# EDGAR Filing Document

**Accession Number:** 0001263043
**File Stem:** 0001193125-26-086723
**Filing Date:** 2026-3
**Character Count:** 1480415
**Document Hash:** 93843e22e5a0168502d7000cc9b2ea51
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-086723.hdr.sgml**: 20260303

**ACCESSION NUMBER**: 0001193125-26-086723

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20260303

**FILED AS OF DATE**: 20260303

**DATE AS OF CHANGE**: 20260303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SHINHAN FINANCIAL GROUP CO LTD
- **CENTRAL INDEX KEY:** 0001263043
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31798
- **FILM NUMBER:** 26711080

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 120 2-GA TAEPYUNG RO JUNG GU
- **CITY:** SEOUL100-102
- **PROVINCE COUNTRY:** M5
- **ZIP:** 00000
- **BUSINESS PHONE:** 82263603000

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 120 2-GA TAEPYUNG RO JUNG GU
- **STREET 2:** SEOUL 100-102
- **CITY:** SEOUL
- **PROVINCE COUNTRY:** M5
- **ZIP:** 00000

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**——————————**

**FORM 6-K**

**——————————**

**REPORT OF FOREIGN PRIVATE ISSUER**

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

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the Month of March 2026**

**Commission File Number: 001-31798**

**——————————**

**SHINHAN FINANCIAL GROUP CO., LTD.**

**(Translation of registrant's name into English)**

**——————————**

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

**——————————**

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 

------

**<u>Submission of Audit Report (Shinhan Life)</u>**

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

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

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

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

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

------

**SIGNATURES** 

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

---

| | | |
|:---|:---|:---|
|  | <u>Shinhan Financial Group Co., Ltd</u>. | <u>Shinhan Financial Group Co., Ltd</u>. |
|  | (Registrant) | (Registrant) |
| &nbsp;&nbsp;&nbsp;&nbsp;Date: March 03, 2026 | By: | /s/ JANG Jeong Hoon |
|  | Name: JANG Jeong Hoon | Name: JANG Jeong Hoon |
|  | Title: Chief Financial Officer | Title: Chief Financial Officer |

---

------

## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SHINHAN LIFE INSURANCE CO., LTD.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AND SUBSIDIARIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Consolidated Financial Statements**

**December 31, 2025 and 2024**

**(With Independent Auditors' Report Thereon)**

------

Contents

---

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

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Financial Position (Continued)**

As of December 31, 2025 and 2024

**Independent Auditors' Report**

(<u>Based on a report originally issued in Korean</u>)

To the Board of Directors and Shareholder

Shinhan Life Insurance Co., Ltd.

**Opinion**

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

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

**Basis for Opinion**

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

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

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

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

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

**Auditors' Responsibilities for the Audit of the Consolidated Financial Statements**

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

------

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

KPMG Samjong Accounting Corp.

March 3, 2026

Seoul, Korea

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Financial Position**

As of December 31, 2025 and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Note** |  | **December 31,** <br>**2025** | **December 31, 2024** | **January 1, 2024** |
| &nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | *58911245052* | W | 2538228 | 1695328 | 1838006 |
| &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss  | *589122450* |  | 12747883 | 11233117 | 11127310 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through<br>other comprehensive income | *589132450* |  | 35710318 | 38023907 | 35674980 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost  | *5891424* |  | 3958459 | 3937616 | 4348023 |
| &nbsp;&nbsp;&nbsp;Investments in associates | *15* |  | 39474 | 27462 | 25956 |
| &nbsp;&nbsp;&nbsp;Loans and receivables at amortized cost  | *5891650* |  | 3567948 | 4031434 | 4775933 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | *626* |  | 494226 | 107668 | 62815 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | *1750* |  | 75440 | 90242 | 97606 |
| &nbsp;&nbsp;&nbsp;Property and equipment | *1850* |  | 137813 | 108775 | 90359 |
| &nbsp;&nbsp;&nbsp;Intangible assets | *1950* |  | 193637 | 232736 | 257771 |
| &nbsp;&nbsp;&nbsp;Derivative assets | *5892250* |  | 40023 | 117522 | 122465 |
| &nbsp;&nbsp;&nbsp;Current tax assets | *4850* |  | 6531 | 82811 | 71169 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | *48* |  | 37 | 1680 | 88 |
| &nbsp;&nbsp;&nbsp;Investment property | *2124* |  | 13973 | 14185 | 14397 |
| &nbsp;&nbsp;&nbsp;Net defined benefit assets | *31* |  | 4868 | 16334 | 34796 |
| &nbsp;&nbsp;&nbsp;Other assets | *23* |  | 132647 | 122451 | 99671 |
| &nbsp;&nbsp;&nbsp;**Total assets** |  | W | 59661505 | 59843268 | 58641345 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Financial Position (Continued)**

As of December 31, 2025 and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Note** |  | **December 31,** <br>**2025** | **December 31, 2024** | **January 1, 2024** |
| &nbsp;&nbsp;&nbsp;**Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Insurance contract liabilities for: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating insurance contracts |  | W | 5089927 | 5318700 | 4909601 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating insurance contracts |  |  | 37008627 | 38131434 | 35398989 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable insurance contracts |  |  | 5814380 | 4970854 | 5225397 |
|  | *625* |  | 47912934 | 48420988 | 45533987 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities | *626* |  | 56378 | 98058 | 93120 |
| &nbsp;&nbsp;&nbsp;Investment contract liabilities | *5892750* |  | 1541684 | 1332468 | 1831826 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities  | *5892250* |  | 937659 | 556370 | 240771 |
| &nbsp;&nbsp;&nbsp;Borrowings | *5892850* |  | 32366 | 23543 | 17835 |
| &nbsp;&nbsp;&nbsp;Debentures | *58929* |  | 798392 | 299487 | 299331 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities  | *589303350* |  | 697904 | 499809 | 267901 |
| &nbsp;&nbsp;&nbsp;Lease liabilities  | *5891750* |  | 77999 | 93923 | 101294 |
| &nbsp;&nbsp;&nbsp;Net defined benefit liabilities | *31* |  | 1186 | 1307 | 2336 |
| &nbsp;&nbsp;&nbsp;Provisions | *32* |  | 107503 | 75720 | 79572 |
| &nbsp;&nbsp;&nbsp;Current tax liabilities | *4550* |  | 14029 | 4248 | 55 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | *48* |  | 1154828 | 1268690 | 1645089 |
| &nbsp;&nbsp;&nbsp;Other liabilities | *33* |  | 122245 | 127956 | 105848 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** |  |  | 53455107 | 52802567 | 50218965 |
| &nbsp;&nbsp;&nbsp;**Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital stocks | *34* |  | 578274 | 578274 | 578274 |
| &nbsp;&nbsp;&nbsp;Hybrid bonds | *34* |  | - | 299452 | 299452 |
| &nbsp;&nbsp;&nbsp;Capital surplus | *34* |  | 820012 | 820012 | 820012 |
| &nbsp;&nbsp;&nbsp;Capital adjustments | *34* |  | 891 | 1461 | 1461 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | *34* |  | (2116963) | (1459913) | 123984 |
| &nbsp;&nbsp;&nbsp;Retained earnings  | *34* |  | 6924184 | 6801415 | 6599197 |
| &nbsp;&nbsp;&nbsp;**Total equity** |  |  | 6206398 | 7040701 | 8422380 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and equity** |  | W | 59661505 | 59843268 | 58641345 |

---

*See accompanying notes to the consolidated financial statements.*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Comprehensive Income**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won, except per share data)* | **Note** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Insurance revenue | *2536* | W | 3080971 | 2857315 |
| &nbsp;&nbsp;&nbsp;Reinsurance revenue | *2637* |  | 164353 | 52963 |
| &nbsp;&nbsp;&nbsp;Insurance service expenses | *25363950* |  | 2299752 | 2084961 |
| &nbsp;&nbsp;&nbsp;Reinsurance service expenses | *2637* |  | 150275 | 57843 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | *39* |  | 100362 | 114718 |
| &nbsp;&nbsp;&nbsp;**Insurance service result** |  |  | &nbsp;&nbsp;&nbsp;&nbsp;694935 | &nbsp;&nbsp;&nbsp;&nbsp;652756 |
| &nbsp;&nbsp;&nbsp;Insurance finance income and investment income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance income from insurance contracts issued | *2538* |  | 204421 | 397712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance income from reinsurance contracts held | *2638* |  | 68751 | 24101 |
| &nbsp;&nbsp;Interest income | *94150* |  | 1501740 | 1546978 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on financial assets at fair value <br>through profit or loss  | *912* |  | 1925142 | 991852 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on disposal of securities at fair value through other comprehensive income  | *913* |  | 81508 | 79735 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on securities at amortized cost | *914* |  | 17064 | 22284 |
| &nbsp;&nbsp;Gains on disposal of loans at amortized cost | *912* |  | 4058 | 103 |
| &nbsp;&nbsp;Reversal of credit loss allowance | *4250* |  | 14126 | 10117 |
| &nbsp;&nbsp;Gains on foreign currency transaction | *43* |  | 267837 | 714920 |
| &nbsp;&nbsp;Gains on derivatives | *2250* |  | 185350 | 66441 |
| &nbsp;&nbsp;Dividend income | *945* |  | 37774 | 32510 |
| &nbsp;&nbsp;Fees and commission income | *4450* |  | 9469 | 12273 |
| &nbsp;&nbsp;Other investment income | *4650* |  | 254250 | 235070 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;4571490 | &nbsp;&nbsp;&nbsp;&nbsp;4134096 |
| &nbsp;&nbsp;&nbsp;Insurance finance expenses and investment expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance expenses from insurance contracts issued | *2538* |  | 2990529 | 2103212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance expenses from reinsurance contracts held | *2638* |  | 57872 | 24045 |
| &nbsp;&nbsp;Interest expenses | *94150* |  | 67403 | 78726 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on financial assets at fair value <br>through profit or loss | *91250* |  | 258583 | 630361 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on disposal of securities at fair value through other comprehensive income | *913* |  | 64118 | 96475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on securities at amortized cost | *914* |  | 6070 | 565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on disposal of loans at amortized cost | *9* |  | 622 | 426 |
| &nbsp;&nbsp;Provision for credit loss allowance | *4250* |  | 18987 | 16347 |
| &nbsp;&nbsp;Losses on foreign currency transaction | *43* |  | 145240 | 12497 |
| &nbsp;&nbsp;Losses on derivatives | *2250* |  | 471242 | 752884 |
| &nbsp;&nbsp;Investment administrative expenses | *4050* |  | 22123 | 19649 |
| &nbsp;&nbsp;Other investment expenses | *4650* |  | 371648 | 326583 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;4474437 | 4061770 |
| &nbsp;&nbsp;&nbsp;**Net finance result** |  |  | 97053 | 72326 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won, except per share data)* | **Note** | **2025** | **2024** |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Comprehensive Income (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Operating profit** |  | W | 791988 | 725082 |
| &nbsp;&nbsp;&nbsp;Non-operating expenses | *47* |  | (1446) | (2747) |
| Equity in net income (loss) of associated companies | *15* |  | (2428) | (893) |
| **Profit before income taxes** |  |  | 788114 | 721442 |
| Income tax expense | *48* |  | 280406 | 193041 |
| **Profit for the period** |  |  | 507708 | 528401 |
| &nbsp;&nbsp;&nbsp;**Other comprehensive income (loss) for the period, net of income tax** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Items that may be subsequently reclassified to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on valuation of securities at<br>fair value through other comprehensive income |  |  | (1476892) | 730417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  |  | (3716) | 7254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on valuation of derivatives held for cash flow hedges |  |  | (300075) | 45219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net finance income (expenses) from insurance contracts issued |  |  | 1279473 | (2353449) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from reinsurance contracts held |  |  | (153671) | (1544) |
|  |  |  | (654881) | (1572103) |
| &nbsp;&nbsp;&nbsp;Items that will not be subsequently reclassified to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on valuation of securities at fair value through other comprehensive income  |  |  | (620) | 849 |
| &nbsp;&nbsp;Remeasurements of defined benefit liabilities |  |  | (1549) | (12683) |
|  |  |  | (2169) | (11834) |
| &nbsp;&nbsp;&nbsp;Total other comprehensive loss, net of income tax | *132234* |  | (657050) | (1583937) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive loss for the period** |  | W | (149342) | (1055536) |
| &nbsp;&nbsp;&nbsp;**Profit attributable to:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity holders of Shinhan Life Insurance Co., Ltd. |  |  | 507708 | 528401 |
|  |  | W | 507708 | 528401 |
| &nbsp;&nbsp;&nbsp;**Total comprehensive loss attributable to:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity holders of Shinhan Life Insurance Co., Ltd. |  |  | (149342) | (1055536) |
|  |  | W | (149342) | (1055536) |
| &nbsp;&nbsp;&nbsp;**Earnings per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings per share and diluted earnings per share in won | *51* | W | 4333 | 4475 |

---

*See accompanying notes to the consolidated financial statements*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Changes in Equity**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In millions of Korean won)* |  | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** |
|  |  | &nbsp;&nbsp;**Capital stock** | &nbsp;&nbsp;**Hybrid bonds** | &nbsp;&nbsp;**Capital surplus** | &nbsp;&nbsp;**Capital adjustments** | &nbsp;&nbsp;**Accumulated other compre-hensive income (loss)** | &nbsp;&nbsp;**Retained earnings** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance at January 1, 2024 before the change** | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820012 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;124738 | &nbsp;&nbsp;6599197 | &nbsp;&nbsp;8423134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effects of changes in accounting policies |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(754) | &nbsp;&nbsp;- | &nbsp;&nbsp;(754) |
| &nbsp;&nbsp;**Balance at January 1, 2024 after the change** |  | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820012 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;123984 | &nbsp;&nbsp;6599197 | &nbsp;&nbsp;8422380 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income for the period:**  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Profit for the period** |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;528401 | &nbsp;&nbsp;528401 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other comprehensive income, net of income tax:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains on valuation of securities at fair value through other comprehensive income  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;731265 | &nbsp;&nbsp;- | &nbsp;&nbsp;731265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;7254 | &nbsp;&nbsp;- | &nbsp;&nbsp;7254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains on valuation of derivatives intended for cash flow hedges |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;45219 | &nbsp;&nbsp;- | &nbsp;&nbsp;45219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from insurance contracts issued |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2353449) | &nbsp;&nbsp;- | &nbsp;&nbsp;(2353449) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from reinsurance contracts held |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1544) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of defined benefit plans |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(12683) | &nbsp;&nbsp;- | &nbsp;&nbsp;(12683) |
| &nbsp;&nbsp;**Total other comprehensive income**  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1583938) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1583938) |
| &nbsp;&nbsp;**Other changes in equity** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(165338) | &nbsp;&nbsp;(165338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividend |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(150004) | &nbsp;&nbsp;(150004) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on hybrid bonds |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10800) | &nbsp;&nbsp;(10800) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Reclassification adjustments from other comprehensive income to retained earnings** |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;41 | &nbsp;&nbsp;(41) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Balance at December 31, 2024**  | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820012 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;(1459913) | &nbsp;&nbsp;6801415 | &nbsp;&nbsp;7040701 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Changes in Equity (Continued)**

For the years ended December 31, 2025 and 2024

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Changes in Equity (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In millions of Korean won)* |  | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd. and subsidiaries** |
|  |  | &nbsp;&nbsp;**Capital stock** | &nbsp;&nbsp;**Hybrid bonds** | &nbsp;&nbsp;**Capital surplus** | &nbsp;&nbsp;**Capital adjustments** | &nbsp;&nbsp;**Accumulated other compre-hensive income (loss)** | &nbsp;&nbsp;**Retained earnings** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance at January 1, 2025** | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820012 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;(1459913) | &nbsp;&nbsp;6801415 | &nbsp;&nbsp;7040701 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income for the period:**  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Profit for the period** |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;507708 | &nbsp;&nbsp;507708 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other comprehensive income, net of income tax:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses on valuation of securities at fair value through other comprehensive income  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1477512) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1477512) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3716) | &nbsp;&nbsp;- | &nbsp;&nbsp;(3716) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses on valuation of derivatives intended for cash flow hedges |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(300075) | &nbsp;&nbsp;- | &nbsp;&nbsp;(300075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income from insurance contracts issued |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1279473 | &nbsp;&nbsp;- | &nbsp;&nbsp;1279473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from reinsurance contracts held |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(153671) | &nbsp;&nbsp;- | &nbsp;&nbsp;(153671) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of defined benefit plans |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1549) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1549) |
| &nbsp;&nbsp;**Total other comprehensive income**  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(657050) | &nbsp;&nbsp;- | &nbsp;&nbsp;(657050) |
| &nbsp;&nbsp;**Other changes in equity** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(378307) | &nbsp;&nbsp;(378307) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payments |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(22) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of hybrid bonds |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(299452) | &nbsp;&nbsp;- | &nbsp;&nbsp;(548) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(300000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on hybrid bonds |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(6632) | &nbsp;&nbsp;(6632) |
| &nbsp;&nbsp;**Balance at December 31, 2025**  | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;- | &nbsp;&nbsp;820012 | &nbsp;&nbsp;891 | &nbsp;&nbsp;(2116963) | &nbsp;&nbsp;6924184  | &nbsp;&nbsp;6206398 |

---

*See accompanying notes to the consolidated financial statements*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Cash Flows**

For the years ended December 31, 2025 and 2024

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;Profit for the period | W | 507708 | 528401 |
| &nbsp;&nbsp;Adjustment for profit or loss (Note 53) |  | (119575) | (386856) |
| &nbsp;&nbsp;Changes in assets and liabilities (Note 53) |  | (79362) | (827321) |
| &nbsp;&nbsp;Income tax paid |  | (26209) | (11807) |
| &nbsp;&nbsp;Interest received |  | 1047421 | 1049194 |
| &nbsp;&nbsp;Interest paid |  | (26653) | (18531) |
| &nbsp;&nbsp;Dividends received |  | 36045 | 37647 |
| **Net cash inflow from operating activities** |  | 1339375 | 370727 |
| **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;Disposal of financial assets at fair value through profit or loss |  | 896239 | 1812962 |
| &nbsp;&nbsp;Acquisition of financial assets at fair value through profit or loss |  | (1726970) | (1629576) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of securities at fair value <br>through other comprehensive income  |  | 5149353 | 4165220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of securities at fair value through<br>other comprehensive income  |  | (4352098) | (4741638) |
| &nbsp;&nbsp;Disposal of securities at amortized cost |  | - | 407544 |
| &nbsp;&nbsp;Acquisition of securities at amortized cost |  | (2655) | (5460) |
| &nbsp;&nbsp;Acquisition of investments in associates |  | (14440) | (2400) |
| &nbsp;&nbsp;Cash inflows from hedging activities |  | 3184 | 4326 |
| &nbsp;&nbsp;Cash outflows from hedging activities |  | (172226) | (114772) |
| &nbsp;&nbsp;Disposal of property and equipment |  | 33 | 162 |
| &nbsp;&nbsp;Acquisition of property and equipment |  | (49353) | (42209) |
| &nbsp;&nbsp;Disposal of intangible assets |  | 958 | 51 |
| &nbsp;&nbsp;Acquisition of intangible assets |  | (40928) | (54963) |
| &nbsp;&nbsp;Decrease in receivables at amortized cost  |  | 6893 | 8887 |
| &nbsp;&nbsp;Increase in receivables at amortized cost  |  | (11763) | (7765) |
| **Net cash outflow from investing activities** |  | (313773) | (199631) |
| **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;Increase in non-controlling interests |  | 7238 | 3909 |
| &nbsp;&nbsp;Issuance of debentures |  | 498594 | - |
| &nbsp;&nbsp;Decrease in other financial liabilities  |  | - | (502) |
| &nbsp;&nbsp;Increase in other financial liabilities  |  | 37 | 983 |
| &nbsp;&nbsp;Decrease in lease liabilities  |  | (36225) | (36043) |
| &nbsp;&nbsp;Dividends paid |  | (378307) | (315343) |
| &nbsp;&nbsp;Redemption of hybrid bonds |  | (300000) | - |
| &nbsp;&nbsp;Interest paid to hybrid bonds |  | (8130) | (10800) |
| **Net cash outflow from financing activities** |  | (216793) | (357796) |
| **Net increase (decrease) in cash and cash equivalents** |  | 808809 | (186700) |
| &nbsp;&nbsp;**Changes in cash and cash equivalents due to** <br>**foreign currency translation** |  | 1751 | 2622 |
| **Cash and cash equivalents at the beginning of the period** |  | 829999 | 1014077 |
| **Cash and cash equivalents at the end of the period** | W | 1640559 | 829999 |

---

*See accompanying notes to the consolidated financial statements.*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

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

**1. <u>Reporting entity</u>**

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

**(a) Controlling company**

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

**(b) Consolidated subsidiaries**

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

---

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

---

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Contined)**

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

**1. <u>Reporting entity (continued)</u>**

**(c) Consolidated structured entities**

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

---

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

---

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**2. <u>Basis of preparation</u>**

**(a) Statement of compliance**

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

**(b) Date of authorization**

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

**(c) Basis of measurement**

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

-derivative financial instruments measured at fair value

-financial instruments at fair value through profit or loss measured at fair value

-securities at fair value through other comprehensive income measured at fair value

-liabilities for cash-settled share-based payment arrangements measured at fair value

-net defined benefit liability (asset) recognized at the net of the present value of defined benefit obligations less the fair value of plan assets

-insurance and reinsurance contract assets and liabilities measured at the fulfilment cash flows

**(d) Functional and presentation currency**

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

**(e) Use of estimates and judgements**

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

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

*i) Uncertainty in assumptions and estimates*

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

-Fair value of financial instruments

-Provision for credit loss and allowance for unused credit commitments

-Impairment of non-financial assets

-Defined benefit obligations

-Insurance contract liabilities and reinsurance contract assets(liabilities)

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**2. <u>Basis of preparation (continued)</u>**

**(e) Use of estimates and judgements (continued)**

*ii) Fair value measurement* 

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

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

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

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

measurement date

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

- Level 3: Unobservable inputs to assets or liabilities

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

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

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

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

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

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

*ii) Amendments to Korean IFRS 1117 'Insurance Contract'*

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies</u>** 

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

**(a) Basis of consolidation**

*i) Subsidiaries*

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

*ii) Intra-group transactions eliminated on consolidation*

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

*iii) Non-controlling interests*

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

*iv) Business combinations*

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

**(b) Investments in associates and joint ventures**

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(c) Revenue recognition criteria**

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

① Identification of contract

② Identification of performance obligation

③ Calculation of transaction price

④ Allocation of transaction price to performance obligation

⑤ Recognition of revenue when performance obligation is fulfilled

*i) Interest income and expenses*

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

*ii) Dividend income*

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

**(d) Overseas operation**

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

**(e) Cash and cash equivalents**

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(f) Non-derivative financial assets** 

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

*i) Financial assets designated at FVTPL*

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

*ii) Equity instruments*

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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).

