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 2025

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 4, 2025, Shinhan Financial Group disclosed audit reports of Shinhan Life, its wholly-owned subsidiary, for the fiscal year 2024 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, 2024

Exhibit 99.2 : Independent Separate Auditor’s Report of Shinhan Life as of December 31, 2024

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 04, 2025				By:		/s/ CHUN Sang-yung
				Name: CHUN Sang-yung
				Title: Chief Financial Officer

EX-99.1

Exhibit 99.1 Consolidated Auditor’s Report of Shinhan Life

SHINHAN LIFE INSURANCE CO., LTD.

AND SUBSIDIARIES

Consolidated Financial Statements

December 31, 2024 and 2023

(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, 2024 and 2023

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, 2024 and 2023, 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, 2024 and 2023, 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 4, 2025

Seoul, Korea

This report is effective as of March 4, 2025, 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, 2024 and 2023

(In millions of Korean won)		Note		December 31,<br><br>2024			December 31, 2023
Assets
Cash and due from banks at amortized cost		5,8,9,11,24,51,53	W	1,695,328			1,838,006
Financial assets at fair value through profit or loss		5,8,9,12,24,51		11,233,117			11,127,310
Securities at fair value through<br><br>other comprehensive income		5,8,9,13,24,51		38,023,907			35,674,980
Securities at amortized cost		5,8,9,14,24		3,937,616			4,348,023
Investments in associates		15		27,462			25,956
Loans and receivables at amortized cost		5,8,9,16,51		4,031,731			4,775,933
Reinsurance contract assets		6,26		107,668			62,815
Right-of-use assets		17,51		90,242			97,606
Property and equipment		18,51		108,775			90,359
Intangible assets		19,51		232,736			257,771
Derivative assets		5,8,9,22,51		117,522			122,465
Current tax assets		49,51		82,811			71,169
Deferred tax assets		49		1,680			88
Investment property		21,24		14,185			14,397
Net defined benefit assets		32		16,334			34,796
Other assets		23		122,154			99,671
Total assets			W	59,843,268			58,641,345

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Financial Position (Continued)

As of December 31, 2024 and 2023

(In millions of Korean won)		Note		December 31, 2024		December 31, 2023
Liabilities
Insurance contract liabilities		6,25	W	48,420,988		45,533,987
Reinsurance contract liabilities		6,26		98,058		93,120
Policyholders’ equity adjustments		28		(362)		(1,025)
Investment contract liabilities		5,8,9,27,51		1,332,468		1,831,826
Derivative liabilities		5,8,9,22,51		556,370		240,771
Borrowings		5,8,9,29,51		23,543		17,835
Debentures		5,8,9,30		299,487		299,331
Other financial liabilities		5,8,9,31,36,51		499,809		267,901
Lease liabilities		5,8,9,17,51		93,923		101,294
Net defined benefit liabilities		32		1,307		2,336
Provisions		33		75,720		79,572
Current tax liabilities		49,51		4,248		55
Deferred tax liabilities		49		1,268,786		1,645,360
Other liabilities		34		127,956		105,848
Total liabilities				52,802,301		50,218,211
Equity
Capital stocks		35		578,274		578,274
Hybrid bonds		35		299,452		299,452
Capital surplus		35		820,012		820,012
Capital adjustments		35		1,461		1,461
Accumulated other comprehensive income (loss)		35		(1,459,647)		124,738
Retained earnings		35		6,801,415		6,599,197
Total equity				7,040,967		8,423,134
Total liabilities and equity			W	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, 2024 and 2023

(In millions of Korean won, except per share data)		Note		2024			2023
Insurance revenue		25,37	W	2,857,315			2,641,027
Reinsurance revenue		26,38		52,963			40,360
Insurance service expenses		25,37,40,51		2,084,961			1,813,791
Reinsurance service expenses		26,38		57,843			71,631
Other operating expenses		40		114,718			141,809
Insurance service result				652,756			654,156
Insurance finance income and investment income:
Insurance finance income from insurance contracts issued		25,39		397,712			364,541
Insurance finance income from reinsurance contracts held		26,39		24,101			19,095
Interest income		9,42,51		1,546,978			1,564,494
Gains on financial assets at fair value<br><br>through profit or loss		9,12		991,852			1,173,532
Gains on disposal of securities at fair value through other comprehensive income		9,13		79,735			54,256
Gains on disposal of securities at amortized cost		9,14		22,284			-
Gains on disposal of loans at amortized cost		9,12		103			48
Reversal of credit loss allowance		43,51		10,117			9,641
Gains on foreign currency transaction		44		714,920			177,491
Gains on derivatives		22,51		66,441			153,712
Dividend income		9,46		32,510			30,483
Fees and commission income		45,51		12,273			12,220
Other investment income		47,51		235,070			210,815
				4,134,096			3,770,328
Insurance finance expenses and investment expenses:
Insurance finance expenses from insurance contracts issued		25,39		2,103,212			2,500,731
Insurance finance expenses from reinsurance contracts held		26,39		24,045			19,959
Interest expenses		9,42,51		78,726			147,595
Losses on financial assets at fair value<br><br>through profit or loss		9,12,51		630,361			352,776
Losses on disposal of securities measured at fair value through other comprehensive income		9,13		96,475			55,895
Losses on disposal of securities at amortized cost		9,14		565			-
Losses on disposal of loans at amortized cost		9		426			198
Provision for credit loss allowance		43,51		16,347			25,813
Losses on foreign currency transaction		44		12,497			47,851
Losses on derivatives		22,51		752,884			307,698
Investment administrative expenses		41,51		19,649			18,203
Other investment expenses		47,51		326,583			288,708
				4,061,770			3,765,427
Net finance result			W	72,326			4,901

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Continued)

For the years ended December 31, 2024 and 2023

(In millions of Korean won, except per share data)		Note		2024		2023
Operating profit			W	725,082		659,057
Non-operating expenses		48		(2,747)		(19,202)
Equity in net income (loss) of associated companies		15		(893)		(302)
Profit before income taxes				721,442		639,553
Income tax expense		49		193,041		167,158
Profit for the year				528,401		472,395
Other comprehensive income (loss) for the year, 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				729,929		2,087,606
Foreign currency translation adjustments for foreign operations				7,254		(738)
Gains (losses) on valuation of derivatives held for cash flow hedges				45,219		105,477
Net finance income (expenses) from insurance contracts issued				(2,353,449)		(2,162,910)
Net finance income (expenses) from reinsurance contracts held				(1,544)		(20,765)
				(1,572,591)		8,670
Items that will not be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				848		3,896
Remeasurements of defined benefit liabilities				(12,683)		(9,305)
				(11,835)		(5,409)
Total other comprehensive income (loss), net of income tax		13,22,35		(1,584,426)		3,261
Total comprehensive income (loss) for the year			W	(1,056,025)		475,656
Profit attributable to:
Equity holders of Shinhan Life Insurance Co., Ltd.				528,401		472,395
			W	528,401		472,395
Total comprehensive income (loss) attributable to:
Equity holders of Shinhan Life Insurance Co., Ltd.				(1,056,025)		475,656
			W	(1,056,025)		475,656
Earnings per share:
Basic earnings per share and diluted earnings per share in won		52	W	4,475		3,991

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, 2024 and 2023

(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, 2023		W	578,274		299,452		820,012		1,464		121,477		6,299,860		8,120,539
Total comprehensive income for the year:
Profit for the year			-		-		-		-		-		472,395		472,395
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income			-		-		-		-		2,091,502		-		2,091,502
Foreign currency translation adjustments for foreign operations			-		-		-		-		(738)		-		(738)
Gains on valuation of derivatives intended for cash flow hedges			-		-		-		-		105,477		-		105,477
Net finance expenses from insurance contracts issued			-		-		-		-		(2,162,910)		-		(2,162,910)
Net finance expenses from reinsurance contracts held			-		-		-		-		(20,765)		-		(20,765)
Remeasurement of defined benefit liabilities			-		-		-		-		(9,305)		-		(9,305)
Total other comprehensive income			-		-		-		-		3,261		-		3,261
Total comprehensive income(loss)											3,261		472,395		475,656
Other changes in equity
Dividends			-		-		-		-		-		(162,257)		(162,257)
Share-based payment			-		-		-		(3)		-		-		(3)
Interest expenses on hybrid bonds			-		-		-		-		-		(10,801)		(10,801)
Balance at December 31, 2023		W	578,274		299,452		820,012		1,461		124,738		6,599,197		8,423,134

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity (Continued)

For the years ended December 31, 2024 and 2023

(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	W	578,274		299,452		820,012		1,461		124,738		6,599,197		8,423,134
Total comprehensive income for the year:
Profit for the year		-		-		-		-		-		528,401		528,401
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income		-		-		-		-		730,777		-		730,777
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		-		-		-		-		(1,584,426)		-		(1,584,426)
										(1,584,426)		528,401		(1,056,025)
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 OCI to<br><br>Retained Earnings		-		-		-		-		41		(41)		-
Balance at December 31, 2024	W	578,274		299,452		820,012		1,461		(1,459,647)		6,801,415		7,040,967

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, 2024 and 2023

(In millions of Korean won)		2024		2023
Cash flows from operating activities
Profit for the year	W	528,401		472,395
Adjustment for profit or loss (Note 53)		(386,856)		(291,067)
Changes in assets and liabilities (Note 53)		(827,321)		(707,446)
Income tax refund (paid)		(11,807)		24,597
Interest received		1,049,194		1,048,077
Interest paid		(18,531)		(33,496)
Dividends received		37,647		40,321
Net cash inflow from operating activities		370,727		553,381
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss		1,812,962		507,025
Acquisition of financial assets at fair value through profit or loss		(1,629,576)		(561,784)
Disposal of securities at fair value<br><br>through other comprehensive income		4,165,220		3,751,873
Acquisition of securities at fair value through<br><br>other comprehensive income		(4,741,638)		(3,349,281)
Disposal of securities at amortized cost		407,544		-
Acquisition of securities at amortized cost		(5,460)		-
Acquisition of investments in associates		(2,400)		(25,200)
Cash inflows from hedging activities		4,326		15,436
Cash outflows from hedging activities		(114,772)		(70,720)
Disposal of property and equipment		162		838
Acquisition of property and equipment		(42,209)		(26,809)
Disposal of intangible assets		51		665
Acquisition of intangible assets		(54,963)		(40,908)
Decrease in receivables at amortized cost		8,887		23,996
Increase in receivables at amortized cost		(7,765)		(5,984)
Net cash inflow (outflow) from investing activities		(199,631)		219,147
Cash flows from financing activities
Increase in non-controlling interests		3,909		16,488
Repayment of debentures		-		(656,645)
Issuance of debentures		-		299,246
Decrease in borrowings		-		(34,100)
Increase in borrowings		-		24,100
Decrease in other financial liabilities		(502)		(1,501)
Increase in other financial liabilities		983		861
Decrease in lease liabilities		(36,043)		(37,920)
Dividends paid		(315,343)		(162,257)
Hybrid bond dividends paid		(10,800)		(10,801)
Net cash outflow from financing activities	W	(357,796)		(562,529)
Net increase (decrease) in cash and cash equivalents		(186,700)		209,999
Changes in cash and cash equivalents due to<br><br>foreign currency translation		2,622		558
Cash and cash equivalents at the beginning of the period		1,014,077		803,520
Cash and cash equivalents at the end of the period	W	829,999		1,014,077

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, 2024 and 2023

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 203 domestic branches, and Shinhan Financial Group 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, 2024 and 2023, are as follows:

				Closing Month		Industry		Ownership (%)
Subsidiaries		Location								December 31,<br><br>2024		December 31, 2023
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 CubeOn Co., Ltd. has changed its name to Shinhan LifeCare Co., Ltd. during the year ended December 31, 2023.

(c) Consolidated structured entities

Consolidated structured entities as of December 31, 2024 and 2023, are as follows:

Structured entities		Location		Closing Month		Ownership (%)
									December 31,<br><br>2024		December 31, 2023
Mirae Asset Maps Global Infra Private Special Asset Trust 2		Korea		December		95.89		95.89
Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2(*)		Korea		December		-		99.55
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

(*) It has been 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, 2024 and 2023

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, 2025, and the consolidated financial statements will be submitted for the final approval to the stockholder’s meeting on March 24, 2025.

(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, 2024 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, 2024 and 2023

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, 2024.

i) Amendments to Korean IFRS 1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current (Amendment)

The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by the likelihood or the management’s expectation about whether an entity will exercise its right to defer settlement of a liability. The amendments also introduce a definition of ‘settlement’ to make clear that settlement includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle the liability by the transfer of the Group’s own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. The adoption of the amendments did not have a material impact on the Group’s consolidated financial statements.

ii) Amendments to Korean IFRS 1007 ‘Statement of Cash Flows and Korean IFRS 1107 ‘Financial Instruments: Disclosures’ – Supplier Finance Arrangements (Amendment)

The amendments require an entity to disclose information about the effects of its supplier finance arrangements on the entity’s liabilities and cash flows and the entity’s exposure to concentration of liquidity risk. 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, 2024 and 2023

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, 2024, the same accounting policies were applied by the Group in its consolidated financial statements as of December 31, 2024 and 2023. 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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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 and 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 and loss, and changes in the cash flow of a derivative hedging instrument designated as a cash flow hedge are recognized 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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023 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, 2024 and 2023

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, 2024, 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, 2024 and 2023

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.

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, 2024 and 2023

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 premiums 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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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, 2024 and 2023

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 separately presents insurance profit and loss, which consists of insurance operating revenue and insurance operating expenses, and investment profit and loss, which consists of investment operating revenue and investment operating expenses. This allows information users to identify the sources of profit and loss. The Group has chosen an accounting policy to classify changes in the risk adjustment for non-financial risk into insurance service results (insurance profit and loss) and insurance financial components (investment profit and loss).

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 year 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, 2024 and 2023

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) The adoption of the Financial Supervisory Service’s guidelines for the application of K-IFRS 1117

The Financial Supervisory Service issued the actuarial assumption guidelines for the application of K-IFRS 1117. The Group has incorporated these guidelines into the financial statements, particularly regarding actuarial assumptions for zero/low-surrender-value insurance contracts, recognition criteria for contractual service margin, and actuarial assumptions for medical insurance. In addition, the Group has incorporated these guidelines into the current financial statements, particularly regarding actuarial assumptions for zero/low-surrender-value insurance contracts and whole life insurance with short premium payment term.

(u) 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, 2024 and 2023

3. Material accounting policies (continued)

(v) 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 1021 ‘The Effects of Changes in Foreign Exchange Rates’ amended – 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. These amendments shall be applied prospectively for annual reporting periods beginning on or after January 1, 2025, with earlier application permitted. The Group anticipates that the application of the amendments will not have a significant impact on the consolidated financial statements in the future periods. There will be no material impact on the consolidated financial statements from these amendments.

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

The amendments clarify the conditions related to the discharge of a financial liability before the settlement date when settling such financial liabilities using an electronic payment system. They further specify an interest feature, a contingent feature, financial assets with non-recourse features and contractually linked instruments which should be considered in assessing whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. Furthermore, the amendments include additional disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and contractual terms that could change the timing or amount of contractual cash flows. The amendments are applied retrospectively 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.

3. 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

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

4. Summary of financial information

For the year ended December 31, 2024, the Group recognized (i) operating profit of W725,082 million, consisting of W652,756 million of insurance service result and W72,326 million of net finance result; (ii) W3,640 million of non-operating expense and equity in net loss of associated companies, in total; and (iii) W528,401 million of profit for the year.

The operating profit increased by W66,025 million, insurance service result decreased by W1,400 million, net finance result increased by W67,425 million, and profit for the year increased by W56,006 million as compared to the year ended December 31, 2023.

Insurance service result for the year ended December 31, 2024 includes W732,882 million of contractual service margin recognized in profit or loss for services provided; and W 20,800 million and W236 million of experience adjustments on claims and operating expenses, respectively.

The insurance service result decreased by W1,400 million as compared to the year ended December 31, 2023 mainly due to decreases in experience adjustments on claims and operating expenses, partially offset by an increase in contractual service margin recognized in profit or loss for services provided.

Net finance result for the year ended December 31, 2024 includes W1,468,252 million of net interest income, W1,705,444 million of net insurance finance expenses, and W309,518 million of net investment income on securities and others.

The net finance result has increased by W67,426 million as compared to the year ended December 31, 2023 mainly due to an increase in net interest income and a decrease in net insurance finance expenses, partially offset by a decrease in investment income on securities and others.

Total assets are W59,843,268 million as of December 31, 2024, including W11,233,117 million of financial assets at fair value through profit and loss, W38,023,907 million of securities at fair value through other comprehensive income, W3,937,616 million of securities at amortized cost, W2,809,454 million of loans, W1,695,328 million of cash and due from banks, and W2,143,846 million of derivative assets and others.

Total assets increased by W1,201,923 million as compared to the year ended December 31, 2023, mainly due to an increase of securities at fair value through other comprehensive income caused by fall in interest rates and a decrease in loans.

Total liabilities are W52,802,301 million as of December 31, 2024, including W48,420,988 million of insurance contract liabilities (for which the estimates of present value of future cash flows and contractual service margin are W39,847,294 million and W7,226,793 million, respectively); and W4,381,313 million of reinsurance contract liabilities, investment contract liabilities and others in total.

Total liabilities increased by W2,584,090 million as compared to the year ended December 31, 2023, mainly due to an increase in the estimates of present value of future cash flows caused by changes in discount rate assumptions, the fall in interest rates, and other regulatory effects.

Total equity is W7,040,967 million as of December 31, 2024, including W578,274 million of capital stock, W820,012 million of capital surplus, W6,801,415 million of retained earnings, and W1,459,647 million of accumulated other comprehensive loss.

Total equity decreased by W1,382,167 million as compared to the year ended December 31, 2023, mainly due to a decrease in accumulated other comprehensive income caused by changes in discount rate assumptions, the fall in interest rates, 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, 2024 and 2023

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, 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 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 an exclusive organization for risk management.

① Risk Management Committee

The Risk Management Committee, as the highest decision-making body for risk-related matters, is chaired by an outside director and operates regularly. The committee establishes policies for risk identification, measurement, monitoring, and control, ensuring a comprehensive system for proper evaluation and management.

② Risk Management Steering Committee

The Risk Management Steering Committee, a subcommittee under the Risk Management Committee, is established to comprehensively manage operational risks that may arise in business practices. It carries out detailed tasks delegated by the Risk Management Committee to efficiently implement its risk management directives and resolutions.

③ Investment Steering Committee

The Investment Steering Committee, a subcommittee under the Risk Management Committee, is established to enhance asset soundness and systematically manage credit risks through rational loan and investment decision-making. It is tasked with executing detailed directives delegated by the Risk Management Committee to efficiently implement its risk management directives and resolutions.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

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, 2024 and 2023

5. Financial risk management (continued)

(b) Credit risk (continued)

iii) Risk management

The Group manages various credit risks associated with loan receivables, non-trading securities, related non-operating assets, equity investments in associates and subsidiaries, deposits and due from banks, over-the-counter derivatives, and other financial instruments.

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 effective 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, 2024 and 2023

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 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 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-months 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, 2024 and 2023

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 reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Group 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 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 contractual maturity 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

					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)		1,107,282			114,995		1,222,277
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, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

					2023
		General<br><br>(*1)			Investment-linked (*2)		Total
Due from banks and loans at amortized cost (*3)(*4):
Banks	W	1,252,129			273,756		1,525,885
Retail
- Residential mortgage		524,134			-		524,134
- Others		263,896			-		263,896
Government/Public institutions/Central bank		159,975			71,200		231,175
Corporations
- Conglomerate		38,111			148,582		186,693
- SMEs		233,657			-		233,657
- Special financing		2,495,467			-		2,495,467
		4,967,369			493,538		5,460,907
Due from banks at fair value through profit or loss:
Banks		30,743			-		30,743
Financial assets at fair value through profit or loss		5,748,837			3,861,683		9,610,520
Securities at fair value through other comprehensive income		35,564,618			-		35,564,618
Securities at amortized cost (*4)		4,348,023			-		4,348,023
Derivative assets		121,594			871		122,465
Receivables at amortized cost (*4)		1,023,978			129,054		1,153,032
Off-balance sheet accounts
Unused loan commitments		424,203			-		424,203
Capital commitments		1,385,077			-		1,385,077
		1,809,280			-		1,809,280
	W	53,614,442			4,485,146		58,099,588

(*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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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		1,216,272		222		2,498		41,349		1,260,341		(38,064)		1,222,277		1,167
Ending balance	W	47,191,526		64,562		288,370		59,323		47,603,781		(76,614)		47,527,167		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, 2024 and 2023

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, 2024 and 2023 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/bank		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.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

		2023
		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	1,527,690		691		-		-		1,528,381		(2,496)		1,525,885		-
Retail
- Residential mortgage		494,884		12,449		13,729		3,414		524,476		(342)		524,134		516,433
- Others		232,913		30,050		10,868		10,835		284,666		(20,770)		263,896		-
Government/Public institutions/Central bank		231,250		-		-		-		231,250		(75)		231,175		-
Corporations
- Conglomerate		163,369		784		23,866		-		188,019		(1,326)		186,693		-
- SMEs		214,115		19,840		-		-		233,955		(298)		233,657		19,808
- Special financing		2,323,111		-		187,201		-		2,510,312		(14,845)		2,495,467		470,177
		5,187,332		63,814		235,664		14,249		5,501,059		(40,152)		5,460,907		1,006,418
Securities at fair value through other comprehensive income (*3)		35,564,618		-		-		-		35,564,618		-		35,564,618		-
Securities at amortized cost		4,348,231		-		-		-		4,348,231		(208)		4,348,023		-
Receivables at amortized cost		1,145,883		313		2,176		44,921		1,193,293		(40,261)		1,153,032		1,933
Ending balance	W	46,246,064		64,127		237,840		59,170		46,607,201		(80,621)		46,526,580		1,008,351

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 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

W 9,466 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, 2024 and 2023 are as follows:

		2024				2023
		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	1,538,143		-		1,756,342		-
Grade 2		-		242		-		52,938
Total	W	1,538,143		242		1,756,342		52,938

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows:

		2024
		Finance and insurance		Manu-<br><br>facturing		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
Off-balance sheet accounts
Unused loan commitments		-		-		-		98,777		22,672		-		42,858		-		164,307
Capital commitments		-		-		-		-		-		-		1,374,078		-		1,374,078
	W	9,729,021		1,239,514		203,160		2,508,817		589,090		22,017		42,898,350		697,890		57,887,859

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

		2023
		Finance and insurance		Manu-<br><br>facturing		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	1,525,885		-		-		-		-		-		-		-		1,525,885
Retail
- Residential mortgage		-		-		-		-		-		-		-		524,134		524,134
- Others		-		-		-		-		-		-		-		263,896		263,896
Government/Public institutions/Central bank		159,939		-		-		-		-		-		71,236		-		231,175
Corporations
- Conglomerate		152,139		31,549		-		-		-		-		3,005		-		186,693
- SMEs		9,320		47,153		-		159,807		-		-		17,377		-		233,657
- Special financing		86,218		167,216		-		1,448,574		162,200		-		631,259		-		2,495,467
		1,933,501		245,918		-		1,608,381		162,200		-		722,877		788,030		5,460,907
Due from banks at fair value through profit or loss		30,743		-		-		-		-		-		-		-		30,743
Securities at fair value through profit or loss		880,278		52,405		-		29,924		17,841		-		8,630,072		-		9,610,520
Securities at fair value through other comprehensive income		6,890,407		1,035,818		230,715		1,046,629		1,239,793		10,882		25,110,374		-		35,564,618
Securities at amortized cost		160,062		-		-		119,663		62,971		-		4,005,327		-		4,348,023
Off-balance sheet accounts
Unused loan commitments		-		-		-		270,260		102,886		-		51,057		-		424,203
Capital commitments		-		-		-		3,516		-		-		1,381,561		-		1,385,077
	W	9,894,991		1,334,141		230,715		3,078,373		1,585,691		10,882		39,901,268		788,030		56,824,091

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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
Off-balance sheet accounts
Unused loan commitments		164,307		-		-		-		-		-		164,307
Capital commitments		1,331,839		12,871		-		-		-		29,368		1,374,078
	W	52,785,818		2,903,887		127,845		25,855		111,454		1,933,000		57,887,859

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

		2023
		Korea		USA		UK		Japan		Vietnam		Other		Total
Due from banks and loans at amortized cost (*)
Banks	W	1,210,608		68,259		31		100		107,209		139,678		1,525,885
Retail
- Residential mortgage		524,134		-		-		-		-		-		524,134
- Others		263,896		-		-		-		-		-		263,896
Government/Public institutions/Central bank		231,175		-		-		-		-		-		231,175
Corporations
- Conglomerate		170,515		11,245		34		743		-		4,156		186,693
- SMEs		233,657		-		-		-		-		-		233,657
- Special financing		2,495,467		-		-		-		-		-		2,495,467
		5,129,452		79,504		65		843		107,209		143,834		5,460,907
Due from banks at fair value through profit or loss		-		30,743		-		-		-		-		30,743
Securities at fair value through profit or loss		8,103,889		1,108,322		65,206		23,352		-		309,751		9,610,520
Securities at fair value through other comprehensive income		32,737,419		1,449,998		39,827		-		-		1,337,374		35,564,618
Securities at amortized cost		4,348,023		-		-		-		-		-		4,348,023
Off-balance sheet accounts
Unused loan commitments		424,203		-		-		-		-		-		424,203
Capital commitments		1,244,962		112,710		-		-		-		27,405		1,385,077
	W	51,987,948		2,781,277		105,098		24,195		107,209		1,818,364		56,824,091

(*) 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, 2024 and 2023

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 Steering 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, 2024 and 2023

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 based on VaR during the business planning process and are monitored daily to ensure compliance. The risk management department regularly monitors whether the trading department adheres to these limits and reports its findings to the management and the Risk Management Committee.

③ Foreign exchange risk management

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 investment periods.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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 W 4,956,743 million and the minimum guaranteed risk amount that may have an impact on the Group calculated using the internal shock scenario method is W 280,577 million.

		2023
		Average		Maximum		Minimum		December 31
Interest rate risk	W	3,052		7,594		1,796		1,796
Stock price risk		8,623		10,798		7,183		7,522
Foreign exchange risk		64,946		78,793		51,695		52,394
Option volatility risk		955		1,693		420		1,233
Total	W	77,576		98,878		61,094		62,945

(*) As of December 31, 2023, the market risk exposure for investment-linked assets held is W 5,346,730 million and the minimum guaranteed risk amount that may have an impact on the Group calculated using the internal shock scenario method is W 228,451 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

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

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

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

(*2) Derivative contract amounts

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, 2024 and 2023 are as follows: (continued)

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

		2023
								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	46	58,342		7	10,282		1		724		-		-		2,057,395		109,453		1		1,806		180,607
Due from banks at FVTPL		24	30,743		-	-		-		-		-		-		-		-		-		-		30,743
Securities at FVTPL		1,127	1,452,939		28	39,265		14		12,019		-		-		-		-		25		32,751		1,536,974
Securities at FVOCI		1,574	2,029,269		379	540,509		570		502,035		3,849		496,481		-		-		31		39,827		3,608,121
Receivables at amortized cost		117	151,459		5	7,266		10		8,449		68		8,828		134,892		7,176		-		490		183,668
	W	2,888	3,722,752		419	597,322		595		523,227		3,917		505,309		2,192,287		116,629		57		74,874		5,540,113
Liabilities:
Other financial liabilities	W	1	2,301		-	-		-		-		-		-		-		-		-		-		2,301
	W	1	2,301		-	-		-		-		-		-		-		-		-		-		2,301

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

On-balance, net exposure	W	2,887		3,720,451		419		597,322		595		523,227		3,917		505,309		2,192,287		116,629		57		74,874		5,537,812
Off-balance derivative net exposure (*2)		(2,428)		(3,130,593)		(440)		(628,137)		(632)		(556,240)		(4,480)		(577,884)		-		-		(59)		(75,520)		(4,968,374)
Net position	W	459		589,858		(21)		(30,815)		(37)		(33,013)		(563)		(72,575)		2,192,287		116,629		(2)		(646)		569,438

(*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, 2024 and 2023

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 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, 2024, the interest risk for the non-trading position held by the Group is W 1,702,668 million, which increased by W 635,895 million as compared to December 31, 2023 primarily due to the change in the interest rate risk measurement method, the decline in market interest rates, the change in the interest rate shock coefficient, 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, 2024 and 2023

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.

The Group establishes a fund operation plan to defend against liquidity risk in the event of fund operation, taking into account the matching ratio with liquidity liabilities through the monthly analysis of the capital account balance. In addition, the Group prepares for a liquidity crisis by setting up a contingency plan and minimizing the losses caused by the mismatch in the financial dates of the asset liabilities by taking into account not only the expected funding needs per currency but also the unexpected funding needs.

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, 2024 and 2023

(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, 2024 and 2023 are as follows:

			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, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

			2023
		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	683,678		193,056		7,452		7,894		196,916		958,857		2,047,853
Due from banks at fair value through profit or loss		-		-		-		-		-		30,743		30,743
Securities at fair value through profit or loss		156,529		6,399		46,597		59,743		1,529,058		9,298,241		11,096,567
Securities at fair value through other comprehensive income		46,397		103,732		158,575		299,663		6,357,495		28,709,118		35,674,980
Securities at amortized cost		493		40,007		15,793		58,328		1,383,954		4,260,061		5,758,636
Loans at amortized cost		98,787		249,514		187,160		407,305		1,515,132		2,020,972		4,478,870
Receivables at amortized cost		136,178		36,683		6,734		147,360		260,500		608,714		1,196,169
	W	1,122,062		629,391		422,311		980,293		11,243,055		45,886,706		60,283,818
Non-derivative financial liabilities:
Borrowings	W	-		-		-		-		-		17,835		17,835
Debentures		-		3,900		3,900		7,800		354,600		-		370,200
Other financial liabilities(*1)		130,425		38,692		31,030		58,231		9,468		165		268,011
Lease liabilities(*1)		4,453		6,010		8,819		16,755		69,535		842		106,414
Investment contract<br><br>liabilities		245,354		201,983		103,893		538,401		742,195		-		1,831,826
	W	380,232		250,585		147,642		621,187		1,175,798		18,842		2,594,286
Derivatives:
Cash inflows(*2)	W	80,516		165,210		448,263		632,159		3,750,152		26,738		5,103,038
Cash outflows(*2)		(80,719)		(251,229)		(634,303)		(655,299)		(5,329,297)		(27,952)		(6,978,799)
	W	(203)		(86,019)		(186,040)		(23,140)		(1,579,145)		(1,214)		(1,875,761)
Off-balance sheet accounts:
Unused loan<br><br>commitments	W	424,203		-		-		-		-		-		424,203
Capital commitments		1,385,077		-		-		-		-		-		1,385,077
	W	1,809,280		-		-		-		-		-		1,809,280

(*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, 2024 and 2023

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 death 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, 2024 and 2023

6. Insurance risk management (continued)

(a) Overview of the insurance risk (continued)

① Underwriting strategy

The underwriting strategy refers to diversifying the types of risks underwritten or the levels of claims. For example, the company can balance mortality risks and survival risks. Additionally, selecting policyholders through regular health check-ups is also one of the key underwriting 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, 2024 and 2023

6. Insurance risk management (continued)

(b) Insurance risk management policy

1. 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.

2. 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 to ensure adequate profitability by setting profitability guidelines from the time of product development, establishes and operates proper underwriting standards to prevent adverse selection, and operates claim assessment standards to ensure fair and appropriate 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, 2024 and 2023

6. Insurance risk management (continued)

(b) Insurance risk management policy (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.

(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 amount of solvency margin up to 50% of the required capital. In addition, the required capital under the K-ICS, that is, the standard amount of solvency margin, 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 standard amount of solvency margin 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 solvency margin ratio is calculated by dividing the amount of solvency margin by the standard amount of solvency margin. If the insurance company's solvency margin ratio is less than 100%, it indicates that the standard amount of solvency margin 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 margin 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, 2024 and 2023

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 consisting of assets that are relatively easy to liquidate in preparation for unexpected disruptions in funding

• 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. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

6. Insurance risk management (continued)

(e) Concentration of insurance risk

1. The concentration of insurance risks (based on the fulfilment cash flows) by region as of December 31, 2024 and 2023 are as follow:

		2024
		Insurance contracts		Reinsurance contracts		Total
Domestic	W	41,195,537		345,177		41,540,714
International		(1,341)		-		(1,341)
	W	41,194,196		345,177		41,539,373
		2023
---	---	---	---	---	---	---
		Insurance contracts		Reinsurance contracts		Total
Domestic	W	38,360,261		161,301		38,521,562
International		5,001		-		5,001
	W	38,365,262		161,301		38,526,563

2. The amount of foreign currency insurance liabilities (based on the fulfilment cash flows) as of December 31, 2024 and 2023 are as follow:

(In thousands of USD and EUR, and<br><br>in millions of VND and won)		2024						2023
		Foreign currency amount		KRW converted amount			Foreign currency amount			KRW converted amount
Foreign Currency	W	168,209		247,267			192,052			247,632
Insurance Liabilities		119		182			124			177
	VND	(23,242)		(1,341)			94,010			5,001
	W			246,108						252,810

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows:

		2024
		Sensitivity(*1)		Base amount and base amount after change								Profit and capital impact (before tax)
				Fulfillment cash flows (*2)				Insurance contract margin				Profit(loss)(*3)				Other comprehensive income
				Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect
Base amount			W	39,380,251		39,819,864		7,224,114		6,869,326		-		-		-		-
Mortality rate		increased by 3.27%		39,511,663		39,946,680		7,091,068		6,740,875		1,635		1,635		(9,952)		8,702
Disability and illness (fixed compensation)<br><br>Disability and illness (actual loss compensation)		increased by3.40%<br><br>increased by 2.62%		40,083,199		40,478,965		6,567,655		6,256,714		(46,488)		(46,488)		16,176		34,285
Long-term property and other		increased by 4.19%		39,380,251		39,819,864		7,224,114		6,869,326		-		-		-		-
Surrender rate(increase)		increased by 9.16%		40,126,708		40,533,222		6,503,159		6,181,469		(25,501)		(25,501)		(104,650)		(86,772)
Surrender rate(decrease)		decreased by 9.16%		38,556,883		39,031,830		8,041,498		7,651,376		5,984		5,984		115,085		133,903
Expense<br><br>Expense(inflation)		increased by 2.62%<br><br>0.26%p		39,592,255		40,031,868		7,024,540		6,669,753		(12,430)		(12,430)		9,624		9,624

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

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

(*3) 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, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

		2023
		Sensitivity(*1)		Base amount and base amount after change								Effect on profit and equity (before tax)
				Fulfillment cash flows (*2)				Insurance contract margin				Profit(loss)(*3)				Other comprehensive income
				Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect
Base amount			W	36,532,133		36,758,686		7,168,725		7,037,730		-		-		-		-
Mortality rate		increased by 3.27%		36,649,373		36,873,667		7,048,751		6,920,015		2,734		2,734		(669)		16,340
Disability and illness (fixed compensation)<br><br>Disability and illness (actual loss compensation)		increased by3.40%<br><br>increased by 2.62%		37,207,600		37,392,758		6,518,899		6,429,299		(25,641)		(25,641)		79,046		91,155
Long-term property and other		increased by 4.19%		36,532,133		36,758,686		7,168,725		7,037,730		-		-		-		-
Surrender rate(increase)		increased by 9.16%		37,012,292		37,216,745		6,696,604		6,587,709		(8,038)		(8,038)		(248,007)		(231,815)
Surrender rate(decrease)		decreased by 9.16%		36,002,582		36,252,706		7,700,114		7,545,548		(1,838)		(1,838)		265,129		283,049
Expense<br><br>Expense(inflation)		increased by 2.62%<br><br>0.26%p		36,724,665		36,951,218		6,982,049		6,851,054		(5,856)		(5,856)		29,725		29,725

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

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

(*3) 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, 2024 and 2023

(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, 2024 and 2023 are as follow:

		2024				2023
			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	-		146		38,207		5,204

(h) Interest rate risk arising from insurance contracts

The impact of exposure to interest rate risk and interest rate changes on profit and loss on equity as of December 31, 2024 and 2023 are as follow:

① Interest rate risk exposure

		2024		2023
Exposure to financial instruments measured at fair value (*1)	W	48,843,348		46,700,713
Insurance contract exposure (*2)		39,820,035		36,758,783
Net exposure (financial instruments less insurance contracts)		9,023,313		9,941,930

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

② Interest Rate Risk Sensitivity

				2024				2023
				Effects on profit (loss)		Effects on equity		Effects on profit (loss)		Effects on equity
100bp Increase		Insurance contracts (*1)	W	-		4,357,245		-		3,412,769
		Reinsurance contracts (*1)		-		50,365		-		15,543
		Financial assets (*2)		(35,934)		(4,777,699)		(37,574)		(4,258,875)
100bp Decrease		Insurance contracts (*1)		-		(6,073,734)		-		(4,382,646)
		Reinsurance contracts (*1)		-		(59,948)		-		(17,723)
		Financial assets (*2)		35,934		5,837,965		37,574		4,258,875

(*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 and 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 measured at fair value through other comprehensive income.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

6. Insurance risk management (continued)

(i) Liquidity risk arising from insurance contracts

As of December 31, 2024 and 2023, 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.

		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
General insurance:
Cash inflows	W	4,959,356		4,502,944		4,087,588		3,652,621		3,114,091		40,523,130		60,839,730
Cash outflows		(5,324,282)		(4,157,931)		(4,287,561)		(4,084,548)		(4,318,989)		(126,037,788)		(148,211,099)
	W	(364,926)		345,013		(199,973)		(431,927)		(1,204,898)		(85,514,658)		(87,371,369)
Variable insurance
Cash inflows	W	446,902		371,371		307,145		254,674		214,352		1,923,480		3,517,924
Cash outflows		(880,558)		(752,425)		(682,066)		(612,330)		(536,499)		(7,753,564)		(11,217,442)
	W	(433,656)		(381,054)		(374,921)		(357,656)		(322,147)		(5,830,084)		(7,699,518)
	W	(798,582)		(36,041)		(574,894)		(789,583)		(1,527,045)		(91,344,742)		(95,070,887)
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	(818,347)		(57,253)		(595,782)		(809,124)		(1,546,404)		(92,244,490)		(96,071,400)
Total (excluding variable insurance)	W	(384,691)		323,801		(220,861)		(451,468)		(1,224,257)		(86,414,406)		(88,371,882)
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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
General insurance:
Cash inflows	W	5,120,022		4,408,374		3,892,580		3,500,316		3,073,794		51,775,416		71,770,502
Cash outflows		(5,509,719)		(4,969,773)		(4,263,071)		(4,356,801)		(4,235,246)		(132,831,760)		(156,166,370)
	W	(389,697)		(561,399)		(370,491)		(856,485)		(1,161,452)		(81,056,344)		(84,395,868)
Variable insurance
Cash inflows	W	582,036		485,566		412,870		350,176		297,209		3,160,998		5,288,855
Cash outflows		(943,282)		(836,548)		(764,049)		(711,324)		(641,963)		(10,096,136)		(13,993,302)
	W	(361,246)		(350,982)		(351,179)		(361,148)		(344,754)		(6,935,138)		(8,704,447)
	W	(750,943)		(912,381)		(721,670)		(1,217,633)		(1,506,206)		(87,991,482)		(93,100,315)
Reinsurance contract
Cash inflows	W	203,944		204,852		204,904		204,760		205,383		7,421,755		8,445,598
Cash outflows		(225,690)		(225,630)		(224,694)		(222,873)		(221,054)		(7,686,228)		(8,806,169)
	W	(21,746)		(20,778)		(19,790)		(18,113)		(15,671)		(264,473)		(360,571)
Total (including variable life insurance	W	(772,689)		(933,159)		(741,460)		(1,235,746)		(1,521,877)		(88,255,955)		(93,460,886)
Total (excluding variable life insurance)	W	(411,443)		(582,177)		(390,281)		(874,598)		(1,177,123)		(81,320,817)		(84,756,439)

As of December 31, 2024 and 2023, the amount to be paid upon request by policyholders of insurance contracts issued is W 53,227,935 million and W 52,555,004 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, 2024 and 2023

(In millions of Korean won)

6. Insurance risk management (continued)

(j) Claims development

The Claims development as of December 31, 2024 and 2023 are as follows:

		2024
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted<br><br>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

6. Insurance risk management (continued)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

(j) Claims development (continued)

The Claims development as of December 31, 2024 and 2023 are as follows: (continued)

		2023
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted<br><br>ultimate gross claims	W	962,548		950,728		1,062,120		1,098,646		1,153,875		5,227,917
Claims paid
At end of accident year		777,773		771,780		857,031		888,276		932,827		4,227,687
1 year later		151,943		144,712		167,000		172,431				636,086
2 years later		19,955		19,220		23,317						62,492
3 years later		8,972		11,202								20,174
4 years later		3,905										3,905
Cumulative claims paid		962,548		946,914		1,047,348		1,060,707		932,827		4,950,344
Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid		-		3,814		14,772		37,939		221,048		277,573
Effect of discounting												(9,311)
Future claim adjustment expenses												5,313
Incurred claims that have been confirmed but not paid												1,535,849
Risk adjustment for non-financial risk												18,604
Reinsurance effect												(65,252)
Net liability for incurred claims	W											1,762,778

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

7. Capital risk management

In order to manage the required capital for maintaining solvency, the Group measures the solvency margin ratio in accordance with the method required by the supervisory authority, manages it internally, and discloses it externally. The Group also manages its risk appetite using an internal model-based approach.

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, 2024, 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 evaluation 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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
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
Hedging		-		554,326		-		554,326
	W	245		556,125		-		556,370
		2023
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets:
Due from banks at fair value through profit or loss	W	-		30,743		-		30,743
Securities at fair value through profit or loss
Debt securities		3,044,774		1,520,662		5,045,084		9,610,520
Equity securities		1,485,047		-		1,000		1,486,047
		4,529,821		1,520,662		5,046,084		11,096,567
Securities at fair value through other comprehensive income
Debt securities		20,850,434		14,714,184		-		35,564,618
Equity securities		-		-		110,362		110,362
		20,850,434		14,714,184		110,362		35,674,980
Derivative assets
Held for trading		870		251		4,626		5,747
Hedging		-		116,718		-		116,718
		870		116,969		4,626		122,465
	W	25,381,125		16,382,558		5,161,072		46,924,755
Financial liabilities:
Derivative liabilities
Held for trading	W	108		22		-		130
Hedging		-		240,641		-		240,641
	W	108		240,663		-		240,771

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023.

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, 2024 and 2023 are as follows:

Type of financial instrument		Valuation technique			2024		2023		Input variables
Financial assets
Financial asset at fair value through profit or loss
Debt securities		NAV, DCF,<br><br>Hull-White model		W	1,951,058		1,551,405		Discount rates, fair value of the underlying assets
Securities at fair value through other comprehensive income
Debt securities		DCF			14,649,633		14,714,184		Discount rates
Derivative assets
Currency forward		Implied forward rate, DCF			-		29,035		Discount rate,<br><br>foreign exchange rate
Currency swap					2,369		38,417		Discount rate,<br><br>foreign exchange rate
Interest rate forward					114,530		49,517		Discount rate
				W	16,717,590		16,382,558
Financial liabilities
Currency forward		Implied forward rate, DCF		W	256,882		38,281		Discount rate,<br><br>foreign exchange rate
Currency swap					245,963		96,487		Discount rate,<br><br>foreign exchange rate
Interest rate forward					53,280		105,895		Discount rate
				W	556,125		240,663

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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

Financial assets classified as fair value level 3 as of December 31, 2024 and 2023 are as follows:

		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) 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 at profit or loss		Amount recognized at profit or loss related to financial instruments held at the end of the reporting period
Gains or losses related to financial assets at fair value through profit or loss		W	69,844		69,525
Gains or losses related to 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, 2024 and 2023

(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)

Financial instruments that are at fair value level 3 during the years of December 31, 2024 and 2023 are as follows: (continued)

		2023
		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	5,049,896		155,050		1,573		5,206,519
Total gains or losses
Amount recognized in profit or loss(*)		(6,194)		-		1,440		(4,754)
Amount recognized in other<br><br>comprehensive income		-		5,312		-		5,312
Acquisition		514,739		50,000		4,865		569,604
Settlement		(512,357)		(100,000)		(3,252)		(615,609)
Ending balance	W	5,046,084		110,362		4,626		5,161,072

(*) Of the changes in financial instruments classified at fair value level 3 during the prior period, gains or losses related to the amounts recognized in profit or loss and assets and liabilities held for the year ended December 31, 2023 are as follows:

			Amount recognized at profit or loss		Amount recognized at profit or loss related to financial instruments held at the end of the reporting period
Gains or losses related to financial assets at fair value through profit or loss		W	(6,194)		(21,426)
Gains or losses related to derivatives			1,440		415
		W	(4,754)		(21,011)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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 but unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2024 and 203 are as below:

			2024
			Valuation technique		Carrying amount		Significant but 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, 2024 and 2023

(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 but unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2024 and 203 are as below: (continued)

			2023
			Valuation technique		Carrying amount		Significant but 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	5,045,084		Discount rates, correlation coefficient, liquidation value		Discount rates 6.77% ~ 10.25%<br><br>correlation coefficient<br><br>0.5 ~ 0.9<br><br>liquidation value 0.00%		Fair value decreases when discount rate increases<br><br>Fair value increases or decreases depending on correlation coefficient changes<br><br>Fair value increases when liquidation value increases
- Equity<br><br>securities			Cost model		1,000		-
Securities<br><br>at fair value<br><br>through other<br><br>comprehensive<br><br>income
- Equity securities			Hull-White, NAV		110,362		The volatility of an interest rate		0.55% ~ 0.91%		The greater the volatility, the greater the fluctuation in fair value
Derivative assets
- Equity related			Monte-Carlo<br><br>Simulation,<br><br>Black-Scholes		4,626		The volatility of an underlying asset		17.03% ~ 20.45%		The greater the volatility, the greater the fluctuation in fair value
				W	5,161,072

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023, the effect of a significant but unobservable input variable fluctuating reasonably on the reporting date is as follows:

		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.

