		20,743
Risk Premium (B)		2,868		2,857		2,638		2,549		2,489		2,414		2,320		2,232		2,154		2,060		8,828		6,515		4,698		3,371		7,844		34,945
Loss ratio (A/B)		70.33%		69.34%		67.66%		66.34%		65.24%		64.06%		62.88%		61.62%		60.45%		59.12%		55.68%		49.83%		44.41%		40.71%		54.28%		59.36%
Non-participating health
Expected claim (A) W		765,312		744,833		721,778		707,643		701,354		691,310		682,296		679,945		682,760		686,335		3,527,142		3,712,303		3,701,653		3,603,023		16,702,778		16,158,101
Risk Premium (B)		756,658		743,657		718,165		702,482		692,890		683,450		673,566		675,925		675,399		676,499		3,439,614		3,443,963		3,372,264		3,242,106		14,695,580		15,311,939
Loss ratio (A/B)		101.14%		100.16%		100.50%		100.73%		101.22%		101.15%		101.30%		100.59%		101.09%		101.45%		102.54%		107.79%		109.77%		111.13%		113.66%		105.53%
Participating annuity & savings
Expected claim (A) W		840		731		628		541		466		413		381		358		339		334		1,819		2,500		3,623		4,961		30,464		16,541
Risk Premium (B)		2,350		2,134		1,921		1,742		1,588		1,474		1,428		1,410		1,406		1,438		8,313		11,283		15,118		19,043		76,899		56,663
Loss ratio (A/B)		35.73%		34.24%		32.69%		31.08%		29.35%		28.04%		26.67%		25.40%		24.09%		23.24%		21.88%		22.15%		23.97%		26.05%		39.62%		29.19%
Non-participating annuity & savings
Expected claim (A) W		169		152		87		58		20		13		13		12		11		10		48		46		48		53		194		640
Risk Premium (B)		364		297		164		111		60		50		49		48		46		46		223		208		191		169		455		1,623
Loss ratio (A/B)		46.49%		51.24%		52.90%		52.27%		32.74%		26.71%		25.57%		24.12%		23.34%		22.61%		21.43%		22.00%		25.35%		31.26%		42.68%		39.43%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Indirect-Par
Non-participating life
Expected claim (A) W		137,679		138,980		139,905		141,197		140,579		140,663		141,528		140,624		140,168		140,043		695,006		680,035		653,572		605,557		2,327,859		2,927,369
Risk Premium (B)		133,166		134,460		134,716		135,290		136,967		139,152		141,210		143,518		146,018		147,602		774,557		808,518		813,594		769,494		2,840,238		3,273,610
Loss ratio (A/B)		103.39%		103.36%		103.85%		104.37%		102.64%		101.09%		100.22%		97.98%		95.99%		94.88%		89.73%		84.11%		80.33%		78.70%		81.96%		89.42%
Variable life
Expected claim (A) W		57,354		56,517		55,523		54,865		54,211		53,873		53,386		52,751		52,757		52,875		265,396		271,126		276,720		269,946		918,408		1,176,457
Risk Premium (B)		65,216		64,661		63,631		63,166		63,273		63,665		64,017		64,518		65,349		66,220		346,778		376,553		397,115		381,683		906,076		1,469,065
Loss ratio (A/B)		87.94%		87.41%		87.26%		86.86%		85.68%		84.62%		83.39%		81.76%		80.73%		79.85%		76.53%		72.00%		69.68%		70.73%		101.36%		80.08%
Participating annuity & savings
Expected claim (A) W		425		395		373		352		332		311		290		271		257		242		1,002		657		352		180		368		4,042
Risk Premium (B)		1,045		924		849		764		678		598		529		465		418		378		1,400		955		594		359		689		7,709
Loss ratio (A/B)		40.70%		42.79%		43.92%		46.07%		48.90%		52.03%		54.94%		58.34%		61.44%		63.89%		71.62%		68.84%		59.22%		50.30%		53.36%		52.44%
Non-participating annuity & savings
Expected claim (A) W		5,782		5,541		5,238		5,021		4,831		4,538		4,281		3,964		3,784		3,596		15,225		11,196		7,710		4,315		3,116		60,717
Risk Premium (B)		7,930		7,437		6,957		6,559		6,215		5,890		5,501		5,064		4,800		4,562		19,251		13,943		9,883		6,014		5,663		79,453
Loss ratio (A/B)		72.92%		74.50%		75.29%		76.56%		77.73%		77.04%		77.82%		78.28%		78.83%		78.83%		79.08%		80.30%		78.02%		71.76%		55.03%		76.42%
Asset-linked annuity & savings
Expected claim (A) W		889		854		820		779		737		699		662		612		566		530		2,174		1,476		941		514		331		8,900
Risk Premium (B)		1,043		997		957		903		855		817		771		694		643		599		2,477		1,680		1,071		588		381		10,296
Loss ratio (A/B)		85.21%		85.63%		85.69%		86.28%		86.14%		85.58%		85.91%		88.19%		88.07%		88.46%		87.78%		87.88%		87.86%		87.32%		86.91%		86.45%
Direct-Par
Variable annuity & savings
Expected claim (A) W		7,977		7,266		6,652		6,147		5,686		5,247		4,824		4,384		3,953		3,582		13,568		8,007		4,423		2,224		3,083		63,975
Risk Premium (B)		8,725		8,002		7,323		6,760		6,243		5,752		5,267		4,826		4,426		4,066		15,830		10,440		7,030		4,762		11,261		75,527
Loss ratio (A/B)		91.42%		90.81%		90.83%		90.93%		91.07%		91.23%		91.60%		90.84%		89.32%		88.08%		85.71%		76.70%		62.92%		46.69%		27.38%		84.71%
Total
Expected claim (A) W		1,483,881		1,468,112		1,447,217		1,436,170		1,429,347		1,417,565		1,407,174		1,400,781		1,402,253		1,403,600		7,065,742		7,100,039		6,791,879		6,245,612		26,308,942		30,349,280
Risk Premium (B)		1,585,053		1,571,025		1,539,658		1,524,792		1,515,218		1,509,597		1,507,172		1,516,155		1,525,450		1,533,692		7,828,024		7,915,469		7,769,383		7,316,405		30,629,334		33,875,902
Loss ratio (A/B)		93.62%		93.45%		94.00%		94.19%		94.33%		93.90%		93.37%		92.39%		91.92%		91.52%		90.26%		89.70%		87.42%		85.36%		85.89%		89.59%

(*1) Prepared for remaining coverage of underlying insurance contracts.

(*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Non-Par
Participating life
Expected claim (A) W		11,728		11,909		12,079		12,236		12,374		12,481		12,563		12,619		12,629		12,591		60,612		53,866		46,237		40,605		96,060		236,748
Risk Premium (B)		32,295		33,397		34,598		35,778		36,938		38,039		39,111		40,124		41,027		41,820		216,897		219,831		210,573		187,071		372,699		852,625
Loss ratio (A/B)		36.31%		35.66%		34.91%		34.20%		33.50%		32.81%		32.12%		31.45%		30.78%		30.11%		27.95%		24.50%		21.96%		21.71%		25.77%		27.77%
Non-participating life
Expected claim (A) W		481,738		481,227		483,311		483,429		483,296		484,440		485,622		486,076		486,792		487,400		2,439,243		2,353,694		2,140,987		1,773,932		5,446,566		9,892,855
Risk Premium (B)		553,429		557,185		557,104		555,763		560,146		562,067		566,604		574,630		581,337		589,885		3,048,605		3,152,033		3,129,258		2,889,024		9,718,037		13,360,811
Loss ratio (A/B)		87.05%		86.37%		86.75%		86.98%		86.28%		86.19%		85.71%		84.59%		83.74%		82.63%		80.01%		74.67%		68.42%		61.40%		56.05%		74.04%
Participating health
Expected claim (A) W		2,208		2,083		2,043		1,843		1,746		1,677		1,597		1,508		1,423		1,348		5,485		3,667		2,350		1,510		4,482		23,521
Risk Premium (B)		3,013		2,881		2,867		2,651		2,557		2,495		2,419		2,326		2,237		2,158		9,333		6,933		4,992		3,532		8,108		37,914
Loss ratio (A/B)		73.29%		72.29%		71.25%		69.53%		68.27%		67.20%		66.03%		64.84%		63.61%		62.46%		58.77%		52.89%		47.08%		42.76%		55.28%		62.04%
Non-participating health
Expected claim (A) W		631,453		616,108		599,988		592,367		589,999		590,001		586,123		584,930		590,297		597,004		3,059,846		3,202,230		3,196,124		3,105,639		14,873,727		14,556,485
Risk Premium (B)		652,227		634,482		614,584		599,689		591,661		586,516		579,600		576,028		581,959		580,852		2,945,773		2,992,861		3,063,436		2,952,901		12,889,375		13,989,143
Loss ratio (A/B)		96.81%		97.10%		97.63%		98.78%		99.72%		100.59%		101.13%		101.55%		101.43%		102.78%		103.87%		107.00%		104.33%		105.17%		115.40%		104.06%
Participating annuity & savings
Expected claim (A) W		963		835		721		614		521		441		384		348		322		299		1,539		2,082		3,079		4,450		31,390		16,897
Risk Premium (B)		2,567		2,346		2,137		1,926		1,746		1,586		1,466		1,414		1,392		1,384		7,731		10,375		13,936		17,699		77,819		58,410
Loss ratio (A/B)		37.53%		35.60%		33.73%		31.85%		29.86%		27.79%		26.18%		24.59%		23.15%		21.64%		19.90%		20.06%		22.10%		25.14%		40.34%		28.93%
Non-participating annuity & savings
Expected claim (A) W		138		139		108		60		46		15		14		13		12		12		54		53		59		67		278		694
Risk Premium (B)		291		270		197		100		90		53		51		51		50		48		240		232		223		207		635		1,716
Loss ratio (A/B)		47.46%		51.43%		54.71%		59.60%		50.87%		28.29%		27.28%		26.19%		24.81%		24.06%		22.63%		22.89%		26.29%		32.62%		43.79%		40.43%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Indirect-Par
Non-participating life
Expected claim (A) W		133,459		136,517		137,827		138,106		139,295		138,998		139,584		141,183		140,611		140,429		704,374		689,595		657,398		606,310		2,232,023		3,043,396
Risk Premium (B)		129,015		129,635		130,579		131,034		132,275		133,205		134,789		137,133		138,508		140,416		732,659		774,047		793,446		768,261		2,746,956		3,322,462
Loss ratio (A/B)		103.44%		105.31%		105.55%		105.40%		105.31%		104.35%		103.56%		102.95%		101.52%		100.01%		96.14%		89.09%		82.85%		78.92%		81.25%		91.60%
Variable life
Expected claim (A) W		57,236		56,123		55,291		54,464		54,002		53,584		53,407		53,179		52,880		53,255		273,842		291,303		309,503		315,823		1,279,070		1,350,287
Risk Premium (B)		65,830		65,290		64,717		63,994		63,760		63,882		64,406		65,042		65,765		67,008		354,677		384,462		391,274		350,069		772,704		1,507,775
Loss ratio (A/B)		86.95%		85.96%		85.44%		85.11%		84.70%		83.88%		82.92%		81.76%		80.41%		79.48%		77.21%		75.77%		79.10%		90.22%		165.53%		89.55%
Participating annuity & savings
Expected claim (A) W		432		404		384		363		343		325		306		286		267		252		1,058		721		391		186		359		4,355
Risk Premium (B)		1,067		945		871		793		707		626		558		493		432		384		1,387		880		504		237		387		7,890
Loss ratio (A/B)		40.52%		42.80%		44.08%		45.75%		48.59%		51.96%		54.86%		57.94%		61.78%		65.69%		76.28%		81.91%		77.61%		78.55%		92.87%		55.20%
Non-participating annuity & savings
Expected claim (A) W		5,986		5,618		5,365		5,061		4,813		4,604		4,384		4,128		3,815		3,635		15,490		11,425		8,029		4,743		3,736		64,293
Risk Premium (B)		8,324		7,766		7,306		6,832		6,430		6,081		5,762		5,386		4,964		4,699		19,904		14,346		10,232		6,384		6,107		85,471
Loss ratio (A/B)		71.91%		72.34%		73.43%		74.08%		74.85%		75.71%		76.08%		76.64%		76.85%		77.37%		77.82%		79.64%		78.47%		74.30%		61.18%		75.22%
Asset-linked annuity & savings
Expected claim (A) W		886		841		804		769		727		682		642		601		546		497		1,962		1,231		732		377		234		8,600
Risk Premium (B)		1,106		1,048		1,002		956		898		844		794		741		654		593		2,339		1,456		861		444		271		10,531
Loss ratio (A/B)		80.09%		80.22%		80.27%		80.42%		80.90%		80.82%		80.82%		81.22%		83.43%		83.67%		83.88%		84.53%		84.98%		85.05%		86.34%		81.66%
Direct-Par
Variable annuity & savings
Expected claim (A) W		8,045		7,272		6,557		5,945		5,438		4,988		4,560		4,162		3,755		3,351		12,496		7,352		4,077		2,033		2,416		62,919
Risk Premium (B)		9,324		8,484		7,700		6,991		6,379		5,829		5,306		4,800		4,346		3,944		15,041		9,480		6,044		3,795		8,260		76,773
Loss ratio (A/B)		86.29%		85.72%		85.15%		85.05%		85.25%		85.56%		85.94%		86.70%		86.40%		84.98%		83.08%		77.55%		67.45%		53.56%		29.26%		81.95%
Total
Expected claim (A) W		1,334,272		1,319,076		1,304,478		1,295,257		1,292,600		1,292,236		1,289,186		1,289,033		1,293,349		1,300,073		6,576,001		6,617,219		6,368,966		5,855,675		23,970,341		29,261,050
Risk Premium (B)		1,458,488		1,443,729		1,423,662		1,406,507		1,403,587		1,401,223		1,400,866		1,408,168		1,422,671		1,433,191		7,354,586		7,566,936		7,624,779		7,179,624		26,601,358		33,311,521
Loss ratio (A/B)		91.48%		91.37%		91.63%		92.09%		92.09%		92.22%		92.03%		91.54%		90.91%		90.71%		89.41%		87.45%		83.53%		81.56%		90.11%		87.84%

(*1) Prepared for remaining coverage of underlying insurance contracts.

(*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

Ratio of expected claims to actual claims for the years ended December 31, 2025 and 2024 is as follows:

		2025		2024
Expected loss ratio (A)		93.12%		93.11%
Actual loss ratio (B)		99.39%		96.26%
Ratio of expected claims to actual claims (C=A-B) (%p)		(6.27)%		(3.15)%

(*1) Prepared for the underlying insurance contracts

(*2) Expected loss ratio (A) = expected claims for the year divided by actual risk premiums for the year

(*3) Actual loss ratio (B) = the sum of incurred claims for the year and incurred claims adjustments for the year, which is then divided by actual risk premium

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Non-Par
Participating life
Expected maintenance expense, etc. (A)		W 2,565		2,550		2,091		2,073		2,054		2,035		2,016		1,995		1,972		1,949		9,352		8,681		8,028		7,285		17,093		38,705
Planned maintenance cost (B)		3,021		2,659		2,352		2,088		1,869		1,686		1,536		1,410		1,302		1,213		5,055		3,814		2,823		2,003		2,781		24,416
Ratio (A/B)		84.92%		95.92%		88.88%		99.29%		109.94%		120.75%		131.20%		141.45%		151.43%		160.64%		185.00%		227.61%		284.38%		363.75%		614.68%		158.52%
Non-participating life
Expected maintenance expense, etc. (A)		W 107,357		106,785		90,677		87,629		84,541		80,409		78,019		76,390		75,133		73,816		358,265		343,714		324,008		301,263		1,243,491		1,633,663
Planned maintenance cost (B)		286,195		257,592		239,733		239,453		230,100		223,832		196,990		178,895		173,064		171,681		723,817		567,415		470,063		358,191		862,562		3,149,917
Ratio (A/B)		37.51%		41.45%		37.82%		36.60%		36.74%		35.92%		39.61%		42.70%		43.41%		43.00%		49.50%		60.58%		68.93%		84.11%		144.16%		51.86%
Participating health
Expected maintenance expense, etc. (A)		W 239		233		198		191		186		182		177		173		169		166		781		710		640		562		1,280		3,277
Planned maintenance cost (B)		89		84		74		68		64		60		56		53		50		46		194		143		105		76		125		853
Ratio (A/B)		268.31%		278.40%		269.51%		280.52%		291.91%		303.71%		315.64%		328.99%		342.01%		357.22%		402.13%		495.24%		607.05%		740.74%		1022.52%		384.35%
Non-participating health
Expected maintenance expense, etc. (A)		W 136,029		126,785		114,291		109,154		105,137		101,488		98,108		95,905		94,249		92,655		443,967		405,875		372,022		339,644		1,428,292		1,962,821
Planned maintenance cost (B)		504,766		445,973		398,714		365,976		341,360		321,819		304,410		290,828		279,232		270,295		1,256,777		961,778		764,885		688,935		2,092,653		5,331,756
Ratio (A/B)		26.95%		28.43%		28.67%		29.83%		30.80%		31.54%		32.23%		32.98%		33.75%		34.28%		35.33%		42.20%		48.64%		49.30%		68.25%		36.81%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,127		1,120		821		814		807		799		792		785		778		770		3,731		3,524		3,295		3,009		8,015		15,899
Planned maintenance cost (B)		34		30		27		24		22		21		21		20		20		20		96		91		85		75		160		416
Ratio (A/B)		3323.19%		3774.85%		3087.74%		3353.30%		3597.87%		3767.94%		3820.86%		3868.53%		3893.30%		3905.21%		3880.48%		3852.79%		3885.16%		4003.07%		4994.90%		3824.50%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,684		1,300		437		201		33		7		7		7		6		6		28		24		21		18		44		3,598
Planned maintenance cost (B)		3,092		2,336		1,146		504		76		12		12		11		10		10		42		32		25		18		33		6,971
Ratio (A/B)		54.47%		55.66%		38.10%		39.92%		43.04%		57.50%		58.58%		59.55%		60.47%		61.73%		65.85%		73.52%		84.16%		98.00%		136.29%		51.61%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Indirect-Par
Non-participating life
Expected maintenance expense, etc. (A)		W 24,675		24,154		20,437		19,950		19,508		19,177		18,943		18,628		18,307		17,947		86,073		80,599		74,626		67,634		243,939		374,273
Planned maintenance cost (B)		74,076		66,309		59,547		52,995		47,349		42,912		39,514		36,293		33,062		29,335		122,730		96,262		76,997		60,831		148,282		632,912
Ratio (A/B)		33.31%		36.43%		34.32%		37.65%		41.20%		44.69%		47.94%		51.33%		55.37%		61.18%		70.13%		83.73%		96.92%		111.18%		164.51%		59.14%
Variable life
Expected maintenance expense, etc. (A)		W 13,693		13,313		12,628		12,311		12,052		11,802		11,563		11,353		11,165		10,976		52,262		47,565		41,668		34,918		103,821		210,787
Planned maintenance cost (B)		39,971		35,932		32,012		28,653		25,799		23,238		20,918		19,229		17,891		16,589		68,630		55,300		46,485		36,797		70,953		346,911
Ratio (A/B)		34.26%		37.05%		39.45%		42.97%		46.72%		50.79%		55.28%		59.04%		62.41%		66.16%		76.15%		86.01%		89.64%		94.89%		146.32%		60.76%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 4,121		3,925		2,760		2,647		2,538		2,429		2,327		2,235		2,145		2,060		9,296		7,998		7,091		6,456		25,081		43,994
Planned maintenance cost (B)		2,734		2,311		2,044		1,838		1,660		1,484		1,356		1,249		1,161		1,086		4,495		3,425		2,775		2,368		5,761		22,706
Ratio (A/B)		150.72%		169.87%		135.04%		144.00%		152.91%		163.69%		171.65%		178.92%		184.76%		189.66%		206.82%		233.52%		255.51%		272.63%		435.40%		193.76%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 23,389		21,331		14,610		13,568		12,594		11,675		10,907		10,247		9,712		9,139		39,178		30,983		24,838		20,057		60,950		190,804
Planned maintenance cost (B)		22,545		19,350		17,028		14,975		13,244		11,733		10,494		9,446		8,634		7,616		28,464		18,924		12,756		8,810		18,779		158,304
Ratio (A/B)		103.74%		110.24%		85.80%		90.61%		95.09%		99.50%		103.93%		108.48%		112.48%		120.00%		137.64%		163.72%		194.72%		227.67%		324.57%		120.53%
Asset-linked annuity & savings
Expected maintenance expense, etc. (A)		W 2,126		1,965		1,361		1,268		1,187		1,117		1,041		917		856		805		3,390		2,575		2,104		1,832		7,350		17,519
Planned maintenance cost (B)		2,072		1,859		1,677		1,529		1,394		1,279		1,146		895		803		732		2,768		1,629		961		585		928		15,072
Ratio (A/B)		102.63%		105.67%		81.17%		82.96%		85.13%		87.31%		90.77%		102.52%		106.71%		109.91%		122.50%		158.10%		218.80%		313.11%		791.76%		116.24%
Direct-Par
Variable annuity & savings
Expected maintenance expense, etc. (A)		W 17,662		15,523		13,562		11,964		10,637		9,438		8,374		7,484		6,676		5,945		21,894		14,076		9,960		7,717		26,010		127,057
Planned maintenance cost (B)		12,836		10,644		8,832		7,467		6,205		5,521		4,761		4,158		3,607		3,113		10,963		6,261		3,680		2,219		3,982		72,601
Ratio (A/B)		137.60%		145.84%		153.56%		160.22%		171.44%		170.94%		175.86%		179.98%		185.07%		191.00%		199.70%		224.80%		270.67%		347.72%		653.21%		175.01%
Total

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

Expected maintenance expense, etc. (A)		W 334,668		318,984		273,873		261,770		251,273		240,558		232,274		226,117		221,169		216,232		1,028,215		946,323		868,299		790,395		3,165,366		4,622,399
Planned maintenance cost (B)		951,431		845,078		763,185		715,570		669,140		633,597		581,215		542,488		518,835		501,736		2,224,031		1,715,076		1,381,640		1,160,908		3,206,999		9,762,835
Ratio (A/B)		35.18%		37.75%		35.89%		36.58%		37.55%		37.97%		39.96%		41.68%		42.63%		43.10%		46.23%		55.18%		62.85%		68.08%		98.70%		47.35%

(*1) Prepared for remaining coverage of underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Non-Par
Participating life
Expected maintenance expense, etc. (A)		W 2,593		2,598		2,606		2,182		2,185		2,187		2,188		2,189		2,188		2,185		10,830		10,577		10,276		9,814		26,170		48,164
Planned maintenance cost (B)		3,194		2,834		2,545		2,302		2,093		1,921		1,778		1,662		1,563		1,479		6,479		5,310		4,251		3,230		5,098		30,590
Ratio (A/B)		81.18%		91.67%		102.41%		94.81%		104.39%		113.81%		123.08%		131.72%		139.95%		147.72%		167.17%		199.19%		241.73%		303.87%		513.34%		157.45%
Non-participating life
Expected maintenance expense, etc. (A)		W 99,157		96,733		95,975		82,243		78,920		76,529		73,761		71,871		70,897		69,843		338,515		325,125		310,542		289,371		1,159,671		1,614,589
Planned maintenance cost (B)		271,301		238,751		215,722		201,990		203,765		196,666		198,271		176,980		163,690		159,454		715,798		551,427		439,766		331,316		741,999		3,048,121
Ratio (A/B)		36.55%		40.52%		44.49%		40.72%		38.73%		38.91%		37.20%		40.61%		43.31%		43.80%		47.29%		58.96%		70.62%		87.34%		156.29%		52.97%
Participating health
Expected maintenance expense, etc. (A)		W 265		247		241		207		199		194		189		185		181		177		831		753		677		595		1,388		3,677
Planned maintenance cost (B)		96		86		81		72		67		63		59		56		52		49		205		151		111		80		134		933
Ratio (A/B)		275.61%		288.23%		298.24%		285.49%		296.06%		307.66%		319.93%		332.36%		346.16%		359.69%		404.94%		497.28%		609.87%		744.23%		1036.50%		393.93%
Non-participating health
Expected maintenance expense, etc. (A)		W 121,376		111,917		106,043		97,038		93,782		91,061		88,563		86,451		85,174		83,973		401,743		364,965		333,265		305,561		1,312,992		1,842,037
Planned maintenance cost (B)		399,615		349,687		319,093		296,060		278,516		263,746		252,101		242,282		234,304		226,055		1,058,447		839,913		668,266		621,372		1,957,464		4,642,032
Ratio (A/B)		30.37%		32.00%		33.23%		32.78%		33.67%		34.53%		35.13%		35.68%		36.35%		37.15%		37.96%		43.45%		49.87%		49.18%		67.08%		39.68%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,145		1,142		1,138		846		840		833		826		819		812		804		3,910		3,732		3,534		3,342		9,996		18,043
Planned maintenance cost (B)		35		31		28		25		23		22		21		20		20		20		97		93		86		77		175		445
Ratio (A/B)		3263.18%		3724.31%		4120.05%		3352.51%		3592.39%		3801.60%		3948.35%		3996.30%		4032.35%		4045.47%		4036.45%		4031.54%		4087.66%		4315.82%		5713.03%		4055.11%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,353		1,142		766		219		140		8		8		7		7		7		32		28		25		23		63		3,554
Planned maintenance cost (B)		2,393		2,026		1,319		546		339		13		13		12		11		11		47		38		30		23		47		6,434
Ratio (A/B)		56.55%		56.38%		58.05%		40.18%		41.17%		59.73%		60.46%		61.59%		62.57%		63.42%		67.42%		74.82%		84.70%		97.84%		134.51%		55.23%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Indirect-Par
Non-participating life
Expected maintenance expense, etc. (A)		W 25,346		24,541		24,096		20,840		20,395		19,995		19,687		19,462		19,149		18,834		90,199		84,615		78,046		70,328		246,430		407,740
Planned maintenance cost (B)		80,239		71,207		64,144		57,983		51,739		46,606		42,400		39,049		35,912		32,652		130,440		101,201		82,707		64,577		153,649		701,416
Ratio (A/B)		31.59%		34.46%		37.57%		35.94%		39.42%		42.90%		46.43%		49.84%		53.32%		57.68%		69.15%		83.61%		94.36%		108.91%		160.38%		58.13%
Variable life
Expected maintenance expense, etc. (A)		W 13,875		13,382		13,034		12,378		12,082		11,788		11,562		11,313		11,056		10,818		51,014		45,874		39,943		33,625		95,028		217,429
Planned maintenance cost (B)		44,300		39,482		35,469		31,577		28,246		25,431		22,924		20,587		18,911		17,587		71,868		56,508		47,752		38,394		72,450		384,945
Ratio (A/B)		31.32%		33.89%		36.75%		39.20%		42.77%		46.35%		50.43%		54.95%		58.46%		61.51%		70.98%		81.18%		83.65%		87.58%		131.16%		56.48%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 4,334		4,150		3,974		2,861		2,755		2,656		2,563		2,468		2,379		2,291		10,423		9,069		8,087		7,375		30,404		51,652
Planned maintenance cost (B)		2,534		2,236		1,991		1,794		1,641		1,507		1,385		1,290		1,209		1,143		4,834		3,716		2,985		2,521		6,299		23,869
Ratio (A/B)		171.04%		185.66%		199.64%		159.45%		167.94%		176.26%		185.05%		191.38%		196.70%		200.36%		215.61%		244.07%		270.91%		292.55%		482.69%		216.40%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 25,335		22,122		20,079		13,946		12,871		11,873		11,017		10,275		9,611		9,037		38,317		29,296		22,984		18,327		55,768		201,300
Planned maintenance cost (B)		25,101		19,434		16,474		14,370		12,462		10,907		9,659		8,593		7,666		6,931		26,339		16,897		11,261		7,652		14,682		155,530
Ratio (A/B)		100.93%		113.83%		121.88%		97.05%		103.28%		108.86%		114.06%		119.57%		125.37%		130.40%		145.48%		173.38%		204.10%		239.51%		379.84%		129.43%
Asset-linked annuity & savings
Expected maintenance expense, etc. (A)		W 2,256		2,087		1,940		1,374		1,279		1,194		1,121		1,039		906		839		3,464		2,555		2,047		1,770		7,074		19,240
Planned maintenance cost (B)		2,153		1,934		1,747		1,575		1,428		1,303		1,191		1,056		797		703		2,599		1,458		829		505		899		15,573
Ratio (A/B)		104.83%		107.93%		111.07%		87.26%		89.56%		91.57%		94.06%		98.41%		113.70%		119.41%		133.25%		175.28%		246.87%		350.37%		786.83%		123.54%
Direct-Par
Variable annuity & savings
Expected maintenance expense, etc. (A)		W 18,234		16,000		13,939		12,099		10,637		9,346		8,231		7,205		6,339		5,565		19,901		12,206		8,447		6,508		21,896		126,478
Planned maintenance cost (B)		12,141		10,221		8,362		6,955		5,901		4,846		4,327		3,692		3,193		2,734		9,385		5,153		2,974		1,776		3,217		67,648
Ratio (A/B)		150.19%		156.54%		166.70%		173.96%		180.28%		192.85%		190.24%		195.18%		198.51%		203.55%		212.04%		236.89%		284.09%		366.42%		680.72%		186.96%
Total
Expected maintenance expense, etc. (A)		W 315,269		296,061		283,831		246,233		236,085		227,664		219,716		213,284		208,699		204,373		969,179		888,795		817,873		746,639		2,966,880		4,553,903

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

Planned maintenance cost (B)		843,102		737,929		666,975		615,249		586,220		553,031		534,129		495,279		467,328		448,818		2,026,538		1,581,865		1,261,018		1,071,523		2,956,113		9,077,536
Ratio (A/B)		37.39%		40.12%		42.56%		40.02%		40.27%		41.17%		41.14%		43.06%		44.66%		45.54%		47.82%		56.19%		64.86%		69.68%		100.36%		50.17%

(*1) Prepared for remaining coverage of underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied:

i) Participating insurance contracts

		2025
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	5,011,424		86,389		220,887		5,318,700
Insurance revenue:
Contracts under the modified retrospective approach		(92)		-		-		(92)
Contracts under the fair value approach		(51,571)		-		-		(51,571)
Contracts after transition		(250)		-		-		(250)
		(51,913)		-		-		(51,913)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		33,715		33,715
Adjustments to liabilities for incurred claims		-		-		(651)		(651)
Losses and reversals of losses on onerous contracts		-		(19,629)		-		(19,629)
Amortization of insurance acquisition cash flows		170		-		-		170
Experience adjustments to insurance acquisition cash flows that are not related to future service		182		-		-		182
Others		-		(359)		-		(359)
		352		(19,988)		33,064		13,428
Investment components and premium refunds		(194,236)		-		194,236		-
Insurance finance income or expenses recognized in:
Profit or loss		158,904		2,507		12,080		173,491
Other comprehensive income		(172,593)		(2,103)		(49)		(174,745)
		(13,689)		404		12,031		(1,254)
Cash flows:
Premiums received		52,142		-		-		52,142
Insurance acquisition cash flows		(1,266)		-		-		(1,266)
Claims and other insurance service expenses paid		(211)		-		(31,587)		(31,798)
Investment components received (paid) and premium refunds		-		-		(208,048)		(208,048)
		50,665		-		(239,635)		(188,970)
Other changes		(58)		(4)		-		(62)
Closing balance:
Insurance contract liabilities	W	4,802,545		66,801		220,583		5,089,929

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

i) Participating insurance contracts (continued)

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	4,662,767		20,454		226,380		4,909,601
Insurance revenue:
Contracts under the modified retrospective approach		(91)		-		-		(91)
Contracts under the fair value approach		(48,424)		-		-		(48,424)
Contracts after transition		755		-		-		755
		(47,760)		-		-		(47,760)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		31,736		31,736
Adjustments to liabilities for incurred claims		-		-		(1,285)		(1,285)
Losses and reversals of losses on onerous contracts		-		64,528		-		64,528
Amortization of insurance acquisition cash flows		120		-		-		120
Experience adjustments to insurance acquisition cash flows that are not related to future service		17		-		-		17
Others		2		(50)		-		(48)
		139		64,478		30,451		95,068
Investment components and premium refunds		(184,709)		-		184,709		-
Insurance finance income or expenses recognized in:
Profit or loss		151,824		549		11,108		163,481
Other comprehensive income		372,888		912		196		373,996
		524,712		1,461		11,304		537,477
Cash flows:
Premiums received		57,374		-		-		57,374
Insurance acquisition cash flows		(925)		-		-		(925)
Claims and other insurance service expenses paid		(178)		-		(29,542)		(29,720)
Investment components received (paid) and premium refunds		-		-		(202,415)		(202,415)
		56,271		-		(231,957)		(175,686)
Other changes		4		(4)		-		-
Closing balance:
Insurance contract liabilities	W	5,011,424		86,389		220,887		5,318,700

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts

		2025
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	36,228,859		369,956		1,532,200		38,131,015
Insurance revenue:
Contracts under the modified retrospective approach		(380,467)		-		-		(380,467)
Contracts under the fair value approach		(1,459,586)		-		-		(1,459,586)
Contracts after transition		(1,039,392)		-		-		(1,039,392)
		(2,879,445)		-		-		(2,879,445)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,737,398		1,737,398
Adjustments to liabilities for incurred claims		-		-		(22,548)		(22,548)
Losses and reversals of losses on onerous contracts		-		79,752		-		79,752
Amortization of insurance acquisition cash flows		398,691		-		-		398,691
Experience adjustments to insurance acquisition cash flows that are not related to future service		(11,169)		-		-		(11,169)
Others		95		(15,700)		-		(15,605)
		387,617		64,052		1,714,850		2,166,519
Investment components and premium refunds		(3,497,613)		-		3,497,613		-
Insurance finance income or expenses recognized in:
Profit or loss		1,290,833		1,980		48,207		1,341,020
Other comprehensive income		(1,633,246)		(766)		563		(1,633,449)
		(342,413)		1,214		48,770		(292,429)
Cash flows:
Premiums received		7,202,121		-		-		7,202,121
Insurance acquisition cash flows		(2,039,887)		-		-		(2,039,887)
Claims and other insurance service expenses paid		(5,967)		-		(1,653,490)		(1,659,457)
Investment components received (paid) and premium refunds		-		-		(3,620,894)		(3,620,894)
		5,156,267		-		(5,274,384)		(118,117)
Other changes		100		(169)		(3)		(72)
Closing balance:
Insurance contract liabilities	W	35,053,372		435,053		1,519,046		37,007,471

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts (continued)

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	33,486,670		370,350		1,541,737		35,398,757
Insurance revenue:
Contracts under the modified retrospective approach		(442,542)		-		-		(442,542)
Contracts under the fair value approach		(1,490,048)		-		-		(1,490,048)
Contracts after transition		(720,251)		1,501		18		(718,732)
		(2,652,841)		1,501		18		(2,651,322)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,531,737		1,531,737
Adjustments to liabilities for incurred claims		-		-		27,227		27,227
Losses and reversals of losses on onerous contracts		-		10,328		-		10,328
Amortization of insurance acquisition cash flows		335,510		-		-		335,510
Experience adjustments to insurance acquisition cash flows that are not related to future service		(29,148)		-		-		(29,148)
Others		(1,113)		(17,564)		-		(18,677)
		305,249		(7,236)		1,558,964		1,856,977
Investment components and premium refunds		(3,665,843)		-		3,665,843		-
Insurance finance income or expenses recognized in:
Profit or loss		1,316,060		1,292		52,021		1,369,373
Other comprehensive income		2,765,883		4,050		2,965		2,772,898
		4,081,943		5,342		54,986		4,142,271
Cash flows:
Premiums received		6,247,295		-		-		6,247,295
Insurance acquisition cash flows		(1,567,085)		-		-		(1,567,085)
Claims and other insurance service expenses paid		(6,530)		-		(1,473,695)		(1,480,225)
Investment components received (paid) and premium refunds		-		-		(3,815,652)		(3,815,652)
		4,673,680		-		(5,289,347)		(615,667)
Other changes		1		(1)		-		-
Closing balance:
Insurance contract liabilities	W	36,228,859		369,956		1,532,201		38,131,016

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts

		2025
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	4,862,460		46,566		61,828		4,970,854
Insurance revenue:
Contracts under the modified retrospective approach		(22,103)		-		-		(22,103)
Contracts under the fair value approach		(113,995)		-		-		(113,995)
Contracts after transition		(12,316)		-		-		(12,316)
		(148,414)		-		-		(148,414)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		96,201		96,201
Adjustments to liabilities for incurred claims		-		-		(4,570)		(4,570)
Losses and reversals of losses on onerous contracts		-		6,286		-		6,286
Amortization of insurance acquisition cash flows		18,318		-		-		18,318
Experience adjustments to insurance acquisition cash flows that are not related to future service		1,529		-		-		1,529
Others		-		(148)		-		(148)
		19,847		6,138		91,631		117,616
Investment components and premium refunds		(865,625)		-		865,625		-
Insurance finance income or expenses recognized in:
Profit or loss		1,268,980		898		1,711		1,271,589
Other comprehensive income		39,072		13		(1)		39,084
		1,308,052		911		1,710		1,310,673
Cash flows:
Premiums received		540,714		-		-		540,714
Insurance acquisition cash flows		(19,172)		-		-		(19,172)
Claims and other insurance service expenses paid		-		-		(93,228)		(93,228)
Investment components received (paid) and premium refunds		-		-		(864,661)		(864,661)
		521,542		-		(957,889)		(436,347)
Other changes		-		-		-		-
Closing balance:
Insurance contract liabilities	W	5,697,862		53,615		62,905		5,814,382

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts (continued)

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	5,122,793		42,765		59,840		5,225,398
Insurance revenue:
Contracts under the modified retrospective approach		(26,917)		-		-		(26,917)
Contracts under the fair value approach		(120,696)		-		-		(120,696)
Contracts after transition		(10,175)		-		-		(10,175)
		(157,788)		-		-		(157,788)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		106,897		106,897
Adjustments to liabilities for incurred claims		-		-		1,866		1,866
Losses and reversals of losses on onerous contracts		-		3,203		-		3,203
Amortization of insurance acquisition cash flows		19,328		-		-		19,328
Experience adjustments to insurance acquisition cash flows that are not related to future service		357		-		-		357
Others		45		(145)		-		(100)
		19,730		3,058		108,763		131,551
Investment components and premium refunds		(919,411)		-		919,411		-
Insurance finance income or expenses recognized in:
Profit or loss		171,443		399		798		172,640
Other comprehensive income		50,220		345		144		50,709
		221,663		744		942		223,349
Cash flows:
Premiums received		591,193		-		-		591,193
Insurance acquisition cash flows		(15,721)		-		-		(15,721)
Claims and other insurance service expenses paid		-		-		(103,796)		(103,796)
Investment components received (paid) and premium refunds		-		-		(923,332)		(923,332)
		575,472		-		(1,027,128)		(451,656)
Other changes		1		(1)		-		-
Closing balance:
Insurance contract liabilities	W	4,862,460		46,566		61,828		4,970,854

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach:

		2025
		Liability for remaining coverage		Liability for incurred claims
								Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Total
Opening balance:
Insurance contract liabilities	W	171		237		11		419
Insurance revenue		(1,199)		-		-		(1,199)
Insurance service expenses:
Incurred claims and other insurance service expenses		537		1,009		6		1,552
Adjustments to liabilities for incurred claims		-		(96)		(9)		(105)
Losses and reversals of losses on onerous contracts		742		-		-		742
		1,279		913		(3)		2,189
Investment components and premium refunds		(223)		223		-		-
Insurance finance income or expenses recognized in:
Profit or loss		-		8		-		8
Other comprehensive income		-		(1)		-		(1)
		-		7		-		7
Cash flows:
Premiums received		1,385		-		-		1,385
Insurance acquisition cash flows		(537)		-		-		(537)
Claims and other insurance service expenses paid		-		(892)		-		(892)
Investment components received (paid) and premium refunds		-		(220)		-		(220)
		848		(1,112)		-		(264)
Closing balance:
Insurance contract liabilities	W	876		268		8		1,152

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach: (continued)

		2024
		Liability for remaining coverage		Liability for incurred claims
								Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Total
Opening balance:
Insurance contract liabilities	W	98		127		7		232
Insurance revenue		(445)		-		-		(445)
Insurance service expenses:
Incurred claims and other insurance service expenses		44		1,212		9		1,265
Adjustments to liabilities for incurred claims		-		52		(5)		47
Losses and reversals of losses on onerous contracts		54		-		-		54
		98		1,264		4		1,366
Investment components and premium refunds		(2)		2		-		-
Insurance finance income or expenses recognized in:
Profit or loss		-		6		-		6
Other comprehensive income		-		1		-		1
		-		7		-		7
Cash flows:
Premiums received		467		-		-		467
Insurance acquisition cash flows		(45)		-		-		(45)
Claims and other insurance service expenses paid		-		(1,161)		-		(1,161)
Investment components received (paid) and premium refunds		-		(2)		-		(2)
		422		(1,163)		-		(741)
Closing balance:
Insurance contract liabilities	W	171		237		11		419

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied:

i) Participating insurance contracts

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	5,179,009		21,157		134		117,952		448		118,534		5,318,700
Changes that relate to future service:
Changes in estimates that adjust the CSM		(20,115)		(479)		90		20,537		(33)		20,594		-
Changes in estimates that do not adjust the CSM		(22,873)		(928)		-		-		-		-		(23,801)
Contracts initially recognized in the period		4,140		30		-		-		1		1		4,171
		(38,848)		(1,377)		90		20,537		(32)		20,595		(19,630)
Changes that relate to current service:
CSM recognized for services provided		-		-		(11)		(12,072)		(18)		(12,101)		(12,101)
Change in risk adjustment		-		(719)		-		-		-		-		(719)
Experience adjustments		(5,385)		-		-		-		-		-		(5,385)
		(5,385)		(719)		(11)		(12,072)		(18)		(12,101)		(18,205)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(514)		(138)		-		-		-		-		(652)
Insurance finance income or expenses recognized in:
Profit or loss		168,947		706		4		3,816		18		3,838		173,491
Other comprehensive income		(174,355)		(390)		-		-		-		-		(174,745)
		(5,408)		316		4		3,816		18		3,838		(1,254)
Cash flows:
Premiums received		52,142		-		-		-		-		-		52,142
Insurance acquisition cash flows		(1,266)		-		-		-		-		-		(1,266)
Claims and other insurance service expenses paid		(31,798)		-		-		-		-		-		(31,798)
Investment components received (paid) and premium refunds		(208,048)		-		-		-		-		-		(208,048)
		(188,970)		-		-		-		-		-		(188,970)
Other changes		(62)		-		-		-		-		-		(62)
Closing balance:
Insurance contract liabilities	W	4,939,822		19,239		217		130,233		416		130,866		5,089,927

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

i) Participating insurance contracts (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	4,801,491		19,796		-		88,060		254		88,314		4,909,601
Changes that relate to future service:
Changes in estimates that adjust the CSM		(36,247)		(310)		136		37,086		(665)		36,557		-
Changes in estimates that do not adjust the CSM		63,717		153		-		-		-		-		63,870
Contracts initially recognized in the period		(548)		16		-		-		1,190		1,190		658
		26,922		(141)		136		37,086		525		37,747		64,528
Changes that relate to current service:
CSM recognized for services provided		-		-		(3)		(10,506)		(358)		(10,867)		(10,867)
Change in risk adjustment		-		(578)		-		-		-		-		(578)
Experience adjustments		(4,489)		-		-		-		-		-		(4,489)
		(4,489)		(578)		(3)		(10,506)		(358)		(10,867)		(15,934)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(1,030)		(256)								-		(1,286)
Insurance finance income or expenses recognized in:
Profit or loss		159,428		713		1		3,312		27		3,340		163,481
Other comprehensive income		372,373		1,623		-		-		-		-		373,996
		531,801		2,336		1		3,312		27		3,340		537,477
Cash flows:
Premiums received		57,374		-		-		-		-		-		57,374
Insurance acquisition cash flows		(925)		-		-		-		-		-		(925)
Claims and other insurance service expenses paid		(29,720)		-		-		-		-		-		(29,720)
Investment components received (paid) and premium refunds		(202,415)		-		-		-		-		-		(202,415)
		(175,686)		-		-		-		-		-		(175,686)
Closing balance:
Insurance contract liabilities	W	5,179,009		21,157		134		117,952		448		118,534		5,318,700

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	29,909,959		1,248,705		1,586,732		3,363,834		2,021,785		6,972,351		38,131,015
Changes that relate to future service:
Changes in estimates that adjust the CSM		989,759		(18,135)		(117,466)		(218,544)		(635,614)		(971,624)		-
Changes in estimates that do not adjust the CSM		51,674		592		-		-		-		-		52,266
Contracts initially recognized in the period		(1,840,521)		223,433		-		-		1,644,574		1,644,574		27,486
		(799,088)		205,890		(117,466)		(218,544)		1,008,960		672,950		79,752
Changes that relate to current service:
CSM recognized for services provided		-		-		(120,405)		(283,855)		(299,437)		(703,697)		(703,697)
Change in risk adjustment		-		(163,112)		-		-		-		-		(163,112)
Experience adjustments		96,681		-		-		-		-		-		96,681
		96,681		(163,112)		(120,405)		(283,855)		(299,437)		(703,697)		(770,128)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(12,403)		(10,145)		-		-		-		-		(22,548)
Insurance finance income or expenses recognized in:
Profit or loss		1,034,784		46,888		48,768		103,395		107,185		259,348		1,341,020
Other comprehensive income		(1,606,426)		(27,023)		-		-		-		-		(1,633,449)
		(571,642)		19,865		48,768		103,395		107,185		259,348		(292,429)
Cash flows:
Premiums received		7,202,121		-		-		-		-		-		7,202,121
Insurance acquisition cash flows		(2,039,887)		-		-		-		-		-		(2,039,887)
Claims and other insurance service expenses paid		(1,659,457)		-		-		-		-		-		(1,659,457)
Investment components received (paid) and premium refunds		(3,620,894)		-		-		-		-		-		(3,620,894)
		(118,117)		-		-		-		-		-		(118,117)
Others		105		(36)		-		-		(141)		(141)		(72)
Closing balance:
Insurance contract liabilities	W	28,505,495		1,301,167		1,397,629		2,964,830		2,838,352		7,200,811		37,007,473

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	27,620,212		1,048,152		1,836,357		3,609,317		1,284,719		6,730,393		35,398,757
Changes that relate to future service:
Changes in estimates that adjust the CSM		482,597		90,053		(153,114)		(53,831)		(365,705)		(572,650)		-
Changes in estimates that do not adjust the CSM		(16,446)		(476)		-		-		460		460		(16,462)
Contracts initially recognized in the period		(1,390,464)		156,485		-		-		1,260,769		1,260,769		26,790
		(924,313)		246,062		(153,114)		(53,831)		895,524		688,579		10,328
Changes that relate to current service:
CSM recognized for services provided		-		-		(152,482)		(301,035)		(239,787)		(693,304)		(693,304)
Change in risk adjustment		-		(110,957)		-		-		-		-		(110,957)
Experience adjustments		(27,640)		-		-		-		-		-		(27,640)
		(27,640)		(110,957)		(152,482)		(301,035)		(239,787)		(693,304)		(831,901)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		41,882		(14,655)		-		-		-		-		27,227
Insurance finance income or expenses recognized in:
Profit or loss		1,083,457		39,233		55,971		109,383		81,329		246,683		1,369,373
Other comprehensive income		2,732,028		40,870		-		-		-		-		2,772,898
		3,815,485		80,103		55,971		109,383		81,329		246,683		4,142,271
Cash flows:
Premiums received		6,247,295		-		-		-		-		-		6,247,295
Insurance acquisition cash flows		(1,567,085)		-		-		-		-		-		(1,567,085)
Claims and other insurance service expenses paid		(1,480,225)		-		-		-		-		-		(1,480,225)
Investment components received (paid) and premium refunds		(3,815,652)		-		-		-		-		-		(3,815,652)
		(615,667)		-		-		-		-		-		(615,667)
Closing balance:
Insurance contract liabilities	W	29,909,959		1,248,705		1,586,732		3,363,834		2,021,785		6,972,351		38,131,015

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	4,758,088		76,857		48,135		65,638		22,136		135,909		4,970,854
Changes that relate to future service:
Changes in estimates that adjust the CSM		(105,882)		5,500		(1,954)		101,442		894		100,382		-
Changes in estimates that do not adjust the CSM		6,958		(778)		-		-		-		-		6,180
Contracts initially recognized in the period		(5,026)		922		-		-		4,211		4,211		107
		(103,950)		5,644		(1,954)		101,442		5,105		104,593		6,287
Changes that relate to current service:
CSM recognized for services provided		-		-		(4,379)		(12,925)		(2,760)		(20,064)		(20,064)
Change in risk adjustment		-		(9,219)		-		-		-		-		(9,219)
Experience adjustments		(3,233)		-		-		-		-		-		(3,233)
		(3,233)		(9,219)		(4,379)		(12,925)		(2,760)		(20,064)		(32,516)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(3,735)		(834)		-		-		-		-		(4,569)
Insurance finance income or expenses recognized in:
Profit or loss		1,260,720		8,089		1,178		1,323		279		2,780		1,271,589
Other comprehensive income		41,282		(2,198)		-		-		-		-		39,084
		1,302,002		5,891		1,178		1,323		279		2,780		1,310,673
Cash flows:
Premiums received		540,714		-		-		-		-		-		540,714
Insurance acquisition cash flows		(19,172)		-		-		-		-		-		(19,172)
Claims and other insurance service expenses paid		(93,228)		-		-		-		-		-		(93,228)
Investment components received (paid) and premium refunds		(864,661)		-		-		-		-		-		(864,661)
		(436,347)		-		-		-		-		-		(436,347)
Closing balance:
Insurance contract liabilities	W	5,512,825		78,339		42,980		155,478		24,760		223,218		5,814,382

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	4,791,795		83,584		70,136		255,953		23,930		350,019		5,225,398
Changes that relate to future service:
Changes in estimates that adjust the CSM		193,392		1,639		(17,689)		(174,128)		(3,215)		(195,032)		(1)
Changes in estimates that do not adjust the CSM		3,203		(15)		-		-		-		-		3,188
Contracts initially recognized in the period		(4,412)		622		-		-		3,805		3,805		15
		192,183		2,246		(17,689)		(174,128)		590		(191,227)		3,202
Changes that relate to current service:
CSM recognized for services provided		-		-		(5,913)		(20,029)		(2,770)		(28,712)		(28,712)
Change in risk adjustment		-		(7,828)		-		-		-		-		(7,828)
Experience adjustments		5,235		-		-		-		-		-		5,235
		5,235		(7,828)		(5,913)		(20,029)		(2,770)		(28,712)		(31,305)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		3,105		(1,239)		-		-		-		-		1,866
Insurance finance income or expenses recognized in:
Profit or loss		165,146		1,665		1,601		3,842		386		5,829		172,640
Other comprehensive income		52,280		(1,571)		-		-		-		-		50,709
		217,426		94		1,601		3,842		386		5,829		223,349
Cash flows:
Premiums received		591,193		-		-		-		-		-		591,193
Insurance acquisition cash flows		(15,721)		-		-		-		-		-		(15,721)
Claims and other insurance service expenses paid		(103,796)		-		-		-		-		-		(103,796)
Investment components received (paid) and premium refunds		(923,332)		-		-		-		-		-		(923,332)
		(451,656)		-		-		-		-		-		(451,656)
Closing balance:
Insurance contract liabilities	W	4,758,088		76,857		48,135		65,638		22,136		135,909		4,970,854

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(i) Changes in insurance contract liabilities resulted from changes in assumptions for changes related to future service, quantity changes and differences between expected and actual investment component that become payable:

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
Changes that relate to future service
New contracts	W	(1,841,407)		224,385		1,648,786
Contracts other than new contracts
Effect of changes in assumptions
Lapse rates (*)		494,068		-		(472,651)
Risk rates		377,457		-		(380,902)
Expense ratio		(150,237)		-		157,884
Other assumption		(123,488)		-		119,034
		597,800		-		(576,635)
Quantity changes and differences between expected and actual investment component		301,721		(14,228)		(306,604)
Loss component		-		-		32,591
		899,521		(14,228)		(850,648)
	W	(941,886)		210,157		798,138

(*) Included the effect of assumption changes in renewal rate.

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
Changes that relate to future service
New contracts	W	(1,395,424)		157,124		1,265,763
Contracts other than new contracts
Effect of changes in assumptions
Lapse rates (*)		282,107		-		(409,405)
Risk rates		(472,117)		-		457,367
Expense ratio		(244,759)		-		258,604
Other assumption		219,456		-		(217,764)
		(215,313)		-		88,802
Quantity changes and differences between expected and actual investment component		905,529		91,045		(870,063)
Loss component		-		-		50,596
		690,216		91,045		(730,665)
	W	(705,208)		248,169		535,098

(*) Included the effect of assumption changes in renewal rate.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(j) An analysis of insurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Contracts other than those to which the premium allocation approach has been applied:

		2025
		Estimates of present value of future cash outflows				Estimates of present value of future cash inflows		Risk adjustment for non-financial risk		Contractual service margin		Total
		Other than insurance acquisition cash flows		Insurance acquisition cash flows
Insurance contract initially recognized
Other than onerous group of contracts	W	7,198,835		2,062,270		(11,125,775)		215,884		1,648,786		-
Onerous group of contracts		738,097		102,704		(817,538)		8,501		-		31,764
	W	7,936,932		2,164,974		(11,943,313)		224,385		1,648,786		31,764
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Estimates of present value of future cash outflows				Estimates of present value of future cash inflows		Risk adjustment for non-financial risk		Contractual service margin		Total
		Other than insurance acquisition cash flows		Insurance acquisition cash flows
Insurance contract initially recognized
Other than onerous group of contracts	W	5,651,531		1,725,066		(8,790,229)		147,869		1,265,763		-
Onerous group of contracts		746,636		118,673		(847,101)		9,255		-		27,463
	W	6,398,167		1,843,739		(9,637,330)		157,124		1,265,763		27,463

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied:

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Total
Non-Par
Participating life W		2,159		2,102		2,047		1,993		1,939		1,886		1,833		1,780		1,726		1,671		7,536		6,203		4,909		3,670		5,332		46,786
Non-participating life		138,539		116,513		105,296		95,575		76,895		64,355		59,953		57,782		55,125		53,165		254,349		239,308		222,676		200,767		740,558		2,480,856
Participating health		316		303		270		252		237		222		207		193		180		167		664		442		299		204		334		4,290
Non-participating health		158,141		139,399		125,423		115,060		106,710		99,425		93,104		88,515		85,071		81,713		374,626		327,428		278,419		233,950		788,124		3,095,108
Participating annuity & savings		2		2		2		2		2		2		2		2		2		2		13		14		13		11		15		86
Non-participating annuity & savings		(2)		(1)		(1)		-		-		-		-		1		1		2		19		24		20		-		-		63
Indirect-Par
Non-participating life		23,889		21,542		19,983		18,712		17,752		17,122		16,651		16,253		15,890		15,533		72,682		63,640		54,206		44,340		113,511		531,706
Variable life		4,962		4,463		4,067		3,745		3,476		3,263		3,089		2,948		2,818		2,701		12,043		10,031		8,536		7,068		16,808		90,018
Participating annuity & savings		6,455		6,101		5,776		5,470		5,196		4,914		4,611		4,309		3,990		3,653		13,780		7,889		4,052		1,908		1,599		79,703
Non-participating annuity & savings		79,885		72,322		66,478		61,576		56,940		52,137		47,682		43,910		40,959		38,264		153,778		102,795		65,250		37,385		41,763		961,124
Asset-linked annuity & savings		13,122		12,193		10,812		9,109		8,281		7,697		7,095		6,226		5,697		5,213		19,313		11,359		6,641		3,844		5,354		131,956
Direct-Par
Variable annuity & savings		14,073		12,571		11,175		9,984		8,979		8,092		7,274		6,507		5,810		5,170		18,472		10,272		5,615		3,150		6,057		133,201
Subtotal
Participating		8,932		8,508		8,095		7,717		7,374		7,024		6,653		6,284		5,898		5,493		21,993		14,548		9,273		5,793		7,280		130,865
Non-participating		413,574		361,968		327,991		300,032		266,578		240,736		224,485		212,687		202,743		193,890		874,767		744,554		627,212		520,286		1,689,310		7,200,813
Variable		19,035		17,034		15,242		13,729		12,455		11,355		10,363		9,455		8,628		7,871		30,515		20,303		14,151		10,218		22,865		223,219
W		441,541		387,510		351,328		321,478		286,407		259,115		241,501		228,426		217,269		207,254		927,275		779,405		650,636		536,297		1,719,455		7,554,897

(*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Total
Non-Par
Participating life W		1,394		1,371		1,353		1,335		1,319		1,302		1,284		1,267		1,248		1,228		5,797		5,142		4,385		3,513		5,881		37,819
Non-participating life		146,758		113,665		98,885		92,666		85,886		71,137		65,023		61,991		59,798		57,556		266,512		238,364		213,338		188,770		637,458		2,397,807
Participating health		219		201		192		172		160		151		141		132		123		115		458		305		205		138		227		2,939
Non-participating health		149,441		128,399		116,181		107,027		99,782		93,748		88,324		84,053		81,045		78,476		360,062		315,300		272,015		230,536		800,299		3,004,688
Participating annuity & savings		(4)		(4)		(4)		(4)		(4)		(4)		(4)		(5)		(5)		1		24		26		25		22		30		90
Non-participating annuity & savings		10		8		8		8		7		4		3		3		3		2		8		5		-		-		-		69
Indirect-Par
Non-participating life		28,751		23,816		21,373		19,647		18,378		17,490		16,867		16,375		15,966		15,614		73,223		64,547		55,322		45,703		118,706		551,778
Variable life		5,245		4,498		4,043		3,691		3,398		3,148		2,948		2,784		2,652		2,533		11,236		9,346		8,061		6,797		17,141		87,521
Participating annuity & savings		5,432		5,261		5,061		4,840		4,637		4,445		4,266		4,049		3,804		3,538		13,999		8,740		4,881		2,464		2,267		77,684
Non-participating annuity & savings		82,225		72,433		65,241		59,370		54,421		49,591		45,313		41,475		37,876		34,859		138,740		90,235		55,446		31,646		32,978		891,849
Asset-linked annuity & savings		13,007		12,105		11,376		9,987		8,239		7,438		6,868		6,286		5,381		4,829		17,784		9,908		5,544		3,131		4,279		126,162
Direct-Par
Variable annuity & savings		5,349		4,807		4,274		3,801		3,411		3,060		2,777		2,472		2,119		1,819		6,143		3,322		1,848		1,083		2,100		48,385
Subtotal
Participating		7,041		6,829		6,602		6,343		6,112		5,894		5,687		5,443		5,170		4,882		20,278		14,213		9,496		6,137		8,405		118,532
Non-participating		420,192		350,426		313,064		288,705		266,713		239,408		222,398		210,183		200,069		191,336		856,329		718,359		601,665		499,786		1,593,720		6,972,353
Variable		10,594		9,305		8,317		7,492		6,809		6,208		5,725		5,256		4,771		4,352		17,379		12,668		9,909		7,880		19,241		135,906
W		437,827		366,560		327,983		302,540		279,634		251,510		233,810		220,882		210,010		200,570		893,986		745,240		621,070		513,803		1,621,366		7,226,791

(*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(l) As of December 31, 2025 and 2024, the composition and fair value amounts of the underlying items of insurance contracts with direct participation features are as follows:

Underlying items (*)		2025		2024
Cash and due from banks at amortized cost	W	371,582		294,963
Financial assets at fair value through profit or loss		4,004,935		3,561,126
Loans at amortized cost		40,245		32,489
Derivatives		429		(150)
Others		52,778		69,608
	W	4,469,969		3,958,036

(*) The carrying amounts of financial assets (liabilities) for variable insurance were W6,338,236 million and W5,498,129 million as of December 31, 2025 and 2024, respectively.

26. Reinsurance contract assets (liabilities)

(a) The carrying amounts of reinsurance contract assets (liabilities) as of December 31, 2025 and 2024 are as follows:

		2025
		Life		Health		Combined		Total
Reinsurance contract assets	W	-		-		494,226		494,226
Reinsurance contract liabilities		(24,641)		(31,737)		-		(56,378)
Net reinsurance contract assets (liabilities)	W	(24,641)		(31,737)		494,226		437,848
		2024
		Life		Health		Combined		Total
Reinsurance contract assets	W	-		-		107,668		107,668
Reinsurance contract liabilities		(26,214)		(71,844)		-		(98,058)
Net reinsurance contract assets (liabilities)	W	(26,214)		(71,844)		107,668		9,610

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		Remaining coverage component				Incurred claims component		Total
		Excluding<br><br>loss recovery<br><br>component		Loss recovery<br><br>component
Opening balance:
Reinsurance contract assets	W	47,337		3,806		56,525		107,668
Reinsurance contract liabilities		(153,214)		17,246		37,910		(98,058)
Net assets (liabilities)		(105,877)		21,052		94,435		9,610
Reinsurance revenue:
Recoveries on incurred claims and other incurred reinsurance service expenses		-		-		184,667		184,667
Changes in expected recoveries on past claims		-		-		(34,424)		(34,424)
Recognition and reversal of loss recovery component		-		15,428		-		15,428
Others		60		(1,378)		-		(1,318)
		60		14,050		150,243		164,353
Reinsurance service expenses:
Reinsurance contracts under the fair value approach		(68,561)		-		-		(68,561)
Reinsurance contracts after transition		(81,714)		-		-		(81,714)
		(150,275)		-		-		(150,275)
Investment components and reinsurance premium refunds		(249,075)		-		249,075		-
Reinsurance finance income and expenses recognized in:
Profit or loss		9,054		(4)		1,829		10,879
Other comprehensive income		(211,900)		12		170		(211,718)
		(202,846)		8		1,999		(200,839)
Cash flows:
Reinsurance premiums paid		969,673		-		-		969,673
Recoveries from reinsurance		-		-		(129,648)		(129,648)
Investment components received and reinsurance premium refunds		21,694		-		(246,720)		(225,026)
		991,367		-		(376,368)		614,999
Closing balance:
Reinsurance contract assets		433,777		3,787		56,662		494,226
Reinsurance contract liabilities		(150,423)		31,323		62,722		(56,378)
Net assets (liabilities)	W	283,354		35,110		119,384		437,848

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

		2024
		Remaining coverage component				Incurred claims component		Total
		Excluding<br><br>loss recovery<br><br>component		Loss recovery<br><br>component
Opening balance:
Reinsurance contract assets	W	19,436		5,055		38,324		62,815
Reinsurance contract liabilities		(143,191)		23,142		26,929		(93,120)
Net assets (liabilities)		(123,755)		28,197		65,253		(30,305)
Reinsurance revenue:
Recoveries on incurred claims and other incurred reinsurance service expenses		-		-		89,789		89,789
Changes in expected recoveries on past claims		-		-		(29,392)		(29,392)
Recognition and reversal of loss recovery component		-		(6,131)		-		(6,131)
Others		17		(1,320)		-		(1,303)
		17		(7,451)		60,397		52,963
Reinsurance service expenses:
Reinsurance contracts under the fair value approach		(28,837)		-		-		(28,837)
Reinsurance contracts after transition		(29,006)		-		-		(29,006)
		(57,843)		-		-		(57,843)
Investment components and reinsurance premium refunds		(143,510)		-		143,510		-
Reinsurance finance income and expenses recognized in:
Profit or loss		(1,356)		37		1,375		56
Other comprehensive income		(2,692)		243		350		(2,099)
		(4,048)		280		1,725		(2,043)
Cash flows:
Reinsurance premiums paid		220,940		-		-		220,940
Recoveries from reinsurance		-		-		(33,480)		(33,480)
Investment components received and reinsurance premium refunds		2,348		-		(142,970)		(140,622)
		223,288		-		(176,450)		46,838
Other increase/decrease		(26)		26		-		-
Closing balance:
Reinsurance contract assets		47,337		3,806		56,525		107,668
Reinsurance contract liabilities		(153,214)		17,246		37,910		(98,058)
Net assets (liabilities)	W	(105,877)		21,052		94,435		9,610

(c) There have been no reinsurance contract assets (liabilities) to which the premium allocation approach has been applied for the years ended December 31, 2025 and 2024.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)						Total
										Reinsurance contracts under<br><br>fair value approach				Other contracts		Subtotal
Opening balance:
Reinsurance contract assets	W	(81,007)		19,668		78,043		90,964		169,007		107,668
Reinsurance contract liabilities		(323,274)		39,436		95,595		90,186		185,781		(98,057)
Net assets (liabilities)		(404,281)		59,104		173,638		181,150		354,788		9,611
Changes that relate to future service:
Changes in estimates that adjust the CSM		110,471		3,688		(54,909)		(45,411)		(100,320)		13,839
Contracts initially recognized in the period		(268,585)		16,943		-		253,230		253,230		1,588
		(158,114)		20,631		(54,909)		207,819		152,910		15,427
Changes that relate to current service:
CSM recognized for services received		-		-		(10,697)		(21,925)		(32,622)		(32,622)
Change in risk adjustment		-		(5,049)		-		-		-		(5,049)
Experience adjustments		70,745		-		-		-		-		70,745
		70,745		(5,049)		(10,697)		(21,926)		(32,622)		33,074
Changes that relate to past service:
Adjustments to incurred claims component		(33,574)		(850)		-		-		-		(34,424)
Reinsurance finance income or expenses recognized in:
Profit or loss		(7,190)		2,250		5,176		10,643		15,819		10,879
Other comprehensive income		(209,365)		(2,353)		-		-		-		(211,718)
		(216,555)		(103)		5,176		10,643		15,819		(200,839)
Cash flows:
Reinsurance premiums paid		969,673		-		-		-		-		969,673
Recoveries from reinsurance		(129,648)		-		-		-		-		(129,648)
Investment components received and reinsurance premium refunds		(225,026)		-		-		-		-		(225,026)
		614,999		-		-		-		-		614,999
Closing balance:
Reinsurance contract assets		188,681		26,546		57,547		221,452		278,999		494,226
Reinsurance contract liabilities		(315,461)		47,187		55,661		156,235		211,896		(56,378)
Net assets (liabilities)	W	(126,780)		73,733		113,208		377,687		490,895		437,848

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)						Total
										Reinsurance contracts under<br><br>fair value approach				Other contracts		Subtotal
Opening balance:
Reinsurance contract assets	W	(26,683)		18,538		15,224		55,736		70,960		62,815
Reinsurance contract liabilities		(181,724)		28,568		24,066		35,970		60,036		(93,120)
Net assets (liabilities)		(208,407)		47,106		39,290		91,706		130,996		(30,305)
Changes that relate to future service:
Changes in estimates that adjust the CSM		(187,433)		4,856		121,614		53,352		174,966		(7,611)
Contracts initially recognized in the period		(45,885)		4,651		-		42,714		42,714		1,480
		(233,318)		9,507		121,614		96,066		217,680		(6,131)
Changes that relate to current service:
CSM recognized for services received		-		-		11,035		(10,814)		221		221
Change in risk adjustment		-		(2,978)		-		-		-		(2,978)
Experience adjustments		33,399		-		-		-		-		33,399
		33,399		(2,978)		11,035		(10,814)		221		30,642
Changes that relate to past service:
Adjustments to incurred claims component		(27,873)		(1,518)		-		-		-		(29,391)
Reinsurance finance income or expenses recognized in:
Profit or loss		(7,593)		1,758		1,699		4,192		5,891		56
Other comprehensive income		(7,327)		5,228		-		-		-		(2,099)
		(14,920)		6,986		1,699		4,192		5,891		(2,043)
Cash flows:
Reinsurance premiums paid		220,940		-		-		-		-		220,940
Recoveries from reinsurance		(33,480)		-		-		-		-		(33,480)
Investment components received and reinsurance premium refunds		(140,622)		-		-		-		-		(140,622)
		46,838		-		-		-		-		46,838
Closing balance:
Reinsurance contract assets		(81,007)		19,668		78,043		90,964		169,007		107,668
Reinsurance contract liabilities		(323,274)		39,435		95,595		90,186		185,781		(98,058)
Net assets (liabilities)	W	(404,281)		59,103		173,638		181,150		354,788		9,610

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(e) An analysis of reinsurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		Estimates of present value of<br><br>future cash outflows
		Other than insurance<br><br>acquisition cash flows			Insurance acquisition<br><br>cash flows			Estimates of present value of<br><br>future cash inflows			Risk adjustment for<br><br>non-financial risks			Contractual service margin		Total
Reinsurance contract<br><br>initially recognized
Other than net gain group of contracts	W	(1,745,355)			-			1,478,122			15,440			253,108		1,315
Net gain group of contracts		(62,220)			-			60,868			1,503			125		276
	W	(1,807,575)			-			1,538,990			16,943			253,233		1,591
		2024
		Estimates of present value of<br><br>future cash outflows
		Other than insurance<br><br>acquisition cash flows			Insurance acquisition<br><br>cash flows			Estimates of present value of<br><br>future cash inflows			Risk adjustment for<br><br>non-financial risks			Contractual service margin		Total
Reinsurance contract<br><br>initially recognized
Other than net gain group of contracts	W	(159,792)			-			109,822			3,077			47,383		490
Net gain group of contracts		(64,074)			-			68,159			1,574			(4,669)		990
	W	(223,866)			-			177,981			4,651			42,714		1,480

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(f) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>5 years		After 5 years through<br><br>10 years		After 10 years		Total
Reinsurance contract assets	W	19,298		18,144		49,242		67,963		124,352		278,999
Reinsurance contract liabilities		18,802		16,756		38,942		43,802		93,594		211,896
	W	38,100		34,900		88,184		111,765		217,946		490,895
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>5 years		After 5 years through<br><br>10 years		After 10 years		Total
Reinsurance contract assets	W	12,512		11,334		29,402		38,425		77,334		169,007
Reinsurance contract liabilities		13,874		12,036		30,495		35,569		93,807		185,781
	W	26,386		23,370		59,897		73,994		171,141		354,788

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

27. Investment contract liabilities

Investment contract liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Financial liabilities at amortized cost (*)	W	1,541,684		1,332,468

(*) The amount is policyholders’ reserve for retirement pension contracts.