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(h) Derivative financial instruments**

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

*i) Hedge accounting*

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

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

① Fair value hedge

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

② Cash flow hedge

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

③ Hedge of net investment

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

*ii) Other derivative instruments* 

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(i) Expected credit losses on financial assets** 

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

- Financial assets measured at amortized cost

- Debt instruments measured at fair value through other comprehensive income

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

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

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

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

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

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

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

- the delinquent days of financial assets exceed 90 days

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

*i) Measurement of expected credit loss*

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

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

*ii) Financial assets with credits impaired*

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(l) Property, plant, and equipment** 

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

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

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Expected useful life** |
| &nbsp;&nbsp;Building | &nbsp;&nbsp;50 years |
| &nbsp;&nbsp;Structure | &nbsp;&nbsp;20 years |
| &nbsp;&nbsp;Rental property | &nbsp;&nbsp;5 years or rental period |
| &nbsp;&nbsp;Vehicle | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;Tools | &nbsp;&nbsp;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.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Expected useful life** |
| &nbsp;&nbsp;Development cost | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;Software | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;License | &nbsp;&nbsp;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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(o) Employee benefits** 

*i) Short-term employee benefits* 

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

*ii) Other long-term employee benefits*

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

*iii) Retirement benefits* 

① Defined benefit plans

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

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

**(p) Provisions**

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

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(q) Insurance contract**

*i) Definition and classification of insurance contracts* 

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

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

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

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

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(q) Insurance contract (continued)**

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

1 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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(q) Insurance contract (continued)** 

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

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

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

- The estimate of future cash flows

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

- Future cash flows within the contract boundary

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

<br>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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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*

<br>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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(q) Insurance contract (continued)** 

*ⅵ) Presentation*

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(r) Hybrid bonds**

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

**(s) Income tax**

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

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

**(t) Operating segments**

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

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

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

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

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

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

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

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

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

*ii) K-IFRS 1118 'Presentation and Disclosure in Financial Statements'*

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

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

*iii) K-IFRS Annual Improvements*

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

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

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

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

- K-IFRS 1110 Consolidated Financial Statements – Determination of 'de facto agent'

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**4. <u>Summary of financial information</u>**

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

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

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

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

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

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

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

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

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

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

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management</u>**

(a) Risk management overview

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

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

*i) Risk management principles*

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

1Carry out all operating activities within a predetermined risk appetite, in consideration of the balance of risk and returns;

2Operate a risk management-related decision-making system that enhances management involvement;

3Organize and operate a risk management organization that is independent from the sales and asset management departments;

4Operate a performance management system that explicitly takes into account risks when making business decisions.

5Aim for preemptive and practical risk management functions;

6Share a careful view to prepare for possible deterioration of the situation even in normal conditions;

7Diversify risks to prevent concentration of risks in specific sectors; and

8Follow formal procedures or methods, such as documentation.

*ii) Risk management organization*

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

① Risk Management Committee

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

② Risk Management Steering Committee

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

③ Investment Steering Committee

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(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.

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*iii) Risk management*

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

① Risk Measurement Method

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

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

Where:

EAD is exposure at default

PD is probability of default

LGD is loss given default

R is correlation

M is maturity

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

② Risk limit management and risk mitigation policy

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*iv) Recognition and measurement of expected credit losses*

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

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

*(i) Significant increase in credit risk*

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

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

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

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

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

② Modified financial assets

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

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

③ Risk of default

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

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

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

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

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SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

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

④ Reflection of forward-looking information

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

⑤ Measurement of expected credit loss

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

- Probability of Default (PD)

- Loss Given Default (LGD)

- Exposure At Default (EAD)

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

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

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

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

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

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

⑥ Write-off of financial assets

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*v) Maximum exposure to credit risk*

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2025** |  |
|  |  | **General**<br>**(\*1)** | **Investment-linked (\*2)** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*3)(\*4): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | W | 1165427 | 333521 | 1498948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 351850 | - | 351850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 183117 | - | 183117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 150085 | 41300 | 191385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 706600 | 205231 | 911831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 149981 | - | 149981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1509177 | - | 1509177 |
|  |  | 4216237 | 580052 | 4796289 |
| Due from banks at fair value through profit or loss: |  |  |  |  |
| Banks |  | 40862 | - | 40862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | 7018631 | 3778467 | 10797098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 35608367 | - | 35608367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost (\*4) |  | 3958459 | - | 3958459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 39366 | 657 | 40023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables at amortized cost (\*4) |  | 1202726 | 107160 | 1309886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | 373782 | - | 373782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | 1316609 | - | 1316609 |
|  |  | 1690391 | - | 1690391 |
|  | W | 53775039 | 4466336 | 58241375 |

---

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*v) Maximum exposure to credit risk (continued)*

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2024** |  |
|  |  | **General**<br>**(\*1)** | **Investment-linked (\*2)** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*3)(\*4): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | W | 1099220 | 291575 | 1390795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 429318 | - | 429318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 268572 | - | 268572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 160057 | 40900 | 200957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 45188 | 121954 | 167142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 168292 | - | 168292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1879706 | - | 1879706 |
|  |  | 4050353 | 454429 | 4504782 |
| Due from banks at fair value through profit or loss: |  |  |  |  |
| Banks |  | 35450 | - | 35450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | 6240924 | 3768210 | 10009134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 37862492 | - | 37862492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost (\*4) |  | 3937616 | - | 3937616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 117425 | 97 | 117522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables at amortized cost (\*4) |  | 1106985 | 114995 | 1221980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | 164307 | - | 164307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | 1374078 | - | 1374078 |
|  |  | 1538385 | - | 1538385 |
|  | W | 54889927 | 4337731 | 59227658 |

---

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vi) Impairment information by credit risk of financial instruments*

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

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month expected credit loss** | **12-month expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
|  |  | &nbsp;&nbsp;**Grade 1(\*1)** | **Grade 2(\*1)** | **Grade 2(\*1)** | &nbsp;&nbsp;**Impaired** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*2): |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp; W | 1499822 | 685 | - | - | 1500507 | (1559) | 1498948 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 333100 | 6346 | 9637 | 3231 | 352314 | (464) | 351850 | 347381 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 162033 | 17529 | 5900 | 16755 | 202217 | (19100) | 183117 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 191447 | - | - | - | 191447 | (62) | 191385 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 856576 | 55463 | - | 3592 | 915631 | (3800) | 911831 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 140000 | 10011 | - | - | 150011 | (30) | 149981 | 9898 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1421576 | - | 92241 | - | 1513817 | (4640) | 1509177 | 272845 |
|  |  | 4604554 | 90034 | 107778 | 23578 | 4825944 | (29655) | 4796289 | 630124 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income (\*3) |  | 35608367 | - | - | - | 35608367 | - | 35608367 | - |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 3958717 | - | - | - | 3958717 | (258) | 3958459 | - |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 1304491 | 107 | 2214 | 32749 | 1339561 | (29675) | 1309886 | 1427 |
|  | W | 45476129 | 90141 | 109992 | 56327 | 45732589 | (59588) | 45673001 | 631551 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

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

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

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

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Type of Borrower** | &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;**Grade 2** |
| &nbsp;&nbsp;&nbsp;Retail | Internal credit rating of 5 or above  | Internal credit rating of below 5 |
| &nbsp;&nbsp;&nbsp;Governments/public institutions/central bank | OECD sovereign credit rating of 6 or above  | OECD sovereign credit rating of below 6 |
| &nbsp;&nbsp;&nbsp;Corporations | Internal credit rating of BBB+ or above<br>| Internal credit rating of below BBB+<br>|

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

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

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

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month expected credit loss** | **12-month expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
|  |  | &nbsp;&nbsp;**Grade 1(\*1)** | **Grade 2(\*1)** | **Grade 2(\*1)** | &nbsp;&nbsp;**Impaired** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*2): |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp; W | 1392401 | 470 | - | - | 1392871 | (2076) | 1390795 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 405191 | 9175 | 12042 | 3330 | 429738 | (420) | 429318 | 423658 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 241302 | 26824 | 10756 | 14644 | 293526 | (24954) | 268572 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 201024 | - | - | - | 201024 | (67) | 200957 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 147072 | 17944 | 3591 | - | 168607 | (1465) | 167142 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 158427 | 9927 | - | - | 168354 | (62) | 168292 | 9857 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1629475 | - | 259483 | - | 1888958 | (9252) | 1879706 | 245318 |
|  |  | 4174892 | 64340 | 285872 | 17974 | 4543078 | (38296) | 4504782 | 678833 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income (\*3) |  | 37862492 | - | - | - | 37862492 | - | 37862492 | - |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 3937870 | - | - | - | 3937870 | (254) | 3937616 | - |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 1215975 | 222 | 2498 | 41349 | 1260044 | (38064) | 1221980 | 1167 |
|  | W | 47191229 | 64562 | 288370 | 59323 | 47603484 | (76614) | 47526870 | 680000 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

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

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

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

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Type of Borrower** | &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;**Grade 2** |
| &nbsp;&nbsp;&nbsp;Retail | Internal credit rating of 5 or above  | Internal credit rating of below 5 |
| &nbsp;&nbsp;&nbsp;Governments/public institutions/central bank | OECD sovereign credit rating of 6 or above  | OECD sovereign credit rating of below 6 |
| &nbsp;&nbsp;&nbsp;Corporations | Internal credit rating of BBB+ or above<br>| Internal credit rating of below BBB+<br>|

---

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

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

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;&nbsp;**Credit risk exposure for**<br>**12-month expected credit loss** | &nbsp;&nbsp;&nbsp;**Lifetime expected credit loss** | &nbsp;&nbsp;&nbsp;**Credit risk exposure for**<br>**12-month expected credit loss** | &nbsp;&nbsp;&nbsp;**Lifetime expected**<br> **credit loss** |
| &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;&nbsp;W | 1690391 | -  | 1538143 | - |
| &nbsp;&nbsp;&nbsp;**Grade 2** |  | - | - | - | 242 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;W | 1690391 | - | 1538143 | 242 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vii) Concentration by industry sector*

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** |
|  |  | **Finance and insurance** | **Manufacturing** | &nbsp;&nbsp;&nbsp;**Retail and wholesale** | **Real estate and service** | **Construction service** | **Hotel and food service** | &nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;&nbsp;**Retail** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | 1498948 | - | - | - | - | - | - | - | 1498948 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | - | - | - | - | - | - | - | 351850 | 351850 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | - | - | - | - | - | - | - | 183117 | 183117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 149949 | - | - | - | - | - | 41436 | - | 191385 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | 891909 | 19922 | - | - | - | - | - | - | 911831 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | 140005 | - | - | 9898 | - | - | 78 | - | 149981 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | 194120 | 13796 | - | 716360 | - | - | 584901 | - | 1509177 |
|  |  | 2874931 | 33718 | - | 726258 | - | - | 626415 | 534967 | 4796289 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | 40862 | - | - | - | - | - | - | - | 40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 832638 | 39195 | 9903 | 66018 | 4707 | - | 9844637 | - | 10797098 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 6136352 | 856204 | 125364 | 934951 | 346947 | 12345 | 27196204 | - | 35608367 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost  |  | 168098 | - | - | 117502 | 9996 | - | 3662863 | - | 3958459 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | 40023 | - | - | - | - | - | - | - | 40023 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | 26180 | - | - | 305867 | - | - | 41735 | - | 373782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | - | - | - | - | - | - | 1316609 | - | 1316609 |
|  | W | 10119084 | 929117 | 135267 | 2150596 | 361650 | 12345 | 42688463 | 534967 | 56931489 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vii) Concentration by industry sector (continued)*

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Finance and insurance** | **Manufacturing** | &nbsp;&nbsp;&nbsp;**Retail and wholesale** | **Real estate and service** | **Construction service** | **Hotel and food service** | &nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;&nbsp;**Retail** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | 1390795 | - | - | - | - | - | - | - | 1390795 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | - | - | - | - | - | - | - | 429318 | 429318 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | - | - | - | - | - | - | - | 268572 | 268572 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 159941 | - | - | - | - | - | 41016 | - | 200957 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | 144428 | 19921 | - | - | - | - | 2793 | - | 167142 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | 883 | 5974 | - | 139998 | - | 9857 | 11580 | - | 168292 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | 13347 | 109102 | - | 939088 | 105711 | - | 712458 | - | 1879706 |
|  |  | 1709394 | 134997 | - | 1079086 | 105711 | 9857 | 767847 | 697890 | 4504782 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | 35450 | - | - | - | - | - | - | - | 35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 845686 | 74144 | - | 77233 | 7916 | - | 9004155 | - | 10009134 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 6972763 | 1030373 | 203160 | 1135078 | 442795 | 12160 | 28066163 | - | 37862492 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost  |  | 165728 | - | - | 118643 | 9996 | - | 3643249 | - | 3937616 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | 117522 | - | - | - | - | - | - | - | 117522 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | - | - | - | 98777 | 22672 | - | 42858 | - | 164307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | - | - | - | - | - | - | 1374078 | - | 1374078 |
|  | W | 9846543 | 1239514 | 203160 | 2508817 | 589090 | 22017 | 42898350 | 697890 | 58005381 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*viii) Concentration by geographic location*

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** |
|  |  | **Korea** | &nbsp;&nbsp;&nbsp; **USA** | &nbsp;&nbsp;&nbsp;**UK** | &nbsp;&nbsp;&nbsp; **Japan** | **Vietnam** | &nbsp;&nbsp;&nbsp; **Other** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;1135207 | &nbsp;&nbsp;&nbsp;193760 | &nbsp;&nbsp;&nbsp;3314 | &nbsp;&nbsp;&nbsp;101 | &nbsp;&nbsp;&nbsp;88817 | &nbsp;&nbsp;&nbsp;77749 | &nbsp;&nbsp;&nbsp;1498948 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | &nbsp;&nbsp;&nbsp;351850 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;351850 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | &nbsp;&nbsp;&nbsp;183117 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;183117 |
| &nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | &nbsp;&nbsp;&nbsp;191385 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;191385 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | &nbsp;&nbsp;&nbsp;898387 | &nbsp;&nbsp;&nbsp;8394 | &nbsp;&nbsp;&nbsp;102 | &nbsp;&nbsp;&nbsp;747 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4201 | &nbsp;&nbsp;&nbsp;911831 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | &nbsp;&nbsp;&nbsp;149981 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;149981 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | &nbsp;&nbsp;&nbsp;1509177 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1509177 |
|  |  | &nbsp;&nbsp;&nbsp;4419104 | &nbsp;&nbsp;&nbsp;202154 | &nbsp;&nbsp;&nbsp;3416 | &nbsp;&nbsp;&nbsp;848 | &nbsp;&nbsp;&nbsp;88817 | &nbsp;&nbsp;&nbsp;81950 | &nbsp;&nbsp;&nbsp;4796289 |
| Due from banks at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;40862 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;8331524 | &nbsp;&nbsp;&nbsp;1524052 | &nbsp;&nbsp;&nbsp;91429 | &nbsp;&nbsp;&nbsp;25068 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;825025 | &nbsp;&nbsp;&nbsp;10797098 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | &nbsp;&nbsp;&nbsp;31660305 | &nbsp;&nbsp;&nbsp;2202585 | &nbsp;&nbsp;&nbsp;48800 | &nbsp;&nbsp;&nbsp;109450 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1587227 | &nbsp;&nbsp;&nbsp;35608367 |
| Securities at amortized cost  |  | &nbsp;&nbsp;&nbsp;3950344 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8115 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3958459 |
| Derivative assets |  | &nbsp;&nbsp;&nbsp;33437 | &nbsp;&nbsp;&nbsp;550 | &nbsp;&nbsp;&nbsp;532 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5504 | &nbsp;&nbsp;&nbsp;40023 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | &nbsp;&nbsp;&nbsp;373782 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;373782 |
| &nbsp;&nbsp;Capital commitments |  | &nbsp;&nbsp;&nbsp;1278879 | &nbsp;&nbsp;&nbsp;11195 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;26535 | &nbsp;&nbsp;&nbsp;1316609 |
|  | W | &nbsp;&nbsp;&nbsp;50047375 | &nbsp;&nbsp;&nbsp;3981398 | &nbsp;&nbsp;&nbsp;144177 | &nbsp;&nbsp;&nbsp;135366 | &nbsp;&nbsp;&nbsp;96932 | &nbsp;&nbsp;&nbsp;2526241 | &nbsp;&nbsp;&nbsp;56931489 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*viii) Concentration by geographic location (continued)*

