Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 425

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 425
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| i) | The amount of fulfillment cash flows expected at initial recognition date for the group of insurance contracts issued. |

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

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

| iv) | Other assets or liabilities recognized previously for cash flows associated with the group 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.

| - | Changes in fulfillment cash flows and contractual service margin. |

The Group re-estimates the future cash flows as of the end of each reporting period at current estimates. Changes in fulfillment cash flows related to the future are adjusted in the contractual service margin, while the current and past service-related portions are recognized in profit or loss. The Group also adjusts the contractual service margin 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 elements. However, changes in the time value of money and financial risk, changes in estimated fulfillment cash flows for the liabilities for incurred claims (assets), and other experience adjustments related to current and past services are not adjusted in the contractual service margin.

The Group adjusts the current contractual service margin at the end of the reporting period by adding the following amounts to the base amount:

| i) | Impact of newly added contracts to the current group of insurance contracts issued. |

| ii) | Accrued interest on the carrying amount of the contractual service margin, measured at the discount rate determined at initial recognition. |

| iii) | Changes in future service-related fulfillment cash flows (excluding recognition and recovery elements of losses). |

| iv) | Effects of currency exchange differences on the contractual service margin. |

| v) | Amounts recognized in the current period’s profit or loss due to the transfer of insurance contract services during the period. |

| - | Loss components and loss recovery components |

The Group considers an insurance contract as one that incurs a loss if, at the initial recognition date, the total of the fulfillment cash flows allocated to the insurance contract, previously recognized insurance acquisition

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SHINHAN