28. Borrowings

Borrowings as of December 31, 2025 and 2024 are as follows:

Type of borrowings				Currency		2025		2024
Borrowings in won		Other borrowings (*)		KRW	W	32,056		23,291
Borrowings in foreign currency				USD		310		252
					W	32,366		23,543

(*) It is attributable to non-controlling interests for the consolidated structured entity that are classified as liabilities.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

29. Debentures

Debentures as of December 31, 2025 and 2024 are as follows:

		2025
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond (unsecured) (*1)		KRW		2023.06.09		2033.06.09		5.20%		10 years	W	300,000		299,636
		KRW		2025.06.05		2035.06.05		3.40%		10 years		500,000		498,756
											W	800,000		798,392

(*1) The maturity of unsecured subordinated bonds is 10 years from the date of issuance, and each unsecured subordinated bond can be repaid early in full at the date after five years since the date of issuance or at every interest payment date thereafter.

(*2) The difference from the face value was recorded as the present value discount.

		2024
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond (unsecured) (*1)		KRW		2023.06.09		2033.06.09		5.20%		10 years	W	300,000		299,487

(*1) The maturity of unsecured subordinated bonds is 10 years from the date of issuance, and each unsecured subordinated bond can be repaid early in full at the date after five years since the date of issuance or at every interest payment date thereafter.

(*2) The difference from the face value was recorded as the present value discount.

30. Other financial liabilities

Other financial liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Account payables	W	26,840		21,701
Accrued expense		670,357		477,451
Lease deposits received		707		657
	W	697,904		499,809

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

31. Employee benefits

(a) Defined benefit obligations and plan assets

The Group operates a defined benefit plan based on employees' pension compensation benefits and service period, and entrusts plan assets to Shinhan Bank, etc.

Defined benefit obligations and plan assets as of December 31, 2025 and 2024 are as follows:

		2025		2024
Present value of defined benefit obligations	W	144,064		139,703
Fair value of plan assets		(147,746)		(154,730)
Recognized liabilities (assets) for defined benefit obligations	W	(3,682)		(15,027)

(b) Changes in the present value of defined benefit obligation for the years ended December 31, 2025 and 2024 were as

follows:

		2025		2024
Beginning balance	W	139,703		124,188
Current service cost		9,797		8,787
Interest expense		6,435		6,374
Remeasurement loss (gain):
Demographic assumptions		1,311		(107)
Financial assumptions		(4,227)		12,668
Experience adjustment		2,933		2,264
		17		14,825
Past service cost		-		40
Salaries		(12,104)		(14,730)
Severance payment transferred from (to) associates		217		218
Exchange rate effect		(1)		1
Ending balance	W	144,064		139,703

(c) Plan assets

Changes in the Plan assets for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Beginning balance	W	154,730		156,648
Expected return		7,137		8,036
Remeasurement factors		(2,719)		(2,407)
Contributions		5,000		-
Benefits Paid		(16,402)		(7,007)
Severance payment transferred from (to) associates		-		(540)
Ending balance	W	147,746		154,730

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

31. Employee benefits (continued)

(d) Gains and losses related to the defined benefit plan

Gains and losses related to the defined benefit plan for the years ended December 31, 2025 and 2024 are as follows:

(*1)(*2)		2025		2024
Current service cost	W	9,797		8,787
Interest expense		6,435		6,374
Past service cost		-		40
Expected return on plan assets		(7,137)		(8,036)
	W	9,095		7,165

(*1) The above gains and losses related to the defined benefit plan are included in insurance service expenses, investment management expenses, and other operating expenses. Of gains and losses related to the defined benefit plan, W418 million and W269 million for the years ended December 31, 2025 and 2024, respectively, were transferred to property and equipment, and intangible assets.

(*2) Termination benefits of W12,075 million and W24,251 million included in salaries were paid for the years ended December 31, 2025 and 2024, respectively.

(e) The gains and losses related to the defined contribution plan for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Operating expenses	W	5,136		4,950
Investment administration expenses		281		303
Other operating expenses		1,071		932
Total (*)	W	6,488		6,185

(*) Of the above gains and losses related to the defined contribution plan for the year ended December 31, 2025, W120 million (W156 million for the year ended December 31, 2024) has been transferred to property and equipment and intangible assets.

(f) Details of plan assets by type

The composition of plan assets as of December 31, 2025 and 2024 are as follows:

	2025				2024
	Ratio		Amount		Ratio		Amount
Time deposits	41.60%	W	61,455		49.78%	W	77,025
Retirement pension insurance	56.69%		83,761		49.33%		76,326
Others	1.71%		2,530		0.89%		1,379
	100.00%	W	147,746		100.00%	W	154,730

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

31. Employee benefits (continued)

(g) Actuarial assumptions as of December 31, 2025 and 2024 are as follows:

		2025		2024		Description
Discount rate (expected rate of return)		4.03% ~ 4.68%		4.49% ~ 4.66%		AA0 corporate bond yields
Future salary increase rate		4.41% +<br><br>increase rate		4.03% +<br><br>increase rate		Average for the past 5 years
Retirement rate		1%~23.7%		2% ~3%		Average for the past 3 years
Weighted average maturity		4.98~7.84 years		10.73~10.9 years

(h) Sensitivity analysis

As of December 31, 2025 and 2024, changes in present value of the defined benefit obligations resulted from the change in key assumption are as follows:

		2025				2024
		Increase		Decrease		Increase		Decrease
Discount rate (1%p movement)	W	(7,367)		11,659		(13,667)		15,745
Future salary increase rate<br><br>(1%p movement)		11,579		(10,490)		15,690		(13,871)

(i) Defined contribution plan for the year ended December 31, 2025 is expected to be W9,000 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

32. Provisions

(a) Details of provisions

Details of provisions as of December 31, 2025 and 2024 are as follows:

		2025		2024
Provisions for restoration	W	21,905		19,289
Unused credit commitments		777		253
Other long-term employee benefits provisions		11,183		13,802
Litigation provisions		300		352
Other provisions (*)		73,338		42,024
	W	107,503		75,720

(*) The amount expected to be paid in the future for the insurance refund of the insurance contract whose extinctive prescription has been completed is estimated and recorded as a liability for completion of extinctive prescription, and the Group recognized provisions related to pending litigation and other contingent matters. In addition, the amount as of December 31, 2025 includes an amount of W38,200 million recognized in respect of expected administrative penalties arising from the Financial Supervisory Service’s regular inspection conducted in 2023. This amount may be subject to change depending on the outcome of future regulatory actions.

(b) Changes in provisions for unused credit commitments

Changes in provisions for unused credit commitments for the years ended December 31, 2025 and 2024 are as follows:

		2025
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	247		6		-		253
Transfer to (from) 12-month expected credit losses		-		-		-		-
Transfer to (from) lifetime expected credit losses		-		-		-		-
Transfer to (from) impaired financial assets		-		-		-		-
Provision (Reversal)		530		(6)		-		524
Ending balance	W	777		-		-		777
		2024
---	---	---	---	---	---	---	---	---
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	652		1,202		-		1,854
Transfer to (from) 12-month expected credit losses		-		-		-		-
Transfer to (from) lifetime expected credit losses		-		-		-		-
Transfer to (from) impaired financial assets		-		-		-		-
Reversal		(405)		(1,196)		-		(1,601)
Ending balance	W	247		6		-		253

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

32. Provisions (continued)

(c) Changes in provisions

Change in provisions for the years ended December 31, 2025 and 2024 are as follows:

Classification		Provisions for restoration				Other long-term employee benefits provisions				Litigation provisions				Other provisions
			2025		2024		2025		2024		2025		2024		2025		2024
Beginning balance	W	19,289		18,426		13,802		13,361		352		862		42,024		45,069
Provision (Reverse)		1,578		611		1,520		1,544		(52)		(510)		65,046		42,643
Amount used		(237)		(87)		(1,004)		(854)		-		-		(33,732)		(45,688)
Others (*1)		1,275		339		(3,135)		(249)		-		-		-		-
Ending balance	W	21,905		19,289		11,183		13,802		300		352		73,338		42,024

(*1) The effects of changes in estimates, such as the amount and discount rate over time of restoration provisions and other long-term employee benefits provisions, measured at present value.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

32. Provisions (continued)

(d) Assumptions of other long-term employee benefits

The main assumptions used to calculate the reward for long-term employees according to the Group's long-term service as of December 31, 2025 and 2024 are as follows

		2025		2024		Description
Discount rate		4.23%		3.99%		AA0 corporate bond yields
Future salary increase rate		4.41% + increase rate		4.03% + increase rate		Average for the past 5 years
Retirement rate		1%~23.7%		2% ~3%		Average for the past 3 years

(e) Expected period of provision outflows

Expected period of provision outflows as of December 31, 2025 is as follows:

		2025
		Expected outflows		In 1 year<br><br>or less		After 1 year through<br><br>3 years		After 3 years through<br><br>5 years		After 5 years
Provisions for restoration (*1)	W	22,577		6,212		15,193		1,172		-
Unused credit commitments		777		32		6		735		4
Other long-term employee benefits provisions (*2)		13,997		1,933		3,001		1,865		7,198
Litigation provisions		300		-		300		-		-
Other provisions		73,337		56,370		5,138		2,981		8,848

(*1) It is the expected amount to be incurred at the time of the outflow of estimated restoration expense, which is before discounting as current value.

(*2) The expected outflow of provision for other long-term employee benefits provisions is an undiscounted amount.

33. Other liabilities

Other liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Advance receipts	W	1,015		292
Unearned revenue		85,183		88,492
Deposits		32,236		37,349
Accrued VAT		442		632
Others		3,369		1,191
	W	122,245		127,956

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

34. Equity

• Equity as of December 31, 2025 and 2024 are as follows:

		2025		2024
Share capital:
Common stocks	W	578,274		578,274
Hybrid bonds:
Hybrid bonds		-		299,452
Capital surplus:
Capital premium		819,340		819,340
Other capital surplus		672		672
		820,012		820,012
Capital adjustment:
Stock options		891		1,461
Accumulated other comprehensive income, net of tax:
Losses on valuation of securities at fair value through other comprehensive income		(3,243,722)		(1,766,211)
Foreign currency translation adjustments for foreign operations		10,581		14,299
Net valuation loss from cash flow hedges		(209,393)		90,681
Net finance income from insurance contracts issued		1,498,084		218,610
Net finance income from reinsurance contracts held		(141,935)		11,736
Remeasurements of defined benefit liabilities		(30,578)		(29,028)
		(2,116,963)		(1,459,913)
Retained earnings:
Legal reserve		132,991		95,160
Voluntary reserve		4,018,140		3,810,489
Unappropriated retained earnings		2,773,053		2,895,766
		6,924,184		6,801,415
	W	6,206,398		7,040,701

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

34. Equity (continued)

(b) Share capital

Share capital of the Group as of December 31, 2025 and 2024 are as follows:

		2025		2024
Number of authorized shares		400,000,000		400,000,000
Par value per share in won	W	5,000		5,000
Number of issued common stocks outstanding		115,654,859		115,654,859

(c) Hybrid bonds

Hybrid bonds as of December 31, 2025 and 2024 are as follows:

		Issue date		Maturity date		Interest rate		2025		2024
Unsecured interest-bearing hybrid bonds		2020-08-11		2050-08-11		3.60%	W	-		300,000
Issue cost								-		(756)
Deferred tax effects								-		208
							W	-		299,452

The above hybrid bonds were early redeemed during the year ended December 31, 2025, as the Group became entitled to exercise an early redemption option starting five years after issuance.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

34. Equity (continued)

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Items that may be subsequently reclassified to profit or loss										Items that will not be subsequently<br><br>reclassified to profit or loss
		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Foreign currency<br><br>translation<br><br>adjustments for<br><br>foreign operations		Valuation<br><br>gains (losses)<br><br>on derivative<br><br>for cash flow<br><br>hedges		Net finance<br><br>income from<br><br>insurance contracts issued		Net finance<br><br>income from<br><br>reinsurance<br><br>contracts held		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Remeasurements<br><br>of defined<br><br>benefit<br><br>liability		Total
Beginning balance	W	(1,760,894)		14,299		90,681		218,610		11,736		(5,317)		(29,028)		(1,459,913)
Change due to fair value		(2,077,669)		-		-		1,769,110		(211,718)		(4,193)		-		(524,470)
Change due to disposal		3,915		-		-		-		-		3,230		-		7,145
Remeasurements of the defined benefit liabilities		-		-		-		-		-		-		(2,736)		(2,736)
Effects of hedge		-		-		(412,878)		-		-		-		-		(412,878)
Effects of foreign<br><br>exchange rates		-		(4,832)		-		-		-		-		-		(4,832)
Tax effects		596,862		1,114		112,804		(489,636)		58,047		344		1,186		280,721
Reclassification of retained earnings		-		-		-		-		-		-		-		-
Ending balance	W	(3,237,786)		10,581		(209,393)		1,498,084		(141,935)		(5,936)		(30,578)		(2,116,963)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

34. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Items that may be subsequently reclassified to profit or loss										Items that will not be subsequently<br><br>reclassified to profit or loss
		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Foreign currency<br><br>translation<br><br>adjustments for<br><br>foreign operations		Valuation<br><br>gains (losses)<br><br>on derivative<br><br>for cash flow<br><br>hedges		Net finance<br><br>income from<br><br>insurance contracts issued		Net finance<br><br>income from<br><br>reinsurance<br><br>contracts held		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Remeasurements<br><br>of defined<br><br>benefit<br><br>liability		Total
Beginning balance	W	(2,491,311)		7,045		45,462		2,572,059		13,280		(6,206)		(16,345)		123,984
Change due to fair value		954,524		-		-		(3,197,604)		(2,098)		1,053		-		(2,244,125)
Change due to disposal		37,892		-		-		-		-		100		-		37,992
Remeasurements of the defined benefit liabilities		-		-		-		-		-		-		(17,232)		(17,232)
Effects of hedge		-		-		62,906		-		-		-		-		62,906
Effects of foreign<br><br>exchange rates		-		9,856		-		-		-		-		-		9,856
Tax effects		(261,999)		(2,602)		(17,687)		844,155		554		(305)		4,549		566,665
Reclassification of retained earnings		-		-		-		-		-		41		-		41
Ending balance	W	(1,760,894)		14,299		90,681		218,610		11,736		(5,317)		(29,028)		(1,459,913)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

34. Equity (continued)

(e) Legal reserve

According to the provisions of the Commercial Act, at least 10% of the profit dividend is accumulated as a legal reserve at each reporting period until it reaches 50% of the capital, and the legal reserve cannot be distributed in cash as dividends and can only be used for recovery of losses carried forward and capital transfer through resolution at the general meeting of shareholder.

(f) Voluntary reserve

i) Regulatory reserve for loan losses

In accordance with the Regulations on Supervision of Insurance Business, when the allowance for credit losses in accordance with Korean IFRS falls short of the allowance for credit losses in accordance with the supervisory regulations, the Group is required to reserve the difference between the two as the regulatory reserve for loan losses in retained earnings. The regulatory reserve for loan losses is calculated by the difference between the total amount of credit loss provisions under Korean IFRS and the total amount of credit loss provisions under the supervisory regulations for each category of corporate loans, household loans, and real estate project financing loans. The regulatory reserve for loan losses is limited to the amount of retained earnings less reserves accumulated in accordance with the Insurance Business Act and other laws and regulations.

① Regulatory reserve for loan losses as of December 31, 2025 and 2024 are as follows:

		2025		2024
Beginning balance	W	5,989		6,997
Expected provision for (reversal of) regulatory reserve for loan losses		353		(1,008)
Ending balance	W	6,342		5,989

② Reversal of regulatory reserve for loan losses and adjusted income after reflecting the regulatory reserve for loan

losses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Profit for the year	W	507,708		528,401
Provision for (reversal of) regulatory reserve for loan losses		(353)		1,008
Adjusted income after the regulatory reserve for loan losses (*1)	W	507,355		529,409
Adjusted income per share after the reserve for<br><br>loan losses in won (*2)	W	4,329		4,484

(*1) The adjusted profit after reflecting the regulatory reserve for loan losses is not a figure determined by the accounting standards. It is derived assuming the inclusion of the reversal (or provision) of the regulatory reserve for loan losses, before considering the effects of policyholder share allocations and deferred tax impacts, into the net profit for the period. (*2) Interest on hybrid bonds are excluded.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

34. Equity (continued)

(f) Voluntary reserve (continued)

ii) reserve for surrender value

In accordance with the Regulations on Supervision of Insurance Business, when the insurance liabilities measured in accordance with the Korean IFRS falls short of the surrender value required by the supervisory regulations, the Group is required to reserve the difference between the two as the reserve for surrender value. The reserve for surrender value is calculated by subtracting the liability for remaining coverage of insurance contracts under the Korean IFRS from the surrender value at the entity level for the effective contracts calculated according to the supervisory regulations.

Reserve for surrender value as of December 31, 2025 and 2024 are as follows:

		2025		2024
Reserve for surrender value	W	3,638,116		3,449,210
Expected reserve for surrender value		1,280,239		188,906
	W	4,918,355		3,638,116

iii) Guarantee reserve

In accordance with the Regulations on Supervision of Insurance Business, the Group is required to set aside a guarantee reserve at the reporting date in order to guarantee insurance proceeds and other payments not to less than a specified level. The guarantee reserve shall be accumulated after appropriation of reserve for surrender value and shall not be exceed the amount of retained earnings less reserve for surrender value.

Guarantee reserve as of December 31, 2025 and 2024 are as follows:

		2025		2024
Guarantee reserve	W	374,035		354,282
Expected guarantee reserve		33,300		19,753
	W	407,335		374,035

Voluntary reserves are accumulated from the time unappropriated deficits are settled when there are unappropriated deficits. If the voluntary reserve accumulated in previous periods exceeds the regulatory reserve for loan losses and guarantee reserve required to be accumulated as of the reporting date, the excess amount can be reversed.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

35. Share-based payment

As of December 31, 2025, share-based payment agreement of Shinhan Financial Group provided to the Group’s executives and employees are as follows:

(a) Performance-linked stock option

(*)		2022			2023		2024			2025
Type		Cash-settled share-based payment
Service period		4 years from the commencement date of the year to which the grant date belongs
Performance conditions		Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%)
Estimated vested amount<br><br>based on settlement date		70,575 shares		67,310 shares		62,532 shares			46,997 shares

(*) Based on the performance-related stock option, the standard stock price (the arithmetic average of the weighted average stock price for the past two months, the past one month, and the past one week from the day before the reference date) after 4 years since the date of grant is paid in cash. The fair value of the stock price is evaluated at the closing price of each reporting date.

(b) Share-based payment expenses

Share-based payment expenses calculated for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Performance-linked stock option	W	10,017		4,063

(c) Accrued expenses and intrinsic value

Accrued expenses and intrinsic value as of December 31, 2025 and 2024 are as follows:

		2025
		Accrued expenses		Intrinsic value (*1)
Performance-linked stock options (*2)	W	19,101		19,101

(*1) The intrinsic value for stock options vested at 2022 was calculated based on the stock price (W77,757) as of January 1, 2026, and the amount granted after that was calculated based on the closing price of the reporting date (W76,900).

(*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

		2024
		Accrued expenses		Intrinsic value (*1)
Performance-linked stock options (*2)	W	12,466		12,466

(*1) The intrinsic value for stock options vested at 2021 was calculated based on the stock price (W50,444) as of January 1, 2025, and the amount granted after that was calculated based on the closing price of the reporting date (W47,650).

(*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

36. Insurance revenue and insurance service expenses

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Insurance contracts under:				Insurance contracts after transition		Total
		Modified retrospective approach		Fair value approach
Insurance Revenue
Contracts not measured under the premium allocation approach:
Expected incurred claims and other<br><br>insurance service expenses	W	171,451		1,244,678		341,228		1,757,357
Change in risk adjustment		28,308		71,218		86,034		185,560
Contractual service margin recognized for<br><br>services provided		124,794		308,852		302,216		735,862
Recovery of insurance acquisition cash flows		86,572		1,217		329,390		417,179
Others (*)		(8,463)		(812)		(6,911)		(16,186)
		402,662		1,625,153		1,051,957		3,079,772
Contracts measured under the premium allocation approach		-		-		1,199		1,199
Total insurance revenue	W	402,662		1,625,153		1,053,156		3,080,971
Insurance service expenses
Contracts not measured under the premium allocation approach:
Incurred claims and other insurance service expenses	W	175,548		1,229,143		462,624		1,867,315
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(5,961)		(24,832)		3,024		(27,769)
Losses on onerous contracts and<br><br>reversal of such losses		(11,265)		(16,954)		94,628		66,409
Amortization of insurance acquisition cash flows		86,572		1,217		329,392		417,181
Experience adjustments to insurance acquisition<br><br>cash flows that are not related to future service		658		2,519		(12,636)		(9,459)
Others (*)		(8,464)		(750)		(6,900)		(16,114)
		237,088		1,190,343		870,132		2,297,563
Contracts measured under the premium allocation approach		-		-		2,189		2,189
Total insurance service expenses	W	237,088		1,190,343		872,321		2,299,752

(*) Others include allocation of loss components, etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

36. Insurance revenue and insurance service expenses (continued)

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Insurance contracts under:				Insurance contracts after transition		Total
		Modified retrospective approach		Fair value approach
Insurance Revenue
Contracts not measured under the premium allocation approach:
Expected incurred claims and other<br><br>insurance service expenses	W	189,976		1,265,227		199,352		1,654,555
Change in risk adjustment		21,723		61,570		46,923		130,216
Contractual service margin recognized for<br><br>services provided		158,398		331,569		242,914		732,881
Recovery of insurance acquisition cash flows		110,336		1,226		243,396		354,958
Others (*)		(10,883)		(424)		(4,433)		(15,740)
		469,550		1,659,168		728,152		2,856,870
Contracts measured under the premium allocation approach		-		-		445		445
Total insurance revenue	W	469,550		1,659,168		728,597		2,857,315
Insurance service expenses
Contracts not measured under the premium allocation approach:
Incurred claims and other insurance service expenses	W	195,923		1,230,537		243,910		1,670,370
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(2,686)		26,060		4,432		27,806
Losses on onerous contracts and<br><br>reversal of such losses		(11,216)		68,891		20,385		78,060
Amortization of insurance acquisition cash flows		110,336		1,226		243,397		354,959
Experience adjustments to insurance acquisition<br><br>cash flows that are not related to future service		328		2,141		(31,240)		(28,771)
Others (*)		(10,885)		(424)		(7,520)		(18,829)
		281,800		1,328,431		473,364		2,083,595
Contracts measured under the premium allocation approach		-		-		1,366		1,366
Total insurance service expenses	W	281,800		1,328,431		474,730		2,084,961

(*) Others include allocation of loss components, etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

37. Income or expenses from reinsurance contracts held

Income or expenses from reinsurance contracts held for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Reinsurance contracts under the fair value approach		Reinsurance contracts after transition		Total
Contracts not measured under the premium allocation approach:
Recovery of incurred claims and other insurance service expenses	W	108,510		76,158		184,668
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(32,864)		(1,561)		(34,425)
Recognition (reversals) of a loss-recovery component		409		15,019		15,428
Others (*)		(616)		(702)		(1,318)
Total reinsurance revenue	W	75,439		88,914		164,353
Contracts not measured under the premium allocation approach:
Expected claims and other reinsurance service expenses	W	37,115		39,416		76,531
Changes in risk adjustment		3,550		3,160		6,710
Contractual service margin recognized for services received		10,697		21,926		32,623
Experience adjustments for reinsurance premiums and<br><br>investment components not related to future service		17,815		17,972		35,787
Others (*)		(616)		(760)		(1,376)
Total reinsurance service expenses	W	68,561		81,714		150,275

(*) Others include allocation of loss recovery components, etc.

		2024
		Reinsurance contracts under the fair value approach		Reinsurance contracts after transition		Total
Contracts not measured under the premium allocation approach:
Recovery of incurred claims and other insurance service expenses	W	68,816		20,973		89,789
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(27,421)		(1,971)		(29,392)
Recognition (reversals) of a loss-recovery component		(10,318)		4,187		(6,131)
Others (*)		(1,053)		(250)		(1,303)
Total reinsurance revenue	W	30,024		22,939		52,963
Contracts not measured under the premium allocation approach:
Expected claims and other reinsurance service expenses	W	39,319		13,620		52,939
Changes in risk adjustment		2,858		1,063		3,921
Contractual service margin recognized for services received		(11,035)		10,814		(221)
Experience adjustments for reinsurance premiums and<br><br>investment components not related to future service		(1,252)		3,775		2,523
Others (*)		(1,053)		(266)		(1,319)
Total reinsurance service expenses	W	28,837		29,006		57,843

(*) Others include allocation of loss recovery components, etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

38. Insurance finance income (expenses)

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025
		General life		Variable		Retirement<br><br>(*3)		Total
Investment income (expenses):
Interest income (expenses)	W	1,390,379		61,034		(17,075)		1,434,338
Gain (loss) on valuation and transaction of financial instruments		179,736		1,372,126		16,135		1,567,997
Other investment income (expenses)		(127,402)		(1,294)		(1,358)		(130,054)
Investment income (expenses) recognized in other comprehensive income (*1)		(2,486,983)		-		(250)		(2,487,233)
		(1,044,270)		1,431,866		(2,548)		385,048
Finance income (expenses) from insurance contracts issued:
Interest income (expenses)		(1,518,722)		(1,271,590)		-		(2,790,312)
Effect of changes in interest rates and other financial assumptions		1,809,465		(39,084)		-		1,770,381
Foreign exchange income (expenses)		2,933		-		-		2,933
		293,676		(1,310,674)		-		(1,016,998)
Finance income (expenses) from insurance contracts recognized in profit or loss		(1,514,517)		(1,271,591)		-		(2,786,108)
Finance income (expenses) from insurance contracts recognized in other comprehensive income (*1)		1,808,193		(39,083)		-		1,769,110
Finance income (expenses) from reinsurance contracts held:
Interest income (expenses)		10,879		-		-		10,879
Effect of changes in interest rates and other financial assumptions		(211,718)		-		-		(211,718)
		(200,839)		-		-		(200,839)
Finance income (expenses) from reinsurance contracts recognized in profit or loss		10,879		-		-		10,879
Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (*1)		(211,718)		-		-		(211,718)
Total finance income (expenses) recognized in profit or loss (*2)		(60,925)		160,275		(2,298)		97,052
Total finance income (expenses) recognized in other comprehensive income (*2)		(890,508)		(39,083)		(250)		(929,841)
Total	W	(951,433)		121,192		(2,548)		(832,789)

(*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(*3) Retirement is a pension product classified as an investment contract liability.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

38. Insurance finance income (expenses) (continued)

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
			General life		Variable		Retirement<br><br>(*3)		Total
Investment income (expenses):
Interest income (expenses)	W		1,410,001		78,520		(20,269)		1,468,252
Gain (loss) on valuation and transaction of financial instruments			288,479		126,554		(6,624)		408,409
Other investment income (expenses)			(94,430)		(2,126)		(2,335)		(98,891)
Investment income (expenses) recognized in other comprehensive income (*1)			1,013,817		-		42,712		1,056,529
			2,617,867		202,948		13,484		2,834,299
Finance income (expenses) from insurance contracts issued:
Interest income (expenses)			(1,499,478)		(172,640)		-		(1,672,118)
Effect of changes in interest rates and other financial assumptions			(3,148,530)		(50,709)		-		(3,199,239)
Foreign exchange income (expenses)			(31,746)		-		-		(31,746)
			(4,679,754)		(223,349)		-		(4,903,103)
Finance income (expenses) from insurance contracts recognized in profit or loss			(1,532,860)		(172,640)		-		(1,705,500)
Finance income (expenses) from insurance contracts recognized in other comprehensive income (*1)			(3,146,894)		(50,709)		-		(3,197,603)
Finance income (expenses) from reinsurance contracts held:
Interest income (expenses)			56		-		-		56
Effect of changes in interest rates and other financial assumptions			(2,098)		-		-		(2,098)
			(2,042)		-		-		(2,042)
Finance income (expenses) from reinsurance contracts recognized in profit or loss			56		-		-		56
Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (*1)			(2,098)		-		-		(2,098)
Total finance income (expenses) recognized in profit or loss (*2)			71,246		30,308		(29,228)		72,326
Total finance income (expenses) recognized in other comprehensive income (*2)			(2,135,175)		(50,709)		42,712		(2,143,172)
Total	W		(2,063,929)		(20,401)		13,484		(2,070,846)

(*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(*3) Retirement is a pension product classified as an investment contract liability.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

38. Insurance finance income (expenses) (continued)

(b) Financial gains and losses recognized in profit or loss for the years ended December 31, 2025 and 2024 are divided into those related to changes in the fair value of the underlying assets of insurance contracts with direct participation characteristics and others as follows.

		2025
		FV change related		Others		Total
Investment income (expenses)	W	1,047,870		1,824,411		2,872,281
Finance income (expenses) from insurance contracts issued		(1,047,870)		(1,738,238)		(2,786,108)
Finance income (expenses) from reinsurance contracts held		-		10,880		10,880
	W	-		97,053		97,053
		2024
---	---	---	---	---	---	---	---
		FV change related		Others		Total
Investment income (expenses)	W	157,494		1,620,276		1,777,770
Finance income (expenses) from insurance contracts issued		(157,494)		(1,548,006)		(1,705,500)
Finance income (expenses) from reinsurance contracts held		-		56		56
	W	-		72,326		72,326

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

39. Operating expenses

Operating expenses by nature for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Claim adjustment expenses		Acquisition costs (*)		Maintenance<br><br>expenses		Investment management expenses		Other operating expenses		Total
Salaries	W	5,812		64,218		55,757		5,089		11,199		142,075
Bonus		1,570		19,438		18,946		1,660		2,917		44,531
Retirement benefits		558		6,212		5,098		482		12,854		25,204
Employee benefits		1,490		16,963		14,854		1,758		16,047		51,112
Amortization		196		29,940		21,486		373		794		52,789
Utilities		135		16,207		8,406		251		519		25,518
Commission		79		22,050		29,970		28,743		6,526		87,368
Taxes and dues		292		-		69,506		331		1		70,130
IT expenses		737		21,379		20,303		1,485		2,097		46,001
Proportional commission		-		1,186,027		-		-		17,744		1,203,771
Sales promotion expenses		-		629,092		-		-		5,074		634,166
Training expenses		-		18		-		-		6,531		6,549
Others		13,854		37,067		28,785		242		18,059		98,007
	W	24,723		2,048,611		273,111		40,414		100,362		2,487,221

(*) Acquisition costs are reflected as insurance acquisition cash flows.

		2024
		Claim adjustment expenses		Acquisition costs (*)		Maintenance<br><br>expenses		Investment management expenses		Other operating expenses		Total
Salaries	W	5,753		59,426		55,851		5,855		10,717		137,602
Bonus		1,750		20,696		20,822		1,908		4,031		49,207
Retirement benefits		507		4,756		4,701		1,200		23,319		34,483
Employee benefits		1,818		19,079		17,906		2,133		14,759		55,695
Amortization		176		27,353		21,365		381		(600)		48,675
Utilities		116		15,146		7,872		218		508		23,860
Commission		97		23,256		24,889		31,292		6,825		86,359
Taxes and dues		562		-		67,079		325		1		67,967
IT expenses		756		19,292		19,843		1,674		2,060		43,625
Proportional commission		-		957,335		-		-		17,486		974,821
Sales promotion expenses		-		397,263		-		-		4,222		401,485
Training expenses		-		-		-		-		6,124		6,124
Others		11,777		28,780		27,716		239		25,266		93,778
	W	23,312		1,572,382		268,044		45,225		114,718		2,023,681

(*) Acquisition costs are reflected as insurance acquisition cash flows.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

40. Investment administrative expenses

The investment administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Salaries	W	4,053		3,319
Bonus		1,319		1,118
Retirement benefits		686		1,389
Employment benefits		1,515		1,385
Communication expenses		70		83
Fees		11,780		9,825
Taxes and dues		384		619
Others		2,316		1,911
	W	22,123		19,649

41. Net interest income

(a) Interest income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Interest income on:
Deposits at amortized cost	W	62,510		62,867
Deposits at fair value through profit or loss		1,305		133
Securities at fair value through profit or loss		82,581		96,013
Securities at fair value through other comprehensive income		1,122,331		1,109,758
Securities at amortized cost		117,388		129,179
Loans at amortized cost		111,719		145,331
Others		3,906		3,697
	W	1,501,740		1,546,978

(b) Interest expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Interest expenses on:
Bonds issued	W	25,686		15,761
Lease liabilities		2,553		2,938
Others		39,164		60,027
	W	67,403		78,726

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

42. Provision for (reversal of) credit loss allowance

Provision for (reversal of) credit loss allowance for the years ended December 31, 2025 and 2024 are as follows:

				2025		2024
Provisions (Reversal)		Securities at fair value through other comprehensive income	W	(1,049)		(1,257)
		Securities at amortized costs		7		43
		Loans at amortized costs		4,734		7,410
		Receivables at amortized costs (*)		643		1,636
		Allowance for unused credit commitments		525		(1,601)
			W	4,860		6,231

(*) It includes provision for (reversal of) credit loss allowance of due from banks at amortized cost.

43. Gain and losses on foreign exchange transactions

Foreign exchange transaction income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Gain on foreign exchange transactions:
Foreign transactions	W	21,374		69,316
Translations		246,463		645,604
		267,837		714,920
Loss on foreign exchange transactions:
Foreign transactions		32,468		12,326
Translations		112,772		171
		145,240		12,497
	W	122,597		702,423

44. Fees and commission income

Fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Credit related fees	W	560		2,689
Loan commissions		7,217		7,198
Retirement pension management fee		1,515		2,238
Other fees and commissions in won		177		148
	W	9,469		12,273

45. Dividend income

Dividend income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Financial assets at fair value through profit or loss	W	32,023		28,111
Securities at fair value through other comprehensive income		5,751		4,399
	W	37,774		32,510

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

46. Other investment income or expenses

(a) Other investment income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Rental income	W	1,020		868
Others		253,230		234,202
	W	254,250		235,070

(b) Other investment expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Amortization expense on intangible assets	W	76,930		75,039
Depreciation expense on investment properties		212		212
Others		294,506		251,332
	W	371,648		326,583

47. Non-operating income or expenses

		2025		2024
Non-operating income:
Gain on cancellation of right-of-use asset	W	963		552
Gain on disposal of property and equipment		60		35
Miscellaneous gains		8,505		9,486
	W	9,528		10,073
Non-operating expenses:
Loss on cancellation of right-of-use asset		704		218
Loss on disposal of property and equipment		474		693
Impairment of property and equipment		924		1,703
Impairment of intangible assets		2		167
Donations		7,020		7,977
Miscellaneous loss		1,850		2,062
		10,974		12,820
	W	(1,446)		(2,747)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

48. Income tax expense

(a) Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Current income tax expense	W	121,299		16,092
Adjustment for prior periods		(9,010)		(11,728)
Temporary differences		(112,220)		(377,990)
Deferred tax recognized in other comprehensive income		280,130		566,653
Income tax recognized in other comprehensive income		207		14
Income tax expenses	W	280,406		193,041
Effective tax rate		35.58%		26.76%

(b) Reconciliation of net income before tax to income tax expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Net profit before income taxes	W	788,114		721,442
Income taxes at statutory tax rates		208,062		190,461
Adjustments:
Non-taxable income		(3,924)		(6,038)
Non-deductible expense		1,463		4,947
Tax rate difference		(10,362)		(3,036)
Effect of consolidated tax payment		2,663		(1,463)
Effect of changes in tax rates		79,051		-
Others		3,453		8,170
		72,344		2,580
Income tax expense	W	280,406		193,041
Effective tax rate		35.58%		26.76%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

48. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning<br><br>Balance		Profit or loss		Other comprehen-sive income		Hybrid bonds		Equity adjustment		Ending<br><br>Balance
Deposits in foreign currency	W	(76)		(222)		-		-		-		(298)
Financial assets at fair value through profit or loss		(30,630)		(17,230)		-		-		-		(47,860)
Securities at fair value through other comprehensive income		(231,609)		(84,495)		596,845		-		-		280,741
Securities at amortized costs		(30,200)		(6,326)		-		-		-		(36,526)
Investments in associates		2,803		117		-		-		-		2,920
Derivative instruments		103,259		16,810		112,803		-		-		232,872
Accrued income		(163,425)		(29,357)		-		-		-		(192,782)
Evaluation cost of initial investment fund		101		4		-		-		-		105
Deemed dividend		7,750		(34)		-		-		-		7,716
Dividend receivables		119		5		-		-		-		124
Other liabilities		(219)		539		-		-		-		320
Provisions		101		148		-		-		-		249
Dividend cost recovery		24,350		(2,757)		-		-		-		21,593
Taxation of partnership		1,696		976		-		-		-		2,672
Reserve for outstanding claims for matured contracts		10,356		(1,510)		-		-		-		8,846
Property and equipment, intangible assets		7,858		1,107		-		-		-		8,965
Other accrued expense		29,605		(4,297)		-		-		-		25,308
Loan origination cost (fees)		(207)		1,160		-		-		-		953
Share-based payment		3,291		1,984		-		-		(22)		5,253
Defined benefit obligations		(1,554)		(2,316)		1,186		-		-		(2,684)
Vehicles for business use (depreciation adjustment)		39		(2)		-		-		-		37
Accrued interests (deposit)		(3)		(2)		-		-		-		(5)
Right-of-use assets		34		(26)		-		-		-		8
Uncollected commission clawbacks		12		-		-		-		-		12
Loans		1,719		72		-		-		-		1,791
Deficit carried forward		5,537		(3,332)		-		-		-		2,205
Hybrid bonds		199		8		-		(208)		-		(1)
Legal provision		93		(11)		-		-		-		82
Effect of change in discount rate under K-IFRS 1117		(82,277)		(295)		(431,589)		-		-		(514,161)
Surrender Value Reserve		(922,842)		(38,452)		-		-		-		(961,294)
Others		(2,890)		(177)		1,115		-		-		(1,952)
	W	(1,267,010)		(167,911)		280,360		(208)		(22)		(1,154,791)

(*1) During the year ended December 31, 2025, the corporate income tax rate and the local income tax rate were revised as a result of amendments to the Corporate Tax Act and the Corporate Local Income Tax Act. Accordingly, deferred tax assets and liabilities expected to be realized after 2025 were measured using a tax rate of 27.5%.

(*2) The Group is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

48. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Beginning<br><br>Balance		Profit or loss		Other comprehensive income		Equity adjustment		Ending<br><br>Balance
Deposits in foreign currency	W	(203)		127		-		-		(76)
Financial assets at fair value through profit or loss		(8,314)		(22,317)		-		-		(30,631)
Securities at fair value through other comprehensive income		167,212		(136,679)		(262,141)		-		(231,608)
Securities at amortized costs		(8,452)		(21,748)		-		-		(30,200)
Investments in associates		2,803		-		-		-		2,803
Derivative instruments		35,243		85,703		(17,687)		-		103,259
Accrued income		(139,749)		(23,676)		-		-		(163,425)
Evaluation cost of initial investment fund		-		101		-		-		101
Deemed dividend		8,535		(785)		-		-		7,750
Dividend receivables		119		-		-		-		119
Other liabilities		726		(945)		-		-		(219)
Provisions		290		(188)		-		-		102
Dividend cost recovery		22,821		1,529		-		-		24,350
Taxation of partnership		1,113		583		-		-		1,696
Reserve for outstanding claims for matured contracts		11,445		(1,089)		-		-		10,356
Property and equipment, intangible assets		9,017		(1,159)		-		-		7,858
Other accrued expense		26,626		2,979		-		-		29,605
Loan origination cost (fees)		51		(258)		-		-		(207)
Share-based payment		2,667		(13)		637		-		3,291
Defined benefit obligations		(9,043)		3,577		3,912		-		(1,554)
Vehicles for business use (depreciation adjustment)		30		9		-		-		39
Accrued interests (deposit)		-		(3)		-		-		(3)
Right-of-use assets		(363)		396		-		-		33
Uncollected commission clawbacks		12		-		-		-		12
Government subsidies		1		(1)		-		-		-
Loans		1,719		-		-		-		1,719
Deficit carried forward		10,483		(4,946)		-		-		5,537
Hybrid bonds		199		-		-		-		199
Legal provision		214		(121)		-		-		93
Effect of change in discount rate under K-IFRS 1117		(927,418)		432		844,709		-		(82,277)
Surrender Value Reserve		(839,355)		(83,487)		-		-		(922,842)
Others		(13,429)		13,141		(2,602)		-		(2,890)
	W	(1,645,000)		(188,838)		566,828		-		(1,267,010)

(*) The Group is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

48. Income tax expense (continued)

(d) As of December 31, 2025 and 2024, deferred income tax related to items recognized other than in profit or loss for the years are as follows:

		January 1, 2025				Changes				December 31, 2025
		Amount		Tax effect		Amount		Tax effect		Amount		Tax effect
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(2,399,745)		633,533		(2,074,355)		596,845		(4,474,100)		1,230,378
Insurance and reinsurance finance income (expenses)		312,976		(82,641)		1,557,528		(431,589)		1,870,504		(514,230)
Remeasurement of defined benefit liabilities		(39,438)		10,412		(2,737)		1,186		(42,175)		11,598
Stock options		1,985		(524)		-		(22)		1,985		(546)
Gains (losses) on valuation of derivatives for cash flow hedge		122,934		(32,253)		(412,878)		112,803		(289,944)		80,550
Hybrid bonds		(755)		208		755		(208)		-		-
Gains and losses from translation of foreign operations		19,426		(5,129)		(4,831)		1,116		14,595		(4,013)
	W	(1,982,617)		523,606		(936,518)		280,131		(2,919,135)		803,737
		January 1, 2024				Changes				December 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---
		Amount		Tax effect		Amount		Tax effect		Amount		Tax effect
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(3,393,368)		895,850		993,623		(262,317)		(2,399,745)		633,533
Insurance and reinsurance finance income (expenses)		3,512,690		(927,350)		(3,199,714)		844,709		312,976		(82,641)
Remeasurement of defined benefit liabilities		(22,206)		5,862		(17,232)		4,550		(39,438)		10,412
Stock options		1,985		(524)		-		-		1,985		(524)
Gains (losses) on valuation of derivatives for cash flow hedge		60,028		(14,566)		62,906		(17,687)		122,934		(32,253)
Hybrid bonds		(755)		208		-		-		(755)		208
Gains and losses from translation of foreign operations		9,570		(2,527)		9,856		(2,602)		19,426		(5,129)
	W	167,944		(43,047)		(2,150,561)		566,653		(1,982,617)		523,606

(e) Current tax assets and liabilities

Current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Current tax assets
Income tax receivables (refund of consolidated tax payment)	W	6,531		82,811
Current tax liabilities
Income tax payables	W	(14,029)		(4,248)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

48. Income tax expense (continued)

(f) Income taxes based on gross amount

Deferred tax assets and liabilities and current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Deferred tax assets	W	602,772		198,923
Deferred tax liabilities		(1,757,563)		(1,465,933)
Current tax assets		6,531		82,811
Current tax liabilities		(14,029)		(4,248)

(g) Global Anti-Base Erosion (GloBE) Rules

Following the enactment of legislation related to the Global Anti-Base Erosion (GloBE) Rules, the Group is obligated to pay a top-up tax equal to the difference between the effective tax rate and the minimum rate of 15% in each jurisdiction in which its constituent entities are located, to the extent that the jurisdictional effective tax rate falls below 15%. The Group has assessed the impact of the GloBE rules in accordance with the relevant legislation and has determined that no significant amount of top-up tax is expected to arise, as most constituent entities meet the transitional safe harbor requirements or have effective tax rates exceeding 15%.

Income tax expense related to the GloBE rules is subject to estimation uncertainty due to potential variability arising from various factors, including tax incentives received by permanent establishments and adjustments to accounting net profit or loss required under the legislation for the calculation of GloBE income in subsequent periods. In addition, the Group applies the temporary exception to the recognition and disclosure of deferred tax assets and liabilities under K-IFRS 1012, and therefore does not recognize deferred tax assets or liabilities related to the GloBE rules, nor does it disclose information related thereto.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Contingencies and commitments

(a) Insurance agreement

As of December 31, 2025, the total number and amount of insurance contracts held by the Group are 7,022,070 contracts and W180,067,900 million, respectively (6,905,100 contracts and W182,596,053 million, respectively for the year ended December 31, 2024).

(b) Reinsurance agreements

As of December 31, 2025, the Group held reinsurance contracts with 10 domestic and global reinsurance companies, including Korean Reinsurance Company and Reinsurance Group of America Incorporated ("RGA") for insurance contracts that cover cancer, cerebrovascular and heart disease (DP), critical illness (CI), death and disaster, and dementia. For life insurance contracts, the Group held coinsurance contracts with Korean Reinsurance Co., Ltd., Swiss Reinsurance Co. (“Swiss Re”), and RGA, which proportionally reinsures insurance risks and interest rate risks.

(c) Pending litigations

As of December 31, 2025, the Group has 93 pending litigations (Total claim amounts of W10,350 million). Among these, provisions related to the litigation were accounted for W300 million, and liabilities for incurred claims related to insurance claims were accounted for W5,732 million. As of December 31, 2025, the result of litigation is unpredictable.

(d) Bank overdraft agreement

As of December 31, 2025, the Group has bank overdraft agreements with Shinhan Bank. The limit on bank overdraft is W 100,000 million (W 100,000 million as of December 31, 2024).

(e) Unused credit provided and capital commitments

As of December 31, 2025, the Group's unused credit provided and capital commitments amounted to W373,782 million and W1,316,609 million, respectively (W164,307 million and W1,374,078 million, respectively as of December 31, 2024).

(f) Other commitments

As of December 31, 2025 and 2024, the details of payment guarantee are as follows:

Guarantee provider		2025		2024		Type of guarantee
Seoul Guarantee Insurance Co., Ltd.	W	1,851		2,281		Guarantee deposit etc.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

50. Related parties

(a) Related parties as of December 31, 2025 are as follows:

The parent company		Shinhan Financial Group
Entities under common control		Shinhan Bank Co., Ltd.
		Shinhan Securities Co., Ltd.
		Shinhan Card Co., Ltd.
		Jeju Bank
		Shinhan DS
		Shinhan Asset Management Co., Ltd.
		Shinhan Capital Co., Ltd.
		Shinhan Savings Bank
		Shinhan Fund Partners
		SHC Management Co., Ltd.
		Shinhan REITs Management Co., Ltd.
		Shinhan Asset Trust Co., Ltd.
		Shinhan Venture Investment Co., Ltd.
		Shinhan EZ General Insurance, Ltd.
		SHBNPP Green Energy Private Special Asset Investment Trust
		SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust
		SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust
		SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2
		SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1
		SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4
		SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5
		SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust
		Shinhan AIM Social Enterprise Investment Fund I
		Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

50. Related parties (continued)

(a) Related parties as of December 31, 2025 are as follows: (continued)

Entities under common control (continued)		One Shinhan Futures Fund 1
		SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2
		SHBNPP Global Professional Investment Type Private Investment Trust No.12
		Shinhan AIM Private Real Estate Investment Trust No.15
		Shinhan AIM FoF Fund 4
		Shinhan AIM Social Enterprise Investment Fund II
		SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4
		Shinhan AIM Private Real Estate Investment Trust No.13
		Shinhan AIM FoF Fund 6-A
		SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust
		SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3
		One Shinhan Futures Fund 2
		SH BNPP Startup Venture Alpha Specialized Investment Private Equity Mixed Asset Trust No.1
		SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1
		Shinhan AIM Investment Finance Specialized Investment Trust No. 1
		Shinhan AIM Social Enterprise Investment Fund III
		SH Startup Venture Specialized Investment Private Equity Trust No.4
		SH Green New Deal Energy Special Asset Private Investment Trust No.3
		Shinhan AIM Private Real Estate Investment Trust No.22-A
		One Shinhan Connect New Technology Investment Fund 1
		Shinhan Global Green Energy Partnership Private Investment Trust No.1
		SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd
		One Shinhan Futures Fund 3
		SH Startup Venture Private Equity Trust No.5
		Shinhan Greenway Corporate Investment FUND NO.1
		One Shinhan Connect New Technology Investment Fund 2
		Shinhan global flagship venture fund 1
		SH BGT Private Special Asset Investment Trust No.2

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

50. Related parties (continued)

(a) Related parties as of December 31, 2025 are as follows: (continued)

Entities under common control (continued)		Shinhan AIM Credit 4-B_Clover2
		SH Venture Private Investment Trust No.6
		Shinhan One Flagship Real Estate Development Fund 1
		Shinhan hyper connect venture fund Ι
		Shinhan hyper future’s venture fund 1
		SH Special Situation Private Real Estate Feeder Investment Trust No.1
		Shinhan CIS III Private Investment Trust No.1
		SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)
		SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 (*)
		Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) (*)
		Shinhan SLAMS Co-Investment Private Investment Trust No.1 (*)
Associates		iPIXEL Co., Ltd.
		Findvalue JD Fund No.1
		IGIS Private Real Estate Investment Trust 517-1
		IGIS Private Real Estate Investment Trust 562-1 (*)
Associates of entities under common control		SBC PFV Co., Ltd
		Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37
		LB Scotland Amazon Fulfillment Center Fund 29
		SHINHAN-NEO Core Industrial Technology Fund
		SHINHAN-NEO Market-Frontier 2nd Fund
		SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2
		Macquarie Korea Opportunities Fund(MKOF)
		SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust
		Shinhan AIM Private Real Estate Investment Trust No.1
		Shinhan AIM Private Real Estate Investment Trust No.2
		SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]
		PCC Amberstone Private Equity Fund I
		KIAMCO POWERLOAN TRUST 4TH
		SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2
		Shinhan JigaeNamsan Road Private Special Asset Investment Trust
		SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.
		Shinhan AIM Private Fund of Fund 9-B
		Songpa Biz-Cluster PFV Co.,Ltd.
		Finflow (*)
Others		Shinhan Life Shining Foundation

(*) It was newly included as a related party during the year ended December 31, 2025.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows:

Related party			Account		2025		2024
The parent company
Shinhan Financial Group		Securities at fair value through other comprehensive income		W	-		29,898
		Accrued income			-		167
		Credit loss allowance			-		(13)
		Current tax assets			6,460		82,482
		Current tax liabilities			14,029		4,245
		Accrued expenses			19,101		12,466
Entities under common control
Shinhan Bank		Cash and due from banks at amortized cost			95,833		115,008
		Financial assets at fair value through profit or loss (*1)			41,395		37,234
		Lease deposits paid			4,856		4,536
		Right-of-use assets			10,194		3,160
		Accrued income			315		134
		Credit loss allowance			(25)		(20)
		Derivative assets			4,399		1,425
		Derivative liabilities			154,275		128,182
		Lease liabilities			10,234		3,452
		Accrued expenses			1,563		115
		Investment contract liabilities (*2)			5,290		144,698
Shinhan Securities Co., Ltd.		Cash and due from banks at amortized cost			108,942		24,231
		Account receivables			3,973		1,391
		Accrued income			2		2
		Derivative assets			5,074		25,593
		Derivative liabilities			49,509		25,798
		Borrowings (*3)			29,890		22,386
		Accrued expenses			5,840		2,238
Shinhan Card Co., Ltd.		Cash and due from banks at amortized cost			5,460		11,540
		Account receivables			1,818		1,936
		Accrued income			6,011		6,564
		Credit loss allowance			(168)		(424)
		Accrued expenses			4,572		4,220
		Investment contract liabilities (*2)			-		8,409
Jeju Bank		Cash and due from banks at amortized cost			102		86
		Investment contract liabilities (*2)			-		14,339
Shinhan DS		Accrued expenses			340		734
Shinhan Asset Management Co., Ltd.		Financial assets at fair value through profit or loss (*1)			95		8,754
		Accrued expenses			886		831
Shinhan Venture Investment Co., Ltd.		Financial assets at fair value through profit or loss (*1)			99		-
Shinhan Capital Co., Ltd.		Borrowings (*3)			212		202
Shinhan Fund Partners		Accrued expenses			216		220

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows: (continued)

Related party		Account		2025		2024
Associates of entities under common control
SBC PFV Co., Ltd		Loans	W	78,300		-
		Accrued income		28		-
		Credit loss allowance		(673)		-
		Unused credit commitments		599		-
Total assets			W	372,490		353,684
Total liabilities			W	296,556		372,535

(*1) It is a financial instrument related to consolidated structured entities of related parties.

(*2) It is policyholders’ reserve for retirement pension contracts.

(*3) It is non-controlling interests classified as liabilities for the consolidated structured entities.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows:

Related party		Account			2025			2024
The parent company
Shinhan Financial Group		Interest income	W	92			870
		Provision for (reversal of) credit loss allowance		(13)			(2)
		Commissions paid, etc.		4,879			4,879
Entities under common control
Shinhan Bank		Interest income		2,191			3,437
		Fee and commission income		8			6
		Gains related to derivatives		29,505			926
		Other income		-			88
		Insurance contract commissions		16,084			9,002
		Interest expense		468			90
		Provision for (reversal of) credit loss allowance		5			(119)
		Losses related to derivatives		36,005			160,292
		Commissions paid, etc.		6,190			4,847
		Distribution income (*1)		151			159
		Other expense		80			-
Shinhan Securities Co., Ltd.		Interest income		182			224
		Fees and commission income		9			9
		Gains related to derivatives		3,183			771
		Losses related to derivatives		6,010			17,821
		Commissions paid, etc.		1,135			1,448
		Other expense (*2)		1,513			1,790
Shinhan Card Co., Ltd.		Interest income		584			1,351
		Fees and commission income		45			76
		Other income		5,145			4,804
		Insurance contract commissions		15,712			16,566
		Provision for (reversal of) credit loss allowance		(236)			(320)
		Commissions paid, etc.		5,235			4,710
Jeju Bank		Insurance contract commissions		3			9
		Commissions paid, etc.		12			13
Shinhan DS		Commissions paid, etc.		29,126			27,671
Shinhan Asset Management Co., Ltd.		Distribution income (*1)		88			1,986
		Commissions paid, etc.		11,340			10,086
Shinhan Capital Co., Ltd.		Other expense (*2)		10			(94)
Shinhan Savings Bank		Fees and commission income		5			20
		Commissions paid, etc.		35			-
Shinhan Venture Investment Co., Ltd.		Commissions paid, etc.		85			102
Shinhan Fund Partners		Commissions paid, etc.		858			937
Shinhan EZ General Insurance, Ltd.		Fees and commission income		5			-
		Commissions paid, etc.		7			-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

Related party		Account		2025		2024
Entities under common control (continued)
SHBNPP Green Energy Private Special Asset Investment Trust		Distribution income	W	826		1,031
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		Distribution income		1,363		1,446
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		Distribution income		1,096		1,098
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		556		636
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		182		189
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		Distribution income		2,305		2,943
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		Distribution income		1,700		1,875
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		Distribution income		2,458		2,376
SHBNPP Global Professional Investment Type Private Investment Trust No.12		Distribution income		285		400
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		Distribution income		1,249		3,758
Shinhan AIM FoF Fund 6-A		Distribution income		36		671
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		Distribution income		1,170		1,205
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		768		760
Shinhan AIM Investment Finance Specialized Investment Trust No. 1		Distribution income		182		354
SH Green New Deal Energy Special Asset Private Investment Trust No.3		Distribution income		1,550		1,896
Shinhan AIM Private Real Estate Investment Trust No.22-A		Distribution income		4,454		3,641
SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd		Distribution income		-		48
Shinhan Global Green Energy Partnership Private Investment Trust No.1		Distribution income		90		-
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		Distribution income		740		968
Shinhan AIM Credit 4-B_Clover2		Distribution income		2,711		4,979
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		Distribution income		622		604
IMM Long-term Solutions Private Equity Fund (*3)		Distribution income		-		22,054
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		Distribution income		684		236
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		Distribution income		126		122
Shinhan One Flagship Real Estate Development Fund 1		Distribution income		1,122		304
Shinhan CIS III Private Investment Trust No.1		Distribution income		-		1,530
Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW)		Distribution income		39		-
Shinhan AIM Social Enterprise Investment Fund II		Distribution income		2		-
SH BGT Private Special Asset Investment Trust No.2		Distribution income		248		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

Related party		Account		2025		2024
Associates of entities under common control
Midas Asset Global CRE Debt Private Fund No.6 (*3)		Distribution income	W	-		1,967
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 (*3)		Distribution income		-		85
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (*3)		Distribution income		-		445
PCC Amberstone Private Equity Fund I		Distribution income		321		692
KIAMCO POWERLOAN TRUST 4TH		Distribution income		1,540		1,554
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		839		903
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		Distribution income		168		212
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		Distribution income		364		168
Shinhan AIM Private Fund of Fund 9-B		Distribution income		969		61
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		Distribution income		535		1,937
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		Distribution income		30		67
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		Distribution income		62		72
SHINHAN-NEO Core Industrial Technology Fund		Distribution income		-		53
Finflow		Other income (*4)		541		-
SBC PFV Co., Ltd		Interest income		2,582		3,281
		Provision for (reversal of) credit loss allowance		673		(59)
		Provision for unused credit commitments		599		-
Others
Shinhan Life Shining Foundation		Rental income		31		56
		Donations		31		2,546
Total income			W	75,739		81,404
Total expense			W	135,846		262,215

(*1) It is investment gains and losses from consolidated structured entities of the related party.

(*2) They are transactions related to non-controlling interests of consolidated structured entities.

(*3) It has been removed from the related parties during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

(*4) Shares of Finflow were acquired through a contribution in kind during the year ended December 31, 2025, and a disposal gain of W541 million arising from the contribution in kind was included in non-operating income.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
The parent company
Shinhan Financial Group	W	-		-		-		-		-		-		378,307
Entities under common control
Shinhan Bank Co., Ltd. (*1)(*2)		-		1,867		-		-		4,972		-		-
Shinhan Securities Co., Ltd. (*3)		7,161		50		-		-		-		-		1,133
Shinhan Asset Management Co., Ltd.		-		-		-		-		88		8,780		-
Shinhan Venture Investment Co., Ltd.		-		-		-		-		99		-		-
SHBNPP Green Energy Private Special Asset Investment Trust		-		-		-		-		-		1,247		-
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		-		-		-		-		-		1,793		-
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,759		-
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		344		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		-		-		-		-		6,291		976		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		-		-		-		-		191		-		-
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		-		-		-		-		2,095		-		-
Shinhan AIM Social Enterprise Investment Fund I		-		-		-		-		11		-		-
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		-		-		-		-		560		-		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		-		-		-		-		-		2,216		-
SHBNPP Global Professional Investment Type Private Investment Trust No.12		-		-		-		-		4,545		3,303		-
Shinhan AIM Private Real Estate Investment Trust No.15		-		-		-		-		652		-		-
Shinhan AIM FoF Fund 4		-		-		-		-		793		-		-
Shinhan AIM Social Enterprise Investment Fund II		-		-		-		-		31		430		-
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		-		-		-		-		-		2,040		-
Shinhan AIM Private Real Estate Investment Trust No.13		-		-		-		-		-		1,472		-
Shinhan AIM FoF Fund 6-A		-		-		-		-		11,347		32		-
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		-		-		-		-		2,294		381		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		-		-		-		-		2,902		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		1,328		-
Shinhan AIM Social Enterprise Investment Fund III		-		-		-		-		135		-		-
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		-		-		-		-		3,343		-
SH Green New Deal Energy Special Asset Private Investment Trust No.3		-		-		-		-		559		1,232		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2025
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Entities under common control (continued)
Shinhan AIM Private Real Estate Investment Trust No.22-A	W	-		-		-		-		13,033		547		-
One Shinhan Connect New Technology Investment Fund 1		-		-		-		-		300		1,800		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		-		-		-		172		-		-
SH Startup Venture Private Equity Trust No.5		-		-		-		-		2,000		871		-
Shinhan Greenway Corporate Investment FUND NO.1		-		-		-		-		260		-		-
One Shinhan Connect New Technology Investment Fund 2		-		-		-		-		80		-		-
Shinhan global flagship venture fund 1		-		-		-		-		5,200		-		-
SH BGT Private Special Asset Investment Trust No.2		-		-		-		-		1,705		-		-
Shinhan AIM Credit 4-B_Clover2		-		-		-		-		2,041		894		-
SH Venture Private Investment Trust No.6		-		-		-		-		6,000		-		-
Shinhan One Flagship Real Estate Development Fund 1		-		-		-		-		-		3,190		-
Shinhan hyper connect venture fund Ι		-		-		-		-		7,200		524		-
Shinhan hyper future’s venture fund 1		-		-		-		-		211		-		-
SH Special Situation Private Real Estate Feeder Investment Trust No.1		-		-		-		-		1,277		-		-
Shinhan CIS III Private Investment Trust No.1		-		-		-		-		7,679		-		-
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		-		-		-		-		-		1,754		-
SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1		-		-		-		-		12,448		-		-
Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW)		-		-		-		-		4,727		686		-
Shinhan SLAMS Co-Investment Private Investment Trust No.1		-		-		-		-		16,757		-		-
		7,161		1,917		-		-		115,753		43,844		1,133
Associate
IGIS Private Real Estate Investment Trust 517-1		-		-		-		-		1,440		-		-
IGIS Private Real Estate Investment Trust 562-1		-		-		-		-		13,000		-		-
		-		-		-		-		14,440		-		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2025
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Associates of entities under common control
SBC PFV Co., Ltd	W	-		-		78,300		-		-		-		-
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		-		-		-		-		3,297		3,611		-
LB Scotland Amazon Fulfillment Center Fund 29		-		-		-		-		4,258		-		-
SHINHAN-NEO Market-Frontier 2nd Fund		-		-		-		-		-		423		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		-		-		-		-		-		797		-
SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		-		-		-		-		2		-		-
Shinhan AIM Private Real Estate Investment Trust No.2		-		-		-		-		-		1,219		-
PCC Amberstone Private Equity Fund I		-		-		-		-		-		3,800		-
KIAMCO POWERLOAN TRUST 4TH		-		-		-		-		-		326		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,683		-
Shinhan AIM Private Fund of Fund 9-B		-		-		-		-		4,338		-		-
Finflow (*4)		-		-		-		-		1,499		-		-
		-		-		78,300		-		13,394		11,859		-
	W	7,161		1,917		78,300		-		143,587		55,703		379,440

(*1) Interest expense of W468 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2025.

(*2) Fund transactions related to consolidated structured entities of related parties are included.

(*3) Increase or decrease in non-controlling interests classified as liabilities related to consolidated structured entities are included.