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Korea** | &nbsp;&nbsp;&nbsp; **USA** | &nbsp;&nbsp;&nbsp;**UK** | &nbsp;&nbsp;&nbsp; **Japan** | **Vietnam** | &nbsp;&nbsp;&nbsp; **Other** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;1069278 | &nbsp;&nbsp;&nbsp;71222 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;103 | &nbsp;&nbsp;&nbsp;105753 | &nbsp;&nbsp;&nbsp;144439 | &nbsp;&nbsp;&nbsp;1390795 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | &nbsp;&nbsp;&nbsp;429318 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;429318 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | &nbsp;&nbsp;&nbsp;268572 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;268572 |
| &nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | &nbsp;&nbsp;&nbsp;200957 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;200957 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | &nbsp;&nbsp;&nbsp;152416 | &nbsp;&nbsp;&nbsp;10137 | &nbsp;&nbsp;&nbsp;149 | &nbsp;&nbsp;&nbsp;762 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3678 | &nbsp;&nbsp;&nbsp;167142 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | &nbsp;&nbsp;&nbsp;168292 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;168292 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | &nbsp;&nbsp;&nbsp;1879706 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1879706 |
|  |  | &nbsp;&nbsp;&nbsp;4168539 | &nbsp;&nbsp;&nbsp;81359 | &nbsp;&nbsp;&nbsp;149 | &nbsp;&nbsp;&nbsp;865 | &nbsp;&nbsp;&nbsp;105753 | &nbsp;&nbsp;&nbsp;148117 | &nbsp;&nbsp;&nbsp;4504782 |
| Due from banks at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;35450 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;8343840 | &nbsp;&nbsp;&nbsp;1186540 | &nbsp;&nbsp;&nbsp;82446 | &nbsp;&nbsp;&nbsp;24990 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;371318 | &nbsp;&nbsp;&nbsp;10009134 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | &nbsp;&nbsp;&nbsp;34845378 | &nbsp;&nbsp;&nbsp;1587667 | &nbsp;&nbsp;&nbsp;45250 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1384197 | &nbsp;&nbsp;&nbsp;37862492 |
| Securities at amortized cost  |  | &nbsp;&nbsp;&nbsp;3931915 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5701 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3937616 |
| Derivative assets |  | &nbsp;&nbsp;&nbsp;117425 | &nbsp;&nbsp;&nbsp;52 | &nbsp;&nbsp;&nbsp;45 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;117522 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | &nbsp;&nbsp;&nbsp;164307 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;164307 |
| &nbsp;&nbsp;Capital commitments |  | &nbsp;&nbsp;&nbsp;1331839 | &nbsp;&nbsp;&nbsp;12871 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;29368 | &nbsp;&nbsp;&nbsp;1374078 |
|  | W | &nbsp;&nbsp;&nbsp;52903243 | &nbsp;&nbsp;&nbsp;2903939 | &nbsp;&nbsp;&nbsp;127890 | &nbsp;&nbsp;&nbsp;25855 | &nbsp;&nbsp;&nbsp;111454 | &nbsp;&nbsp;&nbsp;1933000 | &nbsp;&nbsp;&nbsp;58005381 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(c) Market risk

*i) Definition and management objective*

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

*ii) Management Principles*

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

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

② Comply with market risk limits and investment limits;

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*iii) Risk management* 

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

① Market risk measurement technique

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

② Risk management and risk reduction policy

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

③ Foreign exchange risk

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*iv) Types of market risk*

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Average** | **Maximum** | &nbsp;&nbsp;**Minimum** | **December 31** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | &nbsp;&nbsp;W | 409 | 810 | 128 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock price risk |  | 12893 | 17365 | 6952 | 17365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  | 63160 | 73470 | 53534 | 69913 |
| &nbsp;&nbsp;&nbsp;&nbsp;Option volatility risk |  | 193 | 559 | 128 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;W | 76655 | 92204 | 60742 | 87551 |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Average** | **Maximum** | &nbsp;&nbsp;**Minimum** | **December 31** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | &nbsp;&nbsp;W | 1378 | 2204 | 683 | 683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock price risk |  | 8676 | 12634 | 4415 | 11523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  | 52117 | 62105 | 40082 | 55467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Option volatility risk |  | 966 | 1287 | 121 | 559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;W | 63137 | 78230 | 45301 | 68232 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*v) Composition of foreign currency assets and liabilities by currency*

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

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

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**VND** | &nbsp;&nbsp;**VND** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;130 | &nbsp;&nbsp;186981 | &nbsp;&nbsp;3 | &nbsp;&nbsp;5644 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1275 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1652117 | &nbsp;&nbsp;90206 | &nbsp;&nbsp;4 | &nbsp;&nbsp;5917 | &nbsp;&nbsp;290023 |
| &nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | &nbsp;&nbsp;28 | &nbsp;&nbsp;40862 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;40862 |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;1639 | &nbsp;&nbsp;2351007 | &nbsp;&nbsp;38 | &nbsp;&nbsp;63010 | &nbsp;&nbsp;6 | &nbsp;&nbsp;5859 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;61 | &nbsp;&nbsp;87249 | &nbsp;&nbsp;2507125 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;2048 | &nbsp;&nbsp;2938682 | &nbsp;&nbsp;360 | &nbsp;&nbsp;606976 | &nbsp;&nbsp;655 | &nbsp;&nbsp;629854 | &nbsp;&nbsp;3501 | &nbsp;&nbsp;546039 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;110 | &nbsp;&nbsp;158250 | &nbsp;&nbsp;4879801 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;150000 | &nbsp;&nbsp;8190 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;8190 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | &nbsp;&nbsp;201 | &nbsp;&nbsp;288082 | &nbsp;&nbsp;6 | &nbsp;&nbsp;10708 | &nbsp;&nbsp;11 | &nbsp;&nbsp;10140 | &nbsp;&nbsp;68 | &nbsp;&nbsp;10673 | &nbsp;&nbsp;145905 | &nbsp;&nbsp;7966 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1611 | &nbsp;&nbsp;329180 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;4046 | &nbsp;&nbsp;5805614 | &nbsp;&nbsp;407 | &nbsp;&nbsp;686338 | &nbsp;&nbsp;673 | &nbsp;&nbsp;647128 | &nbsp;&nbsp;3569 | &nbsp;&nbsp;556712 | &nbsp;&nbsp;1948022 | &nbsp;&nbsp;106362 | &nbsp;&nbsp;176 | &nbsp;&nbsp;253027 | &nbsp;&nbsp;8055181 |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;346 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;76561 | &nbsp;&nbsp;4180 | &nbsp;&nbsp;- | &nbsp;&nbsp;314 | &nbsp;&nbsp;4840 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;346 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;76561 | &nbsp;&nbsp;4180 | &nbsp;&nbsp;- | &nbsp;&nbsp;314 | &nbsp;&nbsp;4840 |
| &nbsp;&nbsp;&nbsp;&nbsp;On-balance, net exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;4046 | &nbsp;&nbsp;5805268 | &nbsp;&nbsp;407 | &nbsp;&nbsp;686338 | &nbsp;&nbsp;673 | &nbsp;&nbsp;647128 | &nbsp;&nbsp;3569 | &nbsp;&nbsp;556712 | &nbsp;&nbsp;1871461 | &nbsp;&nbsp;102182 | &nbsp;&nbsp;176 | &nbsp;&nbsp;252713 | &nbsp;&nbsp;8050341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance derivative net exposure (\*2) |  | &nbsp;&nbsp;(3195) | &nbsp;&nbsp;(4584740) | &nbsp;&nbsp;(466) | &nbsp;&nbsp;(785119) | &nbsp;&nbsp;(764) | &nbsp;&nbsp;(733880) | &nbsp;&nbsp;(4480) | &nbsp;&nbsp;(698702) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(149) | &nbsp;&nbsp;(214209) | &nbsp;&nbsp;(7016650) |
| &nbsp;&nbsp;Net position | &nbsp;&nbsp;W | &nbsp;&nbsp;851 | &nbsp;&nbsp;1220528 | &nbsp;&nbsp;(59) | &nbsp;&nbsp;(98781) | &nbsp;&nbsp;(91) | &nbsp;&nbsp;(86752) | &nbsp;&nbsp;(911) | &nbsp;&nbsp;(141990) | &nbsp;&nbsp;1871461 | &nbsp;&nbsp;102182 | &nbsp;&nbsp;27 | &nbsp;&nbsp;38504 | &nbsp;&nbsp;1033691 |

---

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

(\*2) Derivative contract amounts

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

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

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

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

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**VND** | &nbsp;&nbsp;**VND** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;41 | &nbsp;&nbsp;59893 | &nbsp;&nbsp;9 | &nbsp;&nbsp;14366 | &nbsp;&nbsp;1 | &nbsp;&nbsp;825 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1864702 | &nbsp;&nbsp;107593 | &nbsp;&nbsp;1 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;184709 |
| &nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | &nbsp;&nbsp;24 | &nbsp;&nbsp;35450 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;35450 |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;1069 | &nbsp;&nbsp;1570566 | &nbsp;&nbsp;29 | &nbsp;&nbsp;44780 | &nbsp;&nbsp;7 | &nbsp;&nbsp;6067 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;53 | &nbsp;&nbsp;78287 | &nbsp;&nbsp;1699700 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;1668 | &nbsp;&nbsp;2451668 | &nbsp;&nbsp;330 | &nbsp;&nbsp;504053 | &nbsp;&nbsp;626 | &nbsp;&nbsp;572342 | &nbsp;&nbsp;3687 | &nbsp;&nbsp;491250 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;31 | &nbsp;&nbsp;45250 | &nbsp;&nbsp;4064563 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;100000 | &nbsp;&nbsp;5770 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5770 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | &nbsp;&nbsp;139 | &nbsp;&nbsp;203945 | &nbsp;&nbsp;5 | &nbsp;&nbsp;7754 | &nbsp;&nbsp;10 | &nbsp;&nbsp;8912 | &nbsp;&nbsp;68 | &nbsp;&nbsp;9117 | &nbsp;&nbsp;148692 | &nbsp;&nbsp;8580 | &nbsp;&nbsp;- | &nbsp;&nbsp;615 | &nbsp;&nbsp;238923 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;2941 | &nbsp;&nbsp;4321522 | &nbsp;&nbsp;373 | &nbsp;&nbsp;570953 | &nbsp;&nbsp;644 | &nbsp;&nbsp;588146 | &nbsp;&nbsp;3755 | &nbsp;&nbsp;500367 | &nbsp;&nbsp;2113394 | &nbsp;&nbsp;121943 | &nbsp;&nbsp;85 | &nbsp;&nbsp;126184 | &nbsp;&nbsp;6229115 |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4 | &nbsp;&nbsp;5591 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5591 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;4 | &nbsp;&nbsp;5591 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5591 |
| &nbsp;&nbsp;&nbsp;&nbsp;On-balance, net exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;2937 | &nbsp;&nbsp;4315931 | &nbsp;&nbsp;373 | &nbsp;&nbsp;570953 | &nbsp;&nbsp;644 | &nbsp;&nbsp;588146 | &nbsp;&nbsp;3755 | &nbsp;&nbsp;500367 | &nbsp;&nbsp;2113394 | &nbsp;&nbsp;121943 | &nbsp;&nbsp;85 | &nbsp;&nbsp;126184 | &nbsp;&nbsp;6223524 |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance derivative net exposure (\*2) |  | &nbsp;&nbsp;(2756) | &nbsp;&nbsp;(4051843) | &nbsp;&nbsp;(413) | &nbsp;&nbsp;(631128) | &nbsp;&nbsp;(708) | &nbsp;&nbsp;(646718) | &nbsp;&nbsp;(4480) | &nbsp;&nbsp;(596833) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(59) | &nbsp;&nbsp;(87109) | &nbsp;&nbsp;(6013631) |
| &nbsp;&nbsp;Net position | &nbsp;&nbsp;W | &nbsp;&nbsp;181 | &nbsp;&nbsp;264088 | &nbsp;&nbsp;(40) | &nbsp;&nbsp;(60175) | &nbsp;&nbsp;(64) | &nbsp;&nbsp;(58572) | &nbsp;&nbsp;(725) | &nbsp;&nbsp;(96466) | &nbsp;&nbsp;2113394 | &nbsp;&nbsp;121943 | &nbsp;&nbsp;26 | &nbsp;&nbsp;39075 | &nbsp;&nbsp;209893 |

---

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

(\*2) Derivative contract amounts

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(d) Interest rate risk

*i) Definition and management objective*

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

*ii) Risk management principles*

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

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

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

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

*iii) Risk management*

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

① Risk measurement method

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

② Risk limit management and risk mitigation policy

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

*iv) Current status of risk*

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**5. <u>Financial risk management (continued)</u>**

(e) Liquidity risk

*i) Definition and management objective*

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

*ii) Management principles*

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

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

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

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

④ Comply with liquidity risk limits; and

⑤ Establish risk management plans for a liquidity crisis.

*iii) Risk management*

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

① Risk measurement method

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

② Risk limit management and risk mitigation policy

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(e) Liquidity risk (continued)

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

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Due in**<br>**1 month**<br>**or less** | **Due after**<br>**1 month**<br>**through**<br>**3 months** | **Due after**<br>**3 months**<br>**through**<br>**6 months** | **Due after**<br>**6 months**<br>**through**<br>**1 year** | **Due after**<br>**1 year**<br>**through**<br>**5 years** | **Due after**<br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 1302293 | 182605 | 2248 | 7378 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;229129 | 992174 | 2715827 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 40862 | 40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 5213725 | 27763 | 157840 | 358645 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2141194 | 4807854 | 12707021 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 91593 | 128245 | 181257 | 298874 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5049067 | 29961282 | 35710318 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 8776 | 787207 | 10258 | 27112 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;501527 | 3735253 | 5070133 |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 60174 | 122086 | 113849 | 204935 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;792775 | 1559894 | 2853713 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 113710 | 87926 | 9608 | 102453 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;354285 | 673995 | 1341977 |
|  | W | 6790271 | 1335832 | 475060 | 999397 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9067977 | 41771314 | 60439851 |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings | W | - | - | - | - | - | 32366 | 32366 |
| &nbsp;&nbsp;&nbsp;Debentures |  | - | 8150 | 8150 | 16300 | 882900 | - | 915500 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities(\*1) |  | 199820 | 43403 | 10243 | 415427 | 29043 | 14 | 697950 |
| &nbsp;&nbsp;&nbsp;Lease liabilities(\*1)  |  | 3644 | 5395 | 9968 | 18144 | 39702 | 3773 | 80626 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract<br>liabilities |  | 189704 | 15843 | 91042 | 159182 | 1085913 | - | 1541684 |
|  | W | 393168 | 72791 | 119403 | 609053 | 2037558 | 36153 | 3268126 |
| **Derivatives:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows(\*2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 217582 | 201977 | 515344 | 716202 | 4316721 | 702040 | 6669866 |
| &nbsp;&nbsp;Cash outflows(\*2) |  | (267106) | (1141045) | (666191) | (852985) | (7373361) | (796258) | (11096946) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (49524) | (939068) | (150847) | (136783) | (3056640) | (94218) | (4427080) |
| &nbsp;&nbsp;&nbsp;**Off-balance sheet accounts:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Unused loan <br> commitments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 373782 | - | - | - | - | - | 373782 |
| &nbsp;&nbsp;&nbsp;Capital commitments |  | 1316609 | - | - | - | - | - | 1316609 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1690391 | - | - | - | - | - | 1690391 |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(e) Liquidity risk (continued)

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

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Due in**<br>**1 month**<br>**or less** | **Due after**<br>**1 month**<br>**through**<br>**3 months** | **Due after**<br>**3 months**<br>**through**<br>**6 months** | **Due after**<br>**6 months**<br>**through**<br>**1 year** | **Due after**<br>**1 year**<br>**through**<br>**5 years** | **Due after**<br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 546713 | 134018 | 2369 | 10412 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;247431 | 965514 | 1906457 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 35450 | 35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 797516 | 29553 | 52179 | 232553 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2673033 | 7412833 | 11197667 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 101019 | 188783 | 301887 | 518381 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5815942 | 31097895 | 38023907 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 6041 | 43499 | 5435 | 47290 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1286246 | 3809549 | 5198060 |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 57514 | 183341 | 143029 | 390108 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;924467 | 1802924 | 3501383 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 140057 | 34640 | 4740 | 107750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;348015 | 627932 | 1263134 |
|  | W | 1648860 | 613834 | 509639 | 1306494 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11295134 | 45752097 | 61126058 |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings | W | - | - | - | - | - | 23543 | 23543 |
| &nbsp;&nbsp;&nbsp;Debentures |  | - | 3900 | 3900 | 7800 | 339000 | - | 354600 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities(\*1) |  | 185368 | 55451 | 8941 | 225460 | 24630 | 19 | 499869 |
| &nbsp;&nbsp;&nbsp;Lease liabilities(\*1)  |  | 3483 | 6699 | 9956 | 18823 | 53449 | 4981 | 97391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract<br>liabilities |  | 106106 | 201023 | 286458 | 404864 | 334017 | - | 1332468 |
|  | W | 294957 | 267073 | 309255 | 656947 | 751096 | 28543 | 2307871 |
| **Derivatives:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows(\*2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 49753 | 181090 | 447126 | 797089 | 3796707 | 340458 | 5612223 |
| &nbsp;&nbsp;Cash outflows(\*2) |  | (59507) | (290306) | (515647) | (916425) | (6778137) | (504308) | (9064330) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (9754) | (109216) | (68521) | (119336) | (2981430) | (163850) | (3452107) |
| &nbsp;&nbsp;&nbsp;**Off-balance sheet accounts:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Unused loan <br> commitments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 164307 | - | - | - | - | - | 164307 |
| &nbsp;&nbsp;&nbsp;Capital commitments |  | 1374078 | - | - | - | - | - | 1374078 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1538385 | - | - | - | - | - | 1538385 |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**6. <u>Insurance risk management</u>**

(a) Overview of insurance risk

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

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

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

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

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

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

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

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**6. <u>Insurance risk management (continued)</u>**

(a) Overview of the insurance risk (continued)

① Acceptance strategy

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

② Reinsurance strategy

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**6. <u>Insurance risk management (continued)</u>**

(b) Insurance risk management policy

*i) Measurement of Insurance Risk*

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

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

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

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

*ii) Insurance risk management organization and management method*

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

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

Management methods by risk type are as follows:

① Insurance risk management

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**6. <u>Insurance risk management (continued)</u>**

(b) Insurance risk management policy (continued)

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

② Interest rate risk management

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

③ Liquidity risk management

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

④ Equity price risk management

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

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**6. <u>Insurance Risk management (continued)</u>**

(d) Financial risks related to insurance contracts

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

① Credit risk

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

② Interest rate risk

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

③ Liquidity risk

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

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

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

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

- Monitoring liquidity ratios by running liquidity stress tests

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

④ Market risk

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(e) Concentration of insurance risk

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Insurance contracts** | **Insurance contracts** | **Insurance contracts** |  |  |
|  |  | **Participating** | **Non-Participating** | **Variable** | **Reinsurance contracts** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | &nbsp;&nbsp;W | 4959061 | 29808665 | 5591163 | 53048 | 40411937 |
| &nbsp;&nbsp;&nbsp;&nbsp;International |  | - | (849) | - | - | (849) |
|  | &nbsp;&nbsp;W | 4959061 | 29807816 | 5591163 | 53048 | 40411088 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Insurance contracts** | **Insurance contracts** | **Insurance contracts** |  |  |
|  |  | **Participating** | **Non-Participating** | **Variable** | **Reinsurance contracts** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | &nbsp;&nbsp;W | 5200167 | 31160425 | 4834945 | 345177 | 41540714 |
| &nbsp;&nbsp;&nbsp;&nbsp;International |  | - | (1341) | - | - | (1341) |
|  | &nbsp;&nbsp;W | 5200167 | 31159084 | 4834945 | 345177 | 41539373 |

---

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of USD and EUR, and* | *(In thousands of USD and EUR, and* | *(In thousands of USD and EUR, and* | **2025** | **2025** | **2024** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;*in millions of VND and won)* | &nbsp;&nbsp;&nbsp;&nbsp;*in millions of VND and won)* |  | **Foreign currency amount** | **KRW converted amount** | **Foreign currency amount** | **KRW converted amount** |
| &nbsp;&nbsp;&nbsp;Foreign Currency  | &nbsp;&nbsp;&nbsp;USD | W  | 279946 | 401695 | 168209 | 247267 |
| &nbsp;&nbsp;&nbsp;Insurance Liabilities | &nbsp;&nbsp;&nbsp;EUR |  | 110 | 185 | 119 | 182 |
| &nbsp;&nbsp;&nbsp; - Non-participating | &nbsp;&nbsp;&nbsp;VND |  | (15540) | (849) | (23242) | (1341) |
|  |  | W |  | 401031 |  | 246108 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks

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

*i) Participating insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 4738480 | 130865 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 4732654 | 127293 | 9398 | (1887) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 4742230 | 126951 | 165 | 115 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 4738480 | 130865 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 4726618 | 130294 | 12433 | (6606) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 4750500 | 131545 | (12700) | 6861 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 4743228 | 128161 | (2044) | 611 |

---

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

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

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 4979280 | 118533 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 4974196 | 114164 | 9453 | (1895) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 4984691 | 113928 | (806) | 124 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 4979280 | 118533 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 4963981 | 120301 | 13532 | (5710) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 4994968 | 116666 | (13820) | 5949 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 4984797 | 115214 | (2197) | 484 |

---

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks (continued)

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

*ii) Non-participating insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 28288556 | 7199651 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 28406579 | 7081232 | 397 | (2440) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 29032742 | 6553779 | (98314) | 41408 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 28288556 | 7199651 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 29032371 | 6475155 | (19318) | (78503) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 27470393 | 8000387 | 17427 | 82187 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 28487259 | 7007703 | (6755) | 15146 |