		2023
		Favorable change		Unfavorable change
Financial assets at fair value through profit or loss (*1)	W	18,237		(17,399)
Securities at fair value through other<br><br>comprehensive income (*1)		3,367		(3,110)
Derivative assets (*2)		329		(330)
	W	21,933		(20,839)

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

(*2) The fair value volatility 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, 2024 and 2023

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.
Loan		The fair value of the loan at amortized cost 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		Other financial assets/liabilities, are used as a proxy for fair value because it is difficult to calculate reliable 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.
Borrowings/debentures		The fair value of borrowings/debentures is assessed by the present value of expected cash flows expected to be paid.
Lease liabilities		The fair value of the lease liabilities is assessed at the present value of the expected cash flows 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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 securities		5,701		5,724
		3,937,616		3,612,631
Loan receivables 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		1,222,277		1,222,277
	W	9,664,675		9,312,026
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
Lease liabilities		93,923		93,923
	W	2,249,230		2,256,151

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

		2023
		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	W	1,014,077		1,014,077
Due from banks at amortized cost		823,929		792,398
Securities at amortized cost
Government bonds		3,904,569		3,504,420
Special purpose bonds		443,454		390,985
		4,348,023		3,895,405
Loan receivables at amortized cost
Retail loans		788,030		793,856
Corporate loans		2,834,871		2,641,416
		3,622,901		3,435,272
Receivables at amortized cost		1,153,032		1,153,032
	W	10,961,962		10,290,184
Financial liabilities
Investment contract liabilities	W	1,831,826		1,831,826
Borrowings		17,835		17,835
Debentures		299,331		313,304
Other financial liabilities		267,901		267,901
Lease liabilities		101,294		101,294
	W	2,518,187		2,532,160

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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 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
		2023
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets
Due from banks at amortized cost	W	-		792,398		-		792,398
Securities at amortized cost
Government bonds		3,504,420		-		-		3,504,420
Special purpose bonds		-		390,985		-		390,985
		3,504,420		390,985		-		3,895,405
Loans at amortized cost
Retail loans		-		-		793,856		793,856
Corporate loans		-		-		2,641,416		2,641,416
		-		-		3,435,272		3,435,272
	W	3,504,420		1,183,383		3,435,272		8,123,075
Financial liabilities
Debentures	W	-		-		313,304		313,304

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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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		-		-		1,101,058		-		1,101,058
Derivative assets		526		-		-		116,899		117,425
		6,026,650		37,377,472		8,714,544		116,899		52,235,565
< 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		9,664,675		116,899		59,039,221

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

		2023
		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	-		-		1,347,814		-		1,347,814
Financial assets at fair<br><br>value through profit or loss		5,660,160		-		-		-		5,660,160
Securities at fair<br><br>value through other<br><br>comprehensive income		-		34,722,661		-		-		34,722,661
Securities at amortized cost		-		-		4,348,023		-		4,348,023
Loans at amortized cost		-		-		3,019,789		-		3,019,789
Receivables at amortized cost		-		-		1,015,434		-		1,015,434
Derivative assets		4,876		-		-		116,718		121,594
		5,665,036		34,722,661		9,731,060		116,718		50,235,475
< Variable>
Cash and due from<br><br>banks at amortized cost		-		-		421,470		-		421,470
Financial assets at fair<br><br>value through profit or loss		5,334,167		-		-		-		5,334,167
Loans at amortized cost		-		-		71,200		-		71,200
Receivables at amortized cost		-		-		128,766		-		128,766
Derivative assets		871		-		-		-		871
		5,335,038		-		621,436		-		5,956,474
< Retirement>
Cash and due from<br><br>banks at amortized cost		-		-		68,722		-		68,722
Financial assets at fair<br><br>value through profit or loss		132,983		-		-		-		132,983
Securities at fair<br><br>value through other<br><br>comprehensive income		-		952,319		-		-		952,319
Loans at amortized cost		-		-		531,912		-		531,912
Receivables at amortized cost		-		-		8,832		-		8,832
		132,983		952,319		609,466		-		1,694,768
	W	11,133,057		35,674,980		10,961,962		116,718		57,886,717

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---	---	---
		Financial liabilities at fair value through profit or loss		Financial liabilities at amortized cost		Hedging derivatives		Total
<General>
Derivative liabilities	W	22		-		235,636		235,658
Borrowings		-		17,835		-		17,835
Debentures		-		299,331		-		299,331
Other financial liabilities		-		251,843		-		251,843
Lease liabilities		-		101,294		-		101,294
		22		670,303		235,636		905,961
< Variable>
Derivative liabilities		108		-		-		108
Other financial liabilities		-		15,912		-		15,912
		108		15,912		-		16,020
< Retirement>
Investment contract liabilities		-		1,831,826		-		1,831,826
Derivative liabilities		-		-		5,005		5,005
Other financial liabilities		-		146		-		146
		-		1,831,972		5,005		1,836,977
	W	130		2,518,187		240,641		2,758,958

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

9. Classification category of financial instruments (continued)

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

i) Net profit or loss by classification of financial instruments for the years ended December 31, 2024 and 2023 are as follows:

		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, 2024 and 2023

(In millions of Korean won)

9. Classification category of financial instruments (continued)

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

i) Net profit or losses by classification of financial instruments for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		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	58,140		-		488		-		-		58,628
Financial assets at fair<br>value through profit or loss		33,633		-		215,310		(6,675)		31,252		273,520
Securities at fair<br>value through other<br>comprehensive income		1,039,005		6,586		115,118		-		42,246		1,202,955
Securities at amortized cost		133,050		-		107		-		-		133,157
Loans at amortized cost		141,240		-		(12,980)		-		(149)		128,111
Receivables at amortized cost		2,667		-		(3,411)		-		-		(744)
Derivatives held for trading		-		-		(7,040)		-		-		(7,040)
Derivatives held for hedging		-		-		(119,142)		-		-		(119,142)
Borrowings		(295)		-		-		-		-		(295)
Debentures		(33,928)		-		(13,090)		-		-		(47,018)
Other financial liabilities		(30)		-		-		-		-		(30)
Lease liabilities		(3,062)		-		-		-		-		(3,062)
		1,370,420		6,586		175,360		(6,675)		73,349		1,619,040
< Variable>
Cash and due from<br>banks at amortized cost		12,541		-		195		-		-		12,736
Financial assets at fair<br>value through profit or loss		84,056		23,536		30,500		456,900		111,444		706,436
Loans at amortized cost		2,561		-		-		-		-		2,561
Receivables at amortized cost		20		-		216		-		-		236
Derivatives held for trading		-		-		(26,907)		-		-		(26,907)
		99,178		23,536		4,004		456,900		111,444		695,062
< Retirement>
Cash and due from<br>banks at amortized cost		1,093		-		31		-		-		1,124
Financial assets at fair<br>value through profit or loss		507		83		5,450		1,200		4,257		11,497
Securities at fair<br>value through other<br>comprehensive income		36,211		278		1,989		-		(43,884)		(5,406)
Loans at amortized cost		19,770		-		(4,072)		-		-		15,698
Receivables at amortized cost		-		-		(7)		-		-		(7)
Derivatives held for trading		-		-		(31)		-		-		(31)
Derivatives held for hedging		-		-		(866)		-		-		(866)
Investment contract liabilities		(110,280)		-		-		-		-		(110,280)
		(52,699)		361		2,494		1,200		(39,627)		(88,271)
	W	1,416,899		30,483		181,858		451,425		145,166		2,225,831

9. Classification category of financial instruments (continued)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

(c) Financial instrument offsetting

Details of financial instruments subject to collective offsetting agreements or similar agreements as of December 31, 2024 and 2023 are as follows:

			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 loan securities			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
			2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
			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	121,594		-		121,594		113,064		-		8,530
Purchase under repurchase agreement			71,200		-		71,200		71,200		-		-
Foreign currency loan securities			579,354		-		579,354		577,732		-		1,622
		W	772,148		-		772,148		761,996		-		10,152
Financial liabilities
Derivative liabilities		W	240,663		-		240,663		234,507		-		6,156

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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 loaned securities as of December 31, 2024 and 2023 is as follows:

Classification				2024		2023
Financial assets at fair value		Government bonds	W	-		19,915
through profit or loss		Beneficiary certificates		-		40,900
		Stocks		15,826		39,143
				15,826		99,958
Securities at fair value through		Government bonds		6,481,140		6,746,593
other comprehensive income		Foreign currency bonds		1,260,151		579,354
				7,741,291		7,325,947
Securities at amortized cost		Government bonds		1,730,170		2,894,972
			W	9,487,287		10,320,877

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

As of December 31, 2024 and 2023, 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, 2024 and 2023

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 market yields on 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, 2024 and 2023

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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		2024		2023
Cash and cash equivalents:
Savings account	W	138,684		367,733
Current account		57		59
Others		691,258		646,285
		829,999		1,014,077
Due from banks at amortized cost:
Time deposit		539,407		486,128
Installment savings		228,250		228,250
Other deposits		100,403		112,233
(Credit loss allowance)		(2,731)		(2,682)
		865,329		823,929
	W	1,695,328		1,838,006

(b) Restricted due from banks at amortized cost as of December 31, 2024 and 2023 are as follows:

		2024		2023		Restrictions<br><br>on use
Due from banks denominated in won	W	60,661		57,266		Sales-related pledge establishment,<br><br>deposits for opening current accounts, deposits for futures transaction, etc.
Due from banks denominated in foreign currency		15,735		17,105
	W	76,396		74,371

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

(c) The changes in credit loss allowance for due from banks measured at amortized cost for the years ended December 31, 2024 and 2023, are as follows:

		Designated for measurement of<br><br>12-month expected credit loss
		2024		2023
Beginning balance of credit loss allowance	W	2,682		2,335
Provision for credit loss allowance		(112)		382
Others (*)		161		(35)
Ending balance of credit loss allowance	W	2,731		2,682

(*) Other changes are due to 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, 2024 and 2023

(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, 2024 and 2023, are as follows:

		2024		2023
Due from banks:
Due from banks in foreign currency	W	35,450		30,743
Securities:
Debt securities:
Government bonds		1,395,210		1,416,833
Special purpose bonds		107,425		173,700
Financial institutions bonds		163,929		167,426
Corporate bonds		146,417		147,066
Puttable stocks		56,035		44,344
Puttable equity instruments		245,761		263,274
Beneficiary certificates		5,850,511		5,487,401
Other securities		202,256		241,102
Debt securities in foreign currency		223,895		176,757
Puttable financial instruments in foreign currency		3,035		2,874
Beneficiary certificates in foreign currency		1,400,558		1,200,728
Other securities in foreign currency		214,102		289,015
		10,009,134		9,610,520
Equity securities:
Stocks		1,187,865		1,485,405
Foreign stocks		668		642
		1,188,533		1,486,047
		11,197,667		11,096,567
	W	11,233,117		11,127,310

(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, 2024 and 2023, are as follows:

		2024		2023
Gain on financial assets measured at fair value through profit or loss:
Gain on valuation	W	478,329		679,827
Gain on disposal		269,545		271,327
Others		243,978		222,378
		991,852		1,173,532
Loss on financial assets measured at fair value through profit or loss:
Loss on valuation		449,660		228,402
Loss on disposal		180,701		124,374
		630,361		352,776
Net gain on financial assets at fair value through profit or loss	W	361,491			820,756

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023, are as follows:

		2024		2023
Debt securities:
Government bonds	W	22,596,093		20,291,960
Special purpose bonds		7,376,549		7,612,912
Financial institution bonds		956,661		979,921
Corporate bonds		2,868,627		3,071,706
Debt securities in foreign currency		3,736,919		3,293,752
Other securities in foreign currency		327,643		314,367
		37,862,492		35,564,618
Equity securities (*):
Stocks		2,504		2,932
Other securities		158,911		107,430
		161,415		110,362
	W	38,023,907		35,674,980

(*) 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, 2024 and 2023, are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance (*1)	W	35,564,618		32,598,753
Acquisition		4,651,017		3,293,721
Disposal and redemption		(4,136,394)		(3,603,565)
Others (*2)		1,783,251		3,275,709
Ending balance (*1)	W	37,862,492		35,564,618

(*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, 2024 and 2023

(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, 2024 and 2023, are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance (*)	W	9,466		13,752
Reversal of credit loss allowance		(1,257)		(4,245)
Other		(2)		(41)
Ending balance (*)	W	8,207		9,466

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

(d) Policyholders' equity adjustments

The Group accounts for unrealized gains or losses on securities at fair value through other comprehensive income separately by accumulated other comprehensive income and policyholders’ equity in accordance with the Regulations on Supervision of Insurance Business. The details of valuation gain (loss) on securities at fair value through other comprehensive income recorded in accumulated other comprehensive income and policyholders’ equity as of December 31, 2024 and 2023 are as follows:

		2024		2023
Appropriated to the policyholders’ equity adjustment	W	(362)		(1,025)
Appropriated to the accumulated other comprehensive income		(1,765,946)		(2,496,763)
Tax effect		(633,437)		(895,579)
	W	(2,399,745)		(3,393,367)

(e) Equity instruments designated at fair value through other comprehensive income were disposed due to changes in the purpose of holding during the year ending December 31, 2024. At the time of disposal, the fair value and accumulated gains or losses reclassified within equity are as follows:

		Fair value at disposal date		Accumulated gain/loss<br><br>at disposal date (*)
Stocks	W	100		(41)

(*) Accumulated gains or loss was reclassified 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, 2024 and 2023

(In millions of Korean won)

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

(f) The dividend income recognized related to equity instruments at fair value through other comprehensive income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Dividend income recognized from assets held at the end of<br><br>the reporting period
Other Securities	W	4,399		2,430
Dividend income recognized from assets disposed of<br><br>during the reporting period
Other Securities		-		4,434
	W	4,399		6,864

(g) Gains and losses on disposal of securities at fair value through other comprehensive income recognized for the years ended December 31, 2024 and 2023, are as follows:

		2024		2023
Gain on disposal of securities at fair value through other<br><br>comprehensive income	W	79,735		54,256
Loss on disposal of securities at fair value through other<br><br>comprehensive income		(96,475)		(55,895)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

14. Securities at amortized cost

(a) Securities at amortized cost as of December 31, 2024 and 2023 are as follows:

		2024		2023
Government bonds	W	3,489,625		3,904,569
Special purpose bonds		442,475		443,662
Foreign currency securities		5,770		-
(Credit loss allowance)		(254)		(208)
	W	3,937,616		4,348,023

(b) Changes in total carrying amount

Changes in total carrying amounts of securities at amortized cost for the years ended December 31, 2024 and 2023 are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance	W	4,348,231		4,339,081
Acquisition		5,460		-
Disposal		(427,906)		-
Others (*)		12,085		9,150
Ending balance	W	3,937,870		4,348,231

(*) Amounts occurred due to effective interest amortization.

(c) Changes in credit loss allowance

Changes in credit loss allowance for securities at amortized cost for the years ended December 31, 2024 and 2023 are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance	W	208		315
Provision for (reversal of) credit loss allowance		43		(107)
Others (*)		3		-
Ending balance	W	254		208

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

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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		Gains 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 gains or losses 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, 2024 and 2023

(In millions of Korean won)

15. Investments in associates

(a) Investments in associates as of December 31, 2024 and 2023 are as follows:

Investees		Location		Reporting<br><br>month		Ownership (%)				Carrying amount
									2024		2023		2024		2023
iPIXEL Co., Ltd.(*1)(*2)		Korea		December		10.51		11.54	W	-		-
Findvalue JD Fund No.1		Korea		December		27.03		27.03		897		884
IGIS Private Real Estate Investment Trust 517-1		Korea		December		46.78		46.67		26,565		25,072
									W	27,462		25,956

(*1) 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.

(*2) Recognized impairment with the residual value of W 1,000 in the year ended December 31, 2023.

(b) Changes in investments in associates for the years ended December 31, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---
Investees		Beginning<br><br>balance		Acquisition		Equity method<br>gain (loss)		Other Increases<br>or decreases		Impair<br><br>-ment(*)		Ending<br><br>balance
iPIXEL Co., Ltd.	W	355		-		(65)		-		(290)		-
IMM Long-term Solution<br><br>Private Equity Fund		39,695		-		-		(39,695)		-		-
Findvalue JD Fund No.1		993		-		(109)		-		-		884
IGIS Private Real Estate Investment Trust 517-1		-		25,200		(128)		-		-		25,072
	W	41,043		25,200		(302)		(39,695)		(290)		25,956

(*) Equity method loss was continuously recorded since the acquisition, and an impairment loss was recognized as it fell below its cost.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

15. Investments in associates (continued)

(c) The financial position as of December 31, 2024 and 2023 and the summary financial information of the associate related to management performance for the years ended December 31, 2024 and 2023 are as follows.

		2024
Investees		Assets		Liabilities		Equity		Operating income		Net income		Total comprehensive income
iPIXEL Co., Ltd.	W	881		564		317		14		(1,396)		(1,396)
Find JD Fund No.1		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)
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---
Investees		Assets		Liabilities		Equity		Operating income		Net income		Total comprehensive income
iPIXEL Co., Ltd.	W	310		321		(11)		180		(657)		(657)
Find JD Fund No.1		3,596		18		3,578		-		(76)		(76)
IGIS Private Real Estate Investment Trust 517-1		54,015		289		53,726		15		(274)		(274)
	W	57,921		628		57,293		195		(1,007)		(1,007)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

16. Loans and receivables at amortized cost

(a) Loans and receivables at amortized cost as of December 31, 2024 and 2023 are as follows:

i) Loans at amortized cost

		2024		2023
Mortgage loans	W	679,799		1,009,680
Credit loans		1,754,050		2,135,903
Loans secured by third party guarantee		349,487		393,782
Other loans		60,900		121,200
		2,844,236		3,660,565
Deferred loan origination cost (fees)		783		(194)
(Credit loss allowance)		(35,565)		(37,470)
	W	2,809,454		3,622,901

ii) Receivables at amortized cost

		2024		2023
Receivables, etc.	W	104,906		154,567
Deposits		59,408		60,517
Accrued income		1,098,820		981,085
		1,263,134		1,196,169
(Present value discounts)		(2,793)		(2,876)
(Credit loss allowance)		(38,064)		(40,261)
	W	1,222,277		1,153,032

(b) Changes in total carrying value

Changes in total carrying value of loans and receivables at amortized cost for the years ended December 31, 2024 and 2023 are as follows:

i) Loans at amortized cost

		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 loss		7,948		(7,782)		(166)		20,000		(20,000)		-		-
Transfer to (from) lifetime expected credit loss		(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.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

i) Loans at amortized cost (continued)

		2023
		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	812,568		56,866		9,889		3,309,105		58,743		-		4,247,171
Transfer to (from)<br><br>12-month expected credit loss		40,563		(40,531)		(32)		39,616		(39,616)		-		-
Transfer to (from) lifetime expected credit loss		(20,075)		20,222		(147)		(167,266)		167,266		-		-
Transfer to (from) impaired financial asset		(11,560)		(1,764)		13,324		-		-		-		-
Origination, collection and others		(51,200)		(10,197)		(1,579)		(541,293)		24,675		-		(579,594)
Charge off (*)		-		-		(6,630)		-		-		-		(6,630)
Disposal		-		-		(576)		-		-		-		(576)
Ending balance	W	770,296		24,596		14,249		2,640,162		211,068		-		3,660,371

(*) 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 27,974 million.

ii) Receivables 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 (from) to 12-month<br><br>expected credit losses		57		(54)		(3)		-
Transfer (from) to lifetime expected credit losses		(171)		174		(3)		-
Transfer (from) to 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.

		2023
		12-month<br><br>expected credit loss		Lifetime<br><br>expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	2,712,097		2,174		43,513		2,757,784
Transfer (from) to 12-month<br><br>expected credit losses		285		(285)		-		-
Transfer (from) to lifetime expected credit losses		(617)		619		(2)		-
Transfer (from) to impaired financial assets		(6,072)		(9)		6,081		-
Origination, collection and others		281,191		(323)		(2,733)		278,135
Charge off		-		-		(1,938)		(1,938)
Ending balance (*)	W	2,986,884		2,176		44,921		3,033,981

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

i) Loans at amortized cost

		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 loss		1,282		(1,240)		(42)		301		(301)		-		-
Transfer to (from) lifetime expected credit loss		(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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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	9,648		2,812		7,341		5,756		1,744		-		27,301
Transfer to (from)<br><br>12-month expected credit loss		1,239		(1,211)		(28)		553		(553)		-		-
Transfer to (from) lifetime expected credit loss		(468)		488		(20)		(487)		487		-		-
Transfer to (from) impaired financial asset		(444)		(271)		715		-		-		-		-
Provision (reversal)		(1,893)		1,366		6,873		(16)		8,875		-		15,205
Collection		-		-		1,767		-		-		-		1,767
Charge off		-		-		(6,629)		-		-		-		(6,629)
Disposal		-		-		(173)		-		-		-		(173)
Others (*)		-		-		(1)		-		-		-		(1)
Ending balance	W	8,082		3,184		9,845		5,806		10,553		-		37,470

(*) Amounts due to loan restructuring.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows: (continued)

ii) Receivables at amortized cost

		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 (from) to 12-month expected credit losses		8		(5)		(3)		-
Transfer (from) to lifetime expected credit losses		(2)		5		(3)		-
Transfer (from) to 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.

		2023
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance (*1)	W	3,150		68		38,145		41,363
Transfer (from) to 12-month expected credit losses		7		(7)		-		-
Transfer (from) to lifetime expected credit losses		(3)		5		(2)		-
Transfer (from) to impaired financial assets		(66)		(1)		67		-
Provision		200		17		3,256		3,473
Collection		-		-		85		85
Charge off		-		-		(1,940)		(1,940)
Others (*2)		(38)		-		-		(38)
Ending balance (*1)	W	3,250		82		39,611		42,943

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

(*2) Included the effect 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, 2024 and 2023 are as follows:

		2024		2023
Beginning balance	W	(194)		2,753
Loan origination		(1,313)		(2,256)
Amortization		2,290		(691)
Ending balance	W	783		(194)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

17. Lease

(a) Details of the right-of-use assets as of December 31, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---
		Acquisition cost		Accumulated depreciation		Carrying amount
Real estate	W	187,209		(90,434)		96,775
Vehicle		1,222		(391)		831
	W	188,431		(90,825)		97,606

(b) Changes in the right-of-use assets for the years ended December 31, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---
		Real estate		Vehicle		Total
Beginning balance	W	115,807		659		116,466
Acquisition		24,458		940		25,398
Disposal		(5,757)		(333)		(6,090)
Depreciation		(37,371)		(435)		(37,806)
Transfer		(359)		-		(359)
Effects of foreign currency movements		(3)		-		(3)
Ending balance	W	96,775		831		97,606

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

17. Lease (continued)

(c) The amount recognized in profit or loss for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Depreciation of right-of-use assets	W	39,100		37,806
Interest expenses of lease liability		2,937		3,062
Expenses related to short-term lease		-		68
Expenses related to low-value lease assets		1,178		1,110
		43,215		42,046
Revenues from sublease of right-of-use assets		(92)		(320)
	W	43,123		41,726

(d) Total cash outflows from leases for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Cash outflows of lease liabilities	W	36,043		37,920
Cash outflows of short-term lease		-		68
Cash outflows of low-value lease assets		1,178		1,110
	W	37,221		39,098

(e) The estimated timing of outflows of lease liabilities as of the years ended December 31, 2024 and 2023 are as follows:

		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.

		2023
Due (*)		Real estate		Vehicle		Total
In 1 month or less	W	4,360		93		4,453
After 1 month through 3 months		5,956		54		6,010
After 3 months through 6 months		8,740		79		8,819
After 6 months through 1 year		16,602		152		16,754
After 1 year through 5 years		69,010		525		69,535
After 5 years		843		-		843
	W	105,511		903		106,414

(*) 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, 2024 and 2023

(In millions of Korean won)

18. Property and equipment

(a) Details of property and equipment as of December 31, 2024 and 2023 are as follows:

				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.

				2023
		Acquisition cost				Accumulated<br><br>depreciation		Accumulated<br><br>impairment		Carrying amount
Land	W	12,877				-		-		12,877
Buildings		36,898				(8,811)		(8,388)		19,699
Structure		3,894				(2,541)		(614)		739
Rental property		44,788				(27,288)		-		17,500
Equipment(*)		126,978				(93,852)		-		33,126
Construction in progress(*)		6,288				-		-		6,288
Other assets		130				-		-		130
	W	231,853				(132,492)		(9,002)		90,359

(*) 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, 2024 and 2023

(In millions of Korean won)

18. Property and equipment (continued)

(b) Changes in property and equipment for the years ended December 31, 2024 and 2023 are as follows:

				2024
		Beginning balance				Acquisition		Disposal		Other changes(*)		Impair-<br><br>ment		Deprecia-<br><br>tion		Ending balance
Land	W	12,877				24,348		-		6,108		-		-		43,333
Buildings		19,700				14		-		-		(1,590)		(518)		17,606
Structure		739				-		-		-		(113)		(119)		507
Rental property		17,500				4,359		(489)		509		-		(6,681)		15,198
Equipment		33,125				9,353		(319)		480		-		(13,540)		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.

				2023
		Beginning balance				Acquisition		Disposal		Other changes(*)		Impair-<br><br>ment		Deprecia-<br><br>tion		Ending balance
Land	W	12,877				-		-		-		-		-		12,877
Buildings		21,483				70		-		-		(1,300)		(554)		19,699
Structure		984				-		-		-		(109)		(136)		739
Rental property		15,854				10,373		(2,190)		-		-		(6,537)		17,500
Equipment		37,616				8,977		(548)		778		-		(13,697)		33,126
Construction in progress		-				6,288		-		-		-		-		6,288
Other assets		140				772		-		(782)		-		-		130
	W	88,954				26,480		(2,738)		(4)		(1,409)		(20,924)		90,359

(*) Included amounts transferred from construction in progress to land and others, and the effect of exchange rate fluctuations.

(c) As of December 31, 2024, 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, 2024 and 2023

(In millions of Korean won)

19. Intangible assets

(a) Details of intangible assets as of December 31, 2024 and 2023 are as follows:

		2024								2023
		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-ing amount		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-ing amount
Goodwill	W	13,851		-		(3,560)		10,291		13,851		-		(3,560)		10,291
Development cost(*)		508,344		(343,941)		(1,168)		163,235		463,371		(282,677)		(1,001)		179,693
Software(*)		156,588		(112,848)		-		43,740		139,332		(98,313)		-		41,019
Membership		8,737		-		(380)		8,357		9,086		-		(729)		8,357
Others		7,123		(10)		-		7,113		18,463		(52)		-		18,411
	W	694,643		(456,799)		(5,108)		232,736		644,103		(381,042)		(5,290)		257,771

(*) 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, 2024 and 2023 are as follows:

		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.

		2023
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impair<br><br>-ment<br><br>loss		Amortiza<br><br>-tion		Ending balance
Goodwill	W	13,851		-		-		-		(3,560)		-		10,291
Development cost		223,562		5,130		(2,780)		12,946		(1,001)		(58,164)		179,693
Software		42,811		6,629		(32)		5,199		-		(13,588)		41,019
Membership		5,975		3,132		(637)		-		(113)		-		8,357
Others		6,488		30,172		(6)		(18,241)		-		(2)		18,411
	W	292,687		45,063		(3,455)		(96)		(4,674)		(71,754)		257,771

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		2024		2023
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, 2024. The forecast period for assessing utility value extends 5.5 years beyond the evaluation date (from July 2024 to December 2029), 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.		8.6%		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	17,296
Total carrying amount (*)		15,529
	W	1,767

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

						Amount covered
Insurance type		Insured assets		Insurance company		2024		2023
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		Samsung Fire & Marine<br><br>Insurance Co., Ltd., etc.		113,666		113,591
		Fire		DB Insurance Co, Ltd., etc.		5,725		6,775
		Property Insurance		PTI		-		2,067
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		6,000		5,500
Other insurance 2		Cash, securities		MG Non-life Insurance Co., Ltd.		270		540
Other insurance 3		Elevator accident		Samsung Fire & Marine<br><br>Insurance Co., Ltd.		90		90
					W	176,251		179,063

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

21. Investment properties

(a) Details of investment properties as of December 31, 2024 and 2023 are as follows:

		2024						2023
		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		(2,496)		8,153		10,649		(2,284)		8,365
	W	16,681		(2,496)		14,185		16,681		(2,284)		14,397

(b) Changes in investment properties for the years ended December 31, 2024 and 2023 are as follows:

		2024
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,365		(212)		8,153
	W	14,397		(212)		14,185
		2023
---	---	---	---	---	---	---
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,578		(213)		8,365
	W	14,610		(213)		14,397

(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, 2024 and 2023 are as follows:

		2024		2023
Rental income	W	812		758
Operating expenses		212		213

(d) Fair value measurement

The fair value of investment properties as of December 31, 2024 and 2023 are as follows:

		2024		2023
Land	W	13,850		16,320
Buildings		13,161		16,320
	W	27,011		32,640

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.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

22. Derivatives

(a) Notional amount of open interest in derivatives instruments as of December 31, 2024 and 2023 are as follows

		2024		2023
Currency related derivatives:
Exchange traded:
Currency futures	W	787,438		768,905
Over the counter:
Currency forward		20,188		12,868
Equity related derivatives:
Exchange traded
Equity futures		156,694		269,160
Over the counter:
Equity options		343,508		384,417
Interest rate related derivatives:
Exchange traded
Interest rate futures		68,534		99,325
Other derivatives:
Exchange traded:
Commodity futures		7,705		5,780
		1,384,067		1,540,455
Hedges:
Fair value hedges:
Currency forward		887,925		697,329
Cash flow hedges:
Currency forward		2,034,281		1,497,561
Currency swaps		3,127,576		2,816,192
Interest rate forward		2,700,358		1,681,185
		8,750,140		6,692,267
	W	10,134,207		8,232,722

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

22. Derivatives (continued)

(b) Fair value

The fair values of derivatives held as of December 31, 2024 and 2023 are as follows:

		2024				2023
		Assets		Liabilities		Assets		Liabilities
Currency related derivatives:
Exchange traded:
Currency futures	W	-		-		30		-
Over the counter:
Currency forward		-		1,799		251		22
Equity related derivatives:
Exchange traded:
Stock futures		-		159		763		39
Over the counter:
Stock options		526		-		4,625		-
Other derivatives:
Exchange traded:
Commodity futures		97		86		78		69
		623		2,044		5,747		130
Hedges:
Fair value hedges:
Currency forward		-		82,407		8,022		1,573
Cash flow hedges:
Currency forward		-		172,676		20,762		36,686
Currency swaps		2,369		245,963		38,417		96,487
Interest rate forward		114,530		53,280		49,517		105,895
		116,899		554,326		116,718		240,641
	W	117,522		556,370		122,465		240,771

(c) Gains or losses related to derivatives

Details of gains or losses related to derivatives for the years ended December 31, 2024 and 2023 are as follows:

			2024		2023
Gains related to derivatives	W	66,441			153,712
Losses related to derivatives		752,884			307,698

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives

Details of valuation gains and losses of derivatives for the years ended December 31, 2024 and 2023 are as follows:

		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 tax effect.

(*2) The change in the accumulated other comprehensive income for the year ended December 31, 2024, amounting to W (88,537) million, arising from expired bond forwards and interest rate swaps as of December 31, 2024, has been excluded.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives (continued)

		2023
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Currency related derivatives:
Exchange traded:
Currency futures	W	30		-		-
Over the counter:
Currency forward		251		440		-
Equity related derivatives:
Exchange traded:
Equity futures		763		39		-
Over the counter:
Equity options		1,295		879		-
Other derivatives:
Exchange traded:
Commodity futures		77		69		-
		2,416		1,427		-
Hedges:
Fair value hedges:
Currency forward		6,750		2,467		-
Cash flow hedges:
Currency forward		14,818		15,648		3,098
Currency swaps		6,858		79,377		7,019
Interest rate forward		149		2,281		148,331
		28,575		99,773		158,448
	W	30,991		101,200		158,448

(*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the tax effect.

(*2) Excluded the change in the accumulated other comprehensive income for the year ended December 31, 2024, amounting to W (14,659) million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2023.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 are as follows:

		2024
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	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.

		2023
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	4,102		(2,392)		1,710

(*) 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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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 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.

		2023
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	148,331		(2,132)		-
Foreign currency risk		10,117		(5,466)		(112,246)
Discontinuation of<br><br>Hedging (*3)		(14,659)		-		14,659
	W	143,789		(7,598)		(97,587)

(*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, 2024 and 2023

(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, 2024 and 2023 are as follows:

		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.

		2023
		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	202,945		18,144		815,507		361,589		283,000		-		1,681,185
- Average price		2.27%		2.38%		2.53%		3.42%		3.66%		-
- Average hedge ratio		100.0%		100.0%		100.0%		100.0%		100.0%		-		100.0%
Foreign currency risk(*)
- Nominal amount of hedging instruments	W	1,285,031		906,074		825,018		845,547		1,080,163		69,249		5,011,082
- 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 1,235.76, EUR/KRW 1,381.85, GBP/KRW 1,534.90, AUD/KRW 858.03, and SEK/KRW 126.81.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023

		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	W	2,034,281		-		172,676		(173,472)
		2023
---	---	---	---	---	---	---	---	---	---
		Nominal amount		Carrying value				Fair value changes during the period
				Asset		Liability
Fair value hedge:
Currency forward	W	697,329		8,022		1,573		3,927
Cash flow hedge:
Interest rate forward		1,681,185		49,517		105,895		144,167
Currency swap		2,816,192		38,417		96,487		(63,424)
Currency forward	W	1,497,561		20,762		36,686		3,880

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023

		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	W	3,698,841		-		-		-		413,772		79,166
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		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	724,375		-		-		-		(1,109)		-
Cash flow hedge
Interest rate risk: bonds in won and in foreign currencies		641,750		-		-		-		-		9,401
Foreign exchange risk: bonds and loans in foreign currencies	W	3,367,726		-		-		-		67,884		50,627

(g) As of December 31, 2024, due from banks with restriction on use related to derivative transactions is W 74,296 million (W 72,150 as of December 31, 2023) and W 24,231 million of which is deposited at Shinhan Securities Co., Ltd., a related party.

(h) As of December 31, 2024, financial assets of W718,881 million (W500,445 million as of December 31, 2023) 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 party, Shinhan Securities Co., Ltd. and Shinhan Bank Co., Ltd. is W22,155 and W115,966 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, 2024 and 2023

(In millions of Korean won)

23. Other assets

Other assets as of December 31, 2024 and 2023 are as follows:

		2024		2023
Prepaid expense	W	122,025		98,651
Prepayments		73		972
Others		56		48
	W	122,154		99,671

24. Pledged Assets

The assets pledged as collateral as of December 31, 2024 and 2023 are as follows:

		2024		2023		Reason for collateral
Securities at fair value through profit or loss	W	101,197		132,226		Variable annuity funds substitute securities
Securities at fair value through other comprehensive income		512,157		294,262		Derivatives, compensation joint fund
Securities at amortized cost		105,527		82,252		Derivatives
Investment property		376		-		Settlement of mortgage loan
Time Deposits		2,061		2,130		Pledge
	W	721,318		510,870

25. Insurance contract liabilities

(a) The carrying amount of insurance contract liabilities as of December 31, 2024 and 2023, is as follows:

		2024		2023
Life	W	17,613,660		14,357,124
Health		5,411,290		5,194,258
Pension savings		20,425,185		20,752,206
Variable insurance		4,970,853		5,225,398
Others		-		5,001
	W	48,420,988		45,533,987

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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:

		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 death	W	745,498		9,632		37,819		-		-		-		-
Non-participating death		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 death		3,332,895		116,290		551,776		-		-		-		-
Variable death		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		-
	W	34,138,049		1,313,647		7,178,407		3,908,127		19,038		48,386		171

(*) The above table is prepared for remaining coverage, and the negative amount represents asset for remaining coverage. Non-par refers to insurance contracts for which changes in assumptions that relate to financial risk do not have a substantial effect on the amounts paid to a policyholder so that payments to the policyholder rarely vary with returns on underlying items. Indirect-par refers to insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to a policyholder and payments to the policyholder vary with returns on underlying items. Underlying items are clearly identified and a substantial share of the returns on the underlying items is paid to the policyholder but that amount is not a significant portion of the total contractual benefits. Direct-par is insurance contracts with direct participation features.

		2023
		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 death	W	675,617		9,875		25,350		-		-		-		-
Non-participating death		7,125,640		453,486		2,182,761		-		-		-		-
Participating health		42,393		667		3,927		-		-		-		-
Non-participating health		1,366,376		421,732		2,670,104		-		-		-		98
Participating annuity & savings		1,125,639		3,557		1,960		-		-		-		-
Non-participating annuity & savings		415,641		52		24		-		-		-		-
Others		4,941		-		-		-		-		-		-
Indirect-Par
Non-participating death		2,589,567		110,308		727,506		-		-		-		-
Variable death		510,860		62,229		257,424		-		-		-		-
Participating annuity & savings		2,731,757		5,402		57,078		-		-		-		-
Non-participating annuity & savings		13,187,900		43,293		1,011,998		-		-		-		-
Asset-linked annuity & savings		1,405,274		2,417		137,998		-		-		-		-
Direct-Par
Variable annuity & savings		-		-		-		4,222,532		19,918		92,596		-
	W	31,181,605		1,113,018		7,076,130		4,222,532		19,918		92,596		98

(*) The above table is prepared for remaining coverage, and the negative amount represents asset for remaining coverage. Non-par refers to insurance contracts for which changes in assumptions that relate to financial risk do not have a substantial effect on the amounts paid to a policyholder so that payments to the policyholder rarely vary with returns on underlying items. Indirect-par refers to insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to a policyholder and payments to the policyholder vary with returns on underlying items. Underlying items are clearly identified and a substantial share of the returns on the underlying items is paid to the policyholder but that amount is not a significant portion of the total contractual benefits. Direct-par is 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, 2024 and 2023

25. Insurance contract liabilities (continued)

(c) As of December 31, 2024, and December 31, 2023, the Group applied the following assumptions for estimates future cash flows for the contracts held, along with the basis for their determination.