(*4) Acquisition through contributions in kind is included.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
The parent company
Shinhan Financial Group	W	-		-						-		-		315,342
Entities under common control
Shinhan Bank Co., Ltd. (*1)(*2)		-		786		-		-		538		-		-
Shinhan Securities Co., Ltd. (*3)		5,950		1,364		-		-		-		-		544
Shinhan Asset Management Co., Ltd.		-		-		-		-		152		5,640
Shinhan Capital Co., Ltd.		-		166		-		-		-		-		-
SHBNPP Green Energy Private Special Asset Investment Trust		-		-		-		-		-		1,212		-
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		-		-		-		-		-		1,726		-
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,697		-
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		338		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		-		-		-		-		5,340		1,000		-
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		-		-		-		-		2,896		-		-
Shinhan AIM Social Enterprise Investment Fund I										-		22
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		-		-		-		-		-		3,207		-
SHBNPP Global Professional Investment Type Private Investment Trust No.12		-		-		-		-		873		-		-
Shinhan AIM Private Real Estate Investment Trust No.15		-		-		-		-		783		290		-
Shinhan AIM FoF Fund 4		-		-		-		-		3,595		247		-
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		-		-		-		-		2,453		-		-
One Shinhan Futures Fund 1		-		-		-		-		-		72		-
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		-		-		-		-		1,884		15,272		-
Shinhan AIM FoF Fund 6-A		-		-		-		-		11,528		259		-
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		-		-		-		-		1,239		118		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		-		-		-		1,000		2,235		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		1,280		-
Shinhan AIM Investment Finance Specialized Investment Trust No. 1		-		-		-		-		-		3,613		-
Shinhan AIM Social Enterprise Investment Fund III		-		-		-		-		60		-		-
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		-		-		-		4,000		-		-
SH Green New Deal Energy Special Asset Private Investment Trust No.3		-		-		-		-		3,241		275		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Entities under common control
Shinhan AIM Private Real Estate Investment Trust No.22-A	W	-		-		-		-		16,264		-		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		-		-		-		378		-		-
SH Startup Venture Private Equity Trust No.5		-		-		-		-		4,000		-		-
Shinhan Greenway Corporate Investment FUND NO.1		-		-		-		-		1,200		817		-
Shinhan global flagship venture fund 1		-		-		-		-		5,200		-		-
SH BGT Private Special Asset Investment Trust No.2		-		-		-		-		2,524		-		-
Shinhan AIM Credit 4-B_Clover2		-		-		-		-		2,644		23,374		-
SH Venture Private Investment Trust No.6		-		-		-		-		4,000		-		-
Shinhan One Flagship Real Estate Development Fund 1										8,000		-
Shinhan hyper connect venture fund Ι		-		-		-		-		7,200		-		-
Shinhan hyper future’s venture fund 1		-		-		-		-		564		-		-
SH Special Situation Private Real Estate Feeder Investment Trust No.1		-		-		-		-		4,064		-		-
Shinhan CIS III Private Investment Trust No.1		-		-		-		-		10,725		4,073		-
IMM Long-term Solution Private Equity Fund		-		-		-		-		-		34,981		-
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		-		-		-		-		30,000		-		-
		5,950		2,316		-		-		136,345		101,748		544
Associate
IGIS Private Real Estate Investment Trust 517-1		-		-		-		-		2,400		-		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Associates of entities under common control
SBC PFV Co., Ltd	W	-		-		95,000		95,000		1,575		-		-
Midas Asset Global CRE Debt Private Fund No.6(*4)		-		-		-		-		-		27,055		-
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		-		-		-		-		1,271		399		-
LB Scotland Amazon Fulfillment Center Fund 29		-		-		-		-		2,535		-		-
SHINHAN-NEO Core Industrial Technology Fund		-		-		-		-		-		1,068		-
SHINHAN-NEO Market-Frontier 2nd Fund		-		-		-		-		450		1,026		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		-		-		-		-		-		2,238		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		-		-		-		-		-		197		-
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24(*4)		-		-		-		-		-		12,194		-
Shinhan AIM Private Real Estate Investment Trust No.1		-		-		-		-		2,613		-		-
Shinhan AIM Private Real Estate Investment Trust No.2		-		-		-		-		1,760		-		-
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		-		-		-		-		-		38		-
PCC Amberstone Private Equity Fund I		-		-		-		-		247		2,712		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,635		-
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		-		-		-		-		3,516		-		-
Shinhan AIM Private Fund of Fund 9-B		-		-		-		-		6,562		-		-
Songpa Biz-Cluster PFV Co.,Ltd.		-		-		-		-		2,500		-		-
		-		-		95,000		95,000		23,029		48,562		-
	W	5,950		2,316		95,000		95,000		161,774		150,310		315,886

(*1) Interest expense of W90 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2024.

(*2) Fund transactions related to consolidated structured entities of related parties are included.

(*3) Increase or decrease in non-controlling interests classified as liabilities related to consolidated structured entities are included.

(*4) It has been removed from the related party during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(e) Unused capital commitments and loan commitment with related parties as of December 31, 2025 and 2024 are as follows:

Related Party			Commitment		2025			2024
	Entities under common control
	Shinhan Bank Co., Ltd. (*)		Capital commitment	W	871			6,458
	Shinhan Venture Investment Co., Ltd. (*)		Capital commitment		891			-
	Shinhan AIM FoF Fund 4		Capital commitment		295			268
	SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		Capital commitment		8,018			7,271
	Shinhan AIM FoF Fund 6-A		Capital commitment		19,754			30,802
	Shinhan AIM Social Enterprise Investment Fund III		Capital commitment		-			234
	SH Green New Deal Energy Special Asset Private Investment Trust No.3		Capital commitment		6,969			7,528
	Shinhan AIM Private Real Estate Investment Trust No.22-A		Capital commitment		821			7,271
	SH Startup Venture Private Equity Trust No.5		Capital commitment		2,000			4,000
	Shinhan Greenway Corporate Investment FUND NO.1		Capital commitment		620			880
	Shinhan global flagship venture fund 1		Capital commitment		5,200			10,400
	SH BGT Private Special Asset Investment Trust No.2		Capital commitment		11,195			12,871
	SH Venture Private Investment Trust No.6		Capital commitment		6,000			12,000
	Shinhan One Flagship Real Estate Development Fund 1		Capital commitment		-			5,745
	Shinhan hyper connect venture fund Ι		Capital commitment		15,520			22,720
	Shinhan hyper future’s venture fund 1		Capital commitment		-			211
	SH Special Situation Private Real Estate Feeder Investment Trust No.1		Capital commitment		2,519			3,796
	Shinhan CIS III Private Investment Trust No.1		Capital commitment		10,281			18,840
	SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1		Capital commitment		30,144			-
	Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW)		Capital commitment		52,804			-
	Shinhan SLAMS Co-Investment Private Investment Trust No.1		Capital commitment		12,604			-
					186,506			151,295
	Associates
	IGIS Private Real Estate Investment Trust 517-1		Capital commitment		960			2,400
	Associates of entities under common control
	SBC PFV Co., Ltd		Loan commitment		171,700			-
	SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		Capital commitment		3,878			3,880
	Shinhan JigaeNamsan Road Private Special Asset Investment Trust		Capital commitment		182			182
	Shinhan AIM Private Fund of Fund 9-B		Capital commitment		2,914			6,067
					178,674			10,129
				W	366,140			163,824

(*) It is an unused capital commitment related to consolidated structured entities of the related party.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

50. Related parties (continued)

(f) Unsettled commitments of derivatives with related parties as of December 31, 2025 and 2024 are as follows:

Related Party		Type of Derivatives		2025		2024
Entities under common control
Shinhan Bank Co., Ltd.		Currency swap	W	633,761		719,051
		Currency forward		965,159		649,437
		Interest rate forward		144,447		20,010
Shinhan Securities Co., Ltd.		Equity options		29,587		131,774
		Currency forward		253,281		164,346
		Interest rate forward		557,964		557,964
			W	2,584,199		2,242,582

(g) Details of bond transactions with a key related party for the years ended December 31, 2025 and 2024 are as follows:

Related Party		2025				2024
		Buy		Sell		Buy		Sell
Entities under common control
Shinhan Securities Co., Ltd.	W	520,060		311,108		862,553		524,845

(h) Details of acquisitions and disposal of assets with key related parties for the years ended December 31, 2025 and 2024 are as follows:

Related Party		Account		2025						2024
						Acquisition		Disposal				Acquisition			Disposal
Entities under common control
Shinhan Bank Co., Ltd.		Right-of-use assets	W	8,466			-				294			61
Shinhan DS		Equipment		288		-				148				-
		Development costs		634		-				981				-
		Software		310		-				510				-
		Other intangible assets		5,685		615				419				464
		Other property and equipment		186		-				139				-
			W	15,569		615				2,491				525

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

50. Related parties (continued)

(i) Details of collateral transactions with related parties

i) The collateral provided by the Group to related parties as of December 31, 2025 and 2024 are as follows:

Provided to		Collateral assets		Collateral value(*)
				2025		2024
Entities under common control
Shinhan Bank Co., Ltd.		Government bonds, Deposits	W	147,572		116,962
Shinhan Securities Co., Ltd.		Bonds, Stocks and beneficiary certificates		30,537		-
			W	178,109		116,962

(*) Collateral value is equivalent to the carrying amount of the collateral assets.

ii) The collateral provided by a related party to the Group as of December 31, 2025 and 2024 are as follows:

Provided by		Collateral asset		Collateral value
				2025		2024
Entities under common control
Shinhan Securities Co., Ltd.		Securities	W	-		12,501
Shinhan Card Co., Ltd.		Deposits		10		10
			W	10		12,511

(j) Details of key management personnel compensation for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Short-term employee benefits	W	1,079		1,219
Share-based payment transactions		1,727		848
Retirement benefits		40		40
	W	2,846		2,107

(k) As of December 31, 2025, the amounts of credit card allowance commitments provided by Shinhan Card Co., Ltd., and Shinhan Bank Co., Ltd., related parties, are W8,999 million and W114 million, respectively.

51. Earnings per share

Earnings per share for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Profit for the year	W	507,708		528,401
Less: Interest to hybrid bonds		6,633		10,800
Net profit attributable to common shares	W	501,075		517,601
Weighted average number of common shares<br><br>outstanding		115,654,859 shares		115,654,859 shares
Basic and diluted earnings per share in won (*)	W	4,333		4,475

(*) Because the Group does not have any potential dilutive common shares and stock options do not have dilutive effect, the diluted earnings per share are the same as the basic earnings per share for the years ended December 31, 2025 and 2024.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

52. Statements of cash flows

(a) Adjustments to revenue and expenses for the year ended December 31, 2025 and 2024 are as follows:

		2025		2024
Interest income	W	(1,501,740)		(1,546,978)
Interest expense		67,403		78,726
Dividend income		(37,774)		(32,510)
Income taxes		280,406		193,040
Insurance revenue		(3,080,971)		(2,857,315)
Reinsurance revenue		(164,353)		(52,963)
Insurance finance income from insurance contracts issued		(204,421)		(397,712)
Insurance finance income from reinsurance contracts held		(68,751)		(24,101)
Insurance service expenses		2,233,324		2,025,806
Reinsurance service expenses		150,275		57,843
Insurance finance expenses from insurance contracts issued		2,990,529		2,103,212
Insurance finance expenses from reinsurance contracts held		57,872		24,045
Gains on financial assets at fair value through profit or loss		(1,364,390)		(657,125)
Losses on financial assets at fair value through profit or loss		258,583		630,274
Gains on disposal of securities at fair value through other comprehensive income		(81,508)		(79,735)
Losses on disposal of securities measured at fair value through other comprehensive income		64,118		96,475
Gains on disposal of securities at amortized cost		-		(22,284)
Losses on disposal of securities at amortized cost		-		565
Provisions for credit losses		4,861		6,230
Gains related to derivatives		(99,476)		(7,510)
Losses related to derivatives		308,928		585,180
Gain on foreign currency translation		(246,463)		(645,603)
Loss on foreign currency translation		112,773		162
Gain (loss) on foreign currency transaction		3,199		(19,242)
Amortization of right-of-use assets		39,243		39,100
Depreciation		20,392		21,071
Amortization of intangible assets		78,425		76,343
Employee costs		16,073		11,400
Rental income		(29)		(36)
Losses on provisions		39,104		1,182
Other investment expense		1,627		1,798
Share of profit (loss) from associates		2,428		894
Non-operating income		(1,564)		(578)
Non-operating expense		2,302		3,490
	W	(119,575)		(386,856)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

52. Statements of cash flows (continued)

(b) Changes in assets and liabilities from operating activities for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Due from banks at amortized cost	W	(36,700)		(32,095)
Financial assets at fair value through profit or loss		411,057		(77,066)
Loans at amortized cost		547,588		808,329
Other financial assets		(46,548)		45,890
Other assets		(10,405)		(22,316)
Net defined benefit liabilities		(485)		(6,965)
Insurance contract liabilities		(677,404)		(1,184,594)
Reinsurance contract liabilities		(614,999)		(46,839)
Investment contract liabilities		170,081		(559,350)
Provisions		(8,170)		(5,063)
Derivative liabilities		3,996		(1,074)
Other financial liabilities		188,315		231,735
Other liabilities		(5,688)		22,087
	W	(79,362)		(827,321)

(c) Cash and cash equivalents reported in the accompanying consolidated statements of cash flows as of December 31,

2025 and 2024 are as follows:

		2025		2024
Cash and due from banks at amortized cost	W	2,538,228		1,695,328
Adjustments:
Available deposits of which expiration date exceeds<br><br>3 months from the acquisition date		(712,996)		(789,528)
Restricted deposit		(184,673)		(75,801)
	W	1,640,559		829,999

(d) The Group has prepared its statements of cash flows using the indirect method, and the significant non-cash activities for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Changes in gains(losses) on valuation of securities at fair<br><br>value through other comprehensive income	W	(2,073,294)		994,881
Write-off of loans at amortized costs		13,075		10,664
Recognition of right-of-use assets and lease liabilities		25,970		30,745
Reclassification of payables to property, plant and equipment and intangible assets		120		71
Additional provision for restoration		2,945		1,177
Interests payable for hybrid bonds		-		1,497

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

52. Statements of cash flows (continued)

(e) Changes in liabilities resulting from financing activities for the years ended December 31, 2025 and 2024 are as

follows:

		2025 (*1)
		Debentures (*2)		Lease liabilities		Total
Beginning balance	W	323,030		93,923		416,953
Changes in cash flows		505,831		(38,778)		467,053
Amortization		311		2,553		2,864
Others		1,585		20,301		21,886
Ending balance	W	830,757		77,999		908,756

(*1) Changes of other financial liabilities are not included.

(*2) Changes of borrowings are included.

		2024 (*1)
		Debentures (*2)		Lease liabilities		Total
Beginning balance	W	317,165		101,294		418,459
Changes in cash flows		3,909		(38,980)		(35,071)
Amortization		156		2,937		3,093
Others		1,800		28,672		30,472
Ending balance	W	323,030		93,923		416,953

(*1) Changes of other financial liabilities are not included.

(*2) Changes of borrowings are included.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

53. Investment in subsidiaries

(a) Summary of financial information of the subsidiaries

i) The summarized financial information of the controlling company and the Group’s subsidiaries that are consolidated as of December 31, 2025 and 2024 are as follows:

		2025 (*1)						2024 (*1)
Investees		Assets		Liabilities		Equity		Assets		Liabilities		Equity
Shinhan Life Insurance Co., Ltd. (separate)	W	59,448,032		53,208,738		6,239,294		59,617,796		52,555,494		7,062,302
Shinhan Financial Plus Co., Ltd.		276,247		170,409		105,838		273,230		182,938		90,292
Shinhan Life Insurance Vietnam Co., Ltd.		125,738		12,755		112,983		142,109		16,544		125,565
Shinhan LifeCare Co., Ltd.		98,547		3,139		95,408		50,411		1,983		48,428
Mirae Asset Maps Global Infra Private Special Asset Trust 2		5,167		5		5,162		4,934		4		4,930
Shinhan AIM Credit Fund 3		172,575		183		172,392		177,990		187		177,803
Shinhan AIM Private fund of funds Trust 7-A		23,534		1,621		21,913		23,867		1,814		22,053
Shinhan AIM Private fund of funds Trust 6-B		72,593		4,402		68,191		67,852		6,505		61,347
Shinhan AIM Private fund of funds Trust 5		30,592		19		30,573		63,687		38		63,649
KB Global Private Real Estate Debt Fund 23		56,238		5,321		50,917		73,778		7,375		66,403
KB Global Private Real Estate Debt Fund 21		61,167		2,464		58,703		48,924		3,975		44,949
Shinhan KKR Global Program REC Private Investment Trust		119,632		9,542		110,090		89,148		10,489		78,659
Shinhan KKR Global Program PEF Private Investment Trust		96,841		7,125		89,716		75,519		7,327		68,192
Shinhan KKR Global Program PDF Private Investment Trust		240,525		14,373		226,152		186,185		14,996		171,189
Shinhan LCP X Private Investment Trust No.4(H)		40,819		1,339		39,480		33,207		2,919		30,288
Pinestreet BDC Global Corporate FoF 38		287,241		5,852		281,389		-		-		-
Pinestreet IG Global Corporate FoF 39		102,596		6,082		96,514		-		-		-
Shinhan BDC OClC Private investment Trust No.1 (H)		288,804		8,973		279,831		-		-		-
Shinhan SLAMS TPA Private Fund		107,489		203		107,286		-		-		-
Shinhan Apollo SFG Private Investment Trust No.1(USD)		113,335		61		113,274		-		-		-
Shinhan Apollo ADS Private Investment Trust No.1(H)		48,794		2		48,792		-		-		-
Shinhan BDC OCIC Private Investment Trust No.2(H)		48,794		2		48,792		-		-		-
	W	61,865,300		53,462,610		8,402,690		60,928,637		52,812,588		8,116,049

(*1) The summarized financial information is before elimination of intercompany transactions.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

53. Investment in subsidiaries (continued)

(a) Summary of financial information of the subsidiaries (continued)

ii) The summarized income information of the controlling company and the Group’s subsidiaries that are consolidated for the years ended December 31, 2025 and 2024 are as follows:

		2025 (*1)						2024 (*1)
Investees		Operating profit (*2)		Net profit		Total comprehensive income		Operating profit (*2)		Net profit		Total comprehensive income
Shinhan Life Insurance Co., Ltd. (separate)	W	7,483,755		515,916		(138,046)		6,725,864		533,681		(1,057,350)
Shinhan Financial Plus Co., Ltd.		296,374		847		762		258,368		(1,773)		(1,798)
Shinhan Life Insurance Vietnam Co., Ltd.		16,129		(6,485)		(11,443)		18,591		(1,105)		6,129
Shinhan LifeCare Co., Ltd.		2,566		(2,307)		(2,290)		1,337		(1,198)		(1,262)
Mirae Asset Maps Global Infra Private Special Asset Trust 2		256		233		233		492		(2,291)		(2,291)
Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2(*3)		-		-		-		63		16		16
Shinhan AIM Credit Fund 3		7,314		1,328		1,328		36,871		36,498		36,498
Shinhan AIM Private fund of funds Trust 7-A		2,695		1,424		1,424		4,466		1,944		1,944
Shinhan AIM Private fund of funds Trust 6-B		6,128		2,597		2,597		13,974		6,644		6,644
Shinhan AIM Private fund of funds Trust 5		7,632		7,195		7,181		12,943		12,742		12,711
KB Global Private Real Estate Debt Fund 23		7,099		3,849		3,837		16,171		6,672		6,665
KB Global Private Real Estate Debt Fund 21		7,555		2,892		2,892		8,333		2,840		2,840
Shinhan KKR Global Program REC Private Investment Trust		9,596		5,233		5,330		20,965		8,194		8,089
Shinhan KKR Global Program PEF Private Investment Trust		6,905		2,158		2,191		10,489		297		346
Shinhan KKR Global Program PDF Private Investment Trust		23,477		14,097		14,160		35,795		16,760		16,821
Shinhan LCP X Private Investment Trust No.4(H)		5,887		3,568		3,568		5,081		1,743		1,743
Pinestreet BDC Global Corporate FoF 38		15,350		(4,187)		(4,187)		-		-		-
Pinestreet IG Global Corporate FoF 39		7,904		(162)		(162)		-		-		-
Shinhan BDC OClC Private investment Trust No.1 (H)		14,130		(4,023)		(4,023)		-		-		-
Shinhan SLAMS TPA Private Fund		12,997		6,986		6,986		-		-		-
Shinhan Apollo SFG Private Investment Trust No.1(USD)		1,147		370		2,289		-		-		-
Shinhan Apollo ADS Private Investment Trust No.1(H)		1,198		(95)		(95)		-		-		-
Shinhan BDC OCIC Private Investment Trust No.2(H)		1,198		(94)		(94)		-		-		-
	W	7,937,292		551,340		(105,562)		7,169,803		621,664		(962,255)

(*1) The summarized financial information is before elimination of intercompany transactions.

(*2) Income from operations is the aggregate amount of insurance operating income and investment operating income on

the statement of comprehensive income.

(*3) Excluded from consolidation due to liquidation during the year ended December 31, 2024.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

54. Interests in unconsolidated structured entities

• The nature and extent of interests in unconsolidated structured entities

The Group involved in assets-backed securitization, structured financing, investment funds and other structured entities and characteristics of these structured entities are as follows:

		Description
Assets-backed securitization		Securitization vehicles are established to buy assets from originators and issue asset-backed securities to facilitate the originators’ funding activities and enhance their financial soundness. The Group is involved in the securitization vehicles by purchasing (or committing to purchase) the asset-backed securities issued and/or providing other forms of credit enhancement.
Structured financing		Structured entities for project financing are established to raise funds and invest in a specific project such as M&A (mergers and acquisitions), BTL (build-transfer-lease), shipping finance, etc. The Group is involved in the structured entities by originating loans, investing in equity, or providing credit enhancement.
Investment fund		Beneficiary certificates refer to financial instruments that raise a small amount of funds from a large number of the public and distribute the amount according to the performance of profits obtained by investing the amount in stocks or bonds. The Group is involved in beneficiary certificates by investing its stake in various investment funds.

i) The size of unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Total assets :
Assets-backed securitization	W	96,342,197		116,216,980
Structured financing		67,404,059		67,977,476
Investment fund		112,460,471		120,249,437
	W	276,206,727		304,443,893

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

54. Interests in unconsolidated structured entities (continued)

(b) The nature of risks related to interests in unconsolidated structured entities

i) The carrying amount of the assets and liabilities relating to its interests in unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:

			2025
			Assets-backed<br><br>securitization		Structured<br><br>financing		Investment<br><br>fund		Total
Assets recognized in the consolidated financial statements:
Loans at amortized cost		W	-		1,661,685		-		1,661,685
Financial assets measured at fair value<br><br>through profit or loss			43,932		214,149		6,487,172		6,745,253
Securities at fair value through other<br><br>comprehensive income			3,081,459		23		-		3,081,482
Securities at amortized cost			100,000		-		-		100,000
Other assets			-		-		39,474		39,474
		W	3,225,391		1,875,857		6,526,646		11,627,894
			2024
			Assets-backed<br><br>securitization		Structured<br><br>financing		Investment<br><br>fund		Total
Assets recognized in the consolidated financial statements:
Loans at amortized cost		W	-		2,037,835		-		2,037,835
Financial assets measured at fair value<br><br>through profit or loss			122,745		211,100		5,628,486		5,962,331
Securities at fair value through other<br><br>comprehensive income			3,364,817		2,504		-		3,367,321
Securities at amortized cost			100,000		-		-		100,000
Other assets			-		-		27,462		27,462
		W	3,587,562		2,251,439		5,655,948		11,494,949

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

54. Interests in unconsolidated structured entities (continued)

(b) The nature of risks related to interests in unconsolidated structured entities (continued)

ii) The maximum risk exposure of the Group relating to its interests in unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:

		2025
		Assets-backed<br><br>securitization		Structured<br><br>financing		Investment<br><br>fund		Total
Assets held	W	3,225,391		1,875,857		6,526,646		11,627,894
Unused credit provided		-		240,621		-		240,621
Capital commitments		-		124,512		1,192,097		1,316,609
	W	3,225,391		2,240,990		7,718,743		13,185,124
		2024
---	---	---	---	---	---	---	---	---
		Assets-backed<br><br>securitization		Structured<br><br>financing		Investment<br><br>fund		Total
Assets held	W	3,587,561		2,251,439		5,655,949		11,494,949
Unused credit provided		-		141,146		-		141,146
Capital commitments		-		124,513		1,249,566		1,374,079
	W	3,587,561		2,517,098		6,905,515		13,010,174

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

55. Segment information

(a) The Group is organized into two segments (financial and non-financial). The financial segment is engaged in insurance and asset management, and the non-financial segment is engaged in insurance agency and brokerage and senior care facility operations.

• Information by segment for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Financing		Non-financing		Consolidation adjustments (*)		Total
Operating revenue	W	7,638,352		298,940		(120,478)		7,816,814
Operating expenses		6,804,490		300,489		(80,153)		7,024,826
Operating profit		833,862		(1,549)		(40,325)		791,988
Non-operating income (expenses)		(179)		(290)		(977)		(1,446)
Share of profit (loss) from associates		-		-		(2,428)		(2,428)
Profit before income taxes		833,683		(1,839)		(43,730)		788,114
Income tax expense		280,883		(379)		(98)		280,406
Profit for the period	W	552,800		(1,460)		(43,632)		507,708

(*) Consolidation adjustments include elimination of intercompany transactions and unrealized gains and losses, and the amount offsetting investment capital equivalent to investments in subsidiaries.

		2024
		Financing		Non-financing		Consolidation adjustments (*)		Total
Operating revenue	W	6,910,098		259,705		(125,429)		7,044,374
Operating expenses		6,080,794		271,048		(32,550)		6,319,292
Operating profit		829,304		(11,343)		(92,879)		725,082
Non-operating income (expenses)		(2,951)		127		77		(2,747)
Share of profit (loss) from associates		-		-		(893)		(893)
Profit before income taxes		826,353		(11,216)		(93,695)		721,442
Income tax expense		201,718		(8,245)		(432)		193,041
Profit for the period	W	624,635		(2,971)		(93,263)		528,401

(*) Consolidation adjustments include elimination of intercompany transactions and unrealized gains and losses, and the amount offsetting investment capital equivalent to investments in subsidiaries.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

55. Segment information (continued)

• Assets and liabilities by segment as of December 31, 2025 and 2024 are as follows:

		2025
		Financing		Non-financing		Consolidation adjustments (*)		Total
Assets:
Cash and cash equivalents	W	1,616,205		24,354		-		1,640,559
Due from banks		868,081		29,587		-		897,668
Securities		54,265,613		5,546		(1,854,499)		52,416,660
Investments in associates and joint ventures		339,581		-		(300,107)		39,474
Loans		2,258,061		-		-		2,258,061
Reinsurance contract assets		494,226		-		-		494,226
Other assets		1,648,738		315,305		(49,186)		1,914,857
	W	61,490,505		374,792		(2,203,792)		59,661,505
Liabilities:
Insurance contract liabilities		47,912,934		-		-		47,912,934
Reinsurance contract liabilities		56,378		-		-		56,378
Investment contract liabilities		1,541,684		-		-		1,541,684
Other liabilities		3,778,065		173,548		(7,502)		3,944,111
	W	53,289,061		173,548		(7,502)		53,455,107

(*) Consolidation adjustments include elimination of intercompany transactions and unrealized gains and losses, and the amount offsetting investment capital equivalent to investments in subsidiaries.

		2024
		Financing		Non-financing		Consolidation adjustments (*)		Total
Assets:
Cash and cash equivalents	W	801,396		28,603		-		829,999
Due from banks		850,736		14,592		-		865,328
Securities		53,984,180		2,694		(792,233)		53,194,641
Investments in associates and joint ventures		274,581		-		(247,119)		27,462
Loans		2,809,454		-		-		2,809,454
Reinsurance contract assets		107,668		-		-		107,668
Other assets		1,776,981		277,752		(46,017)		2,008,716
	W	60,604,996		323,641		(1,085,369)		59,843,268
Liabilities:
Insurance contract liabilities		48,420,988		-		-		48,420,988
Reinsurance contract liabilities		98,058		-		-		98,058
Investment contract liabilities		1,332,468		-		-		1,332,468
Other liabilities		2,776,249		184,921		(10,020)		2,951,150
	W	52,627,763		184,921		(10,020)		52,802,664

(*) Consolidation adjustments include elimination of intercompany transactions and unrealized gains and losses, and the amount offsetting investment capital equivalent to investments in subsidiaries.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

55. Segment information (continued)

(d) As the Group mainly operates its business in the Republic of Korea, transactions mostly incur within the Republic of Korea, accordingly, information by geographical region is not calculated.

(e) There is no single retail customer who accounts for more than 10% of the Group’s operating income for the year ended December 31, 2025.

56. Effects of changes in accounting policies

K-IFRS No. 1117 requires that, for dividends arising from participating insurance contracts, liabilities be measured using estimates of the related cash flows and discount rates that reflect the assumptions and risks associated with those cash flows.

Specifically, in measuring insurance liabilities, the Group is required to reflect, without undue cost or effort, reasonable and supportable information available faithfully representing the facts without incorporating the Group’s own plans or intentions. In addition, the effects of enacted or substantively enacted laws or regulations are reflected in the measurement of insurance liabilities only when such enactment or amendment is substantively certain, and neutral estimates that are free from bias are required to be used in estimating the related cash flows.

Accordingly, insurers do not derive the asset return scenarios used in measuring insurance liabilities (best estimate liabilities, the remaining coverage component) based on item-by-item disposal plans for assets currently held and managed. Instead, such scenarios are determined based on risk-free interest rates that are consistent with the discount rates prescribed under supervisory regulations for discounting the present value of fulfilment cash flows.

In response to these requirements, upon the adoption of K-IFRS No. 1117 in 2023, the Group estimated future dividend cash flows for participating insurance contracts by neutrally reflecting reasonable and supportable information, including the Group’s experience statistics such as historical dividend amounts arising from the relevant contracts, as well as management’s asset management plans and risk management strategies. In addition, the Group determined whether policyholder dividends would arise by considering expected gains or losses on the disposal of assets only in cases where specific disposal plans for such assets had been finalized by management, such as when assets were disposed of or when concrete disposal plans had been approved by the board of directors. Where policyholder dividends were determined to arise, the related cash flows were reflected in the measurement of insurance liabilities.

As a result of measuring insurance liabilities related to policyholder dividends arising from expected future cash flows of participating insurance contracts in accordance with the requirements of K-IFRS No. 1117, there was no insurance liability required to be recognized by the Group.

The Group concluded that, if dividend payment obligations related to participating insurance contracts were measured in accordance with the requirements of K-IFRS No. 1117 from 2023 when K-IFRS No. 1117 was adopted, such measurement would conflict with the “objective of general purpose financial reporting” as set out in the Conceptual Framework for Financial Reporting and would constitute the “extremely rare circumstances in which compliance with a requirement would be so misleading” as specified in paragraph 19 of K-IFRS No. 1001.

Accordingly, the Group had measured and recognized as liabilities the expected future comprehensive obligations to policyholders (policyholder dividends) arising from unrealized gains or losses on assets as of the end of the reporting period, by applying the methodology prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

56. Effects of changes in accounting policies (continued)

Meanwhile, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulations on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by an entity are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

In December 2025, the Financial Supervisory Service, through its response titled “Inquiry Response on the Accounting Treatment of Policyholders’ Equity Adjustments (Accounting Departure) by Life Insurance Companies,” stated that it is difficult to conclusively determine that applying K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts of life insurance companies would be misleading to users of financial statements. The Financial Supervisory Service further noted that, as K-IFRS No. 1117 has passed its transition guidance period and has become stabilized, there is a need to resolve unnecessary controversies arising from the continued application of accounting departures, and that some views suggest that, if domestic life insurance companies continue to apply accounting departures, Korea may not be regarded as a jurisdiction that has fully adopted IFRS. Taking these considerations into account, the Financial Supervisory Service concluded that it is appropriate to discontinue the application of accounting departures at the current point in time.

Furthermore, the Financial Supervisory Service responded that, even if management were to conclude that complying with K-IFRS No. 1117 with respect to dividend payment obligations related to participating insurance contracts would conflict with the “objective of general purpose financial reporting” as set out in the Conceptual Framework and could therefore be misleading to users of financial statements, it would nevertheless be difficult, from a supervisory perspective, to continue to permit the application of accounting departures.

After comprehensively considering the circumstances described above, the Group determined that, even if compliance with the requirements of K-IFRS No. 1117 for participating insurance contracts could potentially result in an understatement of insurance liabilities compared to prior-period accounting practices and thereby give rise to a possibility of being misleading to users of financial statements due to a conflict with the objective of general purpose financial reporting, the supervisory framework no longer permits the Group’s previous accounting treatment that had applied the requirements of K-IFRS No. 1117 differently. Accordingly, the Group changed its accounting policy to measure insurance liabilities in compliance with the requirements of K-IFRS No. 1117 from the end of the current period.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

56. Effects of changes in accounting policies (continued)

In addition, through the above-mentioned response, the Financial Supervisory Service stated that, where a life insurance company changes the accounting treatment of dividend payment obligations related to participating insurance contracts from an accounting departure (policyholders’ equity adjustments) to the application of K-IFRS No. 1117, such change should be accounted for as a change in accounting policy in accordance with K-IFRS No. 1008. Accordingly, the Group applied the effects of the change retrospectively.

As of December 31, 2025, policyholders’ equity adjustments calculated under the previous method prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business amounted to W1,094 million. In accordance with K-IFRS No. 1008 Changes in Accounting Policies, the effects of the retrospective restatement of prior reporting period resulting from the application of K-IFRS No. 1117 are as follows:

		As of December 31, 2024
		Assets		Liabilities		Equity		Profit for the year		Total comprehensive income(loss) for the year
Before the Change	W	59,843,268		52,802,301		7,040,967		528,401		(1,056,025)
Adjustments:
Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts
Policyholders’ equity adjustments		-		362		(362)		-		664
Income tax effect		-		(96)		96		-		(175)
After the Change	W	59,843,268		52,802,567		7,040,701		528,401		(1,055,536)
		As of January 1, 2024
---	---	---	---	---	---	---
		Assets		Liabilities		Equity
Before the Change	W	58,641,345		50,218,211		8,423,134
Adjustments:
Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts
Policyholders’ equity adjustments		-		1,025		(1,025)
Income tax effect		-		(271)		271
After the Change	W	58,641,345		50,218,965		8,422,380

EX-99.2

SHINHAN LIFE INSURANCE CO., LTD.

Separate Financial Statements

December 31, 2025 and 2024

(With Independent Auditors’ Report Thereon)

Contents

		Page
Independent Auditors’ Report		1
Separate Statements of Financial Position		3
Separate Statements of Comprehensive Income		5
Separate Statements of Changes in Equity		7
Separate Statements of Cash Flows		9
Notes to the Separate Financial Statements		10
Independent Auditors’ Review Report on Internal Control over Financial Reporting		218
ICFR Operating Status Report by CEO and IAM		219

Independent Auditors’ Report

(Based on a report originally issued in Korean)

To the Board of Directors and Shareholder

Shinhan Life Insurance Co., Ltd.

Opinion

We have audited the accompanying separate financial statements of Shinhan Life Insurance Co., Ltd. (the “Company”), which comprise the separate statements of financial position as of December 31, 2025 and 2024, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2025 and 2024, and its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“KSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

SHINHAN LIFE INSURANCE CO., LTD.

Separated Statements of Financial Position (Continued)

As of December 31, 2025 and 2024

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used in the preparation of the separate financial statements and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

KPMG Samjong Accounting Corp.

March 3, 2026

Seoul, Korea

This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Financial Position

As of December 31, 2025 and 2024

(In millions of Korean won)		Note		December 31,<br><br>2025		December 31, 2024		January 1, 2024
Assets
Cash and due from banks at amortized cost		5,8,9,11,49,51	W	2,286,855		1,528,871		1,640,481
Financial assets at fair value through profit or loss		5,8,9,12,24,49		13,265,276		11,579,983		11,478,700
Securities at fair value through<br><br>other comprehensive income		5,8,9,13,24,49		35,288,458		37,647,435		35,345,575
Securities at amortized cost		5,8,9,14,24		3,950,344		3,931,915		4,348,023
Investments in subsidiaries and associates		15		339,581		274,581		274,581
Loans and receivables at amortized cost		5,8,9,16,49		3,452,237		3,954,082		4,707,291
Reinsurance contract assets		6,26		494,226		107,668		62,815
Right-of-use assets		17,49		66,311		77,272		92,941
Property and equipment		18,49		68,917		67,924		76,122
Intangible assets		19,49		166,972		209,378		235,402
Derivative assets		5,8,9,22,49		34,474		117,522		116,378
Current tax assets		47,49		5,661		82,404		70,658
Investment property		21,24		13,973		14,185		14,397
Net defined benefit assets		30		4,868		16,334		34,257
Other assets		23		9,879		8,242		10,694
Total assets			W	59,448,032		59,617,796		58,508,315

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Financial Position (Continued)

As of December 31, 2025 and 2024

(In millions of Korean won)		Note		December 31,<br><br>2025		December 31, 2024		January 1, 2024
Liabilities
Insurance contract liabilities for:
Participating insurance contracts			W	5,089,927		5,318,700		4,909,601
Non-participating insurance contracts				37,008,315		38,130,097		35,393,987
Variable insurance contracts				5,814,381		4,970,853		5,225,398
		6,25		47,912,623		48,419,650		45,528,986
Reinsurance contract liabilities		6,26		56,378		98,058		93,120
Investment contract liabilities		5,8,9,27,49		1,541,684		1,332,468		1,831,826
Derivative liabilities		5,8,9,22,49		870,822		501,592		239,940
Debentures		5,8,9,28		798,392		299,487		299,331
Other financial liabilities		5,8,9,29,34,49		665,846		461,215		238,028
Lease liabilities		5,8,9,17,49		66,338		77,399		91,566
Provisions		31		101,634		70,158		75,565
Current tax liabilities		47,49		14,019		79		55
Deferred tax liabilities		47		1,152,838		1,264,118		1,631,570
Other liabilities		32		28,164		31,270		32,533
Total liabilities				53,208,738		52,555,494		50,062,520
Equity
Capital stocks		33		578,274		578,274		578,274
Hybrid bonds		33		-		299,452		299,452
Capital surplus		33		820,023		820,023		820,023
Capital adjustments		33		891		1,461		1,461
Accumulated other comprehensive income (loss)		33		(2,128,291)		(1,474,328)		116,664
Retained earnings		33		6,968,397		6,837,420		6,629,921
Total equity				6,239,294		7,062,302		8,445,795
Total liabilities and equity			W	59,448,032		59,617,796		58,508,315

See accompanying notes to the separate financial statements.

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)		Note		2025		2024
Insurance revenue		25,35	W	3,071,866		2,847,305
Reinsurance revenue		26,36		164,353		52,963
Insurance service expenses		25,35,38,49		2,282,814		2,069,009
Reinsurance service expenses		26,36		150,275		57,843
Other operating expenses		38		98,977		115,035
Insurance service result				704,153		658,381
Insurance finance income and investment income:
Insurance finance income from insurance contracts issued		25,37		204,421		397,712
Insurance finance income from reinsurance contracts held		26,37		68,751		24,101
Interest income		9,40,49		1,464,548		1,512,259
Gains on financial assets at fair value<br><br>through profit or loss		9,12		1,931,446		1,015,803
Gains on disposal of securities at fair value through other comprehensive income		9,13		81,508		79,735
Gains on securities at amortized cost		9,14		17,064		22,284
Gains on disposal of loans at amortized cost		9,12		4,058		103
Reversal of credit loss allowance		41,49		13,708		9,392
Gains on foreign currency transaction		42		247,458		645,182
Gains on derivatives		22,49		164,553		65,275
Dividend income		9,44		37,769		32,510
Fees and commission income		43,49		9,481		12,563
Other investment income		45,49		2,771		8,677
				4,247,536		3,825,596
Insurance finance expenses and investment expenses:
Insurance finance expenses from insurance contracts issued		25,37		2,990,559		2,103,148
Insurance finance expenses from reinsurance contracts held		26,37		57,872		24,045
Interest expenses		9,40,49		66,848		78,142
Losses on financial assets at fair value<br><br>through profit or loss		9,12,49		268,443		629,126
Losses on disposal of securities at fair value through other comprehensive income		9,13		64,118		96,475
Losses on securities at amortized cost		9,14		6,070		565
Losses on disposal of loans at amortized cost		9		622		426
Provision for credit loss allowance		41,49		18,702		16,087
Losses on foreign currency transaction		42		124,147		12,163
Losses on derivatives		22,49		423,970		687,835
Investment administrative expenses		39,49		18,342		16,291
Other investment expenses		45,49		115,310		81,105
				4,155,003		3,745,408
Net finance result				92,533		80,188
(In millions of Korean won, except per share data)		Note		2025		2024
---	---	---	---	---	---	---

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Comprehensive Income (Continued)

For the years ended December 31, 2025 and 2024

Operating profit			W	796,686		738,569
Non-operating expenses		46		(148)		(2,961)
Profit before income taxes				796,538		735,608
Income tax expense		47		280,622		201,927
Profit for the period				515,916		533,681
Other comprehensive income (loss) for the period, net of income tax
Items that may be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at<br><br>fair value through other comprehensive income				(1,476,988)		730,443
Gains (losses) on valuation of derivatives held for cash flow hedges				(300,075)		45,219
Net finance income (expenses) from insurance contracts issued				1,278,873		(2,353,403)
Net finance expenses from reinsurance contracts held				(153,671)		(1,544)
				(651,861)		(1,579,285)
Items that will not be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				(619)		848
Remeasurements of defined benefit liabilities				(1,483)		(12,594)
				(2,102)		(11,746)
Total other comprehensive loss, net of income tax		13,22,33		(653,963)		(1,591,031)
Total comprehensive loss for the period			W	(138,047)		(1,057,350)
Earnings per share:
Basic earnings per share and diluted earnings per share in won		50	W	4,403		4,521

See accompanying notes to the separate financial statements

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.
		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2024 before the change	W	578,274		299,452		820,023		1,461		117,417		6,629,922		8,446,549
Effects of changes in accounting policies		-		-		-		-		(754)		-		(754)
Balance at January 1, 2024 after the change		578,274		299,452		820,023		1,461		116,663		6,629,922		8,445,795
Total comprehensive income for the period:
Profit for the period		-		-		-		-		-		533,681		533,681
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income		-		-		-		-		731,290		-		731,290
Gains on valuation of derivatives intended for cash flow hedges		-		-		-		-		45,219		-		45,219
Net finance expenses from insurance contracts issued		-		-		-		-		(2,353,403)		-		(2,353,403)
Net finance expenses from reinsurance contracts held		-		-		-		-		(1,544)		-		(1,544)
Remeasurement of defined benefit plans		-		-		-		-		(12,594)		-		(12,594)
Total other comprehensive income		-		-		-		-		(1,591,032)		-		(1,591,032)
Other changes in equity
Dividends		-		-		-		-		-		(165,338)		(165,338)
Interim dividend		-		-		-		-		-		(150,004)		(150,004)
Interest expenses on hybrid bonds		-		-		-		-		-		(10,800)		(10,800)
Reclassification adjustments from other comprehensive income to retained earnings		-		-		-		-		41		(41)		-
Balance at December 31, 2024	W	578,274		299,452		820,023		1,461		(1,474,328)		6,837,420		7,062,302

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Changes in Equity (Continued)

For the years ended December 31, 2025 and 2024

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Changes in Equity (Continued)

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.
		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2025	W	578,274		299,452		820,023		1,461		(1,474,328)		6,837,420		7,062,302
Total comprehensive income for the period:
Profit for the period		-		-		-		-		-		515,916		515,916
Other comprehensive income, net of income tax:
Losses on valuation of securities at fair value through other comprehensive income		-		-		-		-		(1,477,607)		-		(1,477,607)
Losses on valuation of derivatives intended for cash flow hedges
Net finance income from insurance contracts issued		-		-		-		-		(300,075)		-		(300,075)
Net finance expenses from reinsurance contracts held		-		-		-		-		1,278,873		-		1,278,873
Remeasurement of defined benefit plans		-		-		-		-		(153,671)		-		(153,671)
Total other comprehensive income		-		-		-		-		(653,963)		-		(653,963)
Other changes in equity
Dividends		-		-		-		-		-		(378,307)		(378,307)
Share-based payments		-		-		-		(22)		-		-		(22)
Redemption of hybrid bonds		-		(299,452)		-		(548)		-		-		(300,000)
Interest expenses on hybrid bonds		-		-		-		-		-		(6,632)		(6,632)
Balance at December 31, 2025	W	578,274		-		820,023		891		(2,128,291)		6,968,397		6,239,294

See accompanying notes to the separate financial statements

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		2025		2024
Cash flows from operating activities
Profit for the period	W	515,916		533,681
Adjustment for profit or loss (Note 51)		(98,705)		(370,877)
Changes in assets and liabilities (Note 51)		91,919		(846,581)
Income tax paid		(21,922)		(11,871)
Interest received		1,011,900		1,016,106
Interest paid		(26,098)		(17,948)
Dividends received		35,710		38,076
Net cash inflow from operating activities		1,508,720		340,586
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss		690,272		1,871,007
Acquisition of financial assets at fair value through profit or loss		(1,730,691)		(1,698,176)
Disposal of securities at fair value<br><br>through other comprehensive income		5,100,536		4,095,627
Acquisition of securities at fair value through<br><br>other comprehensive income		(4,252,168)		(4,668,975)
Disposal of securities at amortized cost		-		407,544
Acquisition of investments in subsidiaries		(65,000)		-
Cash inflows from hedging activities		1,030		3,493
Cash outflows from hedging activities		(153,061)		(110,122)
Disposal of property and equipment		27		49
Acquisition of property and equipment		(19,298)		(12,191)
Disposal of intangible assets		958		51
Acquisition of intangible assets		(32,145)		(51,506)
Decrease in receivables at amortized cost		5,537		5,701
Increase in receivables at amortized cost		(11,033)		(4,320)
Net cash outflow from investing activities		(465,036)		(161,818)
Cash flows from financing activities
Issuance of debentures		498,594		-
Decrease in other financial liabilities		-		(357)
Increase in other financial liabilities		50		667
Decrease in lease liabilities		(31,089)		(28,795)
Dividends paid		(378,307)		(315,343)
Redemption of hybrid bonds		(300,000)		-
Interest paid to hybrid bonds		(8,130)		(10,800)
Net cash outflow from financing activities		(218,882)		(354,628)
Net increase (decrease) in cash and cash equivalents		824,802		(175,860)
Changes in cash and cash equivalents due to<br><br>foreign currency translation		2,687		2,621
Cash and cash equivalents at the beginning of the period		777,204		950,443
Cash and cash equivalents at the end of the period	W	1,604,693		777,204

See accompanying notes to the separate financial statements.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2025 and 2024

1. Reporting entity

Shinhan Life Insurance Co., Ltd., (the “Company”) was established in January, 1990, which is located at 358 Samil-daero, Jung-gu, Seoul and operates the life insurance business. Company operates through 237 branches, and Shinhan Financial Group Co., Ltd. owns 100% of the Company's stock. Meanwhile, the Company has merged with Orange Life Insurance Co., Ltd. on July 1, 2021 in accordance with the resolution of the general shareholder's meeting on December 23, 2020, and has changed its name to Shinhan Life Insurance Co., Ltd.

2. Basis of preparation

(a) Statement of compliance

The accompanying separate financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“Korean IFRS” or “K-IFRS”), as prescribed in the Article 5(1)1 of Act on External Audit of Stock Companies.

The separate financial statements are prepared in accordance with K-IFRS No. 1027 ‘Separate Financial Statements’ in which parent, an investor in associates or joint ventures accounts for investments based on directly equity investments, not on the investee’s reported performance and net assets.

(b) Date of authorization

The separate financial statements of the Company were authorized for issue by the Board of Directors on February 5, 2026, and the separate financial statements will be submitted for the final approval to the shareholder’s meeting on March 26, 2026.

(c) Basis of measurement

The separate financial statements have been prepared on the historical cost basis, except for the following material items in the separate statement of financial position:

• derivative financial instruments measured at fair value
• financial instruments at fair value through profit or loss measured at fair value
• securities at fair value through other comprehensive income measured at fair value
• liabilities for cash-settled share-based payment arrangements measured at fair value
• net defined benefit liability (asset) recognized at the net of the present value of defined benefit obligations less the fair value of plan assets
• insurance and reinsurance contract assets and liabilities measured at the fulfilment cash flows

(d) Functional and presentation currency

The separate financial statements of the Company are prepared in the functional currency of the economic environment in which the Company operates. The separate financial statements of the Company are presented and reported in won, which is the Company’s functional currency and the presentation currency.

(e) Use of estimates and judgements

The preparation of the separate financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. If the estimates and assumptions based on management's best judgment as of December 31, 2025 are different from the actual environment, these estimates and actual results may be different.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

2. Basis of preparation (continued)

(e) Use of estimates and judgements (continued)

i) Uncertainty in assumptions and estimates

Accounting estimates and assumptions that include significant risks that may incur significant adjustments to the carrying amounts of assets and liabilities accounted for as of the end of the reporting period are as follows and are disclosed in Notes 10.

• Fair value of financial instruments
• Provision for credit loss and allowance for unused credit commitments
• Impairment of non-financial assets
• Defined benefit obligations
• Insurance contract liabilities and reinsurance contract assets(liabilities)

ii) Fair value measurement

The accounting policies and disclosures of the Company require fair value measurement for a number of financial and non-financial assets and liabilities, and thus, the Company establishes the fair value assessment policies and procedures. These policies and procedures involve the operation of the valuation department, which is responsible for the review of all significant fair value measurements, including fair values, which are classified as level 3 in the fair value hierarchy, and the results are reported to the chief financial officer.

The valuation department regularly reviews significant inputs and adjustments that are not observable. If the fair value measurement uses third-party information, such as broker's price or valuation agency, the valuation department determines whether an assessment based on information obtained from third parties can conclude that the fair value hierarchy includes classifications by level and meets the requirements of the related Standard.

When measuring the fair value of an asset or a liability, the Company uses as much market observable inputs as possible. Fair value is classified within the fair value hierarchy based on inputs used in valuation techniques as follows:

• Level 1: Unadjusted quoted prices in active markets accessible to the same assets or liabilities at the

measurement date

• Level 2: Observable inputs, directly or indirectly, on assets or liabilities other than Level 1 quoted prices

• Level 3: Unobservable inputs to assets or liabilities

If several inputs used to measure the fair value of an asset or liability are classified at different levels within the fair value hierarchy, the Company classifies all fair value measurements at the same level as the lowest level inputs in the fair value hierarchy, and a change in the fair value hierarchy is recognized at the end of the reporting period.

Detailed information on the assumptions used in fair value measurements is included in Note 8.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

2. Basis of preparation (continued)

(f) New and amended Korean IFRSs and new interpretations adopted by the Company

The Company has applied the following new and amended accounting standards and new interpretations issued that are effective for the accounting periods beginning on or after January 1, 2025.

i) Amendments to Korean IFRS 1021 ‘The Effects of Changes in Foreign Exchange Rates’ – Lack of exchangeability

The amendments define scenarios where exchanges with other currencies are considered possible for accounting purposes, clarify the assessment of exchangeability with other currencies, and specify requirements for estimating and disclosing the spot exchange rate in cases where no exchangeability exists. If exchange with other currencies is not possible, the spot exchange rate must be estimated on the measurement date using observable exchange rates without adjustment or employing alternative estimation techniques. The adoption of the amendments did not have a material impact on the Company’s separate financial statements.

ii) Amendments to Korean IFRS 1117 ‘Insurance Contract’

The amendments add a disclosure requirement for entities to disclose, where the techniques to estimate the inputs used for measuring insurance contracts differ from those prescribed under insurance-related laws or regulations and such differences are considered relevant and material to users of the financial statements, those differences and their effects on the financial statements. The adoption of the amendments did not have a material impact on the Company’s separate financial statements.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies

Except for the new and amended accounting standards and new interpretations issued that are effective for the accounting periods beginning on or after January 1, 2025, the same accounting policies were applied by the Company in its separate financial statements as of December 31, 2025 and 2024. The material accounting policies adopted by the Company to prepare the separate financial statements are set out below.

(a) Investments in subsidiaries and associates

The accompanying separate financial statements have been prepared on a stand-alone basis in accordance with K-IFRS No. 1027 Separate Financial Statements. The Company’s investments in subsidiaries and associates are recorded at cost less impairment, if any, in accordance with K-IFRS No. 1027. The Company applied K-IFRS No. 1109 for beneficiary certificates using fair value method. Dividends received from its subsidiaries are recognized in profit or loss when the Company is entitled to receive the dividend.

(b) Business combinations

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

(c) Revenue recognition criteria

The Company recognizes revenue by applying the below five-step model for revenue recognition.

① Identification of contract

② Identification of performance obligation

③ Calculation of transaction price

④ Allocation of transaction price to performance obligation

⑤ Recognition of revenue when performance obligation is fulfilled

i) Interest income and expenses

Interest income is recognized using the effective interest method as time passes.

ii) Dividend income

Dividend income is recognized when the right to receive dividends is established.

(d) Cash and cash equivalents

The Company classifies cash balances, call deposits and highly liquid investment assets with original maturities of three months or less from the acquisition date that are easily converted into a fixed amount of cash and are subject to an insignificant risk of changes in their fair value as cash and cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(e) Non-derivative financial assets

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. In addition, a regular way purchase or sale (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market concerned) is recognized on the trade date.

i) Financial assets designated at FVTPL

Financial assets can be irrevocably designated as measured at FVTPL despite of classification standards stated below, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases. However, once the financial assets are designated at FVTPL, it is irrevocable.

ii) Equity instruments

For the equity instruments that are not held for trading, at initial recognition, the Company may make an irrevocable election to present subsequent changes in fair value in other comprehensive income. Equity instruments that are not classified as financial assets at FVOCI are classified as financial assets at FVTPL.

The Company subsequently measures all equity investments at fair value. Valuation gains or losses of the equity instruments that are classified as financial assets at FVOCI previously recognized as other comprehensive income is not reclassified as profit or loss on derecognition. The Company recognizes dividends in profit or loss when the Company's right to receive payments of the dividend is established.

Valuation gains or losses due to changes in fair value of the financial assets at FVTPL are recognized as gains or losses on financial assets at FVTPL. Impairment loss (reversal) on equity instruments at FVOCI is not recognized separately.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(e) Non-derivative financial assets (continued)

iii) Debt instruments

Subsequent measurement of debt instruments depends on the Company’s business model in which the asset is managed and the contractual cash flow characteristics of the asset. Debt instruments are classified as financial assets at amortized cost, at FVOCI, or at FVTPL. Debt instruments are reclassified only when the Company’s business model changes.

① Financial assets at amortized cost

Assets that are held within a business model whose objective is to hold assets to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Impairment losses, and gains or losses on derecognition of the financial assets at amortized cost are recognized in profit or loss. Interest income on the effective interest method is included in the ‘Interest income’ in the separate statement of comprehensive income.

② Financial assets at FVOCI

Assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Other than impairment losses, interest income amortized using effective interest method and foreign exchange differences, gains or losses of the financial assets at FVOCI are recognized as other comprehensive income in equity. On derecognition, gains or losses accumulated in other comprehensive income are reclassified to profit or loss. The interest income on the effective interest method is included in the ‘Interest income’ in the separate statement of comprehensive income. Foreign exchange differences and impairment losses are included in the ‘Net foreign currency transaction gain’ and ‘Provision for credit loss allowance’ in the separate statement of comprehensive income, respectively.

③ Financial assets at FVTPL

Debt securities other than financial assets at amortized costs or FVOCI are classified at FVTPL. Unless hedge accounting is applied, gains or losses from financial assets at FVTPL are recognized as profit or loss and are included in ‘Net gain on financial assets at fair value through profit or loss’ in the separate statement of comprehensive income.

iv) Embedded derivatives

Financial assets with embedded derivatives are classified regarding the entire hybrid contract, and the embedded derivatives are not separately recognized. The entire hybrid contract is considered when it is determined whether the contractual cash flows represent solely payments of principal and interest.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(f) Non-derivative financial liabilities

The Company categorizes financial liabilities into financial liabilities at fair value through profit or loss and other financial liabilities based on the substance of the contractual terms and the definition of financial liabilities.

i) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are initially measured at fair value, and changes therein are recognized in profit or loss.

ii) Other financial liabilities

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities and other financial liabilities include borrowing, debentures, etc. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.

The Company derecognizes a financial liability from the separate statement of financial position when it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(g) Derivative financial instruments

Derivatives are initially recognized at fair value. Subsequently, the valuation gains or losses resulting from the fair value changes of derivatives are recognized as described below.

i) Hedge accounting

The Company holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Company designated derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities, or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Company formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction. In addition, this document describes the hedging instrument, hedged item, and the method of evaluating the effect of the hedging instrument offsetting changes in the fair value or cash flow of the hedged item due to the hedged risk at the initiation of the hedging relationship and in subsequent periods.

① Fair value hedge

When a derivative is designated as a fair value hedge, an effective part of the change in the fair value of the derivative that meets requirement of fair value risk hedge accounting is recognized in profit or loss, and changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The Company discontinues fair value hedge accounting if the Company does not designate the risk hedge relationship, or the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria.

② Cash flow hedge

When a derivative is designated as a cash flow hedge, an effective part of the change in the cash flow of the derivative that meets requirement of cash flow risk hedge accounting is recognized in profit or loss, and changes in the cash flow of a derivative hedging instrument designated as a cash flow hedge are recognized in other comprehensive income and accumulated in equity, and the ineffective portion is recognized immediately in profit or loss. The Company discontinues cash flow hedge accounting if the Company does not designate the risk hedge relationship, or the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria. Once hedge accounting is discontinued, any cumulative gain or loss existing in equity at that time and is recognized over the period the forecast transaction occurs as profit or loss. However, when a forecast transaction is no longer expected to occur, the cumulative gain or loss recognized in equity is immediately recognized in the profit or loss.

③ Hedge of net investment

Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign operation are recognized in other comprehensive income to the extent that the hedge is effective. To the extent that the hedge is ineffective, such differences are recognized in profit or loss. When the hedged part of a net investment is disposed of, the relevant amount in the accumulated other comprehensive income is transferred to profit or loss as part of the profit or loss on disposal in accordance with K-IFRS No.1021, ‘The Effects of Changes in Foreign Exchange Rates’

ii) Other derivative instruments

All derivatives, except those designated as hedging instruments and that are effective in hedging, are measured at fair value and the gain or loss on valuation resulting from changes in fair value is recognized in profit or loss.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(h) Expected credit losses on financial assets

The Company recognizes provision for credit loss allowance on the following assets:

• Financial assets measured at amortized cost

• Debt instruments measured at fair value through other comprehensive income

The Company measures provision for credit loss allowance at the amount equal to the expected credit loss for the entire period, except for the following financial assets that are measured as 12-month expected credit losses.

• Debt securities whose credit is determined to be low risk at the end of the reporting period

• Other debt securities that have not significantly increased their credit risk (i.e. the risk of defaulting the financial asset over its expected life) since the initial recognition

When determining whether the credit risk of a financial asset has increased significantly since the initial recognition and when estimating expected credit losses, the Company considers information that is available, reasonable, and supportable without excessive cost or effort. This includes qualitative and quantitative information and analysis based on the Company's experience and known credit ratings, including forward-looking information.

The Company assumes that the credit risk of financial assets will increase significantly if the overdue days exceed 30 days.

The Company considers that a default on a financial asset has occurred if:

• the debtor is not likely to fulfill his credit obligations to the Company unless the Company engages in an appeal.

• the delinquent days of financial assets exceed 90 days

The longest period to consider when measuring expected credit loss is the longest contract period in which the Company is exposed to credit risk.

i) Measurement of expected credit loss

Expected credit loss is a probability weighted estimate of credit loss. Credit loss is measured as the present value of all cash deficits (i.e. the difference between all contractual cash flows to be received under a contract and all contractual cash flows that is expected to be received).

Expected credit loss is discounted at the effective interest rate of the financial asset.

ii) Financial assets with credits impaired

At the end of each reporting period, the Company assesses whether the assets of financial assets measured at amortized cost and other comprehensive income and fair value of debt securities measured at fair value are impaired. If one or more events that adversely affect the estimated future cash flows of a financial asset have occurred, the financial asset is impaired.

iii) Presentation of provision for credit loss allowance in the statement of financial position

Provision for credit loss allowance on financial assets measured at amortized cost is deducted from the carrying amount of the asset. For debt instruments measured at fair value through other comprehensive income, the provision for credit loss allowance is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(i) Impairment of non-financial assets

The carrying amounts of the Company’s non-financial assets, other than assets arising from employee benefits, deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.

The Company estimates the recoverable amount of an individual asset, if it is impossible to measure the individual recoverable amount of an asset, then the Company estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or the CGU.

An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

At the end of each reporting period, the Company reviews whether there are any indications that any impairment losses recognized in prior periods for assets other than goodwill are no longer present or have been reduced, and only reverses the estimates used to determine recoverable amount since the date of recognition of the immediate impairment loss. The carrying amount increased by the reversal of impairment losses shall not exceed the carrying amount before recognition of the impairment loss, less any amortization or accumulated depreciation recognized prior to the impairment.

(j) Leases

i) Accounting treatment as the lessee

The Company leases various tangible assets, such as real estate and vehicles, and the terms of the leases are negotiated individually and include a variety of terms and conditions. There are no other restrictions imposed by the lease contracts, except that the lease assets cannot be provided as collaterals for borrowings.

At the commencement date of the lease, the Company recognizes a right-of-use asset and a lease liability. The payment of each lease is allocated to the repayment of the liability and finance costs. The Company recognizes in profit or loss the amount calculated to produce a constant periodic rate of interest on the lease liability balance for each period as finance costs. Right-of-use assets are depreciated using a straight-line method from the inception of the lease over the lease term of the right-of-use assets.

If the implicit interest rate in the lease can be readily determined, the lease payments shall be discounted using that rate, and if that rate cannot be readily determined, the lessee shall use the lessee’s incremental borrowing rate.

Right-of-use assets are measured at the following items:

• The initial measurement of the lease liability.

• Lease payments made at or before the lease commencement date (net of any lease incentives received).

• Initial direct costs incurred by the lessee.

• An estimate of costs to dismantle and remove the underlying asset, or to restore the underlying asset site, or to restore the underlying asset itself, as incurred by the lessee, as required by the lease terms.

Lease payments associated with short-term leases or leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Short-term leases are leases with a lease term of 12 months or less, and low-value asset leases are leases with a carrying amount of the underlying asset of W 6 million or less.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(j) Leases (continued)

i) Accounting treatment as the lessee(continued)

Additional considerations for the Company’s accounting as a lessee include:

Extension options and termination options are generally included in multiple real estate lease contracts. When estimating the lease term, the Company considers all relevant facts and circumstances that create an economic incentive to exercise the option to extend the lease, or not to exercise the option to terminate the lease. Period covered by an extension option (or period covered by termination option) is included in lease term only if the lessee is reasonably certain to exercise (or not to exercise) the option. If the lessee and the lessor have the right to terminate without the consent of the other parties, the termination period shall be determined in consideration of the economic disadvantages incurred in terminating the contract. When significant events occur or there are significant changes in circumstances that have affected the lessee's control and the lease term before, the parties reassess whether they are quite certain to exercise the option of extension (or not).

ii) Accounting treatment as the lessor

The Company leases various types of assets such as vehicles and machinery under operating and finance lease contracts, with lease terms individually negotiated and comprising various contract terms. Methods employed by the Company to manage risks associated with all rights retained in the underlying assets include repurchase agreements and residual value guarantees.

① Finance Lease

For finance leases, the Company recognizes a finance lease receivable equal to the net investment in the lease. Any difference between the carrying amount of the leased asset at the commencement date and its fair value is recognized as a gain or loss on lease asset disposal in the current period. Furthermore, interest income is recognized using the effective interest rate method on the Company's net investment in finance leases receivable outstanding. Direct costs incurred in connection with finance leases are included in the initial recognition of finance lease receivables and are amortized over the lease term, reducing revenue recognized over the lease term.

② Operating Lease

For operating leases, lease income is recognized on a straight-line basis over the lease term. Direct costs incurred in the negotiation and contract stages of operating leases are recognized in addition to the carrying amount of the underlying asset. Additionally, depreciation of operating lease assets is accounted for similarly to depreciation of other similar assets owned by the Company.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(k) Property, plant, and equipment

Land is not depreciated. Other property and equipment are depreciated on a straight-line method which is the most appropriately reflect the expected consumption pattern of the future economic benefits inherent in the asset over the estimated useful lives, for the acquisition cost after subtracting the residual value. The estimated useful lives for the current and comparative periods are as follows:

The estimated useful life for the years ended December 31, 2025 and 2024 are as follows:

Classification		Expected useful life
Building		50 years
Structure		20 years
Rental property		5 years or rental period
Vehicle		5 years
Tools		5 years

(l) Intangible assets

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

Amortization of intangible assets is carried out on a straight-line basis over their estimated useful lives from the date they are available for use, with a residual value of zero. However, for certain intangible assets, where the period over which they are expected to be available for use is not reasonably determinable, the useful life of the intangible assets is considered indefinite, and therefore, not subject to amortization.

Classification		Expected useful life
Development cost		5 years
Software		5 years
License		10 years

(m) Investment properties

Investment property is measured initially at its cost including transaction costs incurred in acquiring the asset. After recognition as an asset, investment property is carried at cost less accumulated depreciation and accumulated impairment losses.

Land held for investment is not depreciated. Investment property, except for land, is depreciated using straight-line method over their useful lives of 50 years.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(n) Employee benefits

i) Short-term employee benefits

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

ii) Other long-term employee benefits

The Company’s net obligation in respect of other long-term employee benefits that are not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

iii) Retirement benefits

① Defined benefit plans

As of December 31, 2025, defined benefit liabilities related to the defined benefit plan are recognized by deducting the fair value of external reserve from the present value of the defined benefit plan debt.

The defined benefit liability is calculated by an independent actuary every year. If the net amount calculated by deducting the fair value of the plan assets from the present value of the defined benefit obligation is an asset, the asset is recognized up to the limit of the present value of the economic benefits available in such a way as to receive a refund from the plan or to reduce future contributions to the plan.