---

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

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

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 29627853 | 6969672 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 29749337 | 6848600 | (411) | (9443) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 30300967 | 6324390 | (27831) | 14386 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 29627853 | 6969672 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 30338377 | 6275939 | (16791) | (89404) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 28845362 | 7734641 | 17522 | 98708 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 29820711 | 6782260 | (5446) | 8158 |

---

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks (continued)

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

*iii) Variable insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 5528259 | 223218 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 5542000 | 218227 | (8750) | 2058 |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 5553328 | 218469 | (20320) | 2632 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 5528259 | 223218 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 5585976 | 190331 | (24830) | (9064) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 5464450 | 278118 | 8909 | 9826 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 5541523 | 216204 | (6250) | 1203 |

---

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

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

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 4773118 | 135908 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 4788129 | 128304 | (7407) | 1386 |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 4797541 | 129336 | (17851) | 1666 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 4773118 | 135908 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 4824350 | 106919 | (22243) | (9536) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 4716553 | 190190 | 2282 | 10428 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 4786747 | 127067 | (4787) | 981 |

---

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks (continued)

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

*iv) After reflecting the reinsurance effect*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 38727725 | 7062840 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 38845670 | 6943850 | 1045 | (2160) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 39445049 | 6463985 | (118469) | 41920 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 38727725 | 7062840 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 39477221 | 6345060 | (31715) | (92695) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 37900620 | 7876309 | 13636 | 97419 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 38944441 | 6861174 | (15050) | 16960 |

---

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

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

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 39819864 | 6869326 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 39946680 | 6740875 | 1635 | 8702 |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 40478965 | 6256714 | (46488) | 34285 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 39819864 | 6869326 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 40533222 | 6181469 | (25501) | (86772) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 39031830 | 7651376 | 5984 | 133903 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 40031868 | 6669753 | (12430) | 9624 |

---

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(g) Credit risk arising from insurance contracts

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

---

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

---

(h) Interest rate risk arising from insurance contracts

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

① Interest rate risk exposure

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;Exposure to financial instruments measured at fair value (\*1) | &nbsp;&nbsp;W | &nbsp;&nbsp;47717387 | &nbsp;&nbsp;48843348 |
| &nbsp;&nbsp;Insurance contract exposure (\*2)  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating |  | &nbsp;&nbsp;4738480 | &nbsp;&nbsp;4979280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;28289432 | &nbsp;&nbsp;29628025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;5528259 | &nbsp;&nbsp;4773118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;172430 | &nbsp;&nbsp;439613 |
| &nbsp;&nbsp;Net exposure (financial instruments less insurance contracts) |  | &nbsp;&nbsp;8988786 | &nbsp;&nbsp;9023312 |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

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

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

② Interest Rate Risk Sensitivity

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2025** | **2024** | **2024** |
|  |  |  | **Effects on<br>profit or loss** | **Effects on equity** | **Effects on<br>profit or loss** | **Effects on equity** |
| 100bp Increase | Insurance contracts (\*1) |  |  |  |  |  |
| 100bp Increase | &nbsp;&nbsp;&nbsp;Participating | W | - | 509420 | - | 539618 |
| 100bp Increase | &nbsp;&nbsp;&nbsp;Non-participating |  | - | 4535425 | - | 3772927 |
| 100bp Increase | &nbsp;&nbsp;&nbsp;Variable |  | - | 21308 | - | 44699 |
| 100bp Increase | Reinsurance contracts (\*1) |  | - | 255489 | - | 50365 |
| 100bp Increase | Financial assets (\*2) |  | (26466) | (4736892) | (35934) | (4777699) |
| 100bp Decrease | Insurance contracts (\*1) |  |  |  |  |  |
| 100bp Decrease | &nbsp;&nbsp;&nbsp;Participating |  | - | (620972) | - | (658212) |
| 100bp Decrease | &nbsp;&nbsp;&nbsp;Non-participating |  | - | (5802811) | - | (5332780) |
| 100bp Decrease | &nbsp;&nbsp;&nbsp;Variable |  | - | (60875) | - | (82742) |
| 100bp Decrease | Reinsurance contracts (\*1) |  | - | (308842) | - | (59948) |
| 100bp Decrease | Financial assets (\*2) |  | 26563 | 5800791 | 35934 | 5837965 |

---

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

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

(i) Equity price risk arising from insurance contracts

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2025** | **2024** | **2024** |
|  |  |  | **Effects on<br>profit or loss** | **Effects on equity** | **Effects on<br>profit or loss** | **Effects on equity** |
| 10% Increase | Insurance contracts |  |  |  |  |  |
| 10% Increase | &nbsp;&nbsp;&nbsp;Participating | W | - | - | - | - |
| 10% Increase | &nbsp;&nbsp;&nbsp;Non-participating |  | - | - | - | - |
| 10% Increase | &nbsp;&nbsp;&nbsp;Variable |  | (255595) | - | (193578) | - |
| 10% Increase | Reinsurance contracts |  | - | - | - | - |
| 10% Increase | Financial assets |  | 255595 | - | 193578 | - |
| 10% Decrease | Insurance contracts |  |  |  |  |  |
| 10% Decrease | &nbsp;&nbsp;&nbsp;Participating |  | - | - | - | - |
| 10% Decrease | &nbsp;&nbsp;&nbsp;Non-participating |  | - | - | - | - |
| 10% Decrease | &nbsp;&nbsp;&nbsp;Variable |  | 255595 | - | 193578 | - |
| 10% Decrease | Reinsurance contracts |  | - | - | - | - |
| 10% Decrease | Financial assets |  | (255595) | - | (193578) | - |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(j) Liquidity risk arising from insurance contracts

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Less than** <br>**1 year** | **1~2**<br>**year** | **2~3** <br>**year** | **3~4** <br>**year** | **4~5** <br>**years** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Insurance Contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows | W | 34397 | 25425 | 20141 | 16443 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13515 | 63988 | 173909 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (240847) | (253700) | (255690) | (258371) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(261112) | (8042439) | (9312159) |
|  |  | (206450) | (228275) | (235549) | (241928) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(247597) | (7978451) | (9138250) |
| &nbsp;&nbsp;&nbsp;Non-participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 6331260 | 5662522 | 5010684 | 4358197 | 3771019 | 51088737 | 76222419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (5068663) | (4871804) | (4780238) | (4705099) | (4437033) | (134903633) | (158766470) |
|  |  | 1262597 | 790718 | 230446 | (346902) | (666014) | (83814896) | (82544051) |
| &nbsp;&nbsp;&nbsp;Variable insurance |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 437302 | 361966 | 297826 | 249995 | 213177 | 2158311 | 3718577 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (948429) | (855175) | (765759) | (669433) | (604609) | (8817026) | (12660431) |
|  |  | (511127) | (493209) | (467933) | (419438) | (391432) | (6658715) | (8941854) |
|  | W | 545020 | 69234 | (473036) | (1008268) | (1305043) | (98452062) | (100624155) |
| **Reinsurance contract** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 322122 | 302044 | 286274 | 278232 | 271893 | 9694621 | 11155186 |
| &nbsp;&nbsp;Cash outflows |  | (347205) | (334989) | (321136) | (312211) | (305518) | (9388316) | (11009375) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (25083) | (32945) | (34862) | (33979) | (33625) | 306305 | 145811 |
| &nbsp;&nbsp;Total (including variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 519937 | 36289 | (507898) | (1042247) | (1338668) | (98145757) | (100478344) |
| &nbsp;&nbsp;Total (excluding variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1031064 | 529498 | (39965) | (622809) | (947236) | (91487042) | (91536490) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

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

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Less than** <br>**1 year** | **1~2**<br>**year** | **2~3** <br>**year** | **3~4** <br>**year** | **4~5** <br>**years** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Insurance Contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows | W | 43374 | 33437 | 24916 | 19959 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16437 | 106215 | 244338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (240206) | (228226) | (232215) | (241157) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(240783) | (8645374) | (9827961) |
|  |  | (196832) | (194789) | (207299) | (221198) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(224346) | (8539159) | (9583623) |
| &nbsp;&nbsp;&nbsp;Non-participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 5582811 | 4840753 | 4361203 | 3863416 | 3314013 | 47454014 | 69416210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (5750906) | (4300951) | (4353876) | (4074145) | (4294566) | (124429513) | (147203957) |
|  |  | (168095) | 539802 | 7327 | (210729) | (980553) | (76975499) | (77787747) |
| &nbsp;&nbsp;&nbsp;Variable insurance |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 482531 | 402250 | 334537 | 279308 | 237124 | 2351146 | 4086896 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (916187) | (783304) | (709458) | (636965) | (559272) | (8181229) | (11786415) |
|  |  | (433656) | (381054) | (374921) | (357657) | (322148) | (5830083) | (7699519) |
|  | W | (798583) | (36041) | (574893) | (789584) | (1527047) | (91344741) | (95070889) |
| **Reinsurance contract** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 225165 | 216544 | 209995 | 207721 | 207575 | 8223398 | 9290398 |
| &nbsp;&nbsp;Cash outflows |  | (244930) | (237756) | (230883) | (227262) | (226934) | (9123146) | (10290911) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (19765) | (21212) | (20888) | (19541) | (19359) | (899748) | (1000513) |
| &nbsp;&nbsp;Total (including variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (818348) | (57253) | (595781) | (809125) | (1546406) | (92244489) | (96071402) |
| &nbsp;&nbsp;Total (excluding variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (384692) | 323801 | (220860) | (451468) | (1224258) | (86414406) | (88371883) |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(k) Claims development

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Total** |
|  |  | **Y - 4** | **Y - 3** | **Y - 2** | **Y - 1** | **Current** <br>**Period (Y)** | **Total** |
| &nbsp;&nbsp;&nbsp;Estimates of undiscounted ultimate gross claims | W | 1069793 | 1106219 | 1154705 | 1232242 | 1419726 | 5982685 |
| &nbsp;&nbsp;&nbsp;Claims paid |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;At end of accident year |  | 832601 | 857694 | 896770 | 952706 | 1098335 | 4638106 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 year later |  | 187431 | 194972 | 201175 | 220039 | - | 803617 |
| &nbsp;&nbsp;&nbsp;&nbsp;2 years later |  | 27435 | 27703 | 30697 | - | - | 85835 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 years later |  | 12000 | 15032 | - | - | - | 27032 |
| &nbsp;&nbsp;&nbsp;&nbsp;4 years later |  | 4859 | - | - | - | - | 4859 |
| &nbsp;&nbsp;&nbsp;Cumulative claims paid |  | 1064326 | 1095402 | 1128643 | 1172745 | 1098335 | 5559449 |
| &nbsp;&nbsp;&nbsp;Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid |  | 5467 | 10818 | 26063 | 59497 | 321391 | 423236 |
| &nbsp;&nbsp;&nbsp;Effect of discounting |  | - | - | - | - | - | (12313) |
| &nbsp;&nbsp;&nbsp;Future claim adjustment expenses |  | - | - | - | - | - | 9205 |
| &nbsp;&nbsp;&nbsp;Incurred claims that have been confirmed but not paid |  | - | - | - | - | - | 1366616 |
| &nbsp;&nbsp;&nbsp;Risk adjustment for non-financial risk |  | - | - | - | - | - | 15973 |
| &nbsp;&nbsp;&nbsp;Reinsurance effect |  | - | - | - | - | - | (119384) |
| Net liability for incurred claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W |  |  |  |  |  | 1683333 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(k) Claims development (continued)

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Total** |
|  |  | **Y - 4** | **Y - 3** | **Y - 2** | **Y - 1** | **Current** <br>**Period (Y)** | **Total** |
| &nbsp;&nbsp;&nbsp;Estimates of undiscounted ultimate gross claims | W | 959974 | 1070850 | 1104112 | 1152207 | 1233110 | 5520253 |
| &nbsp;&nbsp;&nbsp;Claims paid |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;At end of accident year |  | 746984 | 833427 | 857650 | 896474 | 957713 | 4292248 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 year later |  | 166072 | 187415 | 195026 | 202132 | - | 750645 |
| &nbsp;&nbsp;&nbsp;&nbsp;2 years later |  | 23751 | 27433 | 27763 | - | - | 78947 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 years later |  | 13248 | 12079 | - | - | - | 25327 |
| &nbsp;&nbsp;&nbsp;&nbsp;4 years later |  | 4849 | - | - | - | - | 4849 |
| &nbsp;&nbsp;&nbsp;Cumulative claims paid |  | 954904 | 1060354 | 1080439 | 1098606 | 957713 | 5152016 |
| &nbsp;&nbsp;&nbsp;Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid |  | 5070 | 10496 | 23673 | 53601 | 275397 | 368237 |
| &nbsp;&nbsp;&nbsp;Effect of discounting |  | - | - | - | - | - | (11011) |
| &nbsp;&nbsp;&nbsp;Future claim adjustment expenses |  | - | - | - | - | - | 7316 |
| &nbsp;&nbsp;&nbsp;Incurred claims that have been confirmed but not paid |  | - | - | - | - | - | 1436530 |
| &nbsp;&nbsp;&nbsp;Risk adjustment for non-financial risk |  | - | - | - | - | - | 14041 |
| &nbsp;&nbsp;&nbsp;Reinsurance effect |  | - | - | - | - | - | (94435) |
| Net liability for incurred claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W |  |  |  |  |  | 1720678 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**7. <u>Capital risk management</u>**

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

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

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

---

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

---

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

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

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

**8. <u>Fair value of financial instruments</u>**

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

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| &nbsp;&nbsp;&nbsp;**Financial assets:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss | W  | - | 40862 | - | 40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Debt securities |  | 3120892 | 1851300 | 5824906 | 10797098 |
| &nbsp;&nbsp;&nbsp; Equity securities |  | 1909923 | - | - | 1909923 |
|  |  | 5030815 | 1851300 | 5824906 | 12707021 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  |  |  |  |  |
| Debt securities |  | 22931497 | 12676870 | - | 35608367 |
| Equity securities |  | - | - | 101951 | 101951 |
|  |  | 22931497 | 12676870 | 101951 | 35710318 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading |  | 657 | 5346 | 965 | 6968 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 33055 | - | 33055 |
|  |  | 657 | 38401 | 965 | 40023 |
|  | W | 27962969 | 14607433 | 5927822 | 48498224 |
| &nbsp;&nbsp;&nbsp;**Financial liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading | W | 29 | 22443 | - | 22472 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 915187 | - | 915187 |
|  | W | 29 | 937630 | - | 937659 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| &nbsp;&nbsp;&nbsp;**Financial assets:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss | W  | - | 35450 | - | 35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Debt securities |  | 3110322 | 1915608 | 4983204 | 10009134 |
| &nbsp;&nbsp;&nbsp; Equity securities |  | 1188533 | - | - | 1188533 |
|  |  | 4298855 | 1915608 | 4983204 | 11197667 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  |  |  |  |  |
| Debt securities |  | 23212859 | 14649633 | - | 37862492 |
| Equity securities |  | - | - | 161415 | 161415 |
|  |  | 23212859 | 14649633 | 161415 | 38023907 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading |  | 97 | - | 526 | 623 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 116899 | - | 116899 |
|  |  | 97 | 116899 | 526 | 117522 |
|  | W | 27511811 | 16717590 | 5145145 | 49374546 |
| &nbsp;&nbsp;&nbsp;**Financial liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading | W | 245 | 1799 | - | 2044 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 554326 | - | 554326 |
|  | W | 245 | 556125 | - | 556370 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

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

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

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Type of financial instrument** | **Valuation techniques** |  | **2025** | **2024** | **Input variables** |
| &nbsp;&nbsp;**Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities | Net asset value (NAV), Discounted cash flow (DCF), Hull-White model | W | 1892162 | 1951058 | Discount rates, fair value of the underlying assets |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities | DCF |  | 12676870 | 14649633 | Discount rates |
| Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward | Implied forward rate, DCF |  | 9055 | - | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swap | Implied forward rate, DCF |  | 2601 | 2369 | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward | Implied forward rate, DCF |  | 26745 | 114530 | Discount rates |
|  |  | W | 14607433 | 16717590 |  |
| **Financial liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward | Implied forward rate, DCF | W | 285723 | 256882 | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swap | Implied forward rate, DCF |  | 412716 | 245963 | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward | Implied forward rate, DCF |  | 239191 | 53280 | Discount rates |
|  |  | W | 937630 | 556125 |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

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

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financial assets at fair value through profit or loss**  | **Securities at fair value through other comprehensive income** | **Net derivatives held for trading** | **Total**  |
| Beginning balance  | W | 4983204 | 161415 | 526 | 5145145 |
| Total gains or losses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount recognized in profit or loss (\*) |  | 53971 | - | 2665 | 56636 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount recognized in other comprehensive income |  | - | (963) | - | (963) |
| Acquisition  |  | 1270800 | 1499 | 685 | 1272984 |
| Settlement  |  | (483069) | (60000) | (2911) | (545980) |
| Moving from level 3 |  | - | - | - | - |
| Ending balance | W | 5824906 | 101951 | 965 | 5927822 |

---

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Amount recognized in profit or loss** | &nbsp;&nbsp;**Amount recognized in profit or loss related to financial instruments held at the end of the reporting period**  |
| &nbsp;&nbsp;&nbsp;Gains or losses on financial assets at fair value through profit or loss | &nbsp;&nbsp;W | &nbsp;&nbsp;53971 | &nbsp;&nbsp;66547 |
| &nbsp;&nbsp;Gains or losses on derivatives |  | &nbsp;&nbsp;2665 | &nbsp;&nbsp;484 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;56636 | &nbsp;&nbsp;67031 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

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

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **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 | 5046084 | 110362 | 4626 | 5161072 |
| Total gains or losses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amount recognized in profit or loss (\*2) |  | 69844 | - | (3626) | 66218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount recognized in other <br>comprehensive income |  | - | 1153 | - | 1153 |
| Acquisition  |  | 524338 | 50000 | 2581 | 576919 |
| Settlement  |  | (535737) | (100) | (3055) | (538892) |
| Moving from level 3 (\*1) |  | (121325) | - | - | (121325) |
| Ending balance | W | 4983204 | 161415 | 526 | 5145145 |

---

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

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Amount recognized in profit or loss** | &nbsp;&nbsp;**Amount recognized in profit or loss related to financial instruments held at the end of the reporting period**  |
| &nbsp;&nbsp;&nbsp;Gains or losses on financial assets at fair value through profit or loss | &nbsp;&nbsp;W | &nbsp;&nbsp;69844 | &nbsp;&nbsp;69525 |
| &nbsp;&nbsp;Gains or losses on derivatives |  | &nbsp;&nbsp;(3626) | &nbsp;&nbsp;(1570) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;66218 | &nbsp;&nbsp;67955 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

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

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Valuation techniques** |  | **Carrying amount** | **Significant unobservable inputs** | **Range** | **Effects of unobservable inputs on fair value** |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets <br>at fair value<br>through profit<br>or loss  |  |  |  |  |  |  |
| - Debt securities | Dividend discount model, <br>Hull-White, NAV | W | 5824906 | Discount rates, liquidation value | Discount rates 10.08% ~ 17.95%<br>liquidation value 0.00% | Fair value decreases when discount rate increases<br>Fair value increases when liquidation value increases |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities <br>at fair value<br>through other <br>comprehensive<br>income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Equity securities  | Hull-White, NAV |  | 101951 | The volatility of an interest rate | 0.46% ~ 0.67% | The greater the volatility, the greater the fluctuation in fair value |
| Derivative assets |  |  |  |  |  |  |
| - Equity related  | Monte-Carlo<br>Simulation,<br>Black-Scholes |  | 965 | The volatility of an underlying asset | 23.51% ~ 29.54% | The greater the volatility, the greater the fluctuation in fair value |
|  |  | W | 5927822 |  |  |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

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

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Valuation techniques** |  | **Carrying amount** | **Significant unobservable inputs** | **Range** | **Effects of unobservable inputs on fair value** |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets <br>at fair value<br>through profit<br>or loss  |  |  |  |  |  |  |
| - Debt securities | Dividend discount model, <br>Hull-White, NAV | W | 4983204 | Discount rates, liquidation value | Discount rates 6.32% ~ 9.48%<br>liquidation value 0.00% | Fair value decreases when discount rate increases<br>Fair value increases when liquidation value increases |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities <br>at fair value<br>through other <br>comprehensive<br>income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Equity securities  | Hull-White, NAV |  | 161415 | 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>Simulation,<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 | 5145145 |  |  |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