		Assumptions
Classification		2024		2023		Assumptions used and measurement basis
Surrender ratio		0% ~ 69.75%		0% ~ 73.78%		- The ratio of surrendered contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-surrender-value insurance products), and duration.<br><br>- For zero/low-surrender-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		8% ~ 316%		17% ~ 756%		- 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
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		2.31% ~ 4.55%		3.75% ~ 4.80%		- 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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below:

		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 death
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 death
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, 2024 and 2023

(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 death
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 death
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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2023
		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 death
Expected claim (A) W		12,441		12,626		12,785		12,929		13,047		13,132		13,178		13,186		13,156		13,084		62,661		54,846		45,231		37,162		97,731		221,946
Risk Premium (B)		31,681		32,700		33,737		34,814		35,849		36,845		37,780		38,669		39,482		40,177		207,114		207,083		196,267		173,077		350,054		737,626
Loss ratio (A/B)		39.27%		38.61%		37.90%		37.14%		36.39%		35.64%		34.88%		34.10%		33.32%		32.56%		30.25%		26.48%		23.05%		21.47%		27.92%		30.09%
Non-participating death
Expected claim (A) W		473,453		477,746		481,794		485,059		486,852		489,099		491,743		493,679		494,649		494,327		2,445,819		2,274,125		1,994,745		1,604,631		4,632,966		8,754,216
Risk Premium (B)		548,897		551,069		555,951		561,691		568,546		576,270		583,860		590,750		598,494		605,513		3,099,560		3,110,326		2,990,179		2,682,341		8,226,377		11,794,725
Loss ratio (A/B)		86.26%		86.69%		86.66%		86.36%		85.63%		84.87%		84.22%		83.57%		82.65%		81.64%		78.91%		73.12%		66.71%		59.82%		56.32%		74.22%
Participating health
Expected claim (A) W		2,502		2,162		2,041		2,002		1,807		1,708		1,641		1,562		1,474		1,389		5,713		3,802		2,409		1,493		4,135		22,948
Risk Premium (B)		3,544		3,036		2,907		2,896		2,680		2,583		2,524		2,448		2,357		2,269		9,997		7,562		5,535		3,969		8,964		38,053
Loss ratio (A/B)		70.61%		71.23%		70.23%		69.13%		67.43%		66.14%		65.02%		63.80%		62.52%		61.20%		57.15%		50.28%		43.52%		37.62%		46.13%		60.31%
Non-participating health
Expected claim (A) W		590,405		583,230		573,153		568,725		571,852		579,135		584,229		581,174		579,119		583,735		3,000,916		3,137,041		3,208,093		3,180,572		16,703,148		13,134,371
Risk Premium (B)		581,127		568,861		555,090		544,123		537,203		534,923		534,007		528,281		525,082		530,053		2,663,552		2,682,334		2,651,537		2,535,672		11,330,546		11,246,343
Loss ratio (A/B)		101.60%		102.53%		103.25%		104.52%		106.45%		108.27%		109.40%		110.01%		110.29%		110.13%		112.67%		116.95%		120.99%		125.43%		147.42%		116.79%
Participating annuity & savings
Expected claim (A) W		1,403		1,208		1,024		861		709		582		472		396		346		310		1,289		1,560		2,335		3,498		27,818		14,741
Risk Premium (B)		2,840		2,573		2,337		2,115		1,894		1,701		1,532		1,394		1,327		1,290		6,696		8,701		11,792		15,240		72,628		48,235
Loss ratio (A/B)		49.41%		46.95%		43.80%		40.70%		37.42%		34.19%		30.84%		28.41%		26.09%		24.07%		19.26%		17.93%		19.80%		22.95%		38.30%		30.56%
Non-participating annuity & savings
Expected claim (A) W		93		89		88		66		18		17		16		15		14		13		58		53		59		70		344		552
Risk Premium (B)		179		181		154		138		47		56		54		53		53		52		256		254		252		241		795		1,459
Loss ratio (A/B)		52.25%		49.06%		57.38%		47.49%		38.20%		31.06%		29.48%		28.25%		26.93%		25.26%		22.53%		20.88%		23.36%		29.19%		43.28%		37.85%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2023
		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 death
Expected claim (A) W		122,576		124,918		127,639		128,307		128,923		130,877		131,095		132,182		134,820		134,868		685,816		689,880		684,014		649,434		2,491,967		2,744,943
Risk Premium (B)		125,802		126,439		127,766		128,513		128,933		129,875		130,474		131,644		133,462		134,159		689,389		713,576		722,848		698,924		2,341,548		2,800,286
Loss ratio (A/B)		97.44%		98.80%		99.90%		99.84%		99.99%		100.77%		100.48%		100.41%		101.02%		100.53%		99.48%		96.68%		94.63%		92.92%		106.42%		98.02%
Variable death
Expected claim (A) W		54,255		54,072		54,145		54,057		54,059		54,362		54,424		54,581		54,745		54,771		282,164		297,508		317,227		327,141		1,401,416		1,245,824
Risk Premium (B)		68,750		68,308		68,227		68,089		67,937		68,144		68,475		69,096		69,863		70,707		372,093		403,263		421,114		402,458		994,515		1,493,408
Loss ratio (A/B)		78.92%		79.16%		79.36%		79.39%		79.57%		79.78%		79.48%		78.99%		78.36%		77.46%		75.83%		73.78%		75.33%		81.29%		140.91%		83.42%
Participating annuity & savings
Expected claim (A) W		470		445		428		410		392		371		354		338		317		299		1,289		937		534		246		407		4,820
Risk Premium (B)		1,149		1,000		923		853		777		702		627		562		498		438		1,600		1,027		643		305		498		8,365
Loss ratio (A/B)		40.91%		44.51%		46.41%		48.01%		50.37%		52.80%		56.50%		60.17%		63.68%		68.31%		80.58%		91.20%		83.05%		80.51%		81.73%		57.61%
Non-participating annuity & savings
Expected claim (A) W		6,587		6,107		5,806		5,578		5,298		5,065		4,861		4,673		4,454		4,179		18,310		13,931		10,094		6,359		5,285		69,390
Risk Premium (B)		9,136		8,341		7,873		7,475		7,057		6,707		6,411		6,153		5,831		5,432		23,770		17,771		13,150		8,794		9,221		92,821
Loss ratio (A/B)		72.10%		73.23%		73.74%		74.63%		75.07%		75.52%		75.81%		75.95%		76.39%		76.93%		77.03%		78.39%		76.76%		72.31%		57.31%		74.76%
Asset-linked annuity & savings
Expected claim (A) W		918		872		846		816		792		765		730		696		665		616		2,599		1,895		1,329		840		906		9,966
Risk Premium (B)		1,205		1,137		1,096		1,061		1,027		985		939		897		852		769		3,198		2,288		1,555		937		781		12,556
Loss ratio (A/B)		76.19%		76.69%		77.14%		76.96%		77.16%		77.70%		77.77%		77.59%		78.02%		80.13%		81.26%		82.80%		85.49%		89.66%		115.97%		79.37%
Direct-Par
Variable annuity & savings
Expected claim (A) W		8,048		7,336		6,732		6,167		5,679		5,258		4,878		4,535		4,219		3,870		15,067		9,890		6,174		3,511		4,387		66,461
Risk Premium (B)		9,959		9,142		8,399		7,700		7,060		6,515		6,016		5,545		5,091		4,672		18,581		12,644		8,574		5,600		11,820		84,541
Loss ratio (A/B)		80.82%		80.25%		80.15%		80.09%		80.44%		80.70%		81.07%		81.79%		82.88%		82.82%		81.09%		78.22%		72.01%		62.71%		37.12%		78.61%
Total
Expected claim (A) W		1,273,151		1,270,811		1,266,481		1,264,977		1,269,428		1,280,371		1,287,621		1,287,017		1,287,978		1,291,461		6,521,701		6,485,468		6,272,244		5,814,957		25,370,510		26,290,178
Risk Premium (B)		1,384,269		1,372,787		1,364,460		1,359,468		1,359,010		1,365,306		1,372,699		1,375,492		1,382,392		1,395,531		7,095,806		7,166,829		7,023,446		6,527,558		23,347,747		28,358,418
Loss ratio (A/B)		91.97%		92.57%		92.82%		93.05%		93.41%		93.78%		93.80%		93.57%		93.17%		92.54%		91.91%		90.49%		89.30%		89.08%		108.66%		92.71%

(*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, 2024 and 2023

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, 2024 and 2023 is as follows:

		2024		2023
Expected loss ratio (A)		93.11%		92.24%
Actual loss ratio (B)		96.26%		92.32%
Ratio of expected claims to actual claims (C=A-B) (%p)		(3.15)%		(0.08)%

(*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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost

		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 death
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 death
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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost (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 death
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 death
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, 2024 and 2023

(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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost (continued)

		2023
		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 death
Expected maintenance expense, etc. (A)		W 2,787		2,790		2,792		2,793		2,360		2,354		2,347		2,338		2,328		2,316		11,326		10,769		10,158		9,435		24,412		45,531
Planned maintenance cost (B)		4,004		3,561		3,159		2,825		2,543		2,299		2,106		1,942		1,806		1,691		7,231		5,732		4,513		3,390		5,273		33,468
Ratio (A/B)		69.60%		78.36%		88.39%		98.86%		92.80%		102.37%		111.42%		120.42%		128.91%		137.01%		156.62%		187.88%		225.09%		278.35%		462.97%		136.04%
Non-participating death
Expected maintenance expense, etc. (A)		W 93,347		91,345		89,864		88,433		75,834		73,620		72,196		70,888		69,627		68,291		326,561		299,509		276,069		250,368		919,149		1,369,059
Planned maintenance cost (B)		326,133		291,111		263,302		239,615		224,731		209,546		195,057		180,887		166,864		155,724		658,842		492,388		376,996		271,985		507,616		2,897,946
Ratio (A/B)		28.62%		31.38%		34.13%		36.91%		33.74%		35.13%		37.01%		39.19%		41.73%		43.85%		49.57%		60.83%		73.23%		92.05%		181.07%		47.24%
Participating health
Expected maintenance expense, etc. (A)		W 344		290		270		265		228		220		215		211		206		202		957		880		804		717		1,698		3,999
Planned maintenance cost (B)		133		102		90		84		74		68		64		60		57		53		223		165		123		89		152		1,000
Ratio (A/B)		257.72%		282.98%		302.05%		313.71%		307.86%		321.70%		335.33%		349.45%		363.78%		379.89%		429.29%		532.21%		656.43%		801.14%		1119.83%		399.90%
Non-participating health
Expected maintenance expense, etc. (A)		W 116,023		109,589		104,389		100,095		92,406		90,040		87,879		85,482		83,280		81,805		388,789		347,074		312,332		283,443		1,200,365		1,620,655
Planned maintenance cost (B)		360,510		326,281		299,751		278,354		261,412		247,802		235,809		225,738		216,931		209,490		962,223		773,439		618,222		580,794		1,854,415		3,987,724
Ratio (A/B)		32.18%		33.59%		34.83%		35.96%		35.35%		36.34%		37.27%		37.87%		38.39%		39.05%		40.41%		44.87%		50.52%		48.80%		64.73%		40.64%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,215		1,207		1,201		1,194		906		898		889		881		874		866		4,216		4,033		3,838		3,621		11,312		18,063
Planned maintenance cost (B)		44		34		28		23		20		17		15		14		13		12		58		54		50		45		113		311
Ratio (A/B)		2748.03%		3569.43%		4326.64%		5093.15%		4528.89%		5191.09%		5914.15%		6516.93%		6754.98%		7007.43%		7312.00%		7450.85%		7607.94%		7965.61%		10036.73%		5800.11%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 790		739		541		455		10		9		9		9		9		8		39		35		32		30		89		2,478
Planned maintenance cost (B)		1,233		1,148		847		699		15		14		14		13		12		12		52		42		35		28		60		3,814
Ratio (A/B)		64.07%		64.33%		63.91%		65.03%		65.22%		66.43%		67.21%		68.14%		69.47%		70.70%		74.74%		82.81%		92.94%		106.76%		147.88%		64.97%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost (continued)

		2023
		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 death
Expected maintenance expense, etc. (A)		W 25,778		25,249		24,863		24,549		21,294		20,915		20,582		20,304		20,095		19,805		94,703		87,978		81,660		74,335		264,923		392,672
Planned maintenance cost (B)		84,951		76,653		69,203		62,686		56,404		50,330		45,290		41,013		37,730		34,555		133,954		99,403		81,025		63,867		160,771		692,051
Ratio (A/B)		30.34%		32.94%		35.93%		39.16%		37.75%		41.56%		45.45%		49.51%		53.26%		57.32%		70.70%		88.51%		100.78%		116.39%		164.78%		56.74%
Variable death
Expected maintenance expense, etc. (A)		W 14,989		14,750		14,530		14,318		13,762		13,548		13,366		13,180		12,966		12,768		61,148		55,853		49,733		42,863		126,299		237,517
Planned maintenance cost (B)		51,121		46,008		41,806		37,802		33,953		30,653		27,834		25,186		22,679		20,949		85,908		66,066		55,895		45,669		94,437		430,066
Ratio (A/B)		29.32%		32.06%		34.76%		37.88%		40.53%		44.20%		48.02%		52.33%		57.17%		60.95%		71.18%		84.54%		88.97%		93.86%		133.74%		55.23%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 4,852		4,694		4,525		4,356		3,249		3,149		3,057		2,962		2,863		2,772		12,768		11,323		10,291		9,555		42,232		58,745
Planned maintenance cost (B)		3,433		3,026		2,603		2,235		1,984		1,799		1,644		1,504		1,381		1,278		5,238		3,888		3,054		2,532		6,398		26,352
Ratio (A/B)		141.32%		155.15%		173.84%		194.92%		163.76%		174.99%		185.98%		196.90%		207.32%		216.84%		243.75%		291.23%		336.94%		377.38%		660.08%		222.92%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 31,693		27,200		24,151		22,232		15,972		14,939		14,004		13,195		12,488		11,832		51,239		40,607		32,646		26,340		79,487		248,754
Planned maintenance cost (B)		33,485		24,812		19,458		16,690		14,694		12,930		11,495		10,334		9,361		8,479		33,043		22,078		15,274		10,604		20,261		184,916
Ratio (A/B)		94.65%		109.62%		124.12%		133.20%		108.70%		115.53%		121.83%		127.68%		133.40%		139.54%		155.07%		183.93%		213.73%		248.38%		392.32%		134.52%
Asset-linked annuity & savings
Expected maintenance expense, etc. (A)		W 2,661		2,462		2,314		2,178		1,596		1,500		1,416		1,342		1,259		1,109		4,725		3,660		2,972		2,562		10,010		23,684
Planned maintenance cost (B)		2,543		2,268		2,071		1,893		1,718		1,579		1,453		1,336		1,199		926		3,559		2,186		1,327		828		1,345		18,797
Ratio (A/B)		104.63%		108.54%		111.73%		115.05%		92.89%		95.03%		97.45%		100.43%		105.01%		119.79%		132.75%		167.45%		223.89%		309.39%		744.49%		126.00%
Direct-Par
Variable annuity & savings
Expected maintenance expense, etc. (A)		W 21,486		19,224		17,168		15,306		13,589		12,131		10,859		9,686		8,589		7,688		28,716		18,482		13,180		10,245		34,368		157,581
Planned maintenance cost (B)		16,707		13,018		11,151		9,350		7,951		6,809		5,553		5,072		4,394		3,857		13,798		8,245		5,136		3,251		5,948		89,658
Ratio (A/B)		128.61%		147.67%		153.96%		163.71%		170.92%		178.15%		195.57%		190.98%		195.45%		199.33%		208.12%		224.15%		256.60%		315.10%		577.78%		175.76%
Total
Expected maintenance expense, etc. (A)		W 315,965		299,539		286,608		276,174		241,206		233,323		226,819		220,478		214,584		209,462		985,187		880,203		793,715		713,514		2,714,344		4,178,738

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

Planned maintenance cost (B)		884,297		788,022		713,469		652,256		605,499		563,846		526,334		493,099		462,427		437,026		1,904,129		1,473,686		1,161,650		983,082		2,656,789		8,366,103
Ratio (A/B)		35.73%		38.01%		40.17%		42.34%		39.84%		41.38%		43.09%		44.71%		46.40%		47.93%		51.74%		59.73%		68.33%		72.58%		102.17%		49.95%

(*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, 2024 and 2023

(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:

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	43,272,230		433,569		1,827,956		45,533,755
Insurance revenue:
Contracts under the modified retrospective approach		(469,550)		-		-		(469,550)
Contracts under the fair value approach		(1,659,168)		-		-		(1,659,168)
Contracts after transition		(729,672)		1,502		18		(728,152)
		(2,858,390)		1,502		18		(2,856,870)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,670,370		1,670,370
Adjustments to liabilities for incurred claims		-		-		27,806		27,806
Losses and reversals of losses on onerous contracts		-		78,060		-		78,060
Amortization of insurance acquisition cash flows		354,959		-		-		354,959
Experience adjustments to insurance acquisition cash flows that are not related to future service		(28,771)		-		-		(28,771)
Others		(1,070)		(17,759)		-		(18,829)
		325,118		60,301		1,698,176		2,083,595
Investment components and premium refunds		(4,769,963)		-		4,769,963		-
Insurance finance income or expenses recognized in:
Profit or loss		1,639,327		2,240		63,927		1,705,494
Other comprehensive income		3,188,992		5,305		3,305		3,197,602
		4,828,319		7,545		67,232		4,903,096
Cash flows:
Premiums received		6,895,862		-		-		6,895,862
Insurance acquisition cash flows		(1,583,731)		-		-		(1,583,731)
Claims and other insurance service expenses paid		(6,708)		-		(1,607,032)		(1,613,740)
Investment components received (paid) and premium refunds		-		-		(4,941,398)		(4,941,398)
		5,305,423		-		(6,548,430)		(1,243,007)
Other changes		6		(6)		-		-
Closing balance:
Insurance contract liabilities	W	46,102,743		502,911		1,814,915		48,420,569

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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)

		2023
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	40,715,882		402,680		1,809,940		42,928,502
Insurance revenue:
Contracts under the modified retrospective approach		(554,687)		-		-		(554,687)
Contracts under the fair value approach		(1,672,506)		-		-		(1,672,506)
Contracts after transition		(413,428)		-		-		(413,428)
		(2,640,621)		-		-		(2,640,621)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,542,097		1,542,097
Adjustments to liabilities for incurred claims		-		-		11,529		11,529
Losses and reversals of losses on onerous contracts		-		41,393		-		41,393
Amortization of insurance acquisition cash flows		256,378		-		-		256,378
Experience adjustments to insurance acquisition cash flows that are not related to future service		(25,768)		-		-		(25,768)
Others		3,819		(16,549)		-		(12,730)
		234,429		24,844		1,553,626		1,812,899
Investment components and premium refunds		(5,281,435)		-		5,281,435		-
Insurance finance income or expenses recognized in:
Profit or loss		2,070,718		2,611		62,857		2,136,186
Other comprehensive income		2,942,875		3,439		1,172		2,947,486
		5,013,593		6,050		64,029		5,083,672
Cash flows:
Premiums received		6,208,523		-		-		6,208,523
Insurance acquisition cash flows		(977,431)		-		-		(977,431)
Claims and other insurance service expenses paid		(715)		-		(1,525,937)		(1,526,652)
Investment components received (paid) and premium refunds		-		-		(5,355,137)		(5,355,137)
		5,230,377		-		(6,881,074)		(1,650,697)
Other changes		5		(5)		-		-
Closing balance:
Insurance contract liabilities	W	43,272,230		433,569		1,827,956		45,533,755

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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:

		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, 2024 and 2023

(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)

			2023
			Liability for remaining coverage		Liability for incurred claims				Total
												Estimates of present value of future cash flows		Risk adjustment for non-financial risk
Opening balance:
Insurance contract liabilities		W	33		146		10		189
Insurance revenue			(406)		-		-		(406)
Insurance service expenses:
Incurred claims and other insurance service expenses			33		842		4		879
Adjustments to liabilities for incurred claims			-		(3)		(7)		(10)
Losses and reversals of losses on onerous contracts			23		-		-		23
			56		839		(3)		892
Investment components and premium refunds			(9)		9		-		-
Insurance finance income or expenses recognized in:
Profit or loss			-		4		-		4
Other comprehensive income			-		2		-		2
			-		6		-		6
Cash flows:
Premiums received			457		-		-		457
Insurance acquisition cash flows			(33)		-		-		(33)
Claims and other insurance service expenses paid			-		(864)		-		(864)
Investment components received (paid) and premium refunds			-		(9)		-		(9)
			424		(873)		-		(449)
Closing balance:
Insurance contract liabilities		W	98		127		7		232

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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:

		2024
		Estimates of present value of future cash flows			Risk adjustment for non-financial risk			Contractual service margin (CSM)
											Contracts under modified retrospective approach		Contracts under fair value approach		Contract after transition		Subtotal			Total
Opening balance:
Insurance contract liabilities	W	37,213,496				1,151,534		1,906,494		3,953,330		1,308,901		7,168,725				45,533,755
Changes that relate to future service:
Changes in estimates that adjust the CSM		639,742				91,383		(170,666)		(190,874)		(369,585)		(731,125)				-
Changes in estimates that do not adjust the CSM		50,474				(338)		-		-		460		460				50,596
Contracts initially recognized in the period		(1,395,424)				157,124		-		-		1,265,763		1,265,763				27,463
		(705,208)				248,169		(170,666)		(190,874)		896,638		535,098				78,059
Changes that relate to current service:
CSM recognized for services provided		-				-		(158,399)		(331,569)		(242,913)		(732,881)				(732,881)
Change in risk adjustment		-				(119,363)		-		-		-		-				(119,363)
Experience adjustments		(26,896)				-		-		-		-		-				(26,896)
		(26,896)				(119,363)		(158,399)		(331,569)		(242,913)		(732,881)				(879,140)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		43,958				(16,152)		-		-		-		-				27,806
Insurance finance income or expenses recognized in:
Profit or loss		1,408,033				41,610		57,572		116,537		81,742		255,851				1,705,494
Other comprehensive income		3,156,681				40,921		-		-		-		-				3,197,602
		4,564,714				82,531		57,572		116,537		81,742		255,851				4,903,096
Cash flows:
Premiums received		6,895,862				-		-		-		-		-				6,895,862
Insurance acquisition cash flows		(1,583,731)				-		-		-		-		-				(1,583,731)
Claims and other insurance service expenses paid		(1,613,740)				-		-		-		-		-				(1,613,740)
Investment components received (paid) and premium refunds		(4,941,398)				-		-		-		-		-				(4,941,398)
		(1,243,007)				-		-		-		-		-				(1,243,007)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

Closing balance:
Insurance contract liabilities	W	39,847,057		1,346,719		1,635,001		3,547,424		2,044,368		7,226,793		48,420,569

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)

		2023
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)								Total
								Contracts under modified retrospective approach		Contracts under fair value approach		Other contracts			Subtotal
Opening balance:
Insurance contract liabilities	W	34,851,880		1,151,709		2,344,826		3,885,156		694,931		6,924,913		42,928,502
Changes that relate to future service:
Changes in estimates that adjust the CSM		285,110		(84,264)		(298,984)		274,674		(176,536)		(200,846)		-
Changes in estimates that do not adjust the CSM		30,079		(4,204)		-		-		-		-		25,875
Contracts initially recognized in the period		(991,532)		105,273		-		-		901,777		901,777		15,518
		(676,343)		16,805		(298,984)		274,674		725,241		700,931		41,393
Changes that relate to current service:
CSM recognized for services provided		-		-		(206,316)		(331,639)		(158,870)		(696,825)		(696,825)
Change in risk adjustment		-		(101,283)		-		-		-		-		(101,283)
Experience adjustments		(82,536)		-		-		-		-		-		(82,536)
		(82,536)		(101,283)		(206,316)		(331,639)		(158,870)		(696,825)		(880,644)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		21,944		(10,415)		-		-		-		-		11,529
Insurance finance income or expenses recognized in:
Profit or loss		1,853,897		42,583		66,968		125,139		47,599		239,706		2,136,186
Other comprehensive income		2,895,351		52,135		-		-		-		-		2,947,486
		4,749,248		94,718		66,968		125,139		47,599		239,706		5,083,672
Cash flows:
Premiums received		6,208,523		-		-		-		-		-		6,208,523
Insurance acquisition cash flows		(977,431)		-		-		-		-		-		(977,431)
Claims and other insurance service expenses paid		(1,526,652)		-		-		-		-		-		(1,526,652)
Investment components received (paid) and premium refunds		(5,355,137)		-		-		-		-		-		(5,355,137)
		(1,650,697)		-		-		-		-		-		(1,650,697)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

Closing balance:
Insurance contract liabilities	W	37,213,496		1,151,534		1,906,494		3,953,330		1,308,901		7,168,725		45,533,755

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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:

		2024
Changes that relate to future service		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
New contracts	W	(1,395,424)		157,124		1,265,763
Contracts other than new contracts
Effect of changes in assumptions
Surrender 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.

		2023
Changes that relate to future service		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
New contracts	W	(991,532)		105,273		901,777
Contracts other than new contracts
Effect of changes in assumptions
Surrender rates (*)		30,886		-		(36,004)
Risk rates		214,882		-		(164,448)
Expense ratio		(78,272)		-		87,618
Other assumption		(271,845)		-		258,056
		(104,349)		-		145,222
Quantity changes and differences between expected and actual investment component		419,538		(88,468)		(371,943)
Loss component		-		-		25,875
		315,189		(88,468)		(200,846)
	W	(676,343)		16,805		700,931

(*) 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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(j) An analysis of insurance contract initially recognized for the years ended December 31, 2024 and 2023 is as follows – Contracts other than those to which the premium allocation approach has been applied:

		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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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	2,789,323		975,692		(4,765,475)		98,683		901,777		-
Onerous group of contracts		153,296		63,306		(207,674)		6,590		-		15,518
	W	2,942,619		1,038,998		(4,973,149)		105,273		901,777		15,518

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied:

		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 death 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 death		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 death		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 death		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
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, 2024 and 2023

(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, 2024 and 2023 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

		2023
		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 death W		1,001		983		965		948		931		914		897		880		863		845		3,925		3,391		2,837		2,239		3,731		25,350
Non-participating death		141,411		115,836		100,546		91,916		85,947		80,266		75,095		71,063		68,333		65,864		296,403		237,877		183,398		150,354		418,452		2,182,761
Participating health		315		265		243		233		209		194		183		172		160		150		607		409		278		191		318		3,927
Non-participating health		137,538		122,544		111,592		103,090		96,480		90,903		86,080		81,364		77,649		74,849		335,866		282,364		238,454		195,997		635,334		2,670,104
Participating annuity & savings		172		143		124		107		92		79		68		58		51		45		166		128		123		123		482		1,961
Non-participating annuity & savings		1		1		1		1		1		1		1		1		1		1		3		3		2		2		4		24
Indirect-Par
Non-participating death		42,796		36,849		32,557		29,780		27,587		25,821		24,670		23,796		23,076		22,383		101,614		85,170		69,317		55,503		126,587		727,506
Variable death		14,526		13,117		12,048		11,175		10,430		9,797		9,245		8,770		8,351		7,990		35,542		29,298		24,346		19,630		43,158		257,423
Participating annuity & savings		3,289		3,288		3,261		3,198		3,110		3,016		2,930		2,834		2,707		2,567		10,671		7,218		4,374		2,341		2,273		57,077
Non-participating annuity & savings		83,722		74,195		66,461		60,872		56,244		52,213		48,502		45,108		41,981		38,936		159,649		111,321		73,765		46,060		52,969		1,011,998
Asset-linked annuity & savings		12,077		11,110		10,486		9,961		8,989		7,761		7,165		6,732		6,242		5,377		20,975		13,062		7,917		4,702		5,442		137,998
Direct-Par
Variable annuity & savings		8,884		8,071		7,304		6,620		6,000		5,458		4,973		4,531		4,069		3,599		13,147		7,759		4,570		2,703		4,907		92,595
W		445,732		386,402		345,588		317,901		296,020		276,423		259,809		245,309		233,483		222,606		978,568		778,000		609,381		479,845		1,293,657		7,168,724

(*) 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, 2024 and 2023

(In millions of Korean won)

25. Insurance contract liabilities (continued)

(l) As of December 31, 2024 and 2023, the composition and fair value amounts of the underlying items of insurance contracts with direct participation features are as follows:

Underlying items (*)		2024		2023
Cash and due from banks at amortized cost	W	294,963		322,933
Financial assets at fair value through profit or loss		3,561,126		3,934,491
Loans at amortized cost		32,489		66,790
Derivatives		(150)		674
Others		69,608		81,468
	W	3,958,036		4,406,356

(*) The carrying amounts of financial assets (liabilities) for variable insurance were W 5,498,129 million and W 5,940,453 million as of December 31, 2024 and 2023, respectively.

26. Reinsurance contract assets (liabilities)

(a) The carrying amount of reinsurance contract assets (liabilities) as of December 31, 2024 and 2023 is as follows:

		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
		2023
		Life		Health		Combined		Total
Reinsurance contract assets	W	-		-		62,815		62,815
Reinsurance contract liabilities		(27,045)		(66,075)		-		(93,120)
Net reinsurance contract assets (liabilities)	W	(27,045)		(66,075)		62,815		(30,305)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liabilities) 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:

		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

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liabilities) 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)

		2023
		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	8,452		5,237		45,328		59,017
Reinsurance contract liabilities		(106,247)		22,662		20,815		(62,770)
Net assets (liabilities)		(97,795)		27,899		66,143		(3,753)
Reinsurance revenue:
Recoveries on incurred claims and other incurred reinsurance service expenses		-		-		72,625		72,625
Changes in expected recoveries on past claims		-		-		(32,150)		(32,150)
Recognition and reversal of loss recovery component		-		1,383		-		1,383
Others		-		(1,498)		-		(1,498)
		-		(115)		40,475		40,360
Reinsurance service expenses:
Reinsurance contracts under the fair value approach		(52,637)		-		-		(52,637)
Other reinsurance contracts		(18,994)		-		-		(18,994)
		(71,631)		-		-		(71,631)
Investment components and reinsurance premium refunds		(152,684)		-		152,684		-
Reinsurance finance income and expenses recognized in:
Profit or loss		(2,157)		29		1,264		(864)
Other comprehensive income		(28,776)		384		117		(28,275)
		(30,933)		413		1,381		(29,139)
Cash flows:
Reinsurance premiums paid		229,288		-		-		229,288
Recoveries from reinsurance		-		-		(43,378)		(43,378)
Investment components received and reinsurance premium refunds		-		-		(152,052)		(152,052)
		229,288		-		(195,430)		33,858
Closing balance:
Reinsurance contract assets		19,436		5,055		38,324		62,815
Reinsurance contract liabilities		(143,191)		23,142		26,929		(93,120)
Net assets (liabilities)	W	(123,755)		28,197		65,253		(30,305)

(c) There have been no reinsurance contract assets (liabilities) to which the premium allocation approach has been applied for the years ended December 31, 2024 and 2023.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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:

		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, 2024 and 2023

(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)

		2023
		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	(52,365)		16,522		47,210		47,650		94,860		59,017
Reinsurance contract liabilities		(168,825)		22,870		68,110		15,075		83,185		(62,770)
Net assets (liabilities)		(221,190)		39,392		115,320		62,725		178,045		(3,753)
Changes that relate to future service:
Changes in estimates that adjust the CSM		43,044		4,615		(71,098)		24,653		(46,445)		1,214
Contracts initially recognized in the period		(9,696)		1,213		-		8,653		8,653		170
		33,348		5,828		(71,098)		33,306		(37,792)		1,384
Changes that relate to current service:
CSM recognized for services received		-		-		(8,120)		(7,244)		(15,364)		(15,364)
Change in risk adjustment		-		(2,482)		-		-		-		(2,482)
Experience adjustments		17,341		-		-		-		-		17,341
		17,341		(2,482)		(8,120)		(7,244)		(15,364)		(505)
Changes that relate to past service:
Adjustments to incurred claims component		(31,111)		(1,039)		-		-		-		(32,150)
Reinsurance finance income or expenses recognized in:
Profit or loss		(8,683)		1,712		3,188		2,919		6,107		(864)
Other comprehensive income		(31,970)		3,695		-		-		-		(28,275)
		(40,653)		5,407		3,188		2,919		6,107		(29,139)
Cash flows:
Reinsurance premiums paid		229,288		-		-		-		-		229,288
Recoveries from reinsurance		(43,378)		-		-		-		-		(43,378)
Investment components received and reinsurance premium refunds		(152,052)		-		-		-		-		(152,052)
		33,858		-		-		-		-		33,858
Closing balance:
Reinsurance contract assets		(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)	W	(208,407)		47,106		39,290		91,706		130,996		(30,305)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023

(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, 2024 and 2023 is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		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 contract	W	(159,792)			-			109,822			3,077			47,383		490
Net gain group of contract		(64,074)			-			68,159			1,574			(4,669)		990
	W	(223,866)			-			177,981			4,651			42,714		1,480
		2023
		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 contract	W	(70,076)			-			60,019			1,063			9,036		42
Net gain group of contract		(6,322)			-			6,683			150			(383)		128
	W	(76,398)			-			66,702			1,213			8,653		170

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(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, 2024 and 2023 in profit or loss is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		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	5,256		4,777		12,166		15,305		33,456		70,960
Reinsurance contract liabilities		5,627		4,895		11,408		12,182		25,924		60,036
	W	10,883		9,672		23,574		27,487		59,380		130,996

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

27. Investment contract liabilities

Investment contract liabilities as of December 31, 2024 and 2023 are as follows:

		2024		2023
Financial liabilities at amortized cost (*)	W	1,332,468		1,831,826

(*) The amount is policyholders’ reserve for retirement pension contracts.

28. Policyholders’ equity adjustments

It requires estimating the related cash flows from dividends and measuring liabilities using discount rates that reflect assumptions and risks for participating insurance contracts, as per K-IFRS 1117.

In response to concerns regarding the discrepancy between past accounting practices under K-IFRS 1104 and the accurate representation of obligations to participating policyholders, the Group has adopted the methodology prescribed in Article 4-1(2) of the Insurance Supervisory Regulations to calculate liabilities associated with potential future obligations arising from unrealized gains on assets as of the reporting period end.

Policyholders’ equity adjustments are calculated in accordance with the Regulations on Supervision of Insurance Business. Details of policyholders’ equity adjustments as of December 31, 2024 and 2023 are as follows:

		2024		2023
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(362)		(1,025)

29. Borrowings

Borrowings as of December 31, 2024 and 2023 are as follows:

Type of borrowings				Currency		2024		2023
Borrowings in won		Other borrowings (*)		KRW	W	23,291		17,570
Borrowings in foreign currency				USD		252		265
					W	23,543		17,835

(*) 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, 2024 and 2023

(In millions of Korean won)

30. Debentures

Debentures as of December 31, 2024 and 2023 are as follows:

		2024
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond<br><br>(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.

		2023
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond<br><br>(unsecured) (*1)		KRW		2023.06.09		2033.06.09		5.20%		10 years	W	300,000		299,331

(*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.

31. Other financial liabilities

Other financial liabilities as of December 31, 2024 and 2023 are as follows:

		2024		2023
Account payables	W	21,701		24,037
Accrued expense		477,451		243,679
Rental deposits		657		185
	W	499,809		267,901

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

32. 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, 2024 and 2023 are as follows:

		2024		2023
Present value of defined benefit obligations	W	139,703		124,188
Fair value of plan assets		(154,730)		(156,648)
Recognized liabilities (assets) for defined benefit obligations	W	(15,027)		(32,460)

(b) Changes in the present value of defined benefit obligation for the years ended December 31, 2024 and 2023 were as

follows:

		2024		2023
Beginning balance	W	124,188		121,828
Current service cost		8,787		7,832
Interest expense		6,374		6,225
Remeasurement loss (gain):
Demographic assumptions		(107)		-
Financial assumptions		12,668		9,708
Experience adjustment		2,264		1,198
		14,825		10,906
Past service cost		40		92
Settlement		-		(160)
Salaries		(14,730)		(22,012)
Severance payment transferred from (to) associates		218		(523)
Exchange rate effect		1		-
Ending balance	W	139,703		124,188

(c) Plan assets

Changes in the Plan assets for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Beginning balance	W	156,648		166,628
Expected return		8,036		9,093
Remeasurement factors		(2,407)		(1,723)
Contributions		-		3,004
Benefits Paid		(7,007)		(20,532)
Severance payment transferred from (to) associates		(540)		178
Ending balance	W	154,730		156,648

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

32. Employee benefits (continued)

(d) The gains and losses related to the defined benefit plan

The gains and losses related to the defined benefit plan for the years ended December 31, 2024 and 2023 are as follows:

(*1)(*2)		2024		2023
Current service cost	W	8,787		7,832
Interest expense		6,374		6,225
Past service cost		40		92
Settlement gain		-		(160)
Expected return on plan assets		(8,036)		(9,093)
	W	7,165		4,896

(*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, W 269 million and W167 million for the years ended December 31, 2024 and 2023, respectively, were transferred to property and equipment, and intangible assets.

(*2) Termination benefits of W 24,251 million and W 36,538 million included in salaries were paid for the years ended December 31, 2024 and 2023, respectively.

(e) The gains and losses related to the defined contribution plan for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Operating expenses	W	4,950		4,525
Investment administration expenses		303		309
Other operating expenses		932		900
Total (*)	W	6,185		5,734

(*) Of the above gains and losses related to the defined contribution plan for the year ended December 31, 2024, W 156 million (W105 million for the year ended December 31, 2023) 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, 2024 and 2023 are as follows:

	2024				2023
	Ratio		Amount		Ratio		Amount
Time deposits	49.78%	W	77,025		57.16%	W	89,544
Retirement pension insurance	49.33%		76,326		40.42%		63,316
Others	0.89%		1,379		2.42%		3,787
	100.00%	W	154,730		100.00%	W	156,647

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

32. Employee benefits (continued)

(g) Actuarial assumptions as of December 31, 2024 and 2023 are as follows:

		2024		2023		Description
Discount rate (expected rate of return)		4.49%~4.66%		5.20%		AA0 corporate bond yields
Future salary increase rate		4.03% + increase rate		3.65% + increase rate		Average for the past 5 years
Retirement rate		2% ~3%		2% ~3%		Average for the past 3 years
Weighted average maturity		10.73~10.9 years		11.2~11.5 years

(h) Sensitivity analysis

As of December 31, 2024 and 2023, changes in present value of the defined benefit obligations resulted from the change in key assumption are as follows:

		2024				2023
		Increase		Decrease		Increase		Decrease
Discount rate (1%p movement)	W	(13,667)		15,745		(12,359)		14,301
Future salary increase rate<br><br>(1%p movement)		15,690		(13,871)		14,393		(12,651)

(i) Defined contribution plan for the year ended December 31, 2025, is expected to be W 10,000 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

33. Provisions

(a) Details of provisions

Details of provisions at the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Provisions for restoration	W	19,289		18,426
Unused credit commitments provisions		253		1,854
Other long-term employee benefits provisions		13,802		13,361
Litigation provisions		352		862
Other provisions (*)		42,024		45,069
	W	75,720		79,572

(*) 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.

(b) Changes in unused credit commitments

Change in unused credit commitments for the years ended December 31, 2024 and 2023 are as follows:

		2024
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	652		1,202		-		1,854
Transfer (from) to 12-month expected credit losses		-		-		-		-
Transfer (from) to lifetime expected credit losses		-		-		-		-
Transfer (from) to impaired financial assets		-		-		-		-
Reversal		(405)		(1,196)		-		(1,601)
Ending balance	W	247		6		-		253
		2023
---	---	---	---	---	---	---	---	---
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	7		-		-		7
Transfer (from) to 12-month expected credit losses		-		-		-		-
Transfer (from) to lifetime expected credit losses		-		-		-		-
Transfer (from) to impaired financial assets		-		-		-		-
Provision		645		1,202		-		1,847
Ending balance	W	652		1,202		-		1,854

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

33. Provisions (continued)

(c) Changes in provisions

Change in provisions for the years ended December 31, 2024 and 2023 are as follows:

Classification		Provisions for restoration				Other long-term employee benefits provisions				Litigation provisions				Other provisions
			2024		2023		2024		2023		2024		2023		2024		2023
Beginning balance	W	18,426		18,412		13,361		13,270		862		809		45,069		53,394
Provision (Reverse)		611		1,074		1,544		724		(510)		53		42,643		27,410
Amount used		(87)		(1,324)		(854)		(1,276)		-		-		(45,688)		(35,735)
Others (*)		339		264		(249)		643		-		-		-		-
Ending balance	W	19,289		18,426		13,802		13,361		352		862		42,024		45,069

(*) 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, 2024 and 2023

(In millions of Korean won)

33. 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, 2024 and 2023 are as follows

		2024		2023		Description
Discount rate		3.99%		4.70%		AA0 corporate bond yields
Future salary increase rate		4.03% + increase rate		3.65% + increase rate		Average for the past 5 years
Retirement rate		2% ~3%		2% ~3%		Average for the past 3 years

(e) Expected period of provision outflows

Expected period of provision outflows As of December 31, 2024 is as follows:

		2024
		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	20,000		3,394		16,000		606		-
Unused credit commitments provisions		253		140		106		5		2
Other long-term employee benefits provisions (*2)		13,953		1,322		3,286		1,831		7,514
Litigation provisions		352		-		-		352		-
Other provisions		42,024		24,905		4,846		2,765		9,508

(*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.

34. Other liabilities

Other liabilities as of December 31, 2024 and 2023 are as follows:

		2024		2023
Advance receipts	W	292		402
Unearned revenue		88,492		67,533
Deposits		37,349		32,409
Accrued VAT		632		269
Others		1,191		5,235
	W	127,956		105,848

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

35. Equity

• Equity as of December 31, 2024 and 2023 are as follows:

		2024		2023
Share capital:
Common stocks	W	578,274		578,274
Hybrid bonds:
Hybrid bonds		299,452		299,452
Capital surplus:
Capital premium		819,340		819,340
Other capital surplus		672		672
		820,012		820,012
Capital adjustment:
Stock options		1,461		1,461
Accumulated other comprehensive income, net of tax:
Losses on valuation of securities at fair value through other comprehensive income		(1,765,945)		(2,496,763)
Foreign currency translation adjustments for foreign operations		14,299		7,045
Net valuation loss from cash flow hedges		90,681		45,462
Net finance income from insurance contracts issued		218,610		2,572,059
Net finance income from reinsurance contracts held		11,736		13,280
Remeasurements of defined benefit liabilities		(29,028)		(16,345)
		(1,459,647)		124,738
Retained earnings:
Legal reserve		95,160		63,626
Voluntary reserve		3,810,489		64,346
Unappropriated retained earnings		2,895,766		6,471,225
		6,801,415		6,599,197
	W	7,040,967		8,423,134

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won, except per share data)

35. Equity (continued)

(b) Share capital

Share capital of the Group as of December 31, 2024 and 2023 are as follows:

		2024		2023
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

Details of Hybrid bonds as of December 31, 2024 and 2023 are as follows

		Issue date		Maturity date		Interest rate		2024		2023
Unsecured interest-bearing hybrid bonds		2020-08-11		2050-08-11		3.60%	W	300,000		300,000
Issue cost								(756)		(756)
Deferred tax effects								208		208
							W	299,452		299,452

The above hybrid bonds can be redeemed early by the Group from five years after issuance, and the interest rate will be adjusted only once five years after the issuance date. On the other hand, when the hybrid bonds mature, the Group has the right to choose whether to extend the maturity of the hybrid bonds with the same terms and condition.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

35. Equity (continued)

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2024 and 2023 are as follows:

		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	(2,490,557)		7,045		45,462		2,572,059		13,280		(6,206)		(16,345)		124,738
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
Policyholders’ equity adjustment (*)		(664)		-		-		-		-		-		-		(664)
Remeasurements of the defined benefit liability		-		-		-		-		-		-		(17,232)		(17,232)
Effects of hedge		-		-		62,906		-		-		-		-		62,906
Effects of foreign<br><br>exchange rates		-		9,856		-		-		-		-		-		9,856
Tax effects		(261,823)		(2,602)		(17,687)		844,155		554		(305)		4,549		566,841
Reclassification of retained earnings		-		-		-		-		-		41		-		41
Ending balance	W	(1,760,628)		14,299		90,681		218,610		11,736		(5,317)		(29,028)		(1,459,647)

(*) The Group disaggregates and records the unrealized gains and losses of securities at fair value through other comprehensive income in accumulated other comprehensive income and policyholders’ equity adjustments in accordance with the Regulations 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, 2024 and 2023

(In millions of Korean won)

35. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		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	(4,578,163)		7,783		(60,015)		4,734,969		34,045		(10,102)		(7,040)		121,477
Change due to fair value		2,796,299		-		-		(2,947,489)		(28,275)		1,113		-		(178,352)
Change due to disposal		49,176		-		-		-		-		4,199		-		53,375
Policyholders’ equity adjustment (*)		(591)		-		-		-		-		-		-		(591)
Remeasurements of the defined benefit liability		-		-		-		-		-		-		(12,629)		(12,629)
Effects of hedge		-		-		143,789		-		-		-		-		143,789
Effects of foreign<br><br>exchange rates		-		(1,019)		-		-		-		-		-		(1,019)
Tax effects		(757,278)		281		(38,312)		784,579		7,510		(1,416)		3,324		(1,312)
Ending balance	W	(2,490,557)		7,045		45,462		2,572,059		13,280		(6,206)		(16,345)		124,738

(*) The Group disaggregates and records the unrealized gains and losses of securities at fair value through other comprehensive income in accumulated other comprehensive income and policyholders’ equity adjustments in accordance with the Regulations 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, 2024 and 2023

(In millions of Korean won, except per share data)

35. 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, 2024 and 2023 are as follows:

		2024		2023
Beginning balance	W	6,997		64,346
Expected reversal of regulatory reserve for loan losses (*)		(1,008)		(57,349)
Ending balance	W	5,989		6,997

(*) Adjustments due to the application of Korean IFRS 1117 was reflected in the expected reversal of regulatory reserves as of December 31, 2023.

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, 2024 and 2023 are as follows:

		2024		2023
Profit for the year	W	528,401		472,395
Reversal of regulatory reserve for loan losses (*1)		1,008		57,349
Adjusted income after the regulatory reserve for loan losses (*2)	W	529,409		529,744
Adjusted income per share after the reserve for<br><br>loan losses in won (*3)	W	4,484		4,487

(*1) Reversal of regulatory reserve for loan losses for the year ended December 31, 2023 includes adjustments due to the application of Korean IFRS 1117.

(*2) The adjusted profit after reflecting the provision for credit losses is not a figure determined by the accounting standards. It is derived assuming the inclusion of the reversal(transfer) of the provision for credit losses, considering the effects of policyholder share allocations and deferred tax impacts, into the net profit for the year.

(*3) Dividends 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, 2024 and 2023

(In millions of Korean won)

35. 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, 2024 and 2023 are as follows:

		2024		2023
Reserve for surrender value	W	3,449,210		-
Expected reserve for surrender value		188,906		3,449,210
	W	3,638,116		3,449,210

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, 2024 and 2023 are as follows:

		2024		2023
Guarantee reserve	W	354,282		-
Expected guarantee reserve		19,753		354,282
	W	374,035		354,282

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, 2024 and 2023

(In millions of Korean won)

36. Share-based payment

As of December 31, 2024, share-based payment agreement of Shinhan Financial Group provided to the Group’s executives and employees are as follows:

(a) Performance-linked stock option

(*)		2021			2022		2023			2024
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		64,322 shares		67,853 shares		64,894 shares			60,476 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, 2024 and 2023 are as follows:

		2024		2023
Performance-linked stock option	W	4,063		3,707

(c) Accrued expenses and intrinsic value

Accrued expenses and intrinsic value as of December 31, 2024 and 2023 are as follows:

		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 W 14 million.

		2023
		Accrued expenses		Intrinsic value (*1)
Performance-linked stock options (*2)	W	10,102		10,102

(*1) The intrinsic value for stock options vested at 2020 was calculated based on the stock price (W38,156) as of January 1, 2024, and the amount granted after that was calculated based on the closing price of the reporting date (W40,150).

(*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 W 14 million.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

37. Insurance revenue and insurance service expenses

Insurance revenue and insurance service expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024
		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)
Contracts not measured under the premium allocation approach		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)
Contracts not measured under the premium allocation approach		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, 2024 and 2023

(In millions of Korean won)

37. Insurance revenue and insurance service expenses (continued)

Insurance revenue and insurance service expenses for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Contracts under:				Other insurance contracts		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	205,311		1,277,408		90,712		1,573,431
Change in risk adjustment		28,644		62,489		24,791		115,924
Contractual service margin recognized for<br><br>services provided		206,316		331,639		158,870		696,825
Recovery of insurance acquisition cash flows		127,210		1,093		128,075		256,378
Others (*)		(12,794)		(123)		10,980		(1,937)
		554,687		1,672,506		413,428		2,640,621
Contracts measured under the premium allocation approach		-		-		406		406
Total insurance revenue	W	554,687		1,672,506		413,834		2,641,027
Insurance service expenses
Contracts not measured under the premium allocation approach:
Incurred claims and other insurance service expenses	W	211,593		1,226,729		103,775		1,542,097
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(5,174)		14,944		1,759		11,529
Losses on onerous contracts and<br><br>reversal of such losses		3,141		7,017		31,235		41,393
Amortization of insurance acquisition cash flows		127,210		1,093		128,075		256,378
Experience adjustments to insurance acquisition<br><br>cash flows that are not related to future service		376		2,855		(28,999)		(25,768)
Others (*)		(12,794)		(123)		187		(12,730)
		324,352		1,252,515		236,032		1,812,899
Contracts measured under the premium allocation approach		-		-		892		892
Total insurance service expenses	W	324,352		1,252,515		236,924		1,813,791

(*) 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, 2024 and 2023

(In millions of Korean won)

38. Income or expenses from reinsurance contracts held

Income or expenses from reinsurance contracts held for the years ended December 31, 2024 and 2023 are as follows:

		2024
		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 expense	W	28,837		29,006		57,843

(*) Others include allocation of loss recovery components, etc.