(o) Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract

i) Definition and classification of insurance contracts

The Company classifies the insurance contract issued as an insurance contract when assuming significant insurance risk from the policyholder, regardless of its legal form. It is classified as an insurance contract if, based on present value, there is a potential loss exposure and if, under any commercially plausible scenario, significant additional payments (determined on a present value basis) would be required to the policyholder. The assessment of assuming significant insurance risk is performed for each contract at the time of issuance. For reinsurance contracts, they are classified as insurance contracts when transferring significant insurance risk to the reinsurer. Additionally, contracts with discretionary participation features are also classified as insurance contracts.

Among the insurance contracts held by the Group, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulations on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by the Company are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

As of December 31, 2025, the present value of estimated future cash flows related to the Group’s participating insurance contracts amounted to W4,719,405 million. This amount was measured based on reasonable assumptions and available information as of December 31, 2025. The key assumptions affecting the measurement of insurance liabilities and the effects (sensitivity) of changes in each assumption on the fulfilment cash flows, including the best estimate of future cash flows (BEL) and the risk adjustment for non-financial risk (RA), and the contractual service margin (CSM) are described in detail in Note 6.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)

• Unit of account

The Company identifies portfolios of insurance contracts by integrating insurance contracts that are subjected to similar risks and managed together based on coverage, currency, and interest rate types. The Company divides a portfolio of insurance contracts issued into the following groups of insurance contracts based on similarity of profitability. However, for contracts issued to which the Company applies the premium allocation approach, the Company shall assume no contracts in the portfolio are onerous (or net gain for reinsurance) at initial recognition, unless facts and circumstances indicate otherwise.

A group of insurance contracts issued:

• a group of contracts that are onerous at initial recognition

• a group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently

• a group of the remaining contracts

A group of reinsurance contract held:

• a group of contracts with net profit at initial recognition

• a group of contracts that at initial recognition have no significant possibility of net gain subsequently

• a group of the remaining contracts

The Company does not include contracts issued more than one year apart in the same group, and it does not reassess the composition of the group subsequently.

② Recognition of group of insurance contracts

The Company recognizes the group of insurance contracts it issues from the earliest of the following .

• The beginning of the coverage period of the group of contracts;

• The date when the first payment from a policyholder in the group becomes due (If there is no contractual payment due date, the time the first premium is received is considered that date); and

• For a group of onerous contracts, when the group becomes onerous.

The Company recognizes a group of reinsurance contracts held at the beginning of the coverage period of the group of insurance contracts held. However, in the case of non-proportional reinsurance where the ceding group of contracts is a onerous portfolio and the reinsurance contract is entered into either at the commencement of the coverage period of that onerous ceding group of insurance contracts or earlier, the Company recognizes the group of reinsurance contracts on the earlier of the commencement of the coverage period for the group of reinsurance contracts and the recognition date of the onerous ceding group of insurance contracts. In addition, in the case of proportional reinsurance, the Company recognizes the group of reinsurance contracts held at the time of initial recognition of the group of underlying insurance contracts, if the initial recognition time of the group of underlying insurance contracts is later than the beginning of the coverage period of the group of reinsurance contracts held.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model

On initial recognition, the Company measures a group of insurance contracts issued as the sum of the fulfillment cash flows comprising estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows , and risk adjustments to non-financial risk and the contractual service margin, and subsequently, as the sum of the liability or asset of for remaining coverage comprising the fulfillment cash flows and the contractual service margin and liability or asset for incurred claims comprising the fulfillment cash flows. The liability for remaining coverage includes the obligation to investigate and pay reasonable insurance benefits according to the current insurance contract for insurance events that have not yet occurred, the obligation to pay amounts related to insurance contract services that have not yet been provided, the obligation to pay amounts related to insurance contract services that have not yet been provided, and represents the obligation to pay investment components and other amounts that have not been transferred to incurred liability. The liability for incurred claims comprises the obligation to investigate insurance events that have already occurred and pay reasonable insurance claims and other incurred insurance costs, the obligation to pay amounts related to insurance contract services already provided, and obligation to pay investment elements and other amounts not related to insurance contract services and not included in the liability for remaining coverage.

• The estimate of future cash flows

The Company estimates future cash flows using a probability-weighted average based on all relevant, reliable, and neutral information available without undue cost or effort regarding the timing, scope, and uncertainty of future cash flows. Estimates for market variables are consistent with observable market prices and reflect the perspective of the entity, while estimates for non-market variables incorporate all reasonable and reliable internal and external evidence available without undue cost or effort, while ensuring consistency with observable market variables. The Company segregates the future cash flows of reinsurance contracts from those of the underlying insurance contracts and measures them separately, using assumptions consistent with the underlying direct insurance contracts issued but including the effects risk of failure of the debtor.

• Future cash flows within the contract boundary

The Company includes all future cash flows within the boundary of the group of insurance contracts issued when measuring the group. Cash flows within the contract boundary refer to cash flows up to the reporting period in which there exists a substantive right or obligation to compel the policyholder to pay premiums (or compel the reinsurer to pay reinsurance premiums for group of reinsurance contracts) or to provide substantive services under the insurance contract (or receive substantive services from the reinsurer for group of reinsurance contracts). Cash flows within the contract boundary include premiums from policyholders, claims and benefits payable to policyholders (including payments linked to underlying items), insurance claim handling expenses, options and guarantees embedded in cash flows, insurance acquisition cash flows directly attributable to the contract or its portfolio, fixed/variable indirect expenses directly attributable to fulfilling the insurance contract, costs related to investment activities and the provision of investment return services/investment-related services, insurance policy loans, etc; and excludes investment income or future insurance-related cash flows, product development expenses, and training expenses not directly attributable to the insurance contract portfolio

The substantive obligation to provide insurance contract services (or the substantive right to receive insurance contract services for group of reinsurance contracts) terminates when there is actual ability to reassess the risk of specific policyholders or portfolios (or risks transferred to reinsurers for group of reinsurance contracts) and, as a result, to fully reflect such risks in pricing or settlement. Risks related to periods after the reassessment date are not considered when reevaluating the portfolio's pricing. The Company reassesses the boundary of the contract at the end of each reporting period to reflect changes in circumstances affecting substantive rights and obligations.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities) (continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)

• Discretionary cash flows

The Company identifies and distinguishes the effects of discretionary cash flow variations, which pertain to amounts or timing of cash flows subject to discretion, and the effects of changes in assumptions related to financial risks on the recognition, separately. Any impact of changes in discretion on recognition is adjusted in contractual service margin. The Company considers any adjustment rate applied to the benchmark rate as discretionary when applying the crediting rate to payments to policyholders.

• Insurance acquisition cash flows

The Company allocates insurance acquisition cash flows directly attributable to the group of insurance contracts in a reasonable and systematic manner based on future group of insurance contracts that will be recognized as a result of renewals within the portfolio and the insurance contracts included in that portfolio. After allocation, insurance acquisition cash flows recognized as an asset is evaluated for recoverability at the end of each reporting period if there is evidence or indication of impairment, and any impairment losses are recognized in the income statement and adjust the carrying amount of an asset for insurance acquisition cash flows. The asset for insurance acquisition cash flows is removed when the related group of insurance contracts is initially recognized and included in the measurement of the fulfillment cash flows for that group of insurance contracts.

• Discount rate

The Company measures the time value of money using a discount rate that reflects the cash flow and liquidity characteristics of insurance contracts while being consistent with current observable market prices and then adjusts future cash flow estimates. To do this, the Company calculates a risk-free interest rate term structure using the Smith-Wilson interpolation method, incorporating yields on government bonds with maturities observed in the market up to the longest term available, along with initial convergence periods and long-term lead rates. Liquidity premiums are then added to determine deterministic scenarios. The liquidity premium is derived by multiplying an adjustment ratio to the difference between the risk spread of the representative insurance industry portfolio and the credit risk spread. Additionally, the Company generates 1,000 stochastic scenarios based on this deterministic scenario, reflecting convergence speed parameters and volatility parameters. Deterministic and stochastic scenarios for foreign currencies are calculated separately from scenarios for the currency of Korean Won, taking into account the characteristics of each currency.

• Risk adjustment for non-financial risk

The Company explicitly reflects between estimated future cash flows and discount rates, reflecting the compensation of the uncertainty surrounding the amounts and timing of cash flows arising from non-financial risks through adjustments for non-financial risk. These adjustments are made in accordance with insurance regulations and are allocated at the individual contract level through reasonable and systematic methods. For reinsurance contracts held, adjustments for non-financial risk are calculated to reflect the risk transferred from the holder of the reinsurance contract to the reinsurer, consistent with the assumptions applied in the underlying insurance contracts issued.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities) (continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)

• Contractual service margin

At the time of initial recognition of a group of insurance contracts issued, the Company measures the contractual service margin, which is unrealized profit that will be recognized as insurance contract services are provided in the future, as the amount that does not recognize revenue or expenses from:

ⅰ) The amount of fulfillment future cash flows expected at initial recognition date for the group of insurance contracts.

ⅱ) All cash flows already incurred from contracts within the group of insurance contracts at the initial recognition date.

ⅲ) The acquisition cash flows allocated to the group of insurance contracts at the initial recognition date.

ⅳ) Other assets or liabilities recognized previously for cash flows associated with the group of insurance contracts at the initial recognition date.

In the case of a reinsurance contracts held, the net cost or net gain on purchasing a group of the reinsurance contracts held is recognized as contractual service margin. However, if the net cost of purchasing reinsurance coverage is related to costs incurred prior to purchasing a group of reinsurance contracts held, it is recognized in profit or loss.

• The changes in fulfilment cashflows and contractual service margins

The Company re-estimates the future cash flows as of the end of each reporting period at current estimates. Changes in fulfilment cash flows related to the future service are adjusted in the contractual service margin, while change in fulfilment cash flows related the current and past service are recognized in profit or loss. The Company also adjusts the contractual service margins for experience adjustments related to future service-related premiums and related insurance acquisition cash flows, as well as for differences between expected and actual investment components. However, changes in the time value of money and financial risk, changes in estimated cash flows for liabilities for incurred claim, and other experience adjustments related to current and past services are not adjusted in the contractual service margins.

The Company calculates the carrying amounts of the contractual service margins at the end of the reporting period by adjusting the following amounts to the carrying amounts at the start of the reporting period.

ⅰ) the effect of any new contracts added to the group;

ⅱ) interest accreted on the carrying amount of the contractual service margins during the reporting period, measured at the discount rate determined at initial recognition;

ⅲ) the changes in fulfillment cash flows relating to future services except to the amounts of change in the fulfillment cash flows are allocated to the loss component or loss recovery component;

ⅳ) the effects of any currency exchange differences on the contractual service margin; and

ⅴ) the amounts recognized as insurance revenue because of the transfer of insurance contract services in the period.

• Loss components and loss recovery components

The Company considers an insurance contract as onerous contract at the date of initial recognition if the fulfilment cash flows allocated to the contract, any previously recognized insurance acquisition cash flows and cash flows and any cash flows arising from the contract at that date of initial recognition in total are a net outflow. Additionally, the Company considers a group of insurance contracts becomes onerous on subsequent measurement if unfavorable changes relating to future services in fulfillment cash flows allocated to the group of insurance contracts exceed the carrying amount of the contractual service margins.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities) (continued)

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)

The Company recognize a loss in profit or loss for the net outflow for the group of onerous contracts, resulting in the carrying amounts of the liability for the group being equal to the fulfillment cash flows and contractual service margin of the group being zero. Any portion at the initial recognition date in the group of onerous contracts that is expected to result in a net outflow or exceeds the carrying amount of the contractual service margin subsequently is considered a loss component of that portfolio and recognized as a loss in the current period. After recognizing the loss component, the Company systematically allocates changes relating to future services in fulfillment cash flows on subsequent measurement between the loss component and the others based on established criteria. However, favorable changes relating to future services in fulfillment cash flows on subsequent measurement are allocated only to the loss component until it is fully exhausted and recognized in the current period. Any excess beyond the loss component’s exhaustion is then recognized as contractual service margin again.

In the case of a group of reinsurance contracts held, when a loss component is recognized in the group of the underlying insurance contracts, the Company calculates the loss recovery component of the group of the reinsurance contracts held by multiplying the expected recovery ratio for claims under the group of the underlying insurance contracts by the loss component attributed to those claims. This loss recovery component is then used to adjust assets for the remaining coverage of the reinsurance group and to adjust the contractual service margin (or directly adjust the liabilities for remaining coverage if the premium allocation approach is applied) for recognition of the current period’s profit or loss. The loss recovery component is adjusted to reflect fluctuations in the loss component of the group of the underlying insurance contracts within the range that does not exceed the loss component’s carrying amount for the group of the underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)

④ Measurement of insurance liabilities (assets) under the variable fee approach

The Company applies the variable fee approach to measure insurance liabilities (assets) for insurance contracts with direct participation features that meet the following conditions at inception: The Company provides investment-related services at the commencement of the insurance contract, and the insurance contract has direct participation features. The Company does not reassess the following conditions unless there is a contract modification. The variable fee approach is not applied to reinsurance contracts held.

i) The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items

ii) The Company expects to pay to policyholder an amount equal to a substantial share of the fair value returns on the underlying items

iii) The Company expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.

In the variable fee approach, it is clear that the obligation to pay an amount equal to the fair value of the underlying items, deducted by the variable fee, constitutes the liability to the policyholder. The variable fee represents the amount deducted from the fair value of the underlying items, which is the portion not subject to fluctuations based on the performance of the underlying items. Fluctuations in the obligation to pay an amount equal to the fair value of the underlying items are not adjusted in the contractual service margin. However, adjustments are made in the contractual service margin for the portion of the fair value of the underlying items attributable to the Company and the fluctuation in the cash flows not subject to variations based on the performance of the underlying items.

The Company measures the fulfillment cash flows under variable fee approach at the initial recognition date and at the end of the reporting period using the same general model. The carrying amounts of the contractual service margin at the end of the reporting period under variable fee approach is adjusted the following amounts to the carrying amounts at the start of the reporting period.

i) the effect of any new contracts added to the group;

ii) the change in the amounts of the entity’s share of the fair value of underlying items excluding recognition and reversal of loss components;

iii) the changes in fulfillment cash flows relating future services excluding recognition and reversal of loss components;

iv) the effects of any currency exchange differences on the contractual service margins; and

v) the amounts recognized as insurance revenue because of the transfer of insurance contract services in the period.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)

⑤ Insurance liabilities (assets) and reinsurance assets (liabilities) measured under the premium allocation approach.

At the inception of a group of insurance contracts issued, if there is a reasonable expectation that the measurement of liabilities for remaining coverage under premium allocation approach does not differ materially from the one under the general model, and if the coverage period for all contracts within the group of insurance contracts issued is one year or less, the insurance liabilities (assets) are measured using the premium allocation approach, which is a simplified method compared to the general model.

The Company measures the residual insurance liabilities (assets) at the initial recognition by deducting from the cash received as premiums (or reinsurance premiums paid in the case of reinsurance contracts), the amount of insurance acquisition cash flows not immediately recognized as expenses (including amounts removed from assets). Subsequently, it determines the carrying amount by adding or subtracting the following amounts from the initial amount.

ⅰ) Premiums received during the reporting period. (Reinsurance premium paid for reinsurance contracts held)

ⅰⅰ) Insurance acquisition cash flows not recognized as expenses and amortization of those insurance acquisition cash flows

ⅲ) Adjustments related to significant financing component.

ⅳ) Amount recognized in profit or loss for the reporting period due to providing insurance contract services.

v) Investment component paid (received for reinsurance contracts held) or transferred to the liability for incurred claims.

The Company does not adjust the carrying amount of the Liabilities for remaining coverage at the initial recognition date if the coverage period of each contract within the group of insurance contracts does not exceed one year, in order to reflect the time value of money and the financial risk effect. Additionally, acquisition cash flows are recognized as expenses when they occur. However, if circumstances indicate that the group of insurance contracts incurs losses, the Company performs impairment tests. If the cash flows for the fulfillment exceed the carrying amount of the liabilities for remaining coverage, the difference is recognized as a loss in the current period and increases the liabilities for remaining coverage by the corresponding amount.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ⅲ) Recognition of insurance revenue and insurance service expenses

① Recognition of insurance revenue in general model and variable fee approach

Insurance revenue is measured as the amount expected to be received in exchange for providing insurance contract services for issued group of insurance contracts. It consists of the sum of changes in the residual insurance liabilities and amounts related to insurance acquisition cash flows.

ⅰ) Insurance service costs incurred during the period, measured at the amount estimated at the inception date (excluding transaction-related taxes collected on behalf of third parties, amounts allocated to loss components, insurance acquisition costs, amounts repayable to policyholders regardless of the occurrence of insurance events, and insurance contract loan execution amounts).

ⅱ) Changes in the risk adjustment for non-financial risk (excluding amounts allocated to loss components and changes related to future services).

ⅲ) Contractual service margin recognized in the current period as profit or loss, calculated based on the quantity of benefits payments and the expected duration of benefits for contracts within the group of insurance contracts, considering the frequency and severity of occurrence of benefits for the entire coverage units allocated to the current period.

ⅳ) Other amounts such as experience adjustments on premiums collected for current or past services.

Insurance revenue related to insurance acquisition cash flows is calculated by systematically allocating the portion of premiums associated with these cash flows over time, reflecting the recovery of these cash flows. The same amount is recognized as insurance service costs.

② Recognition of insurance revenue under the premium allocation approach.

Under the premium allocation approach, insurance revenue is recognized by allocating the expected premium income (excluding investment components) for services provided over each period. However, if the pattern of release of risk expected during the coverage period significantly differs from the passage of time, the expected premium income is allocated according to the pattern expected for the incurring of insurance service expenses.

③ Recognition of insurance service expenses

The insurance service expenses incurred as a result of issuing the group of insurance contracts issued consist of the following.

ⅰ) Increase in the liabilities for incurred claims and changes in the fulfilment cash flows related to premiums and expenses (excluding repayment of investment elements).

ⅱ) Amortization of insurance acquisition cash flows (the same amount is recognized as insurance revenue and insurance service expenses).

ⅲ) Loss component recognized in the group of onerous contracts at initial recognition and the changes of loss component relating the future services.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ⅲ) Recognition of insurance revenue and insurance service expenses (continued)

④ The recognition of reinsurance revenue and reinsurance service expenses for groups of reinsurance contracts held.

The revenue and expenses arising from group of reinsurance contract held is recognized by adopting the method of recognizing insurance service expenses and insurance revenue of underlying insurance contract, with adjustments made to reflect the characteristics of reinsurance contracts (revenue being the amount recovered from reinsurers and expenses being the allocated portion of premiums paid to reinsurers).

ⅳ) Modification and derecognition

The Company derecognizes the original contract and recognizes the modified contract as a new contract when the insurance contract terms are changed and specific criteria are met. If the contract modification does not meet such criteria, the effect of the contract modification is treated as changes in estimated of fulfilment cash flows. There were no instances during the current and prior periods where the original contract was derecognized and the modified contract was recognized as a new contract. When an insurance contract is extinguished (when the obligation specified in the insurance contract expires or is discharged or cancelled), the Company derecognizes the insurance contract, adjusts the estimated cash flows and contractual service margin related to the removed contract within the group of insurance contracts, and reflects the derecognized contract in the number of coverage units of the group of insurance contracts issued.

ⅴ) Change in accounting treatment of accounting estimates measured in the interim financial statements

The Company has adopted an accounting policy of not changing the accounting treatment of accounting estimates measured in interim financial statements when preparing subsequent interim financial statements and annual financial statements.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(p) Insurance contract (continued)

ⅵ) Presentation

The Company separately presents the carrying amounts of insurance contract portfolio, which is an asset, the carrying amounts of the insurance contract portfolio, which is a liability, the carrying amounts of the reinsurance contract portfolio held, which is an asset, and the carrying amounts of the reinsurance contract portfolio held, which is a liability, respectively, in the separate statement of financial position. Furthermore, it distinguishes between insurance revenue and reinsurance service expenses, as well as insurance service expenses and reinsurance revenue, without offsetting them against each other in the separate statement of comprehensive income.

The Company includes the time value of money and the effects of financial risks, as well as their fluctuations, in insurance finance income (expenses). The Company has chosen an accounting policy to differentiate between insurance finance income (expenses) for the period as either recognized in the current income or in other comprehensive income. For groups of insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to the policyholders, the finance income (expenses) is determined using an allocation that is based on the amounts credited in the period and expected to be credited in future periods. For other insurance groups, the effective interest rate determined at initial recognition is used to calculate insurance finance income (expenses) recognized in the current period. In cases where the variable fee approach is applied to insurance groups holding underlying items, the amount recognized as insurance finance income (expenses) in the current period is determined to eliminate accounting mismatches with the underlying items and recognized in the current income.

(q) Hybrid bonds

The Company classifies an issued financial instrument, or its component parts, as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. Hybrid bonds where the Company has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation are classified as an equity instrument and presented as part of equity.

(r) Income tax

Shinhan Financial Group, the parent company of the Company, reported and paid corporate taxes by considering the entire domestic subsidiary company, including the Company, as a single tax unit, and the consolidated tax burden amount was counted as the current corporate tax liability. The deferred tax liabilities and assets are recognized as temporary differences between the carrying amount of assets and liabilities and the tax value, and items directly attributable to the Company among the future tax burden to be paid for tax losses and tax credits that can be carried forward and deducted.

The carrying value of deferred tax assets is reviewed at the end of each reporting period. The carrying value of deferred tax assets is reduced when it is no longer likely that sufficient taxable income will be generated to use benefits from deferred tax assets.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

3. Material accounting policies (continued)

(s) New standards and amendments not yet adopted by the Company

At the date of authorization of these financial statements, the Company has not applied the following new and revised K-IFRS Standards that have been issued but are not yet effective:

i) K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures’ – Classification and measurement requirements of financial instruments

In response to questions raised in practice and to incorporate new requirements, K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures’ were amended. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with early application permitted. The principal amendments are as follows. The group does not anticipate that the application of these amendments will have a material impact on its financial statements.

• Permits, subject to specified criteria, a financial liability to be considered settled (derecognized) before the settlement date when it is settled through an electronic payment system

• Clarifies and adds guidance for assessing whether a financial asset meets the criterion of consisting solely of payments of principal and interest

• Requires disclosures, by class of financial instrument, of the effect on the entity of contractual terms that change the timing or amount of contractual cash flows and the extent of the entity’s exposure

• Introduces additional disclosures for equity instruments designated at fair value through other comprehensive income

ii) K-IFRS 1118 ‘Presentation and Disclosure in Financial Statements’

K-IFRS 1118 ‘Presentation and Disclosure in Financial Statements’ replaces K-IFRS 1001 ‘Presentation of Financial Statements’ and introduces new requirements aimed at enhancing the comparability of financial performance among similar entities and providing users with more decision-useful information. The Company expects that the amendments will not affect the recognition or measurement of items in the financial statements and is assessing their impact on presentation and disclosure, including the statement of profit or loss and the disclosure of management-defined performance measures (MPMs).

K-IFRS 1118 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. In accordance with the standard’s retrospective application requirements, comparative information for the annual reporting period ended December 31, 2026 will be restated in accordance with K-IFRS 1118.

iii) K-IFRS Annual Improvements

K-IFRS annual improvements are applied for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. There will be no material impact on the separate financial statements from these amendments.

• K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards – Hedging accounting by a first-time adopter

• K-IFRS 1107 Financial Instruments: Disclosures – Gain or loss on derecognition

• K-IFRS 1109 Financial Instruments – Derecognition of lease liabilities and transaction price

• K-IFRS 1110 Consolidated Financial Statements – Determination of ‘de facto agent’

• K-IFRS 1007 Statement of Cash Flows: Cost method

• K-IFRS 1109 Financial Instruments and K-IFRS 1107 Financial Instruments: Disclosures – Contracts referencing nature-dependent electricity

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

4. Summary of financial information

For the year ended December 31, 2025, the Company recognized (i) operating profit of W796,686 million, consisting of W704,153 million of insurance service result and W92,533 million of net finance result; (ii) W148 million of non-operating expense; and (iii) W515,916 million of profit for the period.

The operating profit increased by W58,117 million, insurance service result increased by W45,772 million, net finance result increased by W12,345 million, and profit for the period decreased by W17,765 million as compared to the year ended December 31, 2024.

Insurance service result for the year ended December 31, 2025 includes revenue from the contractual service margin recognized in profit or loss for services provided amounting to W735,228 million, and changes in risk adjustment amounting to W185,069 million; and includes W(-)14,443 million and W15,931 million of experience adjustments on claims and operating expenses, respectively.

The insurance service result increased by W45,772 million as compared to the year ended December 31, 2024 mainly due to an increase in the changes in risk adjustment, partially offset by decreases in experience adjustments.

Net finance result for the year ended December 31, 2025 includes W1,397,700 million of net interest income, W2,775,259 million of net insurance finance expenses, and W1,470,092 million of net investment income on securities and others.

The net finance result has increased by W12,345 million as compared to the year ended December 31, 2024 mainly due to an increase in investment income on securities and others, partially offset by decreases in net interest income and net insurance finance expenses.

Total assets are W59,448,032 million as of December 31, 2025, including W13,265,276 million of financial assets at fair value through profit or loss, W35,288,458 million of securities at fair value through other comprehensive income, W3,950,344 of securities at amortized cost, W2,255,261 million of loans, W2,286,855 million of cash and due from banks, and W2,401,838 of derivative assets and others.

Total assets decreased by W169,764 million as compared to the year ended December 31, 2024, mainly due to a decrease of securities at fair value through other comprehensive income caused by the increases in interest rates.

Total liabilities are W53,208,738 million as of December 31, 2025, including W47,912,623 million of insurance contract liabilities (for which the estimates of present value of future cash flows and contractual service margin are W38,960,420 million and W7,553,736 million, respectively); and W5,296,115 million of reinsurance contract liabilities, investment contract liabilities and others in total.

Total liabilities increased by W653,244 million as compared to the year ended December 31, 2024, mainly due to an increase in other liabilities resulting from the issuance of subordinated bonds, partially offset by a decrease in the estimates of present value of future cash flows caused by the increases in interest rates.

Total equity is W6,239,294 million as of December 31, 2025, including W578,274 million of capital stock, W820,023 million of capital surplus, W6,968,397 million of retained earnings, and W2,128,291 million of accumulated other comprehensive loss.

Total equity decreased by W823,008 million as compared to the year ended December 31, 2024, mainly due to a decrease in accumulated other comprehensive income caused by annual dividend paid, changes in discount rate assumptions, and other regulatory effects.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management

(a) Risk management overview

The Company operates a risk management system in order to systematically identify and measure various risks that may arise throughout the Company's overall business and manage them efficiently at a group-wide level, thereby promoting the Company's sound and sustainable development.

The main risks being managed include credit risk, market risk, interest rate risk, operational risk and liquidity risk. These risks are identified, measured, controlled, and reported in accordance with the risk management guidelines.

i) Risk management principles

The Company’s risk management is guided by the following core principles:

• Carry out all operating activities within a predetermined risk appetite, in consideration of the balance of risk and returns;
• Operate a risk management-related decision-making system that enhances management involvement;
• Organize and operate a risk management organization that is independent from the sales and asset management departments;
• Operate a performance management system that explicitly takes into account risks when making business decisions.
• Aim for preemptive and practical risk management functions;
• Share a careful view to prepare for possible deterioration of the situation even in normal conditions;
• Diversify risks to prevent concentration of risks in specific sectors; and
• Follow formal procedures or methods, such as documentation.

ii) Risk management organization

The basic policies and strategies for risk management are established by the Risk Management Committee within the Board of Directors. The Chief Risk-management Officer (“CRO”) assists the Risk Management Committee and establishes and implements detailed risk policies and strategies through the Risk Management Steering Committee, Investment Steering Committee, and the organization exclusively in charge of risk management.

① Risk Management Committee

The Risk Management Committee serves as the highest decision-making body for risk management. Chaired by an outside director, the Committee operates on a regular basis. It has established a comprehensive management system to formulate risk management policies—including the identification, measurement, monitoring, and control of risks—and to ensure that such risks are appropriately evaluated and managed.

② Risk Management Steering Committee

The Risk Management Steering Committee, as a committee under the Risk Management Committee, is established to comprehensively manage risks that may arise in the course of business at an operational level and performs the detailed tasks delegated by the Risk Management Committee for the efficient implementation of its risk management and resolution matters.

③ Investment Steering Committee

The Investment Steering Committee is responsible for making credit and investment decisions, credit risk management and credit policy. The Risk Management Committee delegates details for risk management and efficient implementation of resolutions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(a) Risk management overview (continued)

iii) Risk management procedures

The Company manages risks by identifying, measuring, and evaluating the various risks that the Company is exposed; controlling the risks by reflecting in management strategies and policies; and re-identifying risks through monitoring.

① Risk identification: identify risks by type that may occur in management activities, such as credit, market, interest rate, liquidity, etc.

② Risk measurement and evaluation: measure risk capital based on external (set by the Financial Service Commission) and internal standards and evaluate capital adequacy

③ Risk control: establish controls such as risk limits and appropriate investment limits and implement management framework

④ Risk monitoring: monitor any indicators of exceeding limits and risk factors regularly and report the results to management and committees.

(b) Credit risk

ⅰ) Definition and management objective

Credit risk is the risk of potential economic loss or the risk of a counterparty failing to meet its contractual obligations within terms of deposits, loans, securities etc., in which funds are provided in the form of loans or bond purchases, or a legal agreement of an underlying asset at a predetermined price to be exchanged at a specific future date, due to bankruptcy of a debtor, decrease in credit ratings, counterparty default etc. The Company aims to maintain risks within the manageable level and to minimize the realization of the risk.

ii) Management principles

The Company manages credit risk based on the following core principles:

① Establish credit quality management indicators and limits for credit loans, etc. and comply with them;

② Manage credit risk by credit analysis on a regular basis;

③ Comply with the credit risk limits and investment limits; and

④ Manage assets by organizing appropriate investment portfolios and avoid concentrations in any investments.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

iii) Risk management

The Company manages various credit risks that may arise in loans, securities other than trading position, related non-operating assets, investments in associates and subsidiaries, deposits and due from banks, over-the-counter derivatives, and others.

① Risk Measurement Method

Credit risk is measured by inputting risk components according to the Company’s internal credit risk capital calculation method, and the calculation formula is as follows:

EAD(Exposure At Default) × f(PD, LGD, R, M)

Where:

EAD is exposure at default

PD is probability of default

LGD is loss given default

R is correlation

M is maturity

f is a function to calculate capital requirements outlined in the Basel

② Risk limit management and risk mitigation policy

The Company sets limits on credit allowances for each industry, affiliate, and corporate to manage credit risk. The risk management department monitors the compliance with those limits on a daily basis, the result of which is regularly reported to the management, as well as the Risk Management Committee.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

iv) Recognition and measurement of expected credit losses

① How to determine whether credit risk increases significantly after initial recognition

The Company assesses at the end of each reporting period whether the credit risk of a financial instrument has significantly increased since its initial recognition, and when assessing the significant increase in credit risk, the Company uses changes in the risk of a default occurring over the expected life of financial instrument, instead of using the changes in expected credit losses.

(i) Significant increase in credit risk

The Company considers that the credit risk of a financial asset has increased significantly after the initial recognition, if the number of days overdue for a specific exposure exceeds 30 days. The Company calculates overdue days from the earliest date when the Company has not fully received the contractual payments to be received from the borrower and the grace period granted to the borrower is not considered.

The Company periodically reviews the criteria for determining whether credit risk has increased significantly from the following points of view:

• A significant increase in credit risk shall be identified prior to the occurrence of default.

• The criteria established to judge the significant increase in credit risk shall have a more predictive power than the criteria for days of delinquency.

• As a result of applying the judgment criteria, financial instruments shall not be to move too frequently between the 12-months expected credit losses measurement and the lifetime expected credit losses measurement.

② Modified financial assets

If the contractual cash flows on a financial asset have been renegotiated or modified but the financial asset was not derecognized, the Company assesses whether there has been a significant increase in the credit risk of the financial instrument by comparing the risk of a default occurring at initial recognition based on the original, unmodified contractual terms and the risk of a default occurring at the reporting date based on the modified contractual terms.

Debt restructuring is a qualitative indicator of a significant increase in credit risk and the Company recognizes lifetime expected credit losses for the exposure expected to be the subject of such adjustments. If a borrower faithfully makes payments of contractual cash flows that were modified in accordance with the debt restructuring or if the borrower's internal credit rating has recovered to the level prior to the recognition of the lifetime expected credit losses, the Company recognizes the 12-months expected credit losses for that exposure again.

③ Risk of default

The Company considers a financial asset to be in default if it meets one or more of the following conditions:

• If a borrower is overdue 90 days or more from the contractual payment date,

• If the Company judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The definition of default applied by the Company generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has incurred and the extent thereof may vary.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

iv) Recognition and measurement of expected credit losses (continued)

④ Reflection of forward-looking information

The Company reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Company utilizes economic forecasts disclosed by domestic and foreign research institutes, governments, and public institutions to predict forward-looking information.

⑤ Measurement of expected credit loss

The main variables used to measure expected credit loss are as follows:

• Probability of Default (PD)

• Loss Given Default (LGD)

• Exposure At Default (EAD)

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Company and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Company uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades would be adjusted, and the PD by grade is estimated by considering contract expiration of the exposure.

LGD refers to the expected loss if a borrower defaults. The Company calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Company derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying value of the asset, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

Risk factors of PD, LGD and EAD are collectively estimated.

The criteria classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if necessary. The Company uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from the experience.

⑥ Write-off of financial assets

The Company writes off a portion of or entire loan or debt security that is not expected to receive its principal and interest. In general, the Company conducts write-off when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Company and is carried out with the approval of an external institution, if necessary. Apart from write-off, the Company may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

v) Maximum exposure to credit risk

Credit risk exposure the exposure related to due from banks, loans, investments in debt securities, derivative transactions, off-balance sheet accounts such as loan commitment.

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows:

					2025
		General<br><br>(*1)			Investment-linked (*2)		Total
Due from banks and loans at amortized cost (*3)(*4):
Banks	W	911,255			333,521		1,244,776
Retail
- Residential mortgage		351,850			-		351,850
- Others		183,117			-		183,117
Government/Public institutions/Central bank		150,085			41,300		191,385
Corporations
- Conglomerate		706,600			205,231		911,831
- SMEs		149,981			-		149,981
- Special financing		1,509,176			-		1,509,176
		3,962,064			580,052		4,542,116
Due from banks at fair value through profit or loss:
Banks		40,862			-		40,862
Securities at fair value through profit or loss		7,536,867			3,778,468		11,315,335
Securities at fair value through other comprehensive income		35,186,507			-		35,186,507
Securities at amortized cost (*4)		3,950,344			-		3,950,344
Derivative assets		33,817			657		34,474
Receivables at amortized cost (*4)		1,089,816			107,160		1,196,976
Off-balance sheet accounts
Unused loan commitments		373,782			-		373,782
Capital commitments		1,304,582			-		1,304,582
		1,678,364			-		1,678,364
	W	53,478,641			4,466,337		57,944,978

(*1) This is the total amount of general accounts and principal-and-interest guaranteed retirement pension products.

(*2) This is the total amount of variable life insurance and investment-linked retirement pension products.

(*3) The due from banks at amortized cost includes cash equivalents.

(*4) The maximum exposure amount to due from banks and loans at amortized cost, securities at amortized cost, and receivables at amortized cost is the carrying amount, net of credit loss allowance, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

v) Maximum exposure to credit risk (continued)

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows: (continued)

					2024
		General<br><br>(*1)			Investment-linked (*2)		Total
Due from banks and loans at amortized cost (*3)(*4):
Banks	W	932,763			291,575		1,224,338
Retail
- Residential mortgage		429,318			-		429,318
- Others		268,572			-		268,572
Government/Public institutions/Central bank		160,057			40,900		200,957
Corporations
- Conglomerate		45,188			121,954		167,142
- SMEs		168,292			-		168,292
- Special financing		1,879,706			-		1,879,706
		3,883,896			454,429		4,338,325
Due from banks at fair value through profit or loss:
Banks		35,450			-		35,450
Securities at fair value through profit or loss		6,587,790			3,768,210		10,356,000
Securities at fair value through other comprehensive income		37,486,020			-		37,486,020
Securities at amortized cost (*4)		3,931,915			-		3,931,915
Derivative assets		117,425			97		117,522
Receivables at amortized cost (*4)		1,029,633			114,995		1,144,628
Off-balance sheet accounts
Unused loan commitments		164,307			-		164,307
Capital commitments		1,354,692			-		1,354,692
		1,518,999			-		1,518,999
	W	54,591,128			4,337,731		58,928,859

(*1) This is the total amount of general accounts and principal-and-interest guaranteed retirement pension products.

(*2) This is the total amount of variable life insurance and investment-linked retirement pension products.

(*3) The due from banks at amortized cost includes cash equivalents.

(*4) The maximum exposure amount to due from banks and loans at amortized cost, securities at amortized cost, and receivables at amortized cost is the carrying amount, net of credit loss allowance, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows:

		2025
		12-month expected credit loss				Lifetime expected credit loss				Total		Allowances		Net		Mitigation of credit risk<br><br>due to collateral
		Grade 1(*1)		Grade 2(*1)		Grade 2(*1)		Impaired
Due from banks and loans at amortized cost (*2):
Banks	W	1,244,253		685		-		-		1,244,938		(162)		1,244,776		-
Retail
- Residential mortgage		333,100		6,346		9,637		3,232		352,315		(465)		351,850		347,381
- Others		162,033		17,529		5,900		16,756		202,218		(19,101)		183,117		-
Government/Public institutions/Central bank		191,447		-		-		-		191,447		(62)		191,385		-
Corporations
- Conglomerate		856,576		55,463		-		3,591		915,630		(3,799)		911,831		-
- SMEs		140,000		10,011		-		-		150,011		(30)		149,981		9,898
- Special financing		1,421,575		-		92,241		-		1,513,816		(4,640)		1,509,176		272,845
		4,348,984		90,034		107,778		23,579		4,570,375		(28,259)		4,542,116		630,124
Securities at fair value through other comprehensive income (*3)		35,186,507		-		-		-		35,186,507		-		35,186,507		-
Securities at amortized cost		3,950,527		-		-		-		3,950,527		(183)		3,950,344		-
Receivables at amortized cost		1,191,660		107		2,214		27,524		1,221,505		(24,529)		1,196,976		1,427
	W	44,677,678		90,141		109,992		51,103		44,928,914		(52,971)		44,875,943		631,551

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments (continued)

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

(*1) Each credit quality grade refers to as follows:

Type of Borrower		Grade 1		Grade 2
Retail		Internal credit rating of 5 or above		Internal credit rating of below 5
Governments/public institutions/central bank		OECD sovereign credit rating of 6 or above		OECD sovereign credit rating of below 6
Corporations		Internal credit rating of BBB+ or above		Internal credit rating of below BBB+

(*2) The due from banks at amortized cost includes cash equivalents.

(*3) Provision for credit loss allowance for securities at fair value through other comprehensive income amounted to W6,297 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments (continued)

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		12-month expected credit loss				Lifetime expected credit loss				Total		Allowances		Net		Mitigation of credit risk<br><br>due to collateral
		Grade 1(*1)		Grade 2(*1)		Grade 2(*1)		Impaired
Due from banks and loans at amortized cost (*2):
Banks	W	1,224,101		470		-		-		1,224,571		(233)		1,224,338		-
Retail
- Residential mortgage		405,191		9,175		12,042		3,330		429,738		(420)		429,318		423,658
- Others		241,302		26,824		10,756		14,644		293,526		(24,954)		268,572		-
Government/Public institutions/Central bank		201,024		-		-		-		201,024		(67)		200,957		-
Corporations
- Conglomerate		147,072		17,944		3,591		-		168,607		(1,465)		167,142		-
- SMEs		158,427		9,927		-		-		168,354		(62)		168,292		9,857
- Special financing		1,629,475		-		259,483		-		1,888,958		(9,252)		1,879,706		245,318
		4,006,592		64,340		285,872		17,974		4,374,778		(36,453)		4,338,325		678,833
Securities at fair value through other comprehensive income (*3)		37,486,020		-		-		-		37,486,020		-		37,486,020		-
Securities at amortized cost		3,932,100		-		-		-		3,932,100		(185)		3,931,915		-
Receivables at amortized cost		1,138,588		222		2,498		36,207		1,177,515		(32,887)		1,144,628		1,167
	W	46,563,300		64,562		288,370		54,181		46,970,413		(69,525)		46,900,888		680,000

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vi) Impairment information by credit risk of financial instruments (continued)

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

(*1) Each credit quality grade refers to as follows:

Type of Borrower		Grade 1		Grade 2
Retail		Internal credit rating of 5 or above		Internal credit rating of below 5
Governments/public institutions/central bank		OECD sovereign credit rating of 6 or above		OECD sovereign credit rating of below 6
Corporations		Internal credit rating of BBB+ or above		Internal credit rating of below BBB+

(*2) The due from banks at amortized cost includes cash equivalents.

(*3) Provision for credit loss allowance for securities at fair value through other comprehensive income amounted to W7,565 million.

Impairment information related to credit risk of off-balance sheet accounts

Impairment information related to credit risk of unused loan commitments and capital commitments as of December 31, 2025 and 2024 are as follows:

		2025				2024
		Credit risk exposure for<br><br>12-month expected credit loss		Lifetime expected credit loss		Credit risk exposure for<br><br>12-month expected credit loss		Lifetime expected<br><br>credit loss
Grade 1	W	1,678,364		-		1,518,757		-
Grade 2		-		-		-		242
	W	1,678,364		-		1,518,757		242

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vii) Concentration by industry sector

An analysis of concentration by industry sector for financial instruments held, net of allowance, as of December 31, 2025 and 2024 are as follows:

		2025
		Finance and insurance		Manufacturing		Retail and wholesale		Real estate and service		Construction service		Hotel and food service		Others		Retail		Total
Due from banks and loans at amortized cost (*):
Banks	W	1,244,776		-		-		-		-		-		-		-		1,244,776
Retail
- Residential mortgage		-		-		-		-		-		-		-		351,850		351,850
- Others		-		-		-		-		-		-		-		183,117		183,117
Government/Public institutions/Central bank		149,949		-		-		-		-		-		41,436		-		191,385
Corporations
- Conglomerate		891,909		19,922		-		-		-		-		-		-		911,831
- SMEs		140,005		-		-		9,898		-		-		78		-		149,981
- Special financing		194,120		13,796		-		716,360		-		-		584,900		-		1,509,176
		2,620,759		33,718		-		726,258		-		-		626,414		534,967		4,542,116
Due from banks at fair value through profit or loss		40,862		-		-		-		-		-		-		-		40,862
Securities at fair value through profit or loss		500,927		39,195		9,903		66,018		4,707		-		10,694,585		-		11,315,335
Securities at fair value through other comprehensive income		5,714,492		856,204		125,364		934,951		346,947		12,345		27,196,204		-		35,186,507
Securities at amortized cost		159,983		-		-		117,502		9,996		-		3,662,863		-		3,950,344
Derivative assets		34,474		-		-		-		-		-		-		-		34,474
Off-balance sheet accounts
Unused loan commitments		26,180		-		-		305,867		-		-		41,735		-		373,782
Capital commitments		-		-		-		-		-		-		1,304,582		-		1,304,582
	W	9,097,677		929,117		135,267		2,150,596		361,650		12,345		43,526,383		534,967		56,748,002

(*) Due from banks at amortized cost includes cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

vii) Concentration by industry sector (continued)

An analysis of concentration by industry sector for financial instruments held, net of allowance, as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Finance and insurance		Manufacturing		Retail and wholesale		Real estate and service		Construction service		Hotel and food service		Others		Retail		Total
Due from banks and loans at amortized cost (*):
Banks	W	1,224,338		-		-		-		-		-		-		-		1,224,338
Retail
- Residential mortgage		-		-		-		-		-		-		-		429,318		429,318
- Others		-		-		-		-		-		-		-		268,572		268,572
Government/Public institutions/Central bank		159,941		-		-		-		-		-		41,016		-		200,957
Corporations
- Conglomerate		144,428		19,921		-		-		-		-		2,793		-		167,142
- SMEs		883		5,974		-		139,998		-		9,857		11,580		-		168,292
- Special financing		13,347		109,102		-		939,088		105,711		-		712,458		-		1,879,706
		1,542,937		134,997		-		1,079,086		105,711		9,857		767,847		697,890		4,338,325
Due from banks at fair value through profit or loss		35,450		-		-		-		-		-		-		-		35,450
Securities at fair value through profit or loss		621,791		74,144		-		77,233		7,916		-		9,574,916		-		10,356,000
Securities at fair value through other comprehensive income		6,596,291		1,030,373		203,160		1,135,078		442,795		12,160		28,066,163		-		37,486,020
Securities at amortized cost		160,027		-		-		118,643		9,996		-		3,643,249		-		3,931,915
Derivative assets		117,522		-		-		-		-		-		-		-		117,522
Off-balance sheet accounts
Unused loan commitments		-		-		-		98,777		22,672		-		42,858		-		164,307
Capital commitments		-		-		-		-		-		-		1,354,692		-		1,354,692
	W	9,074,018		1,239,514		203,160		2,508,817		589,090		22,017		43,449,725		697,890		57,784,231

(*) Due from banks at amortized cost includes cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

viii) Concentration by geographic location

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows:

		2025
		Korea		USA		UK		Japan		Other		Total
Due from banks and loans at amortized cost (*)
Banks	W	1,076,478		95,864		-		101		72,333		1,244,776
Retail
- Residential mortgage		351,850		-		-		-		-		351,850
- Others		183,117		-		-		-		-		183,117
Government/Public institutions/Central bank		191,385		-		-		-		-		191,385
Corporations
- Conglomerate		898,387		8,394		102		747		4,201		911,831
- SMEs		149,981		-		-		-		-		149,981
- Special financing		1,509,176		-		-		-		-		1,509,176
		4,360,374		104,258		102		848		76,534		4,542,116
Due from banks at fair value through profit or loss		-		40,862		-		-		-		40,862
Securities at fair value through profit or loss		9,791,832		1,355,400		33,660		25,068		109,375		11,315,335
Securities at fair value through other comprehensive income		31,660,305		1,795,051		48,800		109,450		1,572,901		35,186,507
Securities at amortized cost		3,950,344		-		-		-		-		3,950,344
Derivative assets		33,817		550		10		-		97		34,474
Off-balance sheet accounts
Unused loan commitments		373,782		-		-		-		-		373,782
Capital commitments		1,266,883		11,195		-		-		26,504		1,304,582
	W	51,437,337		3,307,316		82,572		135,366		1,785,411		56,748,002

(*) Due from banks at amortized cost includes cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(b) Credit risk (continued)

viii) Concentration by geographic location (continued)

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Korea		USA		UK		Japan		Other		Total
Due from banks and loans at amortized cost (*)
Banks	W	1,023,043		68,915		-		103		132,277		1,224,338
Retail
- Residential mortgage		429,318		-		-		-		-		429,318
- Others		268,572		-		-		-		-		268,572
Government/Public institutions/Central bank		200,957		-		-		-		-		200,957
Corporations
- Conglomerate		152,416		10,137		149		762		3,678		167,142
- SMEs		168,292		-		-		-		-		168,292
- Special financing		1,879,706		-		-		-		-		1,879,706
		4,122,304		79,052		149		865		135,955		4,338,325
Due from banks at fair value through profit or loss		-		35,450		-		-		-		35,450
Securities at fair value through profit or loss		8,892,565		1,260,681		33,557		24,990		144,207		10,356,000
Securities at fair value through other comprehensive income		34,845,378		1,240,842		45,250		-		1,354,550		37,486,020
Securities at amortized cost		3,931,915		-		-		-		-		3,931,915
Derivative assets		117,425		52		45		-		-		117,522
Off-balance sheet accounts
Unused loan commitments		164,307		-		-		-		-		164,307
Capital commitments		1,312,488		12,871		-		-		29,333		1,354,692
	W	53,386,382		2,628,948		79,001		25,855		1,664,045		57,784,231

(*) Due from banks at amortized cost includes cash equivalents.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(c) Market risk

i) Definition and management objective

Market risk refers to the risk of changes in the market value of the Company’s asset portfolio due to changes in market prices, such as stock prices, interest rates and foreign exchange rates; and the variable insurance guarantee risk. The Company aims to maintain these market risks within a certain range and minimize the realization of risks.

ii) Management Principles

The Company’s risk management principles for market risk are as follows:

① Manage through periodic forecasts for financial market variables such as interest rates, stock prices, and exchange rates;

② Comply with market risk limits and investment limits;

③ Operate stop-loss limits to control risks within a certain range, and obtain a resolution on establishing or amending the stop-loss criterion from the Risk Management Committee; and

④ Compose and manage a diversified portfolio and avoids concentrated investments.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(c) Market risk (continued)

iii) Risk management

The Company manages market risks, from a trading position, on securities, derivatives, assets and liabilities denominated in foreign currencies, and assets and liabilities of variable insurance.

① Market risk measurement technique

Market risk VaR (Value At Risk) is measured using the Delta-Normal method based on the volatility of price, interest rate, and exchange rate-related assets over the preceding one year, aiming to estimate the maximum potential loss that could occur within the target period at the specified confidence level. The variable insurance guarantee risk amount is measured using shock scenario methodology.

② Risk management and risk reduction policy

The Company regulates various limits, including the VaR limit, to manage market risk. Market risk limits are assigned on a daily basis by VaR to check business compliance. Risk management departments regularly monitor whether the operation department complies with these limits and report them to the management and Risk Management Committee.

③ Foreign exchange risk

Since the Company holds foreign currency assets, it is exposed to the risk of dollar and other foreign currency-related exchange rate volatilities.

The Company calculates the exposure by converting the foreign currency assets and contractual amounts held at the exchange rate at the end of the reporting period, and hedges foreign currency assets to avoid currency risks arising from foreign investment. Accordingly, through currency swaps or currency forward contracts when investing in foreign bonds, the Company offsets any gains or losses arising from foreign exchange rate fluctuations that may occur during future investments.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(c) Market risk (continued)

iv) Types of market risk

The details of the VaR for the trading positions held by the Company as of December 31, 2025 and 2024 are as follows:

		2025
		Average		Maximum		Minimum		December 31
Interest rate risk	W	314		633		128		145
Stock price risk		11,705		17,365		8,345		17,365
Foreign exchange risk		65,588		75,889		52,903		71,959
Option volatility risk		193		559		128		128
Total	W	77,800		94,446		61,504		89,597

(*) As of December 31, 2025, the market risk exposure for investment-linked assets held is W5,687,547 million and the minimum guaranteed risk amount that may have an impact on the Company calculated using the internal shock scenario method is W264,326 million.

		2024
		Average		Maximum		Minimum		December 31
Interest rate risk	W	424		600		254		254
Stock price risk		5,370		9,069		1,176		7,716
Foreign exchange risk		59,747		73,057		48,049		64,051
Option volatility risk		966		1,287		121		559
Total	W	66,507		84,013		49,600		72,580

(*) As of December 31, 2024, the market risk exposure for investment-linked assets held is W4,956,743 million and the minimum guaranteed risk amount that may have an impact on the Company calculated using the internal shock scenario method is W280,577 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(c) Market risk (continued)

v) Composition of foreign currency assets and liabilities by currency

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows:

(In millions of USD, EUR, AUD, SEK, and Won)

		2025
								AUD				SEK				Others (*1)				Total
		Foreign currency	KRW equivalent		Foreign currency	KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent
Assets:
Cash and due from banks at amortized cost	W	61	87,921		1	1,634		1		1,275		-		-		2		2,603		93,433
Due from banks at FVTPL		28	40,862		-	-		-		-		-		-		-		-		40,862
Securities at FVTPL		1,033	1,482,323		31	51,638		1		769		-		-		21		29,480		1,564,210
Securities at FVOCI		1,754	2,516,822		360	606,976		655		629,854		3,501		546,039		110		158,250		4,457,941
Receivables at amortized cost		169	243,013		6	10,708		11		10,140		68		10,673		1		1,611		276,145
	W	3,045	4,370,941		398	670,956		668		642,038		3,569		556,712		134		191,944		6,432,591
Liabilities:
Other financial liabilities	W	-	345		-	-		-		-		-		-		-		314		659
	W	-	345		-	-		-		-		-		-		-		314		659
On-balance, net exposure	W	3,045	4,370,596		398	670,956		668		642,038		3,569		556,712		134		191,630		6,431,932
Off-balance derivative net exposure (*2)		(2,739)	(3,930,717)		(466)	(785,119)		(764)		(733,880)		(4,480)		(698,702)		(109)		(156,293)		(6,304,711)
Net position	W	306	439,879		(68)	(114,163)		(96)		(91,842)		(911)		(141,990)		25		35,337		127,221

(*1) The foreign currency amount is denominated in USD.

(*2) Derivative contract amounts

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(c) Market risk (continued)

v) Composition of foreign currency assets and liabilities by currency (continued)

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows: (continued)

(In millions of USD, EUR, AUD, SEK, and Won)

		2024
								AUD				SEK				Others (*1)				Total
		Foreign currency	KRW equivalent		Foreign currency	KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent		Foreign currency		KRW equivalent
Assets:
Cash and due from banks at amortized cost	W	39	57,586		1	2,204		1		825		-		-		1		2,032		62,647
Due from banks at FVTPL		24	35,450		-	-		-		-		-		-		-		-		35,450
Securities at FVTPL		940	1,380,821		57	86,391		1		1,231		-		-		20		29,399		1,497,842
Securities at FVOCI		1,432	2,104,843		310	474,405		626		572,342		3,687		491,250		31		45,250		3,688,090
Receivables at amortized cost		133	196,260		5	7,724		10		8,912		68		9,117		-		615		222,628
	W	2,568	3,774,960		373	570,724		638		583,310		3,755		500,367		52		77,296		5,506,657
Liabilities:
Other financial liabilities	W	-	244		-	-		-		-		-		-		-		-		244
	W
On-balance, net exposure	W	2,568	3,774,716		373	570,724		638		583,310		3,755		500,367		52		77,296		5,506,413
Off-balance derivative net exposure (*2)		(2,424)	(3,563,417)		(413)	(631,128)		(708)		(646,718)		(4,480)		(596,833)		(27)		(40,229)		(5,478,325)
Net position	W	144	211,299		(40)	(60,404)		(70)		(63,408)		(725)		(96,466)		25		37,067		28,088

(*1) The foreign currency amount is denominated in USD.

(*2) Derivative contract amounts

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(d) Interest rate risk

i) Definition and management objective

Interest rate risk refers to the risk of a decline in net asset value or a decrease in net interest income resulted from unfavorable changes in interest rates or maturity mismatch between assets and liabilities. The Company aims to manage changes in profits, resulting from changes in interest rates, within the acceptable levels and to maintain stable net asset value.

ii) Risk management principles

The Company’s risk management principles for interest rate risk are as follows:

① Manage through periodic forecasts for market variables related to interest rates;

② Comply with interest rate risk limits and investment limits; and

③ Measures and manages risks through duration gap analysis, net asset value simulations, and maximum loss estimates.

iii) Risk management

The Company manages interest rate risks in interest-bearing assets (non-trading assets invested for the purpose of receiving interests and derivatives held for hedging) and interest-bearing liabilities (insurance contract liabilities and borrowings).

① Risk measurement method

The risk is measured by (i) the fair value of net assets at the interest rate level at the reporting date measured using a number of stochastic interest rate scenarios and deterministic scenarios generated based on economic scenarios, less (ii) the fair value of net assets based on a scenario at the 99.5% confidence level.

② Risk limit management and risk mitigation policy

The Company sets limits for interest rate risk management and the risk management department monitors the compliance with the limits on a monthly basis, the result of which is regularly reported to management, as well as the Risk Management Committee.

iv) Current status of risk

As of December 31, 2025, the interest risk for the non-trading position held by the Company is W1,243,781 million, which decreased by W504,898 million as compared to December 31, 2024 primarily due to the increases in market interest rates, the reflection of asset decomposition for assets included in indirect investment vehicles, the execution of bond forward contracts and reinsurance ceded under coinsurance arrangements, and the changes in actuarial and economic assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

5. Financial risk management (continued)

(e) Liquidity risk

i) Definition and management objective

Liquidity risk refers to the risk that arises from the inability to respond to situation such as maturity mismatch between assets and liabilities or unexpected fund outflows. The Company aims to (i) prevent insolvency due to lack of funds, (ii) minimize the risk of disposing assets held or borrowing funds abnormally or losing investment opportunities that resulted from a maturity mismatch between financing and operating, and (iii) maintain stable profitability.

ii) Management principles

The Company’s risk management principles of liquidity risk are as follows:

① Retain management strategies including liquidity risk management goals, management policies, and internal control systems;

② Establish a framework to calculate and manage an actual liquidity gap that reflects actual maturity of assets and liabilities, real cash flows based on changes in consumer behavior (such as overdue), off-balance sheet transactions, new transaction or financing amounts;

③ Manage risks by conducting a liquidity forecast analysis on a regular basis, and avoid concentration of financial and operational activities at a certain point of time;

④ Comply with liquidity risk limits; and

⑤ Establish risk management plans for a liquidity crisis.

iii) Risk management

The Company manages liquidity risks in all items that accompany cash inflows and outflows such as assets and liabilities on the balance sheet and off-balance sheet transactions.

① Risk measurement method

The risk of insufficient fund is measured based on the 3-month real liquidity gap.

② Risk limit management and risk mitigation policy

The Company sets and monitors various indicators for liquidity risk management and regularly reports them to the management and the Risk Management Committee. The Company prepares for a liquidity crisis by establishing an emergency financing plan to secure liquidity in case of an unexpected liquidity shortage.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(e) Liquidity risk (continued)

iv) Contractual maturities for financial instruments and off-balance sheet accounts

Contractual maturities for financial instruments and off-balance sheet accounts as of December 31, 2025 and 2024 are as follows:

			2025
		Due in<br><br>1 month<br><br>or less		Due after<br><br>1 month<br><br>through<br><br>3 months		Due after<br><br>3 months<br><br>through<br><br>6 months		Due after<br><br>6 months<br><br>through<br><br>1 year		Due after<br><br>1 year<br><br>through<br><br>5 years		Due after<br><br>5 years		Total
Non-derivative financial assets:
Cash and due from banks at amortized cost	W	1,082,409		160,022		2,247		7,079		228,377		982,877		2,463,011
Due from banks at fair value through profit or loss		-		-		-		-		-		40,862		40,862
Securities at fair value through profit or loss		4,216,934		27,763		157,841		358,645		2,193,472		6,269,759		13,224,414
Securities at fair value through other comprehensive income		91,593		128,245		181,257		298,874		5,049,067		29,539,422		35,288,458
Securities at amortized cost		8,776		787,207		10,258		27,112		501,527		3,735,253		5,070,133
Loans at amortized cost		57,374		122,086		113,849		204,935		792,775		1,559,894		2,850,913
Receivables at amortized cost		110,124		24,625		7,429		67,514		350,280		663,553		1,223,525
	W	5,567,210		1,249,948		472,881		964,159		9,115,498		42,791,620		60,161,316
Non-derivative financial liabilities:
Debentures	W	-		8,150		8,150		16,300		882,900		-		915,500
Other financial liabilities(*1)		170,793		40,913		10,196		414,719		29,259		14		665,894
Lease liabilities(*1)		3,267		4,721		8,892		16,634		35,327		-		68,841
Investment contract<br><br>liabilities		189,704		15,843		91,042		159,182		1,085,912		-		1,541,683
	W	363,764		69,627		118,280		606,835		2,033,398		14		3,191,918
Derivatives:
Cash inflows(*2)	W	132,809		187,596		470,973		596,506		3,914,657		702,040		6,004,581
Cash outflows(*2)		(159,573)		(1,125,495)		(616,661)		(722,646)		(6,941,989)		(796,258)		(10,362,622)
	W	(26,764)		(937,899)		(145,688)		(126,140)		(3,027,332)		(94,218)		(4,358,041)
Off-balance sheet accounts:
Unused loan<br><br>commitments	W	373,782		-		-		-		-		-		373,782
Capital commitments		1,304,582		-		-		-		-		-		1,304,582
	W	1,678,364		-		-		-		-		-		1,678,364

(*1) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities and other financial liabilities.

(*2) Derivatives for hedging are contractual amounts, including principal and interest, while derivatives for trading are at the carrying amounts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

5. Financial risk management (continued)

(e) Liquidity risk (continued)

iv) Contractual maturities for financial instruments and off-balance sheet accounts (continued)

Contractual maturities for financial instruments and off-balance sheet accounts as of December 31, 2025 and 2024 are as follows: (continued)

			2024
		Due in<br><br>1 month<br><br>or less		Due after<br><br>1 month<br><br>through<br><br>3 months		Due after<br><br>3 months<br><br>through<br><br>6 months		Due after<br><br>6 months<br><br>through<br><br>1 year		Due after<br><br>1 year<br><br>through<br><br>5 years		Due after<br><br>5 years		Total
Non-derivative financial assets:
Cash and due from banks at amortized cost	W	411,272		133,235		2,333		10,407		238,383		941,880		1,737,510
Due from banks at fair value through profit or loss		-		-		-		-		-		35,450		35,450
Securities at fair value through profit or loss		578,738		29,553		52,179		232,553		2,758,457		7,893,053		11,544,533
Securities at fair value through other comprehensive income		101,019		159,135		301,887		518,381		5,751,768		30,815,245		37,647,435
Securities at amortized cost		271		43,499		5,435		47,290		1,286,246		3,809,549		5,192,290
Loans at amortized cost		57,514		183,341		143,029		390,108		924,467		1,802,924		3,501,383
Receivables at amortized cost		128,209		6,482		2,942		72,947		341,764		627,729		1,180,073
	W	1,277,023		555,245		507,805		1,271,686		11,301,085		45,925,830		60,838,674
Non-derivative financial liabilities:
Debentures	W	-		3,900		3,900		7,800		339,000		-		354,600
Other financial liabilities(*1)		154,298		52,957		8,758		220,408		24,835		19		461,275
Lease liabilities(*1)		2,974		5,812		8,584		16,336		46,901		-		80,607
Investment contract<br><br>liabilities		106,106		201,023		286,458		404,864		334,017		-		1,332,468
	W	263,378		263,692		307,700		649,408		744,753		19		2,228,950
Derivatives:
Cash inflows(*2)	W	49,753		170,259		421,154		675,508		3,488,758		340,458		5,145,890
Cash outflows(*2)		(57,709)		(277,736)		(485,421)		(778,333)		(6,423,718)		(504,308)		(8,527,225)
	W	(7,956)		(107,477)		(64,267)		(102,825)		(2,934,960)		(163,850)		(3,381,335)
Off-balance sheet accounts:
Unused loan<br><br>commitments	W	164,307		-		-		-		-		-		164,307
Capital commitments		1,354,692		-		-		-		-		-		1,354,692
	W	1,518,999		-		-		-		-		-		1,518,999

(*1) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities and other financial liabilities.

(*2) Derivatives for hedging are contractual amounts, including principal and interest, while derivatives for trading are at the carrying amounts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management

(a) Overview of insurance risk

Insurance risk is the likelihood that insured events occur and the uncertainty of the total amount and timing of claims for the insured events occurred. The main risk covered by insurance contracts is the risk that the actual claim or benefit payment will exceed the accumulated insurance liability. This risk can occur for the following reasons:

① Frequency risk: a possibility that the number of occurrences of the insured event is different from the expected number

② Severity risk: a possibility that the cost of an incident may be different from the expected cost level

By experience, when there are more similar insurance contracts or they are more diversified, the less likely it is that abnormal effects from some contracts will occur. The Company takes this into account when underwriting contracts and strives to form a sufficiently large and diversified group of contracts.

Insurance risk includes a lack of risk diversification and relates to geographical location and the nature of the policyholder as well as to the diversification of risk forms or sizes.

If the insurance contract covers death, a catastrophe affects the frequency the most and can affect the frequency of death earlier than expected due to a wide range of causes such as eating habits, smoking, and exercise habits, etc. In addition, if the coverage is survival, medical technology and social conditions can increase the survival rate. The frequency may also be affected by excessive concentration in residential areas of policyholders.

Insurance accidents in life insurance include not only the death of the policyholders (insured) but also survival, disability and hospitalization.

The Company basically classifies the Company's insurance products into individual insurance and group insurance according to the policyholder. Group insurance means a contract under which the insured belongs to a group of a certain size or larger and in which the policyholder is the representative of the group or organization. The group insurance can be divided into savings and protections. Protection insurance means insurance in which the sum of benefits paid for survival at the base age does not exceed the premium already paid; savings insurance is defined as insurance, except for protection insurance, in which the sum of benefits paid for survival exceeds the premium already paid. Individual insurance can be classified into life insurance in which the insured's death is insured, survival insurance in which the life is insured for a certain period of time, and endowment insurance in which life insurance and survival insurance are mixed.

Life insurance products can also be divided into guaranteed fixed rates, floating rates, interest accreted rate linked, and variable types by the applying term structures of interest types.

In the guaranteed fixed interest type, since the expected rate does not change from the time the policyholder enters into the contract to the end of the insurance period, the Company assumes the interest rate risk if the asset management return rate or market interest rate is lower than the expected rate. Floating interest rate type divides the net insurance premium into the guaranteed portion and the reserve portion; the guaranteed portion is applied with the predetermined expected rate, and the reserve portion changes based on the reserve rate for policy reserve according to asset management return rate, which makes partial hedge to interest rate risk, but the Company assumes some interest rate risk from the changes of asset management return rate, etc. since the minimum reserve rate for policy reserve is predetermined.

The Company uses acquisition strategies and reinsurance strategies to manage insurance risk of uncertainties of the total amount and timing of insurance claims paid due to insured events.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management (continued)

(a) Overview of the insurance risk (continued)

① Acceptance strategy

Acceptance strategy means diversifying the type of risk or the level of claims from that are accepted insurance policies. For example, the Company can balance mortality and survival risks. In addition, the selection of policyholders through regular health check-ups is one of the major acceptance strategies.

② Reinsurance strategy

The risk of reinsurance contracts held to the Company is based on the accepted insurance contracts, which can be the total amount of risk or risk per contract on a per capita basis or per contract basis. In principle, the reinsurance method provides the risk premium excess reinsurance, but other methods may be used within the scope of the relevant laws as required. The degree of reinsurance held by the Company shall be determined by considering the Company's assets, contract conditions, risk level, and technology for selecting the contract.