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

*vi) Sensitivity analysis by variation of unobserved variables*

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2025** |
|  |  | **Favorable change** | **Unfavorable change** |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) | W | 7060 | (6966) |
| Securities at fair value through other <br> comprehensive income (\*1) |  | 6829 | (5965) |
| Derivative assets (\*2) |  | 24 | (24) |
|  | W | 13913 | (12955) |

---

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

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2024** | **2024** |
|  |  | **Favorable change** | **Unfavorable change** |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) | W | 9486 | (9249) |
| Securities at fair value through other <br> comprehensive income (\*1) |  | 7132 | (6840) |
| Derivative assets (\*2) |  | 51 | (47) |
|  | W | 16669 | (16136) |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost

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

---

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

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost (continued)

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2025** |
|  |  | **Carrying amount**  | **Fair value**  |
| **Financial assets** |  |  |  |
| Cash and cash equivalents | W | 1640559 | 1640559 |
| Due from banks at amortized cost |  | 897669 | 874201 |
| Securities at amortized cost |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3509359 | 3049353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 440985 | 392786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency-denominated securities |  | 8115 | 7660 |
|  |  | 3958459 | 3449799 |
| Loans at amortized cost |  |  |  |
| Retail loans |  | 534967 | 530810 |
| Corporate loans |  | 1723094 | 1730737 |
|  |  | 2258061 | 2261547 |
| Receivables at amortized cost |  | 1309886 | 1309886 |
|  | W | 10064634 | 9535992 |
| **Financial liabilities**  |  |  |  |
| Investment contract liabilities | W | 1541684 | 1541684 |
| Borrowings |  | 32366 | 32366 |
| Debentures  |  | 798392 | 788577 |
| Other financial liabilities |  | 697904 | 697904 |
|  | W | 3070346 | 3060531 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost (continued)

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2024** | **2024** |
|  |  | **Carrying amount**  | **Fair value**  |
| **Financial assets** |  |  |  |
| Cash and cash equivalents | W | 829999 | 829999 |
| Due from banks at amortized cost |  | 865329 | 867885 |
| Securities at amortized cost |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3489625 | 3190906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 442290 | 416001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency-denominated securities |  | 5701 | 5724 |
|  |  | 3937616 | 3612631 |
| Loans at amortized cost |  |  |  |
| Retail loans |  | 697890 | 705859 |
| Corporate loans |  | 2111564 | 2073375 |
|  |  | 2809454 | 2779234 |
| Receivables at amortized cost |  | 4983204 | 1221980 |
|  | W | 4983204 | 9311729 |
| **Financial liabilities**  |  |  |  |
| Investment contract liabilities | W | 1332468 | 1332468 |
| Borrowings |  | 23543 | 23543 |
| Debentures  |  | 299487 | 306408 |
| Other financial liabilities |  | 499809 | 499809 |
|  | W | 2155307 | 2162228 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost (continued)

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Financial assets** |  |  |  |  |  |
| Due from banks at amortized cost | W | - | 874201 | - | 874201 |
| Securities at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3049353 | - | - | 3049353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | - | 392786 | - | 392786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency-denominated securities |  | - | 7660 | - | 7660 |
|  |  | 3049353 | 400446 | - | 3449799 |
| Loans at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail loans |  | - | - | 530810 | 530810 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate loans |  | - | - | 1730737 | 1730737 |
|  |  | - | - | 2261547 | 2261547 |
|  | W | 3049353 | 1274647 | 2261547 | 6585547 |
| **Financial liabilities**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debentures  | W | - | - | 788577 | 788577 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Financial assets** |  |  |  |  |  |
| Due from banks at amortized cost | W | - | 867885 | - | 867885 |
| Securities at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3190906 | - | - | 3190906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | - | 416001 | - | 416001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency-denominated securities |  | - | 5724 | - | 5724 |
|  |  | 3190906 | 421725 | - | 3612631 |
| Loans at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail loans |  | - | - | 705859 | 705859 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate loans |  | - | - | 2073375 | 2073375 |
|  |  | - | - | 2779234 | 2779234 |
|  | W | 3190906 | 1289610 | 2779234 | 7259750 |
| **Financial liabilities**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debentures  | W | - | - | 306408 | 306408 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments</u>**

(a) Carrying amount of each financial instrument

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financial assets at fair**<br>**value through profit or loss (\*)** | **Financial assets at fair value through other comprehensive income** | **Financial assets at amortized cost** | **Hedging derivatives** | **Total** |
| Cash and due from <br> banks at amortized cost | W | - | - | 1711633 | - | 1711633 |
| Financial assets at fair <br> value through profit or loss |  | 6730227 | - | - | - | 6730227 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 35306146 | - | - | &nbsp;&nbsp;&nbsp;35306146 |
| Securities at amortized cost |  | - | - | 3958459 | - | 3958459 |
| Loans at amortized cost  |  | - | - | 2027001 | - | 2027001 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | - | - | 1197150 | - | 1197150 |
| Derivative assets |  | 6310 | - | - | 33056 | 39366 |
|  |  | 6736537 | 35306146 | 8894243 | 33056 | 50969982 |
| **< Variable>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 537497 | - | 537497 |
| Financial assets at fair <br> value through profit or loss |  | 5673090 | - | - | - | 5673090 |
| Loans at amortized cost  |  | - | - | 41300 | - | 41300 |
| Receivables at amortized cost |  | - | - | 107048 | - | 107048 |
| Derivative assets |  | 657 | - | - | - | 657 |
|  |  | 5673747 | - | 685845 | - | 6359592 |
| **< Retirement>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 289098 | - | 289098 |
| Financial assets at fair <br> value through profit or loss |  | 344566 | - | - | - | 344566 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 404172 | - | - | 404172 |
| Loans at amortized cost  |  | - | - | 189760 | - | 189760 |
| Receivables at amortized cost |  | - | - | 5688 | - | 5688 |
|  |  | 344566 | 404172 | 484546 | - | 1233284 |
|  | W | 12754850 | 35710318 | 10064634 | 33056 | 58562858 |

---

(\*) Included derivatives held for trading.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Financial assets at fair**<br>**value through profit or loss (\*)** | **Financial assets at fair value through other comprehensive income** | **Financial assets at amortized cost** | **Hedging derivatives** | **Total** |
| Cash and due from <br> banks at amortized cost | W | - | - | 1230632 | - | 1230632 |
| Financial assets at fair <br> value through profit or loss |  | 6026124 | - | - | - | 6026124 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 37377472 | - | - | &nbsp;&nbsp;&nbsp;37377472 |
| Securities at amortized cost |  | - | - | 3937616 | - | 3937616 |
| Loans at amortized cost  |  | - | - | 2445238 | - | 2445238 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | - | - | 1100761 | - | 1100761 |
| Derivative assets |  | 526 | - | - | 116899 | 117425 |
|  |  | 6026650 | 37377472 | 8714247 | 116899 | 52235268 |
| **< Variable>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 412404 | - | 412404 |
| Financial assets at fair <br> value through profit or loss |  | 4942771 | - | - | - | 4942771 |
| Loans at amortized cost  |  | - | - | 40900 | - | 40900 |
| Receivables at amortized cost |  | - | - | 114800 | - | 114800 |
| Derivative assets |  | 97 | - | - | - | 97 |
|  |  | 4942868 | - | 568104 | - | 5510972 |
| **< Retirement>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 52292 | - | 52292 |
| Financial assets at fair <br> value through profit or loss |  | 264222 | - | - | - | 264222 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 646435 | - | - | 646435 |
| Loans at amortized cost  |  | - | - | 323316 | - | 323316 |
| Receivables at amortized cost |  | - | - | 6419 | - | 6419 |
|  |  | 264222 | 646435 | 382027 | - | 1292684 |
|  | W | 11233740 | 38023907 | 9664378 | 116899 | 59038924 |

---

(\*) Included derivatives held for trading.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financial liabilities at fair value through profit or loss** | **Financial liabilities at amortized cost** | **Hedging derivatives** | **Total** |
| Derivative liabilities | W | 22443 | - | 909968 | 932411 |
| Borrowings |  | - | 32366 | - | 32366 |
| Debentures |  | - | 798392 | - | 798392 |
| Other financial liabilities |  | - | 676358 | - | 676358 |
| &nbsp;&nbsp;&nbsp;Lease liabilities |  | - | 77999 | - | 77999 |
|  |  | 22443 | 1585115 | 909968 | 2517526 |
| **< Variable>**  |  |  |  |  |  |
| Derivative liabilities |  | 29 | - | - | 29 |
| Other financial liabilities |  | - | 21329 | - | 21329 |
|  |  | 29 | 21329 | - | 21358 |
| **< Retirement>**  |  |  |  |  |  |
| Investment contract liabilities |  | - | 1541684 | - | 1541684 |
| Derivative liabilities |  | - | - | 5219 | 5219 |
| Other financial liabilities |  | - | 217 | - | 217 |
|  |  | - | 1541901 | 5219 | 1547120 |
|  | W | 22472 | 3148345 | 915187 | 4086004 |

---

(\*) Included derivatives held for trading.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Financial liabilities at fair value through profit or loss** | **Financial liabilities at amortized cost** | **Hedging derivatives** | **Total** |
| Derivative liabilities | W | 1799 | - | 548988 | 550787 |
| Borrowings |  | - | 23543 | - | 23543 |
| Debentures |  | - | 299487 | - | 299487 |
| Other financial liabilities |  | - | 487118 | - | 487118 |
| &nbsp;&nbsp;&nbsp;Lease liabilities |  | - | 93923 | - | 93923 |
|  |  | 1799 | 904071 | 548988 | 1454858 |
| **< Variable>**  |  |  |  |  |  |
| Derivative liabilities |  | 245 | - | - | 245 |
| Other financial liabilities |  | - | 12544 | - | 12544 |
|  |  | 245 | 12544 | - | 12789 |
| **< Retirement>**  |  |  |  |  |  |
| Investment contract liabilities |  | - | 1332468 | - | 1332468 |
| Derivative liabilities |  | - | - | 5338 | 5338 |
| Other financial liabilities |  | - | 147 | - | 147 |
|  |  | - | 1332615 | 5338 | 1337953 |
|  | W | 2044 | 2249230 | 554326 | 2805600 |

---

(\*) Included derivatives held for trading.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

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

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Net Interest <br>income or expense** | **Dividend <br>income** | **Other gains and losses** | **Gain or loss <br>on valuation** | **Gain or loss <br>on disposal** | **Total** |
| Cash and due from <br> banks at amortized cost | W | 51466 | - | 614 | - | 10993 | 63073 |
| Financial assets at fair <br> value through profit or loss |  | 33936 | 5 | 184430 | 75936 | 18455 | 312762 |
| Securities at fair <br> value through other <br> comprehensive income |  | 1108281 | 5556 | 144849 | - | 16115 | 1274801 |
| Securities at amortized cost |  | 117388 | - | (7) | - | - | 117381 |
| Loans at amortized cost  |  | 103688 | - | (7646) | - | 3437 | 99479 |
| Receivables at amortized cost |  | 3888 | - | (6) | - | - | 3882 |
| Derivatives held for trading |  | - | - | (77567) | - | - | (77567) |
| Derivatives held for hedging |  | - | - | (195428) | - | - | (195428) |
| Debentures |  | (25686) | - | - | - | - | (25686) |
| Other financial liabilities |  | (29) | - | - | - | - | (29) |
| Lease liabilities |  | (2554) | - | - | - | - | (2554) |
|  |  | 1390378 | 5561 | 49239 | 75936 | 49000 | 1570114 |
| **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  |
| Cash and due from <br> banks at amortized cost |  | 10238 | - | (272) | - | - | 9966 |
| Financial assets at fair <br> value through profit or loss |  | 49948 | 31866 | 5378 | 1024241 | 325143 | 1436576 |
| Loans at amortized cost  |  | 830 | - | - | - | - | 830 |
| Receivables at amortized cost |  | 18 | - | (625) | - | - | (607) |
| Derivatives held for trading |  | - | - | (13605) | - | - | (13605) |
|  |  | 61034 | 31866 | (9124) | 1024241 | 325143 | 1433160 |
| **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  |
| Cash and due from <br> banks at amortized cost |  | 806 | - | (4) | - | - | 802 |
| Financial assets at fair <br> value through profit or loss |  | 3 | 152 | 3791 | 1536 | 6617 | 12099 |
| Securities at fair <br> value through other <br> comprehensive income |  | 14049 | 195 | (524) | - | 1275 | 14995 |
| Loans at amortized cost  |  | 7202 | - | 2388 | - | - | 9590 |
| Receivables at amortized cost |  | - | - | 2 | - | - | 2 |
| Derivatives held for trading |  | - | - | 10 | - | - | 10 |
| Derivatives held for hedging |  | - | - | 697 | - | - | 697 |
| Investment contract liabilities |  | (39135) | - | - | - | - | (39135) |
|  |  | (17075) | 347 | 6360 | 1536 | 7892 | (940) |
|  | W | 1434337 | 37774 | 46475 | 1101713 | 382035 | 3002334 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

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

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **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** |
| Cash and due from <br> banks at amortized cost | W | 51264 | - | 1321 | - | - | 52585 |
| Financial assets at fair <br> value through profit or loss |  | 30041 | - | 328757 | 15737 | 4375 | 378910 |
| Securities at fair <br> value through other <br> comprehensive income |  | 1085216 | 4121 | 454649 | - | 3399 | 1547385 |
| Securities at amortized cost |  | 129179 | - | (43) | - | 21719 | 150855 |
| Loans at amortized cost  |  | 129357 | - | (8210) | - | (323) | 120824 |
| Receivables at amortized cost |  | 3678 | - | 24363 | - | - | 28041 |
| Derivatives held for trading |  | - | - | 6832 | - | - | 6832 |
| Derivatives held for hedging |  | - | - | (568221) | - | - | (568221) |
| Debentures |  | (15761) | - | - | - | - | (15761) |
| Other financial liabilities |  | (36) | - | - | - | - | (36) |
| Lease liabilities |  | (2937) | - | - | - | - | (2937) |
|  |  | 1410001 | 4121 | 239448 | 15737 | 29170 | 1698477 |
| **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  |
| Cash and due from <br> banks at amortized cost |  | 10788 | - | 3857 | - | - | 14645 |
| Financial assets at fair <br> value through profit or loss |  | 66041 | 28001 | 119874 | 10159 | 82282 | 306357 |
| Loans at amortized cost  |  | 1672 | - | - | - | - | 1672 |
| Receivables at amortized cost |  | 19 | - | 1505 | - | - | 1524 |
| Derivatives held for trading |  | - | - | (119124) | - | - | (119124) |
|  |  | 78520 | 28001 | 6112 | 10159 | 82282 | 205074 |
| **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< 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 | 5614 | 2773 | 2187 | 10747 |
| Securities at fair <br> value through other <br> comprehensive income |  | 24542 | 278 | 5908 | - | (20138) | 10590 |
| Loans at amortized cost  |  | 14301 | - | 2401 | - | - | 16702 |
| Receivables at amortized cost |  | - | - | 166 | - | - | 166 |
| Derivatives held for trading |  | - | - | (200) | - | - | (200) |
| Derivatives held for hedging |  | - | - | (5730) | - | - | (5730) |
| Investment contract liabilities |  | (59991) | - | - | - | - | (59991) |
|  |  | (20269) | 388 | 8166 | 2773 | (17951) | (26893) |
|  | W | 1468252 | 32510 | 253726 | 28669 | 93501 | 1876658 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(c) Financial instrument offsetting

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Total financial instruments recognized** | **Total amount of financial instruments recognized that were offset** | **Net amount of financial instruments presented in the statement of financial position** | **Related amounts not offset in the statements of**<br>**financial position** | **Related amounts not offset in the statements of**<br>**financial position** | **Net amount** |
|  |  | **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** | <br>**Financial instruments**  | **Cash collateral received** | **Net amount** |
| **Financial assets**  |  |  |  |  |  |  |  |
| Derivative assets  | W | 39365 | - | 39365 | 34050 | - | 5315 |
| &nbsp;&nbsp;Purchase under repurchase agreement |  | 44100 | - | 44100 | 44100 | - | - |
| &nbsp;&nbsp;Foreign currency-denominated securities lending |  | 1265304 | - | 1265304 | 1092398 | - | 172906 |
|  | W | 1348769 | - | 1348769 | 1170548 | - | 178221 |
| **Financial liabilities**  |  |  |  |  |  |  |  |
| Derivative liabilities  | W | 937630 | - | 937630 | 819949 | - | 117681 |

---

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **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>**financial position** | **Related amounts not offset in the statements of**<br>**financial position** | **Net amount** |
|  |  | **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** | <br>**Financial instruments**  | **Cash collateral received** | **Net amount** |
| **Financial assets**  |  |  |  |  |  |  |  |
| Derivative assets  | W | 117425 | - | 117425 | 108915 | - | 8510 |
| &nbsp;&nbsp;Purchase under repurchase agreement |  | 40900 | - | 40900 | 40900 | - | - |
| &nbsp;&nbsp;Foreign currency-denominated securities lending |  | 1260151 | - | 1260151 | 1197807 | - | 62344 |
|  | W | 1418476 | - | 1418476 | 1347622 | - | 70854 |
| **Financial liabilities**  |  |  |  |  |  |  |  |
| Derivative liabilities  | W | 556125 | - | 556125 | 494031 | - | 62094 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(d) Transfers transaction of financial assets

*i) Financial instruments which do not meet the derecognition criteria*

① Securities Lending Transactions

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Classification** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Financial assets at fair value  | &nbsp;&nbsp;Government bonds | &nbsp;&nbsp;W | &nbsp;&nbsp;9371 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;through profit or loss | &nbsp;&nbsp;Stocks |  | &nbsp;&nbsp;35757 | &nbsp;&nbsp;15826 |
|  |  |  | &nbsp;&nbsp;45128 | &nbsp;&nbsp;15826 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through  | &nbsp;&nbsp;Government bonds |  | &nbsp;&nbsp;7622098 | &nbsp;&nbsp;6481140 |
| &nbsp;&nbsp;&nbsp; other comprehensive income | &nbsp;&nbsp;Foreign currency bonds |  | &nbsp;&nbsp;1265304 | &nbsp;&nbsp;1260151 |
|  |  |  | &nbsp;&nbsp;8887402 | &nbsp;&nbsp;7741291 |
| &nbsp;&nbsp;Securities at amortized cost | &nbsp;&nbsp;Government bonds |  | &nbsp;&nbsp;2370532 | &nbsp;&nbsp;1730170 |
|  |  | &nbsp;&nbsp;W | &nbsp;&nbsp;11303062 | &nbsp;&nbsp;9487287 |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**10. <u>Material accounting estimates and judgments</u>**

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

(a) Fair value of financial instruments

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

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

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

(c) Impairment of non-financial assets

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

(d) Defined benefit obligation

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**10. <u>Material accounting estimates and judgments (continued)</u>**

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

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**11. <u>Cash and due from banks at amortized cost</u>**

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Cash and cash equivalents**: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings account | W | 113761 | 138684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current account |  | 55 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 1526743 | 691258 |
|  |  | 1640559 | 829999 |
| **Due from banks at amortized cost:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposit |  | 532292 | 539407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Installment savings |  | 168250 | 228250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other deposits |  | 198879 | 100403 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Credit loss allowance) |  | (1752) | (2731) |
|  |  | 897669 | 865329 |
|  | W | 2538228 | 1695328 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2024** | **Restrictions**<br>**on use** |
| Due from banks denominated in won | W | 71906 | 60661 | Sales-related pledge establishment,<br>deposits for opening current accounts, deposits for futures transactions, etc. |
| Due from banks denominated in foreign currency |  | 112904 | 15735 | Sales-related pledge establishment,<br>deposits for opening current accounts, deposits for futures transactions, etc. |
|  | W | 184810 | 76396 |  |

---

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

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Designated for measurement of**<br>**12-month expected credit loss** | **Designated for measurement of**<br>**12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance of credit loss allowance | W | 2731 | 2682 |
| Provision for credit loss allowance |  | (881) | (112) |
| Others (\*) |  | (98) | 161 |
| Ending balance of credit loss allowance | W | 1752 | 2731 |

---

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

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Carrying amount (\*)** | **Gains or losses** |
| Installment savings | W | 122550 | 17064 |
| Time deposits |  | 33186 | (6071) |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**12. <u>Financial assets at fair value through profit or loss</u>**