		2023
		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	67,051		5,574		72,625
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(29,952)		(2,198)		(32,150)
Recognition (reversals) of a loss-recovery component		(718)		2,101		1,383
Others (*)		(1,303)		(195)		(1,498)
Total reinsurance revenue	W	35,078		5,282		40,360
Contracts not measured under the premium allocation approach:
Expected claims and other reinsurance service expenses	W	41,537		7,296		48,833
Changes in risk adjustment		3,227		622		3,849
Contractual service margin recognized for services received		8,120		7,244		15,364
Experience adjustments for reinsurance premiums and<br><br>investment components not related to future service		1,056		4,002		5,058
Others (*)		(1,303)		(170)		(1,473)
Total reinsurance service expense	W	52,637		18,994		71,631

(*) 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, 2024 and 2023

(In millions of Korean won)

39. Insurance finance income (expenses)

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2024 and 2023 are as follows:

		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 financial 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, 2024 and 2023

(In millions of Korean won)

39. 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, 2024 and 2023 are as follows: (continued)

		2023
			General life		Variable		Retirement<br><br>(*3)		Total
Investment income (expenses):
Interest income (expenses)	W		1,370,420		99,178		(52,699)		1,416,899
Gain (loss) on valuation and transaction of financial instruments			248,620		595,884		(35,572)		808,932
Other investment income (expenses)			(80,044)		(1,224)		(2,608)		(83,876)
Investment income (expenses) recognized in other comprehensive income(*1)			2,861,741		-		132,835		2,994,576
			4,400,737		693,838		41,956		5,136,531
Finance income (expenses) from insurance contracts issued:
Interest income (expenses)			(1,477,844)		(652,833)		-		(2,130,677)
Effect of changes in interest rates and other financial assumptions			(2,958,444)		11,845		-		(2,946,599)
Foreign exchange income (expenses)			(6,402)		-		-		(6,402)
			(4,442,690)		(640,988)		-		(5,083,678)
Finance income (expenses) from insurance contracts recognized in profit or loss			(1,483,357)		(652,833)		-		(2,136,190)
Finance income (expenses) from insurance contracts recognized in other comprehensive income(*1)			(2,959,333)		11,845		-		(2,947,488)
Finance income (expenses) from reinsurance contracts held:
Interest income (expenses)			(864)		-		-		(864)
Effect of changes in interest rates and other financial assumptions			(28,275)		-		-		(28,275)
			(29,139)		-		-		(29,139)
Finance income (expenses) from reinsurance contracts recognized in profit or loss			(864)		-		-		(864)
Finance income (expenses) from reinsurance contracts recognized in other comprehensive income(*1)			(28,275)		-		-		(28,275)
Total finance income (expenses) recognized in profit or loss (*2)			54,775		41,005		(90,879)		4,901
Total finance income (expenses) recognized in other comprehensive income (*2)			(125,867)		11,845		132,835		18,813
Total	W		(71,092)		52,850		41,956		23,714

(*1) The financial 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, 2024 and 2023

(In millions of Korean won)

39. Insurance finance income (expenses) (continued)

(b) Financial gains and losses recognized in profit or loss for the years ended December 31, 2024 and 2023 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.

		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
		2023
---	---	---	---	---	---	---	---
		FV change related		Others		Total
Investment income (expenses)	W	525,608		1,616,347		2,141,955
Finance income (expenses) from insurance contracts issued		(525,608)		(1,610,582)		(2,136,190)
Finance income (expenses) from reinsurance contracts held		-		(864)		(864)
	W	-		4,901		4,901

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

40. Operating expenses

Operating expenses by nature for the years ended December 31, 2024 and 2023 are as follows:

		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.

		2023
		Claim adjustment expenses		Acquisition costs (*)		Maintenance<br><br>expenses		Investment management expenses		Other operating expenses		Total
Salaries	W	5,292		54,409		48,030		5,764		16,388		129,883
Bonus		1,379		14,737		14,479		1,596		4,115		36,306
Retirement benefits		402		3,715		3,286		428		36,702		44,533
Employee benefits		1,735		17,475		15,170		2,135		15,395		51,910
Amortization		351		24,993		21,143		481		1,654		48,622
Utilities		220		14,399		8,237		284		811		23,951
Commission		110		21,367		24,606		31,148		7,764		84,995
Taxes and dues		-		-		69,680		306		105		70,091
IT expenses		577		13		16,912		1,304		3,696		22,502
Proportional commission		-		677,930		-		-		20,647		698,577
Sales promotion expenses		-		100,567		-		-		6,202		106,769
Training expenses		-		78		-		-		5,862		5,940
Others		10,480		47,781		27,926		202		22,468		108,857
	W	20,546		977,464		249,469		43,648		141,809		1,432,936

(*) 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, 2024 and 2023

(In millions of Korean won)

41. Investment administrative expenses

The investment administrative expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Salaries	W	3,319		3,448
Bonus		1,118		934
Retirement benefits		1,389		1,350
Employment benefits		1,385		1,557
Communication expenses		83		101
Fees		9,825		7,676
Taxes and dues		619		359
Others		1,911		2,778
	W	19,649		18,203

42. Net interest income and expenses

(a) Details of interest income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Interest income on:
Deposits at amortized cost	W	62,867		71,775
Deposits at fair value through profit or loss		133		-
Securities at fair value through profit or loss		96,013		118,195
Securities at fair value through other comprehensive income		1,109,758		1,075,216
Securities at amortized cost		129,179		133,050
Loans at amortized cost		145,331		163,571
Others		3,697		2,687
	W	1,546,978		1,564,494

(b) Details of interest expense for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Interest expenses on:
Borrowings	W	-		295
Bonds issued		15,761		33,928
Lease liabilities		2,938		3,062
Others		60,027		110,310
	W	78,726		147,595

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

43. Provision for (Reversal of) credit loss allowance

Details of provision for (reversal of) credit loss allowance for the years ended December 31, 2024 and 2023 are as follows:

				2024		2023
Provisions (Reversal)		Securities at fair value through other comprehensive income	W	(1,257)		(4,245)
		Securities at amortized costs		43		(107)
		Loans at amortized costs		7,410		15,205
		Receivables at amortized costs(*)		1,636		3,473
		Allowance for unused credit commitments		(1,601)		1,846
			W	6,231		16,172

(*) It includes provision for (reversal of) credit loss allowance of due from banks at amortized cost.

44. Gain and losses on foreign exchange transactions

Details of foreign exchange transaction income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Gain on foreign exchange transactions:
Foreign transactions	W	69,316		32,035
Translations		645,604		145,456
		714,920		177,491
Loss on foreign exchange transactions:
Foreign transactions		12,326		33,325
Translations		171		14,526
		12,497		47,851
	W	702,423		129,640

45. Fees and commission income

Details of fees and commission income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Credit related fees	W	2,689		858
Loan commissions		7,198		7,174
Retirement pension management fee		2,238		4,004
Other fees and commissions in won		148		184
	W	12,273		12,220

46. Dividend income

Dividend income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Financial assets at fair value through profit or loss	W	28,111		23,619
Securities at fair value through other comprehensive income		4,399		6,864
	W	32,510		30,483

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

47. Other investment income or expenses

(a) Details of other investment income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Rental income	W	868		934
Others		234,202		209,881
	W	235,070		210,815

(b) Details of other investment expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Amortization expense on intangible assets	W	75,039		70,626
Depreciation expense on investment properties		212		212
Others		251,332		217,870
	W	326,583		288,708

48. Non-operating income or expenses

		2024		2023
Non-operating income:
Gain on cancellation of right-of-use asset	W	552		814
Gain on disposal of property and equipment		35		41
Miscellaneous gains		9,486		1,861
	W	10,073		2,716
Non-operating expenses:
Impairment of investment assets in associates		-		289
Loss on cancellation of right-of-use asset		218		529
Loss on disposal of property and equipment		693		1,941
Impairment of property and equipment		1,703		1,409
Impairment of intangible assets		167		4,675
Donations		7,977		5,553
Miscellaneous loss		2,062		7,522
		12,820		21,918
	W	(2,747)		(19,202)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

49. Income tax expense

(a) Income tax expense for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Current tax expense	W	16,092		27,072
Adjustment for prior periods		(11,728)		(8,114)
Temporary differences		(378,165)		149,508
Deferred tax recognized in other comprehensive income		566,828		-
Income tax recognized in other comprehensive income		14		(1,308)
Income tax expenses	W	193,041		167,158
Effective tax rate		26.76%		26.14%

(b) Reconciliation of net income before tax to income tax expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Net profit before income taxes	W	721,442		639,553
Income taxes at statutory tax rates		190,461		168,842
Adjustments:
Non-taxable income		(6,038)		(6,199)
Non-deductible expense		4,947		2,243
Tax rate difference		(3,036)		(4,086)
Effect of consolidated tax payment		(1,463)		2,164
Effect of changes in tax rates		-		(4,650)
Others		8,170		8,844
		2,580		(1,684)
Income tax expense	W	193,041		167,158
Effective tax rate		26.76%		26.14%

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

49. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows:

		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
Policyholders’ reserve adjustments		(271)		175		-		-		(96)
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	(1,645,271)		(188,663)		566,828		-		(1,267,106)

(*) 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, 2024 and 2023

(In millions of Korean won)

49. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Beginning<br><br>Balance		Profit or loss		Other comprehensive income		Equity adjustment		Ending<br><br>Balance
Deposits in foreign currency	W	(197)		(6)		-		-		(203)
Financial assets at fair value through profit or loss		19,674		(27,988)		-		-		(8,314)
Securities at fair value through other comprehensive income		690,067		235,839		(758,694)		-		167,212
Securities at amortized costs		(647,732)		639,280		-		-		(8,452)
Investments in associates		182		2,621		-		-		2,803
Derivative instruments		63,810		9,745		(38,312)		-		35,243
Accrued income		(123,744)		(16,005)		-		-		(139,749)
Evaluation cost of initial investment fund		(92)		92		-		-		-
Deemed dividend		5,404		3,131		-		-		8,535
Dividend receivables		120		-		-		-		120
Other liabilities		(122)		848		-		-		726
Provisions		1,630		(1,340)		-		-		290
Dividend cost recovery		23,426		(605)		-		-		22,821
Taxation of partnership		5,279		(4,166)		-		-		1,113
Guaranteed reserve		79,523		(79,523)		-		-		-
Reserves for dividends to policyholders		1,550		(1,550)		-		-		-
Reserve for loss from participating insurance		306		(306)		-		-		-
Reserve for outstanding claims for matured contracts		12,159		(714)		-		-		11,445
Deferred acquisition costs		(665)		665		-		-		-
Property and equipment, intangible assets		10,537		(1,520)		-		-		9,017
Other accrued expense		25,521		1,105		-		-		26,626
Loan origination cost (fees)		(730)		781		-		-		51
Share-based payment		2,213		450		-		4		2,667
Defined benefit obligations		(9,643)		(2,724)		3,324		-		(9,043)
Vehicles for business use (depreciation adjustment)		26		4		-		-		30
Subordinated foreign currency bonds		13,495		(13,495)		-		-		-
Interest payable		(24)		24		-		-		-
Accrued interests (deposit)		5		(5)		-		-		-
Right-of-use assets		(1,086)		723		-		-		(363)
Uncollected commission clawbacks		12		-		-		-		12
Government subsidies		9		(8)		-		-		1
Loans		1,726		(7)		-		-		1,719
Deficit carried forward		10,523		(40)		-		-		10,483
Hybrid bonds		200		(1)		-		-		199
Legal provision		-		214		-		-		214
Policyholders’ reserve adjustments		-		(271)		-		-		(271)
Effect of change in discount rate under K-IFRS 1117		-		(1,719,508)		792,089		-		(927,419)
Surrender Value Reserve		-		(839,355)		-		-		(839,355)
Effect of K-IFRS 1117 transition		(1,672,143)		1,672,143		-		-		-
Others		(6,983)		(6,727)		280		-		(13,430)
	W	(1,495,764)		(148,199)		(1,313)		4		(1,645,272)

(*1) The local income tax rate has changed due to the revision of the Local Tax Act at the end of 2023, hence tax rate of 26.4% is applied for deferred tax assets (liabilities) expected to be realized after 2024.

(*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, 2024 and 2023

(In millions of Korean won)

49. Income tax expense (continued)

(d) As of December 31, 2024 and 2023, deferred income tax related to items recognized other than in profit or loss for the year are as follows:

		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	(3,392,342)		895,578		992,959		(262,141)		(2,399,383)		633,437
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	168,970		(43,319)		(2,151,225)		566,829		(1,982,255)		523,510
		January 1, 2023				Changes				December 31, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		Amount		Tax effect		Amount		Tax effect		Amount		Tax effect
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(6,242,538)		1,654,274		2,850,196		(758,696)		(3,392,342)		895,578
Insurance and reinsurance finance income (expenses)		6,488,455		(1,719,440)		(2,975,765)		792,090		3,512,690		(927,350)
Remeasurement of defined benefit liabilities		(9,577)		2,538		(12,629)		3,324		(22,206)		5,862
Stock options		1,992		(528)		(7)		4		1,985		(524)
Gains (losses) on valuation of derivatives for cash flow hedge		(85,012)		23,746		145,040		(38,312)		60,028		(14,566)
Hybrid bonds		(755)		208		-		-		(755)		208
Gains and losses from translation of foreign operations		10,589		(2,806)		(1,019)		279		9,570		(2,527)
	W	163,154		(42,008)		5,816		(1,311)		168,970		(43,319)

(e) Current tax assets and liabilities

Current tax assets and liabilities as of December 31, 2024 and 2023 are as follows:

		2024		2023
Current tax assets
Income tax receivables (refund of consolidated tax payment)	W	82,811		71,169
Current tax liabilities
Income tax payables	W	(4,248)		(55)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

49. 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, 2024 and 2023 are as follows:

		2024		2023
Deferred tax assets	W	198,923		301,327
Deferred tax liabilities		(1,466,029)		(1,946,599)
Current tax assets		82,811		71,169
Current tax liabilities		(4,248)		(55)

(g) In accordance with the Global Anti-Base Erosion (GloBE) rules that were applied since 2024, top-up tax shall be paid for the difference between an effective rate for each jurisdiction to which each constituent entity of the Group belongs and the minimum rate of 15%. However, since most jurisdictions pass the requirements for exemption from application of transition period or the effective tax rate is more than 15%, the Group believes that there will be no significant top-up tax to be paid.

Therefore, the Group does not recognize the current tax expense in relation to the GloBE tax. The Group, in addition, applies exceptions to the recognition and disclosure of deferred tax assets and liabilities related to the GloBE tax, and thus does not recognize nor disclose the deferred tax assets and liabilities related to the GloBE tax.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

50. Contingencies and commitments

(a) Insurance agreement

As of December 31, 2024, the total number and amount of insurance contracts held by the Group are 6,905,100 contracts and W 182,596,053 million, respectively (6,849,786 contracts and W 187,235,323 million, respectively for the year ended December 31, 2023).

(b) Reinsurance agreements

As of December 31, 2024, the Group held reinsurance contracts with nine domestic and global reinsurance companies, including Korean Reinsurance Co., Ltd. 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. and Swiss Reinsurance Co. (“Swiss Re”), which proportionally reinsure insurance risks and interest rate risks.

(c) Pending litigations

As of December 31, 2024, the Group has 103 pending litigations (Total claim amounts of W 8,001 million). Among these, provisions related to the litigation were accounted for W 352 million, and liabilities for incurred claims related to insurance claims were accounted for W 5,450 million. As of December 31, 2024, the result of litigation is unpredictable.

(d) Bank overdraft agreement

As of December 31, 2024, 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, 2023).

(e) Unused credit provided and capital commitments

As of December 31, 2024, the Group's unused credit provided and capital commitments amounted to W 164,307 and W 1,374,078 million, respectively (W 424,203 and W 1,385,007 million, respectively as of December 31, 2023).

(f) Other commitments

As of December 31, 2024 and 2023, the details of payment guarantee are as follows:

Guarantee provider		2024		2023		Type of guarantee
Seoul Guarantee Insurance Co., Ltd.	W	2,281		3,202		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, 2024 and 2023

51. Related parties

(a) Related parties as of December 31, 2024 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 AI 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, 2024 and 2023

51. Related parties (continued)

(a) Related parties as of December 31, 2024 are as follows: (continued)

Entities under common control		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, 2024 and 2023

51. Related parties (continued)

(a) Related parties as of December 31, 2024 are as follows: (continued)

Entities under common control		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) (*1)
Associates		iPIXEL Co., Ltd.
		Findvalue JD Fund No.1
		IGIS Private Real Estate Investment Trust 517-1
Associates of entities under common control		SBC PFV Co., Ltd (formerly Seocho Information Command Complex Development Project PFV1, 2)
		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.3
		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. (*1)
Others		Shinhan Life Shining Foundation

(*1) It was newly included as a related party, as of December 31, 2024.

(*2) Midas Asset Global CRE Debt Private Fund No.6, Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 and IMM Long-term Solution Private Equity Fund were excluded from the related parties 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, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2024 and 2023 are as follows:

Related party				Account		2024		2023
The parent company
Shinhan Financial Group			Securities at fair value through other comprehensive income		W	29,898		29,130
			Accrued income			167		167
			Current tax assets			82,482		70,767
			Credit loss allowance			(13)		(14)
			Current tax liabilities			4,245		55
			Accrued expenses			12,466		10,102
Entities under common control
Shinhan Bank			Cash and due from banks at amortized cost			115,008		204,378
			Financial assets at fair value through profit or loss (*1)			37,234		33,385
			Rental deposits			4,536		7,012
			Right-of-use assets			3,160		3,872
			Accrued income			134		1,457
			Credit loss allowance			(20)		(134)
			Derivative assets			1,425		24,748
			Derivative liabilities			128,182		22,378
			Lease liabilities			3,452		4,169
			Accrued expenses			115		72
			Investment contract liabilities (*2)			144,698		209,253
Shinhan Securities Co., Ltd.			Cash and due from banks at amortized cost			24,231		38,612
			Account receivables			1,391		8,057
			Accrued income			2		67
			Derivative assets			25,593		11,746
			Derivative liabilities			25,798		17,413
			Loans (*3)			22,386		16,551
			Account payables			2,238		3,095
Shinhan Card Co., Ltd.			Cash and due from banks at amortized cost			11,540		21,280
			Securities at fair value through other comprehensive income			-		29,766
			Account receivables			1,936		733
			Accrued income			6,564		6,878
			Credit loss allowance			(424)		(705)
			Accrued expenses			4,220		3,955
			Investment contract liabilities (*2)			8,409		36,056
Jeju Bank			Cash and due from banks at amortized cost			86		53
			Accrued expenses			-		3
			Investment contract liabilities (*2)			14,339		13,832
Shinhan DS			Accrued expenses			734		986
Shinhan Asset Management Co., Ltd.			Financial assets at fair value through profit or loss (*1)			8,754		8,435
			Accrued expenses			831		1,346
Shinhan Capital Co., Ltd.			Loans (*3)			202		462
Shinhan Fund Partners			Accrued expenses			220		193
Total assets					W	353,684		499,690
Total liabilities					W	372,535		339,921

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2024 and 2023 are as follows: (continued)

(*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.

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows:

Related party		Account			2024			2023
The parent company
Shinhan Financial Group		Interest income	W	870			868
		Provision for (reversal of) credit loss allowance		(2)			(6)
		Commissions paid, etc.		4,879			4,737
Entities under common control
Shinhan Bank		Interest income		3,437			3,823
		Fee and commission income		6			576
		Gains related to derivatives		926			16,642
		Other income		88			-
		Insurance contract commissions		9,002			2,054
		Interest expense		90			26
		Provision for (reversal of) credit loss allowance		(119)			91
		Losses related to derivatives		160,292			38,954
		Commissions paid, etc.		4,847			5,603
		Distribution income (*1)		159			113
Shinhan Securities Co., Ltd.		Interest income		224			325
		Fees and commission income		9			275
		Gains related to derivatives		771			1,344
		Losses related to derivatives		17,821			1,116
		Commissions paid, etc.		1,448			1,916
		Other expense (*2)		1,790			(72)
Shinhan Card Co., Ltd.		Interest income		1,351			3,681
		Fees and commission income		76			172
		Other income		4,804			3,900
		Insurance contract commissions		16,566			18,105
		Provision for (reversal of) credit loss allowance		(320)			42
		Commissions paid, etc.		4,710			6,989
Jeju Bank		Insurance contract commissions		9			239
		Commissions paid, etc.		13			13
Shinhan DS		Commissions paid, etc.		27,671			24,089
Shinhan Asset Management Co., Ltd.		Interest income		-			1
		Distribution income (*1)		1,986			83
		Investment management expenses		10,086			6,055
Shinhan Capital Co., Ltd.		Other expense (*2)		(94)			57
Shinhan Savings Bank		Fees and commission income		20			15
Shinhan Venture Investment Co., Ltd.		Commissions paid, etc.		102			-
Shinhan Fund Partners		Commissions paid, etc.		937			821
Shinhan AI Co., Ltd.		Commissions paid, etc.		-			37

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

Related party		Account		2024		2023
Entities under common control
SHBNPP Green Energy Private Special Asset Investment Trust		Distribution income		1,031		1,034
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		Distribution income		1,446		1,447
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		Distribution income		1,098		1,064
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		636		696
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		189		192
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		Distribution income		2,943		1,454
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		Distribution income		1,875		2,000
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		Distribution income		2,376		2,351
SHBNPP Global Professional Investment Type Private Investment Trust No.12		Distribution income		400		725
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		Distribution income		3,758		3,574
Shinhan AIM FoF Fund 6-A		Distribution income		671		805
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		Distribution income		1,205		1,716
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		760		788
Shinhan AIM Investment Finance Specialized Investment Trust No. 1		Distribution income		354		279
SH Green New Deal Energy Special Asset Private Investment Trust No.3		Distribution income		1,896		1,018
Shinhan AIM Private Real Estate Investment Trust No.22-A		Distribution income		3,641		2,501
SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd		Distribution income		48		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		Distribution income		-		178
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		Distribution income		968		902
Shinhan AIM FoF Fund 4		Distribution income		-		205
Shinhan AIM Credit 4-B_Clover2		Distribution income		4,979		4,794
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		Distribution income		604		-
IMM Long-term Solutions Private Equity Fund (*3)		Distribution income		22,054		1,115
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		Distribution income		236		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		Distribution income		122		-
Shinhan One Flagship Real Estate Development Fund 1		Distribution income		304		-
Shinhan CIS III Private Investment Trust No.1		Distribution income		1,530		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

Related party		Account		2024		2023
Associates of entities under common control
Midas Asset Global CRE Debt Private Fund No.6		Distribution income		1,967		2,955
LB Scotland Amazon Fulfillment Center Fund 29		Distribution income		-		1,175
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		Distribution income		85		271
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24(*3)		Distribution income		445		792
Shinhan AIM Private Real Estate Investment Trust No.1		Distribution income		-		1,086
PCC Amberstone Private Equity Fund I		Distribution income		692		877
KIAMCO POWERLOAN TRUST 4TH		Distribution income		1,554		1,537
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		903		960
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		Distribution income		212		314
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		Distribution income		168		84
Shinhan AIM Private Fund of Fund 9-B		Distribution income		61		312
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		Distribution income		1,937		2,203
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		Distribution income		67		202
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		Distribution income		72		134
SHINHAN-NEO Core Industrial Technology Fund		Distribution income		53		-
SBC PFV Co., Ltd		Interest income		3,281		-
		Provision for (reversal of) credit loss allowance		(59)		-
Others
Shinhan Life Shining Foundation		Rental income		56		55
		Donations		2,546		2,555
Total income			W	81,404		73,613
Total expense			W	262,215		113,421

(*1) It is investment gains and losses from 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, 2024 and 2023

(In millions of Korean won)

(*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.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:

		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, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 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, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 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, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Borrowing of funds				Investment in cash				Dividend paid
		Borrowing		Redemption		Investment		Collection
The parent company
Shinhan Financial Group	W	-		-		-		-		162,257
Entities under common control
Shinhan Bank Co., Ltd. (*1)(*2)		-		780		30,891		-		-
Shinhan Securities Co., Ltd. (*3)		14,471		4		-		-		7
Shinhan Capital Co., Ltd. (*3)		-		-		-		-		46
Shinhan Asset Management Co., Ltd. (*2)		-		-		83		-		-
SHBNPP Green Energy Private Special Asset Investment Trust		-		-		-		1,630		-
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		-		-		-		1,656		-
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		-		-		-		7,188		-
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		1,638		-
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		324		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		-		-		1,332		13,367		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		-		-		-		799		-
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		-		-		2,018		-		-
Shinhan AIM Social Enterprise Investment Fund I		-		-		12		-		-
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		-		-		1,908		-		-
One Shinhan Futures Fund 1		-		-		-		184		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		-		-		1,000		914		-
SHBNPP Global Professional Investment Type Private Investment Trust No.12		-		-		1,284		-		-
Shinhan AIM Private Real Estate Investment Trust No.15		-		-		2,031		349		-
Shinhan AIM FoF Fund 4		-		-		7,810		-		-
Shinhan AIM Social Enterprise Investment Fund II		-		-		29		-		-
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		-		-		2,979		651		-
Shinhan AIM Private Real Estate Investment Trust No.13		-		-		-		36,541		-
Shinhan AIM FoF Fund 6-A		-		-		7,574		938		-
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		-		-		2,026		516		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		-		1,000		-		-
One Shinhan Futures Fund 2		-		-		-		100		-
SH BNPP Startup Venture Alpha Specialized Investment Private Equity Mixed Asset Trust No.1		-		-		150		-		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		1,224		-
Shinhan AIM Social Enterprise Investment Fund III		-		-		750		-		-
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		-		4,000		-		-
SH Green New Deal Energy Special Asset Private Investment Trust No.3		-		-		14,339		9		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Borrowing of funds				Investment in cash				Dividend paid
		Borrowing		Redemption		Investment		Collection
Entities under common control
Shinhan AIM Private Real Estate Investment Trust No.22-A	W	-		-		5,585		109		-
One Shinhan Connect New Technology Investment Fund 1		-		-		-		104		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		-		980		-		-
SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd		-		-		600		-		-
One Shinhan Futures Fund 3		-		-		-		102		-
SH Startup Venture Private Equity Trust No.5		-		-		6,000		-		-
Shinhan Greenway Corporate Investment FUND NO.1		-		-		5,000		-		-
One Shinhan Connect New Technology Investment Fund 2		-		-		-		2,452		-
Shinhan global flagship venture fund 1		-		-		5,200		-		-
SH BGT Private Special Asset Investment Trust No.2		-		-		8,140		-		-
Shinhan AIM Credit 4-B_Clover2		-		-		5,047		-		-
SH Venture Private Investment Trust No.6		-		-		4,000		-		-
Shinhan One Flagship Real Estate Development Fund 1		-		-		6,255		-		-
Shinhan hyper connect venture fund Ι		-		-		6,080		-		-
Shinhan hyper future’s venture fund 1		-		-		106		-		-
SH Special Situation Private Real Estate Feeder Investment Trust No.1		-		-		2,140		-		-
Shinhan CIS III Private Investment Trust No.1		-		-		17,807		-		-
		14,471		784		154,156		70,795		53
Associate
IGIS Private Real Estate Investment Trust 517-1		-		-		25,200		-		-

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Borrowing of funds				Investment in cash				Dividend paid
		Borrowing		Redemption		Investment		Collection
Associates of entities under common control
SBC PFV Co., Ltd	W	-		-		675		-		-
Midas Asset Global CRE Debt Private Fund No.6		-		-		-		1,471		-
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		-		-		1,747		-		-
SHINHAN-NEO Market-Frontier 2nd Fund		-		-		450		-		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		-		-		-		5,209		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		-		-		-		601		-
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24		-		-		-		2,958		-
SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		-		-		1		-		-
Shinhan AIM Private Real Estate Investment Trust No.1		-		-		7,672		-		-
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		-		-		-		1,319		-
PCC Amberstone Private Equity Fund I		-		-		-		512		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		1,588		-
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		-		-		321		-		-
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		-		-		4,984		-		-
Shinhan AIM Private Fund of Fund 9-B		-		-		4,981		155		-
		-		-		20,831		13,813		-
	W	14,471		784		200,187		84,608		162,310

(*1) Interest expense of W 26 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2023.

(*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.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(e) Unused capital commitments with related parties as of December 31, 2024 and 2023 are as follows:

Related Party			2024		2023
Entities under common control
Shinhan Bank Co., Ltd. (*)	W	6,458		6,339
Shinhan AIM Private Real Estate Investment Trust No.15		-		380
Shinhan AIM FoF Fund 4		268		3,096
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		7,271		6,785
Shinhan AIM FoF Fund 6-A		30,802		32,076
Shinhan AIM Social Enterprise Investment Fund III		234		294
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		1,000
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		4,000
SH Green New Deal Energy Special Asset Private Investment Trust No.3		7,528		10,769
Shinhan AIM Private Real Estate Investment Trust No.22-A		7,271		27,066
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		8,768
SH Startup Venture Private Equity Trust No.5		4,000		8,000
Shinhan Greenway Corporate Investment FUND NO.1		880		2,080
Shinhan global flagship venture fund 1		10,400		15,600
SH BGT Private Special Asset Investment Trust No.2		12,871		13,628
SH Venture Private Investment Trust No.6		12,000		16,000
Shinhan One Flagship Real Estate Development Fund 1		5,745		13,745
Shinhan hyper connect venture fund Ι		22,720		29,920
Shinhan hyper future’s venture fund 1		211		775
SH Special Situation Private Real Estate Feeder Investment Trust No.1		3,796		7,860
Shinhan CIS III Private Investment Trust No.1		18,840		22,796
IMM Long-term Solution Private Equity Fund		-		1,019
		151,295		231,996
Associates
IGIS Private Real Estate Investment Trust 517-1		2,400		4,800
Associates of entities under common control
SHINHAN-NEO Market-Frontier 2nd Fund		-		450
SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		3,880		3,880
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		182		182
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		-		3,516
Shinhan AIM Private Fund of Fund 9-B		6,067		11,091
		10,129		19,119
	W	163,824		255,915

(*) 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, 2024 and 2023

(In millions of Korean won)

51. Related parties (continued)

(f) Unsettled commitments of derivatives with related parties as of December 31, 2024 and 2023 are as follows:

Related Party		Type of Derivatives		2024		2023
Entities under common control
Shinhan Bank Co., Ltd.		Currency swap	W	719,051		716,394
		Currency forward		649,437		790,976
		Interest rate forward		20,010		-
Shinhan Securities Co., Ltd.		Equity options		131,774		109,138
		Currency forward		164,346		38,256
		Interest rate forward		557,964		354,395
			W	2,242,582		2,009,159

(g) Details of bond transactions with a key related party for the years ended December 31, 2024 and 2023 are as follows:

Related Party		2024				2023
		Buy		Sell		Buy		Sell
Entities under common control
Shinhan Securities Co., Ltd.	W	862,553		524,845		759,745		305,425

(h) Details of acquisitions and disposal of assets with key related parties for the years ended December 31, 2024 and 2023 are as follows:

Related Party		Account		2024						2023
						Acquisition		Disposal				Acquisition			Disposal
Entities under common control
Shinhan Bank Co., Ltd.		Right-of-use assets	W	294			61				1,790			1,291
Shinhan DS		Equipment		148		-				102				-
		Development costs		981		-				1,708				-
		Software		510		-				2,500				-
		Other intangible assets		419		464				-				-
		Other property and equipment		139		-				-				-
			W	2,491		525				6,100				1,291

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won, except per share data)

51. 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, 2024 and 2023 are as follows:

Provided to		Collateral assets		Collateral value(*)
				2024		2023
Entities under common control
Shinhan Bank Co., Ltd.		Government bonds, Deposits	W	116,962		8,118
Shinhan Securities Co., Ltd.		Bonds, Stocks and beneficiary certificates		22,155		47,724
			W	139,117		55,842

(*) 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, 2024 and 2023 are as follows:

Provided by		Collateral asset		Collateral value
				2024		2023
Entities under common control
Shinhan Bank Co., Ltd.		Securities	W	-		10,008
Shinhan Securities Co., Ltd.		Securities		12,501		-
Shinhan Card Co., Ltd.		Deposits		10		10
			W	12,511		10,018

(j) Details of key management personnel compensation for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Short-term employee benefits	W	1,219		1,134
Share-based payment transactions		848		706
Retirement benefits		40		37
	W	2,107		1,877

(k) As of December 31, 2024, the amounts of credit card allowance commitments provided by Shinhan Card Co., Ltd., and Shinhan Bank Co., Ltd., related parties, are W 8,999 million and W 94 million, respectively.

52. Earnings per share

Earnings per share for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Profit for the year	W	528,401		472,395
Less: Dividends to hybrid bonds		10,800		10,801
Net profit available for common shares	W	517,601		461,594
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	4,475		3,991

(*) Because the Group does not have a potential diluted common shares and the stock options do not dilute, the diluted earnings per share equal to the basic earnings per share for the years ended December 31, 2024 and 2023.

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

53. Statements of cash flows

(a) As of December 31, 2024 and 2023, transactions involving related parties were excluded, and the amount for that date represents transactions until exclusion from related parties.

		2024		2023
Interest income	W	(1,546,978)		(1,564,494)
Interest expense		78,726		147,595
Dividend income		(32,510)		(30,483)
Income taxes		193,040		167,158
Insurance revenue		(2,857,315)		(2,641,027)
Reinsurance revenue		(52,963)		(40,360)
Insurance finance income from insurance contracts issued		(397,712)		(364,541)
Insurance finance income from reinsurance contracts held		(24,101)		(19,095)
Insurance service expenses		2,025,806		1,757,529
Reinsurance service expenses		57,843		71,631
Insurance finance expenses from insurance contracts issued		2,103,212		2,500,731
Insurance finance expenses from reinsurance contracts held		24,045		19,959
Gains on financial assets at fair value through profit or loss		(657,125)		(820,501)
Losses on financial assets at fair value through profit or loss		630,274		352,776
Gains on disposal of securities at fair value through other comprehensive income		(79,735)		(54,256)
Losses on disposal of securities measured at fair value through other comprehensive income		96,475		55,895
Gains on disposal of securities at amortized cost		(22,284)		-
Losses on disposal of securities at amortized cost		565		-
Provisions for credit losses		6,230		16,172
Gains related to derivatives		(7,510)		48,811
Losses related to derivatives		585,180		70,209
Gain on foreign currency translation		(645,603)		(145,456)
Loss on foreign currency translation		162		14,527
Gain on foreign currency transaction		(19,242)		(2,563)
Loss on foreign currency transaction		-		13,090
Amortization of right-of-use assets		39,100		37,807
Depreciation		21,071		21,135
Amortization of intangible assets		76,343		71,754
Employee costs		11,400		8,526
Rental income		(36)		(30)
Losses on provisions		1,182		4,695
Other investment expense		1,798		34
Share of profit/(loss) from associates		894		302
Non-operating income		(578)		(857)
Non-operating expense		3,490		12,260
	W	(386,856)		(291,067)

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

53. Statements of cash flows (continued)

(b) Changes in assets and liabilities from operating activities for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Due from banks at amortized cost	W	(32,095)		25,226
Financial assets at fair value through profit or loss		(77,066)		1,006,404
Loans at amortized cost		808,329		581,073
Other financial assets		45,890		(1,501)
Other assets		(22,316)		(22,239)
Net defined benefit liabilities		(6,965)		(5,185)
Insurance contract liabilities		(1,184,594)		(1,594,883)
Reinsurance contract liabilities		(46,839)		(33,858)
Investment contract liabilities		(559,350)		(574,855)
Provisions		(5,063)		(14,364)
Derivative liabilities		(1,074)		(22,405)
Other financial liabilities		231,735		(69,288)
Other liabilities		22,087		18,429
	W	(827,321)		(707,446)

(c) Cash and cash equivalents reported in the accompanying consolidated statements of cash flows as of December 31,

2024 and 2023 are as follows:

		2024		2023
Cash and due from banks at amortized cost	W	1,695,328		1,838,006
Adjustments:
Available deposits whose expiration date exceeds<br><br>3 months from the acquisition date		(789,528)		(749,677)
Restricted deposit		(75,801)		(74,252)
	W	829,999		1,014,077

(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, 2024 and 2023 are as follows:

		2024		2023
Changes in gains(losses) on valuation of securities at fair<br><br>value through other comprehensive income	W	994,881		2,855,074
Write-off of loans at amortized costs		10,664		6,630
Changes in policyholders' equity adjustment		664		591
Recognition of right-of-use assets and lease liabilities		30,745		22,763
Reclassification of payables to property, plant and equipment and intangible assets		71		5,080
Additional provision for restoration		1,177		1,413
Interests payable for hybrid bonds		1,497		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, 2024 and 2023

(In millions of Korean won)

53. Statements of cash flows (continued)

(e) Changes in liabilities resulting from financing activities for the years ended December 31, 2024 and 2023 are as

follows:

		2024(*1)
		Debentures(*2)		Lease liability		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.

		2023(*1)
		Debentures(*2)		Lease liability		Total
Beginning balance	W	654,722		118,702		773,424
Changes in cash flows		(350,911)		(37,920)		(388,831)
Amortization		189		3,062		3,251
Others		13,165		17,450		30,615
Ending balance	W	317,165		101,294		418,459

(*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, 2024 and 2023

(In millions of Korean won)

54. 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, 2024 and 2023 are as follows:

		2024(*1)						2023(*1)
Investees		Assets		Liabilities		Equity		Assets		Liabilities		Equity
Shinhan Life Insurance Co., Ltd. (separate)	W	59,617,796		52,555,228		7,062,568		58,508,315		50,061,766		8,446,549
Shinhan Financial Plus Co., Ltd.		273,230		182,938		90,292		238,700		146,610		92,090
Shinhan Life Insurance Vietnam Co., Ltd.		142,109		16,544		125,565		125,766		8,878		116,888
Shinhan LifeCare Co., Ltd.		50,411		1,983		48,428		51,253		1,556		49,697
Mirae Asset Maps Global Infra Private Special Asset Trust 2		4,934		4		4,930		11,274		9		11,265
Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2(*2)		-		-		-		623		4		619
Shinhan AIM Credit Fund 3		177,990		187		177,803		148,411		164		148,247
Shinhan AIM Private fund of funds Trust 7-A		23,867		1,814		22,053		14,578		32		14,546
Shinhan AIM Private fund of funds Trust 6-B		67,852		6,505		61,347		43,377		574		42,803
Shinhan AIM Private fund of funds Trust 5		63,687		38		63,649		99,140		60		99,080
KB Global Private Real Estate Debt Fund 23		73,778		7,375		66,403		65,667		4		65,663
KB Global Private Real Estate Debt Fund 21		48,924		3,975		44,949		35,654		150		35,504
Shinhan KKR Global Program REC Private Investment Trust		89,148		10,489		78,659		93,782		228		93,554
Shinhan KKR Global Program PEF Private Investment Trust		75,519		7,327		68,192		36,811		13		36,798
Shinhan KKR Global Program PDF Private Investment Trust		186,185		14,996		171,189		104,012		12		104,000
Shinhan LCP X Private Investment Trust No.4(H)		33,207		2,919		30,288		19,864		6		19,858
	W	60,928,637		52,812,322		8,116,315		59,597,227		50,220,066		9,377,161

(*1) The summarized financial information is before elimination of intercompany transactions.

(*2) 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, 2024 and 2023

(In millions of Korean won)

54. 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, 2024 and 2023 are as follows:

		2024(*1)						2023(*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	6,725,864		533,681		(1,057,839)		6,214,851		481,851		485,601
Shinhan Financial Plus Co., Ltd.		258,368		(1,773)		(1,798)		217,401		(6,466)		(6,679)
Shinhan Life Insurance Vietnam Co., Ltd.		18,591		(1,105)		6,129		21,590		(3,508)		(4,537)
Shinhan LifeCare Co., Ltd.		1,337		(1,198)		(1,262)		425		(4,785)		(4,711)
Mirae Asset Maps Global Infra Private Special Asset Trust 2		492		(2,291)		(2,291)		1,600		1,383		1,383
Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2(*3)		63		16		16		135		(4,987)		(4,987)
Shinhan AIM Credit Fund 3		36,871		36,498		36,498		13,945		13,474		13,474
Shinhan AIM Private fund of funds Trust 7-A		4,466		1,944		1,944		774		204		204
Shinhan AIM Private fund of funds Trust 6-B		13,974		6,644		6,644		3,742		2,318		2,318
Shinhan AIM Private fund of funds Trust 5		12,943		12,742		12,711		11,806		11,514		11,478
KB Global Private Real Estate Debt Fund 23		16,171		6,672		6,665		7,358		6,840		6,837
KB Global Private Real Estate Debt Fund 21		8,333		2,840		2,840		4,077		1,542		1,542
Shinhan KKR Global Program REC Private Investment Trust		20,965		8,194		8,089		4,366		762		1,127
Shinhan KKR Global Program PEF Private Investment Trust		10,489		297		346		1,835		(2,625)		(2,553)
Shinhan KKR Global Program PDF Private Investment Trust		35,795		16,760		16,821		4,245		578		746
Shinhan LCP X Private Investment Trust No.4(H)		5,081		1,743		1,743		4,101		3,474		3,474
	W	7,169,803		621,664		(962,744)		6,512,251		501,569		504,717

(*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, 2024 and 2023

(In millions of Korean won)

55. 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, 2024 and 2023 are as follows:

		2024		2023
Total assets :
Assets-backed securitization	W	116,216,980		129,704,026
Structured financing		67,977,476		66,019,436
Investment fund		120,249,437		96,667,291
	W	304,443,893		292,390,753

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

55. 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, 2024 and 2023 are as follows:

			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
			2023
			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	30,000		2,666,805		-		2,696,805
Financial assets measured at fair value<br><br>through profit or loss			212,033		34,182		5,317,705		5,563,920
Securities at fair value through other<br><br>comprehensive income			3,415,575		2,932		-		3,418,507
Securities at amortized cost			100,000		-		-		100,000
Other assets			-		-		26,072		26,072
		W	3,757,608		2,703,919		5,343,777		11,805,304

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

55. 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, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---	---	---
		Assets-backed<br><br>securitization		Structured<br><br>financing		Investment<br><br>fund		Total
Assets held	W	3,757,608		2,703,919		5,343,777		11,805,304
Unused credit provided		-		395,042		-		395,042
Capital commitments		-		-		1,385,077		1,385,077
	W	3,757,608		3,098,961		6,728,854		13,585,423

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of Korean won)

56. 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.

• Information by segment for the years ended December 31, 2024 and 2023 are as follows:

		2024
		Financial		Non-financial		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 year	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.

		2023
		Financial		Non-financial		Consolidation adjustments (*)		Total
Operating revenue	W	6,294,425		217,826		(60,536)		6,451,715
Operating expenses		5,597,252		219,919		(24,513)		5,792,658
Operating profit		697,173		(2,093)		(36,023)		659,057
Non-operating income (expenses)		(23,940)		(4,315)		9,053		(19,202)
Share of profit/(loss) from associates		-		-		(302)		(302)
Profit before income taxes		673,233		(6,408)		(27,272)		639,553
Income tax expense		160,413		4,843		1,902		167,158
Profit for the year	W	512,820		(11,251)		(29,174)		472,395

(*) 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, 2024 and 2023

(In millions of Korean won)

56. Segment information (continued)

• Assets and liabilities by segment as of December 31, 2024 and 2023 are as follows:

		2024
		Financial		Non-financial		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
Policyholders’ equity adjustment		(362)		-		-		(362)
Investment contract liabilities		1,332,468		-		-		1,332,468
Other liabilities		2,776,249		184,921		(10,020)		2,951,149
	W	52,627,401		184,921		(10,020)		52,802,301

(*) Consolidation adjustments include elimination of intercompany transactions and unrealized gains and losses, and the amount offsetting investment capital equivalent to investments in subsidiaries.