Insurance risk can also be affected by the policyholder's right to terminate the contract or exercise annuity conversion rights to reduce or not pay the full premium. As a result, insurance risks may be affected by the policyholder's actions and decisions. The Company's insurance risk can be estimated on the assumption that the policyholder is reasonable. For example, a person who is worse than a person in good health would have less intention of terminating insurance that covers death. These factors are also reflected in the assumptions about the Company's insurance liabilities.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management (continued)

(b) Insurance risk management policy

i) Measurement of Insurance Risk

Unlike other financial instruments, life insurance companies' insurance policies have the characteristics of long-term contracts, which can be exposed to insurance risk that may arise due to an increase in actual claim payments than the risk rate determined at the time of development of the product and interest rate risk that may arise due to differences in interest rates and maturities between insurance liabilities and asset management.

The purpose of the Company’s risk management is to generate long-term stable growth and profits by proactively preventing and systematically managing the various risks that may arise in the course of management activities, reflecting these uncertain financial environments and the characteristics of life insurance products with long-term attributes.

The Company divides insurance risks arising from life insurance contracts into six sub-risks: death risk, longevity risk, disability/disease risk, cancellation risk, operating expense risk, and catastrophe risk. The risk amount for each sub-risk is measured on assets and liabilities that may directly or indirectly cause loss to the Company in the event of changes in actuarial assumptions, and is calculated based on the net asset value through the shock scenario method or risk coefficient method for each sub-risk.

The shock scenario method, one of the insurance risk measurement methods, is a method of calculating the amount of change in net asset value when applying a scenario in which the basic assumptions used for market valuation of assets or liabilities change. On the other hand, the risk coefficient method is a method that calculates the amount by multiplying a specific exposure by a specified risk coefficient, and is suitable for risk amounts that have short maturity or do not have large changes in net asset value during market valuation. In addition, the Company calculates the life insurance risk amount considering the diversification effect by adding the risk amount calculated for each sub-risk, reflecting the correlation coefficient between the sub-risks.

ii) Insurance risk management organization and management method

The Company measures the statutory minimum level of capital based on the life insurance risk amount and manages it within the allowable range. For this purpose, the Company establishes basic principles of risk management and establishes and implements regulations and management systems to implement them. In addition, the Company supports decision-making related to various risks through the Risk Management Committee and risk management organization, and prepare risk management procedures to identify and manage risks in a timely manner.

In general, risk management procedures are to recognize exposed risks, measure their size, set acceptable limits, monitor them regularly to report to management, and efficiently control and manage risks in case they exceed their limits.

Management methods by risk type are as follows:

① Insurance risk management

The Company develops insurance products with proper profitability by setting the profitability guidelines from the time of product development, establishes and operates the acceptance policy to prevent reverse selection, running the claim-screening policy to make claim payments.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance risk management (continued)

(b) Insurance risk management policy (continued)

ii) Insurance risk management organization and management method (continued)

② Interest rate risk management

The Company establishes a guideline and consider the market interest rate and asset management return rate to determine the published interest rate and expected interest rate within the guidelines. The Company also establishes the asset management strategy considering the interest rate level and maturity of liabilities; establishes a long-term target portfolio by comprehensively considering the risk level and rate of return of operating assets after analyzing the properties of long-term insurance liabilities, and sets a viable portfolio as a guideline every year to allocate and manage assets.

③ Liquidity risk management

The Company inspects and manages the amount of claims paid insurance and liquid assets periodically.

④ Equity price risk management

Equity price risk is managed in accordance with established management principles, including periodic forecasting, compliance with risk limits and investment limits, and the establishment and operation of appropriate portfolios. In addition, equity price risk is measured periodically and monitored by the risk management department, and the results are reported to management and the Risk Management Committee. Detailed information on equity price risk management is disclosed in Note 5 ‘Financial risk management.’

(c) Korean Insurance Capital Standard(K-ICS)

K-ICS is an equity capital system that precisely evaluates risk and financial soundness by evaluating the assets and liabilities of insurance companies to market so that they can be applied under the financial statements prepared in accordance with K-IFRS 1117 on insurance contracts. To maintain consistency in mark-to-market valuation and ensure consistency with international capital regulations, the supervisory authorities introduced K-ICS based on mark-to-market valuation, which improves the quality of insurance companies' capital by calculating available and required capital in line with economic substance. This is a system designed to encourage improvement and strengthen risk management.

With the introduction of K-ICS, the supervisory authorities have established standards for preparing a financial position statement based on soundness supervision standards to separately calculate assets and liabilities that meet the purpose of supervision and at the same time substantially reflect the risks of insurance companies. In the K-ICS, the available capital, or solvency amount, is measured based on the basic capital and supplementary capital classified by the loss absorption capacity of the net asset amount in the statement of financial position based on soundness supervision standards evaluated at market price, and there are some restrictions on loss compensation. Supplementary capital, defined as having, can be reflected in the solvency amount up to 50% of the required capital. In addition, the required capital under the K-ICS, that is, the solvency standard amount, refers to the amount of potential losses that may occur in the insurance company over the next year. Specifically, the K-ICS divides the risks exposed due to insurance contract underwriting and asset management into five risks: life and long-term non-life insurance risk, general non-life insurance risk, market risk, credit risk, and operational risk. Under the 99.5% confidence level, the solvency standard amount is required to be measured by calculating the maximum loss that can occur over the next year using the shock scenario method.

Under the K-ICS, the risk-based capital ratio is calculated by dividing the solvency amount by the solvency standard amount. If the insurance company's solvency ratio is less than 100%, it indicates that the solvency standard amount measured by the potential loss amount cannot be covered with capital, which means that the insurance company's capital soundness has become poor, and the supervisory authority must comply with the Insurance Business Supervision Regulations. Accordingly, insurance companies with a solvency ratio of less than 100% are required to take timely corrective actions such as management improvement recommendations, management improvement requests, or management improvement orders. As such, the new solvency system is a system in which the supervisory authorities seek to protect policyholders by supervising the capital adequacy and risk management capabilities of insurance companies.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

6. Insurance Risk management (continued)

(d) Financial risks related to insurance contracts

Investment contracts that include insurance contracts and discretionary participation feature may be exposed to financial risks although it is an insurance liability, and the form of exposure is as follows:

① Credit risk

Credit risk refers to the risk of loss resulting from the borrower's failure to repay a loan or meet contractual obligations. The Company's reinsurance assets are exposed to credit risk as assets that may incur losses if the reinsurer defaults at the time of receipt of the claims and receivables.

② Interest rate risk

Interest rate risk means the risk that arises when the Company's financial position fluctuates unfavorably due to the effect of interest rates on assets and liabilities. The Company manages matched assets and liabilities for each portfolio to minimize the impact of mismatches between assets and liabilities caused by interest rate fluctuations, thus reducing the risk.

③ Liquidity risk

Liquidity risk refers to the risk that assets and liabilities are subject to inconsistency or failure to respond to unexpected cash outflows. Therefore, future cash outflows from investment contracts, including insurance liabilities which account for most of the Company's liabilities and discretionary participation features, are factors used to determine the level of risk associated with the Company's liquidity.

The purpose of the Company's management of liquidity risk is to maintain sufficient liquidity to prepare for repayments arising from insurance contracts under normal circumstances or when market shocks occur. The Company's main liquidity risk management methods are as follows:

• Regularly inspect and manage the amount of insurance payments and liquid assets

• Maintain and manage a portfolio comprised of assets that can be relatively easily liquidated in preparation for unexpected disruptions in financing.

• Monitoring liquidity ratios by running liquidity stress tests

• Establishment of asset liability management strategy considering insurance contract liability cash flow

④ Market risk

Market risk refers to the risk of loss arising when the Company's financial position fluctuates unfavorably due to adverse price fluctuations such as stock prices and exchange rates. The Company carries out insurance contract transactions denominated in foreign currencies and is therefore exposed to exchange rate fluctuations. Exposure to exchange rate fluctuations is managed through foreign exchange forward contracts and interest rate swaps between different currencies.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(e) Concentration of insurance risk

i) The concentration of insurance risks (based on the fulfilment cash flows) by region as of December 31, 2025 and 2024 are as follow:

		2025
		Insurance contracts
		Participating		Non-Participating		Variable		Reinsurance contracts		Total
Domestic	W	4,959,061		29,808,664		5,591,163		53,047		40,411,935
		2024
---	---	---	---	---	---	---	---	---	---	---
		Insurance contracts
		Participating		Non-Participating		Variable		Reinsurance contracts		Total
Domestic	W	5,200,167		31,160,425		4,834,945		345,177		41,540,714

ii) The amount of foreign currency insurance liabilities (based on the fulfilment cash flows) as of December 31, 2025 and 2024 are as follow:

(In thousands of USD and EUR, and		2025				2024
in millions of won)		Foreign currency amount		KRW converted amount		Foreign currency amount		KRW converted amount
Foreign Currency Insurance Liabilities	W	279,946		401,695		168,209		247,267
- Non-participating		110		185		119		182
	W			402,880				247,449

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows:

i) Participating insurance contracts

		2025
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	4,738,480		130,865		-		-
Mortality rate		increased by 3.27%		4,732,654		127,293		9,398		(1,887)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		4,742,230		126,951		165		115
Long-term property and other		increased by 4.19%		4,738,480		130,865		-		-
Lapse rate(increase)		increased by 9.16%		4,726,618		130,294		12,433		(6,606)
Lapse rate(decrease)		decreased by 9.16%		4,750,500		131,545		(12,700)		6,861
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		4,743,228		128,161		(2,044)		611

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	4,979,280		118,533		-		-
Mortality rate		increased by 3.27%		4,974,196		114,164		9,453		(1,895)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		4,984,691		113,928		(806)		124
Long-term property and other		increased by 4.19%		4,979,280		118,533		-		-
Lapse rate(increase)		increased by 9.16%		4,963,981		120,301		13,532		(5,710)
Lapse rate(decrease)		decreased by 9.16%		4,994,968		116,666		(13,820)		5,949
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		4,984,797		115,214		(2,197)		484

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

ii) Non-participating insurance contracts

		2025
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	28,288,556		7,199,651		-		-
Mortality rate		increased by 3.27%		28,406,579		7,081,232		397		(2,440)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		29,032,742		6,553,779		(98,314)		41,408
Long-term property and other		increased by 4.19%		28,288,556		7,199,651		-		-
Lapse rate(increase)		increased by 9.16%		29,032,371		6,475,155		(19,318)		(78,503)
Lapse rate(decrease)		decreased by 9.16%		27,470,393		8,000,387		17,427		82,187
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		28,487,259		7,007,703		(6,755)		15,146

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	29,627,853		6,969,672		-		-
Mortality rate		increased by 3.27%		29,749,337		6,848,600		(411)		(9,443)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		30,300,967		6,324,390		(27,831)		14,386
Long-term property and other		increased by 4.19%		29,627,853		6,969,672		-		-
Lapse rate(increase)		increased by 9.16%		30,338,377		6,275,939		(16,791)		(89,404)
Lapse rate(decrease)		decreased by 9.16%		28,845,362		7,734,641		17,522		98,708
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		29,820,711		6,782,260		(5,446)		8,158

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

iii) Variable insurance contracts

		2025
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	5,528,259		223,218		-		-
Mortality rate		increased by 3.27%		5,542,000		218,227		(8,750)		2,058
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		5,553,328		218,469		(20,320)		2,632
Long-term property and other		increased by 4.19%		5,528,259		223,218		-		-
Lapse rate(increase)		increased by 9.16%		5,585,976		190,331		(24,830)		(9,064)
Lapse rate(decrease)		decreased by 9.16%		5,464,450		278,118		8,909		9,826
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		5,541,523		216,204		(6,250)		1,203

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity(*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	4,773,118		135,908		-		-
Mortality rate		increased by 3.27%		4,788,129		128,304		(7,407)		1,386
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		4,797,541		129,336		(17,851)		1,666
Long-term property and other		increased by 4.19%		4,773,118		135,908		-		-
Lapse rate(increase)		increased by 9.16%		4,824,350		106,919		(22,243)		(9,536)
Lapse rate(decrease)		decreased by 9.16%		4,716,553		190,190		2,282		10,428
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		4,786,747		127,067		(4,787)		981

(*1) The amounts are before reflecting the reinsurance effect.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

iv) After reflecting the reinsurance effect

		2025
		Sensitivity (*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	38,727,725		7,062,840		-		-
Mortality rate		increased by 3.27%		38,845,670		6,943,850		1,045		(2,160)
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		39,445,049		6,463,985		(118,469)		41,920
Long-term property and other		increased by 4.19%		38,727,725		7,062,840		-		-
Lapse rate(increase)		increased by 9.16%		39,477,221		6,345,060		(31,715)		(92,695)
Lapse rate(decrease)		decreased by 9.16%		37,900,620		7,876,309		13,636		97,419
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		38,944,441		6,861,174		(15,050)		16,960

(*1) The amounts represent the aggregate of participating, non-participating, and variable insurance contracts.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

		2024
		Sensitivity (*2)		Base amount and base amount<br><br>after change				Impact on profit or loss and equity<br><br>(before tax)
					Fulfillment cash flows (*3)		Contractual service margin		Profit or loss (*4)		Other comprehensive income
Base amount			W	39,819,864		6,869,326		-		-
Mortality rate		increased by 3.27%		39,946,680		6,740,875		1,635		8,702
Morbidity<br><br>(fixed compensation)<br><br>Morbidity<br><br>(actual loss compensation)		increased by 3.40%<br><br>increased by 2.62%		40,478,965		6,256,714		(46,488)		34,285
Long-term property and other		increased by 4.19%		39,819,864		6,869,326		-		-
Lapse rate(increase)		increased by 9.16%		40,533,222		6,181,469		(25,501)		(86,772)
Lapse rate(decrease)		decreased by 9.16%		39,031,830		7,651,376		5,984		133,903
Operating expense<br><br>Operating expense(inflation)		increased by 2.62%<br><br>increased by 0.26%p		40,031,868		6,669,753		(12,430)		9,624

(*1) The amounts represent the aggregate of participating, non-participating, and variable insurance contracts.

(*2) The risk adjustment is calculated at the 75% confidence level.

(*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(g) Credit risk arising from insurance contracts

The amount of the reinsurance contracts assets held by risk level as of December 31, 2025 and 2024 are as follow:

		2025				2024
			Reinsurance contract assets for<br><br>remaining coverage		Reinsurance contract assets for incurred claims		Reinsurance contract assets for<br><br>remaining coverage		Reinsurance contract assets for incurred claims
AA+ ~ AA-	W	335,136		20,462		-		146

(h) Interest rate risk arising from insurance contracts

The impact of exposure to interest rate risk and interest rate changes on profit or loss on equity as of December 31, 2025 and 2024 are as follow:

① Interest rate risk exposure

		2025		2024
Exposure to financial instruments measured at fair value (*1)	W	47,717,387		48,843,348
Insurance contract exposure (*2)
Participating		4,738,480		4,979,280
Non-participating		28,289,432		29,628,025
Variable		5,528,259		4,773,118
Others (*3)		172,430		439,613
Net exposure (financial instruments less insurance contracts)		8,988,786		9,023,313

(*1) It is the total amount of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, and derivative assets (liabilities).

(*2) It is the amount of insurance contract liabilities and reinsurance contract assets (liabilities) for remaining coverage, less contractual service margin.

(*3) The amount relates to reinsurance contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(h) Interest rate risk arising from insurance contracts (continued)

The impact of exposure to interest rate risk and interest rate changes on profit or loss on equity as of December 31, 2025 and 2024 are as follow: (continued)

② Interest Rate Risk Sensitivity

				2025				2024
				Effects on<br>profit or loss		Effects on equity		Effects on<br>profit or loss		Effects on equity
100bp Increase		Insurance contracts (*1)
		Participating	W	-		509,420		-		539,618
		Non-participating		-		4,535,425		-		3,772,927
		Variable		-		21,308		-		44,699
		Reinsurance contracts (*1)		-		255,489		-		50,365
		Financial assets (*2)		(26,466)		(4,736,892)		(35,934)		(4,777,699)
100bp Decrease		Insurance contracts (*1)
		Participating		-		(620,972)		-		(658,212)
		Non-participating		-		(5,802,811)		-		(5,332,780)
		Variable		-		(60,875)		-		(82,742)
		Reinsurance contracts (*1)		-		(308,842)		-		(59,948)
		Financial assets (*2)		26,563		5,800,791		35,934		5,837,965

(*1) This is the effects on equity (before tax) due to changes in expected cash flows of insurance and reinsurance contracts, excluding variable annuities/savings.

(*2) Calculated for assets related to insurance contracts excluding variable annuities/savings. The profit or loss effects are the changes in financial assets recognized at fair value through profit or loss, and the equity effects are the changes in financial assets at fair value through other comprehensive income and interest rate derivatives.

(i) Equity price risk arising from insurance contracts

The effects of changes in equity prices on profit or loss and equity as of December 31, 2025 and 2024 are as follows:

				2025				2024
				Effects on<br>profit or loss		Effects on equity		Effects on<br>profit or loss		Effects on equity
10% Increase		Insurance contracts
		Participating	W	-		-		-		-
		Non-participating		-		-		-		-
		Variable		(255,595)		-		(193,578)		-
		Reinsurance contracts		-		-		-		-
		Financial assets		255,595		-		193,578		-
10% Decrease		Insurance contracts
		Participating		-		-		-		-
		Non-participating		-		-		-		-
		Variable		255,595		-		193,578		-
		Reinsurance contracts		-		-		-		-
		Financial assets		(255,595)		-		(193,578)		-

(*) The analysis is based on assets related to variable annuity and savings insurance contracts to which the variable fee approach is applied, and the profit or loss effects represent changes in financial assets at fair value through profit or loss.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(j) Liquidity risk arising from insurance contracts

As of December 31, 2025 and 2024, the amount of undiscounted remaining contractual cash flows by maturity date are as follow. This amount does not include liabilities for remaining coverage (insurance contracts and reinsurance contracts) measured by applying the premium allocation approach.

		2025
		Less than<br><br>1 year		1~2<br><br>year		2~3<br><br>year		3~4<br><br>year		4~5<br><br>years		More than 5 years		Total
Insurance Contracts
Participating insurance:
Cash inflows	W	34,397		25,425		20,141		16,443		13,515		63,988		173,909
Cash outflows		(240,847)		(253,700)		(255,690)		(258,371)		(261,112)		(8,042,439)		(9,312,159)
		(206,450)		(228,275)		(235,549)		(241,928)		(247,597)		(7,978,451)		(9,138,250)
Non-participating insurance:
Cash inflows		6,331,260		5,662,522		5,010,684		4,358,197		3,771,019		51,088,737		76,222,419
Cash outflows		(5,068,663)		(4,871,804)		(4,780,238)		(4,705,099)		(4,437,033)		(134,903,633)		(158,766,470)
		1,262,597		790,718		230,446		(346,902)		(666,014)		(83,814,896)		(82,544,051)
Variable insurance
Cash inflows		437,302		361,966		297,826		249,995		213,177		2,158,311		3,718,577
Cash outflows		(948,429)		(855,175)		(765,759)		(669,433)		(604,609)		(8,817,026)		(12,660,431)
		(511,127)		(493,209)		(467,933)		(419,438)		(391,432)		(6,658,715)		(8,941,854)
	W	545,020		69,234		(473,036)		(1,008,268)		(1,305,043)		(98,452,062)		(100,624,155)
Reinsurance contract
Cash inflows	W	322,122		302,044		286,274		278,232		271,893		9,694,621		11,155,186
Cash outflows		(347,205)		(334,989)		(321,136)		(312,211)		(305,518)		(9,388,316)		(11,009,375)
	W	(25,083)		(32,945)		(34,862)		(33,979)		(33,625)		306,305		145,811
Total (including variable insurance)	W	519,937		36,289		(507,898)		(1,042,247)		(1,338,668)		(98,145,757)		(100,478,344)
Total (excluding variable insurance)	W	1,031,064		529,498		(39,965)		(622,809)		(947,236)		(91,487,042)		(91,536,490)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(j) Liquidity risk arising from insurance contracts (continued)

As of December 31, 2025 and 2024, the amount of undiscounted remaining contractual cash flows by maturity date are as follow. This amount does not include liabilities for remaining coverage (insurance contracts and reinsurance contracts) measured by applying the premium allocation approach. (continued)

		2024
		Less than<br><br>1 year		1~2<br><br>year		2~3<br><br>year		3~4<br><br>year		4~5<br><br>years		More than 5 years		Total
Insurance Contracts
Participating insurance:
Cash inflows	W	43,374		33,437		24,916		19,959		16,437		106,215		244,338
Cash outflows		(240,206)		(228,226)		(232,215)		(241,157)		(240,783)		(8,645,374)		(9,827,961)
		(196,832)		(194,789)		(207,299)		(221,198)		(224,346)		(8,539,159)		(9,583,623)
Non-participating insurance:
Cash inflows		5,582,811		4,840,753		4,361,203		3,863,416		3,314,013		47,454,014		69,416,210
Cash outflows		(5,750,906)		(4,300,951)		(4,353,876)		(4,074,145)		(4,294,566)		(124,429,513)		(147,203,957)
		(168,095)		539,802		7,327		(210,729)		(980,553)		(76,975,499)		(77,787,747)
Variable insurance
Cash inflows		482,531		402,250		334,537		279,308		237,124		2,351,146		4,086,896
Cash outflows		(916,187)		(783,304)		(709,458)		(636,965)		(559,272)		(8,181,229)		(11,786,415)
		(433,656)		(381,054)		(374,921)		(357,657)		(322,148)		(5,830,083)		(7,699,519)
	W	(798,583)		(36,041)		(574,893)		(789,584)		(1,527,047)		(91,344,741)		(95,070,889)
Reinsurance contract
Cash inflows	W	225,165		216,544		209,995		207,721		207,575		8,223,398		9,290,398
Cash outflows		(244,930)		(237,756)		(230,883)		(227,262)		(226,934)		(9,123,146)		(10,290,911)
	W	(19,765)		(21,212)		(20,888)		(19,541)		(19,359)		(899,748)		(1,000,513)
Total (including variable insurance)	W	(818,348)		(57,253)		(595,781)		(809,125)		(1,546,406)		(92,244,489)		(96,071,402)
Total (excluding variable insurance)	W	(384,692)		323,801		(220,860)		(451,468)		(1,224,258)		(86,414,406)		(88,371,883)

As of December 31, 2025 and 2024, the amount to be paid upon request by policyholders of insurance contracts issued is W56,064,811 million and W53,227,935 million, respectively.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(k) Claims development

The Claims development as of December 31, 2025 and 2024 are as follows:

		2025
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted ultimate gross claims	W	1,069,793		1,106,219		1,154,705		1,232,242		1,419,726		5,982,685
Claims paid
At end of accident year		832,601		857,694		896,770		952,706		1,098,335		4,638,106
1 year later		187,431		194,972		201,175		220,039		-		803,617
2 years later		27,435		27,703		30,697		-				85,835
3 years later		12,000		15,032		-						27,032
4 years later		4,859		-								4,859
Cumulative claims paid		1,064,326		1,095,401		1,128,642		1,172,745		1,098,335		5,559,449
Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid		5,467		10,818		26,063		59,497		321,391		423,236
Effect of discounting		-										(12,313)
Future claim adjustment expenses												9,205
Incurred claims that have been confirmed but not paid												1,366,616
Risk adjustment for non-financial risk												15,973
Reinsurance effect												(119,384)
Net liability for incurred claims	W											1,683,333

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

6. Insurance risk management (continued)

(k) Claims development (continued)

The Claims development as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted ultimate gross claims	W	959,974		1,070,850		1,104,112		1,152,207		1,233,110		5,520,253
Claims paid
At end of accident year		746,984		833,427		857,650		896,474		957,713		4,292,248
1 year later		166,072		187,415		195,026		202,132		-		750,645
2 years later		23,751		27,433		27,763		-				78,947
3 years later		13,248		12,079		-						25,327
4 years later		4,849		-								4,849
Cumulative claims paid		954,904		1,060,354		1,080,439		1,098,606		957,713		5,152,016
Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid		5,070		10,496		23,673		53,601		275,397		368,237
Effect of discounting		-										(11,011)
Future claim adjustment expenses												7,316
Incurred claims that have been confirmed but not paid												1,436,530
Risk adjustment for non-financial risk												14,041
Reinsurance effect												(94,435)
Net liability for incurred claims	W											1,720,678

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

7. Capital risk management

In order to manage the required capital for maintaining solvency, the Company measures the risk-based capital in a manner required by the supervisory authority, manages it internally, and discloses it externally. The Company also manages risk appetite based on internal model.

The solvency margin ratio is a measure of financial soundness or ability to pay claims by a life insurer and is calculated by dividing solvency margin by solvency capital requirement, where the solvency margin is a measure of the extent to which the Company can fulfill its obligations to policyholders even in the event of an unexpected loss or decline in asset value and solvency capital requirement is the Company’s risk amount.

The Company manages the solvency margin ratio based on the separate financial statements and the supervisory authority requires insurance companies to maintain the solvency margin ratio at least 100%. If an insurance company fails to meet the solvency margin ratio requirement, the timely corrective measures shall be taken.

		Solvency margin ratio		Improvement measures
Management improvement recommendation		50% or above through less than 100%		Increase in equity, restriction on initiating new business, etc.
Management improvement request		0% or above through less than 50%		Request for replacement of executives, closure of subsidiaries, etc.
Management improvement order		Less than 0%		Suspension of executive officers from office, suspension of insurance business, etc.

The Company obtains approval on the management standards for the solvency margin ratio based on risk-based capital from the Risk Management Committee every year.

As of December 31, 2025, the Company complies with the solvency margin ratio required by the supervisory authority. In addition, based on the internal model, the Company monitors compliance with the limits for each risk type every month that are approved by the Risk Management Committee based on total risk limit approved by the board of director. At this time, the risk appetite is managed to be within 100%.

The Company also conducts stress testing by setting crisis scenarios for interest rates, stock prices, and exchange rates. The stress test is conducted on both the solvency margin ratio and the internal model. The Company establishes a capital management plan based on the results and report to the management as well as the Risk Management Committee at least once a year.

8. Fair value of financial instruments

The fair value of financial instruments traded in the active market is calculated based on the quoted price of the trading brokerage agency as of the end of the reporting period.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques or the results of the assessment by an independent external assessment agency. The Company utilizes various valuation techniques and makes reasonable assumptions based on current market conditions at the end of the reporting period.

The Company classifies the fair value of financial instruments into three fair value levels:

• Level 1 : Measurement of fair value based on the prices disclosed in the active trading market.
• Level 2 : Measurement of fair value by valuation technique based on market-observed information
• Level 3 : Measurement of fair value based on unobservable information in the market.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value

i) The details of fair value by valuation level of financial instruments measured at fair value in the separate statements of financial position as of December 31, 2025 and 2024 are as follows:

		2025
		Level 1		Level 2		Level 3		Total
Financial assets:
Due from banks at fair value through profit or loss	W	-		40,862		-		40,862
Securities at fair value through profit or loss
Debt securities		3,019,945		1,672,890		6,622,500		11,315,335
Equity securities		1,909,079		-		-		1,909,079
		4,929,024		1,672,890		6,622,500		13,224,414
Securities at fair value through other comprehensive income
Debt securities		22,931,497		12,255,010		-		35,186,507
Equity securities		-		-		101,951		101,951
		22,931,497		12,255,010		101,951		35,288,458
Derivative assets
Held for trading		657		-		965		1,622
Held for hedging		-		32,852		-		32,852
		657		32,852		965		34,474
	W	27,861,178		14,001,614		6,725,416		48,588,208
Financial liabilities:
Derivative liabilities
Held for trading	W	29		-		-		29
Held for hedging		-		870,793		-		870,793
	W	29		870,793		-		870,822
		2024
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets:
Due from banks at fair value through profit or loss	W	-		35,450		-		35,450
Securities at fair value through profit or loss
Debt securities		3,110,322		1,691,714		5,553,964		10,356,000
Equity securities		1,188,533		-		-		1,188,533
		4,298,855		1,691,714		5,553,964		11,544,533
Securities at fair value through other comprehensive income
Debt securities		23,212,859		14,273,161		-		37,486,020
Equity securities		-		-		161,415		161,415
		23,212,859		14,273,161		161,415		37,647,435
Derivative assets
Held for trading		97		-		526		623
Held for hedging		-		116,899		-		116,899
		97		116,899		526		117,522
	W	27,511,811		16,117,224		5,715,905		49,344,940
Financial liabilities:
Derivative liabilities
Held for trading	W	245		-		-		245
Held for hedging		-		501,347		-		501,347
	W	245		501,347		-		501,592

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

ii) There is no transfer between level 1 and level 2 of financial instruments measured at fair value for the years ended December 31, 2025 and 2024.

iii) Valuation techniques and input variables for financial instruments classified as Level 2

Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of December 31, 2025 and 2024 are as follows:

Type of financial instrument		Valuation techniques			2025		2024		Input variables
Financial assets
Financial assets at fair value through profit or loss
Debt securities		Net asset value (NAV), Discounted cash flow (DCF), Hull-White model		W	1,713,752		1,727,164		Discount rates, fair value of the underlying assets
Securities at fair value through other comprehensive income
Debt securities		DCF			12,255,010		14,273,161		Discount rates
Derivative assets
Currency forward		Implied forward rate, DCF			3,506		-		Discount rates,<br><br>foreign exchange rates
Currency swap					2,601		2,369		Discount rates,<br><br>foreign exchange rates
Interest rate forward					26,745		114,530		Discount rates
				W	14,001,614		16,117,224
Financial liabilities
Currency forward		Implied forward rate, DCF		W	218,886		202,104		Discount rates,<br><br>foreign exchange rates
Currency swap					412,716		245,963		Discount rates,<br><br>foreign exchange rates
Interest rate forward					239,191		53,280		Discount rates
				W	870,793		501,347

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

iv) Details of financial instruments classified as fair value level 3

Changes in financial instruments classified as fair value level 3 for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Financial assets at fair value through profit or loss		Securities at fair value through other comprehensive income		Net derivatives held for trading		Total
Beginning balance	W	5,553,964		161,415		526		5,715,905
Total gains or losses
Amount recognized in profit or loss (*2)		10,687		-		2,665		13,352
Amount recognized in other comprehensive income		-		(963)		-		(963)
Acquisition		1,588,194		1,499		685		1,590,378
Settlement		(530,345)		(60,000)		(2,911)		(593,256)
Ending balance	W	6,622,500		101,951		965		6,725,416

(*1) There were no changes during the current period in the valuation techniques used to measure the fair value of financial instruments classified as Level 3 in the fair value hierarchy.

(*2) The amounts recognized in profit or loss during the current period in relation to movements in financial instruments classified as Level 3 in the fair value hierarchy, as well as the gains or losses related to assets and liabilities held as of the end of the reporting period are as follows:

			Amount recognized in profit or loss		Amount recognized in profit or loss related to financial instruments held at the end of the reporting period
Gains or losses on financial assets at fair value through profit or loss		W	10,687		20,596
Gains or losses on derivatives			2,665		484
		W	13,352		21,080

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

iv) Details of financial instruments classified as fair value level 3 (continued)

Changes in financial instruments classified as fair value level 3 for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Financial assets at fair value through profit or loss		Securities at fair value through other comprehensive income		Net derivatives held for trading		Total
Beginning balance	W	5,574,231		110,362		4,626		5,689,219
Total gains or losses
Amount recognized in profit or loss (*2)		89,472		-		(3,626)		85,846
Amount recognized in other<br><br>comprehensive income		-		1,153		-		1,153
Acquisition		605,378		50,000		2,581		657,959
Settlement		(593,792)		(100)		(3,055)		(596,947)
Moving from level 3 (*1)		(121,325)		-		-		(121,325)
Ending balance	W	5,553,964		161,415		526		5,715,905

(*1) The financial instrument has shifted between levels due to changes in the availability of observable market data due to changes in the evaluation method. The Company recognizes changes in levels at the end of the reporting period in which changes in events or circumstances that cause changes between levels occur.

(*2) Of the changes in financial instruments classified at fair value level 3 during the current period, gains or losses related to the amounts recognized in profit or loss and assets and liabilities held for the year ended December 31, 2024 are as follows:

			Amount recognized in profit or loss		Amount recognized in profit or loss related to financial instruments held at the end of the reporting period
Gains or losses on financial assets at fair value through profit or loss		W	89,472		86,463
Gains or losses on derivatives			(3,626)		(1,570)
		W	85,846		84,893

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

v) Valuation techniques and unobservable input variables for financial instruments classified as Level 3

Valuation techniques and significant unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2025 and 2024 are as below:

			2025
			Valuation techniques		Carrying amount		Significant unobservable inputs		Range		Effects of unobservable inputs on fair value
Financial assets<br><br>at fair value<br><br>through profit<br><br>or loss
- Debt securities			Dividend discount model,<br><br>Hull-White, NAV	W	6,622,500		Discount rates, liquidation value		Discount rates 10.08% ~ 17.95%<br><br>liquidation value 0.00%		Fair value decreases when discount rate increases<br><br>Fair value increases when liquidation value increases
Securities<br><br>at fair value<br><br>through other<br><br>comprehensive<br><br>income
- Equity securities			Hull-White, NAV		101,951		The volatility of an interest rate		0.46% ~ 0.67%		The greater the volatility, the greater the fluctuation in fair value
Derivative assets
- Equity related			Monte-Carlo<br><br>Simulation,<br><br>Black-Scholes		965		The volatility of an underlying asset		23.51% ~ 29.54%		The greater the volatility, the greater the fluctuation in fair value
				W	6,725,416

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

v) Valuation techniques and unobservable input variables for financial instruments classified as Level 3 (continued)

Valuation techniques and significant unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2025 and 2024 are as below: (continued)

			2024
			Valuation techniques		Carrying amount		Significant unobservable inputs		Range		Effects of unobservable inputs on fair value
Financial assets<br><br>at fair value<br><br>through profit<br><br>or loss
- Debt securities			Dividend discount model,<br><br>Hull-White, NAV	W	5,553,964		Discount rates, liquidation value		Discount rates 6.32% ~ 9.48%<br><br>liquidation value 0.00%		Fair value decreases when discount rate increases<br><br>Fair value increases when liquidation value increases
Securities<br><br>at fair value<br><br>through other<br><br>comprehensive<br><br>income
- Equity securities			Hull-White, NAV		161,415		The volatility of an interest rate		0.41% ~ 0.73%		The greater the volatility, the greater the fluctuation in fair value
Derivative assets
- Equity related			Monte-Carlo<br><br>Simulation,<br><br>Black-Scholes		526		The volatility of an underlying asset		19.94% ~ 21.28%		The greater the volatility, the greater the fluctuation in fair value
				W	5,715,905

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(a) Financial instruments measured at fair value (continued)

vi) Sensitivity analysis by variation of unobserved variables

If other input variables remain constant for the fair value of a financial instrument measured at fair value as of December 31, 2025 and 2024, the effect of a significant but unobservable input variable fluctuating reasonably on the reporting date is as follows:

		2025
		Favorable change		Unfavorable change
Financial assets at fair value through profit or loss (*1)	W	7,060		(6,966)
Securities at fair value through other<br><br>comprehensive income (*1)		6,829		(5,965)
Derivative assets (*2)		24		(24)
	W	13,913		(12,955)

(*1) The changes in fair value is calculated by increasing or decreasing the major unobservable input variables, liquidation value (-1% to 1%) and discount rate (-1% to 1%).

(*2) The changes in fair value is calculated by increasing or decreasing the volatility (-1% to 1%), which is a major unobservable input variable.

		2024
		Favorable change		Unfavorable change
Financial assets at fair value through profit or loss (*1)	W	9,486		(9,249)
Securities at fair value through other<br><br>comprehensive income (*1)		7,132		(6,840)
Derivative assets (*2)		51		(47)
	W	16,669		(16,136)

(*1) The changes in fair value is calculated by increasing or decreasing the major unobservable input variables, liquidation value (-1% to 1%) and discount rate (-1% to 1%).

(*2) The changes in fair value is calculated by increasing or decreasing the volatility (-1% to 1%), which is a major unobservable input variable.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost

i) The fair value calculation method for major financial instruments measured at amortized cost is as follows:

Classification		Fair value calculation method
Cash and due from bank		The carrying amount and fair value of cash is the same, and the fair value of due from bank at amortized cost is valued at the present value of the expected cash inflows.
Loans		The fair value of the loans is assessed as the present value of the expected cash flows expected to be received discounted at a discount rate taking into account the borrower's credit risk.
Securities		The fair value of the securities at amortized cost is assessed as the present value of expected cash flows expected to be received.
Other financial assets/liabilities		The carrying amount is used as a proxy for fair value because it is difficult to reliably estimate expected cash flows.
Investment contract liabilities		The accumulated pension benefits of the retirement pension contract holders, as defined by the Insurance Business Act and Insurance Supervision Regulations, have been used as fair value proxies.
Debentures		The fair value of debentures is assessed by the present value of expected cash flows expected to be paid.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost (continued)

ii) The carrying amount and fair value of financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025
		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	W	1,604,693		1,604,693
Due from banks at amortized cost		682,162		659,261
Securities at amortized cost
Government bonds		3,509,359		3,049,353
Special purpose bonds		440,985		392,786
		3,950,344		3,442,139
Loans at amortized cost
Retail loans		534,967		530,810
Corporate loans		1,720,294		1,727,937
		2,255,261		2,258,747
Receivables at amortized cost		1,196,976		1,196,976
	W	9,689,436		9,161,816
Financial liabilities
Investment contract liabilities	W	1,541,684		1,541,684
Debentures		798,392		788,577
Other financial liabilities		665,846		665,846
	W	3,005,922		2,996,107

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost (continued)

ii) The carrying amount and fair value of financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	W	777,204		777,204
Due from banks at amortized cost		751,667		754,777
Securities at amortized cost
Government bonds		3,489,625		3,190,906
Special purpose bonds		442,290		416,001
		3,931,915		3,606,907
Loans at amortized cost
Retail loans		697,890		705,859
Corporate loans		2,111,564		2,073,375
		2,809,454		2,779,234
Receivables at amortized cost		1,144,628		1,144,628
	W	9,414,868		9,062,750
Financial liabilities
Investment contract liabilities	W	1,332,468		1,332,468
Debentures		299,487		306,408
Other financial liabilities		461,215		461,215
	W	2,093,170		2,100,091

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

8. Fair value of financial instruments (continued)

(b) Financial instruments at amortized cost (continued)

iii) The fair value of financial instruments that are not measured at their fair values in the statements of financial position but with their fair value disclosed, by valuation level as of December 31, 2025 and 2024 are as follows:

		2025
		Level 1		Level 2		Level 3		Total
Financial assets
Due from banks at amortized cost	W	-		659,261		-		659,261
Securities at amortized cost
Government bonds		3,049,353		-		-		3,049,353
Special purpose bonds		-		392,786		-		392,786
		3,049,353		392,786		-		3,442,139
Loans at amortized cost
Retail loans		-		-		530,810		530,810
Corporate loans		-		-		1,727,937		1,727,937
		-		-		2,258,747		2,258,747
	W	3,049,353		1,052,047		2,258,747		6,360,147
Financial liabilities
Debentures	W	-		-		788,577		788,577
		2024
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets
Due from banks at amortized cost	W	-		754,777		-		754,777
Securities at amortized cost
Government bonds		3,190,906		-		-		3,190,906
Special purpose bonds		-		416,001		-		416,001
		3,190,906		416,001		-		3,606,907
Loans at amortized cost
Retail loans		-		-		705,859		705,859
Corporate loans		-		-		2,073,375		2,073,375
		-		-		2,779,234		2,779,234
	W	3,190,906		1,170,778		2,779,234		7,140,918
Financial liabilities
Debentures	W	-		-		306,408		306,408

The Company does not disclose the fair value hierarchy in relation to items that disclose the carrying amount at fair value, considering the carrying amount as a reasonable approximation of the fair value.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments

(a) Carrying amount of each financial instrument

i) The carrying amount of each financial assets by classification category as of December 31, 2025 and 2024 are as follows:

		2025
		Financial assets at fair<br><br>value through profit or loss (*)		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Hedging derivatives		Total
<General>
Cash and due from<br><br>banks at amortized cost	W	-		-		1,460,260		-		1,460,260
Financial assets at fair<br><br>value through profit or loss		7,150,255		-		-		-		7,150,255
Securities at fair<br><br>value through other<br><br>comprehensive income		-		34,884,286		-		-		34,884,286
Securities at amortized cost		-		-		3,950,344		-		3,950,344
Loans at amortized cost		-		-		2,024,201		-		2,024,201
Receivables at amortized cost		-		-		1,084,240		-		1,084,240
Derivative assets		965		-		-		32,852		33,817
		7,151,220		34,884,286		8,519,045		32,852		50,587,403
< Variable>
Cash and due from<br><br>banks at amortized cost		-		-		537,497		-		537,497
Financial assets at fair<br><br>value through profit or loss		5,673,090		-		-		-		5,673,090
Loans at amortized cost		-		-		41,300		-		41,300
Receivables at amortized cost		-		-		107,048		-		107,048
Derivative assets		657		-		-		-		657
		5,673,747		-		685,845		-		6,359,592
< Retirement>
Cash and due from<br><br>banks at amortized cost		-		-		289,098		-		289,098
Financial assets at fair<br><br>value through profit or loss		441,931		-		-		-		441,931
Securities at fair<br><br>value through other<br><br>comprehensive income		-		404,172		-		-		404,172
Loans at amortized cost		-		-		189,760		-		189,760
Receivables at amortized cost		-		-		5,688		-		5,688
		441,931		404,172		484,546		-		1,330,649
	W	13,266,898		35,288,458		9,689,436		32,852		58,277,644

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(a) Carrying amount of each financial instrument (continued)

i) The carrying amount of each financial assets by classification category as of December 31, 2025 and 2024 are as follows: (continued)

		2024
		Financial assets at fair<br><br>value through profit or loss (*)		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Hedging derivatives		Total
<General>
Cash and due from<br><br>banks at amortized cost	W	-		-		1,064,175		-		1,064,175
Financial assets at fair<br><br>value through profit or loss		6,372,990		-		-		-		6,372,990
Securities at fair<br><br>value through other<br><br>comprehensive income		-		37,001,000		-		-		37,001,000
Securities at amortized cost		-		-		3,931,915		-		3,931,915
Loans at amortized cost		-		-		2,445,238		-		2,445,238
Receivables at amortized cost		-		-		1,023,409		-		1,023,409
Derivative assets		526		-		-		116,899		117,425
		6,373,516		37,001,000		8,464,737		116,899		51,956,152
< Variable>
Cash and due from<br><br>banks at amortized cost		-		-		412,404		-		412,404
Financial assets at fair<br><br>value through profit or loss		4,942,771		-		-		-		4,942,771
Loans at amortized cost		-		-		40,900		-		40,900
Receivables at amortized cost		-		-		114,800		-		114,800
Derivative assets		97		-		-		-		97
		4,942,868		-		568,104		-		5,510,972
< Retirement>
Cash and due from<br><br>banks at amortized cost		-		-		52,292		-		52,292
Financial assets at fair<br><br>value through profit or loss		264,222		-		-		-		264,222
Securities at fair<br><br>value through other<br><br>comprehensive income		-		646,435		-		-		646,435
Loans at amortized cost		-		-		323,316		-		323,316
Receivables at amortized cost		-		-		6,419		-		6,419
		264,222		646,435		382,027		-		1,292,684
	W	11,580,606		37,647,435		9,414,868		116,899		58,759,808

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(a) Carrying amount of each financial instrument (continued)

ii) The carrying amount of each financial liabilities by classification category as of December 31, 2025 and 2024 are as follows:

		2025
		Financial liabilities at fair value through profit or loss		Financial liabilities at amortized cost		Hedging derivatives		Total
<General>
Derivative liabilities	W	-		-		865,574		865,574
Debentures		-		798,392		-		798,392
Other financial liabilities		-		644,300		-		644,300
Lease liabilities		-		66,338		-		66,338
		-		1,509,030		865,574		2,374,604
< Variable>
Derivative liabilities		29		-		-		29
Other financial liabilities		-		21,329		-		21,329
		29		21,329		-		21,358
< Retirement>
Investment contract liabilities		-		1,541,684		-		1,541,684
Derivative liabilities		-		-		5,219		5,219
Other financial liabilities		-		217		-		217
		-		1,541,901		5,219		1,547,120
	W	29		3,072,260		870,793		3,943,082

(*) Included derivatives held for trading.

		2024
		Financial liabilities at fair value through profit or loss		Financial liabilities at amortized cost		Hedging derivatives		Total
<General>
Derivative liabilities	W	-		-		496,009		496,009
Debentures		-		299,487		-		299,487
Other financial liabilities		-		448,524		-		448,524
Lease liabilities		-		77,399		-		77,399
		-		825,410		496,009		1,321,419
< Variable>
Derivative liabilities		245		-		-		245
Other financial liabilities		-		12,544		-		12,544
		245		12,544		-		12,789
< Retirement>
Investment contract liabilities		-		1,332,468		-		1,332,468
Derivative liabilities		-		-		5,338		5,338
Other financial liabilities		-		147		-		147
		-		1,332,615		5,338		1,337,953
	W	245		2,170,569		501,347		2,672,161

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(b) Net profit or loss classification by classification of financial instruments

Net profit or loss on financial instruments for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Net Interest<br>income or expense		Dividend<br>income		Other gains and losses		Gain or loss<br>on valuation		Gain or loss<br>on disposal		Total
<General>
Cash and due from<br>banks at amortized cost	W	43,950		-		1,466		-		10,993		56,409
Financial assets at fair<br>value through profit or loss		23,435		-		202,522		49,448		16,521		291,926
Securities at fair<br>value through other<br>comprehensive income		1,089,775		5,556		151,092		-		16,115		1,262,538
Securities at amortized cost		116,982		-		2		-		-		116,984
Loans at amortized cost		103,655		-		(7,646)		-		3,437		99,446
Receivables at amortized cost		3,657		-		430		-		-		4,087
Derivatives held for trading		-		-		(59,313)		-		-		(59,313)
Derivatives held for hedging		-		-		(187,207)		-		-		(187,207)
Debentures		(25,686)		-		-		-		-		(25,686)
Other financial liabilities		(29)		-		-		-		-		(29)
Lease liabilities		(1,998)		-		-		-		-		(1,998)
		1,353,741		5,556		101,346		49,448		47,066		1,557,157
< Variable>
Cash and due from<br>banks at amortized cost		10,238		-		(272)		-		-		9,966
Financial assets at fair<br>value through profit or loss		49,948		31,866		5,378		1,024,241		325,143		1,436,576
Loans at amortized cost		830		-		-		-		-		830
Receivables at amortized cost		18		-		(625)		-		-		(607)
Derivatives held for trading		-		-		(13,605)		-		-		(13,605)
		61,034		31,866		(9,124)		1,024,241		325,143		1,433,160
< Retirement>
Cash and due from<br>banks at amortized cost		806		-		(4)		-		-		802
Financial assets at fair<br>value through profit or loss		3		152		3,791		1,351		6,617		11,914
Securities at fair<br>value through other<br>comprehensive income		14,049		195		(524)		-		1,275		14,995
Loans at amortized cost		7,202		-		2,388		-		-		9,590
Receivables at amortized cost		-		-		2		-		-		2
Derivatives held for trading		-		-		10		-		-		10
Derivatives held for hedging		-		-		697		-		-		697
Investment contract liabilities		(39,135)		-		-		-		-		(39,135)
		(17,075)		347		6,360		1,351		7,892		(1,125)
	W	1,397,700		37,769		98,582		1,075,040		380,101		2,989,192

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(b) Net profit or loss classification by classification of financial instruments (continued)

Net profit or losses by classification of financial instruments for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Net Interest<br>income or expense		Dividend<br>income		Other gains and losses		Gain or loss<br>on valuation		Gain or loss<br>on disposal		Total
<General>
Cash and due from<br>banks at amortized cost	W	42,177		-		742		-		-		42,919
Financial assets at fair<br>value through profit or loss		21,249		-		323,867		21,506		6,109		372,731
Securities at fair<br>value through other<br>comprehensive income		1,068,860		4,121		410,621		-		3,399		1,487,001
Securities at amortized cost		128,985		-		23		-		21,719		150,727
Loans at amortized cost		129,355		-		(8,210)		-		(323)		120,822
Receivables at amortized cost		3,391		-		21,608		-		-		24,999
Derivatives held for trading		-		-		8,891		-		-		8,891
Derivatives held for hedging		-		-		(506,397)		-		-		(506,397)
Debentures		(15,761)		-		-		-		-		(15,761)
Other financial liabilities		(36)		-		-		-		-		(36)
Lease liabilities		(2,354)		-		-		-		-		(2,354)
		1,375,866		4,121		251,145		21,506		30,904		1,683,542
< Variable>
Cash and due from<br>banks at amortized cost		10,788		-		3,857		-		-		14,645
Financial assets at fair<br>value through profit or loss		66,041		28,001		119,874		10,159		82,282		306,357
Loans at amortized cost		1,672		-		-		-		-		1,672
Receivables at amortized cost		19		-		1,505		-		-		1,524
Derivatives held for trading		-		-		(119,124)		-		-		(119,124)
		78,520		28,001		6,112		10,159		82,282		205,074
< Retirement>
Cash and due from<br>banks at amortized cost		816		-		7		-		-		823
Financial assets at fair<br>value through profit or loss		63		110		5,614		2,773		2,187		10,747
Securities at fair<br>value through other<br>comprehensive income		24,542		278		5,908		-		(20,138)		10,590
Loans at amortized cost		14,301		-		2,401		-		-		16,702
Receivables at amortized cost		-		-		166		-		-		166
Derivatives held for trading		-		-		(200)		-		-		(200)
Derivatives held for hedging		-		-		(5,730)		-		-		(5,730)
Investment contract liabilities		(59,991)		-		-		-		-		(59,991)
		(20,269)		388		8,166		2,773		(17,951)		(26,893)
	W	1,434,117		32,510		265,423		34,438		95,235		1,861,723

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(c) Financial instrument offsetting

Details of financial instruments subject to collective offsetting agreements or similar agreements as of December 31, 2025 and 2024 are as follows:

		2025
		Total financial instruments recognized		Total amount of financial instruments recognized that were offset		Net amount of financial instruments presented in the statement of financial position		Related amounts not offset in the statements of<br><br>financial position				Net amount
																		Financial instruments		Cash collateral received
Financial assets
Derivative assets	W	33,817		-		33,817		33,817		-		-
Purchase under repurchase agreement		41,300		-		41,300		41,300		-		-
Foreign currency-denominated securities lending		1,265,304		-		1,265,304		1,092,398		-		172,906
	W	1,340,421		-		1,340,421		1,167,515		-		172,906
Financial liabilities
Derivative liabilities	W	870,793		-		870,793		819,831		-		50,962

(*) Securities lending transactions represent transactions in which the Company directly lends securities and receives collateral. The amounts exclude W9,992,630 million relating to securities lent through an intermediary, the Korea Securities Finance Corporation, for which pledges were established in the name of the intermediary.

		2024
		Total financial instruments recognized		Total amount of financial instruments recognized that were offset		Net amount of financial instruments presented in the statement of financial position		Related amounts not offset in the statements of<br><br>financial position				Net amount
																		Financial instruments		Cash collateral received
Financial assets
Derivative assets	W	117,425		-		117,425		108,915		-		8,510
Purchase under repurchase agreement		40,900		-		40,900		40,900		-		-
Foreign currency-denominated securities lending		1,260,151		-		1,260,151		1,197,807		-		62,344
	W	1,418,476		-		1,418,476		1,347,622		-		70,854
Financial liabilities
Derivative liabilities	W	501,347		-		501,347		494,031		-		7,316

(*) Securities lending transactions represent transactions in which the Company directly lends securities and receives collateral. The amounts exclude W8,211,309 million relating to securities lent through an intermediary, the Korea Securities Finance Corporation, for which pledges were established in the name of the intermediary.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

9. Classification category of financial instruments (continued)

(d) Transfers transaction of financial assets

i) Financial instruments which do not meet the derecognition criteria

① Securities Lending Transactions

If the Company lends securities owned by itself, the ownership of the securities is transferred, but the Company must return the securities at the end of the loan period, so the Company continues to recognize the entire securities as it holds most of the risks and rewards of the securities. The carrying amount of securities lending as of December 31, 2025 and 2024 is as follows:

Classification				2025		2024
Financial assets at fair value		Government bonds	W	9,371		-
through profit or loss		Stocks		35,757		15,826
				45,128		15,826
Securities at fair value through		Government bonds		7,622,098		6,481,140
other comprehensive income		Foreign currency bonds		1,265,304		1,260,151
				8,887,402		7,741,291
Securities at amortized cost		Government bonds		2,370,532		1,730,170
			W	11,303,062		9,487,287

ii) Financial instruments that meet the derecognition criteria but are continuously involved.

As of December 31, 2025 and 2024, there are no financial instruments which meet the derecognition criteria, but the Company is continuously involved.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

10. Material accounting estimates and judgments

In preparing the separate financial statements, the Company makes judgments about assumptions and assumptions about the future. These estimates and judgments are continually evaluated, taking into account other factors such as past experiences and future events that are reasonably predictable from the current situation. The accounting estimates calculated in this way may not match the actual results. The judgments on accounting estimates and assumptions that include significant risks that can materially change the carrying amounts of assets and liabilities as of the reporting date are as follows:

(a) Fair value of financial instruments

The fair value of financial instruments (e.g., over-the-counter derivatives) that are not traded in an active trading market is determined using valuation techniques. As of the end of the reporting period, the Company makes judgments regarding the selection and assumptions of various valuation techniques based on major market conditions. When the valuation model is used to determine the fair value of various financial instruments that are not traded in the normal trading market, the Company uses a variety of methods from the general valuation model to the developed self-evaluation model, in which various input variables and assumptions are applied.

(b) Allowance for credit losses and provision for unused commitments

The Company assesses the impairment of the loan receivables and establishes provisions for bad debts and for unused commitment limits. The provision for such credit losses is determined by the assumptions and variables of the model used to estimate expected cash flows for each borrower to estimate the individual bad debt allowance and the collective bad debt allowance and unused commitment allowance.

(c) Impairment of non-financial assets

The Company evaluates the existence of signs of impairment for all non-financial assets at the end of each reporting period. However, for intangible assets with indefinite useful life, the impairment test is conducted every year by comparing the recoverable amount and the carrying amount regardless of signs suggesting impairment. Other non-financial assets are being tested for impairment when there is an indication that the carrying amount will not be recoverable. To calculate the value-in-use, the management chooses an appropriate discount rate to estimate the expected future cash flows from the asset or cash-generating unit and calculate the present value of the expected future cash flows.

(d) Defined benefit obligation

The present value of defined benefit obligations may vary depending on various factors determined by actuarial methods that use many assumptions. The assumptions used to determine the net cost (benefit) of the pension include the discount rate, and changes in these assumptions will affect the carrying amount of the defined benefit obligation.

The Company determines the appropriate discount rate at the end of each year. These discount rates represent the interest rates that should be used to determine the present value of estimated future cash outflows expected to occur when the defined benefit obligation is settled. The Company determines the appropriate discount rate by considering the interest rate of high-quality corporate bonds that are denominated in the currency in which the pension will be paid and have maturity similar to that of the related defined benefit obligation.

Other major assumptions related to defined benefit obligations are based on some current market conditions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

10. Material accounting estimates and judgments (continued)

(e) Insurance contract liabilities and reinsurance contract assets (liabilities)

The Company calculates the present value of the future cash flows of the remaining benefit liabilities and incurred claims liabilities for measurement purposes. This involves estimating the neutral present value of future cash flows, considering the time value of money, adjusting for financial risks associated with future cash flows, and making risk adjustments for non-financial risks. The measurement of the present value of these cash flows is determined by estimating relevant market variables, assessing uncertainties regarding the amounts and timing of future cash flows, considering actuarial and economic assumptions, and other risks.

The number of coverage units in the group of insurance contracts is determined by considering the amount of benefit provided by contracts within the group the duration of expected coverage, the frequency and recurrence of the coverage risk for all coverage units allocated to the current period.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

11. Cash and due from banks at amortized cost

(a) Cash and due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025		2024
Cash and cash equivalents:
Savings account	W	97,592		116,045
Current account		55		57
Others		1,507,046		661,102
		1,604,693		777,204
Due from banks at amortized cost:
Time deposit		430,000		450,000
Installment savings		168,250		228,250
Other deposits		84,266		74,305
(Credit loss allowance)		(354)		(888)
		682,162		751,667
	W	2,286,855		1,528,871

(b) Restricted due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025		2024		Restrictions<br><br>on use
Due from banks denominated in won	W	70,811		59,566		Deposits for opening current accounts, deposits for futures transactions, etc.
Due from banks denominated in foreign currency		13,455		14,739
	W	84,266		74,305

(*) Due from banks at amortized cost is the amount before deducting the credit loss allowance.

(c) The changes in credit loss allowance for due from banks at amortized cost for the years ended December 31, 2025 and 2024, are as follows:

		Designated for measurement of<br><br>12-month expected credit loss
		2025		2024
Beginning balance of credit loss allowance	W	888		423
Provision for (reverse of) credit loss allowance		(534)		465
Ending balance of credit loss allowance	W	354		888

(d) Gains or losses arising from the derecognition of due from banks at amortized cost for the year ended December 31, 2025 are as follows:

		Carrying amount (*)		Gains or losses
Installment savings	W	122,550		17,064
Time deposits		33,186		(6,071)

(*) The carrying amount includes accrued interest of W65,736 million.

The installment savings and the time deposits were early redeemed and derecognized from financial as a result of the issuer’s early termination and the closure of the related business segment, respectively during the year ended December 31, 2025.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

12. Financial assets at fair value through profit or loss

(a) Financial assets at fair value through profit or loss as of December 31, 2025 and 2024, are as follows:

		2025		2024
Due from banks:
Due from banks in foreign currency	W	40,862		35,450
Securities:
Debt securities:
Government bonds		1,099,101		1,395,210
Special purpose bonds		83,762		67,325
Financial institutions bonds		177,496		204,029
Corporate bonds		108,745		146,417
Puttable stocks		53,233		56,035
Puttable equity instruments		259,238		245,761
Beneficiary certificates		7,654,557		6,399,236
Other securities		139,540		202,256
Puttable financial instruments in foreign currency		2,408		3,035
Beneficiary certificates in foreign currency		1,571,654		1,422,594
Other securities in foreign currency		165,600		214,102
		11,315,334		10,356,000
Equity securities:
Stocks		1,908,466		1,187,865
Other foreign securities		614		668
		1,909,080		1,188,533
		13,224,414		11,544,533
	W	13,265,276		11,579,983

(b) Gains and losses on financial assets at fair value through profit or loss

Gains and losses on financial assets at fair value through profit or loss for the years ended December 31, 2025 and 2024, are as follows:

		2025		2024
Gain on financial assets measured at fair value through profit or loss:
Gain on valuation	W	1,277,560		483,315
Gain on disposal		414,204		270,828
Others		239,682		261,660
		1,931,446		1,015,803
Loss on financial assets measured at fair value through profit or loss:
Loss on valuation		202,519		448,876
Loss on disposal		65,924		180,250
		268,443		629,126
Net gain on financial assets at fair value through profit or loss	W	1,663,003			386,677

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

12. Financial assets at fair value through profit or loss (continued)

(c) The beneficiary certificates that have significant influence among the beneficiary certificates held by the Company, which are subject to consolidation, as of December 2025 and 2024 are as follows:

Investee	2025
	Location		Reporting month of the financial statements		Ownership		Carrying<br><br>amount
Mirae Asset Maps Global Infra Private Special Asset Trust 2	Korea		December		95.89%	W	4,942
Shinhan AIM Credit Fund 3	Korea		December		99.90%		171,734
Shinhan AIM Private fund of funds Trust 7-A	Korea		December		99.58%		21,805
Shinhan AIM Private fund of funds Trust 6-B	Korea		December		99.80%		67,996
Shinhan AIM Private fund of funds Trust 5	Korea		December		99.88%		30,473
KB Global Private Real Estate Debt Fund 23	Korea		December		99.40%		50,616
KB Global Private Real Estate Debt Fund 21	Korea		December		99.53%		58,421
Shinhan KKR Global Program REC Private Investment Trust	Korea		December		93.02%		102,431
Shinhan KKR Global Program PEF Private Investment Trust	Korea		December		93.02%		83,459
Shinhan KKR Global Program PDF Private Investment Trust	Korea		December		93.02%		210,312
Shinhan LCP X Private Investment Trust No.4(H)	Korea		December		99.75%		39,360
Pinestreet BDC Global Corporate FoF 38	Korea		December		99.83%		280,923
Pinestreet IG Global Corporate FoF 39	Korea		December		99.90%		96,404
Shinhan BDC OClC Private investment Trust No.1 (H)	Korea		December		99.96%		279,740
Shinhan SLAMS TPA Private Fund	Korea		December		99.70%		106,963
Shinhan Apollo SFG Private Investment Trust No.1()	Korea		October		99.91%		112,248
Shinhan BDC OCIC Private Investment Trust No.2(H)	Korea		December		99.77%		48,682
Shinhan Apollo ADS Private Investment Trust No.1(H)	Korea		December		99.77%		48,683
						W	1,815,192

All values are in US Dollars.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

12. Financial assets at fair value through profit or loss (continued)

(c) The beneficiary certificates that have significant influence among the beneficiary certificates held by the Company, which are subject to consolidation, as of December 2025 and 2024 are as follows: (continued)

Investee		2024
		Location		Reporting month of the financial statements		Ownership		Carrying<br><br>amount
Mirae Asset Maps Global Infra Private Special Asset Trust 2		Korea		December		95.89%	W	4,726
Shinhan AIM Credit Fund 3		Korea		December		99.90%		177,355
Shinhan AIM Private fund of funds Trust 7-A		Korea		December		99.58%		21,965
Shinhan AIM Private fund of funds Trust 6-B		Korea		December		99.80%		61,242
Shinhan AIM Private fund of funds Trust 5		Korea		December		99.88%		63,458
KB Global Private Real Estate Debt Fund 23		Korea		December		99.40%		66,061
KB Global Private Real Estate Debt Fund 21		Korea		December		99.53%		44,735
Shinhan KKR Global Program REC Private Investment Trust		Korea		December		93.02%		73,184
Shinhan KKR Global Program PEF Private Investment Trust		Korea		December		93.02%		63,305
Shinhan KKR Global Program PDF Private Investment Trust		Korea		December		93.02%		159,384
Shinhan LCP X Private Investment Trust No.4(H)		Korea		December		99.75%		30,252
							W	765,667

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

13. Securities at fair value through other comprehensive income

(a) Securities at fair value through other comprehensive income as of December 31, 2025 and 2024, are as follows:

		2025		2024
Debt securities:
Government bonds	W	21,835,014		22,596,093
Special purpose bonds		5,982,047		7,143,921
Financial institution bonds		832,580		1,189,289
Corporate bonds		2,078,925		2,868,627
Debt securities in foreign currency		4,457,941		3,688,090
		35,186,507		37,486,020
Equity securities (*):
Stocks		1,522		2,504
Other securities		100,429		158,911
		101,951		161,415
	W	35,288,458		37,647,435

(*) The Company elected to designate as equity securities measured at fair value through other comprehensive income for reasons such as retention as required by its policy.

(b) Changes in total carrying amount

The changes in total carrying amount of debt securities at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance (*1)	W	37,486,020		35,235,213
Acquisition		4,252,714		4,578,354
Disposal and redemption		(5,022,696)		(4,069,569)
Others (*2)		(1,529,531)		1,742,022
Ending balance (*1)	W	35,186,507		37,486,020

(*1) The total carrying amount subject to credit loss allowance is the amortized cost of the debt securities.

(*2) Included the effects of valuation, changes in foreign exchange rates, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

13. Securities at fair value through other comprehensive income (continued)

(c) Changes in credit loss allowance

Changes in credit loss allowance for debt securities at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance (*)	W	7,565		8,790
Reversal of credit loss allowance		(1,268)		(1,225)
Ending balance (*)	W	6,297		7,565

(*) The above provisions for credit loss were recognized in gains (losses) on valuation of securities at fair value through other comprehensive income and were not adjusted to the carrying amount of the corresponding assets in the separate statements of financial position.

(d) Equity instruments designated at fair value through other comprehensive income were disposed during the years ending December 31, 2025 and 2024. At the time of disposals, the fair value and accumulated valuation gains or losses are as follows:

		2025
		Fair value at disposal date		Accumulated gains/losses at disposal date
Other securities	W	60,000		-

(*) The disposal was made as a result of the issuer’s exercise of the call option on the hybrid bonds.

		2024
		Fair value at disposal date		Accumulated gains/losses at disposal date
Stocks	W	100		(41)

(*) The disposal was made due to a change in holding purpose, and the accumulated valuation gains or losses were transferred to unappropriated retained earnings.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

13. Securities at fair value through other comprehensive income (continued)

(e) The dividend income recognized related to equity instruments at fair value through other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Dividend income recognized from assets held at the end of<br><br>the reporting period
Other Securities	W	4,580		4,399
Dividend income recognized from assets disposed of<br><br>during the reporting period
Other Securities		1,171		-
	W	5,751		4,399

(f) Gains and losses on disposal of securities at fair value through other comprehensive income recognized for the years ended December 31, 2025 and 2024, are as follows:

		2025		2024
Gain on disposal of securities at fair value through other<br><br>comprehensive income	W	81,508		79,735
Loss on disposal of securities at fair value through other<br><br>comprehensive income		(64,118)		(96,475)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

14. Securities at amortized cost

(a) Securities at amortized cost as of December 31, 2025 and 2024 are as follows:

		2025		2024
Government bonds	W	3,509,359		3,489,625
Special purpose bonds		441,168		442,475
(Credit loss allowance)		(183)		(185)
	W	3,950,344		3,931,915

(b) Changes in total carrying amount

Changes in total carrying amounts of securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance	W	3,932,100		4,348,231
Disposal		-		(427,907)
Others (*)		18,427		11,776
Ending balance	W	3,950,527		3,932,100

(*) The amounts include amortization recognized using the effective interest method.

(c) Changes in credit loss allowance

Changes in credit loss allowance for securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

		12-month expected credit loss
		2025		2024
Beginning balance	W	185		208
Reversal of credit loss allowance		(2)		(23)
Ending balance	W	183		185

(d) Gains or losses on derecognition

Gains or losses on derecognition of securities at amortized cost for the year ended December 31, 2024 are as follows:

		Par value		Book value		Profits or losses resulting from derecognition (*)
Government bonds	W	370,000		427,906		21,719

(*) W 42,081 million of accumulated other comprehensive income on bond forwards was reclassified as profit for the year and included in the profit or loss amount due to disposal upon the derecognition of securities at amortized cost.

