FY2012 Earnings Results May 16, 2013

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1 FY2012 Earnings Results May 16, 2013

2 Disclaimer The financial information contained herein has not been completely reviewed by our external auditor. Therefore, no assurance is provided that our financial statements are fully accurate, and thus our final reviewed statements may differ from the figures provided in this presentation. This presentation may include forward-looking statements that reflect prevailing conditions and the views of management as of the date hereof, all of which are subject to change. Forward-looking statements are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are beyond the control of the Company. No assurance can be given that future events will occur, that the forward-looking statements will be achieved, or that the Company's assumptions are correct. Accordingly, actual results may differ materially from those contemplated by the forward-looking statements.

3 Contents 2012 Key Highlights 2012 Financial Performance 2012 EV Results 2013 Strategic Priorities

4 SAMSUNG LIFE INSURANCE FY2012 Earnings Results 2012 Key Highlights

5 FY2012 Financial Highlights (KRW billion) YoY A P E 5,299 3, % Protection APE 1,882 1, % VoNB 1,148 1, % Embedded Value 24,863 23, % 1 EV per share (KRW) 124, ,707 Total Premiums 2 27,312 19, % Net Profit % Total Assets 186, , % Invested Assets 3 150, , % Shareholders Equity 21,730 18, % RBC Ratio 409% 386% 23%p 1. ROEV based on FY2012 EV results before dividend & share repurchase 2. Excludes corporate pension and retirement insurance 3. Excludes separate account assets, deferred acquisition costs, etc

6 Key Accomplishments in FY2012 Successful execution of growth strategy to decisively outdistance competitors Steadfast increase of VoNB from increased protection and annuity sales Resilient profitability in falling interest rate environment Continued shareholder-focused capital management based on financial strength - 6 -

7 New Business Growth Successful execution of growth strategy to decisively outdistance competitors New Business APE Protection Annuity Savings (KRW billion) +35.7% 5,299 3, % 3, % +32.7% +8.4% +6.8% FY10-7 -

8 VoNB Growth Steadfast increase of VoNB from increased protection and annuity sales VoNB Trend (KRW billion) 1,148 1, % 1, % FY10-8 -

9 Profitability Resilient profitability in falling interest rate environment Net Profit (KRW billion) 1, % 984 FY10 10-Yr KTB Yield (Annual Average) 4.64% 4.00% 3.23% 1. Excludes one-off items such as recovery of Seoul Guarantee ABS loan loss provision and gain from sale of beneficiary certificates - 9 -

10 Shareholder-focused Capital Management Dividend and Share Repurchase History More than 60% of net profit returned to shareholders Share repurchase for 3 consecutive years (total 9M shares, 4.5% of total shares outstanding) (KRW billion) FY10 Total Payout Ratio 1 66% 72% 62% Total Capital Returned to Shareholders Share repurchase Cash dividend Dividend per share (KRW) 2,000 2,000 1,500 Net Profit 1, RBC Ratio 332% 386% 409% 1. (Cash dividend + share repurchase amount) / net profit 2. Calculation based on the closing price of KRW 105,000 on date of BoD meeting (April 22, 2013)

11 SAMSUNG LIFE INSURANCE FY2012 Earnings Results 2012 Financial Performance

12 APE by Product Increased protection sales and structural growth in annuity and savings lead to 35.7% APE growth APE by Product Protection APE (monthly average, KRW billion) Protection Annuity Savings (monthly average, KRW billion) % % % 157 FY

13 APE by Channel Stable APE growth in exclusive channel led by protection sales Strong non-exclusive channel APE growth driven by annuities and savings APE by Channel Exclusive (monthly average, KRW billion) Non-exclusive Exclusive Channel APE (monthly average, KRW billion) Protection Annuity Savings % +35.7% % % 172 Non-exclusive Channel APE % 270 (monthly average, KRW billion) Protection Annuity Savings [ GA ] [ Bancassurance ] % %

14 Exclusive Channel Competitiveness Channel expansion focused on Univ and GFC agents targeting future growth markets Pursuing quality growth accompanied by productivity improvement Exclusive Agents APE per Exclusive Agent (agents) (monthly average, KRW million) ,086 31, , % 8.4 Univ GFC SA 2,415 1,112 2, FC 27,344 26,867 Mar 12 Mar

15 Non-exclusive Channel Leadership Market presence expanded by consumer preference for brand and financial strength Partnered Bancassurance Branches Bancassurance M/S 6,109 +5% 6,430 (branches) Monthly Premium Single Premium 34.5% 11.6% 10.5% 17.2% Mar 12 Mar 13 Partnered Non-exclusive GAs GA M/S (agencies) +28% % 23.6% Mar 12 Mar 13 * Market share data are internal company estimates

16 Retirement Market Growth Surge in sales for both immediate and deferred single premium annuities Continued dominance in corporate pension market with reserves surpassing KRW 9.6 trillion Single Premium Annuity Corporate Pension Reserves Deferred Annuity (monthly average, KRW billion) Immediate Annuity 7, % 9,626 (KRW billion) % Mar 12 Mar Corporate Pension M/S % % 9.5% 9.3% 8.0% 6.7% Samsung Life S K W I 1. FSS Corporate Pension Statistics (Mar 12)