		2023
		Financial		Non-financial		Consolidation adjustments (*)		Total
Assets:
Cash and cash equivalents	W	962,188		51,889		-		1,014,077
Due from banks		792,699		31,230		-		823,929
Securities		51,825,942		2,586		(678,215)		51,150,313
Investments in associates and joint ventures		274,581		-		(248,625)		25,956
Loans		3,622,901		-		-		3,622,901
Reinsurance contract assets		62,815		-		-		62,815
Other assets		1,766,148		204,248		(29,042)		1,941,354
	W	59,307,274		289,953		(955,882)		58,641,345
Liabilities:
Insurance contract liabilities		45,533,987		-		-		45,533,987
Reinsurance contract liabilities		93,120		-		-		93,120
Policyholders’ equity adjustment		(1,025)		-		-		(1,025)
Investment contract liabilities		1,831,826		-		-		1,831,826
Other liabilities		2,613,992		148,166		(1,855)		2,760,303
	W	50,071,900		148,166		(1,855)		50,218,211

(*) 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, 2024 and 2023

(In millions of Korean won)

56. 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, 2024.

EX-99.2

Exhibit 99.2 Separate Auditor’s Report of Shinhan Life

SHINHAN LIFE INSURANCE CO., LTD.

Separate Financial Statements

December 31, 2024 and 2023

(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		203
ICFR Operating Status Report by CEO and IAM		204

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, 2024 and 2023, 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, 2024 and 2023, 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.

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 4, 2025

Seoul, Korea

This report is effective as of March 4, 2025, 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, 2024 and 2023

(In millions of won)		Note		December 31,<br><br>2024		December 31, 2023
Assets
Cash and due from banks at amortized cost		5,8,9,11,50,52	W	1,528,871		1,640,481
Financial assets at fair value through profit or loss		5,8,9,12,24,50		11,579,983		11,478,700
Securities at fair value through<br><br>other comprehensive income		5,8,9,13,24,50		37,647,435		35,345,575
Securities at amortized cost		5,8,9,14,24		3,931,915		4,348,023
Investments in subsidiaries<br><br>and associates		15		274,581		274,581
Loans and receivables at amortized cost		5,8,9,16,50		3,954,379		4,707,291
Reinsurance contract assets		6,26		107,668		62,815
Right-of-use assets		17,50		77,272		92,941
Property and equipment		18,50		67,924		76,122
Intangible assets		19,50		209,378		235,402
Derivative assets		5,8,9,22,50		117,522		116,378
Current tax assets		48,50		82,404		70,658
Investment property		21,24		14,185		14,397
Net defined benefit assets		31		16,334		34,257
Other assets		23		7,945		10,694
Total assets			W	59,617,796		58,508,315

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Financial Position (Continued)

As of December 31, 2024 and 2023

(In millions of won)		Note		December 31, 2024		December 31, 2023
Liabilities
Insurance contract liabilities		6,25	W	48,419,650		45,528,986
Reinsurance contract liabilities		6,26		98,058		93,120
Policyholders’ equity adjustments		28		(362)		(1,025)
Investment contract liabilities		5,8,9,27,50		1,332,468		1,831,826
Derivative liabilities		5,8,9,22,50		501,592		239,940
Debentures		5,8,9,29		299,487		299,331
Other financial liabilities		5,8,9,30,35,50		461,215		238,028
Lease liabilities		5,8,9,17,50		77,399		91,566
Provisions		32		70,158		75,565
Current tax liabilities		48,50		79		55
Deferred tax liabilities		48		1,264,214		1,631,841
Other liabilities		33		31,270		32,533
Total liabilities				52,555,228		50,061,766
Equity
Capital stocks		34		578,274		578,274
Hybrid bonds		34		299,452		299,452
Capital surplus		34		820,023		820,023
Capital adjustments		34		1,461		1,461
Accumulated other comprehensive income		34		(1,474,062)		117,417
Retained earnings		34		6,837,420		6,629,922
Total equity				7,062,568		8,446,549
Total liabilities and equity			W	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, 2024 and 2023

(In millions of won, except per share data)		Note		2024			2023
Insurance revenue		25,36	W	2,847,305			2,629,139
Reinsurance revenue		26,37		52,963			40,360
Insurance service expenses		25,36,39,50		2,069,009			1,810,115
Reinsurance service expenses		26,37		57,843			71,631
Other operating expenses		39		115,035			124,129
Insurance service result				658,381			663,624
Insurance finance income and investment income:
Insurance finance income from insurance contracts issued		25,38		397,712			364,541
Insurance finance income from reinsurance contracts held		26,38		24,101			19,095
Interest income		9,41,50		1,512,259			1,538,432
Gains on financial assets at fair value<br><br>through profit or loss		9,12		1,015,803			1,187,285
Gains on disposal of securities at fair value<br><br>through other comprehensive income		9,13		79,735			54,256
Gains on disposal of securities at amortized cost		9,14		22,284			-
Gains on disposal of loans at amortized cost		9,12		103			48
Reversal of credit loss allowance		42,50		9,392			7,564
Gains on foreign currency transaction		43		645,182			172,736
Gains on derivatives		22,50		65,275			147,499
Dividend income		9,45		32,510			30,483
Fees and commission income		44,50		12,563			12,489
Other investment income		46,50		8,677			10,924
				3,825,596			3,545,352
Insurance finance expenses and investment expenses:
Insurance finance expenses from insurance contracts issued		25,38		2,103,148			2,500,731
Insurance finance expenses from reinsurance contracts held		26,38		24,045			19,959
Interest expenses		9,41,50		78,142			147,255
Losses on financial assets at fair value<br><br>through profit or loss		9,12,50		629,126			353,758
Losses on disposal of securities measured at fair value through other comprehensive income		9,13		96,475			55,895
Losses on disposal of securities at amortized cost		9,14		565			-
Losses on disposal of loans at amortized cost		9		426			198
Provision for credit loss allowance		42,50		16,087			24,406
Losses on foreign currency transaction		43		12,163			41,437
Losses on derivatives		22,50		687,835			301,322
Investment administrative expenses		40,50		16,291			16,925
Other investment expenses		46,50		81,105			80,773
				3,745,408			3,542,659
Net finance result			W	80,188			2,693

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Comprehensive Income (Continued)

For the years ended December 31, 2024 and 2023

(In millions of won, except per share data)		Note		2024		2023
Operating profit			W	738,569		666,317
Non-operating expenses		47		(2,961)		(23,943)
Profit before income taxes				735,608		642,374
Income tax expense		48		201,927		160,523
Profit for the year				533,681		481,851
Other comprehensive income (loss) for the year, net of income tax
Items that may be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				729,954		2,087,218
Gains (losses) on valuation of derivatives held for cash flow hedges				45,219		105,477
Net finance income (expenses) from insurance contracts issued				(2,353,403)		(2,162,910)
Net finance income (expenses) from reinsurance contracts held				(1,544)		(20,765)
				(1,579,774)		9,020
Items that will not be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				848		3,896
Remeasurements of defined benefit liabilities				(12,594)		(9,166)
				(11,746)		(5,270)
Total other comprehensive income (loss), net of income tax		13,22,34		(1,591,520)		3,750
Total comprehensive income (loss) for the year			W	(1,057,839)		485,601
Earnings per share:
Basic earnings per share and diluted earnings per share in won		51	W	4,521		4,073

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, 2024 and 2023

(In millions of 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, 2023		W	578,274		299,452		820,023		1,464		113,667		6,321,129		8,134,009
Total comprehensive income for the year:
Profit for the year			-		-		-		-		-		481,851		481,851
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income			-		-		-		-		2,091,114		-		2,091,114
Gains on valuation of derivatives intended for cash flow hedges			-		-		-		-		105,477		-		105,477
Net finance expenses from insurance contracts issued			-		-		-		-		(2,162,910)		-		(2,162,910)
Net finance expenses from reinsurance contracts held			-		-		-		-		(20,765)		-		(20,765)
Remeasurement of defined benefit liabilities			-		-		-		-		(9,166)		-		(9,166)
Total other comprehensive income			-		-		-		-		3,750		-		3,750
Total comprehensive income(loss)			-		-		-		-		3,750		481,851		485,601
Other changes in equity
Dividends			-		-		-		-		-		(162,257)		(162,257)
Share-based payment			-		-		-		(3)		-		-		(3)
Interest expenses on hybrid bonds			-		-		-		-		-		(10,801)		(10,801)
Balance at December 31, 2023		W	578,274		299,452		820,023		1,461		117,417		6,629,922		8,446,549

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Changes in Equity (Continued)

For the years ended December 31, 2024 and 2023

(In millions of 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		W	578,274		299,452		820,023		1,461		117,417		6,629,922		8,446,549
Total comprehensive income for the year:
Profit for the year			-		-		-		-		-		533,681		533,681
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income			-		-		-		-		730,802		-		730,802
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			-		-		-		-		(1,591,520)		-		(1,591,520)
Total comprehensive income(loss)			-		-		-		-		(1,591,520)		533,681		(1,057,839)
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 OCI to Retained Earnings			-		-		-		-		41		(41)		-
Balance at December 31, 2024		W	578,274		299,452		820,023		1,461		(1,474,062)		6,837,420		7,062,568

See accompanying notes to the separate financial statements

SHINHAN LIFE INSURANCE CO., LTD.

Separate Statements of Cash Flows

For the years ended December 31, 2024 and 2023

(In millions of won)		2024		2023
Cash flows from operating activities
Profit for the year	W	533,681		481,851
Adjustment for profit or loss (Note 52)		(370,877)		(274,615)
Changes in assets and liabilities (Note 52)		(846,581)		(702,715)
Income tax refund (paid)		(11,871)		24,827
Interest received		1,016,106		1,027,457
Interest paid		(17,948)		(33,496)
Dividends received		38,076		40,321
Net cash inflow from operating activities		340,586		563,630
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss		1,871,007		509,489
Acquisition of financial assets at fair value through profit or loss		(1,698,176)		(783,328)
Disposal of securities at fair value through other comprehensive income		4,095,627		3,744,617
Acquisition of securities at fair value through other comprehensive income		(4,668,975)		(3,138,261)
Disposal of securities at amortized cost		407,544		-
Acquisition of investments in subsidiaries		-		(54,000)
Cash inflows from hedging activities		3,493		14,224
Cash outflows from hedging activities		(110,122)		(67,030)
Disposal of property and equipment		49		665
Acquisition of property and equipment		(12,191)		(16,744)
Disposal of intangible assets		51		665
Acquisition of intangible assets		(51,506)		(34,967)
Decrease in receivables at amortized cost		5,701		21,741
Increase in receivables at amortized cost		(4,320)		(3,502)
Net cash inflow (outflow) from investing activities		(161,818)		193,569
Cash flows from financing activities
Repayment of debentures		-		(656,645)
Issuance of debentures		-		299,246
Decrease in borrowings		-		(34,100)
Increase in borrowings		-		24,100
Decrease in other financial liabilities		(357)		(1,501)
Increase in other financial liabilities		667		896
Decrease in lease liabilities		(28,795)		(30,351)
Dividends paid		(315,343)		(162,257)
Hybrid bond dividends paid		(10,800)		(10,801)
Net cash outflow from financing activities	W	(354,628)		(571,413)
Net increase (decrease) in cash and cash equivalents		(175,860)		185,786
Changes in cash and cash equivalents due to foreign currency translation		2,621		558
Cash and cash equivalents at the beginning of the period		950,443		764,099
Cash and cash equivalents at the end of the period	W	777,204		950,443

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, 2024 and 2023

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 203 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, 2025, and the separate financial statements will be submitted for the final approval to the stockholder’s meeting on March 24, 2025.

(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 operate. The separate financial statements of the Company are presented and reported in won, which is the Company’s functional currency and the presentation.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

2. Basis of preparation (continued)

(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, 2024 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)

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, 2024 and 2023

(In millions of won)

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, 2024.

i) Amendments to Korean IFRS 1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current (Amendment)

The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by the likelihood or the management’s expectation about whether an entity will exercise its right to defer settlement of a liability. The amendments also introduce a definition of ‘settlement’ to make clear that settlement includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle the liability by the transfer of the Company’s own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. The adoption of the amendments did not have a material impact on the Company’s separate financial statements.

ii) Amendments to Korean IFRS 1007 ‘Statement of Cash Flows and Korean IFRS 1107 ‘Financial Instruments: Disclosures’ – Supplier Finance Arrangements (Amendment)

The amendments require an entity to disclose information about the effects of its supplier finance arrangements on the entity’s liabilities and cash flows and the entity’s exposure to concentration of liquidity risk. 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, 2024 and 2023

(In millions of won)

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, 2024, the same accounting policies were applied by the Company in its separate financial statements as of December 31, 2024 and 2023. 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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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 and 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 and loss, and changes in the cash flow of a derivative hedging instrument designated as a cash flow hedge are recognized 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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023 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, 2024 and 2023

(In millions of won)

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, 2024, 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, 2024 and 2023

(In millions of won)

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.

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, 2024 and 2023

(In millions of won)

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 premiums 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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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 statement of comprehensive income.

The Company separately presents insurance profit and loss, which consists of insurance operating revenue and insurance operating expenses, and investment profit and loss, which consists of investment operating revenue and investment operating expenses. This allows information users to identify the sources of profit and loss. The Company has chosen an accounting policy to classify changes in the risk adjustment for non-financial risk into insurance service results (insurance profit and loss) and insurance financial components (investment profit and loss).

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 year 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.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

3. Material accounting policies (continued)

(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.

(s) The adoption of the Financial Supervisory Service’s guidelines for the application of K-IFRS 1117

The Financial Supervisory Service issued the actuarial assumption guidelines for the application of K-IFRS 1117. The Company has incorporated these guidelines into the financial statements, particularly regarding actuarial assumptions for zero/low-surrender-value insurance contracts, recognition criteria for contractual service margin, and actuarial assumptions for medical insurance. In addition, the Company has incorporated these guidelines into the current financial statements, particularly regarding actuarial assumptions for zero/low-surrender-value insurance contracts and whole life insurance with short premium payment term.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

3. Material accounting policies (continued)

(t) 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 1021 ‘The Effects of Changes in Foreign Exchange Rates’ amended – 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. These amendments shall be applied prospectively for annual reporting periods beginning on or after January 1, 2025, with earlier application permitted. The Company anticipates that the application of the amendments will not have a significant impact on the separate financial statements in the future periods. There will be no material impact on the separate financial statements from these amendments.

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

The amendments clarify the conditions related to the discharge of a financial liability before the settlement date when settling such financial liabilities using an electronic payment system. They further specify an interest feature, a contingent feature, financial assets with non-recourse features and contractually linked instruments which should be considered in assessing whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. Furthermore, the amendments include additional disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and contractual terms that could change the timing or amount of contractual cash flows. The amendments are applied retrospectively 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.

3. 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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

4. Summary of financial information

For the year ended December 31, 2024, the Company recognized (i) operating profit of W738,569 million, consisting of W658,381 million of insurance service result and W80,188 million of net finance result; (ii) W2,961 million of non-operating expenses; and (iii) W533,681 million of profit for the year.

The operating profit increased by W72,252 million, insurance service result decreased by W5,243 million, net finance result increased by W77,495 million, and profit for the year increased by W51,830 million as compared to the year ended December 31, 2023.

Insurance service result for the year ended December 31, 2024 includes W732,650 million of contractual service margin recognized in profit or loss for services provided; and W20,015 million and W5,096 million of experience adjustments on claims and operating expenses, respectively.

The insurance service result decreased by W5,243 million as compared to the year ended December 31, 2023 mainly due to decreases in claims and experience adjustments on claims and operating expenses, partially offset by an increase in contractual service margin recognized in profit or loss for services provided.

Net finance result for the year ended December 31, 2024 includes W1,434,117 million of net interest income, W1,705,380 million of net insurance finance expenses, and W351,451 million of net investment income on securities and others.

The net finance result increased by W77,495 million as compared to the year ended December 31, 2023 mainly due to an increase in net interest income and a decrease in net insurance finance expenses, partially offset by a decrease in investment income on securities and others.

Total assets are W59,617,796 million as of December 31, 2024, including W11,579,983 million of financial assets at fair value through profit and loss, W37,647,435 million of securities at fair value through other comprehensive income, W3,931,915 million of securities at amortized cost, W2,809,454 million of loans, W1,528,871 million of cash and due from banks, and W2,120,138 million of derivative assets and others.

Total assets increased by W1,109,481 million as compared to the year ended December 31, 2023, mainly due to an increase of securities at fair value through other comprehensive income caused by fall in interest rates and a decrease in loans.

Total liabilities are W52,555,228 million as of December 31, 2024, including W48,419,650 million of insurance contract liabilities (for which the estimates of present value of future cash flows and contractual service margin are W39,849,265 million and W7,224,114 million, respectively); and W4,135,578 million of reinsurance contract liabilities, investment contract liabilities and others in total.

Total liabilities increased by W2,492,790 million as compared to the year ended December 31, 2023, mainly due to an increase in the estimates of present value of future cash flows caused by changes in discount rate assumptions, the fall in interest rates, and other regulatory effects.

Total equity is W7,062,568 million as of December 31, 2024, including W578,274 million of capital stock, W820,023 million of capital surplus, W6,837,420 million of retained earnings, and W December 31, 2024, including W578,274 million of accumulated other comprehensive loss.

Total equity decreased by W1,385,981 million as compared to the year ended December 31, 2023, mainly due to a decrease in accumulated other comprehensive income caused by changes in discount rate assumptions, the fall in interest rates, 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, 2024 and 2023

(In millions of won)

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 entity-wide level, thereby promoting the Company's sound and sustainable development.

The main risks being managed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, 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 an exclusive organization for risk management.

① Risk Management Committee

The Risk Management Committee, as the highest decision-making body for risk-related matters, is chaired by an outside director and operates regularly. The committee establishes policies for risk identification, measurement, monitoring, and control, ensuring a comprehensive system for proper evaluation and management.

② Risk Management Steering Committee

The Risk Management Steering Committee, a subcommittee under the Risk Management Committee, is established to comprehensively manage operational risks that may arise in business practices. It carries out detailed tasks delegated by the Risk Management Committee to efficiently implement its risk management directives and resolutions.

③ Investment Steering Committee

The Investment Steering Committee, a subcommittee under the Risk Management Committee, is established to enhance asset soundness and systematically manage credit risks through rational loan and investment decision-making. It is tasked with executing detailed directives delegated by the Risk Management Committee to efficiently implement its risk management directives and resolutions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

5. Financial risk management (continued)

(b) Credit risk (continued)

iii) Risk management

The Company manages various credit risks associated with loan receivables, non-trading securities, related non-operating assets, equity investments in associates and subsidiaries, deposits and due from banks, over-the-counter derivatives, and other financial instruments.

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 effective 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, 2024 and 2023

(In millions of won)

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, 2024 and 2023

(In millions of won)

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 contractual maturity 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.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements (Continued)

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

5. Financial risk management (continued)

(b) Credit risk (continued)

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

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.

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, 2024 and 2023 are as follows:

					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)		1,029,930			114,995		1,144,925
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	54,591,425			4,337,731		58,929,156

(*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, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

					2023
		General<br><br>(*1)			Investment-linked (*2)		Total
Due from banks and loans at amortized cost (*3)(*4):
Banks	W	1,054,604			273,756		1,328,360
Retail
- Residential mortgage		524,134			-		524,134
- Others		263,896			-		263,896
Government/Public institutions/Central bank		159,975			71,200		231,175
Corporations
- Conglomerate		38,111			148,582		186,693
- SMEs		233,657			-		233,657
- Special financing		2,495,467			-		2,495,467
		4,769,844			493,538		5,263,382
Due from banks at fair value through profit or loss:
Banks		30,743			-		30,743
Securities at fair value through profit or loss		6,100,227			3,861,683		9,961,910
Securities at fair value through other comprehensive income		35,235,213			-		35,235,213
Securities at amortized cost (*4)		4,348,023			-		4,348,023
Derivative assets		115,507			871		116,378
Receivables at amortized cost (*4)		955,336			129,054		1,084,390
Off-balance sheet accounts
Unused loan commitments		424,203			-		424,203
Capital commitments		1,360,730			-		1,360,730
		1,784,933			-		1,784,933
	W	53,339,826			4,485,146		57,824,972

(*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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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		1,138,885		222		2,498		36,207		1,177,812		(32,887)		1,144,925		1,167
Ending balance	W	46,563,597		64,562		288,370		54,181		46,970,710		(69,525)		46,901,185		680,000

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

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, 2024 and 2023 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/bank		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.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		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	1,327,906		691		-		-		1,328,597		(237)		1,328,360		-
Retail
- Residential mortgage		494,884		12,449		13,729		3,414		524,476		(342)		524,134		516,433
- Others		232,913		30,050		10,868		10,835		284,666		(20,770)		263,896		-
Government/Public institutions/Central bank		231,250		-		-		-		231,250		(75)		231,175		-
Corporations
- Conglomerate		163,369		784		23,866		-		188,019		(1,326)		186,693		-
- SMEs		214,115		19,840		-		-		233,955		(298)		233,657		19,808
- Special financing		2,323,111		-		187,201		-		2,510,312		(14,845)		2,495,467		470,177
		4,987,548		63,814		235,664		14,249		5,301,275		(37,893)		5,263,382		1,006,418
Securities at fair value through other comprehensive income (*3)		35,235,213		-		-		-		35,235,213		-		35,235,213		-
Securities at amortized cost		4,348,231		-		-		-		4,348,231		(208)		4,348,023		-
Receivables at amortized cost		1,077,119		313		2,176		39,955		1,119,563		(35,173)		1,084,390		1,933
Ending balance	W	45,648,111		64,127		237,840		54,204		46,004,282		(73,274)		45,931,008		1,008,351

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 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

W 8,790 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, 2024 and 2023 are as follows:

		2024				2023
		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	1,518,757		-		1,731,995		-
Grade 2		-		242		-		52,938
Total	W	1,518,757		242		1,731,995		52,938

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		2024
		Finance and insurance		Manu-<br><br>facturing		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
Off-balance sheet accounts
Unused loan commitments		-		-		-		98,777		22,672		-		42,858		-		164,307
Capital commitments		-		-		-		-		-		-		1,354,692		-		1,354,692
	W	8,956,496		1,239,514		203,160		2,508,817		589,090		22,017		43,449,725		697,890		57,666,709

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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		Finance and insurance		Manu-<br><br>facturing		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	1,328,360		-		-		-		-		-		-		-		1,328,360
Retail
- Residential mortgage		-		-		-		-		-		-		-		524,134		524,134
- Others		-		-		-		-		-		-		-		263,896		263,896
Government/Public institutions/Central bank		159,938		-		-		-		-		-		71,237		-		231,175
Corporations
- Conglomerate		152,139		31,549		-		-		-		-		3,005		-		186,693
- SMEs		9,320		47,153		-		159,807		-		-		17,377		-		233,657
- Special financing		86,218		167,216		-		1,448,574		162,200		-		631,259		-		2,495,467
		1,735,975		245,918		-		1,608,381		162,200		-		722,878		788,030		5,263,382
Due from banks at fair value through profit or loss		30,743		-		-		-		-		-		-		-		30,743
Securities at fair value through profit or loss		660,251		52,405		-		29,924		17,841		-		9,201,489		-		9,961,910
Securities at fair value through other comprehensive income		6,561,001		1,035,818		230,715		1,046,629		1,239,793		10,882		25,110,375		-		35,235,213
Securities at amortized cost		160,062		-		-		119,663		62,971		-		4,005,327		-		4,348,023
Off-balance sheet accounts
Unused loan commitments		-		-		-		270,260		102,886		-		51,057		-		424,203
Capital commitments		-		-		-		3,516		-		-		1,357,214		-		1,360,730
	W	9,148,032		1,334,141		230,715		3,078,373		1,585,691		10,882		40,448,340		788,030		56,624,204

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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
Off-balance sheet accounts
Unused loan commitments		164,307		-		-		-		-		164,307
Capital commitments		1,312,488		12,871		-		-		29,333		1,354,692
	W	53,268,957		2,628,896		78,956		25,855		1,664,045		57,666,709

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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		Korea		USA		UK		Japan		Other		Total
Due from banks and loans at amortized cost (*)
Banks	W	1,126,868		67,540		-		100		133,852		1,328,360
Retail
- Residential mortgage		524,134		-		-		-		-		524,134
- Others		263,896		-		-		-		-		263,896
Government/Public institutions/Central bank		231,175		-		-		-		-		231,175
Corporations
- Conglomerate		170,515		11,245		34		743		4,156		186,693
- SMEs		233,657		-		-		-		-		233,657
- Special financing		2,495,467		-		-		-		-		2,495,467
		5,045,712		78,785		34		843		138,008		5,263,382
Due from banks at fair value through profit or loss		-		30,743		-		-		-		30,743
Securities at fair value through profit or loss		8,532,405		1,176,544		29,591		23,352		200,018		9,961,910
Securities at fair value through other comprehensive income		32,737,419		1,198,289		39,827		-		1,259,678		35,235,213
Securities at amortized cost		4,348,023		-		-		-		-		4,348,023
Off-balance sheet accounts
Unused loan commitments		424,203		-		-		-		-		424,203
Capital commitments		1,221,047		112,310		-		-		27,373		1,360,730
	W	52,308,809		2,596,671		69,452		24,195		1,625,077		56,624,204

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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

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 Steering Committee; and`

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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

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 based on VaR during the business planning process and are monitored daily to ensure compliance. The risk management department regularly monitors whether the trading department adheres to these limits and reports its findings to the management and the Risk Management Committee.

③ Foreign exchange risk management

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 investment periods.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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 W 4,956,743 million and the minimum guaranteed risk amount that may have an impact on the Company calculated using the internal shock scenario method is W 280,577 million.

		2023
		Average		Maximum		Minimum		December 31
Interest rate risk	W	1,009		5,430		105		105
Stock price risk		4,663		6,141		3,602		4,589
Foreign exchange risk		69,414		89,996		40,947		59,787
Option volatility risk		955		1,693		420		1,233
Total	W	76,041		103,260		45,074		65,714

(*) As of December 31, 2023, the market risk exposure for investment-linked assets held is W 5,346,730 million and the minimum guaranteed risk amount that may have an impact on the Company calculated using the internal shock scenario method is W 228,451 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

(In millions of USD, EUR, AUD, SEK, VND, 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	-	244		-	-		-		-		-		-		-		-		244
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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

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

		2023
								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	45	57,851		3	4,456		1		724		-		-		1		1,806		64,837
Due from banks at FVTPL		24	30,743		-	-		-		-		-		-		-		-		30,743
Securities at FVTPL		1,011	1,303,568		86	122,652		1		875		-		-		25		32,751		1,459,846
Securities at FVOCI		1,379	1,777,560		324	462,812		570		502,035		3,849		496,481		31		39,827		3,278,715
Receivables at amortized cost		113	146,039		5	7,201		10		8,449		68		8,828		-		490		171,007
	W	2,572	3,315,761		418	597,121		582		512,083		3,917		505,309		57		74,874		5,005,148
Liabilities:
Other financial liabilities	W	-	393		-	-		-		-		-		-		-		-		393
	W	-	393		-	-		-		-		-		-		-		-		393
On-balance, net exposure	W	2,572	3,315,368		418	597,121		582		512,083		3,917		505,309		57		74,874		5,004,755
Off-balance derivative net exposure (*2)		(2,158)	(2,782,275)		(440)	(628,137)		(632)		(556,240)		(4,480)		(577,884)		(32)		(41,265)		(4,585,801)
Net position	W	414	533,093		(22)	(31,016)		(50)		(44,157)		(563)		(72,575)		25		33,609		418,954

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

(*2) Derivative contract amounts

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

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 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, 2024, the interest risk for the non-trading position held by the Company is W 1,748,679 million, which increased by W 663,104 million as compared to December 31, 2023 primarily due to the change in the interest rate risk measurement method, the decline in market interest rates, the change in the interest rate shock coefficient, and the changes in actuarial and economic assumptions.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

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.

The Company establishes a fund operation plan to defend against liquidity risk in the event of fund operation, taking into account the matching ratio with liquidity liabilities through the monthly analysis of the capital account balance. In addition, the Company prepares for a liquidity crisis by setting up a contingency plan and minimizing the losses caused by the mismatch in the financial dates of the asset liabilities by taking into account not only the expected funding needs per currency but also the unexpected funding needs.

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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

			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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

5. Financial risk management (continued)

(e) Liquidity risk (continued)

iii) 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, 2024 and 2023 are as follows: (continued)

			2023
		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	514,893		167,990		3,451		7,593		196,137		957,942		1,848,006
Due from banks at fair value through profit or loss		-		-		-		-		-		30,743		30,743
Securities at fair value through profit or loss		9,049		6,400		46,597		59,743		1,529,058		9,797,110		11,447,957
Securities at fair value through other comprehensive income		46,397		103,732		158,575		299,663		6,357,495		28,379,713		35,345,575
Securities at amortized cost		493		40,007		15,793		58,328		1,383,954		4,260,061		5,758,636
Loans at amortized cost		98,787		249,514		187,160		407,305		1,515,132		2,020,972		4,478,870
Receivables at amortized cost		130,336		8,032		5,578		119,254		250,576		608,405		1,122,181
	W	799,955		575,675		417,154		951,886		11,232,352		46,054,946		60,031,968
Non-derivative financial liabilities:
Debentures	W	-		3,900		3,900		7,800		354,600		-		370,200
Other financial liabilities(*1)		103,459		37,429		29,437		58,192		9,449		165		238,131
Lease liabilities(*1)		3,908		5,270		7,610		14,587		64,033		842		96,250
Investment contract<br><br>liabilities		245,354		201,983		103,893		538,401		742,195		-		1,831,826
	W	352,721		248,582		144,840		618,980		1,170,277		1,007		2,536,407
Derivatives:
Cash inflows(*2)	W	54,468		155,797		448,263		589,377		3,451,097		26,738		4,725,740
Cash outflows(*2)		(54,924)		(241,529)		(634,303)		(612,844)		(5,024,652)		(27,952)		(6,596,204)
	W	(456)		(85,732)		(186,040)		(23,467)		(1,573,555)		(1,214)		(1,870,464)
Off-balance sheet accounts:
Unused loan<br><br>commitments	W	424,203		-		-		-		-		-		424,203
Capital commitments		1,360,730		-		-		-		-		-		1,360,730
	W	1,784,933		-		-		-		-		-		1,784,933

(*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

As of and for the years ended December 31, 2024 and 2023

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 death 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

As of and for the years ended December 31, 2024 and 2023

6. Insurance risk management (continued)

(a) Overview of the insurance risk (continued)

① Underwriting strategy

The underwriting strategy refers to diversifying the types of risks underwritten or the levels of claims. For example, the company can balance mortality risks and survival risks. Additionally, selecting policyholders through regular health check-ups is also one of the key underwriting 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

As of and for the years ended December 31, 2024 and 2023

6. Insurance risk management (continued)

(b) Insurance risk management policy

1. 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.

2. 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 to ensure adequate profitability by setting profitability guidelines from the time of product development, establishes and operates proper underwriting standards to prevent adverse selection, and operates claim assessment standards to ensure fair and appropriate claim payments.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

6. Insurance risk management (continued)

(b) Insurance risk management policy(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.

(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 amount of solvency margin up to 50% of the required capital. In addition, the required capital under the K-ICS, that is, the standard amount of solvency margin, 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 standard amount of solvency margin 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 solvency margin ratio is calculated by dividing the amount of solvency margin by the standard amount of solvency margin. If the insurance company's solvency margin ratio is less than 100%, it indicates that the standard amount of solvency margin 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 margin 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

As of and for the years ended December 31, 2024 and 2023

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 consisting of assets that are relatively easy to liquidate in preparation for unexpected disruptions in funding

• 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

6. Insurance risk management (continued)

(e) Concentration of insurance risk

1. The concentration of insurance risks (based on the fulfilment cash flows) by region as of December 31, 2024 and 2023 are as follow:

		2024
		Insurance contracts		Reinsurance contracts		Total
Domestic	W	41,195,537		345,177		41,540,714
		2023
---	---	---	---	---	---	---
		Insurance contracts		Reinsurance contracts		Total
Domestic	W	38,360,261		161,301		38,521,562

2. The amount of foreign currency insurance liabilities (based on the fulfilment cash flows) as of December 31, 2024 and 2023 are as follow:

(In thousands of USD and EUR, and<br><br>in millions of won)		2024						2023
		Foreign currency amount		KRW converted amount			Foreign currency amount			KRW converted amount
Foreign Currency Insurance Liabilities	W	168,209		247,267			192,052			247,632
		119		182			124			177
	W			247,449						247,809

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		2024
		Sensitivity(*1)		Base amount and base amount after change								Profit and capital impact (before tax)
				Fulfillment cash flows (*2)				Insurance contract margin				Profit(loss)(*3)				Other comprehensive income
				Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect
Base amount			W	39,380,251		39,819,864		7,224,114		6,869,326		-		-		-		-
Mortality rate		increased by 3.27%		39,511,663		39,946,680		7,091,068		6,740,875		1,635		1,635		(9,952)		8,702
Disability and illness (fixed compensation)<br><br>Disability and illness (actual loss compensation)		increased by3.40%<br><br>increased by 2.62%		40,083,199		40,478,965		6,567,655		6,256,714		(46,488)		(46,488)		16,176		34,285
Long-term property and other		increased by 4.19%		39,380,251		39,819,864		7,224,114		6,869,326		-		-		-		-
Surrender rate(increase)		increased by 9.16%		40,126,708		40,533,222		6,503,159		6,181,469		(25,501)		(25,501)		(104,650)		(86,772)
Surrender rate(decrease)		decreased by 9.16%		38,556,883		39,031,830		8,041,498		7,651,376		5,984		5,984		115,085		133,903
Expense<br><br>Expense(inflation)		increased by 2.62%<br><br>0.26%p		39,592,255		40,031,868		7,024,540		6,669,753		(12,430)		(12,430)		9,624		9,624

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

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

(*3) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		Sensitivity (*1)		Base amount and base amount after change								Effect on profit and equity (before tax)
				Fulfillment cash flows (*2)				Insurance contract margin				Profit(loss)(*3)				Other comprehensive income
				Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect		Before reflecting<br><br>the reinsurance effect		After reflecting<br><br>the reinsurance effect
Base amount			W	36,532,133		36,758,686		7,168,725		7,037,730		-		-		-		-
Mortality rate		increased by 3.27%		36,649,373		36,873,667		7,048,751		6,920,015		2,734		2,734		(669)		16,340
Disability and illness (fixed compensation)<br><br>Disability and illness (actual loss compensation)		increased by3.40%<br><br>increased by 2.62%		37,207,600		37,392,758		6,518,899		6,429,299		(25,641)		(25,641)		79,046		91,155
Long-term property and other		increased by 4.19%		36,532,133		36,758,686		7,168,725		7,037,730		-		-		-		-
Surrender rate(increase)		increased by 9.16%		37,012,292		37,216,745		6,696,604		6,587,709		(8,038)		(8,038)		(248,007)		(231,815)
Surrender rate(decrease)		decreased by 9.16%		36,002,582		36,252,706		7,700,114		7,545,548		(1,838)		(1,838)		265,129		283,049
Expense<br><br>Expense(inflation)		increased by 2.62%<br><br>0.26%p		36,724,665		36,951,218		6,982,049		6,851,054		(5,856)		(5,856)		29,725		29,725

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

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

(*3) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follow:

		2024				2023
			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	-		146		38,207		5,204

(h) Interest rate risk arising from insurance contracts

The impact of exposure to interest rate risk and interest rate changes on profit and loss on equity as of December 31, 2024 and 2023 are as follow:

① Interest rate risk exposure

		2024		2023
Exposure to financial instruments measured at fair value (*1)	W	48,843,348		46,700,713
Insurance contract exposure (*2)		39,820,035		36,758,783
Net exposure (financial instruments less insurance contracts)		9,023,313		9,941,930

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

② Interest Rate Risk Sensitivity

				2024				2023
				Effects on profit (loss)		Effects on equity		Effects on profit (loss)		Effects on equity
100bp Increase		Insurance contracts (*1)	W	-		4,357,245		-		3,412,769
		Reinsurance contracts (*1)		-		50,365		-		15,543
		Financial assets (*2)		(35,934)		(4,777,699)		(37,574)		(4,258,875)
100bp Decrease		Insurance contracts (*1)		-		(6,073,734)		-		(4,382,646)
		Reinsurance contracts (*1)		-		(59,948)		-		(17,723)
		Financial assets (*2)		35,934		5,837,965		37,574		4,258,875

(*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 and 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 measured at fair value through other comprehensive income.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

6. Insurance risk management (continued)

(i) Liquidity risk arising from insurance contracts

As of December 31, 2024 and 2023, 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.

		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
General insurance:
Cash inflows	W	4,959,356		4,502,944		4,087,588		3,652,621		3,114,091		40,523,130		60,839,730
Cash outflows		(5,324,282)		(4,157,931)		(4,287,561)		(4,084,548)		(4,318,989)		(126,037,788)		(148,211,099)
	W	(364,926)		345,013		(199,973)		(431,927)		(1,204,898)		(85,514,658)		(87,371,369)
Variable insurance
Cash inflows	W	446,902		371,371		307,145		254,674		214,352		1,923,480		3,517,924
Cash outflows		(880,558)		(752,425)		(682,066)		(612,330)		(536,499)		(7,753,564)		(11,217,442)
	W	(433,656)		(381,054)		(374,921)		(357,656)		(322,147)		(5,830,084)		(7,699,518)
	W	(798,582)		(36,041)		(574,894)		(789,583)		(1,527,045)		(91,344,742)		(95,070,887)
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	(818,347)		(57,253)		(595,782)		(809,124)		(1,546,404)		(92,244,490)		(96,071,400)
Total (excluding variable insurance)	W	(384,691)		323,801		(220,861)		(451,468)		(1,224,257)		(86,414,406)		(88,371,882)
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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
General insurance:
Cash inflows	W	5,120,022		4,408,374		3,892,580		3,500,316		3,073,794		51,775,416		71,770,502
Cash outflows		(5,509,719)		(4,969,773)		(4,263,071)		(4,356,801)		(4,235,246)		(132,831,760)		(156,166,370)
	W	(389,697)		(561,399)		(370,491)		(856,485)		(1,161,452)		(81,056,344)		(84,395,868)
Variable insurance
Cash inflows	W	582,036		485,566		412,870		350,176		297,209		3,160,998		5,288,855
Cash outflows		(943,282)		(836,548)		(764,049)		(711,324)		(641,963)		(10,096,136)		(13,993,302)
	W	(361,246)		(350,982)		(351,179)		(361,148)		(344,754)		(6,935,138)		(8,704,447)
	W	(750,943)		(912,381)		(721,670)		(1,217,633)		(1,506,206)		(87,991,482)		(93,100,315)
Reinsurance contract
Cash inflows	W	203,944		204,852		204,904		204,760		205,383		7,421,755		8,445,598
Cash outflows		(225,690)		(225,630)		(224,694)		(222,873)		(221,054)		(7,686,228)		(8,806,169)
	W	(21,746)		(20,778)		(19,790)		(18,113)		(15,671)		(264,473)		(360,571)
Total (including variable life insurance	W	(772,689)		(933,159)		(741,460)		(1,235,746)		(1,521,877)		(88,255,955)		(93,460,886)
Total (excluding variable life insurance)	W	(411,443)		(582,177)		(390,281)		(874,598)		(1,177,123)		(81,320,817)		(84,756,439)

As of December 31, 2024 and 2023, the amount to be paid upon request by policyholders of insurance contracts issued is W 53,227,935 million and W 52,555,004 million, respectively.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

6. Insurance risk management (continued)

(j) Claims development

The Claims development as of December 31, 2024 and 2023 are as follows:

		2024
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted<br><br>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

6. Insurance risk management (continued)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

(j) Claims development (continued)

The Claims development as of December 31, 2024 and 2023 are as follows: (continued)

		2023
		Year of accident										Total
		Y - 4		Y - 3		Y - 2		Y - 1		Current<br><br>Period (Y)
Estimates of undiscounted<br><br>ultimate gross claims	W	962,548		950,728		1,062,120		1,098,646		1,153,875		5,227,917
Claims paid
At end of accident year		777,773		771,780		857,031		888,276		932,827		4,227,687
1 year later		151,943		144,712		167,000		172,431				636,086
2 years later		19,955		19,220		23,317						62,492
3 years later		8,972		11,202								20,174
4 years later		3,905										3,905
Cumulative claims paid		962,548		946,914		1,047,348		1,060,707		932,827		4,950,344
Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid		-		3,814		14,772		37,939		221,048		277,573
Effect of discounting												(9,311)
Future claim adjustment expenses												5,313
Incurred claims that have been confirmed but not paid												1,535,849
Risk adjustment for non-financial risk												18,604
Reinsurance effect												(65,252)
Net liability for incurred claims	W											1,762,776

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

7. Capital risk management

In order to manage the required capital for maintaining solvency, the Company measures the solvency margin ratio in accordance with the method required by the supervisory authority, manages it internally, and discloses it externally. The Company also manages its risk appetite using an internal model-based approach.

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, 2024, 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 evaluation 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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
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
Hedging		-		501,347		-		501,347
	W	245		501,347		-		501,592
		2023
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets:
Due from banks at fair value through profit or loss	W	-		30,743		-		30,743
Securities at fair value through profit or loss
Debt securities		3,044,774		1,343,905		5,573,231		9,961,910
Equity securities		1,485,047		-		1,000		1,486,047
		4,529,821		1,343,905		5,574,231		11,447,957
Securities at fair value through other comprehensive income
Debt securities		20,850,434		14,384,779		-		35,235,213
Equity securities		-		-		110,362		110,362
		20,850,434		14,384,779		110,362		35,345,575
Derivative assets
Held for trading		870		-		4,626		5,496
Hedging		-		110,882		-		110,882
		870		110,882		4,626		116,378
	W	25,381,125		15,870,309		5,689,219		46,940,653
Financial liabilities:
Derivative liabilities
Held for trading	W	108		-		-		108
Hedging		-		239,832		-		239,832
	W	108		239,832		-		239,940

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023.

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, 2024 and 2023 are as follows:

Type of financial instrument		Valuation technique			2024		2023		Input variables
Financial assets
Financial asset at fair value through profit or loss
Debt securities		NAV, DCF,<br><br>Hull-White model		W	1,727,164		1,374,648		Discount rates, fair value of the underlying assets
Securities at fair value through other comprehensive income
Debt securities		DCF			14,273,161		14,384,779		Discount rates
Derivative assets
Currency forward		Implied forward rate, DCF			-		22,948		Discount rate,<br><br>foreign exchange rate
Currency swap					2,369		38,417		Discount rate,<br><br>foreign exchange rate
Interest rate forward					114,530		49,517		Discount rate
				W	16,117,224		15,870,309
Financial liabilities
Currency forward		Implied forward rate, DCF		W	202,104		37,450		Discount rate,<br><br>foreign exchange rate
Currency swap					245,963		96,487		Discount rate,<br><br>foreign exchange rate
Interest rate forward					53,280		105,895		Discount rate
				W	501,347		239,832

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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

Financial assets classified as fair value level 3 as of December 31, 2024 and 2023 are as follows:

		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 at profit or loss		Amount recognized at profit or loss related to financial instruments held at the end of the reporting period
Gains or losses related to financial assets at fair value through profit or loss		W	89,472		86,463
Gains or losses related to derivatives			(3,626)		(1,570)
		W	85,846		84,893

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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)

Financial instruments that are at fair value level 3 during the years of December 31, 2024 and 2023 are as follows: (continued)

		2023
		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	5,321,410		155,050		1,573		5,478,033
Total gains or losses
Amount recognized in profit or loss(*)		2,146		-		1,440		3,586
Amount recognized in other<br><br>comprehensive income		-		5,312		-		5,312
Acquisition		745,710		50,000		4,865		800,575
Settlement		(495,035)		(100,000)		(3,252)		(598,287)
Ending balance	W	5,574,231		110,362		4,626		5,689,219

(*) Of the changes in financial instruments classified at fair value level 3 during the prior period, gains or losses related to the amounts recognized in profit or loss and assets and liabilities held for the year ended December 31, 2023 are as follows:

			Amount recognized at profit or loss		Amount recognized at profit or loss related to financial instruments held at the end of the reporting period
Gains or losses related to financial assets at fair value through profit or loss		W	2,146		(13,283)
Gains or losses related to derivatives			1,440		415
		W	3,586		(12,868)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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 but unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2024 and 203 are as below:

			2024
			Valuation technique		Carrying amount		Significant but 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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 but unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2024 and 203 are as below: (continued)

			2023
			Valuation technique		Carrying amount		Significant but 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	5,573,231		Discount rates, correlation coefficient, liquidation value		Discount rates 6.77% ~ 10.25%<br><br>correlation coefficient<br><br>0.5 ~ 0.9<br><br>liquidation value 0.00%		Fair value decreases when discount rate increases<br><br>Fair value increases or decreases depending on correlation coefficient changes<br><br>Fair value increases when liquidation value increases
- Equity<br><br>securities			Cost model		1,000		-
Securities<br><br>at fair value<br><br>through other<br><br>comprehensive<br><br>income
- Equity securities			Hull-White, NAV		110,362		The volatility of an interest rate		0.55% ~ 0.91%		The greater the volatility, the greater the fluctuation in fair value
Derivative assets
- Equity related			Monte-Carlo<br><br>Simulation,<br><br>Black-Scholes		4,626		The volatility of an underlying asset		17.03% ~ 20.45%		The greater the volatility, the greater the fluctuation in fair value
				W	5,689,219

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023, the effect of a significant but unobservable input variable fluctuating reasonably on the reporting date is as follows:

		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.