Certain securities at amortized cost were disposed during the year ended December 31, 2024 to secure additional asset duration for the purpose of comprehensive assets and liabilities management in response to changes in interest rates.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

15. Investments in subsidiaries and associates

(a) Investments in associates as of December 31, 2025 and 2024 are as follows:

Investees		Location		Reporting month of the financial statements		Ownership (%)				Carrying amount
									2025		2024		2025		2024
Subsidiaries
Shinhan Financial Plus Co., Ltd.		Korea		December		100.00		100.00	W	124,000		109,000
Shinhan Life Insurance Vietnam Co., Ltd.		Vietnam		December		100.00		100.00		114,144		114,144
Shinhan LifeCare Co., Ltd.		Korea		December		100.00		100.00		100,437		50,437
Associates
iPIXEL Co., Ltd. (*)		Korea		December		10.44		10.51		-		-
Findvalue JD Fund No.1		Korea		December		27.03		27.03		1,000		1,000
									W	339,581		274,581

(*) Although the ownership percentages are less than 20%, the Company applies the equity method accounting as it participates in policy-making processes and therefore can exercise significant influence on the investee.

Beneficiary certificates, which are subsidiaries, are classified as financial assets at fair value through profit or loss in accordance with K-IFRS 1109 and are separately presented in the Note ‘12. Financial assets at fair value through profit or loss’.

(b) Changes in investments in subsidiaries and associates for the years ended December 31, 2025 and 2024 are as follows:

		2025
Investees (*)		Beginning balance		Acquisition		Disposal		Impairment		Ending balance
Shinhan Financial Plus Co., Ltd.	W	109,000		15,000		-		-		124,000
Shinhan Life Insurance Vietnam Co., Ltd.		114,144		-		-		-		114,144
Shinhan LifeCare Co., Ltd.		50,437		50,000		-		-		100,437
Findvalue JD Fund No.1		1,000		-		-		-		1,000
	W	274,581		65,000		-		-		339,581

(*) The Company accounts for investments in subsidiaries and associates at acquisition cost.

		2024
Investees (*)		Beginning balance		Acquisition		Disposal		Impairment		Ending balance
Shinhan Financial Plus Co., Ltd.	W	109,000		-		-		-		109,000
Shinhan Life Insurance Vietnam Co., Ltd.		114,144		-		-		-		114,144
Shinhan LifeCare Co., Ltd.		50,437		-		-		-		50,437
Findvalue JD Fund No.1		1,000		-		-		-		1,000
	W	274,581		-		-		-		274,581

(*) The Company accounts for investments in subsidiaries and associates at acquisition cost.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost

(a) Loans and receivables at amortized cost as of December 31, 2025 and 2024 are as follows:

i) Loans at amortized cost

		2025		2024
Mortgage loans	W	632,526		679,799
Credit loans		1,322,447		1,754,050
Loans secured by third party guarantee		270,361		349,487
Other loans		61,300		60,900
		2,286,634		2,844,236
Deferred loan origination cost (fees)		(3,468)		783
(Credit loss allowance)		(27,905)		(35,565)
	W	2,255,261		2,809,454

ii) Receivables at amortized cost

		2025		2024
Receivables, etc.	W	75,694		73,752
Deposits		54,350		48,887
Accrued income		1,093,479		1,057,137
		1,223,523		1,179,776
(Present value discounts)		(2,018)		(2,261)
(Credit loss allowance)		(24,529)		(32,887)
	W	1,196,976		1,144,628

(b) Changes in total carrying amount

Changes in total carrying value of loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

i) Loans at amortized cost

		2025
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset
Beginning balance	W	682,492		22,798		17,974		1,858,681		263,074		-		2,845,019
Transfer to (from)<br><br>12-month expected credit losses		6,614		(6,567)		(47)		-		-		-		-
Transfer to (from) lifetime expected credit losses		(7,251)		7,490		(239)		-		-		-		-
Transfer to (from) impaired financial asset		(17,713)		(3,280)		20,993		-		(3,591)		3,591		-
Origination, collection and others		(145,135)		(4,904)		(3,484)		(225,879)		(167,242)		-		(546,644)
Charge off (*)		-		-		(13,074)		-		-		-		(13,074)
Disposal		-		-		(2,135)		-		-		-		(2,135)
Ending balance	W	519,007		15,537		19,988		1,632,802		92,241		3,591		2,283,166

(*) The amount of uncollected loans (principal) at amortized cost, which has been charged off but is still being recovered as of December 31, 2025, is W21,562 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost (continued)

(b) Changes in total carrying amount (continued)

Changes in total carrying amount of loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows: (continued)

i) Loans at amortized cost (continued)

		2024
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>asset
Beginning balance	W	770,296		24,596		14,249		2,640,162		211,068		-		3,660,371
Transfer to (from)<br><br>12-month expected credit losses		7,948		(7,782)		(166)		20,000		(20,000)		-		-
Transfer to (from) lifetime expected credit losses		(13,075)		13,322		(247)		(54,617)		54,617		-		-
Transfer to (from) impaired financial asset		(16,789)		(1,766)		18,555		-		-		-		-
Origination, collection and others		(65,888)		(5,572)		(2,619)		(746,864)		17,389		-		(803,554)
Charge off (*)		-		-		(10,660)		-		-		-		(10,660)
Disposal		-		-		(1,138)		-		-		-		(1,138)
Ending balance	W	682,492		22,798		17,974		1,858,681		263,074		-		2,845,019

(*) The amount of uncollected loans (principal) at amortized cost, which has been charged off but is still being recovered as of December 31, 2024, is W 32,322 million.

ii) Receivables at amortized cost

		2025
		12-month<br><br>expected credit loss		Lifetime<br><br>expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	2,668,866		2,498		36,207		2,707,571
Transfer to (from) 12-month<br><br>expected credit losses		33		(32)		(1)		-
Transfer to (from) lifetime expected credit losses		(31)		40		(9)		-
Transfer to (from) impaired financial assets		(1,598)		9		1,589		-
Origination, collection and others		811,706		(301)		(77)		811,328
Charge off		-		-		(10,185)		(10,185)
Ending balance (*)	W	3,478,976		2,214		27,524		3,508,714

(*) Included the total carrying amounts of cash and cash equivalents and due from banks at amortized cost.

		2024
		12-month<br><br>expected credit loss		Lifetime<br><br>expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	2,718,336		2,176		39,955		2,760,467
Transfer to (from) 12-month<br><br>expected credit losses		57		(54)		(3)		-
Transfer to (from) lifetime expected credit losses		(171)		174		(3)		-
Transfer to (from) impaired financial assets		(98)		(700)		798		-
Origination, collection and others		(49,258)		902		(434)		(48,790)
Charge off		-		-		(4,106)		(4,106)
Ending balance (*)	W	2,668,866		2,498		36,207		2,707,571

(*) Included the total carrying amounts of cash and cash equivalents and due from banks at amortized cost.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost (continued)

(c) Changes in credit loss allowance

Changes in credit loss allowance for loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

i) Loans at amortized cost

		2025
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>assets		12-month expected credit loss		Lifetime expected credit loss		Impaired financial assets
Beginning balance	W	8,353		3,719		13,302		4,119		6,072		-		35,565
Transfer to (from)<br><br>12-month expected credit losses		1,210		(1,168)		(42)		-		-		-		-
Transfer to (from) lifetime expected credit losses		(363)		448		(85)		-		-		-		-
Transfer to (from) impaired financial asset		(488)		(583)		1,071		-		(798)		798		-
Provision (reversal)		(3,774)		(1,022)		11,380		(667)		(3,977)		2,793		4,733
Collection		-		-		1,787		-		-		-		1,787
Charge off		-		-		(13,074)		-		-		-		(13,074)
Disposal		-		-		(1,106)		-		-		-		(1,106)
Ending balance	W	4,938		1,394		13,233		3,452		1,297		3,591		27,905
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Retail loans						Corporate loans						Total
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial<br><br>assets		12-month expected credit loss		Lifetime expected credit loss		Impaired financial assets
Beginning balance	W	8,082		3,184		9,845		5,806		10,553		-		37,470
Transfer to (from)<br><br>12-month expected credit losses		1,282		(1,240)		(42)		301		(301)		-		-
Transfer to (from) lifetime expected credit losses		(357)		384		(27)		(120)		120		-		-
Transfer to (from) impaired financial asset		(382)		(286)		668		-		-		-		-
Provision (reversal)		(272)		1,677		12,173		(1,868)		(4,300)		-		7,410
Collection		-		-		1,780		-		-		-		1,780
Charge off		-		-		(10,660)		-		-		-		(10,660)
Disposal		-		-		(435)		-		-		-		(435)
Ending balance	W	8,353		3,719		13,302		4,119		6,072		-		35,565

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

16. Loans and receivables at amortized cost (continued)

(c) Changes in credit loss allowance (continued)

Changes in credit loss allowance for loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows: (continued)

ii) Receivables at amortized cost

		2025
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	1,337		89		32,349		33,775
Transfer to (from) 12-month expected credit losses		8		(6)		(2)		-
Transfer to (from) lifetime expected credit losses		(2)		8		(6)		-
Transfer to (from) impaired financial assets		(1,758)		(10)		1,768		-
Provision (reversal)		1,181		(31)		(145)		1,005
Collection		-		-		288		288
Charge off		-		-		(10,185)		(10,185)
Ending balance (*)	W	766		50		24,067		24,883

(*) Included credit loss allowance for due from banks at amortized cost.

		2024
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	866		82		34,648		35,596
Transfer to (from) 12-month expected credit losses		9		(6)		(3)		-
Transfer to (from) lifetime expected credit losses		(2)		5		(3)		-
Transfer to (from) impaired financial assets		(2)		(15)		17		-
Provision (reversal)		466		23		1,646		2,135
Collection		-		-		150		150
Charge off		-		-		(4,106)		(4,106)
Ending balance (*)	W	1,337		89		32,349		33,775

(*) Included credit loss allowance for due from banks at amortized cost.

(d) Deferred loan origination cost (fees)

Changes in deferred loan origination cost (fees) for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Beginning balance	W	783		(194)
Loan origination		(5,181)		(1,313)
Amortization		930		2,290
Ending balance	W	(3,468)		783

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

17. Lease

(a) Details of the right-of-use assets as of December 31, 2025 and 2024 are as follows:

		2025
		Acquisition cost		Accumulated depreciation		Carrying amount
Real estate	W	215,445		(149,641)		65,804
Vehicle		1,032		(525)		507
	W	216,477		(150,166)		66,311
		2024
---	---	---	---	---	---	---
		Acquisition cost		Accumulated depreciation		Carrying amount
Real estate	W	195,188		(118,486)		76,702
Vehicle		1,041		(471)		570
	W	196,229		(118,957)		77,272

(b) Changes in the right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Real estate		Vehicle		Total
Beginning balance	W	76,702		570		77,272
Acquisition		26,939		317		27,256
Disposal		(3,059)		(105)		(3,164)
Depreciation		(34,096)		(276)		(34,372)
Transfer		(681)		-		(681)
Ending balance	W	65,805		506		66,311
		2024
---	---	---	---	---	---	---
		Real estate		Vehicle		Total
Beginning balance	W	92,165		776		92,941
Acquisition		16,683		281		16,964
Disposal		(496)		(186)		(682)
Depreciation		(31,375)		(301)		(31,676)
Transfer		(275)		-		(275)
Ending balance	W	76,702		570		77,272

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

17. Lease (continued)

(c) The amount recognized in profit or loss for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Depreciation of right-of-use assets	W	34,372		31,676
Interest expenses of lease liability		1,998		2,354
Expenses related to low-value lease assets		352		377
		36,722		34,407
Revenues from sublease of right-of-use assets		(734)		(962)
	W	35,988		33,445

(d) Total cash outflows from leases for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Cash outflows of lease liabilities	W	31,089		28,795
Cash outflows of low-value lease assets		352		377
	W	31,441		29,172

(e) The estimated timing of outflows of lease liabilities as of the years ended December 31, 2025 and 2024 are as follows:

		2025
Due(*)		Real estate		Vehicle		Total
In 1 month or less	W	3,244		24		3,268
After 1 month through 3 months		4,674		47		4,721
After 3 months through 6 months		8,825		67		8,892
After 6 months through 1 year		16,513		121		16,634
After 1 year through 5 years		35,042		285		35,327
After 5 years		-		-		-
	W	68,298		544		68,842

(*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

		2024
Due(*)		Real estate		Vehicle		Total
In 1 month or less	W	2,950		24		2,974
After 1 month through 3 months		5,764		48		5,812
After 3 months through 6 months		8,512		72		8,584
After 6 months through 1 year		16,196		140		16,336
After 1 year through 5 years		46,567		334		46,901
After 5 years		-		-		-
	W	79,989		618		80,607

(*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

18. Property and equipment

(a) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

				2025
		Acquisition cost				Accumulated<br><br>depreciation		Accumulated<br><br>impairment		Carrying amount
Land	W	12,877				-		-		12,877
Buildings		36,913				(9,802)		(10,850)		16,261
Structure		3,894				(2,755)		(780)		359
Rental property (*)		51,214				(37,443)		-		13,771
Equipment (*)		116,361				(95,526)		-		20,835
Other assets		4,814				-		-		4,814
	W	226,073				(145,526)		(11,630)		68,917

(*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

				2024
		Acquisition cost				Accumulated<br><br>depreciation		Accumulated<br><br>impairment		Carrying amount
Land	W	12,877				-		-		12,877
Buildings		36,913				(9,328)		(9,979)		17,606
Structure		3,894				(2,659)		(728)		507
Rental property (*)		43,904				(31,616)		-		12,288
Equipment (*)		110,441				(86,041)		-		24,400
Other assets		246				-		-		246
	W	208,275				(129,644)		(10,707)		67,924

(*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

18. Property and equipment (continued)

(b) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impairment		Depreciation		Ending balance
Land	W	12,877		-		-		-		-		-		12,877
Buildings		17,606		-		-		-		(871)		(474)		16,261
Structure		507		-		-		-		(52)		(96)		359
Rental property		12,288		7,309		-		-		-		(5,826)		13,771
Equipment		24,400		7,403		(119)		16		-		(10,865)		20,835
Other assets		246		4,584		-		(16)		-		-		4,814
	W	67,924		19,296		(119)		-		(923)		(17,261)		68,917

(*) Included amounts transferred from other property and equipment to equipment.

		2024
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impairment		Depreciation		Ending balance
Land	W	12,877		-		-		-		-		-		12,877
Buildings		19,699		14		-		-		(1,590)		(517)		17,606
Structure		739		-		-		-		(113)		(119)		507
Rental property		15,125		2,575		-		508		-		(5,920)		12,288
Equipment		27,593		8,129		(106)		-		-		(11,216)		24,400
Other assets		89		678		(13)		(508)		-		-		246
	W	76,122		11,396		(119)		-		(1,703)		(17,772)		67,924

(*) Included amounts transferred from other property and equipment to rental property.

(c) As of December 31, 2025, there are no property and equipment provided as collateral.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

19. Intangible assets

(a) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

		2025								2024
		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-iyng amount		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-iyng amount
Development cost (*)	W	511,568		(404,603)		(1,168)		105,797		508,344		(343,941)		(1,167)		163,236
Software (*)		141,795		(118,081)		-		23,714		138,579		(106,309)		-		32,270
Membership		8,737		-		(381)		8,356		8,737		-		(380)		8,357
Others		29,117		(12)		-		29,105		5,526		(11)		-		5,515
	W	691,217		(522,696)		(1,549)		166,972		661,186		(450,261)		(1,547)		209,378

(*) The acquisition cost of and the accumulated amortization of the development cost and software include the amount related to government subsidies.

(b) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impair<br><br>-ment<br><br>loss		Amortiza<br><br>-tion		Ending balance
Development cost	W	163,236		3,818		-		1,681		-		(62,938)		105,797
Software		32,270		1,645		(8)		1,586		-		(11,779)		23,714
Membership		8,357		-		-		-		(1)		-		8,356
Others		5,515		27,816		(958)		(3,267)		-		(1)		29,105
	W	209,378		33,279		(966)		-		(1)		(74,718)		166,972

(*) Included amounts transferred from intangible assets under development to development cost and software.

		2024
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impair<br><br>-ment<br><br>loss		Amortiza<br><br>-tion		Ending balance
Development cost	W	179,693		12,544		(234)		33,189		(166)		(61,790)		163,236
Software		29,897		10,991		(272)		2,987		-		(11,333)		32,270
Membership		8,357		-		-		-		-		-		8,357
Others		17,455		24,237		-		(36,176)		-		(1)		5,515
	W	235,402		47,772		(506)		-		(166)		(73,124)		209,378

(*) Included amounts transferred from intangible assets under development to development cost and software.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

20. Insured assets

Details of insurance held for cash, securities and property and equipment of the Company as of the December 31, 2025 and 2024 are as follows:

						Amount covered
Insurance type		Insured assets		Insurance company		2025		2024
Comprehensive insurance for financial institutions		Electronic financial transaction		Meritz Fire & Marine<br><br>Insurance Co., Ltd., etc.	W	500		500
Comprehensive property insurance		Comprehensive property risk Mechanical risk<br><br>General liability risk		Meritz Fire & Marine<br><br>Insurance Co., Ltd., etc.		99,959		105,890
Executive Liability Insurance		Directors and officers		Meritz Fire & Marine<br><br>Insurance Co., Ltd.		50,000		50,000
Other insurance 1		Personal information leakage		Meritz Fire & Marine<br><br>Insurance Co., Ltd., etc		5,000		5,000
Other insurance 2		Cash, securities		Meritz Fire & Marine<br><br>Insurance Co., Ltd.		30		270
Other insurance 3		Elevator accident		Samsung Fire & Marine<br><br>Insurance Co., Ltd.		90		90
					W	155,579		161,750

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

21. Investment properties

(a) Details of investment properties as of December 31, 2025 and 2024 are as follows:

		2025						2024
		Acquisition cost		Accumulated<br><br>depreciation		Carrying amount		Acquisition cost		Accumulated<br><br>depreciation		Carrying amount
Land	W	6,032		-		6,032		6,032		-		6,032
Buildings		10,649		(2,708)		7,941		10,649		(2,496)		8,153
	W	16,681		(2,708)		13,973		16,681		(2,496)		14,185

(b) Changes in investment properties for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,153		(212)		7,941
	W	14,185		(212)		13,973
		2024
---	---	---	---	---	---	---
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,365		(212)		8,153
	W	14,397		(212)		14,185

(c) Income and expenses on investment properties

Rental income on investment properties and direct operating expenses for investment properties that generated rental income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Rental income	W	1,626		1,681
Operating expenses		212		212

(d) Fair value measurement

i) The fair value of investment properties as of December 31, 2025 and 2024 are as follows:

		2025		2024
Land	W	13,481		13,850
Buildings		12,809		13,161
	W	26,290		27,011

The fair value of an investment property is determined by the value measured by an independent assessment agency that has recently assessed a similar property in the area of the investment property being assessed, which is classified as Level 3 fair value based on inputs used in the valuation technique.

ii) Valuation techniques and inputs used in measuring the fair value of investment properties are as follows:

		Valuation technique		2025		2024		Inputs
Land		Officially assessed land price-based approach	W	13,481		13,850		Officially assessed land price, transaction-related comparable cases
Buildings		Cost Approach		12,809		13,161		Transaction-related comparable cases
			W	26,290		27,011

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives

(a) Notional amounts of outstanding derivative contracts as of December 31, 2025 and 2024 are as follows

		2025		2024
Currency related derivatives:
Exchange traded:
Currency futures	W	857,030		787,438
Equity related derivatives:
Exchange traded:
Equity futures		270,976		156,694
Over the counter:
Equity options		216,994		343,508
Interest rate related derivatives:
Exchange traded:
Interest rate futures		67,565		68,534
Other derivatives:
Exchange traded:
Commodity futures		9,391		7,704
		1,421,956		1,363,878
Hedges:
Fair value hedges:
Currency forward		325,665		352,619
Cash flow hedges:
Currency forward		2,338,128		2,034,281
Currency swaps		3,677,525		3,127,576
Interest rate forward		3,625,707		2,700,358
		9,967,025		8,214,834
	W	11,388,981		9,578,712

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(b) Fair value

The fair values of derivatives held as of December 31, 2025 and 2024 are as follows:

		2025				2024
		Assets		Liabilities		Assets		Liabilities
Equity related derivatives:
Exchange traded:
Equity futures	W	309		12		-		159
Over the counter:
Equity options		965		-		526		-
Other derivatives:
Exchange traded:
Commodity futures		348		17		97		86
		1,622		29		623		245
Hedges:
Fair value hedges:
Currency forward		2,845		8,275		-		29,428
Cash flow hedges:
Currency forward		661		210,611		-		172,676
Currency swaps		2,601		412,716		2,369		245,963
Interest rate forward		26,745		239,191		114,530		53,280
		32,852		870,793		116,899		501,347
	W	34,474		870,822		117,522		501,592

(c) Gains or losses related to derivatives

Gains or losses related to derivatives for the years ended December 31, 2025 and 2024 are as follows:

			2025		2024
Gains related to derivatives	W	164,553			65,275
Losses related to derivatives		423,970			687,835

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Equity related derivatives:
Exchange traded:
Equity futures	W	309		12		-
Over the counter:
Equity options		619		136		-
Other derivatives:
Exchange traded:
Commodity futures		349		16		-
		1,277		164		-
Hedges:
Fair value hedges:
Currency forward		2,845		8,275		-
Cash flow hedges:
Currency forward		15,031		25,424		(77,126)
Currency swaps		27,449		190,821		(69,574)
Interest rate forward		59		6,703		(267,674)
		45,384		231,223		(414,374)
	W	46,661		231,387		(414,374)

(*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the income tax effect.

(*2) Excluded the change in the other comprehensive income for the year ended December 31, 2025, amounting to W1,497 million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2025.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives (continued)

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Equity related derivatives:
Exchange traded:
Equity futures	W	-		159		-
Over the counter:
Equity options		64		1,633		-
Other derivatives:
Exchange traded:
Commodity futures		97		87		-
		161		1,879		-
Hedges:
Fair value hedges:
Currency forward		-		30,731		-
Cash flow hedges:
Currency forward		-		196,570		20,961
Currency swaps		-		225,780		7,578
Interest rate forward		21		7,414		122,904
		21		460,495		151,443
	W	182		462,374		151,443

(*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the income tax effect.

(*2) Excluded the change in the other comprehensive income for the year ended December 31, 2024, amounting to W(88,537) million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2024.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(e) Gains or losses related to hedge

i) The amounts recognized in profit or loss due to the ineffectiveness of the hedge in fair value hedges for the years ended December 31, 2025 and 2024 are as follows:

		2025
Fair value hedge		Fair value hedge designated gains or losses (hedged item)		Fair value hedge designated gains or losses (hedging instrument)		Ineffective portion of hedge recognized at profit or loss (*)
Foreign currency risk	W	(3,285)		(1,901)		(5,186)

(*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

		2024
Fair value hedge		Fair value hedge designated gains or losses (hedge item)		Fair value hedge designated gains or losses (hedging instrument)		Ineffective portion of hedge recognized at profit or loss (*)
Foreign currency risk	W	40,813		(43,781)		(2,968)

(*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(e) Gains or losses related to hedge (continued)

ii) The amounts and the accounts affecting profit or loss and other comprehensive income due to the ineffectiveness of the hedge in cash flow hedges for the years ended December 31, 2025 and 2024 are as follows:

		2025
Cash flow hedge		Hedge gains or losses for the reporting period recognized at other comprehensive income (*1)		Ineffective portion of hedge recognized at profit or loss (*2)		Amount reclassified from cash flow hedge reserves to profit or loss
Interest rate risk	W	(267,674)		(6,022)		-
Foreign currency translation risk		(146,701)		(2,316)		(176,270)
Discontinuation of<br><br>Hedging (*3)		1,497		-		7
	W	(412,878)		(8,338)		(176,263)

(*1) Amount before deduction of income tax effect as other comprehensive income in the statement of comprehensive income.

(*2) Ineffective portion of hedge: difference of hedging gains or losses between the hedging instrument and the hedged item.

(*3) A derivative contract to avoid the risk of cash flow changes in debt securities due to changes in interest rates, which has matured as of the end of the reporting period.

		2024
Cash flow hedge		Hedge gains or losses for the reporting period recognized at other comprehensive income (*1)		Ineffective portion of hedge recognized at profit or loss (*2)		Amount reclassified from cash flow hedge reserves to profit or loss
Interest rate risk	W	122,904		(7,393)		-
Foreign currency translation risk		28,539		(1,934)		(461,137)
Discontinuation of<br><br>Hedging (*3)		(88,537)		-		47,915
	W	62,906		(9,327)		(413,222)

(*1) Amount before deduction of income tax effect as other comprehensive income in the statement of comprehensive income.

(*2) Ineffective portion of hedge: difference of hedging gains or losses between the hedging instrument and the hedged item.

(*3) A derivative contract to avoid the risk of cash flow changes in debt securities due to changes in interest rates, which has matured as of the end of the reporting period.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(f) Effects of hedge accounting on the separate statement of financial position, the separate statement of comprehensive income, and the separate statement of changes in equity

i) Hedging purpose and strategy

The Company trades derivative instruments to avoid exchange risk and interest rate arising from the assets of the Company. The Company applies fair value hedge accounting using currency forward to avoid fair value changes due to exchange rate changes of foreign currency beneficiary certificates. The Company also applies cash flow hedge accounting using currency forward, currency swap and interest rate forward to avoid cash flow volatility caused by exchange rate and interest rate changes of foreign currency bonds and structured deposits, as well as bonds in Won.

ii) Average hedge ratio

Nominal amounts and average hedge ratios for hedging instruments for the years ended December 31, 2025 and 2024 are as follows:

		2025
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>3 years		After 3 years through<br><br>4 years		After 4 years through<br><br>5 years		After 5 years		Total
Interest rate risk
- Nominal amount of hedging instrument	W	1,064,184		821,851		894,267		741,241		52,300		51,864		3,625,707
- Average price		2.66%		3.16%		3.28%		2.78%		3.12%		3.12%
- Average hedge ratio		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
Foreign currency risk(*)
- Nominal amount of hedging instruments	W	1,440,673		924,737		1,555,099		816,883		889,076		714,850		6,341,318
- Average hedge ratio:		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%

(*) The average exchange rates for the hedging instruments are USD/KRW 1,299.36, EUR/KRW 1,488.89, GBP/KRW 1,484.00, AUD/KRW 886.93, and SEK/KRW 130.77.

		2024
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>3 years		After 3 years through<br><br>4 years		After 4 years through<br><br>5 years		After 5 years		Total
Interest rate risk
- Nominal amount of hedging instrument	W	103,543		1,064,184		670,683		673,962		83,822		104,164		2,700,358
- Average price		3.20%		2.66%		3.24%		3.46%		3.28%		3.12%
- Average hedge ratio		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
Foreign currency risk(*)
- Nominal amount of hedging instruments	W	1,390,969		761,831		869,678		1,354,457		737,635		399,906		5,514,476
- Average hedge ratio:		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%

(*) The average exchange rates for the hedging instruments are USD/KRW 1,273.65, EUR/KRW 1,396.60, GBP/KRW 1,484.00, AUD/KRW 883.39, and SEK/KRW 127.57.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(f) Effects of hedge accounting on the separate statement of financial position, the separate statement of comprehensive income, and the separate statement of changes in equity (continued)

iii) The impact of hedging instruments on the separate statement of financial position, the separate statement of comprehensive income, and the separate statement of changes in equity as of and for the years ended December 31, 2025 and 2024

		2025
		Nominal amount		Carrying value				Fair value changes during the period
						Asset			Liability
Fair value hedge:
Currency forward	W	325,665		2,845		8,275		(1,901)
Cash flow hedge:
Interest rate forward		3,625,707		26,745		239,191		(273,328)
Currency swap		3,677,525		2,601		412,716		(227,548)
Currency forward		2,338,128		661		210,611		(85,023)
		2024
---	---	---	---	---	---	---	---	---	---	---
		Nominal amount		Carrying value				Fair value changes during the period
					Asset		Liability
Fair value hedge:
Currency forward	W	352,619		-		29,428		(43,781)
Cash flow hedge:
Interest rate forward		2,700,358		114,530		53,280		87,936
Currency swap		3,127,576		2,369		245,963		(214,801)
Currency forward		2,034,281		-		172,676		(173,472)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

22. Derivatives (continued)

(f) Effects of hedge accounting on the separate statement of financial position, the separate statement of comprehensive income, and the separate `statement of changes in equity (continued)

iv) The impact of hedged items on the separate statement of financial position, the separate statement of comprehensive income, the separate statement of changes in equity as of and for the years ended December 31, 2025 and 2024

		2025
		Carrying value				Accumulated adjustments for fair value hedge				FV changes during the period		Cash flow hedge reserves
		Asset		Liability		Asset		Liability
Fair value hedge
Foreign exchange risk: securities in foreign currencies	W	354,482		-		-		-		(3,285)		-
Cash flow hedge
Interest rate risk: bonds in won and in foreign currencies		488,318		-		-		-		-		(222,410)
Foreign exchange risk: bonds and loans in foreign currencies		4,388,035		-		-		-		153,355		(67,534)
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Carrying value				Accumulated adjustments for fair value hedge				FV changes during the period		Cash flow hedge reserves
		Asset		Liability		Asset		Liability
Fair value hedge
Foreign exchange risk: securities in foreign currencies	W	386,966		-		-		-		40,813		-
Cash flow hedge
Interest rate risk: bonds in won and in foreign currencies		409,183		-		-		-		-		43,768
Foreign exchange risk: bonds and loans in foreign currencies		3,698,841		-		-		-		413,772		79,166

(g) As of December 31, 2025, due from banks with restriction on use related to derivative transactions is W83,907 million (W74,296 as of December 31, 2024) and W28,942 million of which is deposited at Shinhan Securities Co., Ltd., a related party.

(h) As of December 31, 2025, financial assets of W1,264,644 million (W718,881 million as of December 31, 2024) are provided as collateral to financial institutions such as Samsung Futures Co., Ltd. for derivatives transactions. Of these, the collateral amount provided to the related parties, Shinhan Securities Co., Ltd. and Shinhan Bank Co., Ltd. are W30,537 and W146,627 million, respectively.

(i) As of December 31, 2025, the quantified effect of the mitigation of credit risk related to derivative assets, resulting from collateral held such as securities, amounts to W21,640 million (W81,381 million as of December 31, 2024).

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

23. Other assets

Other assets as of December 31, 2025 and 2024 are as follows:

		2025		2024
Prepaid expense	W	8,224		7,897
Prepayments		1,307		9
Others		346		336
	W	9,877		8,242

24. Pledged Assets

The assets pledged as collateral as of December 31, 2025 and 2024 are as follows:

		2025		2024		Reason for collateral
Securities at fair value through profit or loss	W	170,521		101,197		Variable insurance funds substitute securities transactions
Securities at fair value through other comprehensive income		1,152,880		512,157		Derivatives, compensation joint fund, coinsurance
Securities at amortized cost		183,450		105,527		Derivatives
Investment property		376		376		Collateral mortgage
	W	1,507,227		719,257

25. Insurance contract liabilities

(a) The carrying amounts of insurance contract liabilities as of December 31, 2025 and 2024, are as follows:

i) By insurance product

		2025		2024
Life	W	17,893,980		17,609,493
Health		4,955,045		5,411,591
Annuity & savings		19,249,216		20,427,712
Variable		5,814,382		4,970,854
	W	47,912,623		48,419,650

ii) By type of insurance contract

		2025		2024
Participating	W	5,089,929		5,318,700
Non-participating		37,008,312		38,130,096
Variable		5,814,382		4,970,854
	W	47,912,623		48,419,650

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows:

		2025
		General measurement model						Variable fee approach						Premium allocation approach
		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin
Non-Par
Participating life	W	711,307		9,044		46,786		-		-		-		-
Non-participating life		9,656,916		526,980		2,479,776		-		-		-		-
Participating health		33,518		590		4,290		-		-		-		-
Non-participating health		598,264		603,390		3,095,108		-		-		-		75
Participating annuity & savings		1,226,299		3,122		86		-		-		-		-
Non-participating annuity & savings		1,039,632		88		3		-		-		-		801
Indirect-Par
Non-participating life		3,338,079		105,300		531,685		-		-		-		-
Variable life		1,067,440		55,890		90,018		-		-		-		-
Participating annuity & savings		2,748,281		6,317		79,703		-		-		-		-
Non-participating annuity & savings		11,039,593		44,773		961,124		-		-		-		-
Asset-linked annuity & savings		1,330,933		4,606		131,956		-		-		-		-
Direct-Par
Variable annuity & savings		-		-		-		4,383,410		21,518		133,201		-
Subtotal
Participating		4,719,405		19,073		130,865		-		-		-		-
Non-participating		27,003,417		1,285,137		7,199,652		-		-		-		876
Variable		1,067,440		55,890		90,018		4,383,410		21,518		133,201		-
	W	32,790,262		1,360,100		7,420,535		4,383,410		21,518		133,201		876

(*) The above table resents the liabilities for remaining coverage, where

1. Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2. Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3. Direct-par: Groups of insurance contracts with direct participation features.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows: (continued)

		2024
		General measurement model						Variable fee approach						Premium allocation approach
		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin		Estimates of present value of future cash flows		Risk adjustments		Contractual service margin
Non-Par
Participating life	W	745,498		9,632		37,819		-		-		-		-
Non-participating life		9,421,228		517,447		2,395,406		-		-		-		-
Participating health		41,039		662		2,939		-		-		-		-
Non-participating health		1,141,197		558,063		3,004,480		-		-		-		171
Participating annuity & savings		1,283,222		4,022		91		-		-		-		-
Non-participating annuity & savings		836,409		81		-		-		-		-		-
Indirect-Par
Non-participating life		3,332,895		116,290		551,776		-		-		-		-
Variable life		789,150		56,804		87,522		-		-		-		-
Participating annuity & savings		2,888,543		6,661		77,684		-		-		-		-
Non-participating annuity & savings		12,361,824		40,368		891,849		-		-		-		-
Asset-linked annuity & savings		1,299,061		2,990		126,162		-		-		-		-
Direct-Par
Variable annuity & savings		-		-		-		3,908,127		19,038		48,386		-
Subtotal
Participating		4,958,302		20,977		118,533		-		-		-		-
Non-participating		28,392,614		1,235,239		6,969,673		-		-		-		171
Variable		789,150		56,804		87,522		3,908,127		19,038		48,386		-
	W	34,140,066		1,313,020		7,175,728		3,908,127		19,038		48,386		171

(*) The above table resents the liabilities for remaining coverage, where

1. Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2. Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3. Direct-par: Groups of insurance contracts with direct participation features.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

25. Insurance contract liabilities (continued)

(c) As of December 31, 2025, and December 31, 2024, the Company applied the following assumptions for estimating future cash flows for the contracts held, along with the basis for their determination.

Classification		2025		2024		Assumptions and measurement basis
Lapse ratio		0% ~ 66.77%		0% ~ 69.75%		- The ratio of lapseed contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-lapse-value insurance products), and duration.<br><br>- For zero/low-lapse-value insurance products, the surrender ratio for the period when there is insufficient experience statistics is calculated, using the log-linear regression model, so that it converges to 0.1% at the time of completion of premium payments
Loss ratio		3.16% ~ 1,787.70%		8% ~ 316%		- Other than general mortality: the ratio of accident claims to insurance premiums to on-level risk insurance premiums by risk coverage and elapsed period based on the last five years' experience statistics<br><br>- General mortality: the ratio of actual mortality rate to expected mortality rate by risk coverage and elapsed period based on the last five years' experience statistics
Operating expense ratio		-		-		- Calculate unit costs such as performance, agent commissions, number of new/retained contracts, initial/continuing premiums, reserve funds, etc. based on a business plan (budget) incorporating future expense policies based on recent experience statistics
Discount rate		2.79% ~ 4.59%		2.31% ~ 4.55%		- Disclosure standard interest rate term structure provided by the Financial Supervisory Service
The confidence level for the risk adjustments regarding non-financial risk		75%		75%		- The risk adjustment is calculated as the portion of 75th percentile exceeding the probability-weighted average of the present value of future cash flows, assuming that the probability distribution of the present value of future cash flows follows a normal distribution at each reporting date.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below:

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Non-Par
Participating life
Expected claim (A) W		11,648		11,712		11,728		11,723		11,693		11,633		11,546		11,421		11,256		11,040		50,785		41,996		33,709		26,849		53,892		187,936
Risk Premium (B)		32,757		33,568		34,351		35,089		35,750		36,351		36,879		37,304		37,609		37,793		188,152		178,947		160,757		134,205		231,427		686,650
Loss ratio (A/B)		35.56%		34.89%		34.14%		33.41%		32.71%		32.00%		31.31%		30.62%		29.93%		29.21%		26.99%		23.47%		20.97%		20.01%		23.29%		27.37%
Non-participating life
Expected claim (A) W		493,789		499,149		502,700		506,152		507,814		507,318		506,508		505,064		505,101		503,796		2,488,659		2,367,449		2,107,041		1,726,616		6,264,192		9,723,857
Risk Premium (B)		572,930		572,032		567,986		569,379		568,209		569,984		575,634		580,151		587,183		592,430		3,022,601		3,062,465		2,987,067		2,754,610		11,852,823		12,868,423
Loss ratio (A/B)		86.19%		87.26%		88.51%		88.90%		89.37%		89.01%		87.99%		87.06%		86.02%		85.04%		82.34%		77.31%		70.54%		62.68%		52.85%		75.56%
Participating health
Expected claim (A) W		2,017		1,981		1,785		1,691		1,624		1,546		1,459		1,375		1,302		1,218		4,916		3,246		2,086		1,372		4,257		20,743
Risk Premium (B)		2,868		2,857		2,638		2,549		2,489		2,414		2,320		2,232		2,154		2,060		8,828		6,515		4,698		3,371		7,844		34,945
Loss ratio (A/B)		70.33%		69.34%		67.66%		66.34%		65.24%		64.06%		62.88%		61.62%		60.45%		59.12%		55.68%		49.83%		44.41%		40.71%		54.28%		59.36%
Non-participating health
Expected claim (A) W		765,312		744,833		721,778		707,643		701,354		691,310		682,296		679,945		682,760		686,335		3,527,142		3,712,303		3,701,653		3,603,023		16,702,778		16,158,101
Risk Premium (B)		756,658		743,657		718,165		702,482		692,890		683,450		673,566		675,925		675,399		676,499		3,439,614		3,443,963		3,372,264		3,242,106		14,695,580		15,311,939
Loss ratio (A/B)		101.14%		100.16%		100.50%		100.73%		101.22%		101.15%		101.30%		100.59%		101.09%		101.45%		102.54%		107.79%		109.77%		111.13%		113.66%		105.53%
Participating annuity & savings
Expected claim (A) W		840		731		628		541		466		413		381		358		339		334		1,819		2,500		3,623		4,961		30,464		16,541
Risk Premium (B)		2,350		2,134		1,921		1,742		1,588		1,474		1,428		1,410		1,406		1,438		8,313		11,283		15,118		19,043		76,899		56,663
Loss ratio (A/B)		35.73%		34.24%		32.69%		31.08%		29.35%		28.04%		26.67%		25.40%		24.09%		23.24%		21.88%		22.15%		23.97%		26.05%		39.62%		29.19%
Non-participating annuity & savings
Expected claim (A) W		169		152		87		58		20		13		13		12		11		10		48		46		48		53		194		640
Risk Premium (B)		364		297		164		111		60		50		49		48		46		46		223		208		191		169		455		1,623
Loss ratio (A/B)		46.49%		51.24%		52.90%		52.27%		32.74%		26.71%		25.57%		24.12%		23.34%		22.61%		21.43%		22.00%		25.35%		31.26%		42.68%		39.43%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Indirect-Par
Non-participating life
Expected claim (A) W		137,679		138,980		139,905		141,197		140,579		140,663		141,528		140,624		140,168		140,043		695,006		680,035		653,572		605,557		2,327,859		2,927,369
Risk Premium (B)		133,166		134,460		134,716		135,290		136,967		139,152		141,210		143,518		146,018		147,602		774,557		808,518		813,594		769,494		2,840,238		3,273,610
Loss ratio (A/B)		103.39%		103.36%		103.85%		104.37%		102.64%		101.09%		100.22%		97.98%		95.99%		94.88%		89.73%		84.11%		80.33%		78.70%		81.96%		89.42%
Variable life
Expected claim (A) W		57,354		56,517		55,523		54,865		54,211		53,873		53,386		52,751		52,757		52,875		265,396		271,126		276,720		269,946		918,408		1,176,457
Risk Premium (B)		65,216		64,661		63,631		63,166		63,273		63,665		64,017		64,518		65,349		66,220		346,778		376,553		397,115		381,683		906,076		1,469,065
Loss ratio (A/B)		87.94%		87.41%		87.26%		86.86%		85.68%		84.62%		83.39%		81.76%		80.73%		79.85%		76.53%		72.00%		69.68%		70.73%		101.36%		80.08%
Participating annuity & savings
Expected claim (A) W		425		395		373		352		332		311		290		271		257		242		1,002		657		352		180		368		4,042
Risk Premium (B)		1,045		924		849		764		678		598		529		465		418		378		1,400		955		594		359		689		7,709
Loss ratio (A/B)		40.70%		42.79%		43.92%		46.07%		48.90%		52.03%		54.94%		58.34%		61.44%		63.89%		71.62%		68.84%		59.22%		50.30%		53.36%		52.44%
Non-participating annuity & savings
Expected claim (A) W		5,782		5,541		5,238		5,021		4,831		4,538		4,281		3,964		3,784		3,596		15,225		11,196		7,710		4,315		3,116		60,717
Risk Premium (B)		7,930		7,437		6,957		6,559		6,215		5,890		5,501		5,064		4,800		4,562		19,251		13,943		9,883		6,014		5,663		79,453
Loss ratio (A/B)		72.92%		74.50%		75.29%		76.56%		77.73%		77.04%		77.82%		78.28%		78.83%		78.83%		79.08%		80.30%		78.02%		71.76%		55.03%		76.42%
Asset-linked annuity & savings
Expected claim (A) W		889		854		820		779		737		699		662		612		566		530		2,174		1,476		941		514		331		8,900
Risk Premium (B)		1,043		997		957		903		855		817		771		694		643		599		2,477		1,680		1,071		588		381		10,296
Loss ratio (A/B)		85.21%		85.63%		85.69%		86.28%		86.14%		85.58%		85.91%		88.19%		88.07%		88.46%		87.78%		87.88%		87.86%		87.32%		86.91%		86.45%
Direct-Par
Variable annuity & savings
Expected claim (A) W		7,977		7,266		6,652		6,147		5,686		5,247		4,824		4,384		3,953		3,582		13,568		8,007		4,423		2,224		3,083		63,975
Risk Premium (B)		8,725		8,002		7,323		6,760		6,243		5,752		5,267		4,826		4,426		4,066		15,830		10,440		7,030		4,762		11,261		75,527
Loss ratio (A/B)		91.42%		90.81%		90.83%		90.93%		91.07%		91.23%		91.60%		90.84%		89.32%		88.08%		85.71%		76.70%		62.92%		46.69%		27.38%		84.71%
Total
Expected claim (A) W		1,483,881		1,468,112		1,447,217		1,436,170		1,429,347		1,417,565		1,407,174		1,400,781		1,402,253		1,403,600		7,065,742		7,100,039		6,791,879		6,245,612		26,308,942		30,349,280
Risk Premium (B)		1,585,053		1,571,025		1,539,658		1,524,792		1,515,218		1,509,597		1,507,172		1,516,155		1,525,450		1,533,692		7,828,024		7,915,469		7,769,383		7,316,405		30,629,334		33,875,902
Loss ratio (A/B)		93.62%		93.45%		94.00%		94.19%		94.33%		93.90%		93.37%		92.39%		91.92%		91.52%		90.26%		89.70%		87.42%		85.36%		85.89%		89.59%

(*1) Prepared for remaining coverage of underlying insurance contracts.

(*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Non-Par
Participating life
Expected claim (A) W		11,728		11,909		12,079		12,236		12,374		12,481		12,563		12,619		12,629		12,591		60,612		53,866		46,237		40,605		96,060		236,748
Risk Premium (B)		32,295		33,397		34,598		35,778		36,938		38,039		39,111		40,124		41,027		41,820		216,897		219,831		210,573		187,071		372,699		852,625
Loss ratio (A/B)		36.31%		35.66%		34.91%		34.20%		33.50%		32.81%		32.12%		31.45%		30.78%		30.11%		27.95%		24.50%		21.96%		21.71%		25.77%		27.77%
Non-participating life
Expected claim (A) W		481,738		481,227		483,311		483,429		483,296		484,440		485,622		486,076		486,792		487,400		2,439,243		2,353,694		2,140,987		1,773,932		5,446,566		9,892,855
Risk Premium (B)		553,429		557,185		557,104		555,763		560,146		562,067		566,604		574,630		581,337		589,885		3,048,605		3,152,033		3,129,258		2,889,024		9,718,037		13,360,811
Loss ratio (A/B)		87.05%		86.37%		86.75%		86.98%		86.28%		86.19%		85.71%		84.59%		83.74%		82.63%		80.01%		74.67%		68.42%		61.40%		56.05%		74.04%
Participating health
Expected claim (A) W		2,208		2,083		2,043		1,843		1,746		1,677		1,597		1,508		1,423		1,348		5,485		3,667		2,350		1,510		4,482		23,521
Risk Premium (B)		3,013		2,881		2,867		2,651		2,557		2,495		2,419		2,326		2,237		2,158		9,333		6,933		4,992		3,532		8,108		37,914
Loss ratio (A/B)		73.29%		72.29%		71.25%		69.53%		68.27%		67.20%		66.03%		64.84%		63.61%		62.46%		58.77%		52.89%		47.08%		42.76%		55.28%		62.04%
Non-participating health
Expected claim (A) W		631,453		616,108		599,988		592,367		589,999		590,001		586,123		584,930		590,297		597,004		3,059,846		3,202,230		3,196,124		3,105,639		14,873,727		14,556,485
Risk Premium (B)		652,227		634,482		614,584		599,689		591,661		586,516		579,600		576,028		581,959		580,852		2,945,773		2,992,861		3,063,436		2,952,901		12,889,375		13,989,143
Loss ratio (A/B)		96.81%		97.10%		97.63%		98.78%		99.72%		100.59%		101.13%		101.55%		101.43%		102.78%		103.87%		107.00%		104.33%		105.17%		115.40%		104.06%
Participating annuity & savings
Expected claim (A) W		963		835		721		614		521		441		384		348		322		299		1,539		2,082		3,079		4,450		31,390		16,897
Risk Premium (B)		2,567		2,346		2,137		1,926		1,746		1,586		1,466		1,414		1,392		1,384		7,731		10,375		13,936		17,699		77,819		58,410
Loss ratio (A/B)		37.53%		35.60%		33.73%		31.85%		29.86%		27.79%		26.18%		24.59%		23.15%		21.64%		19.90%		20.06%		22.10%		25.14%		40.34%		28.93%
Non-participating annuity & savings
Expected claim (A) W		138		139		108		60		46		15		14		13		12		12		54		53		59		67		278		694
Risk Premium (B)		291		270		197		100		90		53		51		51		50		48		240		232		223		207		635		1,716
Loss ratio (A/B)		47.46%		51.43%		54.71%		59.60%		50.87%		28.29%		27.28%		26.19%		24.81%		24.06%		22.63%		22.89%		26.29%		32.62%		43.79%		40.43%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Indirect-Par
Non-participating life
Expected claim (A) W		133,459		136,517		137,827		138,106		139,295		138,998		139,584		141,183		140,611		140,429		704,374		689,595		657,398		606,310		2,232,023		3,043,396
Risk Premium (B)		129,015		129,635		130,579		131,034		132,275		133,205		134,789		137,133		138,508		140,416		732,659		774,047		793,446		768,261		2,746,956		3,322,462
Loss ratio (A/B)		103.44%		105.31%		105.55%		105.40%		105.31%		104.35%		103.56%		102.95%		101.52%		100.01%		96.14%		89.09%		82.85%		78.92%		81.25%		91.60%
Variable life
Expected claim (A) W		57,236		56,123		55,291		54,464		54,002		53,584		53,407		53,179		52,880		53,255		273,842		291,303		309,503		315,823		1,279,070		1,350,287
Risk Premium (B)		65,830		65,290		64,717		63,994		63,760		63,882		64,406		65,042		65,765		67,008		354,677		384,462		391,274		350,069		772,704		1,507,775
Loss ratio (A/B)		86.95%		85.96%		85.44%		85.11%		84.70%		83.88%		82.92%		81.76%		80.41%		79.48%		77.21%		75.77%		79.10%		90.22%		165.53%		89.55%
Participating annuity & savings
Expected claim (A) W		432		404		384		363		343		325		306		286		267		252		1,058		721		391		186		359		4,355
Risk Premium (B)		1,067		945		871		793		707		626		558		493		432		384		1,387		880		504		237		387		7,890
Loss ratio (A/B)		40.52%		42.80%		44.08%		45.75%		48.59%		51.96%		54.86%		57.94%		61.78%		65.69%		76.28%		81.91%		77.61%		78.55%		92.87%		55.20%
Non-participating annuity & savings
Expected claim (A) W		5,986		5,618		5,365		5,061		4,813		4,604		4,384		4,128		3,815		3,635		15,490		11,425		8,029		4,743		3,736		64,293
Risk Premium (B)		8,324		7,766		7,306		6,832		6,430		6,081		5,762		5,386		4,964		4,699		19,904		14,346		10,232		6,384		6,107		85,471
Loss ratio (A/B)		71.91%		72.34%		73.43%		74.08%		74.85%		75.71%		76.08%		76.64%		76.85%		77.37%		77.82%		79.64%		78.47%		74.30%		61.18%		75.22%
Asset-linked annuity & savings
Expected claim (A) W		886		841		804		769		727		682		642		601		546		497		1,962		1,231		732		377		234		8,600
Risk Premium (B)		1,106		1,048		1,002		956		898		844		794		741		654		593		2,339		1,456		861		444		271		10,531
Loss ratio (A/B)		80.09%		80.22%		80.27%		80.42%		80.90%		80.82%		80.82%		81.22%		83.43%		83.67%		83.88%		84.53%		84.98%		85.05%		86.34%		81.66%
Direct-Par
Variable annuity & savings
Expected claim (A) W		8,045		7,272		6,557		5,945		5,438		4,988		4,560		4,162		3,755		3,351		12,496		7,352		4,077		2,033		2,416		62,919
Risk Premium (B)		9,324		8,484		7,700		6,991		6,379		5,829		5,306		4,800		4,346		3,944		15,041		9,480		6,044		3,795		8,260		76,773
Loss ratio (A/B)		86.29%		85.72%		85.15%		85.05%		85.25%		85.56%		85.94%		86.70%		86.40%		84.98%		83.08%		77.55%		67.45%		53.56%		29.26%		81.95%
Total
Expected claim (A) W		1,334,272		1,319,076		1,304,478		1,295,257		1,292,600		1,292,236		1,289,186		1,289,033		1,293,349		1,300,073		6,576,001		6,617,219		6,368,966		5,855,675		23,970,341		29,261,050
Risk Premium (B)		1,458,488		1,443,729		1,423,662		1,406,507		1,403,587		1,401,223		1,400,866		1,408,168		1,422,671		1,433,191		7,354,586		7,566,936		7,624,779		7,179,624		26,601,358		33,311,521
Loss ratio (A/B)		91.48%		91.37%		91.63%		92.09%		92.09%		92.22%		92.03%		91.54%		90.91%		90.71%		89.41%		87.45%		83.53%		81.56%		90.11%		87.84%

(*1) Prepared for remaining coverage of underlying insurance contracts.

(*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

Ratio of expected claims to actual claims for the years ended December 31, 2025 and 2024 is as follows:

		2025		2024
Expected loss ratio (A)		93.12%		93.11%
Actual loss ratio (B)		99.39%		96.26%
Ratio of expected claims to actual claims (C=A-B) (%p)		(6.27)%		(3.15)%

(*1) Prepared for the underlying insurance contracts

(*2) Expected loss ratio (A) = expected claims for the year divided by actual risk premiums for the year

(*3) Actual loss ratio (B) = the sum of incurred claims for the year and incurred claims adjustments for the year, which is then divided by actual risk premium

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Non-Par
Participating life
Expected maintenance expense, etc. (A)		W 2,565		2,550		2,091		2,073		2,054		2,035		2,016		1,995		1,972		1,949		9,352		8,681		8,028		7,285		17,093		38,705
Planned maintenance cost (B)		3,021		2,659		2,352		2,088		1,869		1,686		1,536		1,410		1,302		1,213		5,055		3,814		2,823		2,003		2,781		24,416
Ratio (A/B)		84.92%		95.92%		88.88%		99.29%		109.94%		120.75%		131.20%		141.45%		151.43%		160.64%		185.00%		227.61%		284.38%		363.75%		614.68%		158.52%
Non-participating life
Expected maintenance expense, etc. (A)		W 107,357		106,785		90,677		87,629		84,541		80,409		78,019		76,390		75,133		73,816		358,265		343,714		324,008		301,263		1,243,491		1,633,663
Planned maintenance cost (B)		286,195		257,592		239,733		239,453		230,100		223,832		196,990		178,895		173,064		171,681		723,817		567,415		470,063		358,191		862,562		3,149,917
Ratio (A/B)		37.51%		41.45%		37.82%		36.60%		36.74%		35.92%		39.61%		42.70%		43.41%		43.00%		49.50%		60.58%		68.93%		84.11%		144.16%		51.86%
Participating health
Expected maintenance expense, etc. (A)		W 239		233		198		191		186		182		177		173		169		166		781		710		640		562		1,280		3,277
Planned maintenance cost (B)		89		84		74		68		64		60		56		53		50		46		194		143		105		76		125		853
Ratio (A/B)		268.31%		278.40%		269.51%		280.52%		291.91%		303.71%		315.64%		328.99%		342.01%		357.22%		402.13%		495.24%		607.05%		740.74%		1022.52%		384.35%
Non-participating health
Expected maintenance expense, etc. (A)		W 136,029		126,785		114,291		109,154		105,137		101,488		98,108		95,905		94,249		92,655		443,967		405,875		372,022		339,644		1,428,292		1,962,821
Planned maintenance cost (B)		504,766		445,973		398,714		365,976		341,360		321,819		304,410		290,828		279,232		270,295		1,256,777		961,778		764,885		688,935		2,092,653		5,331,756
Ratio (A/B)		26.95%		28.43%		28.67%		29.83%		30.80%		31.54%		32.23%		32.98%		33.75%		34.28%		35.33%		42.20%		48.64%		49.30%		68.25%		36.81%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,127		1,120		821		814		807		799		792		785		778		770		3,731		3,524		3,295		3,009		8,015		15,899
Planned maintenance cost (B)		34		30		27		24		22		21		21		20		20		20		96		91		85		75		160		416
Ratio (A/B)		3323.19%		3774.85%		3087.74%		3353.30%		3597.87%		3767.94%		3820.86%		3868.53%		3893.30%		3905.21%		3880.48%		3852.79%		3885.16%		4003.07%		4994.90%		3824.50%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,684		1,300		437		201		33		7		7		7		6		6		28		24		21		18		44		3,598
Planned maintenance cost (B)		3,092		2,336		1,146		504		76		12		12		11		10		10		42		32		25		18		33		6,971
Ratio (A/B)		54.47%		55.66%		38.10%		39.92%		43.04%		57.50%		58.58%		59.55%		60.47%		61.73%		65.85%		73.52%		84.16%		98.00%		136.29%		51.61%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Indirect-Par
Non-participating life
Expected maintenance expense, etc. (A)		W 24,675		24,154		20,437		19,950		19,508		19,177		18,943		18,628		18,307		17,947		86,073		80,599		74,626		67,634		243,939		374,273
Planned maintenance cost (B)		74,076		66,309		59,547		52,995		47,349		42,912		39,514		36,293		33,062		29,335		122,730		96,262		76,997		60,831		148,282		632,912
Ratio (A/B)		33.31%		36.43%		34.32%		37.65%		41.20%		44.69%		47.94%		51.33%		55.37%		61.18%		70.13%		83.73%		96.92%		111.18%		164.51%		59.14%
Variable life
Expected maintenance expense, etc. (A)		W 13,693		13,313		12,628		12,311		12,052		11,802		11,563		11,353		11,165		10,976		52,262		47,565		41,668		34,918		103,821		210,787
Planned maintenance cost (B)		39,971		35,932		32,012		28,653		25,799		23,238		20,918		19,229		17,891		16,589		68,630		55,300		46,485		36,797		70,953		346,911
Ratio (A/B)		34.26%		37.05%		39.45%		42.97%		46.72%		50.79%		55.28%		59.04%		62.41%		66.16%		76.15%		86.01%		89.64%		94.89%		146.32%		60.76%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 4,121		3,925		2,760		2,647		2,538		2,429		2,327		2,235		2,145		2,060		9,296		7,998		7,091		6,456		25,081		43,994
Planned maintenance cost (B)		2,734		2,311		2,044		1,838		1,660		1,484		1,356		1,249		1,161		1,086		4,495		3,425		2,775		2,368		5,761		22,706
Ratio (A/B)		150.72%		169.87%		135.04%		144.00%		152.91%		163.69%		171.65%		178.92%		184.76%		189.66%		206.82%		233.52%		255.51%		272.63%		435.40%		193.76%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 23,389		21,331		14,610		13,568		12,594		11,675		10,907		10,247		9,712		9,139		39,178		30,983		24,838		20,057		60,950		190,804
Planned maintenance cost (B)		22,545		19,350		17,028		14,975		13,244		11,733		10,494		9,446		8,634		7,616		28,464		18,924		12,756		8,810		18,779		158,304
Ratio (A/B)		103.74%		110.24%		85.80%		90.61%		95.09%		99.50%		103.93%		108.48%		112.48%		120.00%		137.64%		163.72%		194.72%		227.67%		324.57%		120.53%
Asset-linked annuity & savings
Expected maintenance expense, etc. (A)		W 2,126		1,965		1,361		1,268		1,187		1,117		1,041		917		856		805		3,390		2,575		2,104		1,832		7,350		17,519
Planned maintenance cost (B)		2,072		1,859		1,677		1,529		1,394		1,279		1,146		895		803		732		2,768		1,629		961		585		928		15,072
Ratio (A/B)		102.63%		105.67%		81.17%		82.96%		85.13%		87.31%		90.77%		102.52%		106.71%		109.91%		122.50%		158.10%		218.80%		313.11%		791.76%		116.24%
Direct-Par
Variable annuity & savings
Expected maintenance expense, etc. (A)		W 17,662		15,523		13,562		11,964		10,637		9,438		8,374		7,484		6,676		5,945		21,894		14,076		9,960		7,717		26,010		127,057
Planned maintenance cost (B)		12,836		10,644		8,832		7,467		6,205		5,521		4,761		4,158		3,607		3,113		10,963		6,261		3,680		2,219		3,982		72,601
Ratio (A/B)		137.60%		145.84%		153.56%		160.22%		171.44%		170.94%		175.86%		179.98%		185.07%		191.00%		199.70%		224.80%		270.67%		347.72%		653.21%		175.01%
Total

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

Expected maintenance expense, etc. (A)		W 334,668		318,984		273,873		261,770		251,273		240,558		232,274		226,117		221,169		216,232		1,028,215		946,323		868,299		790,395		3,165,366		4,622,399
Planned maintenance cost (B)		951,431		845,078		763,185		715,570		669,140		633,597		581,215		542,488		518,835		501,736		2,224,031		1,715,076		1,381,640		1,160,908		3,206,999		9,762,835
Ratio (A/B)		35.18%		37.75%		35.89%		36.58%		37.55%		37.97%		39.96%		41.68%		42.63%		43.10%		46.23%		55.18%		62.85%		68.08%		98.70%		47.35%

(*1) Prepared for remaining coverage of underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Non-Par
Participating life
Expected maintenance expense, etc. (A)		W 2,593		2,598		2,606		2,182		2,185		2,187		2,188		2,189		2,188		2,185		10,830		10,577		10,276		9,814		26,170		48,164
Planned maintenance cost (B)		3,194		2,834		2,545		2,302		2,093		1,921		1,778		1,662		1,563		1,479		6,479		5,310		4,251		3,230		5,098		30,590
Ratio (A/B)		81.18%		91.67%		102.41%		94.81%		104.39%		113.81%		123.08%		131.72%		139.95%		147.72%		167.17%		199.19%		241.73%		303.87%		513.34%		157.45%
Non-participating life
Expected maintenance expense, etc. (A)		W 99,157		96,733		95,975		82,243		78,920		76,529		73,761		71,871		70,897		69,843		338,515		325,125		310,542		289,371		1,159,671		1,614,589
Planned maintenance cost (B)		271,301		238,751		215,722		201,990		203,765		196,666		198,271		176,980		163,690		159,454		715,798		551,427		439,766		331,316		741,999		3,048,121
Ratio (A/B)		36.55%		40.52%		44.49%		40.72%		38.73%		38.91%		37.20%		40.61%		43.31%		43.80%		47.29%		58.96%		70.62%		87.34%		156.29%		52.97%
Participating health
Expected maintenance expense, etc. (A)		W 265		247		241		207		199		194		189		185		181		177		831		753		677		595		1,388		3,677
Planned maintenance cost (B)		96		86		81		72		67		63		59		56		52		49		205		151		111		80		134		933
Ratio (A/B)		275.61%		288.23%		298.24%		285.49%		296.06%		307.66%		319.93%		332.36%		346.16%		359.69%		404.94%		497.28%		609.87%		744.23%		1036.50%		393.93%
Non-participating health
Expected maintenance expense, etc. (A)		W 121,376		111,917		106,043		97,038		93,782		91,061		88,563		86,451		85,174		83,973		401,743		364,965		333,265		305,561		1,312,992		1,842,037
Planned maintenance cost (B)		399,615		349,687		319,093		296,060		278,516		263,746		252,101		242,282		234,304		226,055		1,058,447		839,913		668,266		621,372		1,957,464		4,642,032
Ratio (A/B)		30.37%		32.00%		33.23%		32.78%		33.67%		34.53%		35.13%		35.68%		36.35%		37.15%		37.96%		43.45%		49.87%		49.18%		67.08%		39.68%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,145		1,142		1,138		846		840		833		826		819		812		804		3,910		3,732		3,534		3,342		9,996		18,043
Planned maintenance cost (B)		35		31		28		25		23		22		21		20		20		20		97		93		86		77		175		445
Ratio (A/B)		3263.18%		3724.31%		4120.05%		3352.51%		3592.39%		3801.60%		3948.35%		3996.30%		4032.35%		4045.47%		4036.45%		4031.54%		4087.66%		4315.82%		5713.03%		4055.11%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,353		1,142		766		219		140		8		8		7		7		7		32		28		25		23		63		3,554
Planned maintenance cost (B)		2,393		2,026		1,319		546		339		13		13		12		11		11		47		38		30		23		47		6,434
Ratio (A/B)		56.55%		56.38%		58.05%		40.18%		41.17%		59.73%		60.46%		61.59%		62.57%		63.42%		67.42%		74.82%		84.70%		97.84%		134.51%		55.23%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years<br><br>after 30		Present value
Indirect-Par
Non-participating life
Expected maintenance expense, etc. (A)		W 25,346		24,541		24,096		20,840		20,395		19,995		19,687		19,462		19,149		18,834		90,199		84,615		78,046		70,328		246,430		407,740
Planned maintenance cost (B)		80,239		71,207		64,144		57,983		51,739		46,606		42,400		39,049		35,912		32,652		130,440		101,201		82,707		64,577		153,649		701,416
Ratio (A/B)		31.59%		34.46%		37.57%		35.94%		39.42%		42.90%		46.43%		49.84%		53.32%		57.68%		69.15%		83.61%		94.36%		108.91%		160.38%		58.13%
Variable life
Expected maintenance expense, etc. (A)		W 13,875		13,382		13,034		12,378		12,082		11,788		11,562		11,313		11,056		10,818		51,014		45,874		39,943		33,625		95,028		217,429
Planned maintenance cost (B)		44,300		39,482		35,469		31,577		28,246		25,431		22,924		20,587		18,911		17,587		71,868		56,508		47,752		38,394		72,450		384,945
Ratio (A/B)		31.32%		33.89%		36.75%		39.20%		42.77%		46.35%		50.43%		54.95%		58.46%		61.51%		70.98%		81.18%		83.65%		87.58%		131.16%		56.48%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 4,334		4,150		3,974		2,861		2,755		2,656		2,563		2,468		2,379		2,291		10,423		9,069		8,087		7,375		30,404		51,652
Planned maintenance cost (B)		2,534		2,236		1,991		1,794		1,641		1,507		1,385		1,290		1,209		1,143		4,834		3,716		2,985		2,521		6,299		23,869
Ratio (A/B)		171.04%		185.66%		199.64%		159.45%		167.94%		176.26%		185.05%		191.38%		196.70%		200.36%		215.61%		244.07%		270.91%		292.55%		482.69%		216.40%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 25,335		22,122		20,079		13,946		12,871		11,873		11,017		10,275		9,611		9,037		38,317		29,296		22,984		18,327		55,768		201,300
Planned maintenance cost (B)		25,101		19,434		16,474		14,370		12,462		10,907		9,659		8,593		7,666		6,931		26,339		16,897		11,261		7,652		14,682		155,530
Ratio (A/B)		100.93%		113.83%		121.88%		97.05%		103.28%		108.86%		114.06%		119.57%		125.37%		130.40%		145.48%		173.38%		204.10%		239.51%		379.84%		129.43%
Asset-linked annuity & savings
Expected maintenance expense, etc. (A)		W 2,256		2,087		1,940		1,374		1,279		1,194		1,121		1,039		906		839		3,464		2,555		2,047		1,770		7,074		19,240
Planned maintenance cost (B)		2,153		1,934		1,747		1,575		1,428		1,303		1,191		1,056		797		703		2,599		1,458		829		505		899		15,573
Ratio (A/B)		104.83%		107.93%		111.07%		87.26%		89.56%		91.57%		94.06%		98.41%		113.70%		119.41%		133.25%		175.28%		246.87%		350.37%		786.83%		123.54%
Direct-Par
Variable annuity & savings
Expected maintenance expense, etc. (A)		W 18,234		16,000		13,939		12,099		10,637		9,346		8,231		7,205		6,339		5,565		19,901		12,206		8,447		6,508		21,896		126,478
Planned maintenance cost (B)		12,141		10,221		8,362		6,955		5,901		4,846		4,327		3,692		3,193		2,734		9,385		5,153		2,974		1,776		3,217		67,648
Ratio (A/B)		150.19%		156.54%		166.70%		173.96%		180.28%		192.85%		190.24%		195.18%		198.51%		203.55%		212.04%		236.89%		284.09%		366.42%		680.72%		186.96%
Total
Expected maintenance expense, etc. (A)		W 315,269		296,061		283,831		246,233		236,085		227,664		219,716		213,284		208,699		204,373		969,179		888,795		817,873		746,639		2,966,880		4,553,903