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Due from banks:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks in foreign currency  | W | 40862 | 35450 |
| **Securities**: |  |  |  |
| &nbsp;&nbsp;**Debt securities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds  |  | 1146044 | 1395210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 83762 | 67325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institutions bonds |  | 177496 | 204029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds  |  | 108745 | 146417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Puttable stocks |  | 53233 | 56035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Puttable equity instruments |  | 259238 | 245761 |
| &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates |  | 6145380 | 5850511 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities |  | 139540 | 202256 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in foreign currency  |  | 284767 | 223895 |
| &nbsp;&nbsp;&nbsp;&nbsp;Puttable financial instruments in foreign currency |  | 2408 | 3035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates in foreign currency  |  | 2230885 | 1400558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities in foreign currency  |  | 165600 | 214102 |
|  |  | 10797098 | 10009134 |
| &nbsp;&nbsp;**Equity securities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks |  | 1908466 | 1187865 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign securities |  | 1457 | 668 |
|  |  | 1909923 | 1188533 |
|  |  | 12707021 | 11197667 |
|  | W | 12747883 | 11233117 |

---

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

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;**Gain on financial assets measured at fair value through profit or loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation  | W | 1292826 | 478329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal  |  | 417684 | 269545 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 214632 | 243978 |
|  |  | 1925142 | 991852 |
| &nbsp;&nbsp;**Loss on financial assets measured at fair value through profit or loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation  |  | 191114 | 449660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal  |  | 67469 | 180701 |
|  |  | 258583 | 630361 |
| Net gain (loss) on financial assets at fair value through profit or loss | W | 1666559 | 361491 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**13. <u>Securities at fair value through other comprehensive income</u>**

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Debt securities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | W | 21835014 | 22596093 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 5982047 | 7143921 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institution bonds |  | 832580 | 1189289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds |  | 2078925 | 2868627 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in foreign currency |  | 4879801 | 4064562 |
|  |  | 35608367 | 37862492 |
| **Equity securities (\*):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks |  | 1522 | 2504 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities |  | 100429 | 158911 |
|  |  | 101951 | 161415 |
|  | W | 35710318 | 38023907 |

---

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

(b) Changes in total carrying amount

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance (\*1) | W | 37862492 | 35564618 |
| Acquisition  |  | 4352645 | 4651017 |
| Disposal and redemption |  | (5070702) | (4136394) |
| Others (\*2) |  | (1536068) | 1783251 |
| Ending balance (\*1) | W | 35608367 | 37862492 |

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**13. <u>Securities at fair value through other comprehensive income (continued)</u>**

(c) Changes in credit loss allowance

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance (\*) | W | 8207 | 9466 |
| Reversal of credit loss allowance |  | (1049) | (1257) |
| Other |  | (13) | (2) |
| Ending balance (\*) | W | 7145 | 8207 |

---

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

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

---

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

---

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

---

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

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**13. <u>Securities at fair value through other comprehensive income (continued)</u>**

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

---

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

---

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Gain on disposal of securities at fair value through other <br> comprehensive income | W | 81508 | 79735 |
| Loss on disposal of securities at fair value through other <br> comprehensive income |  | (64118) | (96475) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**14. <u>Securities at amortized cost</u>**

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Government bonds  | W | 3509359 | 3489625 |
| Special purpose bonds |  | 441168 | 442475 |
| Foreign currency-denominated securities |  | 8190 | 5770 |
| (Credit loss allowance) |  | (258) | (254) |
|  | W | 3958459 | 3937616 |

---

(b) Changes in total carrying amount

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance  | W | 3937870 | 4348231 |
| Acquisition |  | 2655 | 5460 |
| Disposal |  | - | (427907) |
| Others (\*) |  | 18192 | 12086 |
| Ending balance  | W | 3958717 | 3937870 |

---

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

(c) Changes in credit loss allowance

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

---

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

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**14. <u>Securities at amortized cost (continued)</u>**

(d) Gains or losses on derecognition

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

---

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

---

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

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**15. <u>Investments in associates</u>**

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investees** | **Location** | **Reporting month of the financial statements** | **Ownership (%)** | **Ownership (%)** |  | **Carrying amount** | **Carrying amount** |
| **Investees** | **Location** | **Reporting month of the financial statements** | **2025** | **2024** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;iPIXEL Co., Ltd. (\*) | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;10.44 | &nbsp;&nbsp;&nbsp;10.51 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Findvalue JD Fund No.1 | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;27.03 | &nbsp;&nbsp;&nbsp;27.03 |  | &nbsp;&nbsp;&nbsp;871 | &nbsp;&nbsp;&nbsp;897 |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;46.84 | &nbsp;&nbsp;&nbsp;46.78 |  | &nbsp;&nbsp;&nbsp;26610 | &nbsp;&nbsp;&nbsp;26565 |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;11993 | &nbsp;&nbsp;&nbsp;- |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;39474 | &nbsp;&nbsp;&nbsp;27462 |

---

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
| &nbsp;&nbsp;**Investees** |  | &nbsp;&nbsp;**Beginning**<br>**balance** | &nbsp;&nbsp;**Acquisition** | &nbsp;&nbsp;**Equity method <br>gain (loss)** | &nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;Findvalue JD Fund No.1 | &nbsp;&nbsp;W | &nbsp;&nbsp;897 | &nbsp;&nbsp;- | &nbsp;&nbsp;(26) | &nbsp;&nbsp;871 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1  |  | &nbsp;&nbsp;26565 | &nbsp;&nbsp;1440 | &nbsp;&nbsp;(1395) | &nbsp;&nbsp;26610 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 |  | &nbsp;&nbsp;- | &nbsp;&nbsp;13000 | &nbsp;&nbsp;(1007) | &nbsp;&nbsp;11993 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;27462 | &nbsp;&nbsp;14440 | &nbsp;&nbsp;(2428) | &nbsp;&nbsp;39474 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Investees** |  | &nbsp;&nbsp;**Beginning**<br>**balance** | &nbsp;&nbsp;**Acquisition** | &nbsp;&nbsp;**Equity method <br>gain (loss)** | &nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;Findvalue JD Fund No.1 | &nbsp;&nbsp;W | &nbsp;&nbsp;884 | &nbsp;&nbsp;- | &nbsp;&nbsp;13 | &nbsp;&nbsp;897 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1  |  | &nbsp;&nbsp;25072 | &nbsp;&nbsp;2400 | &nbsp;&nbsp;(907) | &nbsp;&nbsp;26565 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;25956 | &nbsp;&nbsp;2400 | &nbsp;&nbsp;(894) | &nbsp;&nbsp;27462 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**15. <u>Investments in associates (continued)</u>**

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
| &nbsp;&nbsp;**Investees** |  | &nbsp;&nbsp;**Assets** | &nbsp;&nbsp;**Liabilities** | &nbsp;&nbsp;**Equity** | &nbsp;&nbsp;**Operating income** | &nbsp;&nbsp;**Net income** | &nbsp;&nbsp;**Total comprehensive income** |
| &nbsp;&nbsp;iPIXEL Co., Ltd. | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;687 | &nbsp;&nbsp;591 | &nbsp;&nbsp;96 | &nbsp;&nbsp;(1230) | &nbsp;&nbsp;(233) | &nbsp;&nbsp;(233) |
| &nbsp;&nbsp;Findvalue JD Fund No.1 |  | &nbsp;&nbsp;3224 | &nbsp;&nbsp;- | &nbsp;&nbsp;3224 | &nbsp;&nbsp;- | &nbsp;&nbsp;(76) | &nbsp;&nbsp;(76) |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | &nbsp;&nbsp;58089 | &nbsp;&nbsp;346 | &nbsp;&nbsp;57743 | &nbsp;&nbsp;11 | &nbsp;&nbsp;(776) | &nbsp;&nbsp;(776) |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 |  | &nbsp;&nbsp;25127 | &nbsp;&nbsp;663 | &nbsp;&nbsp;24464 | &nbsp;&nbsp;127 | &nbsp;&nbsp;(1535) | &nbsp;&nbsp;(1535) |
|  | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;87127 | &nbsp;&nbsp;1600 | &nbsp;&nbsp;85527 | &nbsp;&nbsp;(1092) | &nbsp;&nbsp;(2620) | &nbsp;&nbsp;(2620) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Investees** |  | &nbsp;&nbsp;**Assets** | &nbsp;&nbsp;**Liabilities** | &nbsp;&nbsp;**Equity** | &nbsp;&nbsp;**Operating income** | &nbsp;&nbsp;**Net income** | &nbsp;&nbsp;**Total comprehensive income** |
| &nbsp;&nbsp;iPIXEL Co., Ltd. | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;881 | &nbsp;&nbsp;564 | &nbsp;&nbsp;317 | &nbsp;&nbsp;14 | &nbsp;&nbsp;(1396) | &nbsp;&nbsp;(1396) |
| &nbsp;&nbsp;Findvalue JD Fund No.1v |  | &nbsp;&nbsp;3300 | &nbsp;&nbsp;- | &nbsp;&nbsp;3300 | &nbsp;&nbsp;- | &nbsp;&nbsp;(278) | &nbsp;&nbsp;(278) |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | &nbsp;&nbsp;57133 | &nbsp;&nbsp;346 | &nbsp;&nbsp;56787 | &nbsp;&nbsp;55 | &nbsp;&nbsp;(1939) | &nbsp;&nbsp;(1939) |
|  | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;61314 | &nbsp;&nbsp;910 | &nbsp;&nbsp;60404 | &nbsp;&nbsp;69 | &nbsp;&nbsp;(3613) | &nbsp;&nbsp;(3613) |

---

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| **Investees** |  | **Net assets (a)** | **Ownership interest (b)** | **Share of net assets (a)x(b)** | **Unrealized<br>gains or losses** | **Others (\*)** | **Carrying amount** |
| iPIXEL Co., Ltd. | &nbsp;&nbsp;W | 96 | 10.44% | 10 | - | (10) | - |
| Findvalue JD Fund No.1 |  | 3224 | 27.03% | 871 | - | - | 871 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | 57743 | 46.84% | 27049 | (439) | - | 26610 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 |  | 24464 | 50.00% | 12232 | (264) | 25 | 11993 |
|  | &nbsp;&nbsp;W | 85527 |  | 40162 | (703) | 15 | 39474 |

---

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
| **Investees** |  | **Net assets (a)** | **Ownership interest (b)** | **Share of net assets (a)x(b)** | **Unrealized<br>gains or losses** | **Others (\*)** | **Carrying amount** |
| iPIXEL Co., Ltd. | &nbsp;&nbsp;W | 317 | 10.51% | 33 | - | (33) | - |
| Findvalue JD Fund No.1 |  | 3300 | 27.03% | 892 | - | 5 | 897 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | 56787 | 46.78% | 26565 | - | - | 26565 |
|  | &nbsp;&nbsp;W | 60404 |  | 27490 | - | (28) | 27462 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost</u>**

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

*i) Loans at amortized cost*

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Mortgage loans | &nbsp;&nbsp;W | &nbsp;&nbsp;632526 | &nbsp;&nbsp;679799 |
| &nbsp;&nbsp;Credit loans  |  | &nbsp;&nbsp;1322447 | &nbsp;&nbsp;1754050 |
| &nbsp;&nbsp;&nbsp;Loans secured by third party guarantee |  | &nbsp;&nbsp;270361 | &nbsp;&nbsp;349487 |
| &nbsp;&nbsp;&nbsp;Other loans  |  | &nbsp;&nbsp;64100 | &nbsp;&nbsp;60900 |
|  |  | &nbsp;&nbsp;2289434 | &nbsp;&nbsp;2844236 |
| &nbsp;&nbsp;&nbsp;Deferred loan origination cost (fees) |  | &nbsp;&nbsp;(3468) | &nbsp;&nbsp;783 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Credit loss allowance) |  | &nbsp;&nbsp;(27905) | &nbsp;&nbsp;(35565) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;2258061 | &nbsp;&nbsp;2809454 |

---

*ii) Receivables at amortized cost*

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Receivables, etc. | &nbsp;&nbsp;W | &nbsp;&nbsp;108303 | &nbsp;&nbsp;104906 |
| &nbsp;&nbsp;Deposits  |  | &nbsp;&nbsp;63436 | &nbsp;&nbsp;59111 |
| &nbsp;&nbsp;&nbsp;Accrued income  |  | &nbsp;&nbsp;1135133 | &nbsp;&nbsp;1098820 |
| &nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;35105 | &nbsp;&nbsp;- |
|  |  | &nbsp;&nbsp;1341977 | &nbsp;&nbsp;1262837 |
| &nbsp;&nbsp;&nbsp;(Present value discounts) |  | &nbsp;&nbsp;(2416) | &nbsp;&nbsp;(2793) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Credit loss allowance) |  | &nbsp;&nbsp;(29675) | &nbsp;&nbsp;(38064) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;1309886 | &nbsp;&nbsp;1221980 |

---

(b) Changes in total carrying amount

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

*i) Loans at amortized cost*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**asset** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 682492 | 22798 | &nbsp;&nbsp;17974 | 1858681 | 263074 | - | 2845019 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;6614 | (6567) | (47) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(7251) | 7490 | (239) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(17713) | (3280) | 20993 | - | (3591) | 3591 | - |
| &nbsp;&nbsp;&nbsp;Origination, collection and others |  | &nbsp;&nbsp;(145135) | (4904) | (3484) | (223079) | (167242) | - | (543844) |
| &nbsp;&nbsp;&nbsp;Charge off (\*) |  | &nbsp;&nbsp;- | - | (13074) | -  | - | - | (13074) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | - | (2135) | - | - | - | (2135) |
| Ending balance | W | &nbsp;&nbsp;519007 | 15537 | 19988 | 1635602 | 92241 | 3591 | 2285966 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost (continued)</u>**

(b) Changes in total carrying amount (continued)

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

*i) Loans at amortized cost (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**asset** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 770296 | 24596 | &nbsp;&nbsp;14249 | 2640162 | 211068 | - | 3660371 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;7948 | &nbsp;&nbsp;(7782) | &nbsp;&nbsp;(166) | &nbsp;&nbsp;20000 | &nbsp;&nbsp;(20000) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(13075) | &nbsp;&nbsp;13322 | &nbsp;&nbsp;(247) | &nbsp;&nbsp;(54617) | &nbsp;&nbsp;54617 | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(16789) | &nbsp;&nbsp;(1766) | &nbsp;&nbsp;18555 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Origination, collection and others |  | &nbsp;&nbsp;(65888) | &nbsp;&nbsp;(5572) | &nbsp;&nbsp;(2619) | &nbsp;&nbsp;(746864) | &nbsp;&nbsp;17389 | &nbsp;&nbsp;- | &nbsp;&nbsp;(803554) |
| &nbsp;&nbsp;&nbsp;Charge off (\*) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1138) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1138) |
| Ending balance | W | &nbsp;&nbsp;682492 | &nbsp;&nbsp;22798 | &nbsp;&nbsp;17974 | &nbsp;&nbsp;1858681 | &nbsp;&nbsp;263074 | &nbsp;&nbsp;- | &nbsp;&nbsp;2845019 |

---

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

*ii) Receivables at amortized cost*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month**<br>**expected credit loss** | **Lifetime**<br>**expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*) | W | 2914553 | 2498 | 41349 | 2958400 |
| &nbsp;&nbsp;Transfer to (from) 12-month <br>expected credit losses |  | 33 | (31) | (2) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (31) | 40 | (9) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (1699) | 9 | 1690 | - |
| &nbsp;&nbsp;Origination, collection and others |  | 896617 | (302) | (77) | 896238 |
| &nbsp;&nbsp;Charge off |  | - | - | (10202) | (10202) |
| Ending balance (\*) | W | 3809473 | 2214 | 32749 | 3844436 |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month**<br>**expected credit loss** | **Lifetime**<br>**expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*) | W | 2986884 | 2176 | 44921 | 3033981 |
| &nbsp;&nbsp;Transfer to (from) 12-month <br>expected credit losses |  | 57 | (54) | (3) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (171) | 174 | (3) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (98) | (700) | 798 | - |
| &nbsp;&nbsp;Origination, collection and others |  | (72119) | 902 | (259) | (71476) |
| &nbsp;&nbsp;Charge off |  | - | - | (4105) | (4105) |
| Ending balance (\*) | W | 2914553 | 2498 | 41349 | 2958400 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost (continued)</u>**

(c) Changes in credit loss allowance

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

*i) Loans at amortized cost*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**assets** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial assets** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 8353 | 3719 | &nbsp;&nbsp;13302 | 4119 | 6072 | - | 35565 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;1210 | &nbsp;&nbsp;(1168) | &nbsp;&nbsp;(42) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(363) | &nbsp;&nbsp;448 | &nbsp;&nbsp;(85) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(489) | &nbsp;&nbsp;(583) | &nbsp;&nbsp;1072 | &nbsp;&nbsp;- | &nbsp;&nbsp;(798) | &nbsp;&nbsp;798 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Provision (reversal) |  | &nbsp;&nbsp;(3773) | &nbsp;&nbsp;(1022) | &nbsp;&nbsp;11380 | &nbsp;&nbsp;(668) | &nbsp;&nbsp;(3976) | &nbsp;&nbsp;2793 | &nbsp;&nbsp;4734 |
| &nbsp;&nbsp;&nbsp;Collection |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1787 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1787 |
| &nbsp;&nbsp;&nbsp;Charge off |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(13075) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(13075) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1106) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1106) |
| Ending balance | W | &nbsp;&nbsp;4938 | &nbsp;&nbsp;1394 | &nbsp;&nbsp;13233 | &nbsp;&nbsp;3451 | &nbsp;&nbsp;1298 | &nbsp;&nbsp;3591 | &nbsp;&nbsp;27905 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**assets** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial assets** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 8082 | 3184 | &nbsp;&nbsp;9845 | 5806 | 10553 | - | 37470 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;1282 | &nbsp;&nbsp;(1240) | &nbsp;&nbsp;(42) | &nbsp;&nbsp;301 | &nbsp;&nbsp;(301) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(357) | &nbsp;&nbsp;384 | &nbsp;&nbsp;(27) | &nbsp;&nbsp;(120) | &nbsp;&nbsp;120 | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(382) | &nbsp;&nbsp;(286) | &nbsp;&nbsp;668 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Provision (reversal) |  | &nbsp;&nbsp;(272) | &nbsp;&nbsp;1677 | &nbsp;&nbsp;12173 | &nbsp;&nbsp;(1868) | &nbsp;&nbsp;(4300) | &nbsp;&nbsp;- | &nbsp;&nbsp;7410 |
| &nbsp;&nbsp;&nbsp;Collection |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1780 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1780 |
| &nbsp;&nbsp;&nbsp;Charge off |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(435) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(435) |
| Ending balance | W | &nbsp;&nbsp;8353 | &nbsp;&nbsp;3719 | &nbsp;&nbsp;13302 | &nbsp;&nbsp;4119 | &nbsp;&nbsp;6072 | &nbsp;&nbsp;- | &nbsp;&nbsp;35565 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost (continued)</u>**

(c) Changes in credit loss allowance (continued)

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

*ii) Receivables at amortized cost*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*1) | W | 3317 | 90 | 37388 | 40795 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | 8 | (6) | (2) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (2) | 8 | (6) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (1758) | (10) | 1768 | - |
| &nbsp;&nbsp;Provision (reversal) |  | 801 | (32) | (126) | 643 |
| Collection |  | - | - | 289 | 289 |
| &nbsp;&nbsp;Charge off |  | - | - | (10202) | (10202) |
| &nbsp;&nbsp;Others (\*2) |  | (98) | - | - | (98) |
| Ending balance (\*1) | W | 2268 | 50 | 29109 | 31427 |

---

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*1) | W | 3250 | 82 | 39611 | 42943 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | 8 | (5) | (3) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (2) | 5 | (3) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (2) | (15) | 17 | - |
| &nbsp;&nbsp;Provision (reversal) |  | (109) | 23 | 1722 | 1636 |
| Collection |  | - | - | 149 | 149 |
| &nbsp;&nbsp;Charge off |  | - | - | (4105) | (4105) |
| &nbsp;&nbsp;Others (\*2) |  | 172 | - | - | 172 |
| Ending balance (\*1) | W | 3317 | 90 | 37388 | 40795 |

---

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

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

(d) Deferred loan origination cost (fees)