		2023
		Favorable change		Unfavorable change
Financial assets at fair value through profit or loss (*1)	W	18,237		(17,399)
Securities at fair value through other<br><br>comprehensive income (*1)		3,367		(3,110)
Derivative assets (*2)		329		(330)
	W	21,933		(20,839)

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

(*2) The fair value volatility 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

As of and for the years ended December 31, 2024 and 2023

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.
Loan		The fair value of the loan at amortized cost 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		Other financial assets/liabilities, are used as a proxy for fair value because it is difficult to calculate reliable 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.
Lease liabilities		The fair value of the lease liabilities is assessed at the present value of the expected cash flows to be paid.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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
Loan receivables 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		1,144,925		1,144,925
	W	9,415,165		9,063,047
Financial liabilities
Investment contract liabilities	W	1,332,468		1,332,468
Debentures		299,487		306,408
Other financial liabilities		461,215		461,215
Lease liabilities		77,399		77,399
	W	2,170,569		2,177,490

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	W	950,443		950,443
Due from banks at amortized cost		690,038		656,608
Securities at amortized cost
Government bonds		3,904,569		3,504,420
Special purpose bonds		443,454		390,985
		4,348,023		3,895,405
Loan receivables at amortized cost
Retail loans		788,030		793,856
Corporate loans		2,834,871		2,641,416
		3,622,901		3,435,272
Receivables at amortized cost		1,084,390		1,084,390
	W	10,695,795		10,022,118
Financial liabilities
Investment contract liabilities	W	1,831,826		1,831,826
Debentures		299,331		313,304
Other financial liabilities		238,028		238,028
Lease liabilities		91,566		91,566
	W	2,460,751		2,474,724

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---	---	---
		Level 1		Level 2		Level 3		Total
Financial assets
Due from banks at amortized cost	W	-		656,608		-		656,608
Securities at amortized cost
Government bonds		3,504,420		-		-		3,504,420
Special purpose bonds		-		390,985		-		390,985
		3,504,420		390,985		-		3,895,405
Loans at amortized cost
Retail loans		-		-		793,856		793,856
Corporate loans		-		-		2,641,416		2,641,416
		-		-		3,435,272		3,435,272
	W	3,504,420		1,047,593		3,435,272		7,987,285
Financial liabilities
Debentures	W	-		-		313,304		313,304

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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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		-		-		1,023,706		-		1,023,706
Derivative assets		526		-		-		116,899		117,425
		6,373,516		37,001,000		8,465,034		116,899		51,956,449
< 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		9,415,165		116,899		58,760,105

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		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	-		-		1,150,289		-		1,150,289
Financial assets at fair<br><br>value through profit or loss		6,011,550		-		-		-		6,011,550
Securities at fair<br><br>value through other<br><br>comprehensive income		-		34,393,256		-		-		34,393,256
Securities at amortized cost		-		-		4,348,023		-		4,348,023
Loans at amortized cost		-		-		3,019,789		-		3,019,789
Receivables at amortized cost		-		-		946,792		-		946,792
Derivative assets		4,625		-		-		110,882		115,507
		6,016,175		34,393,256		9,464,893		110,882		49,985,206
< Variable>
Cash and due from<br><br>banks at amortized cost		-		-		421,470		-		421,470
Financial assets at fair<br><br>value through profit or loss		5,334,167		-		-		-		5,334,167
Loans at amortized cost		-		-		71,200		-		71,200
Receivables at amortized cost		-		-		128,766		-		128,766
Derivative assets		871		-		-		-		871
		5,335,038		-		621,436		-		5,956,474
< Retirement>
Cash and due from<br><br>banks at amortized cost		-		-		68,722		-		68,722
Financial assets at fair<br><br>value through profit or loss		132,983		-		-		-		132,983
Securities at fair<br><br>value through other<br><br>comprehensive income		-		952,319		-		-		952,319
Loans at amortized cost		-		-		531,912		-		531,912
Receivables at amortized cost		-		-		8,832		-		8,832
		132,983		952,319		609,466		-		1,694,768
	W	11,484,196		35,345,575		10,695,795		110,882		57,636,448

(*) Included derivatives held for trading.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---	---	---
		Financial liabilities at fair value through profit or loss		Financial liabilities at amortized cost		Hedging derivatives		Total
<General>
Derivative liabilities	W	-		-		234,827		234,827
Debentures		-		299,331		-		299,331
Other financial liabilities		-		221,970		-		221,970
Lease liabilities		-		91,566		-		91,566
		-		612,867		234,827		847,694
< Variable>
Derivative liabilities		108		-		-		108
Other financial liabilities		-		15,912		-		15,912
		108		15,912		-		16,020
< Retirement>
Investment contract liabilities		-		1,831,826		-		1,831,826
Derivative liabilities		-		-		5,005		5,005
Other financial liabilities		-		146		-		146
		-		1,831,972		5,005		1,836,977
	W	108		2,460,751		239,832		2,700,691

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

9. Classification category of financial instruments (continued)

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

i) Net profit or loss by classification of financial instruments for the years ended December 31, 2024 and 2023 are as follows:

		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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

9. Classification category of financial instruments (continued)

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

i) Net profit or losses by classification of financial instruments for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		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	47,206		-		1,209		-		-		48,415
Financial assets at fair<br>value through profit or loss		25,983		-		227,561		(3,704)		31,333		281,173
Securities at fair<br>value through other<br>comprehensive income		1,031,771		6,586		114,476		-		42,246		1,195,079
Securities at amortized cost		133,050		-		107		-		-		133,157
Loans at amortized cost		141,235		-		(12,980)		-		(149)		128,106
Receivables at amortized cost		2,428		-		(5,033)		-		-		(2,605)
Derivatives held for trading		-		-		(6,462)		-		-		(6,462)
Derivatives held for hedging		-		-		(119,557)		-		-		(119,557)
Borrowings		(295)		-		-		-		-		(295)
Debentures		(33,928)		-		(13,090)		-		-		(47,018)
Other financial liabilities		(30)		-		-		-		-		(30)
Lease liabilities		(2,722)		-		-		-		-		(2,722)
		1,344,698		6,586		186,231		(3,704)		73,430		1,607,241
< Variable>
Cash and due from<br>banks at amortized cost		12,541		-		195		-		-		12,736
Financial assets at fair<br>value through profit or loss		84,056		23,536		30,500		456,900		111,444		706,436
Loans at amortized cost		2,561		-		-		-		-		2,561
Receivables at amortized cost		20		-		216		-		-		236
Derivatives held for trading		-		-		(26,907)		-		-		(26,907)
		99,178		23,536		4,004		456,900		111,444		695,062
< Retirement>
Cash and due from<br>banks at amortized cost		1,093		-		31		-		-		1,124
Financial assets at fair<br>value through profit or loss		507		83		5,450		1,200		4,257		11,497
Securities at fair<br>value through other<br>comprehensive income		36,211		278		1,989		-		(43,884)		(5,406)
Loans at amortized cost		19,770		-		(4,072)		-		-		15,698
Receivables at amortized cost		-		-		(7)		-		-		(7)
Derivatives held for trading		-		-		(31)		-		-		(31)
Derivatives held for hedging		-		-		(866)		-		-		(866)
Investment contract liabilities		(110,280)		-		-		-		-		(110,280)
		(52,699)		361		2,494		1,200		(39,627)		(88,271)
	W	1,391,177		30,483		192,729		454,396		145,247		2,214,032

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

			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 loan securities			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
			2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
			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	115,507		-		115,507		112,869		-		2,638
Purchase under repurchase agreement			71,200		-		71,200		71,200		-		-
Foreign currency loan securities			579,354		-		579,354		577,732		-		1,622
		W	766,061		-		766,061		761,801		-		4,260
Financial liabilities
Derivative liabilities		W	239,832		-		239,832		234,312		-		5,520

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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 loaned securities as of December 31, 2024 and 2023 is as follows:

Classification				2024		2023
Financial assets at fair value		Government bonds	W	-		19,915
through profit or loss		Beneficiary certificates		-		40,900
		Stocks		15,826		39,143
				15,826		99,958
Securities at fair value through		Government bonds		6,481,140		6,746,593
other comprehensive income		Foreign currency bonds		1,260,151		579,354
				7,741,291		7,325,947
Securities at amortized cost		Government bonds		1,730,170		2,894,972
			W	9,487,287		10,320,877

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

As of December 31, 2024 and 2023, 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

As of and for the years ended December 31, 2024 and 2023

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 market yields on 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

As of and for the years ended December 31, 2024 and 2023

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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

11. Cash and due from banks at amortized cost

(a) Cash and due from banks at amortized cost as of December 31, 2024 and 2023 are as follows:

		2024		2023
Cash and cash equivalents:
Savings account	W	116,045		333,720
Current account		57		59
Others		661,102		616,664
		777,204		950,443
Due from banks at amortized cost:
Time deposit		450,000		390,000
Installment savings		228,250		228,250
Other deposits		74,305		72,211
(Credit loss allowance)		(888)		(423)
		751,667		690,038
	W	1,528,871		1,640,481

(b) Restricted due from banks at amortized cost as of December 31, 2024 and 2023 are as follows:

		2024		2023		Restrictions<br><br>on use
Due from banks denominated in won	W	59,566		56,021		Deposits for opening current accounts, deposits for futures transaction, etc.
Due from banks denominated in foreign currency		14,739		16,190
	W	74,305		72,211

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

(c) The changes in credit loss allowance for due from banks measured at amortized cost for the years ended December 31, 2024 and 2023, are as follows:

		Designated for measurement of<br><br>12-month expected credit loss
		2024		2023
Beginning balance of credit loss allowance	W	423		762
Provision for credit loss allowance		465		(339)
Ending balance of credit loss allowance	W	888		423

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023, are as follows:

		2024		2023
Due from banks:
Due from banks in foreign currency	W	35,450		30,743
Securities:
Debt securities:
Government bonds		1,395,210		1,416,833
Special purpose bonds		107,425		173,700
Financial institutions bonds		163,929		167,426
Corporate bonds		146,417		147,066
Puttable stocks		56,035		44,344
Puttable equity instruments		245,761		263,274
Beneficiary certificates		6,399,236		5,915,918
Other securities		202,256		241,102
Puttable financial instruments in foreign currency		3,035		2,874
Beneficiary certificates in foreign currency		1,422,594		1,300,358
Other securities in foreign currency		214,102		289,015
		10,356,000		9,961,910
Equity securities:
Stocks		1,187,865		1,485,405
Foreign stocks		668		642
		1,188,533		1,486,047
		11,544,533		11,447,957
	W	11,579,983		11,478,700

(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, 2024 and 2023, are as follows:

		2024		2023
Gain on financial assets measured at fair value through profit or loss:
Gain on valuation	W	483,315		683,818
Gain on disposal		270,828		271,371
Others		261,660		232,096
		1,015,803		1,187,285
Loss on financial assets measured at fair value through profit or loss:
Loss on valuation		448,876		229,422
Loss on disposal		180,250		124,336
		629,126		353,758
Net gain on financial assets at fair value through profit or loss	W	386,677		833,527

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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 2024 and 2023 are as follows.

Investee		2024
		Location		Reporting month		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
Investee		2023
---	---	---	---	---	---	---	---	---
		Location		Reporting month		Ownership		Carrying<br><br>amount
Mirae Asset Maps Global Infra Private Special Asset Trust 2		Korea		December		95.89%	W	10,803
Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2 (*)		Korea		December		99.55%		637
Shinhan AIM Credit Fund 3		Korea		December		99.90%		148,172
Shinhan AIM Private fund of funds Trust 7-A		Korea		December		99.58%		14,555
Shinhan AIM Private fund of funds Trust 6-B		Korea		December		99.80%		42,725
Shinhan AIM Private fund of funds Trust 5		Korea		December		99.88%		98,939
KB Global Private Real Estate Debt Fund 23		Korea		December		99.40%		65,562
KB Global Private Real Estate Debt Fund 21		Korea		December		99.53%		35,356
Shinhan KKR Global Program REC Private Investment Trust		Korea		December		93.02%		86,431
Shinhan KKR Global Program PEF Private Investment Trust		Korea		December		93.02%		34,207
Shinhan KKR Global Program PDF Private Investment Trust		Korea		December		93.02%		95,926
Shinhan LCP X Private Investment Trust No.4(H)		Korea		December		99.75%		19,831
							W	653,144

(*) Excluded from the consolidation due to liquidation during the year ended December 31, 2024.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

13. Securities at fair value through other comprehensive income

(a) Securities at fair value through other comprehensive income as of December 31, 2024 and 2023, are as follows:

		2024		2023
Debt securities:
Government bonds	W	22,596,093		20,291,960
Special purpose bonds		7,376,549		7,612,912
Financial institution bonds		956,661		979,921
Corporate bonds		2,868,627		3,071,706
Debt securities in foreign currency		3,360,447		2,964,347
Other securities in foreign currency		327,643		314,367
		37,486,020		35,235,213
Equity securities (*):
Stocks		2,504		2,932
Other securities		158,911		107,430
		161,415		110,362
	W	37,647,435		35,345,575

(*) 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, 2024 and 2023, are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance (*1)	W	35,235,213		32,474,322
Acquisition		4,578,354		3,082,700
Disposal and redemption		(4,069,569)		(3,596,702)
Others (*2)		1,742,022		3,274,893
Ending balance (*1)	W	37,486,020		35,235,213

(*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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023, are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance (*)	W	8,790		13,604
Reversal of credit loss allowance		(1,225)		(4,814)
Ending balance (*)	W	7,565		8,790

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

(d) Policyholders' equity adjustments

The Company accounts for unrealized gains or losses on securities at fair value through other comprehensive income separately by accumulated other comprehensive income and policyholders’ equity in accordance with the Regulations on Supervision of Insurance Business. The details of valuation gain (loss) on securities at fair value through other comprehensive income recorded in accumulated other comprehensive income and policyholders’ equity as of December 31, 2024 and 2023 are as follows:

		2024		2023
Appropriated to the policyholders’ equity adjustment	W	(362)		(1,025)
Appropriated to the accumulated other comprehensive income		(1,766,417)		(2,497,260)
Tax effect		(633,606)		(895,756)
	W	(2,400,385)		(3,394,041)

(e) Equity instruments designated at fair value through other comprehensive income were disposed due to changes in the purpose of holding during the year ending December 31, 2024. At the time of disposal, the fair value and accumulated gains or losses reclassified within equity are as follows:

		Fair value at disposal date		Accumulated gain/loss<br><br>at disposal date (*)
Stocks	W	100		(41)

(*) Accumulated gains or loss was reclassified to unappropriated retained earnings.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

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

(f) The dividend income recognized related to equity instruments at fair value through other comprehensive income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Dividend income recognized from assets held at the end of<br><br>the reporting period
Other Securities	W	4,399		2,430
Dividend income recognized from assets disposed of<br><br>during the reporting period
Other Securities		-		4,434
	W	4,399		6,864

(g) Gains and losses on disposal of securities at fair value through other comprehensive income recognized for the years ended December 31, 2024 and 2023, are as follows:

		2024		2023
Gain on disposal of securities at fair value through other<br><br>comprehensive income	W	79,735		54,256
Loss on disposal of securities at fair value through other<br><br>comprehensive income		(96,475)		(55,895)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

14. Securities at amortized cost

(a) Securities at amortized cost as of December 31, 2024 and 2023 are as follows:

		2024		2023
Government bonds	W	3,489,625		3,904,569
Special purpose bonds		442,475		443,662
(Credit loss allowance)		(185)		(208)
	W	3,931,915		4,348,023

(b) Changes in total carrying amount

Changes in total carrying amounts of securities at amortized cost for the years ended December 31, 2024 and 2023 are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance	W	4,348,231		4,339,081
Disposal		(427,907)		-
Others (*)		11,776		9,150
Ending balance	W	3,932,100		4,348,231

(*) Amounts occurred due to effective interest amortization.

(c) Changes in credit loss allowance

Changes in credit loss allowance for securities at amortized cost for the years ended December 31, 2024 and 2023 are as follows:

		12-month expected credit loss
		2024		2023
Beginning balance	W	208		315
Provision for (reversal of) credit loss allowance		(23)		(107)
Ending balance	W	185		208

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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		Gains 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 gains or losses 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

15. Investments in associates

(a) Investments in subsidiaries and associates as of December 31, 2024 and 2023 are as follows:

Investees		Location		Reporting<br><br>Month		Ownership (%)				Carrying value
									2024		2023		2024		2023
Subsidiaries
Shinhan Financial Plus Co., Ltd.		Korea		December		100.00%		100.00%	W	109,000		109,000
Shinhan Life Insurance Vietnam Co., Ltd.		Vietnam		December		100.00%		100.00%		114,144		114,144
Shinhan LifeCare Co., Ltd.(*1)		Korea		December		100.00%		100.00%		50,437		50,437
Associates
iPIXEL Co., Ltd.(*2)(*3)		Korea		December		10.51%		11.54%		-		-
Find JD Fund No.1		Korea		December		27.03%		27.03%		1,000		1,000
									W	274,581		274,581

(*1) Shinhan CubeOn Co., Ltd. changed its name to Shinhan LifeCare Co., Ltd. during the year ended December 31, 2023.

(*2) Despite the Company's ownership being 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.

(*3) Recognized impairment with the residual value of W 1,000 in the year ended December 31, 2023.

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’.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

15. Investments in associates (continued)

(b) Changes in investments in subsidiaries and associates for the years ended December 31, 2024 and 2023 are as follows:

		2024
Investees(*1)		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.(*1)		50,437		-		-		-		50,437
Find JD Fund No.1		1,000		-		-		-		1,000
	W	274,581		-		-		-		274,581

(*1) The Company accounts for investments in subsidiaries and associates at acquisition cost.

		2023
Investees(*3)		Beginning balance		Acquisition		Reclassification		Impairment (*1)		Ending balance
Shinhan Financial Plus Co., Ltd	W	95,000		14,000		-		-		109,000
Shinhan Life Insurance Vietnam Co., Ltd.		114,144		-		-		-		114,144
Shinhan LifeCare Co., Ltd.(*1)		20,000		40,000		-		(9,563)		50,437
iPIXEL Co., Ltd.(*2)		368		-		-		(368)		-
IMM Long-term Solution Private Equity Fund		34,981		-		(34,981)		-		-
Find JD Fund No.1		1,000		-		-		-		1,000
	W	265,493		54,000		(34,981)		(9,931)		274,581

(*1) The Company recognized impairment due to the continuously decline in net asset value after the acquisition.

(*2) Equity method loss was continuously recorded since the acquisition, and an impairment loss was recognized as it fell below its cost.

(*3) The Company accounts for investments in subsidiaries and associates at acquisition cost.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

16. Loans and receivables at amortized cost

(a) Loans and receivables at amortized cost as of December 31, 2024 and 2023 are as follows:

i) Loans at amortized cost

		2024		2023
Mortgage loans	W	679,799		1,009,680
Credit loans		1,754,050		2,135,903
Loans secured by third party guarantee		349,487		393,782
Other loans		60,900		121,200
		2,844,236		3,660,565
Deferred loan origination cost (fees)		783		(194)
(Credit loss allowance)		(35,565)		(37,470)
	W	2,809,454		3,622,901

ii) Receivables at amortized cost

		2024		2023
Receivables, etc.	W	73,752		128,706
Deposits		49,184		50,565
Accrued income		1,057,137		942,910
		1,180,073		1,122,181
(Present value discounts)		(2,261)		(2,618)
(Credit loss allowance)		(32,887)		(35,173)
	W	1,144,925		1,084,390

(b) Changes in total carrying value

Changes in total carrying value of loans and receivables at amortized cost for the years ended December 31, 2024 and 2023 are as follows:

i) Loans at amortized cost

		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 loss		7,948		(7,782)		(166)		20,000		(20,000)		-		-
Transfer to (from) lifetime expected credit loss		(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.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

i) Loans at amortized cost (continued)

		2023
		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	812,568		56,866		9,889		3,309,105		58,743		-		4,247,171
Transfer to (from)<br><br>12-month expected credit loss		40,563		(40,531)		(32)		39,616		(39,616)		-		-
Transfer to (from) lifetime expected credit loss		(20,075)		20,222		(147)		(167,266)		167,266		-		-
Transfer to (from) impaired financial asset		(11,560)		(1,764)		13,324		-		-		-		-
Origination, collection and others		(51,200)		(10,197)		(1,579)		(541,293)		24,675		-		(579,594)
Charge off (*)		-		-		(6,630)		-		-		-		(6,630)
Disposal		-		-		(576)		-		-		-		(576)
Ending balance	W	770,296		24,596		14,249		2,640,162		211,068		-		3,660,371

(*) 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 27,974 million.

ii) Receivables 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 (from) to 12-month<br><br>expected credit losses		57		(54)		(3)		-
Transfer (from) to lifetime expected credit losses		(171)		174		(3)		-
Transfer (from) to 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.

		2023
		12-month<br><br>expected credit loss		Lifetime<br><br>expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	2,489,159		2,174		36,375		2,527,708
Transfer (from) to 12-month<br><br>expected credit losses		285		(285)		-		-
Transfer (from) to lifetime expected credit losses		(617)		619		(2)		-
Transfer (from) to impaired financial assets		(6,072)		(9)		6,081		-
Origination, collection and others		235,581		(323)		(560)		234,698
Charge off		-		-		(1,939)		(1,939)
Ending balance (*)	W	2,718,336		2,176		39,955		2,760,467

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

i) Loans at amortized cost

		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 loss		1,282		(1,240)		(42)		301		(301)		-		-
Transfer to (from) lifetime expected credit loss		(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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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	9,648		2,812		7,341		5,756		1,744		-		27,301
Transfer to (from)<br><br>12-month expected credit loss		1,239		(1,211)		(28)		553		(553)		-		-
Transfer to (from) lifetime expected credit loss		(468)		488		(20)		(487)		487		-		-
Transfer to (from) impaired financial asset		(444)		(271)		715		-		-		-		-
Provision (reversal)		(1,893)		1,366		6,873		(16)		8,875		-		15,205
Collection		-		-		1,767		-		-		-		1,767
Charge off		-		-		(6,629)		-		-		-		(6,629)
Disposal		-		-		(173)		-		-		-		(173)
Others (*)		-		-		(1)		-		-		-		(1)
Ending balance	W	8,082		3,184		9,845		5,806		10,553		-		37,470

(*) Amounts due to loan restructuring.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

ii) Receivables 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 (from) to 12-month expected credit losses		9		(6)		(3)		-
Transfer (from) to lifetime expected credit losses		(2)		5		(3)		-
Transfer (from) to 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.

		2023
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance (*)	W	1,523		68		31,148		32,739
Transfer (from) to 12-month expected credit losses		7		(7)		-		-
Transfer (from) to lifetime expected credit losses		(3)		5		(2)		-
Transfer (from) to impaired financial assets		(66)		(1)		67		-
Provision (reversal)		(595)		17		5,289		4,711
Collection		-		-		85		85
Charge off		-		-		(1,939)		(1,939)
Ending balance (*)	W	866		82		34,648		35,596

(*) 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, 2024 and 2023 are as follows:

		2024		2023
Beginning balance	W	(194)		2,753
Loan origination		(1,313)		(2,256)
Amortization		2,290		(691)
Ending balance	W	783		(194)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

17. Lease

(a) Details of the right-of-use assets as of December 31, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---
		Acquisition cost		Accumulated depreciation		Carrying amount
Real estate	W	181,526		(89,361)		92,165
Vehicle		1,135		(359)		776
	W	182,661		(89,720)		92,941

(b) Changes in the right-of-use assets for the years ended December 31, 2024 and 2023 are as follows:

		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
		2023
---	---	---	---	---	---	---
		Real estate		Vehicle		Total
Beginning balance	W	112,555		603		113,158
Acquisition		14,290		857		15,147
Disposal		(3,286)		(281)		(3,567)
Depreciation		(31,035)		(403)		(31,438)
Transfer		(359)		-		(359)
Ending balance	W	92,165		776		92,941

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

17. Lease (continued)

(c) The amount recognized in profit or loss for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Depreciation of right-of-use assets	W	31,676		31,438
Interest expenses of lease liability		2,354		2,722
Expenses related to low-value lease assets		377		513
		34,407		34,673
Revenues from sublease of right-of-use assets		(962)		(320)
	W	33,445		34,353

(d) Total cash outflows from leases for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Cash outflows of lease liabilities	W	28,795		30,351
Cash outflows of low-value lease assets		377		513
	W	29,172		30,864

(e) The estimated timing of outflows of lease liabilities as of the years ended December 31, 2024 and 2023 are as follows:

		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.

		2023
Due (*)		Real estate		Vehicle		Total
In 1 month or less	W	3,817		90		3,907
After 1 month through 3 months		5,221		49		5,270
After 3 months through 6 months		7,538		72		7,610
After 6 months through 1 year		14,446		141		14,587
After 1 year through 5 years		63,541		492		64,033
After 5 years		843		-		843
	W	95,406		844		96,250

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

18. Property and equipment

(a) Details of property and equipment as of December 31, 2024 and 2023 are as follows:

				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.

				2023
		Acquisition cost				Accumulated<br><br>depreciation		Accumulated<br><br>impairment		Carrying amount
Land	W	12,877				-		-		12,877
Buildings		36,898				(8,810)		(8,389)		19,699
Structure		3,894				(2,541)		(614)		739
Rental property		40,821				(25,696)		-		15,125
Equipment(*)		114,984				(87,391)		-		27,593
Other assets		89				-		-		89
	W	209,563				(124,438)		(9,003)		76,122

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

18. Property and equipment (continued)

(b) Changes in property and equipment for the years ended December 31, 2024 and 2023 are as follows:

				2024
		Beginning balance				Acquisition		Disposal		Other changes(*)		Impair-<br><br>ment		Deprecia-<br><br>tion		Ending balance
Land	W	12,877				-		-		-		-		-		12,877
Buildings		19,700				14		-		-		(1,590)		(518)		17,606
Structure		739				-		-		-		(113)		(119)		507
Rental property		15,125				2,575		-		508		-		(5,920)		12,288
Equipment		27,592				8,129		(106)		-		-		(11,215)		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.

				2023
		Beginning balance				Acquisition		Disposal		Other changes(*)		Impair-<br><br>ment		Deprecia-<br><br>tion		Ending balance
Land	W	12,877				-		-		-		-		-		12,877
Buildings		21,484				70		-		-		(1,301)		(554)		19,699
Structure		983				-		-		-		(109)		(135)		739
Rental property		13,855				8,791		(1,742)		-		-		(5,779)		15,125
Equipment		32,077				6,824		(431)		781		-		(11,658)		27,593
Other assets		140				730		-		(781)		-		-		89
	W	81,416				16,415		(2,173)		-		(1,410)		(18,126)		76,122

(*) Included amounts transferred from other property and equipment to equipment.

(c) As of December 31, 2024, there are no property and equipment provided as collateral.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

19. Intangible assets

(a) Details of intangible assets as of December 31, 2024 and 2023 are as follows:

		2024								2023
		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-ing amount		Acquisi-tion costs		Accum-ulated amortiz-ation		Accum-ulated -impairment loss		Carry<br><br>-ing amount
Development cost(*)	W	508,344		(343,941)		(1,167)		163,236		463,371		(282,677)		(1,001)		179,693
Software(*)		138,579		(106,309)		-		32,270		125,620		(95,723)		-		29,897
Membership		8,737		-		(380)		8,357		9,086		-		(729)		8,357
Others		5,526		(11)		-		5,515		17,507		(52)		-		17,455
	W	661,186		(450,261)		(1,547)		209,378		615,584		(378,452)		(1,730)		235,402

(*) 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, 2024 and 2023 are as follows:

		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.

		2023
		Beginning balance		Acquisition		Disposal		Other changes (*)		Impair<br><br>-ment<br><br>loss		Amortiza<br><br>-tion		Ending balance
Development cost	W	222,606		5,057		(1,887)		12,946		(1,001)		(58,028)		179,693
Software		35,406		4,643		(12)		1,199		-		(11,339)		29,897
Membership		5,975		3,133		(638)		-		(113)		-		8,357
Others		5,313		26,288		-		(14,145)		-		(1)		17,455
	W	269,300		39,121		(2,537)		-		(1,114)		(69,368)		235,402

(*) Included amounts transferred from intangible assets under development to development cost and software.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

20. Insured assets

Details of insurance held for cash, securities and property and equipment of the Company as of the December 31, 2024 and 2023 are as follows:

						Amount covered
Insurance type		Insured assets		Insurance company		2024		2023
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		Samsung Fire & Marine<br><br>Insurance Co., Ltd., etc.		105,890		106,450
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		MG Non-life Insurance Co., Ltd.		270		540
Other insurance 3		Elevator accident		Samsung Fire & Marine<br><br>Insurance Co., Ltd.		90		90
					W	161,750		162,580

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

21. Investment properties

(a) Details of investment properties as of December 31, 2024 and 2023 are as follows:

		2024						2023
		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		(2,496)		8,153		10,649		(2,284)		8,365
	W	16,681		(2,496)		14,185		16,681		(2,284)		14,397

(b) Changes in investment properties for the years ended December 31, 2024 and 2023 are as follows:

		2024
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,365		(212)		8,153
	W	14,397		(212)		14,185
		2023
---	---	---	---	---	---	---
		Beginning balance		Depreciation		Ending balance
Land	W	6,032		-		6,032
Buildings		8,578		(213)		8,365
	W	14,610		(213)		14,397

(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, 2024 and 2023 are as follows:

		2024		2023
Rental income	W	1,681		758
Operating expenses		212		213

(d) Fair value measurement

The fair value of investment properties as of December 31, 2024 and 2023 are as follows:

		2024		2023
Land	W	13,850		16,320
Buildings		13,161		16,320
	W	27,011		32,640

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.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives

(a) Notional amount of open interest in derivatives instruments as of December 31, 2024 and 2023 are as follows:

		2024		2023
Currency related derivatives:
Exchange traded:
Currency futures	W	787,438		768,905
Equity related derivatives:
Exchange traded
Equity futures		156,694		269,160
Over the counter:
Equity options		343,508		384,417
Interest rate related derivatives:
Exchange traded
Interest rate futures		68,534		99,325
Other derivatives:
Exchange traded:
Commodity futures		7,704		5,780
		1,363,878		1,527,587
Hedges:
Fair value hedges:
Currency forward		352,619		314,757
Cash flow hedges:
Currency forward		2,034,281		1,497,561
Currency swaps		3,127,576		2,816,192
Interest rate forward		2,700,358		1,681,185
		8,214,834		6,309,695
	W	9,578,712		7,837,282

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives (continued)

(b) Fair value

The fair values of derivatives held as of December 31, 2024 and 2023 are as follows:

		2024				2023
		Assets		Liabilities		Assets		Liabilities
Currency related derivatives:
Exchange traded:
Currency futures	W	-		-		30		-
Equity related derivatives:
Exchange traded:
Stock futures		-		159		763		39
Over the counter:
Stock options		526		-		4,625		-
Other derivatives:
Exchange traded:
Commodity futures		97		86		78		69
		623		245		5,496		108
Hedges:
Fair value hedges:
Currency forward		-		29,428		2,186		764
Cash flow hedges:
Currency forward		-		172,676		20,762		36,686
Currency swaps		2,369		245,963		38,417		96,487
Interest rate forward		114,530		53,280		49,517		105,895
		116,899		501,347		110,882		239,832
	W	117,522		501,592		116,378		239,940

(c) Gains or losses related to derivatives

Details of gains or losses related to derivatives for the years ended December 31, 2024 and 2023 are as follows:

			2024		2023
Gains related to derivatives	W	65,275			147,499
Losses related to derivatives		687,835			301,322

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives

Details of valuation gains and losses of derivatives for the years ended December 31, 2024 and 2023 are as follows:

		2024
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Equity related derivatives:
Exchange traded:	W
Equity futures		-		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 tax effect.

(*2) The change in the accumulated other comprehensive income for the year ended December 31, 2024, amounting to W (88,537) million, arising from expired bond forwards and interest rate swaps as of December 31, 2024, has been excluded.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives (continued)

(d) Gains and losses on valuation of derivatives (continued)

		2023
		Profit or loss				Other comprehensive income (*1) (*2)
		Valuation gain		Valuation loss
Currency related derivatives:
Exchange traded:
Currency futures	W	30		-		-
Equity related derivatives:
Exchange traded:
Equity futures		763		39		-
Over the counter:
Equity options		1,295		879		-
Other derivatives:
Exchange traded:
Commodity futures		77		69		-
		2,165		987		-
Hedges:
Fair value hedges:
Currency forward		2,186		1,151		-
Cash flow hedges:
Currency forward		14,818		15,648		3,098
Currency swaps		6,858		79,377		7,019
Interest rate forward		149		2,281		148,331
		24,011		98,457		158,448
	W	26,176		99,444		158,448

(*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the tax effect.

(*2) Excluded the change in the other comprehensive income for the year ended December 31, 2023, amounting to W (14,659) million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2023.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		2024
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	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.

		2023
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	1,566		(1,977)		(411)

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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 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.

		2023
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	148,331		(2,132)		-
Foreign currency risk		10,117		(5,466)		(112,246)
Discontinuation of<br><br>Hedging (*3)		(14,659)		-		14,659
	W	143,789		(7,598)		(97,587)

(*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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives (continued)

(f) Effects of hedge accounting on statement of financial position, statement of comprehensive income, and 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, 2024 and 2023 are as follows:

		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.

		2023
		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	202,945		18,144		815,507		361,589		283,000		-		1,681,185
- Average price		2.27%		2.38%		2.53%		3.42%		3.66%		-
- Average hedge ratio		100.0%		100.0%		100.0%		100.0%		100.0%		-		100.0%
Foreign currency risk(*)
- Nominal amount of hedging instruments	W	1,223,220		876,204		655,262		766,337		1,080,163		27,324		4,628,510
- 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 1,231.12, EUR/KRW 1,381.85, GBP/KRW 1,484.00, AUD/KRW 858.03, and SEK/KRW 126.81.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives (continued)

(f) Effects of hedge accounting on statement of financial position, statement of comprehensive income, and 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, 2024 and 2023

		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	W	2,034,281		-		172,676		(173,472)
		2023
---	---	---	---	---	---	---	---	---	---
		Nominal amount		Carrying value				Fair value changes during the period
				Asset		Liability
Fair value hedge:
Currency forward	W	314,756		2,186		764		1,035
Cash flow hedge:
Interest rate forward		1,681,185		49,517		105,895		144,167
Currency swap		2,816,192		38,417		96,487		(63,424)
Currency forward	W	1,497,561		20,762		36,686		3,880

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

22. Derivatives (continued)

(f) Effects of hedge accounting on statement of financial position, statement of comprehensive income, and 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, 2024 and 2023

		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	W	3,698,841		-		-		-		413,772		79,166
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		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	337,182		-		-		-		1,445		-
Cash flow hedge
Interest rate risk: bonds in won and in foreign currencies		641,750		-		-		-		-		9,401
Foreign exchange risk: bonds and loans in foreign currencies	W	3,367,726		-		-		-		67,884		50,627

(g) As of December 31, 2024, due from banks with restriction on use related to derivative transactions is W 74,296 million (W 72,150 as of December 31, 2023) and W 24,231 million of which is deposited at Shinhan Securities Co., Ltd., a related party.

(h) As of December 31, 2024, financial assets of W718,881 million (W500,445 million as of December 31, 2023) 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 party, Shinhan Securities Co., Ltd. and Shinhan Bank Co., Ltd. is W22,155 and W115,966 million, respectively.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

23. Other assets

Other assets as of December 31, 2024 and 2023 are as follows:

		2024		2023
Prepaid expense	W	7,898		9,887
Prepayments		9		792
Others		38		15
	W	7,945		10,694

24. Pledged Assets

The assets pledged as collateral as of December 31, 2024 and 2023 are as follows:

		2024		2023		Reason for collateral
Securities at fair value through profit or loss	W	101,197		132,226		Variable annuity funds substitute securities
Securities at fair value through other comprehensive income		512,157		294,262		Derivatives, compensation joint fund
Securities at amortized cost		105,527		82,252		Derivatives
Investment property		376		-		Settlement of mortgage loan
	W	719,257		508,740

25. Insurance contract liabilities

(a) The carrying amount of insurance contract liabilities as of December 31, 2024 and 2023, is as follows:

		2024		2023
Life	W	17,609,493		14,357,124
Health		5,411,591		5,194,258
Pension savings		20,427,713		20,752,206
Variable insurance		4,970,853		5,225,398
	W	48,419,650		45,528,986

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows:

		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 death	W	745,498		9,632		37,819		-		-		-		-
Non-participating death		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 death		3,332,895		116,290		551,776		-		-		-		-
Variable death		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		-
	W	34,140,066		1,313,020		7,175,728		3,908,127		19,038		48,386		171

(*) The above table is prepared for remaining coverage, and the negative amount represents asset for remaining coverage. Non-par refers to insurance contracts for which changes in assumptions that relate to financial risk do not have a substantial effect on the amounts paid to a policyholder so that payments to the policyholder rarely vary with returns on underlying items. Indirect-par refers to insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to a policyholder and payments to the policyholder vary with returns on underlying items. Underlying items are clearly identified and a substantial share of the returns on the underlying items is paid to the policyholder but that amount is not a significant portion of the total contractual benefits. Direct-par is insurance contracts with direct participation features.

		2023
		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 death	W	675,617		9,875		25,350		-		-		-		-
Non-participating death		7,125,640		453,486		2,182,761		-		-		-		-
Participating health		42,393		667		3,927		-		-		-		-
Non-participating health		1,366,376		421,732		2,670,104		-		-		-		98
Participating annuity & savings		1,125,639		3,557		1,960		-		-		-		-
Non-participating annuity & savings		415,641		52		24		-		-		-		-
Indirect-Par
Non-participating death		2,589,567		110,308		727,506		-		-		-		-
Variable death		510,860		62,229		257,424		-		-		-		-
Participating annuity & savings		2,731,757		5,402		57,078		-		-		-		-
Non-participating annuity & savings		13,187,900		43,293		1,011,998		-		-		-		-
Asset-linked annuity & savings		1,405,274		2,417		137,998		-		-		-		-
Direct-Par
Variable annuity & savings		-		-		-		4,222,532		19,918		92,596		-
	W	31,176,664		1,113,018		7,076,130		4,222,532		19,918		92,596		98

(*) The above table is prepared for remaining coverage, and the negative amount represents asset for remaining coverage. Non-par refers to insurance contracts for which changes in assumptions that relate to financial risk do not have a substantial effect on the amounts paid to a policyholder so that payments to the policyholder rarely vary with returns on underlying items. Indirect-par refers to insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to a policyholder and payments to the policyholder vary with returns on underlying items. Underlying items are clearly identified and a substantial share of the returns on the underlying items is paid to the policyholder but that amount is not a significant portion of the total contractual benefits. Direct-par is insurance contracts with direct participation features.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(c) As of December 31, 2024, and December 31, 2023, the Commpany applied the following assumptions for estimates future cash flows for the contracts held, along with the basis for their determination.