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

Planned maintenance cost (B)		843,102		737,929		666,975		615,249		586,220		553,031		534,129		495,279		467,328		448,818		2,026,538		1,581,865		1,261,018		1,071,523		2,956,113		9,077,536
Ratio (A/B)		37.39%		40.12%		42.56%		40.02%		40.27%		41.17%		41.14%		43.06%		44.66%		45.54%		47.82%		56.19%		64.86%		69.68%		100.36%		50.17%

(*1) Prepared for remaining coverage of underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied:

i) Participating insurance contracts

		2025
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	5,011,424		86,389		220,887		5,318,700
Insurance revenue:
Contracts under the modified retrospective approach		(92)		-		-		(92)
Contracts under the fair value approach		(51,571)		-		-		(51,571)
Contracts after transition		(250)		-		-		(250)
		(51,913)		-		-		(51,913)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		33,715		33,715
Adjustments to liabilities for incurred claims		-		-		(651)		(651)
Losses and reversals of losses on onerous contracts		-		(19,629)		-		(19,629)
Amortization of insurance acquisition cash flows		170		-		-		170
Experience adjustments to insurance acquisition cash flows that are not related to future service		182		-		-		182
Others		-		(359)		-		(359)
		352		(19,988)		33,064		13,428
Investment components and premium refunds		(194,236)		-		194,236		-
Insurance finance income or expenses recognized in:
Profit or loss		158,904		2,507		12,080		173,491
Other comprehensive income		(172,593)		(2,103)		(49)		(174,745)
		(13,689)		404		12,031		(1,254)
Cash flows:
Premiums received		52,142		-		-		52,142
Insurance acquisition cash flows		(1,266)		-		-		(1,266)
Claims and other insurance service expenses paid		(211)		-		(31,587)		(31,798)
Investment components received (paid) and premium refunds		-		-		(208,048)		(208,048)
		50,665		-		(239,635)		(188,970)
Other changes		(58)		(4)		-		(62)
Closing balance:
Insurance contract liabilities	W	4,802,545		66,801		220,583		5,089,929

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

i) Participating insurance contracts (continued)

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	4,662,767		20,454		226,380		4,909,601
Insurance revenue:
Contracts under the modified retrospective approach		(91)		-		-		(91)
Contracts under the fair value approach		(48,424)		-		-		(48,424)
Contracts after transition		755		-		-		755
		(47,760)		-		-		(47,760)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		31,736		31,736
Adjustments to liabilities for incurred claims		-		-		(1,285)		(1,285)
Losses and reversals of losses on onerous contracts		-		64,528		-		64,528
Amortization of insurance acquisition cash flows		120		-		-		120
Experience adjustments to insurance acquisition cash flows that are not related to future service		17		-		-		17
Others		2		(50)		-		(48)
		139		64,478		30,451		95,068
Investment components and premium refunds		(184,709)		-		184,709		-
Insurance finance income or expenses recognized in:
Profit or loss		151,824		549		11,108		163,481
Other comprehensive income		372,888		912		196		373,996
		524,712		1,461		11,304		537,477
Cash flows:
Premiums received		57,374		-		-		57,374
Insurance acquisition cash flows		(925)		-		-		(925)
Claims and other insurance service expenses paid		(178)		-		(29,542)		(29,720)
Investment components received (paid) and premium refunds		-		-		(202,415)		(202,415)
		56,271		-		(231,957)		(175,686)
Other changes		4		(4)		-		-
Closing balance:
Insurance contract liabilities	W	5,011,424		86,389		220,887		5,318,700

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts

		2025
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	36,230,539		366,986		1,532,152		38,129,677
Insurance revenue:
Contracts under the modified retrospective approach		(380,467)		-		-		(380,467)
Contracts under the fair value approach		(1,459,586)		-		-		(1,459,586)
Contracts after transition		(1,030,287)		-		-		(1,030,287)
		(2,870,340)		-		-		(2,870,340)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,731,614		1,731,614
Adjustments to liabilities for incurred claims		-		-		(22,591)		(22,591)
Losses and reversals of losses on onerous contracts		-		75,173		-		75,173
Amortization of insurance acquisition cash flows		392,104		-		-		392,104
Experience adjustments to insurance acquisition cash flows that are not related to future service		(12,194)		-		-		(12,194)
Others		94		(14,619)		-		(14,525)
		380,004		60,554		1,709,023		2,149,581
Investment components and premium refunds		(3,497,168)		-		3,497,168		-
Insurance finance income or expenses recognized in:
Profit or loss		1,290,850		1,995		48,205		1,341,050
Other comprehensive income		(1,632,541)		(831)		563		(1,632,809)
		(341,691)		1,164		48,768		(291,759)
Cash flows:
Premiums received		7,185,885		-		-		7,185,885
Insurance acquisition cash flows		(2,027,635)		-		-		(2,027,635)
Claims and other insurance service expenses paid		(95)		-		(1,647,704)		(1,647,799)
Investment components received (paid) and premium refunds		-		-		(3,620,450)		(3,620,450)
		5,158,155		-		(5,268,154)		(109,999)
Other changes		1		(1)		-		-
Closing balance:
Insurance contract liabilities	W	35,059,500		428,703		1,518,957		37,007,160

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts (continued)

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	33,481,728		370,349		1,541,678		35,393,755
Insurance revenue:
Contracts under the modified retrospective approach		(442,542)		-		-		(442,542)
Contracts under the fair value approach		(1,490,048)		-		-		(1,490,048)
Contracts after transition		(708,722)		-		-		(708,722)
		(2,641,312)		-		-		(2,641,312)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,525,276		1,525,276
Adjustments to liabilities for incurred claims		-		-		27,232		27,232
Losses and reversals of losses on onerous contracts		-		7,313		-		7,313
Amortization of insurance acquisition cash flows		329,281		-		-		329,281
Experience adjustments to insurance acquisition cash flows that are not related to future service		(31,740)		-		-		(31,740)
Others		148		(16,487)		-		(16,339)
		297,689		(9,174)		1,552,508		1,841,023
Investment components and premium refunds		(3,665,607)		-		3,665,607		-
Insurance finance income or expenses recognized in:
Profit or loss		1,314,876		2,413		52,020		1,369,309
Other comprehensive income		2,766,489		3,398		2,964		2,772,851
		4,081,365		5,811		54,984		4,142,160
Cash flows:
Premiums received		6,232,497		-		-		6,232,497
Insurance acquisition cash flows		(1,555,691)		-		-		(1,555,691)
Claims and other insurance service expenses paid		(130)		-		(1,467,210)		(1,467,340)
Investment components received (paid) and premium refunds		-		-		(3,815,415)		(3,815,415)
		4,676,676		-		(5,282,625)		(605,949)
Closing balance:
Insurance contract liabilities	W	36,230,539		366,986		1,532,152		38,129,677

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts

		2025
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	4,862,460		46,566		61,828		4,970,854
Insurance revenue:
Contracts under the modified retrospective approach		(22,103)		-		-		(22,103)
Contracts under the fair value approach		(113,995)		-		-		(113,995)
Contracts after transition		(12,316)		-		-		(12,316)
		(148,414)		-		-		(148,414)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		96,201		96,201
Adjustments to liabilities for incurred claims		-		-		(4,570)		(4,570)
Losses and reversals of losses on onerous contracts		-		6,286		-		6,286
Amortization of insurance acquisition cash flows		18,318		-		-		18,318
Experience adjustments to insurance acquisition cash flows that are not related to future service		1,529		-		-		1,529
Others		-		(148)		-		(148)
		19,847		6,138		91,631		117,616
Investment components and premium refunds		(865,625)		-		865,625		-
Insurance finance income or expenses recognized in:
Profit or loss		1,268,980		898		1,711		1,271,589
Other comprehensive income		39,072		13		(1)		39,084
		1,308,052		911		1,710		1,310,673
Cash flows:
Premiums received		540,714		-		-		540,714
Insurance acquisition cash flows		(19,172)		-		-		(19,172)
Claims and other insurance service expenses paid		-		-		(93,228)		(93,228)
Investment components received (paid) and premium refunds		-		-		(864,661)		(864,661)
		521,542		-		(957,889)		(436,347)
Closing balance:
Insurance contract liabilities	W	5,697,862		53,615		62,905		5,814,382

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts (continued)

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	5,122,793		42,765		59,840		5,225,398
Insurance revenue:
Contracts under the modified retrospective approach		(26,917)		-		-		(26,917)
Contracts under the fair value approach		(120,696)		-		-		(120,696)
Contracts after transition		(10,175)		-		-		(10,175)
		(157,788)		-		-		(157,788)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		106,897		106,897
Adjustments to liabilities for incurred claims		-		-		1,866		1,866
Losses and reversals of losses on onerous contracts		-		3,203		-		3,203
Amortization of insurance acquisition cash flows		19,328		-		-		19,328
Experience adjustments to insurance acquisition cash flows that are not related to future service		357		-		-		357
Others		45		(145)		-		(100)
		19,730		3,058		108,763		131,551
Investment components and premium refunds		(919,411)		-		919,411		-
Insurance finance income or expenses recognized in:
Profit or loss		171,443		399		798		172,640
Other comprehensive income		50,220		345		144		50,709
		221,663		744		942		223,349
Cash flows:
Premiums received		591,193		-		-		591,193
Insurance acquisition cash flows		(15,721)		-		-		(15,721)
Claims and other insurance service expenses paid		-		-		(103,796)		(103,796)
Investment components received (paid) and premium refunds		-		-		(923,332)		(923,332)
		575,472		-		(1,027,128)		(451,656)
Other changes		1		(1)		-		-
Closing balance:
Insurance contract liabilities	W	4,862,460		46,566		61,828		4,970,854

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach:

		2025
		Liability for remaining coverage		Liability for incurred claims
								Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Total
Opening balance:
Insurance contract liabilities	W	171		237		11		419
Insurance revenue		(1,199)		-		-		(1,199)
Insurance service expenses:
Incurred claims and other insurance service expenses		537		1,009		6		1,552
Adjustments to liabilities for incurred claims		-		(96)		(9)		(105)
Losses and reversals of losses on onerous contracts		742		-		-		742
		1,279		913		(3)		2,189
Investment components and premium refunds		(223)		223		-		-
Insurance finance income or expenses recognized in:
Profit or loss		-		8		-		8
Other comprehensive income		-		(1)		-		(1)
		-		7		-		7
Cash flows:
Premiums received		1,385		-		-		1,385
Insurance acquisition cash flows		(537)		-		-		(537)
Claims and other insurance service expenses paid		-		(892)		-		(892)
Investment components received (paid) and premium refunds		-		(220)		-		(220)
		848		(1,112)		-		(264)
Closing balance:
Insurance contract liabilities	W	876		268		8		1,152

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach: (continued)

		2024
		Liability for remaining coverage		Liability for incurred claims
								Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Total
Opening balance:
Insurance contract liabilities	W	98		127		7		232
Insurance revenue		(445)		-		-		(445)
Insurance service expenses:
Incurred claims and other insurance service expenses		44		1,212		9		1,265
Adjustments to liabilities for incurred claims		-		52		(5)		47
Losses and reversals of losses on onerous contracts		54		-		-		54
		98		1,264		4		1,366
Investment components and premium refunds		(2)		2		-		-
Insurance finance income or expenses recognized in:
Profit or loss		-		6		-		6
Other comprehensive income		-		1		-		1
		-		7		-		7
Cash flows:
Premiums received		467		-		-		467
Insurance acquisition cash flows		(45)		-		-		(45)
Claims and other insurance service expenses paid		-		(1,161)		-		(1,161)
Investment components received (paid) and premium refunds		-		(2)		-		(2)
		422		(1,163)		-		(741)
Closing balance:
Insurance contract liabilities	W	171		237		11		419

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied:

i) Participating insurance contracts

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	5,179,009		21,157		134		117,952		448		118,534		5,318,700
Changes that relate to future service:
Changes in estimates that adjust the CSM		(20,115)		(479)		90		20,537		(33)		20,594		-
Changes in estimates that do not adjust the CSM		(22,873)		(928)		-		-		-		-		(23,801)
Contracts initially recognized in the period		4,140		30		-		-		1		1		4,171
		(38,848)		(1,377)		90		20,537		(32)		20,595		(19,630)
Changes that relate to current service:
CSM recognized for services provided		-		-		(11)		(12,072)		(18)		(12,101)		(12,101)
Change in risk adjustment		-		(719)		-		-		-		-		(719)
Experience adjustments		(5,385)		-		-		-		-		-		(5,385)
		(5,385)		(719)		(11)		(12,072)		(18)		(12,101)		(18,205)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(514)		(138)		-		-		-		-		(652)
Insurance finance income or expenses recognized in:
Profit or loss		168,947		706		4		3,816		18		3,838		173,491
Other comprehensive income		(174,355)		(390)		-		-		-		-		(174,745)
		(5,408)		316		4		3,816		18		3,838		(1,254)
Cash flows:
Premiums received		52,142		-		-		-		-		-		52,142
Insurance acquisition cash flows		(1,266)		-		-		-		-		-		(1,266)
Claims and other insurance service expenses paid		(31,798)		-		-		-		-		-		(31,798)
Investment components received (paid) and premium refunds		(208,048)		-		-		-		-		-		(208,048)
		(188,970)		-		-		-		-		-		(188,970)
Other changes		(62)		-		-		-		-		-		(62)
Closing balance:
Insurance contract liabilities	W	4,939,822		19,239		217		130,233		416		130,866		5,089,927

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

i) Participating insurance contracts (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	4,801,491		19,796		-		88,060		254		88,314		4,909,601
Changes that relate to future service:
Changes in estimates that adjust the CSM		(36,247)		(310)		136		37,086		(665)		36,557		-
Changes in estimates that do not adjust the CSM		63,717		153		-		-		-		-		63,870
Contracts initially recognized in the period		(548)		16		-		-		1,190		1,190		658
		26,922		(141)		136		37,086		525		37,747		64,528
Changes that relate to current service:
CSM recognized for services provided		-		-		(3)		(10,506)		(358)		(10,867)		(10,867)
Change in risk adjustment		-		(578)		-		-		-		-		(578)
Experience adjustments		(4,489)		-		-		-		-		-		(4,489)
		(4,489)		(578)		(3)		(10,506)		(358)		(10,867)		(15,934)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(1,030)		(256)								-		(1,286)
Insurance finance income or expenses recognized in:
Profit or loss		159,428		713		1		3,312		27		3,340		163,481
Other comprehensive income		372,373		1,623		-		-		-		-		373,996
		531,801		2,336		1		3,312		27		3,340		537,477
Cash flows:
Premiums received		57,374		-		-		-		-		-		57,374
Insurance acquisition cash flows		(925)		-		-		-		-		-		(925)
Claims and other insurance service expenses paid		(29,720)		-		-		-		-		-		(29,720)
Investment components received (paid) and premium refunds		(202,415)		-		-		-		-		-		(202,415)
		(175,686)		-		-		-		-		-		(175,686)
Closing balance:
Insurance contract liabilities	W	5,179,009		21,157		134		117,952		448		118,534		5,318,700

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	29,911,930		1,248,075		1,586,732		3,363,834		2,019,106		6,969,672		38,129,677
Changes that relate to future service:
Changes in estimates that adjust the CSM		986,146		(18,155)		(117,466)		(218,544)		(631,981)		(967,991)		-
Changes in estimates that do not adjust the CSM		49,807		404		-		-		-		-		50,211
Contracts initially recognized in the period		(1,839,501)		222,677		-		-		1,641,786		1,641,786		24,962
		(803,548)		204,926		(117,466)		(218,544)		1,009,805		673,795		75,173
Changes that relate to current service:
CSM recognized for services provided		-		-		(120,405)		(283,855)		(298,804)		(703,064)		(703,064)
Change in risk adjustment		-		(162,621)		-		-		-		-		(162,621)
Experience adjustments		92,346		-		-		-		-		-		92,346
		92,346		(162,621)		(120,405)		(283,855)		(298,804)		(703,064)		(773,339)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(12,447)		(10,144)		-		-		-		-		(22,591)
Insurance finance income or expenses recognized in:
Profit or loss		1,034,946		46,857		48,768		103,395		107,084		259,247		1,341,050
Other comprehensive income		(1,605,723)		(27,086)		-		-		-		-		(1,632,809)
		(570,777)		19,771		48,768		103,395		107,084		259,247		(291,759)
Cash flows:
Premiums received		7,185,885		-		-		-		-		-		7,185,885
Insurance acquisition cash flows		(2,027,635)		-		-		-		-		-		(2,027,635)
Claims and other insurance service expenses paid		(1,647,799)		-		-		-		-		-		(1,647,799)
Investment components received (paid) and premium refunds		(3,620,450)		-		-		-		-		-		(3,620,450)
		(109,999)		-		-		-		-		-		(109,999)
Closing balance:
Insurance contract liabilities	W	28,507,505		1,300,007		1,397,629		2,964,830		2,837,191		7,199,650		37,007,162

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

ii) Non-participating insurance contracts (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	27,615,210		1,048,154		1,836,357		3,609,317		1,284,717		6,730,391		35,393,755
Changes that relate to future service:
Changes in estimates that adjust the CSM		483,990		90,007		(153,114)		(53,831)		(367,052)		(573,997)		-
Changes in estimates that do not adjust the CSM		(16,132)		(675)		-		-		-		-		(16,807)
Contracts initially recognized in the period		(1,391,522)		155,953		-		-		1,259,688		1,259,688		24,119
		(923,664)		245,285		(153,114)		(53,831)		892,636		685,691		7,312
Changes that relate to current service:
CSM recognized for services provided		-		-		(152,482)		(301,035)		(239,556)		(693,073)		(693,073)
Change in risk adjustment		-		(110,733)		-		-		-		-		(110,733)
Experience adjustments		(31,028)		-		-		-		-		-		(31,028)
		(31,028)		(110,733)		(152,482)		(301,035)		(239,556)		(693,073)		(834,834)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		41,891		(14,659)		-		-		-		-		27,232
Insurance finance income or expenses recognized in:
Profit or loss		1,083,426		39,221		55,971		109,383		81,309		246,663		1,369,310
Other comprehensive income		2,732,044		40,807		-		-		-		-		2,772,851
		3,815,470		80,028		55,971		109,383		81,309		246,663		4,142,161
Cash flows:
Premiums received		6,232,497		-		-		-		-		-		6,232,497
Insurance acquisition cash flows		(1,555,691)		-		-		-		-		-		(1,555,691)
Claims and other insurance service expenses paid		(1,467,340)		-		-		-		-		-		(1,467,340)
Investment components received (paid) and premium refunds		(3,815,415)		-		-		-		-		-		(3,815,415)
		(605,949)		-		-		-		-		-		(605,949)
Closing balance:
Insurance contract liabilities	W	29,911,930		1,248,075		1,586,732		3,363,834		2,019,106		6,969,672		38,129,677

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	4,758,088		76,857		48,135		65,638		22,136		135,909		4,970,854
Changes that relate to future service:
Changes in estimates that adjust the CSM		(105,882)		5,500		(1,954)		101,442		894		100,382		-
Changes in estimates that do not adjust the CSM		6,958		(778)		-		-		-		-		6,180
Contracts initially recognized in the period		(5,026)		922		-		-		4,211		4,211		107
		(103,950)		5,644		(1,954)		101,442		5,105		104,593		6,287
Changes that relate to current service:
CSM recognized for services provided		-		-		(4,379)		(12,925)		(2,760)		(20,064)		(20,064)
Change in risk adjustment		-		(9,219)		-		-		-		-		(9,219)
Experience adjustments		(3,233)		-		-		-		-		-		(3,233)
		(3,233)		(9,219)		(4,379)		(12,925)		(2,760)		(20,064)		(32,516)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		(3,735)		(834)		-		-		-		-		(4,569)
Insurance finance income or expenses recognized in:
Profit or loss		1,260,720		8,089		1,178		1,323		279		2,780		1,271,589
Other comprehensive income		41,282		(2,198)		-		-		-		-		39,084
		1,302,002		5,891		1,178		1,323		279		2,780		1,310,673
Cash flows:
Premiums received		540,714		-		-		-		-		-		540,714
Insurance acquisition cash flows		(19,172)		-		-		-		-		-		(19,172)
Claims and other insurance service expenses paid		(93,228)		-		-		-		-		-		(93,228)
Investment components received (paid) and premium refunds		(864,661)		-		-		-		-		-		(864,661)
		(436,347)		-		-		-		-		-		(436,347)
Closing balance:
Insurance contract liabilities	W	5,512,825		78,339		42,980		155,478		24,760		223,218		5,814,382

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

iii) Variable insurance contracts (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)
								Insurance contracts under modified retrospective approach		Insurance contracts under fair value approach		Insurance contracts after transition		Subtotal		Total
Opening balance:
Insurance contract liabilities	W	4,791,795		83,584		70,136		255,953		23,930		350,019		5,225,398
Changes that relate to future service:
Changes in estimates that adjust the CSM		193,392		1,639		(17,689)		(174,128)		(3,215)		(195,032)		(1)
Changes in estimates that do not adjust the CSM		3,203		(15)		-		-		-		-		3,188
Contracts initially recognized in the period		(4,412)		622		-		-		3,805		3,805		15
		192,183		2,246		(17,689)		(174,128)		590		(191,227)		3,202
Changes that relate to current service:
CSM recognized for services provided		-		-		(5,913)		(20,029)		(2,770)		(28,712)		(28,712)
Change in risk adjustment		-		(7,828)		-		-		-		-		(7,828)
Experience adjustments		5,235		-		-		-		-		-		5,235
		5,235		(7,828)		(5,913)		(20,029)		(2,770)		(28,712)		(31,305)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		3,105		(1,239)		-		-		-		-		1,866
Insurance finance income or expenses recognized in:
Profit or loss		165,146		1,665		1,601		3,842		386		5,829		172,640
Other comprehensive income		52,280		(1,571)		-		-		-		-		50,709
		217,426		94		1,601		3,842		386		5,829		223,349
Cash flows:
Premiums received		591,193		-		-		-		-		-		591,193
Insurance acquisition cash flows		(15,721)		-		-		-		-		-		(15,721)
Claims and other insurance service expenses paid		(103,796)		-		-		-		-		-		(103,796)
Investment components received (paid) and premium refunds		(923,332)		-		-		-		-		-		(923,332)
		(451,656)		-		-		-		-		-		(451,656)
Closing balance:
Insurance contract liabilities	W	4,758,088		76,857		48,135		65,638		22,136		135,909		4,970,854

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(i) Changes in insurance contract liabilities resulted from changes in assumptions for changes related to future service, quantity changes and differences between expected and actual investment component that become payable:

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
Changes that relate to future service
New contracts	W	(1,840,387)		223,629		1,645,998
Contracts other than new contracts
Effect of changes in assumptions
Lapse rates (*)		494,068		-		(472,651)
Risk rates		377,457		-		(380,902)
Expense ratio		(150,236)		-		157,884
Other assumption		(123,488)		-		119,033
		597,801		-		(576,636)
Quantity changes and differences between expected and actual investment component		296,240		(14,436)		(302,970)
Loss component		-		-		32,591
		894,041		(14,436)		(847,015)
	W	(946,346)		209,193		798,983

(*) Included the effect of assumption changes in renewal rate.

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
Changes that relate to future service
New contracts	W	(1,396,481)		156,592		1,264,682
Contracts other than new contracts
Effect of changes in assumptions
Lapse rates (*)		282,107		-		(408,712)
Risk rates		(468,866)		-		455,092
Expense ratio		(245,474)		-		258,604
Other assumption		219,456		-		(217,764)
		(212,777)		-		87,220
Quantity changes and differences between expected and actual investment component		904,700		90,800		(869,943)
Loss component		-		-		50,251
		691,923		90,800		(732,472)
	W	(704,558)		247,392		532,210

(*) Included the effect of assumption changes in renewal rate.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(j) An analysis of insurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Contracts other than those to which the premium allocation approach has been applied:

		2025
		Estimates of present value of future cash outflows				Estimates of present value of future cash inflows		Risk adjustment for non-financial risk		Contractual service margin		Total
		Other than insurance acquisition cash flows		Insurance acquisition cash flows
Insurance contract initially recognized
Other than onerous group of contracts	W	7,191,800		2,052,884		(11,106,197)		215,515		1,645,998		-
Onerous group of contracts		729,976		94,906		(803,757)		8,115		-		29,240
	W	7,921,776		2,147,790		(11,909,954)		223,630		1,645,998		29,240
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Estimates of present value of future cash outflows				Estimates of present value of future cash inflows		Risk adjustment for non-financial risk		Contractual service margin		Total
		Other than insurance acquisition cash flows		Insurance acquisition cash flows
Insurance contract initially recognized
Other than onerous group of contracts	W	5,647,687		1,721,959		(8,781,997)		147,669		1,264,682		-
Onerous group of contracts		730,338		110,425		(824,893)		8,923		-		24,793
	W	6,378,025		1,832,384		(9,606,890)		156,592		1,264,682		24,793

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied:

		2025
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Non-Par
Participating life W		2,159		2,102		2,047		1,993		1,939		1,886		1,833		1,780		1,726		1,671		7,536		6,203		4,909		3,670		5,332		46,786
Non-participating life		138,518		116,405		105,133		95,417		76,878		64,343		59,939		57,763		55,104		53,144		254,224		239,138		222,475		200,738		740,557		2,479,776
Participating health		316		303		270		252		237		222		207		193		180		167		664		442		299		204		334		4,290
Non-participating health		158,141		139,399		125,423		115,060		106,710		99,425		93,104		88,515		85,071		81,713		374,626		327,428		278,419		233,950		788,124		3,095,108
Participating annuity & savings		2		2		2		2		2		2		2		2		2		2		13		14		13		11		15		86
Non-participating annuity & savings		1		1		1		-		-		-		-		-		-		-		-		-		-		-		-		3
Indirect-Par
Non-participating life		23,889		21,543		19,984		18,713		17,753		17,123		16,651		16,253		15,891		15,533		72,685		63,642		54,208		44,341		113,476		531,685
Variable life		4,962		4,463		4,067		3,745		3,476		3,263		3,089		2,948		2,818		2,701		12,043		10,031		8,536		7,068		16,808		90,018
Participating annuity & savings		6,455		6,101		5,776		5,470		5,196		4,914		4,611		4,309		3,990		3,653		13,780		7,889		4,052		1,908		1,599		79,703
Non-participating annuity & savings		79,885		72,322		66,478		61,576		56,940		52,137		47,682		43,910		40,959		38,264		153,778		102,795		65,250		37,385		41,763		961,124
Asset-linked annuity & savings		13,122		12,193		10,812		9,109		8,281		7,697		7,095		6,226		5,697		5,213		19,313		11,359		6,641		3,844		5,354		131,956
Direct-Par
Variable annuity & savings		14,073		12,571		11,175		9,984		8,979		8,092		7,274		6,507		5,810		5,170		18,472		10,272		5,615		3,150		6,057		133,201
Subtotal
Participating		8,932		8,508		8,095		7,717		7,374		7,024		6,653		6,284		5,898		5,493		21,993		14,548		9,273		5,793		7,280		130,865
Non-participating		413,556		361,863		327,831		299,875		266,562		240,725		224,471		212,667		202,722		193,867		874,626		744,362		626,993		520,258		1,689,274		7,199,652
Variable		19,035		17,034		15,242		13,729		12,455		11,355		10,363		9,455		8,628		7,871		30,515		20,303		14,151		10,218		22,865		223,219
W		441,523		387,405		351,168		321,321		286,391		259,104		241,487		228,406		217,248		207,231		927,134		779,213		650,417		536,269		1,719,419		7,553,736

(*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

		2024
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10		Years<br><br>11 to 15		Years<br><br>16 to 20		Years<br><br>21 to 25		Years<br><br>26 to 30		Years after 30		Present value
Non-Par
Participating life W		1,394		1,371		1,353		1,335		1,319		1,302		1,284		1,267		1,248		1,228		5,797		5,142		4,385		3,513		5,881		37,819
Non-participating life		146,158		113,142		98,478		92,353		85,653		71,086		64,984		61,958		59,767		57,531		266,426		238,326		213,323		188,762		637,458		2,395,405
Participating health		219		201		192		172		160		151		141		132		123		115		458		305		205		138		227		2,939
Non-participating health		149,426		128,389		116,171		107,018		99,772		93,738		88,315		84,043		81,035		78,467		360,018		315,262		271,990		230,536		800,299		3,004,479
Participating annuity & savings		(4)		(4)		(4)		(4)		(4)		(4)		(4)		(5)		(5)		1		24		26		25		22		30		90
Indirect-Par
Non-participating life		28,751		23,816		21,373		19,647		18,378		17,490		16,867		16,375		15,966		15,614		73,223		64,547		55,322		45,703		118,706		551,778
Variable life		5,245		4,498		4,043		3,691		3,398		3,148		2,948		2,784		2,652		2,533		11,236		9,346		8,061		6,797		17,141		87,521
Participating annuity & savings		5,432		5,261		5,061		4,840		4,637		4,445		4,266		4,049		3,804		3,538		13,999		8,740		4,881		2,464		2,267		77,684
Non-participating annuity & savings		82,225		72,433		65,241		59,370		54,421		49,591		45,313		41,475		37,876		34,859		138,740		90,235		55,446		31,646		32,978		891,849
Asset-linked annuity & savings		13,007		12,105		11,376		9,987		8,239		7,438		6,868		6,286		5,381		4,829		17,784		9,908		5,544		3,131		4,279		126,162
Direct-Par
Variable annuity & savings		5,349		4,807		4,274		3,801		3,411		3,060		2,777		2,472		2,119		1,819		6,143		3,322		1,848		1,083		2,100		48,385
Subtotal
Participating		7,041		6,829		6,602		6,343		6,112		5,894		5,687		5,443		5,170		4,882		20,278		14,213		9,496		6,137		8,405		118,532
Non-participating		419,567		349,885		312,639		288,375		266,463		239,343		222,347		210,137		200,025		191,300		856,191		718,278		601,625		499,778		1,593,720		6,969,673
Variable		10,594		9,305		8,317		7,492		6,809		6,208		5,725		5,256		4,771		4,352		17,379		12,668		9,909		7,880		19,241		135,906
W		437,202		366,019		327,558		302,210		279,384		251,445		233,759		220,836		209,966		200,534		893,848		745,159		621,030		513,795		1,621,366		7,224,111

(*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(l) As of December 31, 2025 and 2024, the composition and fair value amounts of the underlying items of insurance contracts with direct participation features are as follows:

Underlying items (*)		2025		2024
Cash and due from banks at amortized cost	W	371,582		294,963
Financial assets at fair value through profit or loss		4,004,935		3,561,126
Loans at amortized cost		40,245		32,489
Derivatives		429		(150)
Others		52,778		69,608
	W	4,469,969		3,958,036

(*) The carrying amounts of financial assets (liabilities) for variable insurance were W6,338,236 million and W5,498,129 million as of December 31, 2025 and 2024, respectively.

26. Reinsurance contract assets (liabilities)

(a) The carrying amounts of reinsurance contract assets (liabilities) as of December 31, 2025 and 2024 are as follows:

		2025
		Life		Health		Combined		Total
Reinsurance contract assets	W	-		-		494,226		494,226
Reinsurance contract liabilities		(24,641)		(31,737)		-		(56,378)
Net reinsurance contract assets (liabilities)	W	(24,641)		(31,737)		494,226		437,848
		2024
		Life		Health		Combined		Total
Reinsurance contract assets	W	-		-		107,668		107,668
Reinsurance contract liabilities		(26,214)		(71,844)		-		(98,058)
Net reinsurance contract assets (liabilities)	W	(26,214)		(71,844)		107,668		9,610

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		Remaining coverage component				Incurred claims component		Total
		Excluding<br><br>loss recovery<br><br>component		Loss recovery<br><br>component
Opening balance:
Reinsurance contract assets	W	47,337		3,806		56,525		107,668
Reinsurance contract liabilities		(153,214)		17,246		37,910		(98,058)
Net assets (liabilities)		(105,877)		21,052		94,435		9,610
Reinsurance revenue:
Recoveries on incurred claims and other incurred reinsurance service expenses		-		-		184,667		184,667
Changes in expected recoveries on past claims		-		-		(34,424)		(34,424)
Recognition and reversal of loss recovery component		-		15,428		-		15,428
Others		60		(1,378)		-		(1,318)
		60		14,050		150,243		164,353
Reinsurance service expenses:
Reinsurance contracts under the fair value approach		(68,561)		-		-		(68,561)
Reinsurance contracts after transition		(81,714)		-		-		(81,714)
		(150,275)		-		-		(150,275)
Investment components and reinsurance premium refunds		(249,075)		-		249,075		-
Reinsurance finance income and expenses recognized in:
Profit or loss		9,054		(4)		1,829		10,879
Other comprehensive income		(211,900)		12		170		(211,718)
		(202,846)		8		1,999		(200,839)
Cash flows:
Reinsurance premiums paid		969,673		-		-		969,673
Recoveries from reinsurance		-		-		(129,648)		(129,648)
Investment components received and reinsurance premium refunds		21,694		-		(246,720)		(225,026)
		991,367		-		(376,368)		614,999
Closing balance:
Reinsurance contract assets		433,777		3,787		56,662		494,226
Reinsurance contract liabilities		(150,423)		31,323		62,722		(56,378)
Net assets (liabilities)	W	283,354		35,110		119,384		437,848

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

		2024
		Remaining coverage component				Incurred claims component		Total
		Excluding<br><br>loss recovery<br><br>component		Loss recovery<br><br>component
Opening balance:
Reinsurance contract assets	W	19,436		5,055		38,324		62,815
Reinsurance contract liabilities		(143,191)		23,142		26,929		(93,120)
Net assets (liabilities)		(123,755)		28,197		65,253		(30,305)
Reinsurance revenue:
Recoveries on incurred claims and other incurred reinsurance service expenses		-		-		89,789		89,789
Changes in expected recoveries on past claims		-		-		(29,392)		(29,392)
Recognition and reversal of loss recovery component		-		(6,131)		-		(6,131)
Others		17		(1,320)		-		(1,303)
		17		(7,451)		60,397		52,963
Reinsurance service expenses:
Reinsurance contracts under the fair value approach		(28,837)		-		-		(28,837)
Reinsurance contracts after transition		(29,006)		-		-		(29,006)
		(57,843)		-		-		(57,843)
Investment components and reinsurance premium refunds		(143,510)		-		143,510		-
Reinsurance finance income and expenses recognized in:
Profit or loss		(1,356)		37		1,375		56
Other comprehensive income		(2,692)		243		350		(2,099)
		(4,048)		280		1,725		(2,043)
Cash flows:
Reinsurance premiums paid		220,940		-		-		220,940
Recoveries from reinsurance		-		-		(33,480)		(33,480)
Investment components received and reinsurance premium refunds		2,348		-		(142,970)		(140,622)
		223,288		-		(176,450)		46,838
Other increase/decrease		(26)		26		-		-
Closing balance:
Reinsurance contract assets		47,337		3,806		56,525		107,668
Reinsurance contract liabilities		(153,214)		17,246		37,910		(98,058)
Net assets (liabilities)	W	(105,877)		21,052		94,435		9,610

(c) There have been no reinsurance contract assets (liabilities) to which the premium allocation approach has been applied for the years ended December 31, 2025 and 2024.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)						Total
										Reinsurance contracts under<br><br>fair value approach				Other contracts		Subtotal
Opening balance:
Reinsurance contract assets	W	(81,007)		19,668		78,043		90,964		169,007		107,668
Reinsurance contract liabilities		(323,274)		39,436		95,595		90,186		185,781		(98,057)
Net assets (liabilities)		(404,281)		59,104		173,638		181,150		354,788		9,611
Changes that relate to future service:
Changes in estimates that adjust the CSM		110,471		3,688		(54,909)		(45,411)		(100,320)		13,839
Contracts initially recognized in the period		(268,585)		16,943		-		253,230		253,230		1,588
		(158,114)		20,631		(54,909)		207,819		152,910		15,427
Changes that relate to current service:
CSM recognized for services received		-		-		(10,697)		(21,925)		(32,622)		(32,622)
Change in risk adjustment		-		(5,049)		-		-		-		(5,049)
Experience adjustments		70,745		-		-		-		-		70,745
		70,745		(5,049)		(10,697)		(21,925)		(32,622)		33,074
Changes that relate to past service:
Adjustments to incurred claims component		(33,574)		(850)		-		-		-		(34,424)
Reinsurance finance income or expenses recognized in:
Profit or loss		(7,190)		2,250		5,176		10,643		15,819		10,879
Other comprehensive income		(209,365)		(2,353)		-		-		-		(211,718)
		(216,555)		(103)		5,176		10,643		15,819		(200,839)
Cash flows:
Reinsurance premiums paid		969,673		-		-		-		-		969,673
Recoveries from reinsurance		(129,648)		-		-		-		-		(129,648)
Investment components received and reinsurance premium refunds		(225,026)		-		-		-		-		(225,026)
		614,999		-		-		-		-		614,999
Closing balance:
Reinsurance contract assets		188,681		26,546		57,547		221,452		278,999		494,226
Reinsurance contract liabilities		(315,461)		47,187		55,661		156,235		211,896		(56,378)
Net assets (liabilities)	W	(126,780)		73,733		113,208		377,687		490,895		437,848

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

		2024
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)						Total
										Reinsurance contracts under<br><br>fair value approach				Other contracts		Subtotal
Opening balance:
Reinsurance contract assets	W	(26,683)		18,538		15,224		55,736		70,960		62,815
Reinsurance contract liabilities		(181,724)		28,568		24,066		35,970		60,036		(93,120)
Net assets (liabilities)		(208,407)		47,106		39,290		91,706		130,996		(30,305)
Changes that relate to future service:
Changes in estimates that adjust the CSM		(187,433)		4,856		121,614		53,352		174,966		(7,611)
Contracts initially recognized in the period		(45,885)		4,651		-		42,714		42,714		1,480
		(233,318)		9,507		121,614		96,066		217,680		(6,131)
Changes that relate to current service:
CSM recognized for services received		-		-		11,035		(10,814)		221		221
Change in risk adjustment		-		(2,978)		-		-		-		(2,978)
Experience adjustments		33,399		-		-		-		-		33,399
		33,399		(2,978)		11,035		(10,814)		221		30,642
Changes that relate to past service:
Adjustments to incurred claims component		(27,873)		(1,518)		-		-		-		(29,391)
Reinsurance finance income or expenses recognized in:
Profit or loss		(7,593)		1,758		1,699		4,192		5,891		56
Other comprehensive income		(7,327)		5,228		-		-		-		(2,099)
		(14,920)		6,986		1,699		4,192		5,891		(2,043)
Cash flows:
Reinsurance premiums paid		220,940		-		-		-		-		220,940
Recoveries from reinsurance		(33,480)		-		-		-		-		(33,480)
Investment components received and reinsurance premium refunds		(140,622)		-		-		-		-		(140,622)
		46,838		-		-		-		-		46,838
Closing balance:
Reinsurance contract assets		(81,007)		19,668		78,043		90,964		169,007		107,668
Reinsurance contract liabilities		(323,274)		39,435		95,595		90,186		185,781		(98,058)
Net assets (liabilities)	W	(404,281)		59,103		173,638		181,150		354,788		9,610

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(e) An analysis of reinsurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		Estimates of present value of<br><br>future cash outflows
		Other than insurance<br><br>acquisition cash flows			Insurance acquisition<br><br>cash flows			Estimates of present value of<br><br>future cash inflows			Risk adjustment for<br><br>non-financial risks			Contractual service margin		Total
Reinsurance contract<br><br>initially recognized
Other than net gain group of contracts	W	(1,745,355)			-			1,478,122			15,440			253,107		1,314
Net gain group of contracts		(62,220)			-			60,868			1,503			123		274
	W	(1,807,575)			-			1,538,990			16,943			253,230		1,588
		2024
		Estimates of present value of<br><br>future cash outflows
		Other than insurance<br><br>acquisition cash flows			Insurance acquisition<br><br>cash flows			Estimates of present value of<br><br>future cash inflows			Risk adjustment for<br><br>non-financial risks			Contractual service margin		Total
Reinsurance contract<br><br>initially recognized
Other than net gain group of contracts	W	(159,792)			-			109,822			3,077			47,383		490
Net gain group of contracts		(64,074)			-			68,159			1,574			(4,669)		990
	W	(223,866)			-			177,981			4,651			42,714		1,480

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(f) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		2025
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>5 years		After 5 years through<br><br>10 years		After 10 years		Total
Reinsurance contract assets	W	19,298		18,144		49,242		67,963		124,352		278,999
Reinsurance contract liabilities		18,802		16,756		38,942		43,802		93,594		211,896
	W	38,100		34,900		88,184		111,765		217,946		490,895
		2024
---	---	---	---	---	---	---	---	---	---	---	---	---
		In<br><br>1 year or less		After 1 year through<br><br>2 years		After 2 years through<br><br>5 years		After 5 years through<br><br>10 years		After 10 years		Total
Reinsurance contract assets	W	12,512		11,334		29,402		38,425		77,334		169,007
Reinsurance contract liabilities		13,874		12,036		30,495		35,569		93,807		185,781
	W	26,386		23,370		59,897		73,994		171,141		354,788

27. Investment contract liabilities

Investment contract liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Financial liabilities at amortized cost (*)	W	1,541,684		1,332,468

(*) The amount is policyholders’ reserve for retirement pension contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

28. Debentures

Debentures as of December 31, 2025 and 2024 are as follows:

		2025
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond (unsecured) (*1)		KRW		2023.06.09		2033.06.09		5.20%		10 years	W	300,000		299,636
		KRW		2025.06.05		2035.06.05		3.40%		10 years		500,000		498,756
											W	800,000		798,392

(*1) The maturity of unsecured subordinated bonds is 10 years from the date of issuance, and each unsecured subordinated bond can be repaid early in full at the date after five years since the date of issuance or at every interest payment date thereafter.

(*2) The difference from the face value was recorded as the present value discount.

		2024
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond (unsecured) (*1)		KRW		2023.06.09		2033.06.09		5.20%		10 years	W	300,000		299,487

(*1) The maturity of unsecured subordinated bonds is 10 years from the date of issuance, and each unsecured subordinated bond can be repaid early in full at the date after five years since the date of issuance or at every interest payment date thereafter.

(*2) The difference from the face value was recorded as the present value discount.

29. Other financial liabilities

Other financial liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Account payables	W	22,914		16,438
Accrued expense		642,004		443,912
Lease deposits received		928		865
	W	665,846		461,215

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

30. Employee benefits

(a) Defined benefit obligations and plan assets

The Company operates a defined benefit plan based on employees' pension compensation benefits and service period, and entrusts plan assets to Shinhan Bank, etc.

Defined benefit obligations and plan assets as of December 31, 2025 and 2024 are as follows:

		2025		2024
Present value of defined benefit obligations	W	142,878		138,396
Fair value of plan assets		(147,746)		(154,730)
Recognized liabilities (assets) for defined benefit obligations	W	(4,868)		(16,334)

(b) Changes in the present value of defined benefit obligation for the years ended December 31, 2025 and 2024 were as

follows:

		2025		2024
Beginning balance	W	138,396		121,852
Current service cost		9,697		8,542
Interest expense		6,376		6,255
Remeasurement loss (gain):
Demographic assumptions		1,319		(106)
Financial assumptions		(4,236)		12,593
Experience adjustment		2,835		2,218
		(82)		14,705
Past service cost		-		40
Salaries		(11,708)		(14,675)
Severance payment transferred from (to) associates		199		1,677
Ending balance	W	142,878		138,396

(c) Plan assets

Changes in the Plan assets for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Beginning balance	W	154,730		156,109
Expected return		7,137		8,036
Remeasurement factors		(2,719)		(2,407)
Contributions		5,000		-
Benefits Paid		(16,402)		(7,008)
Ending balance	W	147,746		154,730

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

30. Employee benefits (continued)

(d) Gains and losses related to the defined benefit plan

Gains and losses related to the defined benefit plan for the years ended December 31, 2025 and 2024 are as follows:

(*1)(*2)		2025		2024
Current service cost	W	9,697		8,542
Interest expense		6,376		6,255
Past service cost		-		40
Expected return on plan assets		(7,137)		(8,036)
	W	8,936		6,801

(*1) The above gains and losses related to the defined benefit plan are included in insurance service expenses, investment management expenses, and other operating expenses. Of gains and losses related to the defined benefit plan, W418 million and W269 million for the years ended December 31, 2025 and 2024, respectively, were transferred to property and equipment, and intangible assets.

(*2) Termination benefits of W12,075 million and W24,251 million included in salaries were paid for the years ended December 31, 2025 and 2024, respectively.

(e) The gains and losses related to the defined contribution plan for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Operating expenses	W	5,136		4,943
Investment administration expenses		281		303
Total (*)	W	5,417		5,246

(*) Of the above gains and losses related to the defined contribution plan for the year ended December 31, 2025, W120 million (W156 million for the year ended December 31, 2024) has been transferred to property and equipment and intangible assets.

(f) Details of plan assets by type

The composition of plan assets as of December 31, 2025 and 2024 are as follows:

	2025				2024
	Ratio		Amount		Ratio		Amount
Time deposits	41.60%	W	61,455		49.78%	W	77,025
Retirement pension insurance	56.69%		83,761		49.33%		76,326
Others	1.71%		2,530		0.89%		1,379
	100.00%	W	147,746		100.00%	W	154,730

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

30. Employee benefits (continued)

(g) Actuarial assumptions as of December 31, 2025 and 2024 are as follows:

		2025		2024		Description
Discount rate (expected rate of return)		4.68%		4.66%		AA0 corporate bond yields
Future salary increase rate		4.41% +<br><br>increase rate		4.03% +<br><br>increase rate		Average for the past 5 years
Retirement rate		1%~23.7%		2% ~3%		Average for the past 3 years
Weighted average maturity		7.84 years		10.9 years

(h) Sensitivity analysis

As of December 31, 2025 and 2024, changes in present value of the defined benefit obligations resulted from the change in key assumption are as follows:

		2025				2024
		Increase		Decrease		Increase		Decrease
Discount rate (1%p movement)	W	(10,305)		11,606		(13,532)		15,620
Future salary increase rate<br><br>(1%p movement)		11,527		(10,427)		15,566		(13,734)

(i) Defined contribution plan for the year ended December 31, 2026, is expected to be W9,000 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

31. Provisions

(a) Details of provisions

Details of provisions as of December 31, 2025 and 2024 are as follows:

		2025		2024
Provisions for restoration	W	18,965		16,479
Unused credit commitments		777		253
Other long-term employee benefits provisions		11,183		13,802
Litigation provisions		300		352
Other provisions (*)		70,409		39,272
	W	101,634		70,158

(*) The amount expected to be paid in the future for the insurance refund of the insurance contract whose extinctive prescription has been completed is estimated and recorded as a liability for completion of extinctive prescription, and the Company recognized provisions related to pending litigation and other contingent matters. In addition, the amount as of December 31, 2025 includes an amount of W38,200 million recognized in respect of expected administrative penalties arising from the Financial Supervisory Service’s regular inspection conducted in 2023. This amount may be subject to change depending on the outcome of future regulatory actions.

(b) Changes in provisions for unused credit commitments

Changes in provisions for unused credit commitments for the years ended December 31, 2025 and 2024 are as follows:

		2025
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	247		6		-		253
Transfer to (from) 12-month expected credit losses		-		-		-		-
Transfer to (from) lifetime expected credit losses		-		-		-		-
Transfer to (from) impaired financial assets		-		-		-		-
Provision (Reversal)		530		(6)		-		524
Ending balance	W	777		-		-		777
		2024
---	---	---	---	---	---	---	---	---
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	652		1,202		-		1,854
Transfer to (from) 12-month expected credit losses		-		-		-		-
Transfer to (from) lifetime expected credit losses		-		-		-		-
Transfer to (from) impaired financial assets		-		-		-		-
Reversal		(405)		(1,196)		-		(1,601)
Ending balance	W	247		6		-		253

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

31. Provisions (continued)

(c) Changes in provisions

Change in provisions for the years ended December 31, 2025 and 2024 are as follows:

Classification		Provisions for restoration				Other long-term employee benefits provisions				Litigation provisions				Other provisions
			2025		2024		2025		2024		2025		2024		2025		2024
Beginning balance	W	16,479		16,103		13,802		13,361		352		862		39,272		43,385
Provision (Reverse)		1,295		277		1,520		1,544		(52)		(510)		64,869		41,575
Amount used		(48)		(93)		(1,004)		(854)		-		-		(33,732)		(45,688)
Others (*1)		1,239		192		(3,135)		(249)		-		-		-		-
Ending balance	W	18,965		16,479		11,183		13,802		300		352		70,409		39,272

(*1) The effects of changes in estimates, such as the amount and discount rate over time of restoration provisions and other long-term employee benefits provisions, measured at present value.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

31. Provisions (continued)

(d) Assumptions of other long-term employee benefits

The main assumptions used to calculate the reward for long-term employees according to the Company's long-term service as of December 31, 2025 and 2024 are as follows

		2025		2024		Description
Discount rate		4.23%		3.99%		AA0 corporate bond yields
Future salary increase rate		4.41% + increase rate		4.03% + increase rate		Average for the past 5 years
Retirement rate		1%~23.7%		2% ~3%		Average for the past 3 years

(e) Expected period of provision outflows

Expected period of provision outflows as of December 31, 2025 is as follows:

		2025
		Expected outflows		In 1 year<br><br>or less		After 1 year through<br><br>3 years		After 3 years through<br><br>5 years		After 5 years
Provisions for restoration (*1)	W	19,581		3,751		14,813		1,017		-
Unused credit commitments		777		32		6		735		4
Other long-term employee benefits provisions (*2)		13,997		1,933		3,001		1,865		7,198
Litigation provisions		300		-		300		-		-
Other provisions		70,409		55,114		3,466		2,981		8,848

(*1) It is the expected amount to be incurred at the time of the outflow of estimated restoration expense, which is before discounting as current value.

(*2) The expected outflow of provision for other long-term employee benefits provisions is an undiscounted amount.

32. Other liabilities

Other liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Unearned revenue	W	49		181
Deposits		24,691		29,813
Accrued VAT		76		101
Others		3,348		1,174
	W	28,164		31,269

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

33. Equity

• Equity as of December 31, 2025 and 2024 are as follows:

		2025		2024
Share capital:
Common stocks	W	578,274		578,274
Hybrid bonds:
Hybrid bonds		-		299,452
Capital surplus:
Capital premium		819,351		819,351
Other capital surplus		672		672
		820,023		820,023
Capital adjustment:
Stock options		891		1,461
Accumulated other comprehensive income, net of tax:
Losses on valuation of securities at fair value through other comprehensive income		(3,244,290)		(1,766,683)
Net valuation gain (loss) from cash flow hedges		(209,393)		90,681
Net finance income from insurance contracts issued		1,497,528		218,656
Net finance income from reinsurance contracts held		(141,935)		11,736
Remeasurements of defined benefit liabilities		(30,201)		(28,718)
		(2,128,291)		(1,474,328)
Retained earnings:
Legal reserve		132,991		95,160
Voluntary reserve		4,018,140		3,810,489
Unappropriated retained earnings		2,817,266		2,931,771
		6,968,397		6,837,420
	W	6,239,294		7,062,302

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

33. Equity (continued)

(b) Share capital

Share capital of the Company as of December 31, 2025 and 2024 are as follows:

		2025		2024
Number of authorized shares		400,000,000		400,000,000
Par value per share in won	W	5,000		5,000
Number of issued common stocks outstanding		115,654,859		115,654,859

(c) Hybrid bonds

Hybrid bonds as of December 31, 2025 and 2024 are as follows:

		Issue date		Maturity date		Interest rate		2025		2024
Unsecured interest-bearing hybrid bonds		2020-08-11		2050-08-11		3.60%	W	-		300,000
Issue cost								-		(756)
Deferred tax effects								-		208
							W	-		299,452

The above hybrid bonds were early redeemed during the year ended December 31, 2025, as the Company became entitled to exercise an early redemption option starting five years after issuance.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

33. Equity (continued)

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Items that may be subsequently reclassified to profit or loss								Items that will not be subsequently<br><br>reclassified to profit or loss
		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Valuation<br><br>gains (losses)<br><br>on derivative<br><br>for cash flow<br><br>hedges		Net finance<br><br>income from<br><br>insurance contracts issued		Net finance<br><br>income from<br><br>reinsurance<br><br>contracts held		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Remeasurements<br><br>of defined<br><br>benefit<br><br>liability		Total
Beginning balance	W	(1,761,365)		90,681		218,656		11,736		(5,317)		(28,718)		(1,474,327)
Change due to fair value		(2,077,812)		-		1,768,470		(211,718)		(4,193)		-		(525,253)
Change due to disposal		3,915		-		-		-		3,230		-		7,145
Remeasurements of the defined benefit liabilities		-		-		-		-		-		(2,637)		(2,637)
Effects of hedge		-		(412,878)		-		-		-		-		(412,878)
Tax effects		596,908		112,804		(489,598)		58,047		344		1,154		279,659
Reclassification of retained earnings		-		-		-		-		-		-		-
Ending balance	W	(3,238,354)		(209,393)		1,497,528		(141,935)		(5,936)		(30,201)		(2,128,291)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

33. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Items that may be subsequently reclassified to profit or loss								Items that will not be subsequently<br><br>reclassified to profit or loss
		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Valuation<br><br>gains (losses)<br><br>on derivative<br><br>for cash flow<br><br>hedges		Net finance<br><br>income from<br><br>insurance contracts issued		Net finance<br><br>income from<br><br>reinsurance<br><br>contracts held		Valuation<br><br>gains (losses) on<br><br>securities at<br><br>fair value<br><br>through other<br><br>comprehensive<br><br>income		Remeasurements<br><br>of defined<br><br>benefit<br><br>liability		Total
Beginning balance	W	(2,491,808)		45,462		2,572,059		13,280		(6,206)		(16,124)		116,663
Change due to fair value		954,558		-		(3,197,558)		(2,098)		1,053		-		(2,244,045)
Change due to disposal		37,892		-		-		-		100		-		37,992
Remeasurements of the defined benefit liabilities		-		-		-		-		-		(17,112)		(17,112)
Effects of hedge		-		62,906		-		-		-		-		62,906
Tax effects		(262,007)		(17,687)		844,155		554		(305)		4,518		569,228
Reclassification of retained earnings		-		-		-		-		41		-		41
Ending balance	W	(1,761,365)		90,681		218,656		11,736		(5,317)		(28,718)		(1,474,327)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

33. Equity (continued)

(e) Retained earnings

i) Legal reserve

According to the provisions of the Commercial Act, at least 10% of the profit dividend is accumulated as a legal reserve at each reporting period until it reaches 50% of the capital, and the legal reserve cannot be distributed in cash as dividends and can only be used for recovery of losses carried forward and capital transfer through resolution at the general meeting of shareholder.

ii) Statement of appropriation of retained earnings

		2025		2024 (*1)
		Expected date of appropriation:		Actual date of appropriation:
		2026-03-26		2025-03-24
I. RETAINED EARNINGS BEFORE APPROPRIATIONS:	W
1. Unappropriated retained earnings carried over from prior year		2,307,982		2,573,935
2. Net income		515,916		533,681
3. Hybrid bond interests		(6,632)		(10,800)
4. Interim dividends		-		(150,004)
5. Reclassification of other comprehensive income to retained earnings		-		(41)
		2,817,266		2,946,771
II.TRANSFERS FROM VOLUNTARY RESERVES:
1. Reversal of regulatory reserve for loan losses		-		1,008
		-		1,008
III. APPROPRIATIONS:
1. Legal Reserve		-		52,831
2. Guarantee Reserve		33,300		19,753
3. Surrender reserve		1,280,239		188,906
4. Allowance for credit losses		353		-
5. Loss on redemption of hybrid bonds		548		-
6. Dividends		-		378,307
		1,314,440		639,797
IV. UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR	W	1,502,826		2,307,982

(f) Dividends

Annual dividends for the years ended December 31, 2025 and 204 are as follows:

		2025		2024
Number of shares issued (*)		115,654,859 shares		115,654,859 shares
Par value per share	W	5,000		5,000
Dividend per share		-		3,271
Amount		-		378,307
Dividend payout ratio based on par value		-		65.42%

(*) The amount excludes interim dividends declared during the year ended December 31, 2024. Including interim dividends, the dividend per share would have been W4,568, and the dividend payout ratio based on par value would have been 91.36%.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

33. Equity (continued)

(g) Voluntary reserve

i) Regulatory reserve for loan losses

In accordance with the Regulations on Supervision of Insurance Business, when the allowance for credit losses in accordance with Korean IFRS falls short of the allowance for credit losses in accordance with the supervisory regulations, the Company is required to reserve the difference between the two as the regulatory reserve for loan losses in retained earnings. The regulatory reserve for loan losses is calculated by the difference between the total amount of credit loss provisions under Korean IFRS and the total amount of credit loss provisions under the supervisory regulations for each category of corporate loans, household loans, and real estate project financing loans. The regulatory reserve for loan losses is limited to the amount of retained earnings less reserves accumulated in accordance with the Insurance Business Act and other laws and regulations.

① Regulatory reserve for loan losses as of December 31, 2025 and 2024 are as follows:

		2025		2024
Beginning balance	W	5,989		6,997
Expected provision for (reversal of) regulatory reserve for loan losses		353		(1,008)
Ending balance	W	6,342		5,989

② Reversal of regulatory reserve for loan losses and adjusted income after reflecting the regulatory reserve for loan

losses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Profit for the year	W	515,916		533,681
Provision for (reversal of) regulatory reserve for loan losses		(353)		1,008
Adjusted income after the regulatory reserve for loan losses (*1)	W	515,563		534,689
Adjusted income per share after the reserve for<br><br>loan losses in won (*2)	W	4,400		4,530

(*1) The adjusted profit after reflecting the regulatory reserve for loan losses is not a figure determined by the accounting standards. It is derived assuming the inclusion of the reversal (or provision) of the regulatory reserve for loan losses, before considering the effects of policyholder share allocations and deferred tax impacts, into the net profit for the period.

(*2) Interest on hybrid bonds are excluded.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

33. Equity (continued)

(g) Voluntary reserve (continued)

ii) reserve for surrender value

In accordance with the Regulations on Supervision of Insurance Business, when the insurance liabilities measured in accordance with the Korean IFRS falls short of the surrender value required by the supervisory regulations, the Company is required to reserve the difference between the two as the reserve for surrender value. The reserve for surrender value is calculated by subtracting the liability for remaining coverage of insurance contracts under the Korean IFRS from the surrender value at the entity level for the effective contracts calculated according to the supervisory regulations.

Reserve for surrender value as of December 31, 2025 and 2024 are as follows:

		2025		2024
Reserve for surrender value	W	3,638,116		3,449,210
Expected reserve for surrender value		1,280,239		188,906
	W	4,918,355		3,638,116

iii) Guarantee reserve

In accordance with the Regulations on Supervision of Insurance Business, the Company is required to set aside a guarantee reserve at the reporting date in order to guarantee insurance proceeds and other payments not to less than a specified level. The guarantee reserve shall be accumulated after appropriation of reserve for surrender value and shall not be exceed the amount of retained earnings less reserve for surrender value.

Guarantee reserve as of December 31, 2025 and 2024 are as follows:

		2025		2024
Guarantee reserve	W	374,035		354,282
Expected guarantee reserve		33,300		19,753
	W	407,335		374,035

Voluntary reserves are accumulated from the time unappropriated deficits are settled when there are unappropriated deficits. If the voluntary reserve accumulated in previous periods exceeds the regulatory reserve for loan losses and guarantee reserve required to be accumulated as of the reporting date, the excess amount can be reversed.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

34. Share-based payment

As of December 31, 2025, share-based payment agreement of Shinhan Financial Group provided to the Company’s executives and employees are as follows:

(a) Performance-linked stock option

(*)		2022			2023		2024			2025
Type		Cash-settled share-based payment
Service period		4 years from the commencement date of the year to which the grant date belongs
Performance conditions		Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%)
Estimated vested amount<br><br>based on settlement date		70,575 shares		67,310 shares		62,532 shares			46,997 shares

(*) Based on the performance-related stock option, the standard stock price (the arithmetic average of the weighted average stock price for the past two months, the past one month, and the past one week from the day before the reference date) after 4 years since the date of grant is paid in cash. The fair value of the stock price is evaluated at the closing price of each reporting date.

(b) Share-based payment expenses

Share-based payment expenses calculated for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Performance-linked stock option	W	10,017		4,063

(c) Accrued expenses and intrinsic value

Accrued expenses and intrinsic value as of December 31, 2025 and 2024 are as follows:

		2025
		Accrued expenses		Intrinsic value (*1)
Performance-linked stock options (*2)	W	19,101		19,101

(*1) The intrinsic value for stock options vested at 2022 was calculated based on the stock price (W77,757) as of January 1, 2026, and the amount granted after that was calculated based on the closing price of the reporting date (W76,900).

(*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

		2024
		Accrued expenses		Intrinsic value (*1)
Performance-linked stock options (*2)	W	12,466		12,466

(*1) The intrinsic value for stock options vested at 2021 was calculated based on the stock price (W50,444) as of January 1, 2025, and the amount granted after that was calculated based on the closing price of the reporting date (W47,650).

(*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

35. Insurance revenue and insurance service expenses

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Insurance contracts under:				Insurance contracts after transition		Total
		Modified retrospective approach		Fair value approach
Insurance Revenue
Contracts not measured under the premium allocation approach:
Expected incurred claims and other<br><br>insurance service expenses	W	171,451		1,244,678		338,751		1,754,880
Change in risk adjustment		28,308		71,218		85,543		185,069
Contractual service margin recognized for<br><br>services provided		124,794		308,852		301,583		735,229
Recovery of insurance acquisition cash flows		86,572		1,217		322,803		410,592
Others (*)		(8,463)		(812)		(5,828)		(15,103)
		402,662		1,625,153		1,042,852		3,070,667
Contracts measured under the premium allocation approach		-		-		1,199		1,199
Total insurance revenue	W	402,662		1,625,153		1,044,051		3,071,866
Insurance service expenses
Contracts not measured under the premium allocation approach:
Incurred claims and other insurance service expenses	W	175,548		1,229,143		456,837		1,861,528
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(5,961)		(24,832)		2,981		(27,812)
Losses on onerous contracts and<br><br>reversal of such losses		(11,265)		(16,954)		90,049		61,830
Amortization of insurance acquisition cash flows		86,572		1,217		322,803		410,592
Experience adjustments to insurance acquisition<br><br>cash flows that are not related to future service		658		2,519		(13,658)		(10,481)
Others (*)		(8,464)		(750)		(5,818)		(15,032)
		237,088		1,190,343		853,194		2,280,625
Contracts measured under the premium allocation approach		-		-		2,189		2,189
Total insurance service expenses	W	237,088		1,190,343		855,383		2,282,814

(*) Others include allocation of loss components, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

35. Insurance revenue and insurance service expenses (continued)

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Insurance contracts under:				Insurance contracts after transition		Total
		Modified retrospective approach		Fair value approach
Insurance Revenue
Contracts not measured under the premium allocation approach:
Expected incurred claims and other<br><br>insurance service expenses	W	189,976		1,265,227		196,967		1,652,170
Change in risk adjustment		21,723		61,570		46,698		129,991
Contractual service margin recognized for<br><br>services provided		158,398		331,569		242,683		732,650
Recovery of insurance acquisition cash flows		110,336		1,226		237,167		348,729
Others (*)		(10,883)		(424)		(5,373)		(16,680)
		469,550		1,659,168		718,142		2,846,860
Contracts measured under the premium allocation approach		-		-		445		445
Total insurance revenue	W	469,550		1,659,168		718,587		2,847,305
Insurance service expenses
Contracts not measured under the premium allocation approach:
Incurred claims and other insurance service expenses	W	195,923		1,230,537		237,450		1,663,910
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(2,686)		26,060		4,439		27,813
Losses on onerous contracts and<br><br>reversal of such losses		(11,216)		68,891		17,369		75,044
Amortization of insurance acquisition cash flows		110,336		1,226		237,167		348,729
Experience adjustments to insurance acquisition<br><br>cash flows that are not related to future service		328		2,141		(33,835)		(31,366)
Others (*)		(10,885)		(424)		(5,179)		(16,488)
		281,800		1,328,431		457,411		2,067,642
Contracts measured under the premium allocation approach		-		-		1,366		1,366
Total insurance service expenses	W	281,800		1,328,431		458,777		2,069,008

(*) Others include allocation of loss components, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

36. Income or expenses from reinsurance contracts held

Income or expenses from reinsurance contracts held for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Reinsurance contracts under the fair value approach		Reinsurance contracts after transition		Total
Contracts not measured under the premium allocation approach:
Recovery of incurred claims and other insurance service expenses	W	108,510		76,158		184,668
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(32,864)		(1,561)		(34,425)
Recognition (reversals) of a loss-recovery component		409		15,019		15,428
Others (*)		(616)		(702)		(1,318)
Total reinsurance revenue	W	75,439		88,914		164,353
Contracts not measured under the premium allocation approach:
Expected claims and other reinsurance service expenses	W	37,115		39,416		76,531
Changes in risk adjustment		3,550		3,160		6,710
Contractual service margin recognized for services received		10,697		21,926		32,623
Experience adjustments for reinsurance premiums and<br><br>investment components not related to future service		17,815		17,972		35,787
Others (*)		(616)		(760)		(1,376)
Total reinsurance service expenses	W	68,561		81,714		150,275

(*) Others include allocation of loss recovery components, etc.