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

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Beginning balance  | W | 783 | (194) |
| Loan origination |  | (5181) | (1313) |
| &nbsp;&nbsp;Amortization |  | 930 | 2290 |
| Ending balance | W | (3468) | 783 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**17. <u>Lease</u>**

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Acquisition cost** | **Accumulated depreciation** | &nbsp;&nbsp;**Carrying amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | &nbsp;&nbsp;W | 226848 | (152084) | 74764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle |  | 1283 | (607) | 676 |
|  | &nbsp;&nbsp;W | 228131 | (152691) | 75440 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Acquisition cost** | **Accumulated depreciation** | &nbsp;&nbsp;**Carrying amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | &nbsp;&nbsp;W | 213019 | (123534) | 89485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle |  | 1297 | (540) | 757 |
|  | &nbsp;&nbsp;W | 214316 | (124074) | 90242 |

---

(b) Changes in the right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Real estate** | **Vehicle** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 89485 | 756 | 90241 |
| Acquisition |  | 30559 | 412 | 30971 |
| Disposal |  | (5196) | (150) | (5346) |
| Depreciation |  | (38902) | (342) | (39244) |
| Transfer |  | (681) | - | (681) |
| &nbsp;&nbsp;Effects of foreign currency movements |  | (501) | - | (501) |
| &nbsp;&nbsp;Ending balance | W | 74764 | 676 | 75440 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Real estate** | **Vehicle** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 96775 | 831 | 97606 |
| Acquisition |  | 33539 | 462 | 34001 |
| Disposal |  | (2566) | (189) | (2755) |
| Depreciation |  | (38753) | (347) | (39100) |
| Transfer |  | (275) | - | (275) |
| &nbsp;&nbsp;Effects of foreign currency movements |  | 765 | - | 765 |
| &nbsp;&nbsp;Ending balance | W | 89485 | 757 | 90242 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**17. <u>Lease (continued)</u>**

(c) The amount recognized in profit or loss for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Depreciation of right-of-use assets  | W | 39243 | 39100 |
| Interest expenses of lease liability |  | 2553 | 2937 |
| Expenses related to low-value lease assets |  | 849 | 1178 |
|  |  | 42645 | 43215 |
| Revenues from sublease of right-of-use assets |  | (98) | (92) |
|  | W | 42547 | 43123 |

---

(d) Total cash outflows from leases for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Cash outflows of lease liabilities | W | 36,225 | 36,043 |
| Cash outflows of low-value lease assets |  | 849 | 1,178 |
|  | W | 37,074 | 37,221 |

---

(e) The estimated timing of outflows of lease liabilities as of the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Due (\*)** |  | **Real estate** | **Vehicle** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;In 1 month or less | &nbsp;&nbsp;W | 3614 | 30 | 3644 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 month through 3 months |  | 5335 | 60 | 5395 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 3 months through 6 months |  | 9881 | 87 | 9968 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 6 months through 1 year |  | 17984 | 159 | 18143 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 year through 5 years |  | 39311 | 392 | 39703 |
| After 5 years |  | 3773 | - | 3773 |
|  | &nbsp;&nbsp;W | 79898 | 728 | 80626 |

---

(\*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Due (\*)** |  | **Real estate** | **Vehicle** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;In 1 month or less | &nbsp;&nbsp;W | 3453 | 30 | 3483 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 month through 3 months |  | 6639 | 60 | 6699 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 3 months through 6 months |  | 9866 | 90 | 9956 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 6 months through 1 year |  | 18652 | 171 | 18823 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 year through 5 years |  | 52981 | 468 | 53449 |
| After 5 years |  | 4981 | - | 4981 |
|  | &nbsp;&nbsp;W | 96572 | 819 | 97391 |

---

(\*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**18. <u>Property and equipment</u>**

(a) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Accumulated**<br>**impairment** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Land | W | 43333 | - | - | 43333 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 36913 | (9802) | (10851) | 16260 |
| &nbsp;&nbsp;&nbsp;Structure |  | 3894 | (2755) | (780) | 359 |
| &nbsp;&nbsp;&nbsp;Rental property (\*) |  | 56483 | (40104) | - | 16379 |
| &nbsp;&nbsp;&nbsp;Equipment (\*) |  | 131146 | (105752) | - | 25394 |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 30062 | - | - | 30062 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 6026 | - | - | 6026 |
|  | W | 307857 | (158413) | (11631) | 137813 |

---

(\*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Accumulated**<br>**impairment** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Land | W | 43333 | - | - | 43333 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 36913 | (9328) | (9979) | 17606 |
| &nbsp;&nbsp;&nbsp;Structure |  | 3894 | (2659) | (728) | 507 |
| &nbsp;&nbsp;&nbsp;Rental property (\*) |  | 48851 | (33653) | - | 15198 |
| &nbsp;&nbsp;&nbsp;Equipment (\*) |  | 123933 | (94834) | - | 29099 |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 2645 | - | - | 2645 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 387 | - | - | 387 |
|  | W | 259956 | (140474) | (10707) | 108775 |

---

(\*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**18. <u>Property and equipment (continued)</u>**

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)** | **Impairment** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 43333 | - | - | - | - | - | 43333 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 17606 | - | - | - | (872) | (474) | 16260 |
| &nbsp;&nbsp;&nbsp;Structure |  | 507 | - | - | - | (52) | (96) | 359 |
| &nbsp;&nbsp;&nbsp;Rental property |  | 15198 | 8135 | (227) | - | - | (6727) | 16379 |
| &nbsp;&nbsp;&nbsp;Equipment |  | 29099 | 8052 | (219) | 1345 | - | (12883) | 25394 |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 2645 | 27417 | - | - | - | - | 30062 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 387 | 5797 | - | (158) | - | - | 6026 |
|  | W | 108775 | 49401 | (446) | 1187 | (924) | (20180) | 137813 |

---

(\*) Included amounts transferred from other property and equipment to equipment, and the effect of exchange rate fluctuations.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)** | **Impairment** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 12877 | 24348 | - | 6108 | - | - | 43333 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 19699 | 14 | - | - | (1590) | (517) | 17606 |
| &nbsp;&nbsp;&nbsp;Structure |  | 739 | - | - | - | (113) | (119) | 507 |
| &nbsp;&nbsp;&nbsp;Rental property |  | 17500 | 4359 | (489) | 509 | - | (6681) | 15198 |
| &nbsp;&nbsp;&nbsp;Equipment |  | 33126 | 9353 | (319) | 480 | - | (13541) | 29099 |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 6288 | 2465 | - | (6108) | - | - | 2645 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 130 | 946 | (13) | (676) | - | - | 387 |
|  | W | 90359 | 41485 | (821) | 313 | (1703) | (20858) | 108775 |

---

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

(c) As of December 31, 2025, there are no property and equipment provided as collateral.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**19. <u>Intangible assets</u>**

(a) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Acquisi-tion costs** | **Accum-ulated amortiz-ation** | **Accum-ulated - impairment loss** | **Carry**<br>**-iyng amount** | **Acquisi-tion costs** | **Accum-ulated amortiz-ation** | **Accum-ulated - impairment loss** | **Carry**<br>**-iyng amount** |
| &nbsp;&nbsp;&nbsp;Goodwill | W | 13851 | - | (3560) | 10291 | 13851 | - | (3560) | 10291 |
| &nbsp;&nbsp;&nbsp;Development cost (\*) |  | 511614 | (404612) | (1168) | 105834 | 508344 | (343941) | (1168) | 163235 |
| &nbsp;&nbsp;&nbsp;Software (\*) |  | 165609 | (128106) | - | 37503 | 156588 | (112848) | - | 43740 |
| &nbsp;&nbsp;&nbsp;Membership |  | 9081 | - | (382) | 8699 | 8737 | - | (380) | 8357 |
| &nbsp;&nbsp;&nbsp;Others |  | 31321 | (11) | - | 31310 | 7123 | (10) | - | 7113 |
|  | W | 731476 | (532729) | (5110) | 193637 | 694643 | (456799) | (5108) | 232736 |

---

(\*) The acquisition cost of and the accumulated amortization of the development cost and software include the amount related to government subsidies.

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)**  | **Impair**<br>**-ment**<br>**loss** | **Amortiza**<br>**-tion** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Goodwill | W | 10291 | - | - | - | - | - | 10291 |
| &nbsp;&nbsp;&nbsp;Development cost |  | 163235 | 3818 | - | 1727 | - | (62946) | 105834 |
| &nbsp;&nbsp;&nbsp;Software |  | 43740 | 4181 | (7) | 5067 | - | (15478) | 37503 |
| &nbsp;&nbsp;&nbsp;Membership |  | 8357 | 345 | - | (1) | (2) | - | 8699 |
| &nbsp;&nbsp;&nbsp;Others |  | 7113 | 33683 | (958) | (8527) | - | (1) | 31310 |
|  | W | 232736 | 42027 | (965) | (1734) | (2) | (78425) | 193637 |

---

(\*) Included amounts transferred from intangible assets under development to development cost and software, and the effect of exchange rate fluctuations.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)**  | **Impair**<br>**-ment**<br>**loss** | **Amortiza**<br>**-tion** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Goodwill | W | 10291 | - | - | - | - | - | 10291 |
| &nbsp;&nbsp;&nbsp;Development cost |  | 179693 | 12544 | (234) | 33189 | (167) | (61790) | 163235 |
| &nbsp;&nbsp;&nbsp;Software |  | 41019 | 12966 | (272) | 3795 | - | (13768) | 43740 |
| &nbsp;&nbsp;&nbsp;Membership |  | 8357 | - | - | - | - | - | 8357 |
| &nbsp;&nbsp;&nbsp;Others |  | 18411 | 25703 | - | (37000) | - | (1) | 7113 |
|  | W | 257771 | 51213 | (506) | (16) | (167) | (75559) | 232736 |

---

(\*) Included amounts transferred from intangible assets under development to development cost and software, and the effect of exchange rate fluctuations.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**19. <u>Intangible assets (continued)</u>**

(c) Goodwill

*i) Composition of goodwill*

The Group's carrying amount of goodwill for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Shinhan Financial Plus Co., Ltd. | W | 10,291 | 10,291 |

---

*ii) Goodwill impairment test*

① Explanation on evaluation method

The recoverable amounts of each cash-generating unit (CGU) are evaluated based on their respective value in use.

② Projection period

The evaluation date for recoverable amount is June 30, 2025. The forecast period for assessing utility value extends 5.5 years beyond the evaluation date (from July 2025 to December 2030), with the value thereafter reflecting perpetual value.

③ Discount rates and terminal growth rate

The required rates of return expected by shareholder are applied to the discount rates. It is calculated in consideration of which comprises a risk-free interest rate, a market risk premium and systemic risk (beta factor). Discount rates and terminal growth rates applied to each CGU are as follows:

---

| | | |
|:---|:---|:---|
|  | **Discount rate (%)** | **Terminal growth rate (%)** |
| Shinhan Financial Plus Co., Ltd. | 7.6% | 1.0% |

---

④ Total recoverable amount and total carrying amount of CGUs to which goodwill has been allocated, are as follows:

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Amount** |
| &nbsp;&nbsp;Total recoverable amount | &nbsp;&nbsp;W | &nbsp;&nbsp;18908 |
| &nbsp;&nbsp;Total carrying amount (\*) |  | &nbsp;&nbsp;14879 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;4029 |

---

(\*) It is the amount reflected impairment loss incurred in the CGU.

As a result of the impairment assessment on the goodwill recognized by Shinhan Financial Plus Co., Ltd, the total carrying amount exceeds the total recoverable amount and thus no impairment loss was recognized.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**20. <u>Insured assets</u>**

Details of insurance held for cash, securities and property and equipment of the Group as of the December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount covered** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount covered** |
| **Insurance type** | **Insured assets** | **Insurance company** |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| Comprehensive insurance for financial institutions | Electronic financial transaction | Meritz Fire & Marine<br>Insurance Co., Ltd., etc. | W | 500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500 |
| Comprehensive property insurance | Comprehensive property risk Mechanical risk<br>General liability risk | Meritz Fire & Marine<br>Insurance Co., Ltd., etc. |  | 109677 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113666 |
| Comprehensive property insurance | Fire | DB Insurance Co, Ltd., etc. |  | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5725 |
| Executive Liability Insurance | Directors and officers | Meritz Fire & Marine<br>Insurance Co., Ltd. |  | 50000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50000 |
| Other insurance 1 | Personal information leakage | Meritz Fire & Marine<br>Insurance Co., Ltd., etc |  | 5000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6000 |
| Other insurance 2 | Cash, securities | Meritz Fire & Marine<br>Insurance Co., Ltd. |  | 30 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;270 |
| Other insurance 3 | Elevator accident | Samsung Fire & Marine<br>Insurance Co., Ltd. |  | 90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90 |
|  |  |  | W | 165297 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176251 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**21. <u>Investment properties</u>**

(a) Details of investment properties as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Carrying amount** | **Acquisition cost** | &nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Carrying amount** |
| &nbsp;&nbsp;Land | W | 6032 | - | 6032 | 6032 | - | 6032 |
| &nbsp;&nbsp;Buildings  |  | 10649 | (2708) | 7941 | 10649 | (2496) | 8153 |
|  | W | 16681 | (2708) | 13973 | 16681 | (2496) | 14185 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Beginning balance** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 6032 | - | 6032 |
| &nbsp;&nbsp;&nbsp;Buildings |  | 8153 | (212) | 7941 |
|  | W | 14185 | (212) | 13973 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Beginning balance** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 6032 | - | 6032 |
| &nbsp;&nbsp;&nbsp;Buildings |  | 8365 | (212) | 8153 |
|  | W | 14397 | (212) | 14185 |

---

(c) Income and expenses on investment properties

Rental income on investment properties and direct operating expenses for investment properties that generated rental income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Rental income | W | 990 | 812 |
| &nbsp;&nbsp;Operating expenses |  | 212 | 212 |

---

(d) Fair value measurement

*i) The fair value of investment properties as of December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Land  | W | 13,481 | 13,850 |
| Buildings  |  | 12,809 | 13,161 |
|  | W | 26,290 | 27,011 |

---

The fair value of an investment property is determined by the value measured by an independent assessment agency that has recently assessed a similar property in the area of the investment property being assessed, which is classified as Level 3 fair value based on inputs used in the valuation technique.

ii) Valuation techniques and inputs used in measuring the fair value of investment properties are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Valuation technique** |  | **2025** | **2024** | **Inputs** |
| Land  | &nbsp;&nbsp;&nbsp;Officially assessed land price-based approach | W | 13481 | 13850 | &nbsp;&nbsp;&nbsp;Officially assessed land price, transaction-related comparable cases  |
| Buildings  | &nbsp;&nbsp;&nbsp;Cost Approach |  | 12809 | 13161 | &nbsp;&nbsp;&nbsp;Transaction-related comparable cases |
|  |  | W | 26290 | 27011 |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives</u>**

(a) Notional amounts of outstanding derivative contracts as of December 31, 2025 and 2024 are as follows

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Currency related derivatives:** |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency futures | W | 857030 | 787438 |
| &nbsp;&nbsp;Over the counter: |  |  |  |
| Currency forward |  | 839998 | 20188 |
| **Equity related derivatives:** |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | 270976 | 156694 |
| &nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 216994 | 343508 |
| **Interest rate related derivatives:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures |  | 67565 | 68534 |
| **Other derivatives:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 9392 | 7705 |
|  |  | 2261955 | 1384067 |
| **Hedges:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value hedges:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 1037603 | 887925 |
| &nbsp;&nbsp;&nbsp;Cash flow hedges:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 2338128 | 2034281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 3677525 | 3127576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 3625708 | 2700358 |
|  |  | 10678964 | 8750140 |
|  | W | 12940919 | 10134207 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(b) Fair value

The fair values of derivatives held as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** |
| **Currency related derivatives:** |  |  |  |  |  |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward | W | 5345 | 22443 | - | 1799 |
| **Equity related derivatives:** |  |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | 309 | 12 | - | 159 |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 965 | - | 526 | - |
| **Other derivatives:** |  |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 348 | 17 | 97 | 86 |
|  |  | 6967 | 22472 | 623 | 2044 |
| **Hedges:** |  |  |  |  |  |
| &nbsp;&nbsp;Fair value hedges:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 3048 | 52669 | - | 82407 |
| &nbsp;&nbsp;Cash flow hedges:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 661 | 210611 | - | 172676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 2601 | 412716 | 2369 | 245963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 26745 | 239191 | 114530 | 53280 |
|  |  | 33055 | 915187 | 116899 | 554326 |
|  | W | 40022 | 937659 | 117522 | 556370 |

---

(c) Gains or losses related to derivatives

Gains or losses related to derivatives for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2024** |
| Gains related to derivatives  | W | 185,350 | 185,350 | 66,441 |
| Losses related to derivatives  |  | 471,242 | 471,242 | 752,884 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(d) Gains and losses on valuation of derivatives

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Profit or loss** | **Profit or loss** | **Other comprehensive income (\*1) (\*2)** |
|  |  | **Valuation gain** | **Valuation loss** | **Other comprehensive income (\*1) (\*2)** |
| &nbsp;&nbsp;**Currency related derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward | W | 11868 | 27701 | - |
| **Equity related derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | 309 | 12 | - |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 619 | 136 | - |
| **Other derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 349 | 16 | - |
|  |  | 13145 | 27865 | - |
| **Hedges:**  |  |  |  |  |
| &nbsp;&nbsp;Fair value hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 3134 | 20082 | - |
| &nbsp;&nbsp;Cash flow hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 15031 | 25424 | (77126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 27449 | 190821 | (69574) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 59 | 6703 | (267674) |
|  |  | 45673 | 243030 | (414374) |
|  | W | 58818 | 270895 | (414374) |

---

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

(\*2) Excluded the change in the accumulated other comprehensive income for the year ended December 31, 2025, amounting to W1,497 million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2025.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

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

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Profit or loss** | **Profit or loss** | **Other comprehensive income (\*1) (\*2)** |
|  |  | **Valuation gain** | **Valuation loss** | **Other comprehensive income (\*1) (\*2)** |
| &nbsp;&nbsp;**Currency related derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward | W | - | 2000 | - |
| **Equity related derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | - | 159 | - |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 64 | 1633 | - |
| **Other derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 97 | 87 | - |
|  |  | 161 | 3879 | - |
| **Hedges:**  |  |  |  |  |
| &nbsp;&nbsp;Fair value hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | - | 87711 | - |
| &nbsp;&nbsp;Cash flow hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | - | 196570 | 20961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | - | 225780 | 7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 21 | 7414 | 122904 |
|  |  | 21 | 517475 | 151443 |
|  | W | 182 | 521354 | 151443 |

---

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

(\*2) Excluded the change in the accumulated other comprehensive income for the year ended December 31, 2024, amounting to W(88,537) million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2024.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(e) Gains or losses related to hedge

*i) The amounts recognized in profit or loss due to the ineffectiveness of the hedge in fair value hedges for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** |
| **Fair value hedge** |  | **Fair value hedge designated gains or losses (hedged item)** | &nbsp;&nbsp;&nbsp;**Fair value hedge designated gains or losses (hedging instrument)** | **Ineffective portion of hedge recognized at profit or loss (\*)** |
| &nbsp;&nbsp;&nbsp;Foreign currency risk | W | (11237) | (9662) | (20899) |

---

(\*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** |
| **Fair value hedge** |  | **Fair value hedge designated gains or losses (hedge item)** | &nbsp;&nbsp;&nbsp;**Fair value hedge designated gains or losses (hedging instrument)** | **Ineffective portion of hedge recognized at profit or loss (\*)** |
| &nbsp;&nbsp;&nbsp;Foreign currency risk | W | 102006 | (105605) | (3599) |

---

(\*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(e) Gains or losses related to hedge (continued)

*ii) The amounts and the accounts affecting profit or loss and other comprehensive income due to the ineffectiveness of the hedge in cash flow hedges for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** |
| **Cash flow hedge** |  | **Hedge gains or losses for the reporting period recognized at other comprehensive income (\*1)** | &nbsp;&nbsp;&nbsp;**Ineffective portion of hedge recognized at profit or loss (\*2)** | **Amount reclassified from cash flow hedge reserves to profit or loss** |
| &nbsp;&nbsp;&nbsp;Interest rate risk | W | (267674) | (6022) | - |
| &nbsp;&nbsp;&nbsp;Foreign currency translation risk |  | (146701) | (2316) | (176270) |
| &nbsp;&nbsp;&nbsp;Discontinuation of <br>Hedging (\*3) |  | 1497 | - | 7 |
|  | &nbsp;&nbsp;W | (412878) | (8338) | (176263) |

---

(\*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.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** |
| **Cash flow hedge** |  | **Hedge gains or losses for the reporting period recognized at other comprehensive income (\*1)** | &nbsp;&nbsp;&nbsp;**Ineffective portion of hedge recognized at profit or loss (\*2)** | **Amount reclassified from cash flow hedge reserves to profit or loss** |
| &nbsp;&nbsp;&nbsp;Interest rate risk | W | 122904 | (7393) | - |
| &nbsp;&nbsp;&nbsp;Foreign currency translation risk |  | 28539 | (1934) | (461137) |
| &nbsp;&nbsp;&nbsp;Discontinuation of <br>Hedging (\*3) |  | (88537) | - | 47915 |
|  | &nbsp;&nbsp;W | 62906 | (9327) | (413222) |

---

(\*1) Amount before deduction of income tax effect as other comprehensive income in the statement of comprehensive income.