		Assumptions
Classification		2024		2023		Assumptions used and measurement basis
Surrender ratio		0% ~ 69.75%		0% ~ 73.78%		- The ratio of surrendered contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-surrender-value insurance products), and duration.<br><br>- For zero/low-surrender-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		8% ~ 316%		17% ~ 756%		- 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
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		2.31% ~ 4.55%		3.75% ~ 4.80%		- 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below:

		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 death
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 death
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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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 death
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 death
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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2023
		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 death
Expected claim (A) W		12,441		12,626		12,785		12,929		13,047		13,132		13,178		13,186		13,156		13,084		62,661		54,846		45,231		37,162		97,731		221,946
Risk Premium (B)		31,681		32,700		33,737		34,814		35,849		36,845		37,780		38,669		39,482		40,177		207,114		207,083		196,267		173,077		350,054		737,626
Loss ratio (A/B)		39.27%		38.61%		37.90%		37.14%		36.39%		35.64%		34.88%		34.10%		33.32%		32.56%		30.25%		26.48%		23.05%		21.47%		27.92%		30.09%
Non-participating death
Expected claim (A) W		473,453		477,746		481,794		485,059		486,852		489,099		491,743		493,679		494,649		494,327		2,445,819		2,274,125		1,994,745		1,604,631		4,632,966		8,754,216
Risk Premium (B)		548,897		551,069		555,951		561,691		568,546		576,270		583,860		590,750		598,494		605,513		3,099,560		3,110,326		2,990,179		2,682,341		8,226,377		11,794,725
Loss ratio (A/B)		86.26%		86.69%		86.66%		86.36%		85.63%		84.87%		84.22%		83.57%		82.65%		81.64%		78.91%		73.12%		66.71%		59.82%		56.32%		74.22%
Participating health
Expected claim (A) W		2,502		2,162		2,041		2,002		1,807		1,708		1,641		1,562		1,474		1,389		5,713		3,802		2,409		1,493		4,135		22,948
Risk Premium (B)		3,544		3,036		2,907		2,896		2,680		2,583		2,524		2,448		2,357		2,269		9,997		7,562		5,535		3,969		8,964		38,053
Loss ratio (A/B)		70.61%		71.23%		70.23%		69.13%		67.43%		66.14%		65.02%		63.80%		62.52%		61.20%		57.15%		50.28%		43.52%		37.62%		46.13%		60.31%
Non-participating health
Expected claim (A) W		590,405		583,230		573,153		568,725		571,852		579,135		584,229		581,174		579,119		583,735		3,000,916		3,137,041		3,208,093		3,180,572		16,703,148		13,134,371
Risk Premium (B)		581,127		568,861		555,090		544,123		537,203		534,923		534,007		528,281		525,082		530,053		2,663,552		2,682,334		2,651,537		2,535,672		11,330,546		11,246,343
Loss ratio (A/B)		101.60%		102.53%		103.25%		104.52%		106.45%		108.27%		109.40%		110.01%		110.29%		110.13%		112.67%		116.95%		120.99%		125.43%		147.42%		116.79%
Participating annuity & savings
Expected claim (A) W		1,403		1,208		1,024		861		709		582		472		396		346		310		1,289		1,560		2,335		3,498		27,818		14,741
Risk Premium (B)		2,840		2,573		2,337		2,115		1,894		1,701		1,532		1,394		1,327		1,290		6,696		8,701		11,792		15,240		72,628		48,235
Loss ratio (A/B)		49.41%		46.95%		43.80%		40.70%		37.42%		34.19%		30.84%		28.41%		26.09%		24.07%		19.26%		17.93%		19.80%		22.95%		38.30%		30.56%
Non-participating annuity & savings
Expected claim (A) W		93		89		88		66		18		17		16		15		14		13		58		53		59		70		344		552
Risk Premium (B)		179		181		154		138		47		56		54		53		53		52		256		254		252		241		795		1,459
Loss ratio (A/B)		52.25%		49.06%		57.38%		47.49%		38.20%		31.06%		29.48%		28.25%		26.93%		25.26%		22.53%		20.88%		23.36%		29.19%		43.28%		37.85%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(d) Expected claims by period compared to risk premiums are as below: (continued)

		2023
		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 death
Expected claim (A) W		122,576		124,918		127,639		128,307		128,923		130,877		131,095		132,182		134,820		134,868		685,816		689,880		684,014		649,434		2,491,967		2,744,943
Risk Premium (B)		125,802		126,439		127,766		128,513		128,933		129,875		130,474		131,644		133,462		134,159		689,389		713,576		722,848		698,924		2,341,548		2,800,286
Loss ratio (A/B)		97.44%		98.80%		99.90%		99.84%		99.99%		100.77%		100.48%		100.41%		101.02%		100.53%		99.48%		96.68%		94.63%		92.92%		106.42%		98.02%
Variable death
Expected claim (A) W		54,255		54,072		54,145		54,057		54,059		54,362		54,424		54,581		54,745		54,771		282,164		297,508		317,227		327,141		1,401,416		1,245,824
Risk Premium (B)		68,750		68,308		68,227		68,089		67,937		68,144		68,475		69,096		69,863		70,707		372,093		403,263		421,114		402,458		994,515		1,493,408
Loss ratio (A/B)		78.92%		79.16%		79.36%		79.39%		79.57%		79.78%		79.48%		78.99%		78.36%		77.46%		75.83%		73.78%		75.33%		81.29%		140.91%		83.42%
Participating annuity & savings
Expected claim (A) W		470		445		428		410		392		371		354		338		317		299		1,289		937		534		246		407		4,820
Risk Premium (B)		1,149		1,000		923		853		777		702		627		562		498		438		1,600		1,027		643		305		498		8,365
Loss ratio (A/B)		40.91%		44.51%		46.41%		48.01%		50.37%		52.80%		56.50%		60.17%		63.68%		68.31%		80.58%		91.20%		83.05%		80.51%		81.73%		57.61%
Non-participating annuity & savings
Expected claim (A) W		6,587		6,107		5,806		5,578		5,298		5,065		4,861		4,673		4,454		4,179		18,310		13,931		10,094		6,359		5,285		69,390
Risk Premium (B)		9,136		8,341		7,873		7,475		7,057		6,707		6,411		6,153		5,831		5,432		23,770		17,771		13,150		8,794		9,221		92,821
Loss ratio (A/B)		72.10%		73.23%		73.74%		74.63%		75.07%		75.52%		75.81%		75.95%		76.39%		76.93%		77.03%		78.39%		76.76%		72.31%		57.31%		74.76%
Asset-linked annuity & savings
Expected claim (A) W		918		872		846		816		792		765		730		696		665		616		2,599		1,895		1,329		840		906		9,966
Risk Premium (B)		1,205		1,137		1,096		1,061		1,027		985		939		897		852		769		3,198		2,288		1,555		937		781		12,556
Loss ratio (A/B)		76.19%		76.69%		77.14%		76.96%		77.16%		77.70%		77.77%		77.59%		78.02%		80.13%		81.26%		82.80%		85.49%		89.66%		115.97%		79.37%
Direct-Par
Variable annuity & savings
Expected claim (A) W		8,048		7,336		6,732		6,167		5,679		5,258		4,878		4,535		4,219		3,870		15,067		9,890		6,174		3,511		4,387		66,461
Risk Premium (B)		9,959		9,142		8,399		7,700		7,060		6,515		6,016		5,545		5,091		4,672		18,581		12,644		8,574		5,600		11,820		84,541
Loss ratio (A/B)		80.82%		80.25%		80.15%		80.09%		80.44%		80.70%		81.07%		81.79%		82.88%		82.82%		81.09%		78.22%		72.01%		62.71%		37.12%		78.61%
Total
Expected claim (A) W		1,273,151		1,270,811		1,266,481		1,264,977		1,269,428		1,280,371		1,287,621		1,287,017		1,287,978		1,291,461		6,521,701		6,485,468		6,272,244		5,814,957		25,370,510		26,290,178
Risk Premium (B)		1,384,269		1,372,787		1,364,460		1,359,468		1,359,010		1,365,306		1,372,699		1,375,492		1,382,392		1,395,531		7,095,806		7,166,829		7,023,446		6,527,558		23,347,747		28,358,418
Loss ratio (A/B)		91.97%		92.57%		92.82%		93.05%		93.41%		93.78%		93.80%		93.57%		93.17%		92.54%		91.91%		90.49%		89.30%		89.08%		108.66%		92.71%

(*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

As of and for the years ended December 31, 2024 and 2023

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, 2024 and 2023 is as follows:

		2024		2023
Expected loss ratio (A)		93.11%		92.24%
Actual loss ratio (B)		96.26%		92.32%
Ratio of expected claims to actual claims (C=A-B) (%p)		(3.15)%		(0.08)%

(*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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost

		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 death
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 death
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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost (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 death
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 death
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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost (continued)

		2023
		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 death
Expected maintenance expense, etc. (A)		W 2,787		2,790		2,792		2,793		2,360		2,354		2,347		2,338		2,328		2,316		11,326		10,769		10,158		9,435		24,412		45,531
Planned maintenance cost (B)		4,004		3,561		3,159		2,825		2,543		2,299		2,106		1,942		1,806		1,691		7,231		5,732		4,513		3,390		5,273		33,468
Ratio (A/B)		69.60%		78.36%		88.39%		98.86%		92.80%		102.37%		111.42%		120.42%		128.91%		137.01%		156.62%		187.88%		225.09%		278.35%		462.97%		136.04%
Non-participating death
Expected maintenance expense, etc. (A)		W 93,347		91,345		89,864		88,433		75,834		73,620		72,196		70,888		69,627		68,291		326,561		299,509		276,069		250,368		919,149		1,369,059
Planned maintenance cost (B)		326,133		291,111		263,302		239,615		224,731		209,546		195,057		180,887		166,864		155,724		658,842		492,388		376,996		271,985		507,616		2,897,946
Ratio (A/B)		28.62%		31.38%		34.13%		36.91%		33.74%		35.13%		37.01%		39.19%		41.73%		43.85%		49.57%		60.83%		73.23%		92.05%		181.07%		47.24%
Participating health
Expected maintenance expense, etc. (A)		W 344		290		270		265		228		220		215		211		206		202		957		880		804		717		1,698		3,999
Planned maintenance cost (B)		133		102		90		84		74		68		64		60		57		53		223		165		123		89		152		1,000
Ratio (A/B)		257.72%		282.98%		302.05%		313.71%		307.86%		321.70%		335.33%		349.45%		363.78%		379.89%		429.29%		532.21%		656.43%		801.14%		1119.83%		399.90%
Non-participating health
Expected maintenance expense, etc. (A)		W 116,023		109,589		104,389		100,095		92,406		90,040		87,879		85,482		83,280		81,805		388,789		347,074		312,332		283,443		1,200,365		1,620,655
Planned maintenance cost (B)		360,510		326,281		299,751		278,354		261,412		247,802		235,809		225,738		216,931		209,490		962,223		773,439		618,222		580,794		1,854,415		3,987,724
Ratio (A/B)		32.18%		33.59%		34.83%		35.96%		35.35%		36.34%		37.27%		37.87%		38.39%		39.05%		40.41%		44.87%		50.52%		48.80%		64.73%		40.64%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 1,215		1,207		1,201		1,194		906		898		889		881		874		866		4,216		4,033		3,838		3,621		11,312		18,063
Planned maintenance cost (B)		44		34		28		23		20		17		15		14		13		12		58		54		50		45		113		311
Ratio (A/B)		2748.03%		3569.43%		4326.64%		5093.15%		4528.89%		5191.09%		5914.15%		6516.93%		6754.98%		7007.43%		7312.00%		7450.85%		7607.94%		7965.61%		10036.73%		5800.11%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 790		739		541		455		10		9		9		9		9		8		39		35		32		30		89		2,478
Planned maintenance cost (B)		1,233		1,148		847		699		15		14		14		13		12		12		52		42		35		28		60		3,814
Ratio (A/B)		64.07%		64.33%		63.91%		65.03%		65.22%		66.43%		67.21%		68.14%		69.47%		70.70%		74.74%		82.81%		92.94%		106.76%		147.88%		64.97%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(e) Expected maintenance expense by period compared to planned maintenance cost (continued)

		2023
		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 death
Expected maintenance expense, etc. (A)		W 25,778		25,249		24,863		24,549		21,294		20,915		20,582		20,304		20,095		19,805		94,703		87,978		81,660		74,335		264,923		392,672
Planned maintenance cost (B)		84,951		76,653		69,203		62,686		56,404		50,330		45,290		41,013		37,730		34,555		133,954		99,403		81,025		63,867		160,771		692,051
Ratio (A/B)		30.34%		32.94%		35.93%		39.16%		37.75%		41.56%		45.45%		49.51%		53.26%		57.32%		70.70%		88.51%		100.78%		116.39%		164.78%		56.74%
Variable death
Expected maintenance expense, etc. (A)		W 14,989		14,750		14,530		14,318		13,762		13,548		13,366		13,180		12,966		12,768		61,148		55,853		49,733		42,863		126,299		237,517
Planned maintenance cost (B)		51,121		46,008		41,806		37,802		33,953		30,653		27,834		25,186		22,679		20,949		85,908		66,066		55,895		45,669		94,437		430,066
Ratio (A/B)		29.32%		32.06%		34.76%		37.88%		40.53%		44.20%		48.02%		52.33%		57.17%		60.95%		71.18%		84.54%		88.97%		93.86%		133.74%		55.23%
Participating annuity & savings
Expected maintenance expense, etc. (A)		W 4,852		4,694		4,525		4,356		3,249		3,149		3,057		2,962		2,863		2,772		12,768		11,323		10,291		9,555		42,232		58,745
Planned maintenance cost (B)		3,433		3,026		2,603		2,235		1,984		1,799		1,644		1,504		1,381		1,278		5,238		3,888		3,054		2,532		6,398		26,352
Ratio (A/B)		141.32%		155.15%		173.84%		194.92%		163.76%		174.99%		185.98%		196.90%		207.32%		216.84%		243.75%		291.23%		336.94%		377.38%		660.08%		222.92%
Non-participating annuity & savings
Expected maintenance expense, etc. (A)		W 31,693		27,200		24,151		22,232		15,972		14,939		14,004		13,195		12,488		11,832		51,239		40,607		32,646		26,340		79,487		248,754
Planned maintenance cost (B)		33,485		24,812		19,458		16,690		14,694		12,930		11,495		10,334		9,361		8,479		33,043		22,078		15,274		10,604		20,261		184,916
Ratio (A/B)		94.65%		109.62%		124.12%		133.20%		108.70%		115.53%		121.83%		127.68%		133.40%		139.54%		155.07%		183.93%		213.73%		248.38%		392.32%		134.52%
Asset-linked annuity & savings
Expected maintenance expense, etc. (A)		W 2,661		2,462		2,314		2,178		1,596		1,500		1,416		1,342		1,259		1,109		4,725		3,660		2,972		2,562		10,010		23,684
Planned maintenance cost (B)		2,543		2,268		2,071		1,893		1,718		1,579		1,453		1,336		1,199		926		3,559		2,186		1,327		828		1,345		18,797
Ratio (A/B)		104.63%		108.54%		111.73%		115.05%		92.89%		95.03%		97.45%		100.43%		105.01%		119.79%		132.75%		167.45%		223.89%		309.39%		744.49%		126.00%
Direct-Par
Variable annuity & savings
Expected maintenance expense, etc. (A)		W 21,486		19,224		17,168		15,306		13,589		12,131		10,859		9,686		8,589		7,688		28,716		18,482		13,180		10,245		34,368		157,581
Planned maintenance cost (B)		16,707		13,018		11,151		9,350		7,951		6,809		5,553		5,072		4,394		3,857		13,798		8,245		5,136		3,251		5,948		89,658
Ratio (A/B)		128.61%		147.67%		153.96%		163.71%		170.92%		178.15%		195.57%		190.98%		195.45%		199.33%		208.12%		224.15%		256.60%		315.10%		577.78%		175.76%
Total
Expected maintenance expense, etc. (A)		W 315,965		299,539		286,608		276,174		241,206		233,323		226,819		220,478		214,584		209,462		985,187		880,203		793,715		713,514		2,714,344		4,178,738

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

Planned maintenance cost (B)		884,297		788,022		713,469		652,256		605,499		563,846		526,334		493,099		462,427		437,026		1,904,129		1,473,686		1,161,650		983,082		2,656,789		8,366,103
Ratio (A/B)		35.73%		38.01%		40.17%		42.34%		39.84%		41.38%		43.09%		44.71%		46.40%		47.93%		51.74%		59.73%		68.33%		72.58%		102.17%		49.95%

(*1) Prepared for remaining coverage of underlying insurance contracts.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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:

		2024
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	43,267,289		433,569		1,827,896		45,528,754
Insurance revenue:
Contracts under the modified retrospective approach		(469,550)		-		-		(469,550)
Contracts under the fair value approach		(1,659,168)		-		-		(1,659,168)
Contracts after transition		(718,142)		-		-		(718,142)
		(2,846,860)		-		-		(2,846,860)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,663,910		1,663,910
Adjustments to liabilities for incurred claims		-		-		27,813		27,813
Losses and reversals of losses on onerous contracts		-		75,044		-		75,044
Amortization of insurance acquisition cash flows		348,729		-		-		348,729
Experience adjustments to insurance acquisition cash flows that are not related to future service		(31,366)		-		-		(31,366)
Others		195		(16,683)		-		(16,488)
		317,558		58,361		1,691,723		2,067,642
Investment components and premium refunds		(4,769,727)		-		4,769,727		-
Insurance finance income or expenses recognized in:
Profit or loss		1,638,144		3,361		63,925		1,705,430
Other comprehensive income		3,189,596		4,655		3,304		3,197,555
		4,827,740		8,016		67,229		4,902,985
Cash flows:
Premiums received		6,881,063		-		-		6,881,063
Insurance acquisition cash flows		(1,572,337)		-		-		(1,572,337)
Claims and other insurance service expenses paid		(307)		-		(1,600,548)		(1,600,855)
Investment components received (paid) and premium refunds		-		-		(4,941,161)		(4,941,161)
		5,308,419		-		(6,541,709)		(1,233,290)
Other changes		5		(5)		-		-
Closing balance:
Insurance contract liabilities	W	46,104,424		499,941		1,814,866		48,419,231

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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)

		2023
		Liability for remaining coverage				Liability for incurred claims		Total
		Excluding loss component		Loss component
Opening balance:
Insurance contract liabilities	W	40,714,354		402,680		1,809,940		42,926,974
Insurance revenue:
Contracts under the modified retrospective approach		(554,687)		-		-		(554,687)
Contracts under the fair value approach		(1,672,506)		-		-		(1,672,506)
Contracts after transition		(401,540)		-		-		(401,540)
		(2,628,733)		-		-		(2,628,733)
Insurance service expenses:
Incurred claims and other insurance service expenses		-		-		1,542,097		1,542,097
Adjustments to liabilities for incurred claims		-		-		11,529		11,529
Losses and reversals of losses on onerous contracts		-		41,393		-		41,393
Amortization of insurance acquisition cash flows		256,378		-		-		256,378
Experience adjustments to insurance acquisition cash flows that are not related to future service		(25,768)		-		-		(25,768)
Others		143		(16,549)		-		(16,406)
		230,753		24,844		1,553,626		1,809,223
Investment components and premium refunds		(5,281,435)		-		5,281,435		-
Insurance finance income or expenses recognized in:
Profit or loss		2,070,718		2,611		62,857		2,136,186
Other comprehensive income		2,942,875		3,439		1,172		2,947,486
		5,013,593		6,050		64,029		5,083,672
Cash flows:
Premiums received		6,196,635		-		-		6,196,635
Insurance acquisition cash flows		(977,431)		-		-		(977,431)
Claims and other insurance service expenses paid		(452)		-		(1,525,997)		(1,526,449)
Investment components received (paid) and premium refunds		-		-		(5,355,137)		(5,355,137)
		5,218,752		-		(6,881,134)		(1,662,382)
Other changes		5		(5)		-		-
Closing balance:
Insurance contract liabilities	W	43,267,289		433,569		1,827,896		45,528,754

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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:

		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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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)

		2023
		Liability for remaining coverage		Liability for incurred claims				Total
										Estimates of present value of future cash flows		Risk adjustment for non-financial risk
Opening balance:
Insurance contract liabilities	W	33		146		10		189
Insurance revenue		(406)		-		-		(406)
Insurance service expenses:
Incurred claims and other insurance service expenses		33		842		4		879
Adjustments to liabilities for incurred claims		-		(3)		(7)		(10)
Losses and reversals of losses on onerous contracts		23		-		-		23
		56		839		(3)		892
Investment components and premium refunds		(9)		9		-		-
Insurance finance income or expenses recognized in:
Profit or loss		-		4		-		4
Other comprehensive income		-		2		-		2
		-		6		-		6
Cash flows:
Premiums received		457		-		-		457
Insurance acquisition cash flows		(33)		-		-		(33)
Claims and other insurance service expenses paid		-		(864)		-		(864)
Investment components received (paid) and premium refunds		-		(9)		-		(9)
		424		(873)		-		(449)
Closing balance:
Insurance contract liabilities	W	98		127		7		232

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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:

		2024
		Estimates of present value of future cash flows			Risk adjustment for non-financial risk			Contractual service margin (CSM)
											Contracts under modified retrospective approach		Contracts under fair value approach		Contract after transition		Subtotal			Total
Opening balance:
Insurance contract liabilities	W	37,208,495				1,151,534		1,906,494		3,953,330		1,308,901		7,168,725				45,528,754
Changes that relate to future service:
Changes in estimates that adjust the CSM		641,135				91,337		(170,666)		(190,874)		(370,932)		(732,472)				-
Changes in estimates that do not adjust the CSM		50,788				(537)		-		-		-		-				50,251
Contracts initially recognized in the period		(1,396,481)				156,592		-		-		1,264,682		1,264,682				24,793
		(704,558)				247,392		(170,666)		(190,874)		893,750		532,210				75,044
Changes that relate to current service:
CSM recognized for services provided		-				-		(158,399)		(331,569)		(242,682)		(732,650)				(732,650)
Change in risk adjustment		-				(119,141)		-		-		-		-				(119,141)
Experience adjustments		(30,284)				-		-		-		-		-				(30,284)
		(30,284)				(119,141)		(158,399)		(331,569)		(242,682)		(732,650)				(882,075)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		43,967				(16,154)		-		-		-		-				27,813
Insurance finance income or expenses recognized in:
Profit or loss		1,408,002				41,599		57,572		116,537		81,720		255,829				1,705,430
Other comprehensive income		3,156,696				40,859		-		-		-		-				3,197,555
		4,564,698				82,458		57,572		116,537		81,720		255,829				4,902,985
Cash flows:
Premiums received		6,881,063				-		-		-		-		-				6,881,063
Insurance acquisition cash flows		(1,572,337)				-		-		-		-		-				(1,572,337)
Claims and other insurance service expenses paid		(1,600,855)				-		-		-		-		-				(1,600,855)
Investment components received (paid) and premium refunds		(4,941,161)				-		-		-		-		-				(4,941,161)
		(1,233,290)				-		-		-		-		-				(1,233,290)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

Closing balance:
Insurance contract liabilities	W	39,849,028		1,346,089		1,635,001		3,547,424		2,041,689		7,224,114		48,419,231

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)

		2023
		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin (CSM)								Total
								Contracts under modified retrospective approach		Contracts under fair value approach		Other contracts			Subtotal
Opening balance:
Insurance contract liabilities	W	34,850,352		1,151,709		2,344,826		3,885,156		694,931		6,924,913		42,926,974
Changes that relate to future service:
Changes in estimates that adjust the CSM		285,110		(84,264)		(298,984)		274,674		(176,536)		(200,846)		-
Changes in estimates that do not adjust the CSM		30,079		(4,204)		-		-		-		-		25,875
Contracts initially recognized in the period		(991,532)		105,273		-		-		901,777		901,777		15,518
		(676,343)		16,805		(298,984)		274,674		725,241		700,931		41,393
Changes that relate to current service:
CSM recognized for services provided		-		-		(206,316)		(331,639)		(158,870)		(696,825)		(696,825)
Change in risk adjustment		-		(101,283)		-		-		-		-		(101,283)
Experience adjustments		(74,324)		-		-		-		-		-		(74,324)
		(74,324)		(101,283)		(206,316)		(331,639)		(158,870)		(696,825)		(872,432)
Changes that relate to past service:
Adjustments to liabilities for incurred claims		21,944		(10,415)		-		-		-		-		11,529
Insurance finance income or expenses recognized in:
Profit or loss		1,853,897		42,583		66,968		125,139		47,599		239,706		2,136,186
Other comprehensive income		2,895,351		52,135		-		-		-		-		2,947,486
		4,749,248		94,718		66,968		125,139		47,599		239,706		5,083,672
Cash flows:
Premiums received		6,196,635		-		-		-		-		-		6,196,635
Insurance acquisition cash flows		(977,431)		-		-		-		-		-		(977,431)
Claims and other insurance service expenses paid		(1,526,449)		-		-		-		-		-		(1,526,449)
Investment components received (paid) and premium refunds		(5,355,137)		-		-		-		-		-		(5,355,137)
		(1,662,382)		-		-		-		-		-		(1,662,382)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

Closing balance:
Insurance contract liabilities	W	37,208,495		1,151,534		1,906,494		3,953,330		1,308,901		7,168,725		45,528,754

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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:

		2024
Changes that relate to future service		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
New contracts	W	(1,396,481)		156,592		1,264,682
Contracts other than new contracts
Effect of changes in assumptions
Surrender 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.

		2023
Changes that relate to future service		Estimates of present value of future cash flows		Risk adjustment for non-financial risk		Contractual service margin
New contracts	W	(991,532)		105,273		901,777
Contracts other than new contracts
Effect of changes in assumptions
Surrender rates (*)		30,886		-		(36,004)
Risk rates		214,882		-		(164,448)
Expense ratio		(78,272)		-		87,618
Other assumption		(271,845)		-		258,056
		(104,349)		-		145,222
Quantity changes and differences between expected and actual investment component		419,538		(88,468)		(371,943)
Loss component		-		-		25,875
		315,189		(88,468)		(200,846)
	W	(676,343)		16,805		700,931

(*) Included the effect of assumption changes in renewal rate.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(j) An analysis of insurance contract initially recognized for the years ended December 31, 2024 and 2023 is as follows – Contracts other than those to which the premium allocation approach has been applied:

		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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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	2,789,323		975,692		(4,765,475)		98,683		901,777		-
Onerous group of contracts		153,296		63,306		(207,674)		6,590		-		15,518
	W	2,942,619		1,038,998		(4,973,149)		105,273		901,777		15,518

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2024 and 2023 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied:

		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 death 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 death		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 death		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 death		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
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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2024 and 2023 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

		2023
		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 death W		1,001		983		965		948		931		914		897		880		863		845		3,925		3,391		2,837		2,239		3,731		25,350
Non-participating death		141,411		115,836		100,546		91,916		85,947		80,266		75,095		71,063		68,333		65,864		296,403		237,877		183,398		150,354		418,452		2,182,761
Participating health		315		265		243		233		209		194		183		172		160		150		607		409		278		191		318		3,927
Non-participating health		137,538		122,544		111,592		103,090		96,480		90,903		86,080		81,364		77,649		74,849		335,866		282,364		238,454		195,997		635,334		2,670,104
Participating annuity & savings		172		143		124		107		92		79		68		58		51		45		166		128		123		123		482		1,961
Non-participating annuity & savings		1		1		1		1		1		1		1		1		1		1		3		3		2		2		4		24
Indirect-Par
Non-participating death		42,796		36,849		32,557		29,780		27,587		25,821		24,670		23,796		23,076		22,383		101,614		85,170		69,317		55,503		126,587		727,506
Variable death		14,526		13,117		12,048		11,175		10,430		9,797		9,245		8,770		8,351		7,990		35,542		29,298		24,346		19,630		43,158		257,423
Participating annuity & savings		3,289		3,288		3,261		3,198		3,110		3,016		2,930		2,834		2,707		2,567		10,671		7,218		4,374		2,341		2,273		57,077
Non-participating annuity & savings		83,722		74,195		66,461		60,872		56,244		52,213		48,502		45,108		41,981		38,936		159,649		111,321		73,765		46,060		52,969		1,011,998
Asset-linked annuity & savings		12,077		11,110		10,486		9,961		8,989		7,761		7,165		6,732		6,242		5,377		20,975		13,062		7,917		4,702		5,442		137,998
Direct-Par
Variable annuity & savings		8,884		8,071		7,304		6,620		6,000		5,458		4,973		4,531		4,069		3,599		13,147		7,759		4,570		2,703		4,907		92,595
sW		445,732		386,402		345,588		317,901		296,020		276,423		259,809		245,309		233,483		222,606		978,568		778,000		609,381		479,845		1,293,657		7,168,724

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

25. Insurance contract liabilities (continued)

(l) As of December 31, 2024 and 2023, the composition and fair value amounts of the underlying items of insurance contracts with direct participation features are as follows:

Underlying items (*)		2024		2023
Cash and due from banks at amortized cost	W	294,963		322,933
Financial assets at fair value through profit or loss		3,561,126		3,934,491
Loans at amortized cost		32,489		66,790
Derivatives		(150)		674
Others		69,608		81,468
	W	3,958,036		4,406,356

(*) The carrying amounts of financial assets (liabilities) for variable insurance were W 5,498,129 million and W 5,940,453 million as of December 31, 2024 and 2023, respectively.

26. Reinsurance contract assets (liabilities)

(a) The carrying amount of reinsurance contract assets (liabilities) as of December 31, 2024 and 2023 is as follows:

		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
		2023
		Life		Health		Combined		Total
Reinsurance contract assets	W	-		-		62,815		62,815
Reinsurance contract liabilities		(27,045)		(66,075)		-		(93,120)
Net reinsurance contract assets (liabilities)	W	(27,045)		(66,075)		62,815		(30,305)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liabilities) 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:

		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:

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

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

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

26. Reinsurance contract assets (liabilities) (continued)

(b) Reconciliation from the opening to the closing balances of the net asset (liabilities) 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)

		2023
		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	8,452		5,237		45,328		59,017
Reinsurance contract liabilities		(106,247)		22,662		20,815		(62,770)
Net assets (liabilities)		(97,795)		27,899		66,143		(3,753)
Reinsurance revenue:
Recoveries on incurred claims and other incurred reinsurance service expenses		-		-		72,625		72,625
Changes in expected recoveries on past claims		-		-		(32,150)		(32,150)
Recognition and reversal of loss recovery component		-		1,383		-		1,383
Others		-		(1,498)		-		(1,498)
		-		(115)		40,475		40,360
Reinsurance service expenses:
Reinsurance contracts under the fair value approach		(52,637)		-		-		(52,637)
Other reinsurance contracts		(18,994)		-		-		(18,994)
		(71,631)		-		-		(71,631)
Investment components and reinsurance premium refunds		(152,684)		-		152,684		-
Reinsurance finance income and expenses recognized in:
Profit or loss		(2,157)		29		1,264		(864)
Other comprehensive income		(28,776)		384		117		(28,275)
		(30,933)		413		1,381		(29,139)
Cash flows:
Reinsurance premiums paid		229,288		-		-		229,288
Recoveries from reinsurance		-		-		(43,378)		(43,378)
Investment components received and reinsurance premium refunds		-		-		(152,052)		(152,052)
		229,288		-		(195,430)		33,858
Closing balance:
Reinsurance contract assets		19,436		5,055		38,324		62,815

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

Reinsurance contract liabilities		(143,191)		23,142		26,929		(93,120)
Net assets (liabilities)	W	(123,755)		28,197		65,253		(30,305)

(c) There have been no reinsurance contract assets (liabilities) to which the premium allocation approach has been applied for the years ended December 31, 2024 and 2023.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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:

		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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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)

		2023
		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	(52,365)		16,522		47,210		47,650		94,860		59,017
Reinsurance contract liabilities		(168,825)		22,870		68,110		15,075		83,185		(62,770)
Net assets (liabilities)		(221,190)		39,392		115,320		62,725		178,045		(3,753)
Changes that relate to future service:
Changes in estimates that adjust the CSM		43,044		4,615		(71,098)		24,653		(46,445)		1,214
Contracts initially recognized in the period		(9,696)		1,213		-		8,653		8,653		170
		33,348		5,828		(71,098)		33,306		(37,792)		1,384
Changes that relate to current service:
CSM recognized for services received		-		-		(8,120)		(7,244)		(15,364)		(15,364)
Change in risk adjustment		-		(2,482)		-		-		-		(2,482)
Experience adjustments		17,341		-		-		-		-		17,341
		17,341		(2,482)		(8,120)		(7,244)		(15,364)		(505)
Changes that relate to past service:
Adjustments to incurred claims component		(31,111)		(1,039)		-		-		-		(32,150)
Reinsurance finance income or expenses recognized in:
Profit or loss		(8,683)		1,712		3,188		2,919		6,107		(864)
Other comprehensive income		(31,970)		3,695		-		-		-		(28,275)
		(40,653)		5,407		3,188		2,919		6,107		(29,139)
Cash flows:
Reinsurance premiums paid		229,288		-		-		-		-		229,288
Recoveries from reinsurance		(43,378)		-		-		-		-		(43,378)
Investment components received and reinsurance premium refunds		(152,052)		-		-		-		-		(152,052)
		33,858		-		-		-		-		33,858
Closing balance:
Reinsurance contract assets		(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)	W	(208,407)		47,106		39,290		91,706		130,996		(30,305)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

26. Reinsurance contract assets (liabilities) (continued)

(e) An analysis of reinsurance contract initially recognized for the years ended December 31, 2024 and 2023 is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		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 contract	W	(159,792)			-			109,822			3,077			47,383		490
Net gain group of contract		(64,074)			-			68,159			1,574			(4,669)		990
	W	(223,866)			-			177,981			4,651			42,714		1,480
		2023
		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 contract	W	(70,076)			-			60,019			1,063			9,036		42
Net gain group of contract		(6,322)			-			6,683			150			(383)		128
	W	(76,398)			-			66,702			1,213			8,653		170

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

26. Reinsurance contract assets (liabilities) (continued)

(f) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2024 and 2023 in profit or loss is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

		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
		2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		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	5,256		4,777		12,166		15,305		33,456		70,960
Reinsurance contract liabilities		5,627		4,895		11,408		12,182		25,924		60,036
	W	10,883		9,672		23,574		27,487		59,380		130,996

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

27. Investment contract liabilities

Investment contract liabilities as of December 31, 2024 and 2023 are as follows:

		2024		2023
Financial liabilities at amortized cost (*)	W	1,332,468		1,831,826

(*) The amount is policyholders’ reserve for retirement pension contracts.

28. Policyholders’ equity adjustments

It requires estimating the related cash flows from dividends and measuring liabilities using discount rates that reflect assumptions and risks for participating insurance contracts, as per K-IFRS 1117.

In response to concerns regarding the discrepancy between past accounting practices under K-IFRS 1104 and the accurate representation of obligations to participating policyholders, the Company has adopted the methodology prescribed in Article 4-1(2) of the Insurance Supervisory Regulations to calculate liabilities associated with potential future obligations arising from unrealized gains on assets as of the reporting period end.

Policyholders’ equity adjustments are calculated in accordance with the Regulations on Supervision of Insurance Business. Details of policyholders’ equity adjustments as of December 31, 2024 and 2023 are as follows:

		2024		2023
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(362)		(1,025)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

29. Debentures

Debentures as of December 31, 2024 and 2023 are as follows:

		2024
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond<br><br>(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.

		2023
		Currency		Issue date		Redemption date		Contracted interest rate		Maturity		Face value		Book<br><br>Value (*2)
Subordinated bond<br><br>(unsecured) (*1)		KRW		2023.06.09		2033.06.09		5.20%		10 years	W	300,000		299,331

(*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, 2024 and 2023 are as follows:

		2024		2023
Account payables	W	16,438		22,302
Accrued expense		443,912		215,159
Rental deposits		865		567
	W	461,215		238,028

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

31. 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, 2024 and 2023 are as follows:

		2024		2023
Present value of defined benefit obligations	W	138,396		121,852
Fair value of plan assets		(154,730)		(156,109)
Recognized liabilities (assets) for defined benefit obligations	W	(16,334)		(34,257)

(b) Changes in the present value of defined benefit obligation for the years ended December 31, 2024 and 2023 were as

follows:

		2024		2023
Beginning balance	W	121,852		121,399
Current service cost		8,542		7,784
Interest expense		6,255		6,127
Remeasurement loss (gain):
Demographic assumptions		(106)		-
Financial assumptions		12,593		9,539
Experience adjustment		2,218		1,176
		14,705		10,715
Past service cost		40		92
Settlement		-		(160)
Salaries		(14,675)		(21,545)
Severance payment transferred from (to) associates		1,677		(2,560)
Ending balance	W	138,396		121,852

(c) Plan assets

Changes in the Plan assets for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Beginning balance	W	156,109		166,287
Expected return		8,036		9,079
Remeasurement factors		(2,407)		(1,725)
Contributions		-		3,000
Benefits Paid		(7,008)		(20,532)
Ending balance	W	154,730		156,109

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

31. Employee benefits (continued)

(d) The gains and losses related to the defined benefit plan

The gains and losses related to the defined benefit plan for the years ended December 31, 2024 and 2023 are as follows:

(*1) (*2)		2024		2023
Current service cost	W	8,542		7,784
Interest expense		6,255		6,127
Past service cost		40		92
Settlement gain		-		(160)
Expected return on plan assets		(8,036)		(9,079)
	W	6,801		4,764

(*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, W 269 million and W167 million for the years ended December 31, 2024 and 2023, respectively, were transferred to property and equipment, and intangible assets.

(*2) Termination benefits of W 24,251 million and W 36,538 million included in salaries were paid for the years ended December 31, 2024 and 2023, respectively.

(e) The gains and losses related to the defined contribution plan for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Operating expenses	W	4,943		4,525
Investment administration expenses		303		309
Total (*)	W	5,246		4,834

(*) Of the above gains and losses related to the defined contribution plan for the year ended December 31, 2024, W 156 million (W105 million for the year ended December 31, 2023) 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, 2024 and 2023 are as follows:

	2024				2023
	Ratio		Amount		Ratio		Amount
Time deposits	49.78%	W	77,025		57.01%	W	89,005
Retirement pension insurance	49.33%		76,326		40.56%		63,316
Others	0.89%		1,379		2.43%		3,788
	100.00%	W	154,730		100.00%	W	156,109

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

31. Employee benefits (continued)

(g) Actuarial assumptions as of December 31, 2024 and 2023 are as follows:

		2024		2023		Description
Discount rate (expected rate of return)		4.66%		5.20%		AA0 corporate bond yields
Future salary increase rate		4.03% + increase rate		3.65% + increase rate		Average for the past 5 years
Retirement rate		2% ~3%		2% ~3%		Average for the past 3 years
Weighted average maturity		10.9 years		11.2 years

(h) Sensitivity analysis

As of December 31, 2024 and 2023, changes in present value of the defined benefit obligations resulted from the change in key assumption are as follows:

		2024				2023
		Increase		Decrease		Increase		Decrease
Discount rate (1%p movement)	W	(13,532)		15,620		(12,108)		14,043
Future salary increase rate<br><br>(1%p movement)		15,566		(13,734)		14,133		(12,394)

(i) Defined contribution plan for the year ended December 31, 2025, is expected to be W 10,000 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

32. Provisions

(a) Details of provisions

Details of provisions at the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Provisions for restoration	W	16,479		16,103
Unused credit commitments provisions		253		1,854
Other long-term employee benefits provisions		13,802		13,361
Litigation provisions		352		862
Other provisions (*)		39,272		43,385
	W	70,158		75,565

(*) 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.

(b) Changes in unused credit commitments

Change in unused credit commitments for the years ended December 31, 2024 and 2023 are as follows:

		2024
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	652		1,202		-		1,854
Transfer (from) to 12-month expected credit losses		-		-		-		-
Transfer (from) to lifetime expected credit losses		-		-		-		-
Transfer (from) to impaired financial assets		-		-		-		-
Reversal		(405)		(1,196)		-		(1,601)
Ending balance	W	247		6		-		253
		2023
---	---	---	---	---	---	---	---	---
		12-month expected credit loss		Lifetime expected credit loss		Impaired financial asset		Total
Beginning balance	W	7		-		-		7
Transfer (from) to 12-month expected credit losses		-		-		-		-
Transfer (from) to lifetime expected credit losses		-		-		-		-
Transfer (from) to impaired financial assets		-		-		-		-
Provision		645		1,202		-		1,847
Ending balance	W	652		1,202		-		1,854

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

32. Provisions (continued)

(c) Changes in provisions

Change in provisions for the years ended December 31, 2024 and 2023 are as follows:

Classification		Provisions for restoration				Other long-term employee benefits provisions				Litigation provisions				Other provisions
			2024		2023		2024		2023		2024		2023		2024		2023
Beginning balance	W	16,103		16,657		13,361		13,270		862		809		43,385		51,975
Provision (Reverse)		277		276		1,544		724		(510)		53		41,575		27,145
Amount used		(93)		(1,042)		(854)		(1,276)		-		-		(45,688)		(35,735)
Others (*)		192		212		(249)		643		-		-		-		-
Ending balance	W	16,479		16,103		13,802		13,361		352		862		39,272		43,385

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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 Company's long-term service as of December 31, 2024 and 2023 are as follows

		2024		2023		Description
Discount rate		3.99%		4.70%		AA0 corporate bond yields
Future salary increase rate		4.03% + increase rate		3.65% + increase rate		Average for the past 5 years
Retirement rate		2% ~3%		2% ~3%		Average for the past 3 years

(e) Expected period of provision outflows

Expected period of provision outflows As of December 31, 2024 is as follows:

		2024
		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	17,087		1,750		14,985		352		-
Unused credit commitments provisions		253		140		106		5		2
Other long-term employee benefits provisions (*2)		13,953		1,322		3,286		1,831		7,514
Litigation provisions		352		-		-		352		-
Other provisions		39,272		23,557		3,442		2,765		9,508

(*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, 2024 and 2023 are as follows:

		2024		2023
Unearned revenue	W	181		578
Deposits		29,813		26,709
Accrued VAT		101		36
Others		1,174		5,210
	W	31,269		32,533

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

34. Equity

• Equity as of December 31, 2024 and 2023 are as follows:

		2024		2023
Share capital:
Common stocks	W	578,274		578,274
Hybrid bonds:
Hybrid bonds		299,452		299,452
Capital surplus:
Capital premium		819,351		819,351
Other capital surplus		672		672
		820,023		820,023
Capital adjustment:
Stock options		1,461		1,461
Accumulated other comprehensive income, net of tax:
Losses on valuation of securities at fair value through other comprehensive income		(1,766,417)		(2,497,260)
Net valuation loss from cash flow hedges		90,681		45,462
Net finance income from insurance contracts issued		218,656		2,572,059
Net finance income from reinsurance contracts held		11,736		13,280
Remeasurements of defined benefit liabilities		(28,718)		(16,124)
		(1,474,062)		117,417
Retained earnings:
Legal reserve		95,160		63,626
Voluntary reserve		3,810,489		64,346
Unappropriated retained earnings		2,931,771		6,501,950
		6,837,420		6,629,922
	W	7,062,568		8,446,549

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won, except per share data)

34. Equity (continued)

(b) Share capital

Share capital of the Company as of December 31, 2024 and 2023 are as follows:

		2024		2023
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

Details of Hybrid bonds as of December 31, 2024 and 2023 are as follows

		Issue date		Maturity date		Interest rate		2024		2023
Unsecured interest-bearing hybrid bonds		2020-08-11		2050-08-11		3.60%	W	300,000		300,000
Issue cost								(756)		(756)
Deferred tax effects								208		208
							W	299,452		299,452

The above hybrid bonds can be redeemed early by the Company from five years after issuance, and the interest rate will be adjusted only once five years after the issuance date. On the other hand, when the hybrid bonds mature, the Company has the right to choose whether to extend the maturity of the hybrid bonds with the same terms and condition.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

34. Equity (continued)

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2024 and 2023 are as follows:

		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	(2,491,054)		45,462		2,572,059		13,280		(6,206)		(16,124)		117,417
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
Policyholders’ equity adjustment (*)		(664)		-		-		-		-		-		(664)
Remeasurements of the defined benefit liability		-		-		-		-		-		(17,112)		(17,112)
Effects of hedge		-		62,906		-		-		-		-		62,906
Tax effects		(261,832)		(17,687)		844,155		554		(305)		4,518		569,403
Reclassification of retained earnings		-		-		-		-		41		-		41
Ending balance	W	(1,761,100)		90,681		218,656		11,736		(5,317)		(28,718)		(1,474,062)

(*) The Company disaggregates and records the unrealized gains and losses of securities at fair value through other comprehensive income in accumulated other comprehensive income and policyholders’ equity adjustments in accordance with the Regulations on Supervision of Insurance Business.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

34. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		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	(4,578,272)		(60,015)		4,734,969		34,045		(10,102)		(6,958)		113,667
Change due to fair value		2,795,772		-		(2,947,489)		(28,276)		1,113		-		(178,880)
Change due to disposal		49,176		-		-		-		4,199		-		53,375
Policyholders’ equity adjustment (*)		(591)		-		-		-		-		-		(591)
Remeasurements of the defined benefit liability		-		-		-		-		-		(12,441)		(12,441)
Effects of hedge		-		143,789		-		-		-		-		143,789
Tax effects		(757,139)		(38,312)		784,579		7,511		(1,416)		3,275		(1,502)
Ending balance	W	(2,491,054)		45,462		2,572,059		13,280		(6,206)		(16,124)		117,417

(*) The Company disaggregates and records the unrealized gains and losses of securities at fair value through other comprehensive income in accumulated other comprehensive income and policyholders’ equity adjustments in accordance with the Regulations on Supervision of Insurance Business.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won, except per share data)

34. 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

		2024		2023 (*1)
		Expected date of appropriation:		Confirmed date of appropriation:
		2025-03-24		2024-03-22
I. RETAINED EARNINGS BEFORE APPROPRIATIONS:	W
1. Unappropriated retained earnings carried over from prior year		2,573,935		3,578,959
2. Net income (loss)		533,681		481,851
3. Hybrid bond interests		-10,800		-10,801
4. Impact of accounting policy changes (*)		-		2,451,941
5. Interim dividends		-150,004		-
6. Reclassification of other comprehensive income to retained earnings		41		-
		2,946,853		6,501,950
II.TRANSFERS FROM VOLUNTARY RESERVES:
1. Reversal of regulatory reserve for loan losses		1,008		57,349
		1,008		57,349
III. APPROPRIATIONS:
1. Legal Reserve		52,831		16,534
2. Guarantee Reserve		19,753		354,282
3. Surrender reserve		188,906		3,449,210
4. Dividends		378,307		165,338
		639,797		3,985,364
IV. UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR	W	2,308,064		2,573,935

(*) The amount represents the impact of changes in accounting policies following the application of K-IFRS 1109 and K-IFRS 1117.

(f) Dividends

Dividends on common stocks for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Number of issued shares outstanding (*)		115,654,859		115,654,859
Par value per share in won	W	5,000		5,000
Dividend per share in won		3,271		1,430
Total dividend		378,307		165,338
Dividend yield (%)		65.42%		28.59%

(*) Excluded interim dividends paid during the year ended December 31, 2024. With the interim dividends, dividend per share is W 4,568 and dividend yield is 91.36%.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won, except per share data)

34. 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, 2024 and 2023 are as follows:

		2024		2023
Beginning balance	W	6,997		64,346
Expected reversal of regulatory reserve for loan losses (*)		(1,008)		(57,349)
Ending balance	W	5,989		6,997

(*) Adjustments due to the application of Korean IFRS 1117 was reflected in the expected reversal of regulatory reserves as of December 31, 2023.

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, 2024 and 2023 are as follows:

		2024		2023
Profit for the year	W	533,681		481,851
Reversal of regulatory reserve for loan losses (*1)		1,008		57,349
Adjusted income after the regulatory reserve for loan losses (*2)	W	534,689		539,200
Adjusted income per share after the reserve for<br><br>loan losses in won (*3)	W	4,530		4,569

(*1) Reversal of regulatory reserve for loan losses for the year ended December 31, 2023 includes adjustments due to the application of Korean IFRS 1117.

(*2) The adjusted profit after reflecting the provision for credit losses is not a figure determined by the accounting standards. It is derived assuming the inclusion of the reversal(transfer) of the provision for credit losses, considering the effects of policyholder share allocations and deferred tax impacts, into the net profit for the year.

(*3) Dividends on hybrid bonds are excluded.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

34. 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, 2024 and 2023 are as follows:

		2024		2023
Reserve for surrender value	W	3,449,210		-
Expected reserve for surrender value		188,906		3,449,210
	W	3,638,116		3,449,210

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, 2024 and 2023 are as follows:

		2024		2023
Guarantee reserve	W	354,282		-
Expected guarantee reserve		19,753		354,282
	W	374,035		354,282

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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

35. Share-based payment

As of December 31, 2024, share-based payment agreement of Shinhan Financial Group provided to the Company’s executives and employees are as follows:

(a) Performance-linked stock option

(*)		2021			2022		2023			2024
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		64,322 shares		67,853 shares		64,894 shares			60,476 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, 2024 and 2023 are as follows:

		2024		2023
Performance-linked stock option	W	4,063		3,707

(c) Accrued expenses and intrinsic value

Accrued expenses and intrinsic value as of December 31, 2024 and 2023 are as follows:

		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 W 14 million.