		2024
		Reinsurance contracts under the fair value approach		Reinsurance contracts after transition		Total
Contracts not measured under the premium allocation approach:
Recovery of incurred claims and other insurance service expenses	W	68,816		20,973		89,789
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(27,421)		(1,971)		(29,392)
Recognition (reversals) of a loss-recovery component		(10,318)		4,187		(6,131)
Others (*)		(1,053)		(250)		(1,303)
Total reinsurance revenue	W	30,024		22,939		52,963
Contracts not measured under the premium allocation approach:
Expected claims and other reinsurance service expenses	W	39,319		13,620		52,939
Changes in risk adjustment		2,858		1,063		3,921
Contractual service margin recognized for services received		(11,035)		10,814		(221)
Experience adjustments for reinsurance premiums and<br><br>investment components not related to future service		(1,252)		3,775		2,523
Others (*)		(1,053)		(266)		(1,319)
Total reinsurance service expenses	W	28,837		29,006		57,843

(*) Others include allocation of loss recovery components, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

37. Insurance finance income (expenses)

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025
		General life		Variable		Retirement<br><br>(*3)		Total
Investment income (expenses):
Interest income (expenses)	W	1,353,741		61,034		(17,075)		1,397,700
Gain on valuation and transaction of financial instruments		203,416		1,372,126		15,950		1,591,492
Other investment income (expenses)		(118,749)		(1,294)		(1,358)		(121,401)
Investment income (expenses) recognized in other comprehensive income (*1)		(2,487,126)		-		(250)		(2,487,376)
		(1,048,718)		1,431,866		(2,733)		380,415
Finance income (expenses) from insurance contracts issued:
Interest income (expenses)		(1,518,752)		(1,271,590)		-		(2,790,342)
Effect of changes in interest rates and other financial assumptions		1,808,825		(39,084)		-		1,769,741
Foreign exchange income		2,933		-		-		2,933
		293,006		(1,310,674)		-		(1,017,668)
Finance income (expenses) from insurance contracts recognized in profit or loss		(1,514,547)		(1,271,591)		-		(2,786,138)
Finance income (expenses) from insurance contracts recognized in other comprehensive income (*1)		1,807,553		(39,083)		-		1,768,470
Finance income (expenses) from reinsurance contracts held:
Interest income (expenses)		10,879		-		-		10,879
Effect of changes in interest rates and other financial assumptions		(211,718)		-		-		(211,718)
		(200,839)		-		-		(200,839)
Finance income (expenses) from reinsurance contracts recognized in profit or loss		10,879		-		-		10,879
Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (*1)		(211,718)		-		-		(211,718)
Total finance income (expenses) recognized in profit or loss (*2)		(65,260)		160,275		(2,483)		92,532
Total finance income (expenses) recognized in other comprehensive income (*2)		(891,291)		(39,083)		(250)		(930,624)
Total	W	(956,551)		121,192		(2,733)		(838,092)

(*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(*3) Retirement is a pension product classified as an investment contract liability.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

37. Insurance finance income (expenses) (continued)

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
			General life		Variable		Retirement<br><br>(*3)		Total
Investment income (expenses):
Interest income (expenses)	W		1,375,866		78,520		(20,269)		1,434,117
Gain (loss) on valuation and transaction of financial instruments			307,677		126,554		(6,624)		427,607
Other investment income (expenses)			(71,695)		(2,126)		(2,335)		(76,156)
Investment income (expenses) recognized in other comprehensive income (*1)			1,013,851		-		42,712		1,056,563
			2,625,699		202,948		13,484		2,842,131
Finance income (expenses) from insurance contracts issued:
Interest income (expenses)			(1,499,414)		(172,640)		-		(1,672,054)
Effect of changes in interest rates and other financial assumptions			(3,148,484)		(50,709)		-		(3,199,193)
Foreign exchange income (expenses)			(31,746)		-		-		(31,746)
			(4,679,644)		(223,349)		-		(4,902,993)
Finance income (expenses) from insurance contracts recognized in profit or loss			(1,532,796)		(172,640)		-		(1,705,436)
Finance income (expenses) from insurance contracts recognized in other comprehensive income (*1)			(3,146,848)		(50,709)		-		(3,197,557)
Finance income (expenses) from reinsurance contracts held:
Interest income (expenses)			56		-		-		56
Effect of changes in interest rates and other financial assumptions			(2,098)		-		-		(2,098)
			(2,042)		-		-		(2,042)
Finance income (expenses) from reinsurance contracts recognized in profit or loss			56		-		-		56
Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (*1)			(2,098)		-		-		(2,098)
Total finance income (expenses) recognized in profit or loss (*2)			79,108		30,308		(29,228)		80,188
Total finance income (expenses) recognized in other comprehensive income (*2)			(2,135,095)		(50,709)		42,712		(2,143,092)
Total	W		(2,055,987)		(20,401)		13,484		(2,062,904)

(*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(*3) Retirement is a pension product classified as an investment contract liability.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

37. Insurance finance income (expenses) (continued)

(b) Financial gains and losses recognized in profit or loss for the years ended December 31, 2025 and 2024 are divided into those related to changes in the fair value of the underlying assets of insurance contracts with direct participation characteristics and others as follows.

		2025
		FV change related		Others		Total
Investment income (expenses)	W	1,047,870		1,819,921		2,867,791
Finance income (expenses) from insurance contracts issued		(1,047,870)		(1,738,268)		(2,786,138)
Finance income (expenses) from reinsurance contracts held		-		10,879		10,879
	W	-		92,532		92,532
		2024
---	---	---	---	---	---	---	---
		FV change related		Others		Total
Investment income (expenses)	W	157,494		1,628,074		1,785,568
Finance income (expenses) from insurance contracts issued		(157,494)		(1,547,942)		(1,705,436)
Finance income (expenses) from reinsurance contracts held		-		56		56
	W	-		80,188		80,188

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

38. Operating expenses

Operating expenses by nature for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Claim adjustment expenses		Acquisition costs (*)		Maintenance<br><br>expenses		Investment management expenses		Other operating expenses		Total
Salaries	W	5,678		64,218		53,471		5,054		11,099		139,520
Bonus		1,540		19,438		18,603		1,652		2,887		44,120
Retirement benefits		558		6,212		5,098		482		12,854		25,204
Employee benefits		1,449		16,963		14,033		1,748		15,894		50,087
Amortization		193		29,940		19,539		373		855		50,900
Utilities		135		16,207		8,406		251		519		25,518
Commission		79		22,050		29,699		28,743		6,433		87,004
Taxes and dues		292		-		71,002		331		1		71,626
IT expenses		737		21,379		20,303		1,485		2,097		46,001
Proportional commission		-		1,186,027		-		-		17,744		1,203,771
Sales promotion expenses		-		629,092		-		-		5,062		634,154
Training expenses		-		18		-		-		6,064		6,082
Others		13,807		37,067		27,736		242		17,468		96,320
	W	24,468		2,048,611		267,890		40,361		98,977		2,480,307

(*) Acquisition costs are reflected as insurance acquisition cash flows.

		2024
		Claim adjustment expenses		Acquisition costs (*)		Maintenance<br><br>expenses		Investment management expenses		Other operating expenses		Total
Salaries	W	5,650		59,426		53,817		5,841		10,439		135,173
Bonus		1,726		20,696		20,549		1,905		3,966		48,842
Retirement benefits		507		4,756		4,701		1,200		23,319		34,483
Employee benefits		1,789		19,079		17,272		2,129		14,392		54,661
Amortization		171		27,353		19,850		380		889		48,643
Utilities		116		15,146		7,871		218		519		23,870
Commission		97		23,256		24,380		31,292		7,221		86,246
Taxes and dues		562		-		67,044		325		1		67,932
IT expenses		756		19,292		19,843		1,674		2,060		43,625
Proportional commission		-		957,335		-		-		17,486		974,821
Sales promotion expenses		-		397,263		-		-		4,222		401,485
Training expenses		-		-		-		-		6,032		6,032
Others		11,726		28,780		26,647		239		24,488		91,880
	W	23,100		1,572,382		261,974		45,203		115,034		2,017,693

(*) Acquisition costs are reflected as insurance acquisition cash flows.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

39. Investment administrative expenses

The investment administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Salaries	W	4,017		3,261
Bonus		1,311		1,104
Retirement benefits		686		1,389
Employment benefits		1,505		1,367
Communication expenses		70		83
Fees		8,053		6,812
Taxes and dues		384		364
Others		2,316		1,911
	W	18,342		16,291

40. Net interest income

(a) Interest income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Interest income on:
Deposits at amortized cost	W	54,994		53,780
Deposits at fair value through profit or loss		1,305		133
Securities at fair value through profit or loss		72,080		87,221
Securities at fair value through other comprehensive income		1,103,825		1,093,402
Securities at amortized cost		116,982		128,985
Loans at amortized cost		111,687		145,329
Others		3,675		3,409
	W	1,464,548		1,512,259

(b) Interest expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Interest expenses on:
Bonds issued	W	25,686		15,761
Lease liabilities		1,998		2,354
Others		39,164		60,027
	W	66,848		78,142

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

41. Provision for (reversal of) credit loss allowance

Provision for (reversal of) credit loss allowance for the years ended December 31, 2025 and 2024 are as follows:

				2025		2024
Provisions (Reversal)		Securities at fair value through other comprehensive income	W	(1,269)		(1,225)
		Securities at amortized costs		(2)		(23)
		Loans at amortized costs		4,734		7,410
		Receivables at amortized costs (*)		1,006		2,135
		Allowance for unused credit commitments		525		(1,601)
			W	4,994		6,696

(*) It includes provision for (reversal of) credit loss allowance of due from banks at amortized cost.

42. Gain and losses on foreign exchange transactions

Foreign exchange transaction income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Gain on foreign exchange transactions:
Foreign transactions	W	15,607		65,226
Translations		231,851		579,956
		247,458		645,182
Loss on foreign exchange transactions:
Foreign transactions		23,986		11,993
Translations		100,161		170
		124,147		12,163
	W	123,311		633,019

43. Fees and commission income

Fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Credit related fees	W	572		2,979
Loan commissions		7,217		7,198
Retirement pension management fee		1,515		2,238
Other fees and commissions in won		177		148
	W	9,481		12,563

44. Dividend income

Dividend income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Financial assets at fair value through profit or loss	W	32,017		28,111
Securities at fair value through other comprehensive income		5,752		4,399
	W	37,769		32,510

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

45. Other investment income or expenses

(a) Other investment income for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Rental income	W	1,657		1,738
Others		1,114		6,939
	W	2,771		8,677

(b) Other investment expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Amortization expense on intangible assets	W	74,718		73,124
Depreciation expense on investment properties		212		212
Others		40,380		7,769
	W	115,310		81,105

46. Non-operating income or expenses

		2025		2024
Non-operating income:
Gain on cancellation of right-of-use asset	W	876		454
Gain on disposal of property and equipment		9		24
Miscellaneous gains		8,491		8,636
	W	9,376		9,114
Non-operating expenses:
Loss on cancellation of right-of-use asset		592		102
Loss on disposal of property and equipment		101		93
Impairment of property and equipment		924		1,703
Impairment of intangible assets		1		167
Donations		7,020		7,977
Miscellaneous loss		886		2,033
		9,524		12,075
	W	(148)		(2,961)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

47. Income tax expense

(a) Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Current income tax expense	W	121,299		16,092
Adjustment for prior periods		(8,673)		(15,943)
Temporary differences		(111,281)		(367,451)
Deferred tax recognized in other comprehensive income		279,069		569,215
Income tax recognized in other comprehensive income		208		14
Income tax expenses	W	280,622		201,927
Effective tax rate		35.23%		27.45%

(b) Reconciliation of net income before tax to income tax expenses for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Net profit before income taxes	W	796,538		735,608
Income taxes at statutory tax rates		210,287		194,202
Adjustments:
Non-taxable income		(3,924)		(6,038)
Non-deductible expense		1,463		4,947
Tax rate difference		(10,362)		(3,036)
Effect of consolidated tax payment		2,663		(1,463)
Effect of changes in tax rates		79,051		-
Others		1,444		13,315
		70,335		7,725
Income tax expense	W	280,622		201,927
Effective tax rate		35.23%		27.45%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

47. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Beginning<br><br>Balance		Profit or loss		Other comprehen-sive income		Hybrid bonds		Equity adjustment		Ending<br><br>Balance
Deposits in foreign currency	W	(76)		(222)		-		-		-		(298)
Financial assets at fair value through profit or loss		(30,630)		(17,230)		-		-		-		(47,860)
Securities at fair value through other comprehensive income		(231,609)		(84,541)		596,891		-		-		280,741
Securities at amortized costs		(30,200)		(6,326)		-		-		-		(36,526)
Investments in associates		2,803		117		-		-		-		2,920
Derivative instruments		103,259		16,810		112,803		-		-		232,872
Accrued income		(163,425)		(29,357)		-		-		-		(192,782)
Evaluation cost of initial investment fund		101		4		-		-		-		105
Deemed dividend		7,750		(34)		-		-		-		7,716
Dividend receivables		119		5		-		-		-		124
Other liabilities		(219)		539		-		-		-		320
Provisions		101		148		-		-		-		249
Dividend cost recovery		24,350		(2,757)		-		-		-		21,593
Taxation of partnership		1,696		976		-		-		-		2,672
Reserve for outstanding claims for matured contracts		10,356		(1,510)		-		-		-		8,846
Property and equipment, intangible assets		7,858		1,107		-		-		-		8,965
Other accrued expense		29,605		(4,297)		-		-		-		25,308
Loan origination cost (fees)		(207)		1,160		-		-		-		953
Share-based payment		3,291		1,984		-		-		(22)		5,253
Defined benefit obligations		(1,554)		(2,284)		1,154		-		-		(2,684)
Vehicles for business use (depreciation adjustment)		39		(2)		-		-		-		37
Accrued interests (deposit)		(3)		(2)		-		-		-		(5)
Right-of-use assets		34		(26)		-		-		-		8
Uncollected commission clawbacks		12		-		-		-		-		12
Loans		1,719		72		-		-		-		1,791
Deficit carried forward		5,537		(3,332)		-		-		-		2,205
Hybrid bonds		199		8		-		(208)		-		(1)
Legal provision		93		(11)		-		-		-		82
Effect of change in discount rate under K-IFRS 1117		(82,277)		(334)		(431,550)		-		-		(514,161)
Surrender Value Reserve		(922,842)		(38,451)		-		-		-		(961,293)
	W	(1,264,120)		(167,786)		279,298		(208)		(22)		(1,152,838)

(*1) During the year ended December 31, 2025, the corporate income tax rate and the local income tax rate were revised as a result of amendments to the Corporate Tax Act and the Corporate Local Income Tax Act. Accordingly, deferred tax assets and liabilities expected to be realized after 2025 were measured using a tax rate of 27.5%.

(*2) The Company is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

47. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Beginning<br><br>Balance		Profit or loss		Other comprehensive income		Equity adjustment		Ending<br><br>Balance
Deposits in foreign currency	W	(203)		127		-		-		(76)
Financial assets at fair value through profit or loss		(8,314)		(22,317)		-		-		(30,631)
Securities at fair value through other comprehensive income		167,212		(136,496)		(262,325)		-		(231,609)
Securities at amortized costs		(8,452)		(21,747)		-		-		(30,199)
Investments in associates		2,803		-		-		-		2,803
Derivative instruments		35,243		85,703		(17,687)		-		103,259
Accrued income		(139,749)		(23,676)		-		-		(163,425)
Evaluation cost of initial investment fund		-		101		-		-		101
Deemed dividend		8,535		(785)		-		-		7,750
Dividend receivables		119		-		-		-		119
Other liabilities		726		(945)		-		-		(219)
Provisions		290		(188)		-		-		102
Dividend cost recovery		22,821		1,529		-		-		24,350
Taxation of partnership		1,113		583		-		-		1,696
Reserve for outstanding claims for matured contracts		11,445		(1,089)		-		-		10,356
Property and equipment, intangible assets		9,017		(1,159)		-		-		7,858
Other accrued expense		26,626		2,979		-		-		29,605
Loan origination cost (fees)		51		(258)		-		-		(207)
Share-based payment		2,667		624		-		-		3,291
Defined benefit obligations		(9,043)		2,972		4,518		-		(1,553)
Vehicles for business use (depreciation adjustment)		30		9		-		-		39
Accrued interests (deposit)		-		(3)		-		-		(3)
Right-of-use assets		(363)		396		-		-		33
Uncollected commission clawbacks		12		-		-		-		12
Government subsidies		1		(1)		-		-		-
Loans		1,719		-		-		-		1,719
Deficit carried forward		10,483		(4,946)		-		-		5,537
Hybrid bonds		199		-		-		-		199
Legal provision		214		(121)		-		-		93
Effect of change in discount rate under K-IFRS 1117		(927,418)		432		844,709		-		(82,277)
Surrender Value Reserve		(839,355)		(83,486)		-		-		(922,841)
	W	(1,631,571)		(201,762)		569,215		-		(1,264,118)

(*) The Company is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

47. Income tax expense (continued)

(d) As of December 31, 2025 and 2024, deferred income tax related to items recognized other than in profit or loss for the years are as follows:

		January 1, 2025				Changes				December 31, 2025
		Amount		Tax effect		Amount		Tax effect		Amount		Tax effect
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(2,400,385)		633,702		(2,074,499)		596,891		(4,474,884)		1,230,593
Insurance and reinsurance finance income (expenses)		313,034		(82,641)		1,556,753		(431,550)		1,869,787		(514,191)
Remeasurement of defined benefit liabilities		(39,020)		10,301		(2,637)		1,154		(41,657)		11,455
Stock options		1,985		(524)		-		(22)		1,985		(546)
Gains (losses) on valuation of derivatives for cash flow hedge		122,933		(32,253)		(412,877)		112,803		(289,944)		80,550
Hybrid bonds		(755)		208		755		(208)		-		-
	W	(2,002,208)		528,793		(932,505)		279,068		(2,934,713)		807,861
		January 1, 2024				Changes				December 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---
		Amount		Tax effect		Amount		Tax effect		Amount		Tax effect
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(3,394,042)		896,026		993,657		(262,324)		(2,400,385)		633,702
Insurance and reinsurance finance income (expenses)		3,512,690		(927,350)		(3,199,656)		844,709		313,034		(82,641)
Remeasurement of defined benefit liabilities		(21,907)		5,784		(17,113)		4,517		(39,020)		10,301
Stock options		1,985		(524)		-		-		1,985		(524)
Gains (losses) on valuation of derivatives for cash flow hedge		60,028		(14,566)		62,905		(17,687)		122,933		(32,253)
Hybrid bonds		(755)		208		-		-		(755)		208
	W	157,999		(40,422)		(2,160,207)		569,215		(2,002,208)		528,793

(e) Current tax assets and liabilities

Current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Current tax assets
Income tax receivables (refund of consolidated tax payment)	W	5,661		82,404
Current tax liabilities
Income tax payables (unpaid consolidated tax payment)	W	(14,019)		(79)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

47. Income tax expense (continued)

(f) Income taxes based on gross amount

Deferred tax assets and liabilities and current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

		2025		2024
Deferred tax assets	W	602,772		198,923
Deferred tax liabilities		(1,755,610)		(1,463,041)
Current tax assets		5,661		82,404
Current tax liabilities		(14,019)		(79)

(g) Global Anti-Base Erosion (GloBE) Rules

Following the enactment of legislation related to the Global Anti-Base Erosion (GloBE) Rules, the Company is obligated to pay a top-up tax equal to the difference between the effective tax rate and the minimum rate of 15% in each jurisdiction in which its constituent entities are located, to the extent that the jurisdictional effective tax rate falls below 15%. The Company has assessed the impact of the GloBE rules in accordance with the relevant legislation and has determined that no significant amount of top-up tax is expected to arise, as most constituent entities meet the transitional safe harbor requirements or have effective tax rates exceeding 15%.

Income tax expense related to the GloBE rules is subject to estimation uncertainty due to potential variability arising from various factors, including tax incentives received by permanent establishments and adjustments to accounting net profit or loss required under the legislation for the calculation of GloBE income in subsequent periods. In addition, the Company applies the temporary exception to the recognition and disclosure of deferred tax assets and liabilities under K-IFRS 1012, and therefore does not recognize deferred tax assets or liabilities related to the GloBE rules, nor does it disclose information related thereto.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

48. Contingencies and commitments

(a) Insurance agreement

As of December 31, 2025, the total number and amount of insurance contracts held by the Company are 6,787,026 contracts and W178,659,167 million, respectively (6,662,924 contracts and W181,660,251 million, respectively for the year ended December 31, 2024).

(b) Reinsurance agreements

As of December 31, 2025, the Company held reinsurance contracts with 10 domestic and global reinsurance companies, including Korean Reinsurance Company and Reinsurance Group of America Incorporated ("RGA") for insurance contracts that cover cancer, cerebrovascular and heart disease (DP), critical illness (CI), death and disaster, and dementia. For life insurance contracts, the Company held coinsurance contracts with Korean Reinsurance Co., Ltd., Swiss Reinsurance Co. (“Swiss Re”), and RGA, which proportionally reinsures insurance risks and interest rate risks.

(c) Pending litigations

As of December 31, 2025, the Company has 90 pending litigations (Total claim amounts of W9,736 million). Among these, provisions related to the litigation were accounted for W300 million, and liabilities for incurred claims related to insurance claims were accounted for W5,732 million. As of December 31, 2025, the result of litigation is unpredictable.

(d) Bank overdraft agreement

As of December 31, 2025, the Company has bank overdraft agreements with Shinhan Bank. The limit on bank overdraft is W 100,000 million (W 100,000 million as of December 31, 2024).

(e) Unused credit provided and capital commitments

As of December 31, 2025, the Company's unused credit provided and capital commitments amounted to W373,782 million and W1,304,582 million, respectively (W164,307 million and W1,354,692 million, respectively as of December 31, 2024).

(f) Other commitments

As of December 31, 2025 and 2024, the details of payment guarantee are as follows:

Guarantee provider		2025		2024		Type of guarantee
Seoul Guarantee Insurance Co., Ltd.	W	564		1,452		Guarantee deposit etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

49. Related parties

(a) Related parties as of December 31, 2025 are as follows:

The parent company		Shinhan Financial Group
Subsidiaries		Shinhan Financial Plus Co., Ltd.
		Shinhan Life Insurance Vietnam Co., Ltd.
		Shinhan LifeCare Co., Ltd.
		Miraeasset Maps Global Infra Private Special Asset Trust 2
		Shinhan AIM Credit Fund 3
		Shinhan AIM Private fund of funds Trust 7-A
		Shinhan AIM Private fund of funds Trust 6-B
		Shinhan AIM Private fund of funds Trust 5
		KB Global Private Real Estate Debt Fund 23
		KB Global Private Real Estate Debt Fund 21
		Shinhan KKR Global Program REC Private Investment Trust
		Shinhan KKR Global Program PEF Private Investment Trust
		Shinhan KKR Global Program PDF Private Investment Trust
		Shinhan LCP X Private Investment Trust No.4(H)
		Pinestreet BDC Global Corporate FoF 38 (*)
		Pinestreet IG Global Corporate FoF 39 (*)
		Shinhan BDC OCIC Private investment Trust No.1 (H) (*)
		Shinhan SLAMS TPA Private Fund (*)
		Shinhan Apollo SFG Private Investment Trust No.1(USD) (*)
		Apollo SFG IG Short Duration Fund, L.P. (*)
		Shinhan Apollo ADS Private Investment Trust No.1(H) (*)
		Shinhan BDC OCIC Private Investment Trust No.2(H) (*)
Entities under common control		Shinhan Bank Co., Ltd.
		Shinhan Securities Co., Ltd.
		Shinhan Card Co., Ltd.
		Jeju Bank
		Shinhan DS
		Shinhan Asset Management Co., Ltd.
		Shinhan Capital Co., Ltd.
		Shinhan Savings Bank
		Shinhan Fund Partners
		SHC Management Co., Ltd.
		Shinhan REITs Management Co., Ltd.
		Shinhan Asset Trust Co., Ltd.
		Shinhan Venture Investment Co., Ltd.
		Shinhan EZ General Insurance, Ltd.
		SHBNPP Green Energy Private Special Asset Investment Trust
		SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust
		SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust
		SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2
		SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

49. Related parties (continued)

(a) Related parties as of December 31, 2025 are as follows: (continued)

Entities under common control (continued)		SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4
		SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5
		SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust
		Shinhan AIM Social Enterprise Investment Fund I
		Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1
		One Shinhan Futures Fund 1
		SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2
		SHBNPP Global Professional Investment Type Private Investment Trust No.12
		Shinhan AIM Private Real Estate Investment Trust No.15
		Shinhan AIM FoF Fund 4
		Shinhan AIM Social Enterprise Investment Fund II
		SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4
		Shinhan AIM Private Real Estate Investment Trust No.13
		Shinhan AIM FoF Fund 6-A
		SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust
		SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3
		One Shinhan Futures Fund 2
		SH BNPP Startup Venture Alpha Specialized Investment Private Equity Mixed Asset Trust No.1
		SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1
		Shinhan AIM Investment Finance Specialized Investment Trust No. 1
		Shinhan AIM Social Enterprise Investment Fund III
		SH Startup Venture Specialized Investment Private Equity Trust No.4
		SH Green New Deal Energy Special Asset Private Investment Trust No.3
		Shinhan AIM Private Real Estate Investment Trust No.22-A
		One Shinhan Connect New Technology Investment Fund 1
		Shinhan Global Green Energy Partnership Private Investment Trust No.1
		SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd
		One Shinhan Futures Fund 3
		SH Startup Venture Private Equity Trust No.5
		Shinhan Greenway Corporate Investment FUND NO.1
		One Shinhan Connect New Technology Investment Fund 2
		Shinhan global flagship venture fund 1
		SH BGT Private Special Asset Investment Trust No.2

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

49. Related parties (continued)

(a) Related parties as of December 31, 2025 are as follows: (continued)

Entities under common control (continued)		Shinhan AIM Credit 4-B_Clover2
		SH Venture Private Investment Trust No.6
		Shinhan One Flagship Real Estate Development Fund 1
		Shinhan hyper connect venture fund Ι
		Shinhan hyper future’s venture fund 1
		SH Special Situation Private Real Estate Feeder Investment Trust No.1
		Shinhan CIS III Private Investment Trust No.1
		SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)
		SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 (*)
		Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) (*)
		Shinhan SLAMS Co-Investment Private Investment Trust No.1 (*)
Associates		iPIXEL Co., Ltd.
		Findvalue JD Fund No.1
Associates of entities under common control		SBC PFV Co., Ltd
		Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37
		LB Scotland Amazon Fulfillment Center Fund 29
		SHINHAN-NEO Core Industrial Technology Fund
		SHINHAN-NEO Market-Frontier 2nd Fund
		SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2
		Macquarie Korea Opportunities Fund(MKOF)
		SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust
		Shinhan AIM Private Real Estate Investment Trust No.1
		Shinhan AIM Private Real Estate Investment Trust No.2
		SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]
		PCC Amberstone Private Equity Fund I
		KIAMCO POWERLOAN TRUST 4TH
		SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2
		Shinhan JigaeNamsan Road Private Special Asset Investment Trust
		SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.
		IGIS Private Real Estate Investment Trust 517-1
		IGIS Private Real Estate Investment Trust 562-1 (*)
		Shinhan AIM Private Fund of Fund 9-B
		Songpa Biz-Cluster PFV Co.,Ltd.
		Finflow (*)
Others		Shinhan Life Shining Foundation

(*) It was newly included as a related party during the year ended December 31, 2025.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows:

Related party			Account		2025		2024
The parent company
Shinhan Financial Group		Securities at fair value through other comprehensive income		W	-		29,898
		Accrued income			-		167
		Credit loss allowance			-		(13)
		Current tax assets			5,661		82,404
		Current tax liabilities			14,019		77
		Accrued expenses			19,101		12,466
Subsidiaries
Shinhan Financial Plus Co., Ltd.		Lease deposits received			122		-
		Accrued expenses			3,508		3,614
Shinhan Life Insurance Vietnam Co., Ltd.		Accrued income			-		290
Shinhan LifeCare Co., Ltd.		Lease deposits received			99		96
Entities under common control
Shinhan Bank		Cash and due from banks at amortized cost			39,002		68,608
		Financial assets at fair value through profit or loss (*1)			41,395		37,234
		Lease deposits paid			4,681		4,536
		Right-of-use assets			2,349		3,160
		Derivative assets			1,737		1,425
		Derivative liabilities			139,508		108,165
		Lease liabilities			2,758		3,452
		Accrued expenses			1,393		93
		Investment contract liabilities (*2)			5,290		144,698
Shinhan Securities Co., Ltd.		Cash and due from banks at amortized cost			108,942		24,231
		Accrued income			2		2
		Derivative assets			5,013		25,593
		Account receivables			3,973		1,391
		Derivative liabilities			29,865		11,263
		Accrued expenses			5,840		2,238
Shinhan Card Co., Ltd.		Account receivables			36		33
		Accrued income			1		3
		Credit loss allowance			-		(19)
		Accrued expenses			3,552		2,804
		Investment contract liabilities (*2)			-		8,409
Jeju Bank		Cash and due from banks at amortized cost			102		86
		Investment contract liabilities (*2)			-		14,339
Shinhan DS		Accrued expenses			340		734
Shinhan Asset Management Co., Ltd.		Financial assets at fair value through profit or loss (*1)			95		8,754
		Accrued expenses			437		503
Shinhan Venture Investment Co., Ltd.		Financial assets at fair value through profit or loss (*1)			99		-
Shinhan Fund Partners		Accrued expenses			186		197

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows: (continued)

Related party		Account		2025		2024
Associates of entities under common control
SBC PFV Co., Ltd		Loans	W	78,300		-
		Accrued income		28		-
		Credit loss allowance		(673)		-
		Unused credit commitments		599		-
Total assets			W	290,743		287,783
Total liabilities			W	226,617		313,148

(*1) It is a financial instrument related to consolidated structured entities of related parties.

(*2) It is policyholders’ reserve for retirement pension contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows:

Related party	Account		2025		2024
The parent company
Shinhan Financial Group	Interest income	W	92		870
	Provision for (reversal of) credit loss allowance		(13)		(2)
	Commissions paid, etc.		4,879		4,879
Subsidiaries
Shinhan Financial Plus Co., Ltd.	Interest income		-		1
	Other income		418		702
	Insurance contract commissions		50,563		44,687
	Interest expense		-		2
	Other expense		-		21
	Commissions paid, etc.		11,162		10,004
Shinhan Life Insurance Vietnam Co., Ltd.	Fees and commission income		12		405
Shinhan LifeCare Co., Ltd.	Other income		218		168
Shinhan AIM Private fund of funds Trust 5	Distribution income		1,103		2,778
Shinhan AIM Private fund of funds Trust 6-B	Distribution income		2,936		868
Shinhan AIM Credit Fund 3	Distribution income		6,738		6,928
KB Global Private Real Estate Debt Fund 23	Distribution income		7,215		5,889
KB Global Private Real Estate Debt Fund 21	Distribution income		3,076		2,460
Shinhan KKR Global Program PDF Private Investment Trust	Distribution income		6,984		2,837
Shinhan KKR Global Program REC Private Investment Trust	Distribution income		4,060		3,937
Shinhan KKR Global Program PEF Private Investment Trust	Distribution income		3,973		419
Shinhan LCP X Private Investment Trust No.4(H)	Distribution income		1,442		830
Pinestreet BDC Global Corporate FoF 38	Distribution income		5,184		-
Pinestreet IG Global Corporate FoF 39	Distribution income		909		-
Shinhan BDC OCIC Private investment Trust No.1 (H)	Distribution income		4,326		-
Shinhan AIM Private fund of funds Trust 7-A	Distribution income		281		-
Shinhan Apollo SFG Private Investment Trust No.1()	Distribution income		116		-
Entities under common control
Shinhan Bank	Interest income		855		1,871
	Distribution income (*1)		151		159
	Fee and commission income		8		6
	Gains related to derivatives		23,058		779
	Other income		-		88
	Insurance contract commissions		14,863		8,004
	Interest expense		95		90
	Losses related to derivatives		31,832		135,123
	Commissions paid, etc.		5,354		4,847
	Other expense		80		-
Shinhan Securities Co., Ltd.	Interest income		182		224
	Fees and commission income		9		9
	Gains related to derivatives		1,390		167
	Losses related to derivatives		104		3,155
	Commissions paid, etc.		1,135		1,448

All values are in US Dollars.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

Related party		Account		2025		2024
Entities under common control (continued)
Shinhan Card Co., Ltd.		Interest income	W	-		379
		Fees and commission income		45		76
		Other income		-		13
		Insurance contract commissions		9,645		11,132
		Provision for (reversal of) credit loss allowance		(19)		-
		Commissions paid, etc.		5,235		4,710
Jeju Bank		Insurance contract commissions		3		9
		Commissions paid, etc.		12		13
Shinhan DS		Commissions paid, etc.		29,126		27,671
Shinhan Asset Management Co., Ltd.		Distribution income (*1)		88		1,986
		Commissions paid, etc.		9,375		9,028
Shinhan Savings Bank		Fees and commission income		5		20
		Commissions paid, etc.		35		-
Shinhan Fund Partners		Commissions paid, etc.		733		867
Shinhan Venture Investment Co., Ltd.		Commissions paid, etc.		85		102
Shinhan EZ General Insurance, Ltd.		Fees and commission income		5		-
		Commissions paid, etc.		7		-
Shinhan AIM Private Real Estate Investment Trust No.22-A		Distribution income		4,454		3,641
Shinhan AIM Investment Finance Specialized Investment Trust No. 1		Distribution income		182		354
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		Distribution income		740		968
Shinhan AIM FoF Fund 6-A		Distribution income		36		671
Shinhan AIM Credit 4-B_Clover2		Distribution income		2,711		4,979
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		768		760
SHBNPP Green Energy Private Special Asset Investment Trust		Distribution income		826		1,031
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		556		636
SHBNPP Global Professional Investment Type Private Investment Trust No.12		Distribution income		285		400
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		Distribution income		2,305		2,943
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		Distribution income		1,700		1,875
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		Distribution income		2,458		2,376
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		Distribution income		1,096		1,098
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		Distribution income		1,249		3,758
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		Distribution income		1,170		1,205
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		182		189
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		Distribution income		1,363		1,446
SH Green New Deal Energy Special Asset Private Investment Trust No.3		Distribution income		1,550		1,896

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

Related party		Account		2025		2024
Entities under common control (continued)
Shinhan Global Green Energy Partnership Private Investment Trust No.1		Distribution income	W	90		-
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		Distribution income		622		604
SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd		Distribution income		-		48
IMM Long-term Solution Private Equity Fund (*2)		Distribution income		-		22,054
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		Distribution income		684		236
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		Distribution income		126		122
Shinhan One Flagship Real Estate Development Fund 1		Distribution income		1,122		304
Shinhan CIS III Private Investment Trust No.1		Distribution income		-		1,530
Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW)		Distribution income		39		-
Shinhan AIM Social Enterprise Investment Fund II		Distribution income		2		-
SH BGT Private Special Asset Investment Trust No.2		Distribution income		248		-
Associates of entities under common control
KIAMCO POWERLOAN TRUST 4TH		Distribution income		1,540		1,554
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (*2)		Distribution income		-		445
Midas Asset Global CRE Debt Private Fund No.6 (*2)		Distribution income		-		1,967
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		Distribution income		535		1,937
Shinhan AIM Private Fund of Fund 9-B		Distribution income		969		61
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		839		903
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		Distribution income		30		67
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		Distribution income		-		85
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		Distribution income		62		72
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		Distribution income		364		168
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		Distribution income		168		212
PCC Amberstone Private Equity Fund I		Distribution income		321		692
SHINHAN-NEO Core Industrial Technology Fund		Distribution income		-		53
Finflow		Other income (*3)		541		-
SBC PFV Co., Ltd		Provision for (reversal of) credit loss allowance		673		(59)
		Interest income		2,582		3,281
		Provision for unused credit commitments		599		-
Others
Shinhan Life Shining Foundation		Rental income		31		56
		Donations		31		2,546
Total income			W	109,425		101,546
Total expense			W	175,594		268,277

(*1) It is investment gains and losses from consolidated structured entities of the related party.

(*2) It has been removed from the related parties during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

(*3) Shares of Finflow were acquired through a contribution in kind during the year ended December 31, 2025, and a disposal gain of W541 million arising from the contribution in kind was included in non-operating income.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

		2025
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
The parent company
Shinhan Financial Group	W	-		-		-		-		-		-		378,307
Subsidiaries
Shinhan Financial Plus Co., Ltd.		-		-		-		-		15,000		-		-
Shinhan LifeCare Co., Ltd.		-		-		-		-		50,000		-		-
Shinhan AIM Private fund of funds Trust 7-A		-		-		-		-		120		1,397		-
Shinhan AIM Private fund of funds Trust 6-B		-		-		-		-		9,002		1,827		-
Shinhan AIM Private fund of funds Trust 5		-		-		-		-		-		39,012		-
KB Global Private Real Estate Debt Fund 23		-		-		-		-		1,260		13,253		-
KB Global Private Real Estate Debt Fund 21		-		-		-		-		13,886		-		-
Shinhan KKR Global Program REC Private Investment Trust		-		-		-		-		28,340		-		-
Shinhan KKR Global Program PEF Private Investment Trust		-		-		-		-		21,957		-		-
Shinhan KKR Global Program PDF Private Investment Trust		-		-		-		-		44,941		-		-
Shinhan LCP X Private Investment Trust No.4(H)		-		-		-		-		7,051		-		-
Pinestreet BDC Global Corporate FoF 38		-		-		-		-		285,091		-		-
Pinestreet IG Global Corporate FoF 39		-		-		-		-		96,580		-		-
Shinhan BDC OClC Private investment Trust No.1 (H)		-		-		-		-		283,751		-		-
Shinhan SLAMS TPA Private Fund		-		-		-		-		100,000		-		-
Shinhan Apollo SFG Private Investment Trust No.1(USD)		-		-		-		-		110,830		-		-
Shinhan Apollo ADS Private Investment Trust No.1(H)		-		-		-		-		48,775		-		-
Shinhan BDC OCIC Private Investment Trust No.2(H)		-		-		-		-		48,775		-		-
		-		-		-		-		1,165,359		55,489		-
Entities under common control
Shinhan Bank Co., Ltd. (*1)(*2)		-		789		-		-		4,972		-		-
Shinhan Asset Management Co., Ltd.		-		-		-		-		88		8,780		-
Shinhan Venture Investment Co., Ltd.		-		-		-		-		99		-		-
SHBNPP Green Energy Private Special Asset Investment Trust		-		-		-		-		-		1,247		-
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		-		-		-		-		-		1,793		-
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		-		-		-		-		-		-		-
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,759		-
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		344		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		-		-		-		-		6,291		976		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		-		-		-		-		191		-		-
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		-		-		-		-		2,095		-		-
Shinhan AIM Social Enterprise Investment Fund I		-		-		-		-		11		-		-
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		-		-		-		-		560		-		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		-		-		-		-		-		2,216		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2025
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Entities under common control (continued)
SHBNPP Global Professional Investment Type Private Investment Trust No.12	W	-		-		-		-		4,545		3,303		-
Shinhan AIM Private Real Estate Investment Trust No.15		-		-		-		-		652		-		-
Shinhan AIM FoF Fund 4		-		-		-		-		793		-		-
Shinhan AIM Social Enterprise Investment Fund II		-		-		-		-		31		430		-
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		-		-		-		-		-		2,040		-
Shinhan AIM Private Real Estate Investment Trust No.13		-		-		-		-		-		1,472		-
Shinhan AIM FoF Fund 6-A		-		-		-		-		11,347		32		-
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		-		-		-		-		2,294		381		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		-		-		-		-		2,902		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		1,328		-
Shinhan AIM Social Enterprise Investment Fund III		-		-		-		-		135		-		-
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		-		-		-		-		3,343		-
SH Green New Deal Energy Special Asset Private Investment Trust No.3		-		-		-		-		559		1,232		-
Shinhan AIM Private Real Estate Investment Trust No.22-A		-		-		-		-		13,033		547		-
One Shinhan Connect New Technology Investment Fund 1		-		-		-		-		300		1,800		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		-		-		-		172		-		-
SH Startup Venture Private Equity Trust No.5		-		-		-		-		2,000		871		-
Shinhan Greenway Corporate Investment FUND NO.1		-		-		-		-		260		-		-
One Shinhan Connect New Technology Investment Fund 2		-		-		-		-		80		-		-
Shinhan global flagship venture fund 1		-		-		-		-		5,200		-		-
SH BGT Private Special Asset Investment Trust No.2		-		-		-		-		1,705		-		-
Shinhan AIM Credit 4-B_Clover2		-		-		-		-		2,041		894		-
SH Venture Private Investment Trust No.6		-		-		-		-		6,000		-		-
Shinhan One Flagship Real Estate Development Fund 1		-		-		-		-		-		3,190		-
Shinhan hyper connect venture fund Ι		-		-		-		-		7,200		524		-
Shinhan hyper future’s venture fund 1		-		-		-		-		211		-		-
SH Special Situation Private Real Estate Feeder Investment Trust No.1		-		-		-		-		1,277		-		-
Shinhan CIS III Private Investment Trust No.1		-		-		-		-		7,679		-		-
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		-		-		-		-		-		1,754		-
SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1		-		-		-		-		12,448		-		-
Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW)		-		-		-		-		4,727		686		-
Shinhan SLAMS Co-Investment Private Investment Trust No.1		-		-		-		-		16,757		-		-
		-		789		-		-		115,753		43,844		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2025
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Associates of entities under common control
SBC PFV Co., Ltd	W	-		-		78,300		-		-		-		-
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		-		-		-		-		3,297		3,611		-
LB Scotland Amazon Fulfillment Center Fund 29		-		-		-		-		4,258		-		-
SHINHAN-NEO Market-Frontier 2nd Fund		-		-		-		-		-		423		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		-		-		-		-		-		797		-
SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		-		-		-		-		2		-		-
Shinhan AIM Private Real Estate Investment Trust No.2		-		-		-		-		-		1,219		-
PCC Amberstone Private Equity Fund I		-		-		-		-		-		3,800		-
KIAMCO POWERLOAN TRUST 4TH		-		-		-		-		-		326		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,683		-
IGIS Private Real Estate Investment Trust 517-1		-		-		-		-		1,320		-		-
IGIS Private Real Estate Investment Trust 562-1		-		-		-		-		10,000		-		-
Shinhan AIM Private Fund of Fund 9-B		-		-		-		-		4,338		-		-
Finflow (*3)		-		-		-		-		1,499		-		-
		-		-		78,300		-		24,714		11,859		-
	W	-		789		78,300		-		1,305,826		111,192		378,307

(*1) Interest expense of W78 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2025.

(*2) Fund transactions related to consolidated structured entities of related parties are included.

(*3) Acquisition through contributions in kind is included.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
The parent company
Shinhan Financial Group	W	-		-		-		-		-		-		315,342
Subsidiaries
Miraeasset Maps Global Infra Private Special Asset Trust 2		-		-		-		-		-		3,879		-
Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2 (*3)		-		-		-		-		-		643		-
Shinhan AIM Private fund of funds Trust 7-A		-		-		-		-		6,589		1,049		-
Shinhan AIM Private fund of funds Trust 6-B		-		-		-		-		13,937		1,193		-
Shinhan AIM Private fund of funds Trust 5		-		-		-		-		-		45,342		-
KB Global Private Real Estate Debt Fund 21		-		-		-		-		9,034		-		-
Shinhan KKR Global Program REC Private Investment Trust		-		-		-		-		-		17,443		-
Shinhan KKR Global Program PEF Private Investment Trust		-		-		-		-		29,300		-		-
Shinhan KKR Global Program PDF Private Investment Trust		-		-		-		-		49,691		-		-
Shinhan LCP X Private Investment Trust No.4(H)		-		-		-		-		9,496		-		-
		-		-		-		-		118,047		69,549		-
Entities under common control
Shinhan Bank Co., Ltd. (*1)(*2)		-		786		-		-		538		-		-
Shinhan Asset Management Co., Ltd.		-		-		-		-		152		5,640		-
SHBNPP Green Energy Private Special Asset Investment Trust		-		-		-		-		-		1,212		-
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		-		-		-		-		-		1,726		-
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,697		-
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		338		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		-		-		-		-		5,340		1,000		-
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		-		-		-		-		2,896		-		-
Shinhan AIM Social Enterprise Investment Fund I										-		22
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		-		-		-		-		2,453		-		-
One Shinhan Futures Fund 1		-		-		-		-		-		72		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		-		-		-		-		-		3,207		-
SHBNPP Global Professional Investment Type Private Investment Trust No.12		-		-		-		-		873		-		-
Shinhan AIM Private Real Estate Investment Trust No.15		-		-		-		-		783		290		-
Shinhan AIM FoF Fund 4		-		-		-		-		3,595		247		-
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		-		-		-		-		1,884		15,272		-
Shinhan AIM FoF Fund 6-A		-		-		-		-		11,528		259		-
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		-		-		-		-		1,239		118		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		-		-		-		1,000		2,235		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		1,280		-

49. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
Shinhan AIM Investment Finance Specialized Investment Trust No. 1	W									-		3,613
Shinhan AIM Social Enterprise Investment Fund III		-		-		-		-		60		-		-
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		-		-		-		4,000		-		-
SH Green New Deal Energy Special Asset Private Investment Trust No.3		-		-		-		-		3,241		275		-
Shinhan AIM Private Real Estate Investment Trust No.22-A		-		-		-		-		16,264		-		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		-		-		-		378		-		-
SH Startup Venture Private Equity Trust No.5		-		-		-		-		4,000		-		-
Shinhan Greenway Corporate Investment FUND NO.1		-		-		-		-		1,200		817		-
Shinhan global flagship venture fund 1		-		-		-		-		5,200		-		-
SH BGT Private Special Asset Investment Trust No.2		-		-		-		-		2,524		-		-
Shinhan AIM Credit 4-B_Clover2		-		-		-		-		2,644		23,374		-
SH Venture Private Investment Trust No.6		-		-		-		-		4,000		-		-
Shinhan One Flagship Real Estate Development Fund 1		-		-		-		-		8,000		-		-
Shinhan hyper connect venture fund Ι		-		-		-		-		7,200		-		-
Shinhan hyper future’s venture fund 1		-		-		-		-		564		-		-
SH Special Situation Private Real Estate Feeder Investment Trust No.1		-		-		-		-		4,064		-		-
Shinhan CIS III Private Investment Trust No.1		-		-		-		-		10,725		4,073		-
IMM Long-term Solution Private Equity Fund (*3)		-		-		-		-		-		34,981		-
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		-		-		-		-		30,000		-		-
		-		786		-		-		136,345		101,748		-
Associates of entities under common control
SBC PFV Co., Ltd		-		-		95,000		95,000		1,575		-		-
Midas Asset Global CRE Debt Private Fund No.6 (*3)		-		-		-		-		-		27,055		-
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		-		-		-		-		1,271		399		-
LB Scotland Amazon Fulfillment Center Fund 29		-		-		-		-		2,535		-
SHINHAN-NEO Core Industrial Technology Fund		-		-		-		-		-		1,068
SHINHAN-NEO Market-Frontier 2nd Fund		-		-		-		-		450		1,026		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		-		-		-		-		-		2,238		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2										-		197
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (*3)		-		-		-		-		-		12,194		-
Shinhan AIM Private Real Estate Investment Trust No.1		-		-		-		-		2,613		-		-
Shinhan AIM Private Real Estate Investment Trust No.2		-		-		-		-		1,760		-		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		-		-		-		-		-		38		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

		2024
		Borrowing of funds				Loan				Investment in cash				Dividend paid
		Borrowing		Redemption		Execution		Collection		Investment		Collection
PCC Amberstone Private Equity Fund I	W	-		-		-		-		247		2,712		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		-		-		1,635		-
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		-		-		-		-		3,516		-		-
IGIS Private Real Estate Investment Trust 517-1		-		-		-		-		2,200		-		-
Shinhan AIM Private Fund of Fund 9-B		-		-		-		-		6,562		-		-
Songpa Biz-Cluster PFV Co.,Ltd.		-		-		-		-		2,500		-		-
		-		-		95,000		95,000		25,229		48,562		-
	W	-		786		95,000		95,000		279,621		219,859		315,342

(*1) Interest expense of W90 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2024.

(*2) Fund transactions related to consolidated structured entities of related parties are included.

(*3) It has been removed from the related party during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(e) Unused capital commitments and loan commitment with related parties as of December 31, 2025 and 2024 are as follows:

Related Party			Commitment		2025			2024
	Subsidiaries
	Shinhan AIM Private fund of funds Trust 7-A		Capital commitment	W	7,006			9,297
	Shinhan AIM Private fund of funds Trust 6-B		Capital commitment		7,588			14,003
	Shinhan AIM Private fund of funds Trust 5		Capital commitment		26,503			29,333
	KB Global Private Real Estate Debt Fund 21		Capital commitment		19,650			27,089
	Shinhan KKR Global Program REC Private Investment Trust		Capital commitment		13,488			41,160
	Shinhan KKR Global Program PEF Private Investment Trust		Capital commitment		29,272			51,156
	Shinhan KKR Global Program PDF Private Investment Trust		Capital commitment		113,357			159,348
	Shinhan LCP X Private Investment Trust No.4(H)		Capital commitment		27,614			32,367
					244,478			363,753
	Entities under common control
	Shinhan Bank Co., Ltd. (*)		Capital commitment		871			6,458
	Shinhan Venture Investment Co., Ltd. (*)		Capital commitment		891			-
	Shinhan AIM FoF Fund 4		Capital commitment		295			268
	SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		Capital commitment		8,018			7,271
	Shinhan AIM FoF Fund 6-A		Capital commitment		19,754			30,802
	Shinhan AIM Social Enterprise Investment Fund III		Capital commitment		-			234
	SH Green New Deal Energy Special Asset Private Investment Trust No.3		Capital commitment		6,969			7,528
	Shinhan AIM Private Real Estate Investment Trust No.22-A		Capital commitment		821			7,271
	SH Startup Venture Private Equity Trust No.5		Capital commitment		2,000			4,000
	Shinhan Greenway Corporate Investment FUND NO.1		Capital commitment		620			880
	Shinhan global flagship venture fund 1		Capital commitment		5,200			10,400
	SH BGT Private Special Asset Investment Trust No.2		Capital commitment		11,195			12,871
	SH Venture Private Investment Trust No.6		Capital commitment		6,000			12,000
	Shinhan One Flagship Real Estate Development Fund 1		Capital commitment		-			5,745
	Shinhan hyper connect venture fund Ι		Capital commitment		15,520			22,720
	Shinhan hyper future’s venture fund 1		Capital commitment		-			211
	SH Special Situation Private Real Estate Feeder Investment Trust No.1		Capital commitment		2,519			3,796
	Shinhan CIS III Private Investment Trust No.1		Capital commitment		10,281			18,840
	SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1		Capital commitment		30,144			-
	Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW)		Capital commitment		52,804			-
	Shinhan SLAMS Co-Investment Private Investment Trust No.1		Capital commitment		12,604			-
					186,506			151,295
	Associates of entities under common control
	SBC PFV Co., Ltd		Loan commitment		171,700			-
	SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		Capital commitment		3,878			3,880
	Shinhan JigaeNamsan Road Private Special Asset Investment Trust		Capital commitment		182			182
	IGIS Private Real Estate Investment Trust 517-1		Capital commitment		880			2,200
	Shinhan AIM Private Fund of Fund 9-B		Capital commitment		2,914			6,067
					179,554			12,329
				W	610,538			527,377

(*) It is an unused capital commitment related to consolidated structured entities of the related party.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

49. Related parties (continued)

(f) Unsettled commitments of derivatives with related parties as of December 31, 2025 and 2024 are as follows:

Related Party		Type of Derivatives		2025		2024
Entities under common control
Shinhan Bank Co., Ltd.		Currency swap	W	633,761		719,051
		Currency forward		597,642		455,038
		Interest rate forward		144,447		20,010
Shinhan Securities Co., Ltd.		Equity options		29,587		131,774
		Interest rate forward		557,964		557,964
			W	1,963,401		1,883,837

(g) Details of bond transactions with a key related party for the years ended December 31, 2025 and 2024 are as follows:

Related Party		2025				2024
		Buy		Sell		Buy		Sell
Entities under common control
Shinhan Securities Co., Ltd.	W	520,060		311,108		862,553		524,845

(h) Details of acquisitions and disposal of assets with key related parties for the years ended December 31, 2025 and 2024 are as follows:

Related Party		Account		2025						2024
						Acquisition		Disposal				Acquisition			Disposal
Subsidiary
Shinhan Financial Plus Co., Ltd.		Right-of-use assets	W	-		-				147				119
Entities under common control
Shinhan Bank Co., Ltd.		Right-of-use assets		35			-				221			28
Shinhan DS		Equipment		288		-				148				-
		Development costs		634		-				981				-
		Software		310		-				510				-
		Other intangible assets		5,685		615				419				464
		Other property and equipment		186		-				139				-
				7,138		615				2,418				492
			W	7,138		615				2,565				611

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won, except per share data)

49. Related parties (continued)

(i) Details of collateral transactions with related parties

i) The collateral provided by the Company to related parties as of December 31, 2025 and 2024 are as follows:

Provided to		Collateral assets		Collateral value(*)
				2025		2024
Entities under common control
Shinhan Bank Co., Ltd.		Government bonds	W	146,627		115,966
Shinhan Securities Co., Ltd.		Bonds, Stocks and beneficiary certificates		30,537		-
			W	177,164		115,966

(*) Collateral value is equivalent to the carrying amount of the collateral assets.

ii) The collateral provided by a related party to the Company as of December 31, 2025 and 2024 are as follows:

Provided by		Collateral asset		Collateral value
				2025		2024
Subsidiary
Shinhan Financial Plus Co., Ltd.		Deposits	W	30		30
Entities under common control
Shinhan Securities Co., Ltd.		Securities		-		12,501
Shinhan Card Co., Ltd.		Deposits		10		10
			W	40		12,541

(j) Details of key management personnel compensation for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Short-term employee benefits	W	1,079		1,219
Share-based payment transactions		1,727		848
Retirement benefits		40		40
	W	2,846		2,107

(k) As of December 31, 2025, the amount of credit card allowance commitments provided by Shinhan Card Co., Ltd., a related party, is W7,500 million.

50. Earnings per share

Earnings per share for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Profit for the year	W	515,916		533,681
Less: Interest to hybrid bonds		6,633		10,800
Net profit attributable to common shares	W	509,283		522,881
Weighted average number of common shares<br><br>outstanding		115,654,859 shares		115,654,859 shares
Basic earnings per share in won (*)	W	4,403		4,521

(*) Because the Company does not have any potential dilutive common shares and stock options do not have dilutive effect, the diluted earnings per share are the same as the basic earnings per share for the years ended December 31, 2025 and 2024.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

51. Statements of cash flows

(a) Adjustments to revenue and expenses for the year ended December 31, 2025 and 2024 are as follows:

		2025		2024
Interest income	W	(1,464,548)		(1,512,259)
Interest expense		66,848		78,142
Dividend income		(37,769)		(32,510)
Income taxes		280,621		201,927
Insurance revenue		(3,071,866)		(2,847,305)
Reinsurance revenue		(164,353)		(52,963)
Insurance finance income from insurance contracts issued		(204,421)		(397,712)
Insurance finance income from reinsurance contracts held		(68,751)		(24,101)
Insurance service expenses		2,216,949		2,010,662
Reinsurance service expenses		150,275		57,843
Insurance finance expenses from insurance contracts issued		2,990,559		2,103,148
Insurance finance expenses from reinsurance contracts held		57,872		24,045
Gains on financial assets at fair value through profit or loss		(1,345,644)		(663,394)
Losses on financial assets at fair value through profit or loss		268,442		629,039
Gains on disposal of securities at fair value through other comprehensive income		(81,508)		(79,735)
Losses on disposal of securities measured at fair value through other comprehensive income		64,118		96,475
Gains on disposal of securities at amortized cost		-		(22,284)
Losses on disposal of securities at amortized cost		-		565
Provisions for credit losses		4,994		6,696
Gains related to derivatives		(79,833)		(6,677)
Losses related to derivatives		265,230		520,521
Gain on foreign currency translation		(231,851)		(579,956)
Loss on foreign currency translation		100,160		171
Gain (loss) on foreign currency transaction		3,481		(17,421)
Amortization of right-of-use assets		34,372		31,676
Depreciation		17,473		17,984
Amortization of intangible assets		74,718		73,124
Employee costs		15,916		11,036
Rental income		(29)		(36)
Losses on provisions		39,444		114
Non-operating income		(1,424)		(468)
Non-operating expense		1,820		2,776
	W	(98,705)		(370,877)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

51. Statements of cash flows (continued)

(b) Changes in assets and liabilities from operating activities for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Due from banks at amortized cost	W	70,197		(60,966)
Financial assets at fair value through profit or loss		411,196		(77,066)
Loans at amortized cost		550,388		808,329
Other financial assets		(11,464)		51,368
Other assets		(1,603)		2,750
Net defined benefit liabilities		(107)		(5,990)
Insurance contract liabilities		(669,776)		(1,175,687)
Reinsurance contract liabilities		(614,999)		(46,839)
Investment contract liabilities		170,080		(559,350)
Provisions		(8,181)		(4,648)
Derivative liabilities		4,530		(1,100)
Other financial liabilities		194,749		223,893
Other liabilities		(3,091)		(1,275)
	W	91,919		(846,581)

(c) Cash and cash equivalents reported in the accompanying separate statements of cash flows as of December 31, 2025 and 2024 are as follows:

		2025		2024
Cash and due from banks at amortized cost	W	2,286,855		1,528,871
Adjustments:
Available deposits of which expiration date exceeds<br><br>3 months from the acquisition date		(598,026)		(677,950)
Restricted deposit		(84,136)		(73,717)
	W	1,604,693		777,204

(d) The Company has prepared its statements of cash flows using the indirect method, and the significant non-cash activities for the years ended December 31, 2025 and 2024 are as follows:

		2025		2024
Changes in gains(losses) on valuation of securities at fair<br><br>value through other comprehensive income	W	(2,073,230)		994,881
Write-off of loans at amortized costs		13,075		10,664
Recognition of right-of-use assets and lease liabilities		23,022		15,291
Additional provision for restoration		2,309		277
Interests payable for hybrid bonds		-		1,497

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

51. Statements of cash flows (continued)

(e) Changes in liabilities resulting from financing activities for the years ended December 31, 2025 and 2024 are as

follows:

		2025 (*1)
		Debentures (*2)		Lease liabilities		Total
Beginning balance	W	299,487		77,399		376,886
Changes in cash flows		498,594		(33,088)		465,506
Amortization		311		1,999		2,310
Others		-		20,028		20,028
Ending balance	W	798,392		66,338		864,730

(*1) Changes of other financial liabilities are not included.

(*2) Changes of borrowings are included.

		2024 (*1)
		Debentures (*2)		Lease liabilities		Total
Beginning balance	W	299,331		91,566		390,897
Changes in cash flows		-		(31,149)		(31,149)
Amortization		156		2,354		2,510
Others		-		14,628		14,628
Ending balance	W	299,487		77,399		376,886

(*1) Changes of other financial liabilities are not included.

(*2) Changes of borrowings are included.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

52. Effects of changes in accounting policies

K-IFRS No. 1117 requires that, for dividends arising from participating insurance contracts, liabilities be measured using estimates of the related cash flows and discount rates that reflect the assumptions and risks associated with those cash flows.

Specifically, in measuring insurance liabilities, the Company is required to reflect, without undue cost or effort, reasonable and supportable information available faithfully representing the facts without incorporating the Company’s own plans or intentions. In addition, the effects of enacted or substantively enacted laws or regulations are reflected in the measurement of insurance liabilities only when such enactment or amendment is substantively certain, and neutral estimates that are free from bias are required to be used in estimating the related cash flows.

Accordingly, insurers do not derive the asset return scenarios used in measuring insurance liabilities (best estimate liabilities, the remaining coverage component) based on item-by-item disposal plans for assets currently held and managed. Instead, such scenarios are determined based on risk-free interest rates that are consistent with the discount rates prescribed under supervisory regulations for discounting the present value of fulfilment cash flows.

In response to these requirements, upon the adoption of K-IFRS No. 1117 in 2023, the Company estimated future dividend cash flows for participating insurance contracts by neutrally reflecting reasonable and supportable information, including the Company’s experience statistics such as historical dividend amounts arising from the relevant contracts, as well as management’s asset management plans and risk management strategies. In addition, the Company determined whether policyholder dividends would arise by considering expected gains or losses on the disposal of assets only in cases where specific disposal plans for such assets had been finalized by management, such as when assets were disposed of or when concrete disposal plans had been approved by the board of directors. Where policyholder dividends were determined to arise, the related cash flows were reflected in the measurement of insurance liabilities.

As a result of measuring insurance liabilities related to policyholder dividends arising from expected future cash flows of participating insurance contracts in accordance with the requirements of K-IFRS No. 1117, there was no insurance liability required to be recognized by the Company.

The Company concluded that, if dividend payment obligations related to participating insurance contracts were measured in accordance with the requirements of K-IFRS No. 1117 from 2023 when K-IFRS No. 1117 was adopted, such measurement would conflict with the “objective of general purpose financial reporting” as set out in the Conceptual Framework for Financial Reporting and would constitute the “extremely rare circumstances in which compliance with a requirement would be so misleading” as specified in paragraph 19 of K-IFRS No. 1001.

Accordingly, the Company had measured and recognized as liabilities the expected future comprehensive obligations to policyholders (policyholder dividends) arising from unrealized gains or losses on assets as of the end of the reporting period, by applying the methodology prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

52. Effects of changes in accounting policies (continued)

Meanwhile, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulation on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by the Company are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

In December 2025, the Financial Supervisory Service, through its response titled “Inquiry Response on the Accounting Treatment of Policyholders’ Equity Adjustments (Accounting Departure) by Life Insurance Companies,” stated that it is difficult to conclusively determine that applying K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts of life insurance companies would be misleading to users of financial statements. The Financial Supervisory Service further noted that, as K-IFRS No. 1117 has passed its transition guidance period and has become stabilized, there is a need to resolve unnecessary controversies arising from the continued application of accounting departures, and that some views suggest that, if domestic life insurance companies continue to apply accounting departures, Korea may not be regarded as a jurisdiction that has fully adopted IFRS. Taking these considerations into account, the Financial Supervisory Service concluded that it is appropriate to discontinue the application of accounting departures at the current point in time.

Furthermore, the Financial Supervisory Service responded that, even if management were to conclude that complying with K-IFRS No. 1117 with respect to dividend payment obligations related to participating insurance contracts would conflict with the “objective of general purpose financial reporting” as set out in the Conceptual Framework and could therefore be misleading to users of financial statements, it would nevertheless be difficult, from a supervisory perspective, to continue to permit the application of accounting departures.

After comprehensively considering the circumstances described above, the Company determined that, even if compliance with the requirements of K-IFRS No. 1117 for participating insurance contracts could potentially result in an understatement of insurance liabilities compared to prior-period accounting practices and thereby give rise to a possibility of being misleading to users of financial statements due to a conflict with the objective of general purpose financial reporting, the supervisory framework no longer permits the Company’s previous accounting treatment that had applied the requirements of K-IFRS No. 1117 differently. Accordingly, the Company changed its accounting policy to measure insurance liabilities in compliance with the requirements of K-IFRS No. 1117 from the end of the current period.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2025 and 2024

(In millions of Korean won)

52. Effects of changes in accounting policies (continued)

In addition, through the above-mentioned response, the Financial Supervisory Service stated that, where a life insurance company changes the accounting treatment of dividend payment obligations related to participating insurance contracts from an accounting departure (policyholders’ equity adjustments) to the application of K-IFRS No. 1117, such change should be accounted for as a change in accounting policy in accordance with K-IFRS No. 1008. Accordingly, the Company applied the effects of the change retrospectively.

As of December 31, 2025, policyholders’ equity adjustments calculated under the previous method prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business amounted to W1,094 million. In accordance with K-IFRS No. 1008 Changes in Accounting Policies, the effects of the retrospective restatement of prior reporting period resulting from the application of K-IFRS No. 1117 are as follows:

		As of December 31, 2024
		Assets		Liabilities		Equity		Profit for the year		Total comprehensive income(loss) for the year
Before the Change	W	59,617,796		52,555,228		7,062,568		533,681		(1,057,839)
Adjustments:
Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts
Policyholders’ equity adjustments		-		362		(362)		-		664
Income tax effect		-		(96)		96		-		(175)
After the Change	W	59,617,796		52,555,494		7,062,302		533,681		(1,057,350)
		As of January 1, 2024
---	---	---	---	---	---	---
		Assets		Liabilities		Equity
Before the Change	W	58,508,315		50,061,766		8,446,549
Adjustments:
Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts
Policyholders’ equity adjustments		-		1,025		(1,025)
Income tax effect		-		(271)		271
After the Change	W	58,508,315		50,062,520		8,445,795

Independent Auditors’ Review Report on Internal Control over Financial Reporting

Based on a report originally issued in Korean

To the Chief Executive Officer of

Shinhan Life Insurance Co., Ltd.

We have reviewed the accompanying ICFR Operating Status Report by CEO and IAM (the “ICFR Report”) of Shinhan Life Insurance Co., Ltd. (the “Company”) as of December 31, 2025. The Company's management is responsible for designing and operating effective ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review management's assessment and issue a report based on our review. In the accompanying report of management’s assessment of ICFR, it is stated that: “Based on the assessment of the ICFR operating status report by Company’s CEO and IAM, ICFR has been effectively designed and is operating as of December 31, 2025, in all material respects, in accordance with the Conceptual Framework for Designing and Operating Internal Control over Financial Reporting (the “Conceptual Framework”).”

We conducted our review in accordance with ICFR Review Standards issued by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as to whether the Company’s ICFR Report is free of material misstatement. Our review consists principally of obtaining an understanding of the Company’s ICFR, inquiries of company personnel about the details of the report, and tracing to related documents we considered necessary in the circumstances.

A company's ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards (“K-IFRS”). A company's ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements in the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our review of the Company’s ICFR Report, nothing has come to our attention that causes us to believe that the ICFR Report is not prepared in all material respects, in accordance with the Standard for Evaluation and Reporting of Internal Control over Financial Reporting.

This report applies to the Company’s ICFR in existence as of December 31, 2025. We did not review the Company’s ICFR subsequent to December 31, 2025. This report has been prepared for Korean regulatory purposes, pursuant to the Act on External Audit of Stock Companies, Etc. and may not be appropriate for other purposes or for other users.

March 3, 2026

Notice to Readers<br><br>This report is annexed in relation to the audit of the financial statements as of and for the year ended December 31, 2025.