17 HNW Market Growth Expansion of HNW customer base through large-sum whole life sales from inheritance planning Large-sum Whole Life Sales HNW Customer Growth Trend Coverage Amount [Monthly Premium] 1 bn+ 2 bn+ 3 bn+ 1, (monthly average, KRW million) [ Contribution to Total Protection APE ] (customers) [ HNW Customers 1 ] [ Ultra-HNW Customers 2 ] 66,878 52, % % 11, ,106 5% 7, Mar 12 Mar 13 Mar 12 Mar Customers with financial assets of KRW 1B+ (monthly premium equivalent of KRW 3M+) 2. Customers with financial assets of KRW 3B+ (monthly premium equivalent of KRW 8M+) - 17-

18 Invested Assets Sound investment yield despite falling interest rates under adherence to ALM strategy Asset Trend Asset Portfolio (KRW trillion) [ Total Assets ] [ Invested Assets ] Beneficiary Certificates 3% Real Estate 4% Cash & Equivalents 3% (KRW trillion) Equity 14% 151 Bonds 130 Loans 17% 59% Mar 12 Mar 13 Mar 12 Mar 13 Investment yield 1, 5.4% 5.1% 10-Yr KTB yield (annual average) 4.0% 3.2% 1. Yield based on adjusted invested assets which exclude net valuation gains and losses on AFS securities Investment yield = (investment income + capital gains - expenses) / adj. invested assets

19 Interest-earning Assets Stable management centered on treasuries, agency bonds, and policy loans Bond Portfolio Loan Portfolio (KRW trillion) (KRW trillion) Treasury & Agency Bonds (48.3%) Corporate (3.0%) Household Credit (0.7%) Overseas Bonds (4.0%) Corporate Bonds (6.6%) AAA (53%) AA (40%) A (7%) 5.8 Residential Mortgage 1 (3.9%) Policy (9.2%) * Parentheses denote share of total investment portfolio 1. LTV for residential mortgage loans at 43%

20 Improving Reserve Composition Reserve Composition Fixed-rate reserves below 50% Reserve Coverage 6.37% 6.27% Investment yield over reserves 1 Average reserve interest rate Yield on interest-earning assets 41% 44% 49.5% 5.90% 5.71% 5.81% 5.51% 5.76% 5.50% 4.96% 50% Mar 11 Mar 12 Mar 13 59% 56% 5.5%p 50.5% FY10 FY13 (E) Floating-rate reserves Fixed-rate reserves FY15 (E) Investment Income excl. Bonds, Loans, Capital Gains (KRW billion) Rental income Dividend income Fee income FY10 1. (Investment income + rental income + dividends + fee income) / Reserves

21 Expense / Loss / Persistency Rates Lower expense rate, stable loss rate, and enhanced persistency rates Expense Rate 1 Persistency Rates (%) 13th month 25th month (%) FY10 Loss Rate (%) FY10 FY10 1. Expense rate = expense / adjusted total premium (ATP)* * ATP excludes corp. pension & retirement insurance and includes 1/10 of single premiums 2. Loss Rate = (net amount at risk + waiver of premium + reinsurance expense) 3. Figures based on premiums / risk premium

22 Profitability and Capital Adequacy Stable profit despite falling interest rates; maintaining top-notch RBC level in the industry Net Profit RBC Ratio (KRW billion) (KRW trillion) Required capital (100%) Required capital (150%) Surplus capital % +23%p 409% %

23 SAMSUNG LIFE INSURANCE FY2012 Earnings Results 2012 EV Results

24 Embedded Value Summary FY2012 EV at KRW 24.9 trillion with RoEV of 7.2% 1, VoNB up by 6.3% to KRW 1.1 trillion Embedded Value Value of New Business ANW VIF (KRW billion) (KRW billion) 23,741 24,863 2,555 1, % 1,148 5,448 18,293 22, RoEV based on FY2012 EV results before dividends and share repurchase (Cash dividend of KRW 291 bn, share repurchase of KRW 287 bn)

25 VoNB Movement Value of New Business (KRW billion) 1, % ,148 1, % New Business Growth Mortality table revision etc. Changes in actuarial assumptions Changes in economic assumptions

26 EV Movement Analysis EV Movement EV Operating Profit 2,317 3,119-3,736 (KRW billion) 1, ,058 25, ,148 24,863 23,741 RoEV +7.2% VoNB Unwind Operating variance & changes in actuarial assumptions Nonoperating Variance Changes in economic assumptions Dividend & share repurchase

27 EV Movement Details VIF Movement Operating Profit 843 (KRW billion) 5,448 1, ,291-3, ,555 VoNB Unwind Expected Profits Changes in actuarial assumptions Nonoperating Variance Changes in economic assumptions Dividend & share repurchase ANW Operating Profit 1,474 3, (KRW billion) 22, ,767 18, VoNB Unwind Expected Profits Operating Variance Nonoperating Variance Changes in economic assumptions Dividend & share repurchase