		2023
		Accrued expenses		Intrinsic value (*1)
Performance-linked stock options (*2)	W	10,102		10,102

(*1) The intrinsic value for stock options vested at 2020 was calculated based on the stock price (W38,156) as of January 1, 2024, and the amount granted after that was calculated based on the closing price of the reporting date (W40,150).

(*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 W 14 million.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

36. Insurance revenue and insurance service expenses

Insurance revenue and insurance service expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024
		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)
Contracts not measured under the premium allocation approach		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)
Contracts not measured under the premium allocation approach		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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

36. Insurance revenue and insurance service expenses (continued)

Insurance revenue and insurance service expenses for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Contracts under:				Other insurance contracts		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	205,311		1,277,408		90,712		1,573,431
Change in risk adjustment		28,644		62,489		24,791		115,924
Contractual service margin recognized for<br><br>services provided		206,316		331,639		158,870		696,825
Recovery of insurance acquisition cash flows		127,210		1,093		128,075		256,378
Others (*)		(12,794)		(123)		(908)		(13,825)
		554,687		1,672,506		401,540		2,628,733
Contracts measured under the premium allocation approach		-		-		406		406
Total insurance revenue	W	554,687		1,672,506		401,946		2,629,139
Insurance service expenses
Contracts not measured under the premium allocation approach:
Incurred claims and other insurance service expenses	W	211,593		1,226,729		103,775		1,542,097
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(5,174)		14,944		1,759		11,529
Losses on onerous contracts and<br><br>reversal of such losses		3,141		7,017		31,235		41,393
Amortization of insurance acquisition cash flows		127,210		1,093		128,075		256,378
Experience adjustments to insurance acquisition<br><br>cash flows that are not related to future service		376		2,855		(28,999)		(25,768)
Others (*)		(12,794)		(123)		(3,489)		(16,406)
		324,352		1,252,515		232,356		1,809,223
Contracts measured under the premium allocation approach		-		-		892		892
Total insurance service expenses	W	324,352		1,252,515		233,248		1,810,115

(*) Others include allocation of loss components, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

37. Income or expenses from reinsurance contracts held

Income or expenses from reinsurance contracts held for the years ended December 31, 2024 and 2023 are as follows:

		2024
		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 expense	W	28,837		29,006		57,843

(*) Others include allocation of loss recovery components, etc.

		2023
		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	67,051		5,574		72,625
Changes in fulfilment cash flows relating to<br><br>the liability for incurred claims		(29,952)		(2,198)		(32,150)
Recognition (reversals) of a loss-recovery component		(718)		2,101		1,383
Others (*)		(1,303)		(195)		(1,498)
Total reinsurance revenue	W	35,078		5,282		40,360
Contracts not measured under the premium allocation approach:
Expected claims and other reinsurance service expenses	W	41,537		7,296		48,833
Changes in risk adjustment		3,227		622		3,849
Contractual service margin recognized for services received		8,120		7,244		15,364
Experience adjustments for reinsurance premiums and<br><br>investment components not related to future service		1,056		4,002		5,058
Others (*)		(1,303)		(170)		(1,473)
Total reinsurance service expense	W	52,637		18,994		71,631

(*) Others include allocation of loss recovery components, etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		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 financial 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

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows: (continued)

		2023
		General life		Variable		Retirement<br><br>(*3)		Total
Investment income (expenses):
Interest income (expenses)	W	1,344,698		99,178		(52,699)		1,391,177
Gain (loss) on valuation and transaction of financial instruments		262,543		595,884		(35,572)		822,855
Other investment income (expenses)		(70,453)		(1,224)		(2,608)		(74,285)
Investment income (expenses) recognized in other comprehensive income (*1)		2,861,213		-		132,835		2,994,048
		4,398,001		693,838		41,956		5,133,795
Finance income (expenses) from insurance contracts issued:
Interest income (expenses)		(1,477,844)		(652,833)		-		(2,130,677)
Effect of changes in interest rates and other financial assumptions		(2,958,444)		11,845		-		(2,946,599)
Foreign exchange income (expenses)		(6,402)		-		-		(6,402)
		(4,442,690)		(640,988)		-		(5,083,678)
Finance income (expenses) from insurance contracts recognized in profit or loss		(1,483,357)		(652,833)		-		(2,136,190)
Finance income (expenses) from insurance contracts recognized in other comprehensive income (*1)		(2,959,333)		11,845		-		(2,947,488)
Finance income (expenses) from reinsurance contracts held:
Interest income (expenses)		(864)		-		-		(864)
Effect of changes in interest rates and other financial assumptions		(28,275)		-		-		(28,275)
		(29,139)		-		-		(29,139)
Finance income (expenses) from reinsurance contracts recognized in profit or loss		(864)		-		-		(864)
Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (*1)		(28,275)		-		-		(28,275)
Total finance income (expenses) recognized in profit or loss (*2)		52,567		41,005		(90,879)		2,693
Total finance income (expenses) recognized in other comprehensive income (*2)		(126,395)		11,845		132,835		18,285
Total	W	(73,828)		52,850		41,956		20,978

(*1) The financial 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

38. Insurance finance income (expenses) (continued)

(b) Financial gains and losses recognized in profit or loss for the years ended December 31, 2024 and 2023 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.

		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
		2023
---	---	---	---	---	---	---	---
		FV change related		Others		Total
Investment income (expenses)	W	525,608		1,614,139		2,139,747
Finance income (expenses) from insurance contracts issued		(525,608)		(1,610,582)		(2,136,190)
Finance income (expenses) from reinsurance contracts held		-		(864)		(864)
	W	-		2,693		2,693

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

39. Operating expenses

Operating expenses by nature for the years ended December 31, 2024 and 2023 are as follows:

		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.

		2023
		Claim adjustment expenses		Acquisition costs (*)		Maintenance<br><br>expenses		Investment management expenses		Other operating expenses		Total
Salaries	W	5,292		54,409		48,030		5,764		13,610		127,105
Bonus		1,379		14,737		14,479		1,596		3,551		35,742
Retirement benefits		402		3,715		3,286		428		36,682		44,513
Employee benefits		1,735		17,475		15,170		2,135		14,503		51,018
Amortization		351		24,993		21,143		481		1,676		48,644
Utilities		220		14,399		8,237		284		557		23,697
Commission		110		21,367		24,606		31,148		7,089		84,320
Taxes and dues		-		-		69,680		306		105		70,091
IT expenses		577		13		16,912		1,304		3,329		22,135
Proportional commission		-		677,930		-		-		13,649		691,579
Sales promotion expenses		-		100,567		-		-		3,685		104,252
Training expenses		-		78		-		-		5,791		5,869
Others		10,480		47,781		27,926		202		19,902		106,291
	W	20,546		977,464		249,469		43,648		124,129		1,415,256

(*) Acquisition costs are reflected as insurance acquisition cash flows.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

40. Investment administrative expenses

The investment administrative expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Salaries	W	3,261		3,448
Bonus		1,104		934
Retirement benefits		1,389		1,350
Employment benefits		1,367		1,557
Communication expenses		83		101
Fees		6,812		6,398
Taxes and dues		364		359
Others		1,911		2,778
	W	16,291		16,925

41. Net interest income and expenses

(a) Details of interest income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Interest income on:
Deposits at amortized cost	W	53,780		60,841
Deposits at fair value through profit or loss		133		-
Securities at fair value through profit or loss		87,221		110,545
Securities at fair value through other comprehensive income		1,093,402		1,067,982
Securities at amortized cost		128,985		133,050
Loans at amortized cost		145,329		163,566
Others		3,409		2,448
	W	1,512,259		1,538,432

(b) Details of interest expense for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Interest expenses on:
Borrowings	W	-		295
Bonds issued		15,761		33,928
Lease liabilities		2,354		2,722
Others		60,027		110,310
	W	78,142		147,255

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

42. Provision for (Reversal of) credit loss allowance

Details of provision for (reversal of) credit loss allowance for the years ended December 31, 2024 and 2023 are as follows:

				2024		2023
Provisions (Reversal)		Securities at fair value through other comprehensive income	W	(1,225)		(4,814)
		Securities at amortized costs		(23)		(107)
		Loans at amortized costs		7,410		15,205
		Receivables at amortized costs(*)		2,135		4,711
		Allowance for unused credit commitments		(1,601)		1,846
			W	6,696		16,841

(*) It includes provision for (reversal of) credit loss allowance of due from banks at amortized cost.

43. Gain and losses on foreign exchange transactions

Details of foreign exchange transaction income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Gain on foreign exchange transactions:
Foreign transactions	W	65,226		31,251
Translations		579,956		141,485
		645,182		172,736
Loss on foreign exchange transactions:
Foreign transactions		11,993		32,539
Translations		170		8,898
		12,163		41,437
	W	633,019		131,299

44. Fees and commission income

Details of fees and commission income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Credit related fees	W	2,979		1,127
Loan commissions		7,198		7,174
Retirement pension management fee		2,238		4,004
Other fees and commissions in won		148		184
	W	12,563		12,489

45. Dividend income

Dividend income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Financial assets at fair value through profit or loss	W	28,111		23,619
Securities at fair value through other comprehensive income		4,399		6,864
	W	32,510		30,483

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

46. Other investment income or expenses

(a) Details of other investment income for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Rental income	W	1,738		1,560
Others		6,939		9,364
	W	8,677		10,924

(b) Details of other investment expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Amortization expense on intangible assets	W	73,124		69,369
Depreciation expense on investment properties		212		212
Others		7,769		11,192
	W	81,105		80,773

47. Non-operating income or expenses

		2024		2023
Non-operating income:
Gain on cancellation of right-of-use asset	W	454		782
Gain on disposal of property and equipment		24		41
Miscellaneous gains		8,636		1,213
	W	9,114		2,036
Non-operating expenses:
Impairment of investment assets in subsidiaries and associate		-		9,931
Loss on cancellation of right-of-use asset		102		403
Loss on disposal of property and equipment		93		1,550
Impairment of property and equipment		1,703		1,409
Impairment of intangible assets		167		1,115
Donations		7,977		5,553
Miscellaneous loss		2,033		6,018
		12,075		25,979
	W	(2,961)		(23,943)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

48. Income tax expense

(a) Income tax expense for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Current tax expense	W	16,092		27,072
Adjustment for prior periods		(15,943)		(8,111)
Temporary differences		(367,626)		143,060
Deferred tax recognized in other comprehensive income		569,389		-
Income tax recognized in other comprehensive income		15		(1,498)
Income tax expenses	W	201,927		160,523
Effective tax rate		27.45%		24.99%

(b) Reconciliation of net income before tax to income tax expenses for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Net profit before income taxes	W	735,608		642,374
Income taxes at statutory tax rates
Adjustments:		7,725		(9,064)
Non-taxable income		(6,038)		(6,199)
Non-deductible expense		4,947		2,243
Tax rate difference		(3,036)		(4,086)
Effect of consolidated tax payment		(1,463)		2,164
Effect of changes in tax rates		-		(4,650)
Others		13,315		1,464
		194,202		169,587
Income tax expense	W	201,927		160,523
Effective tax rate		27.45%		24.99%

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

48. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows:

		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		(8,313)		(22,317)		-		-		(30,630)
Securities at fair value through other comprehensive income		167,212		(136,671)		(262,150)		-		(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		(11)		635		-		3,291
Defined benefit obligations		(9,043)		3,607		3,883		-		(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
Policyholders’ reserve adjustments		(271)		175		-		-		(96)
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)
	W	(1,631,841)		(201,763)		569,390		-		(1,264,214)

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

48. Income tax expense (continued)

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Beginning<br><br>Balance		Profit or loss		Other comprehensive income		Equity adjustment		Ending<br><br>Balance
Deposits in foreign currency	W	(197)		(6)		-		-		(203)
Financial assets at fair value through profit or loss		19,674		(27,987)		-		-		(8,313)
Securities at fair value through other comprehensive income		690,068		235,699		(758,555)		-		167,212
Securities at amortized costs		(647,732)		639,280		-		-		(8,452)
Investments in associates		182		2,621		-		-		2,803
Derivative instruments		63,810		9,745		(38,312)		-		35,243
Accrued income		(123,744)		(16,005)		-		-		(139,749)
Evaluation cost of initial investment fund		(92)		92		-		-		-
Deemed dividend		5,404		3,131		-		-		8,535
Dividend receivables		120		-		-		-		120
Other liabilities		(122)		848		-		-		726
Provisions		1,630		(1,340)		-		-		290
Dividend cost recovery		23,426		(605)		-		-		22,821
Taxation of partnership		5,280		(4,167)		-		-		1,113
Guaranteed reserve		79,523		(79,523)		-		-		-
Reserves for dividends to policyholders		1,550		(1,550)		-		-		-
Reserve for loss from participating insurance		306		(306)		-		-		-
Reserve for outstanding claims for matured contracts		12,158		(713)		-		-		11,445
Deferred acquisition costs		(665)		665		-		-		-
Property and equipment, intangible assets		10,537		(1,520)		-		-		9,017
Other accrued expense		25,521		1,105		-		-		26,626
Loan origination cost (fees)		(730)		781		-		-		51
Share-based payment		2,213		450		-		4		2,667
Defined benefit obligations		(9,643)		(2,675)		3,275		-		(9,043)
Vehicles for business use (depreciation adjustment)		26		4		-		-		30
Subordinated foreign currency bonds		13,495		(13,495)		-		-		-
Interest payable		(24)		24		-		-		-
Accrued interests (deposit)		5		(5)		-		-		-
Right-of-use assets		(1,086)		723		-		-		(363)
Uncollected commission clawbacks		12		-		-		-		12
Government subsidies		9		(8)		-		-		1
Loans		1,726		(7)		-		-		1,719
Deficit carried forward		10,523		(40)		-		-		10,483
Hybrid bonds		200		(1)		-		-		199
Legal provision		-		214		-		-		214
Policyholders’ reserve adjustments		-		(271)		-		-		(271)
Effect of change in discount rate under K-IFRS 1117		-		(1,719,508)		792,089		-		(927,419)
Surrender Value Reserve		-		(839,355)		-		-		(839,355)
Effect of K-IFRS 1117 transition		(1,672,143)		1,672,143		-		-		-
	W	(1,488,780)		(141,562)		(1,503)		4		(1,631,841)

(*1) The local income tax rate has changed due to the revision of the Local Tax Act at the end of 2023, hence tax rate of 26.4% is applied for deferred tax assets (liabilities) expected to be realized after 2024.

(*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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

48. Income tax expense (continued)

(d) As of December 31, 2024 and 2023, deferred tax related to items recognized other than in profit or loss for the years are as follows:

		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	(3,393,017)		895,756		992,993		(262,150)		(2,400,024)		633,606
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)		62,906		(17,687)		122,934		(32,253)
Hybrid bonds		(755)		208		-		-		(755)		208
	W	159,024		(40,692)		(2,160,870)		569,389		(2,001,846)		528,697
		January 1, 2023				Changes				December 31, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		Amount		Tax effect		Amount		Tax effect		Amount		Tax effect
Valuation gains (losses) on securities at fair value through other comprehensive income	W	(6,242,686)		1,654,312		2,849,669		(758,556)		(3,393,017)		895,756
Insurance and reinsurance finance income (expenses)		6,488,455		(1,719,440)		(2,975,765)		792,090		3,512,690		(927,350)
Remeasurement of defined benefit liabilities		(9,466)		2,509		(12,441)		3,275		(21,907)		5,784
Stock options		1,992		(528)		(7)		4		1,985		(524)
Gains (losses) on valuation of derivatives for cash flow hedge		(83,761)		23,746		143,789		(38,312)		60,028		(14,566)
Hybrid bonds		(755)		208		-		-		(755)		208
	W	153,779		(39,193)		5,245		(1,499)		159,024		(40,692)

(e) Current tax assets and liabilities

Current tax assets and liabilities as of December 31, 2024 and 2023 are as follows:

		2024		2023
Current tax assets
Income tax receivables (refund of consolidated tax payment)	W	82,404		70,658
Current tax liabilities
Income tax payables (unpaid consolidated tax payment)	W	(79)		(55)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of 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, 2024 and 2023 are as follows:

		2024		2023
Deferred tax assets	W	198,923		301,327
Deferred tax liabilities		(1,463,137)		(1,933,168)
Current tax assets		82,404		70,658
Current tax liabilities		(79)		(55)

(g) In accordance with the Global Anti-Base Erosion (GloBE) rules that were applied since 2024, top-up tax shall be paid for the difference between an effective rate for each jurisdiction to which each constituent entity of the Company belongs and the minimum rate of 15%. However, since most jurisdictions pass the requirements for exemption from application of transition period or the effective tax rate is more than 15%, the Company believes that there will be no significant top-up tax to be paid.

Therefore, the Company does not recognize the current tax expense in relation to the GloBE tax. The Company, in addition, applies exceptions to the recognition and disclosure of deferred tax assets and liabilities related to the GloBE tax, and thus does not recognize nor disclose the deferred tax assets and liabilities related to the GloBE tax.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

49. Contingencies and commitments

(a) Insurance agreement

As of December 31, 2024, the total number and amount of insurance contracts held by the Company are 6,662,924 contracts and W 181,660,251 million, respectively (6,616,712 contracts and W 186,622,846 million, respectively for the year ended December 31, 2023).

(b) Reinsurance agreements

As of December 31, 2024, the Company held reinsurance contracts with nine domestic and global reinsurance companies, including Korean Reinsurance Co., Ltd. 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. and Swiss Reinsurance Co. (“Swiss Re”), which proportionally reinsure insurance risks and interest rate risks.

(c) Pending litigations

As of December 31, 2024, the Company has 100 pending litigations (Total claim amounts of W 7,251 million). Among these, provisions related to the litigation were accounted for W 352 million, and liabilities for incurred claims related to insurance claims were accounted for W 5,450 million. As of December 31, 2024, the result of litigation is unpredictable.

(d) Bank overdraft agreement

As of December 31, 2024, 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, 2023).

(e) Unused credit provided and capital commitments

As of December 31, 2024, the Company's unused credit provided and capital commitments amounted to W 164,307 and W 1,354,692 million, respectively (W 424,203 and W 1,360,730 million, respectively as of December 31, 2023).

(f) Other commitments

As of December 31, 2024 and 2023, the details of payment guarantee are as follows:

Guarantee provider		2024		2023		Type of guarantee
Seoul Guarantee Insurance Co., Ltd.	W	1,452		2,348		Guarantee deposit etc.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

50. Related parties

(a) Related parties as of December 31, 2024 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)
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 AI 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.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

50. Related parties (continued)

(a) Related parties as of December 31, 2024 are as follows: (continued)

Entities under common control		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

As of and for the years ended December 31, 2024 and 2023

50. Related parties (continued)

(a) Related parties as of December 31, 2024 are as follows: (continued)

Entities under common control		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) (*1)
Associates		iPIXEL Co., Ltd.
		Findvalue JD Fund No.1
Associates of entities under common control		SBC PFV Co., Ltd (formerly Seocho Information Command Complex Development Project PFV1, 2)
		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.3
		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
		Shinhan AIM Private Fund of Fund 9-B
		Songpa Biz-Cluster PFV Co.,Ltd. (*1)
Others		Shinhan Life Shining Foundation

(*1) It was newly included as a related party, as of December 31, 2024.

(*2) Midas Asset Global CRE Debt Private Fund No.6, Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24, IMM Long-term Solution Private Equity Fund, and Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2 were excluded from the related parties during the year ended December 31, 2024.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2024 and 2023 are as follows:

Related party				Account		2024		2023
The parent company
Shinhan Financial Group			Securities at fair value through other comprehensive income		W	29,898		29,130
			Accrued income			167		167
			Credit loss allowance			(13)		(14)
			Current tax assets			82,404		70,659
			Current tax liabilities			77		55
			Accrued expenses			12,466		10,102
Subsidiaries
Shinhan Financial Plus Co., Ltd.			Right-of-use assets			-		98
			Rental deposits provided			-		37
			Rental deposits received			-		159
			Lease liabilities			-		96
			Accrued expenses			3,614		1,949
Shinhan Life Insurance Vietnam Co., Ltd.			Accrued income			290		235
Shinhan LifeCare Co., Ltd.			Rental deposits received			96		-
Entities under common control
Shinhan Bank Co., Ltd.			Cash and due from banks at amortized cost			68,608		106,532
			Financial assets at fair value through profit or loss (*1)			37,234		33,385
			Rental deposits provided			4,536		5,505
			Right-of-use assets			3,160		3,872
			Derivative assets			1,425		21,030
			Accrued income			-		144
			Derivative liabilities			108,165		22,287
			Lease liabilities			3,452		4,169
			Accrued expenses			93		42
			Investment contract liabilities (*2)			144,698		209,253
Shinhan Securities Co., Ltd.			Cash and due from banks at amortized cost			24,231		38,612
			Accrued income			2		67
			Derivative assets			25,593		11,746
			Account receivables			1,391		8,057
			Derivative liabilities			11,263		17,277
			Account payables			2,238		3,095
Shinhan Card Co., Ltd.			Securities at fair value through other comprehensive income			-		29,766
			Account receivables			33		36
			Accrued income			3		133
			Credit loss allowance			(19)		(19)
			Accrued expenses			2,804		2,840
			Investment contract liabilities (*2)			8,409		36,056
Jeju Bank			Cash and due from banks at amortized cost			86		53
			Investment contract liabilities (*2)			14,339		13,832
			Accrued expenses			-		3
Shinhan DS			Accrued expenses			734		986
Shinhan Asset Management Co., Ltd.			Financial assets at fair value through profit or loss (*1)			8,754		8,435
			Accrued expenses			503		1,011
Shinhan Fund Partners			Accrued expenses			197		171
Total assets					W	287,783		367,666
Total liabilities					W	313,148		323,383

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(b) Significant balances with the related parties as of December 31, 2024 and 2023 are as follows: (continued)

(*1) It is a financial instrument related to consolidated structured entities of related parties.

(*2) It is policyholders’ reserve for retirement pension contracts.

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows:

Related party		Account			2024			2023
The parent company
Shinhan Financial Group		Interest income	W	870			868
		Provision for (reversal of) credit loss allowance		(2)			(6)
		Commissions paid, etc.		4,879			4,737
Subsidiaries
Shinhan Financial Plus Co., Ltd.		Interest income		1			2
		Other income		702			626
		Insurance contract commissions		44,687			20,159
		Interest expenses		2			7
		Other expense		21			67
		Commissions paid, etc.		10,004			11,087
Shinhan Life Insurance Vietnam Co., Ltd.		Fee and commission income		405			269
Shinhan LifeCare Co., Ltd.		Other income		168			-
Miraeasset Maps Global Infra Private Special Asset Trust 2		Distribution income		-			1,516
Shinhan AIM Private fund of funds Trust 5		Distribution income		2,778			2,547
Shinhan AIM Private fund of funds Trust 6-B		Distribution income		868			1,392
Shinhan AIM Credit Fund 3		Distribution income		6,928			6,076
KB Global Private Real Estate Debt Fund 23		Distribution income		5,889			4,995
KB Global Private Real Estate Debt Fund 21		Distribution income		2,460			1,370
Shinhan KKR Global Program PDF Private Investment Trust		Distribution income		2,837			-
Shinhan KKR Global Program REC Private Investment Trust		Distribution income		3,937			-
Shinhan KKR Global Program PEF Private Investment Trust		Distribution income		419			-
Shinhan LCP X Private Investment Trust No.4(H)		Distribution income		830			-
Entities under common control
Shinhan Bank Co., Ltd.		Interest income		1,871			1,898
		Distribution income (*1)		159			113
		Fee and commission income		6			576
		Gains related to derivatives		779			12,714
		Other income		88			-
		Insurance contract commissions		8,004			1,648
		Interest expenses		90			26
		Losses related to derivatives		135,123			37,044
		Commissions paid, etc.		4,847			5,349
Shinhan Securities Co., Ltd.		Interest income		224			325
		Fee and commission income		9			275
		Gains related to derivatives		167			1,344
		Losses related to derivatives		3,155			981
		Commissions paid, etc.		1,448			1,916

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

Related party		Account		2024		2023
Entities under common control
Shinhan Card Co., Ltd.		Interest income	W	379		759
		Fee and commission income		76		172
		Other income		13		-
		Insurance contract commissions		11,132		11,202
		Provision for (reversal of) credit loss allowance		-		15
		Commissions paid, etc.		4,710		6,989
Jeju Bank		Insurance contract commissions		9		239
		Commissions paid, etc.		13		13
Shinhan DS		Commissions paid, etc.		27,671		18,306
Shinhan Asset Management Co., Ltd.		Distribution income (*1)		1,986		83
		Interest income		-		1
		Investment management expenses		9,028		5,291
Shinhan Savings Bank		Fee and commission income		20		15
Shinhan Fund Partners		Commissions paid, etc.		867		764
Shinhan Venture Investment Co., Ltd.		Commissions paid, etc.		102		-
Shinhan AI Co., Ltd.		Commissions paid, etc.		-		37
Shinhan AIM Private Real Estate Investment Trust No.22-A		Distribution income		3,641		2,501
Shinhan AIM Investment Finance Specialized Investment Trust No. 1		Distribution income		354		279
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1		Distribution income		968		902
Shinhan AIM FoF Fund 4		Distribution income		-		205
Shinhan AIM FoF Fund 6-A		Distribution income		671		805
Shinhan AIM Credit 4-B_Clover2		Distribution income		4,979		4,794
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income		760		788
SHBNPP Green Energy Private Special Asset Investment Trust		Distribution income		1,031		1,034
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		636		696
SHBNPP Global Professional Investment Type Private Investment Trust No.12		Distribution income		400		725
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		Distribution income		2,943		1,454
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		Distribution income		1,875		2,000
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		Distribution income		2,376		2,351
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		Distribution income		1,098		1,064
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		Distribution income		3,758		3,574
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		Distribution income		1,205		1,716

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

Related party		Account		2024		2023
Entities under common control
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		Distribution income	W	189		192
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		Distribution income		1,446		1,447
SH Green New Deal Energy Special Asset Private Investment Trust No.3		Distribution income		1,896		1,018
Shinhan Global Green Energy Partnership Private Investment Trust No.1		Distribution income		-		178
SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H)		Distribution income		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		1,115
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		Distribution income		236		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		Distribution income		122		-
Shinhan One Flagship Real Estate Development Fund 1		Distribution income		304		-
Shinhan CIS III Private Investment Trust No.1		Distribution income		1,530		-
Associates of entities under common control
KIAMCO POWERLOAN TRUST 4TH		Distribution income		1,554		1,537
LB Scotland Amazon Fulfillment Center Fund 29		Distribution income		-		1,175
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (*2)		Distribution income		445		792
Midas Asset Global CRE Debt Private Fund No.6 (*2)		Distribution income		1,967		2,955
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		Distribution income		1,937		2,203
Shinhan AIM Private Real Estate Investment Trust No.1		Distribution income		-		1,086
Shinhan AIM Private Fund of Fund 9-B		Distribution income		61		312
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		Distribution income		903		960
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		Distribution income		67		202
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		Distribution income		85		271

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(c) Significant transactions with the related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

Related party		Account		2024		2023
Associates of entities under common control
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		Distribution income	W	72		134
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		Distribution income		168		84
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		Distribution income		212		314
PCC Amberstone Private Equity Fund I		Distribution income		692		877
SHINHAN-NEO Core Industrial Technology Fund		Distribution income		53		-
SBC PFV Co., Ltd		Provision for (reversal of) credit loss allowance		(59)		-
		Interest income		3,281		-
Others
Shinhan Life Shining Foundation		Rental income		56		55
		Donations		2,546		2,555
Total income			W	101,546		79,731
Total expense			W	268,277		128,426

(*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.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:

		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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		-		-		1,280		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 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		-		-
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		-		-		-		-		-		38		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 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.

		2023
		Borrowing of funds				Investment in cash				Dividend paid
		Borrowing		Redemption		Investment		Collection
The parent company
Shinhan Financial Group	W	-		-		-		-		162,257
Subsidiaries
Shinhan Financial Plus Co., Ltd.		-		-		14,000		-		-
Shinhan LifeCare Co., Ltd.		-		-		40,000		-		-
Shinhan AIM Private fund of funds Trust 7-A		-		-		5,896		-		-
Shinhan AIM Private fund of funds Trust 6-B		-		-		13,376		593		-
Shinhan AIM Private fund of funds Trust 5		-		-		-		2,844		-
KB Global Private Real Estate Debt Fund 23		-		-		11,224		-		-
KB Global Private Real Estate Debt Fund 21		-		-		10,163		-		-
Shinhan KKR Global Program REC Private Investment Trust		-		-		85,978		-		-
Shinhan KKR Global Program PEF Private Investment Trust		-		-		36,605		-		-
Shinhan KKR Global Program PDF Private Investment Trust		-		-		96,050		-		-
Shinhan LCP X Private Investment Trust No.4(H)		-		-		16,342		-		-
		-		-		329,634		3,437		-
Entities under common control
Shinhan Bank Co., Ltd. (*1)(*2)		-		780		30,891		-		-
Shinhan Asset Management Co., Ltd. (*2)		-		-		83		-		-
SHBNPP Green Energy Private Special Asset Investment Trust		-		-		-		1,630		-
SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust		-		-		-		1,656		-
SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust		-		-		-		7,188		-
SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		1,638		-
SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		324		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4		-		-		1,332		13,367		-
SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5		-		-		-		799		-
SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust		-		-		2,018		-		-
Shinhan AIM Social Enterprise Investment Fund I		-		-		12		-		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Borrowing of funds				Investment in cash				Dividend paid
		Borrowing		Redemption		Investment		Collection
Entities under common control
Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1	W	-		-		1,908		-		-
One Shinhan Futures Fund 1		-		-		-		184		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2		-		-		1,000		914		-
SHBNPP Global Professional Investment Type Private Investment Trust No.12		-		-		1,284		-		-
Shinhan AIM Private Real Estate Investment Trust No.15		-		-		2,031		349		-
Shinhan AIM FoF Fund 4		-		-		7,810		-		-
Shinhan AIM Social Enterprise Investment Fund II		-		-		29		-		-
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		-		-		2,979		651		-
Shinhan AIM Private Real Estate Investment Trust No.13		-		-		-		36,541		-
Shinhan AIM FoF Fund 6-A		-		-		7,574		938		-
SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust		-		-		2,026		516		-
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		-		1,000		-		-
One Shinhan Futures Fund 2		-		-		-		100		-
SH BNPP Startup Venture Alpha Specialized Investment Private Equity Mixed Asset Trust No.1		-		-		150		-		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1		-		-		-		1,224		-
Shinhan AIM Social Enterprise Investment Fund III		-		-		750		-		-
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		-		4,000		-		-
SH Green New Deal Energy Special Asset Private Investment Trust No.3		-		-		14,339		9		-
Shinhan AIM Private Real Estate Investment Trust No.22-A		-		-		5,585		109		-
One Shinhan Connect New Technology Investment Fund 1		-		-		-		104		-
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		-		980		-		-
SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd		-		-		600		-		-
One Shinhan Futures Fund 3		-		-		-		102		-
SH Startup Venture Private Equity Trust No.5		-		-		6,000		-		-
Shinhan Greenway Corporate Investment FUND NO.1		-		-		5,000		-		-
One Shinhan Connect New Technology Investment Fund 2		-		-		-		2,452		-
Shinhan global flagship venture fund 1		-		-		5,200		-		-
SH BGT Private Special Asset Investment Trust No.2		-		-		8,140		-		-
Shinhan AIM Credit 4-B_Clover2		-		-		5,047		-		-
SH Venture Private Investment Trust No.6		-		-		4,000		-		-
Shinhan One Flagship Real Estate Development Fund 1		-		-		6,255		-		-
Shinhan hyper connect venture fund Ι		-		-		6,080		-		-
Shinhan hyper future’s venture fund 1		-		-		106		-		-
SH Special Situation Private Real Estate Feeder Investment Trust No.1		-		-		2,140		-		-
Shinhan CIS III Private Investment Trust No.1		-		-		17,807		-		-
		-		780		154,156		70,795		-

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(d) Significant fund transactions with related parties for the years ended December 31, 2024 and 2023 are as follows: (continued)

		2023
		Borrowing of funds				Investment in cash				Dividend paid
		Borrowing		Redemption		Investment		Collection
Associates of entities under common control
SBC PFV Co., Ltd	W	-		-		675		-		-
Midas Asset Global CRE Debt Private Fund No.6		-		-		-		1,471		-
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		-		-		1,747		-		-
SHINHAN-NEO Market-Frontier 2nd Fund		-		-		450		-		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3		-		-		-		5,209		-
SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2		-		-		-		601		-
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24		-		-		-		2,958		-
SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		-		-		1		-		-
Shinhan AIM Private Real Estate Investment Trust No.1		-		-		7,672		-		-
SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative]		-		-		-		1,319		-
PCC Amberstone Private Equity Fund I		-		-		-		512		-
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		-		-		-		1,588		-
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		-		-		321		-		-
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		-		-		4,984		-		-
IGIS Private Real Estate Investment Trust 517-1		-		-		22,600		-		-
Shinhan AIM Private Fund of Fund 9-B		-		-		4,981		155		-
		-		-		43,431		13,813		-
	W	-		780		527,221		88,045		162,257

(*1) Interest expense of W 26 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2023.

(*2) Fund transactions related to consolidated structured entities of related parties are included.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(e) Unused capital commitments with related parties as of December 31, 2024 and 2023 are as follows:

Related Party			2024		2023
Subsidiaries
Miraeasset Maps Global Infra Private Special Asset Trust 2	W	-		19,439
Shinhan AIM Private fund of funds Trust 7-A		9,297		12,975
Shinhan AIM Private fund of funds Trust 6-B		14,003		24,121
Shinhan AIM Private fund of funds Trust 5		29,333		27,373
KB Global Private Real Estate Debt Fund 23		-		2,164
KB Global Private Real Estate Debt Fund 21		27,089		31,579
Shinhan KKR Global Program REC Private Investment Trust		41,160		44,665
Shinhan KKR Global Program PEF Private Investment Trust		51,156		72,722
Shinhan KKR Global Program PDF Private Investment Trust		159,348		185,674
Shinhan LCP X Private Investment Trust No.4(H)		32,367		36,103
		363,753		456,815
Entities under common control
Shinhan Bank Co., Ltd. (*)		6,458		6,339
Shinhan AIM Private Real Estate Investment Trust No.15		-		380
Shinhan AIM FoF Fund 4		268		3,096
SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4		7,271		6,785
Shinhan AIM FoF Fund 6-A		30,802		32,076
SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3		-		1,000
Shinhan AIM Social Enterprise Investment Fund III		234		294
SH Startup Venture Specialized Investment Private Equity Trust No.4		-		4,000
SH Green New Deal Energy Special Asset Private Investment Trust No.3		7,528		10,769
Shinhan AIM Private Real Estate Investment Trust No.22-A		7,271		27,066
Shinhan Global Green Energy Partnership Private Investment Trust No.1		-		8,768
SH Startup Venture Private Equity Trust No.5		4,000		8,000
Shinhan Greenway Corporate Investment FUND NO.1		880		2,080
Shinhan global flagship venture fund 1		10,400		15,600
SH BGT Private Special Asset Investment Trust No.2		12,871		13,628
SH Venture Private Investment Trust No.6		12,000		16,000
Shinhan One Flagship Real Estate Development Fund 1		5,745		13,745
Shinhan hyper connect venture fund Ι		22,720		29,920
Shinhan hyper future’s venture fund 1		211		775
SH Special Situation Private Real Estate Feeder Investment Trust No.1		3,796		7,860
Shinhan CIS III Private Investment Trust No.1		18,840		22,796
IMM Long-term Solution Private Equity Fund		-		1,019
		151,295		231,996
Associates of entities under common control
SHINHAN-NEO Market-Frontier 2nd Fund		-		450
SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		3,880		3,880
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		182		182
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.		-		3,516
IGIS Private Real Estate Investment Trust 517-1		2,200		4,400
Shinhan AIM Private Fund of Fund 9-B		6,067		11,091
		12,329		23,519
	W	527,377		712,330

(*) 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

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

50. Related parties (continued)

(f) Unsettled commitments of derivatives with related parties as of December 31, 2024 and 2023 are as follows:

Related Party		Type of Derivatives		2024		2023
Entities under common control
Shinhan Bank Co., Ltd.		Currency swap	W	719,051		716,394
		Currency forward		455,038		612,332
		Interest rate forward		20,010		-
Shinhan Securities Co., Ltd.		Equity options		131,774		109,138
		Interest rate forward		557,964		354,395
			W	1,883,837		1,792,259

(g) Details of bond transactions with a key related party for the years ended December 31, 2024 and 2023 are as follows:

Related Party		2024				2023
		Buy		Sell		Buy		Sell
Entities under common control
Shinhan Securities Co., Ltd.	W	862,553		524,845		759,745		305,425

(h) Details of acquisitions and disposal of assets with key related parties for the years ended December 31, 2024 and 2023 are as follows:

Related Party		Account		2024						2023
						Acquisition		Disposal				Acquisition			Disposal
Subsidiaries
Shinhan Financial Plus Co., Ltd.		Equipment	W	-		-				-				297
		Rental property		-		-				-				269
		Right-of-use assets		147		119				147				-
Shinhan LifeCare Co., Ltd.		Rental property		-		-				198				-
				147		119				345				566
Entities under common control
Shinhan Bank Co., Ltd.		Right-of-use assets		221			28				1,790			1,291
Shinhan DS		Equipment		148		-				94				-
		Development costs		981		-				1,708				-
		Software		510		-				91				-
		Other intangible assets		419		464				-				-
		Other property and equipment		139		-
				2,418		492				3,683				1,291
			W	2,565		611				4,028				1,857

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won, except per share data)

50. 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, 2024 and 2023 are as follows:

Provided to		Collateral assets		Collateral value(*)
				2024		2023
Entities under common control
Shinhan Bank Co., Ltd.		Government bonds	W	115,966		7,203
Shinhan Securities Co., Ltd.		Bonds, Stocks and beneficiary certificates		22,155		47,724
			W	138,121		54,927

(*) 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, 2024 and 2023 are as follows:

Provided by		Collateral asset		Collateral value
				2024		2023
Subsidiary
Shinhan Financial Plus Co., Ltd.		Deposits	W	30		30
Entities under common control
Shinhan Bank Co., Ltd.		Securities		-		10,008
Shinhan Securities Co., Ltd.		Securities		12,501		-
Shinhan Card Co., Ltd.		Deposits		10		10
			W	12,541		10,048

(j) Details of key management personnel compensation for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Short-term employee benefits	W	1,219		1,134
Share-based payment transactions		848		706
Retirement benefits		40		37
	W	2,107		1,877

(k) As of December 31, 2024, the amount of credit card allowance commitments provided by Shinhan Card Co., Ltd., a related party, is W 7,500 million.

51. Earnings per share

Earnings per share for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Profit for the year	W	533,681		481,851
Less: Dividends to hybrid bonds		10,800		10,801
Net profit	W	522,881		471,050
Weighted average number of common shares outstanding		115,654,859 shares		115,654,859 shares
Basic earnings per share in won (*)	W	4,521		4,073

(*) Because the Company does not have a potential diluted common shares and the stock options do not dilute, the diluted earnings per share equal to the basic earnings per share for the years ended December 31, 2024 and 2023.

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

52. Statements of cash flows

(a) As of December 31, 2024 and 2023, transactions involving related parties were excluded, and the amount for that date represents transactions until exclusion from related parties.

		2024		2023
Interest income	W	(1,512,259)		(1,538,432)
Interest expense		78,142		147,255
Dividend income		(32,510)		(30,483)
Income taxes		201,927		160,523
Insurance revenue		(2,847,305)		(2,629,139)
Reinsurance revenue		(52,963)		(40,360)
Insurance finance income from insurance contracts issued		(397,712)		(364,541)
Insurance finance income from reinsurance contracts held		(24,101)		(19,095)
Insurance service expenses		2,010,662		1,753,853
Reinsurance service expenses		57,843		71,631
Insurance finance expenses from insurance contracts issued		2,103,148		2,500,731
Insurance finance expenses from reinsurance contracts held		24,045		19,959
Gains on financial assets at fair value through profit or loss		(663,394)		(824,536)
Losses on financial assets at fair value through profit or loss		629,039		353,758
Gains on disposal of securities at fair value through other comprehensive income		(79,735)		(54,256)
Losses on disposal of securities measured at fair value through other comprehensive income		96,475		55,895
Gains on disposal of securities at amortized cost		(22,284)		-
Losses on disposal of securities at amortized cost		565		-
Provisions for (reversal of) credit losses		6,696		16,842
Gains related to derivatives		(6,677)		(32,022)
Losses related to derivatives		520,521		151,266
Gain on foreign currency translation		(579,956)		(141,485)
Loss on foreign currency translation		171		8,898
Gain on foreign currency transaction		(17,421)		(2,275)
Loss on foreign currency transaction		-		13,090
Amortization of right-of-use assets		31,676		31,437
Depreciation		17,984		18,337
Amortization of intangible assets		73,124		69,369
Employee costs		11,036		8,395
Rental income		(36)		(30)
Losses on provisions		114		4,694
Non-operating income		(468)		(825)
Non-operating expense		2,776		16,931
	W	(370,877)		(274,615)

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

52. Statements of cash flows (continued)

(b) Changes in assets and liabilities from operating activities for the years ended December 31, 2024 and 2023 are as follows:

		2024		2023
Due from banks at amortized cost	W	(60,966)		30,050
Financial assets at fair value through profit or loss		(77,066)		1,006,404
Loans at amortized cost		808,329		581,073
Other financial assets		51,368		7,501
Other assets		2,750		442
Net defined benefit liabilities		(5,990)		(6,574)
Insurance contract liabilities		(1,175,687)		(1,606,568)
Reinsurance contract liabilities		(46,839)		(33,858)
Investment contract liabilities		(559,350)		(574,854)
Provisions		(4,648)		(14,079)
Derivative liabilities		(1,100)		(22,031)
Other financial liabilities		223,893		(73,885)
Other liabilities		(1,275)		3,664
	W	(846,581)		(702,715)

(c) Cash and cash equivalents reported in the accompanying separate statements of cash flows as of December 31,

2024 and 2023 are as follows:

		2024		2023
Cash and due from banks at amortized cost	W	1,528,871		1,640,481
Adjustments:
Available deposits whose expiration date exceeds<br><br>3 months from the acquisition date		(677,950)		(617,938)
Restricted deposit		(73,717)		(72,100)
	W	777,204		950,443

(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, 2024 and 2023 are as follows:

		2024		2023
Changes in gains(losses) on valuation of securities at fair<br><br>value through other comprehensive income	W	994,881		2,855,074
Write-off of loans at amortized costs		10,664		6,630
Changes in policyholders' equity adjustment		664		591
Recognition of right-of-use assets and lease liabilities		15,291		13,002
Reclassification of payables to property, plant and equipment and intangible assets		-		5,080
Additional provision for restoration		277		295
Interests payable for hybrid bonds		1,497		1,497

SHINHAN LIFE INSURANCE CO., LTD.

Notes to the Separate Financial Statements

As of and for the years ended December 31, 2024 and 2023

(In millions of won)

52. Statements of cash flows (continued)

(e) Changes in liabilities resulting from financing activities for the years ended December 31, 2024 and 2023 are as

follows:

		2024(*1)
		Debentures(*2)		Lease liability		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.

		2023(*1)
		Debentures(*2)		Lease liability		Total
Beginning balance	W	653,451		109,060		762,511
Changes in cash flows		(367,399)		(30,351)		(397,750)
Amortization		189		2,722		2,911
Others		13,090		10,135		23,225
Ending balance	W	299,331		91,566		390,897

(*1) Changes of other financial liabilities are not included.

(*2) Changes of borrowings are included.

53. Event after the reporting period

On December 6, 2024, the Company decided to increase paid-in capital for subsidiaries of the Company, Shinhan LifeCare Co., Ltd. and Shinhan Financial Plus Co., Ltd., through a Board of Directors resolution, and paid W 25,000 million and W 15,000 million, respectively, on January 9, 2025.

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, 2024. 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, 2024, 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 Management Guideline for Evaluation and Reporting of Internal Control over Financial Reporting issued by the ICFR Committee.

This report applies to the Company’s ICFR in existence as of December 31, 2024. We did not review the Company’s ICFR subsequent to December 31, 2024. 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 4, 2025

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, 2024.