28 Key Assumptions NIER (Net Investment Earnings Rate) 4.2% (5.0% assumed for EV calculation) Discount Rate 10.0% (10.5% assumed for EV calculation) Lapse & Surrender Rates 8-year historical experience data Loss Rate 8-year historical experience data Required Capital Capital required to attain a 150% RBC Ratio under the Korean RBC regulation Other Assumptions Maintenance expense assumed to rise at the rate of inflation: 3% per annum Operating expense: actual operating expense incurred during FY2012 Corporate tax rate: 24.2%

29 Sensitivity Analysis (as of Mar 2013, KRW billion) EV Sensitivity VoNB Sensitivity Mid-point : 24,863 Mid-point : 1,148 1 Discount Rate +/ 0.5%p Interest Rate /+ 0.5%p - 1, Lapse & Surrender Rates +/ 10% Claims Ratio +/ 10% -1,855 1, Maintenance Expense +/ 10% Valuation Gains from SEC shares /+ 10% - 1,104 1,104 Required Capital 7-1, (RBC 150%) +/ 50%p

30 SAMSUNG LIFE INSURANCE FY2012 Earnings Results 2013 Strategic Priorities

31 Performance Organic Growth Target - 12 Growth CAGR Protection 8.4% 6.8% 7.6% Savings Annuity 10% +α APE Annuity 6.1% 32.7% 18.6% Savings 56.8% 179.9% 109.5% Total 10.7% 35.7% 22.6% Protection 3~4% VoNB 5.8% 6.3% 6.0% EV (RoEV) 13.9% 7.2% 10.4% FY20(E)

32 2013 Insurance Industry Landscape Industry entering structural growth phase Rediscovery of life insurance value proposition Demographics Policies & Regulations Baby boomers unprepared for retirement Assets heavily concentrated in real estate Low penetration of whole life and annuity Tighter regulatory capital requirements Change in FSS crediting rate formula Strengthened tax regulation on financial income for the wealthy Rediscovery of Life Insurance Lifetime financial planning through whole life products Most efficient long-term savings and retirement planning Active CSR and sustainable management practices

2013 Strategic Priorities Boost protection-driven new

opportunities in retirement and HNW markets Drive quality

non-exclusive channel Maintain stable profit structure

efficiency Strengthen alignment between performance and

33 2013 Strategic Priorities Boost protection-driven new business growth Capitalize on structural growth opportunities in retirement and HNW markets Drive quality growth of exclusive channel and expand presence in non-exclusive channel Maintain stable profit structure Steady insurance profit growth through improved management efficiency Strengthen alignment between performance and long-term corporate value Maximize shareholder value through efficient capital management

34 FY2013 Target New Business APE Growth VoNB Growth Protection : 8-10% Total : 10% (excluding immediate annuities) 5-7% (excluding immediate annuities) RoEV Earnings Growth 8-10% Maintain YoY growth * FY2013 (Apr Dec 2013) growth targets are YoY targets based on Apr Dec 2012 period

36 Terms and Definitions APE: Annualized Premium Equivalent = (Monthly Premium x 12) + (Single Premium 10) Exclusive Channel categories: - FC (Financial Consultant) : high productivity tied agents primarily focusing on protection sales - Univ : young university graduate agents targeting mainly the 20s and 30s - GFC (Group Financial Consultant) : agents targeting corporate benefit clients & CEOs and executives at mid sized companies - SA (Samsung Life Advisors) : agents targeting customers with professional occupations such as doctors, lawyers, etc. HNW customers: customers with estimated financial assets of KRW 1B+ (paying monthly premium equivalent of KRW 3M+) Ultra-HNW customers: customers with estimated financial assets of KRW 3B+ (paying monthly premium equivalent of KRW 8M+) Monthly Premium Equivalent = Monthly Premium + (Yearly Premium 12) + (Single Premium 120) Adjusted Investment Yield = (Investment Income + Realized Capital Gains Expenses) Adjusted Invested Assets Adjusted Invested Assets exclude net valuation gains and losses on available-for-sale securities Investment Yield over Reserves = (Investment Income + Rental Income + Dividends + Fee Income) Reserves Fixed-rate Reserves includes Fixed-rate riders attached to floating-rate main policies Expense Rate = Maintenance Expense ATP (Adjusted Total Premium) ATP: Adjusted Total Premium = 100% of regular premium and 10% of single premium excluding corporate pension Loss Rate = (Net Amount at Risk + Waiver of Premium + Reinsurance Expense) Risk Premium Persistency Rate(13 th month) = The percentage of policies remaining in force from contract to 13 th month, as measured by premiums EV = Adjusted Net Worth + Value of In-Force Business VIF: Value of In-Force business = Present value of future shareholder profits from Value of In Force Cost of Capital VoNB: Value of New Business : Value of In-Force Business expected to emerge from the previous 1-year new business

2014 Financial Performance EV Results Strategic Priorities

2014 Financial Performance EV Results Strategic Priorities The financial information contained herein has not been completely reviewed by our external auditor. Therefore, no assurance is provided that our financial statements are fully accurate, and thus our final