(\*2) Ineffective portion of hedge: difference of hedging gains or losses between the hedging instrument and the hedged item.

(\*3) A derivative contract to avoid the risk of cash flow changes in debt securities due to changes in interest rates, which has matured as of the end of the reporting period.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(f) Effects of hedge accounting on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated statement of changes in equity

*i) Hedging purpose and strategy*

The Group trades derivative instruments to avoid exchange risk and interest rate arising from the assets of the Group. The Group applies fair value hedge accounting using currency forward to avoid fair value changes due to exchange rate changes of foreign currency beneficiary certificates. The Group also applies cash flow hedge accounting using currency forward, currency swap and interest rate forward to avoid cash flow volatility caused by exchange rate and interest rate changes of foreign currency bonds and structured deposits, as well as bonds in Won.

*ii) Average hedge ratio*

Nominal amounts and average hedge ratios for hedging instruments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**3 years** | **After 3 years through**<br>**4 years** | **After 4 years through**<br>**5 years** | **After 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Interest rate risk  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Nominal amount of hedging instrument | W | 1064184 | 821851 | 894267 | 741241 | 52300 | 51865 | 3625708 |
| &nbsp;&nbsp;&nbsp; - Average price |  | 2.66% | 3.16% | 3.28% | 2.78% | 3.12% | 3.12% |  |
| &nbsp;&nbsp;&nbsp; - Average hedge ratio |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;Foreign currency risk(\*)  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Nominal amount of hedging instruments  | W | 1530984 | 1001516 | 1950103 | 920071 | 889076 | 761506 | 7053256 |
| &nbsp;&nbsp;&nbsp;- Average hedge ratio: |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

---

(\*) The average exchange rates for the hedging instruments are USD/KRW 1,299.36, EUR/KRW 1,488.89, GBP/KRW 1,484.00, AUD/KRW 886.93, and SEK/KRW 130.77.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**3 years** | **After 3 years through**<br>**4 years** | **After 4 years through**<br>**5 years** | **After 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Interest rate risk  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Nominal amount of hedging instrument | W | 103543 | 1064184 | 670683 | 673962 | 83822 | 104164 | 2700358 |
| &nbsp;&nbsp;&nbsp; - Average price |  | 3.20% | 2.66% | 3.24% | 3.46% | 3.28% | 3.12% |  |
| &nbsp;&nbsp;&nbsp; - Average hedge ratio |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;Foreign currency risk(\*)  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Nominal amount of hedging instruments  | W | 1394926 | 808654 | 1203322 | 1457542 | 737635 | 447703 | 6049782 |
| &nbsp;&nbsp;&nbsp;- Average hedge ratio: |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

---

(\*) The average exchange rates for the hedging instruments are USD/KRW 1,276.06, EUR/KRW 1,396.60, GBP/KRW 1,569.16, AUD/KRW 883.39, and SEK/KRW 127.57.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(f) Effects of hedge accounting on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated statement of changes in equity (continued)

*iii) The impact of hedging instruments on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated statement of changes in equity as of and for the years ended December 31, 2025 and 2024*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Fair value changes during the period** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Fair value changes during the period** |
| &nbsp;&nbsp;**Fair value hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward | &nbsp;&nbsp;W | &nbsp;&nbsp;1037603 | &nbsp;&nbsp;3048 | &nbsp;&nbsp;52669 | &nbsp;&nbsp;(9662) |
| &nbsp;&nbsp;**Cash flow hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | &nbsp;&nbsp;3625708 | &nbsp;&nbsp;26745 | &nbsp;&nbsp;239191 | &nbsp;&nbsp;(273328) |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swap |  | &nbsp;&nbsp;3677525 | &nbsp;&nbsp;2601 | &nbsp;&nbsp;412716 | &nbsp;&nbsp;(227548) |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | &nbsp;&nbsp;2338128 | &nbsp;&nbsp;661 | &nbsp;&nbsp;210611 | &nbsp;&nbsp;(85023) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Fair value changes during the period** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Fair value changes during the period** |
| &nbsp;&nbsp;**Fair value hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward | &nbsp;&nbsp;W | &nbsp;&nbsp;887925 | &nbsp;&nbsp;- | &nbsp;&nbsp;82407 | &nbsp;&nbsp;(105605) |
| &nbsp;&nbsp;**Cash flow hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | &nbsp;&nbsp;2700358 | &nbsp;&nbsp;114530 | &nbsp;&nbsp;53280 | &nbsp;&nbsp;87936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swap |  | &nbsp;&nbsp;3127576 | &nbsp;&nbsp;2369 | &nbsp;&nbsp;245963 | &nbsp;&nbsp;(214801) |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | &nbsp;&nbsp;2034281 | &nbsp;&nbsp;- | &nbsp;&nbsp;172676 | &nbsp;&nbsp;(173472) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(f) Effects of hedge accounting on the consolidated statement of financial position, the consolidated statement of comprehensive income, and the consolidated `statement of changes in equity (continued)

*iv) The impact of hedged items on the consolidated statement of financial position, the consolidated statement of comprehensive income, the consolidated statement of changes in equity as of and for the years ended December 31, 2025 and 2024*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
|  |  | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
| &nbsp;&nbsp;**Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: securities in foreign currencies | &nbsp;&nbsp;W  | &nbsp;&nbsp;1031379 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(11237) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk: bonds in won and in foreign currencies |  | &nbsp;&nbsp;488318 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(222410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: bonds and loans in foreign currencies |  | &nbsp;&nbsp;4388035 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;153355 | &nbsp;&nbsp;(67534) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
|  |  | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
| &nbsp;&nbsp;**Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: securities in foreign currencies | &nbsp;&nbsp;W  | &nbsp;&nbsp;948976 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;102006  | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk: bonds in won and in foreign currencies |  | &nbsp;&nbsp;409183 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;43768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: bonds and loans in foreign currencies |  | &nbsp;&nbsp;3698841 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;413772 | &nbsp;&nbsp;79166 |

---

(g) As of December 31, 2025, due from banks with restriction on use related to derivative transactions is W83,907 million (W74,296 as of December 31, 2024) and W28,942 million of which is deposited at Shinhan Securities Co., Ltd., a related party.

(h) As of December 31, 2025, financial assets of W1,264,644 million (W718,881 million as of December 31, 2024) are provided as collateral to financial institutions such as Samsung Futures Co., Ltd. for derivatives transactions. Of these, the collateral amount provided to the related parties, Shinhan Securities Co., Ltd. and Shinhan Bank Co., Ltd. are W30,537 and W146,627 million, respectively.

(i) As of December 31, 2025, the quantified effect of the mitigation of credit risk related to derivative assets, resulting from collateral held such as securities, amounts to W21,640 million (W81,381 million as of December 31, 2024).

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**23. <u>Other assets</u>**

Other assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Prepaid expense | W | 130,950 | 122,025 |
| Prepayments |  | 1,332 | 73 |
| Others  |  | 365 | 353 |
|  | W | 132,647 | 122,451 |

---

**24. <u>Pledged Assets</u>**

The assets pledged as collateral as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2024** | **Reason for collateral** |
| &nbsp;&nbsp;Securities at fair value through profit or loss | W | 170521 | 101197 | &nbsp;&nbsp;Variable insurance funds substitute securities transactions |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 1152880 | 512157 | &nbsp;&nbsp;Derivatives, compensation joint fund, coinsurance |
| Securities at amortized cost |  | 183450 | 105527 | &nbsp;&nbsp;&nbsp;Derivatives |
| Investment property  |  | 376 | 376 | Collateral mortgage |
| Time Deposits |  | 2010 | 2061 | Pledge assets |
|  | W | 1509237 | 721318 |  |

---

**25. <u>Insurance contract liabilities</u>**

(a) The carrying amounts of insurance contract liabilities as of December 31, 2025 and 2024, are as follows:

*i) By insurance product*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Life | W | 17,898,335 | 17,613,660 |
| Health |  | 4,954,917 | 5,411,290 |
| Annuity & savings |  | 19,245,300 | 20,425,184 |
| Variable |  | 5,814,382 | 4,970,854 |
|  | W | 47,912,934 | 48,420,988 |

---

*ii) By type of insurance contract*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Participating | W | 5,089,929 | 5,318,700 |
| Non-participating |  | 37,008,623 | 38,131,434 |
| Variable |  | 5,814,382 | 4,970,854 |
|  | W | 47,912,934 | 48,420,988 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **General measurement model** | **General measurement model** | **General measurement model** | **Variable fee approach** | **Variable fee approach** | **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** | **Premium allocation approach** |
| **Non-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating life | W | 711307 | 9044 | 46786 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 9660088 | 527280 | 2480856 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating health |  | 33519 | 590 | 4290 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating health |  | 598123 | 603402 | 3095108 | - | - | - | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 1226299 | 3122 | 86 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 1034861 | 833 | 63 | - | - | - | 801 |
| &nbsp;&nbsp;&nbsp;**Indirect-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 3337719 | 105403 | 531706 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable life |  | 1067440 | 55890 | 90018 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 2748281 | 6317 | 79703 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 11039593 | 44773 | 961124 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  | 1330933 | 4606 | 131956 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**Direct-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable annuity & savings |  | - | - | - | 4383410 | 21518 | 133201 | - |
| &nbsp;&nbsp;&nbsp;**Subtotal** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating |  | 4719406 | 19073 | 130865 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | 27001317 | 1286297 | 7200813 | - | - | - | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | 1067440 | 55890 | 90018 | 4383410 | 21518 | 133201 | - |
|  | W | 32788163 | 1361260 | 7421696 | 4383410 | 21518 | 133201 | 876 |

---

(\*) The above table resents the liabilities for remaining coverage, where

1) Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2) Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3) Direct-par: Groups of insurance contracts with direct participation features.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **General measurement model** | **General measurement model** | **General measurement model** | **Variable fee approach** | **Variable fee approach** | **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** | **Premium allocation approach** |
| **Non-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating life | W | 745498 | 9632 | 37819 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 9422649 | 517744 | 2397806 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating health |  | 41039 | 662 | 2939 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating health |  | 1140636 | 558115 | 3004689 | - | - | - | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 1283222 | 4022 | 91 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 833532 | 359 | 70 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**Indirect-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 3332895 | 116290 | 551776 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable life |  | 789150 | 56804 | 87522 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 2888543 | 6661 | 77684 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 12361824 | 40368 | 891849 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  | 1299061 | 2990 | 126162 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**Direct-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable annuity & savings |  | - | - | - | 3908127 | 19038 | 48386 | - |
| **Subtotal** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating |  | 4958302 | 20977 | 118533 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | 28390597 | 1235866 | 6972352 | - | - | - | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | 789150 | 56804 | 87522 | 3908127 | 19038 | 48386 | - |
|  | W | 34138049 | 1313647 | 7178407 | 3908127 | 19038 | 48386 | 171 |

---

(\*) The above table resents the liabilities for remaining coverage, where

1) Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2) Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3) Direct-par: Groups of insurance contracts with direct participation features.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**25. <u>Insurance contract liabilities (continued)</u>**

(c) As of December 31, 2025, and December 31, 2024, the Group applied the following assumptions for estimating future cash flows for the contracts held, along with the basis for their determination.

---

| | | | |
|:---|:---|:---|:---|
| **Classification** | **2025** | **2024** | **Assumptions and measurement basis** |
| &nbsp;&nbsp;Lapse ratio | 0% ~ 66.77% | 0% ~ 69.75% | &nbsp;&nbsp;&nbsp;- The ratio of lapsed contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-lapse-value insurance products), and duration.<br>- For zero/low-lapse-value insurance products, the lapse ratio for the period when there is insufficient experience statistics is calculated, using the log-linear regression model, so that it converges to 0.1% at the time of completion of premium payments |
| &nbsp;&nbsp;Loss ratio | 3.16% ~ 1,787.70% | 8% ~ 316% | &nbsp;&nbsp;&nbsp;- 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>- General mortality: the ratio of actual mortality rate to expected mortality rate by risk coverage and elapsed period based on the last five years' experience statistics  |
| Operating expense ratio | - | - | &nbsp;&nbsp;&nbsp;- Calculate unit costs such as performance, agent commissions, number of new/retained contracts, initial/continuing premiums, reserve funds, etc. based on a business plan (budget) incorporating future expense policies based on recent experience statistics |
| Discount rate | 2.79% ~ 4.59% | 2.31% ~ 4.55% | &nbsp;&nbsp;&nbsp;- 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% | &nbsp;&nbsp;&nbsp;- The risk adjustment is calculated as the portion of 75th percentile exceeding the probability-weighted average of the present value of future cash flows, assuming that the probability distribution of the present value of future cash flows follows a normal distribution at each reporting date. |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 11648 | 11712 | 11728 | 11723 | 11693 | 11633 | 11546 | 11421 | 11256 | 11040 | 50785 | 41996 | 33709 | 26849 | 53892 | 187936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 32757 | 33568 | 34351 | 35089 | 35750 | 36351 | 36879 | 37304 | 37609 | 37793 | 188152 | 178947 | 160757 | 134205 | 231427 | 686650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 35.56% | 34.89% | 34.14% | 33.41% | 32.71% | 32.00% | 31.31% | 30.62% | 29.93% | 29.21% | 26.99% | 23.47% | 20.97% | 20.01% | 23.29% | 27.37% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 493789 | 499149 | 502700 | 506152 | 507814 | 507318 | 506508 | 505064 | 505101 | 503796 | 2488659 | 2367449 | 2107041 | 1726616 | 6264192 | 9723857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 572930 | 572032 | 567986 | 569379 | 568209 | 569984 | 575634 | 580151 | 587183 | 592430 | 3022601 | 3062465 | 2987067 | 2754610 | 11852823 | 12868423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 86.19% | 87.26% | 88.51% | 88.90% | 89.37% | 89.01% | 87.99% | 87.06% | 86.02% | 85.04% | 82.34% | 77.31% | 70.54% | 62.68% | 52.85% | 75.56% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 2017 | 1981 | 1785 | 1691 | 1624 | 1546 | 1459 | 1375 | 1302 | 1218 | 4916 | 3246 | 2086 | 1372 | 4257 | 20743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 2868 | 2857 | 2638 | 2549 | 2489 | 2414 | 2320 | 2232 | 2154 | 2060 | 8828 | 6515 | 4698 | 3371 | 7844 | 34945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 70.33% | 69.34% | 67.66% | 66.34% | 65.24% | 64.06% | 62.88% | 61.62% | 60.45% | 59.12% | 55.68% | 49.83% | 44.41% | 40.71% | 54.28% | 59.36% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 765312 | 744833 | 721778 | 707643 | 701354 | 691310 | 682296 | 679945 | 682760 | 686335 | 3527142 | 3712303 | 3701653 | 3603023 | 16702778 | 16158101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 756658 | 743657 | 718165 | 702482 | 692890 | 683450 | 673566 | 675925 | 675399 | 676499 | 3439614 | 3443963 | 3372264 | 3242106 | 14695580 | 15311939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 101.14% | 100.16% | 100.50% | 100.73% | 101.22% | 101.15% | 101.30% | 100.59% | 101.09% | 101.45% | 102.54% | 107.79% | 109.77% | 111.13% | 113.66% | 105.53% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 840 | 731 | 628 | 541 | 466 | 413 | 381 | 358 | 339 | 334 | 1819 | 2500 | 3623 | 4961 | 30464 | 16541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 2350 | 2134 | 1921 | 1742 | 1588 | 1474 | 1428 | 1410 | 1406 | 1438 | 8313 | 11283 | 15118 | 19043 | 76899 | 56663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 35.73% | 34.24% | 32.69% | 31.08% | 29.35% | 28.04% | 26.67% | 25.40% | 24.09% | 23.24% | 21.88% | 22.15% | 23.97% | 26.05% | 39.62% | 29.19% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 169 | 152 | 87 | 58 | 20 | 13 | 13 | 12 | 11 | 10 | 48 | 46 | 48 | 53 | 194 | 640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 364 | 297 | 164 | 111 | 60 | 50 | 49 | 48 | 46 | 46 | 223 | 208 | 191 | 169 | 455 | 1623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 46.49% | 51.24% | 52.90% | 52.27% | 32.74% | 26.71% | 25.57% | 24.12% | 23.34% | 22.61% | 21.43% | 22.00% | 25.35% | 31.26% | 42.68% | 39.43% |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 137679 | 138980 | 139905 | 141197 | 140579 | 140663 | 141528 | 140624 | 140168 | 140043 | 695006 | 680035 | 653572 | 605557 | 2327859 | 2927369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 133166 | 134460 | 134716 | 135290 | 136967 | 139152 | 141210 | 143518 | 146018 | 147602 | 774557 | 808518 | 813594 | 769494 | 2840238 | 3273610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 103.39% | 103.36% | 103.85% | 104.37% | 102.64% | 101.09% | 100.22% | 97.98% | 95.99% | 94.88% | 89.73% | 84.11% | 80.33% | 78.70% | 81.96% | 89.42% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 57354 | 56517 | 55523 | 54865 | 54211 | 53873 | 53386 | 52751 | 52757 | 52875 | 265396 | 271126 | 276720 | 269946 | 918408 | 1176457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 65216 | 64661 | 63631 | 63166 | 63273 | 63665 | 64017 | 64518 | 65349 | 66220 | 346778 | 376553 | 397115 | 381683 | 906076 | 1469065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 87.94% | 87.41% | 87.26% | 86.86% | 85.68% | 84.62% | 83.39% | 81.76% | 80.73% | 79.85% | 76.53% | 72.00% | 69.68% | 70.73% | 101.36% | 80.08% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 425 | 395 | 373 | 352 | 332 | 311 | 290 | 271 | 257 | 242 | 1002 | 657 | 352 | 180 | 368 | 4042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1045 | 924 | 849 | 764 | 678 | 598 | 529 | 465 | 418 | 378 | 1400 | 955 | 594 | 359 | 689 | 7709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 40.70% | 42.79% | 43.92% | 46.07% | 48.90% | 52.03% | 54.94% | 58.34% | 61.44% | 63.89% | 71.62% | 68.84% | 59.22% | 50.30% | 53.36% | 52.44% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 5782 | 5541 | 5238 | 5021 | 4831 | 4538 | 4281 | 3964 | 3784 | 3596 | 15225 | 11196 | 7710 | 4315 | 3116 | 60717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 7930 | 7437 | 6957 | 6559 | 6215 | 5890 | 5501 | 5064 | 4800 | 4562 | 19251 | 13943 | 9883 | 6014 | 5663 | 79453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 72.92% | 74.50% | 75.29% | 76.56% | 77.73% | 77.04% | 77.82% | 78.28% | 78.83% | 78.83% | 79.08% | 80.30% | 78.02% | 71.76% | 55.03% | 76.42% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 889 | 854 | 820 | 779 | 737 | 699 | 662 | 612 | 566 | 530 | 2174 | 1476 | 941 | 514 | 331 | 8900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1043 | 997 | 957 | 903 | 855 | 817 | 771 | 694 | 643 | 599 | 2477 | 1680 | 1071 | 588 | 381 | 10296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 85.21% | 85.63% | 85.69% | 86.28% | 86.14% | 85.58% | 85.91% | 88.19% | 88.07% | 88.46% | 87.78% | 87.88% | 87.86% | 87.32% | 86.91% | 86.45% |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 7977 | 7266 | 6652 | 6147 | 5686 | 5247 | 4824 | 4384 | 3953 | 3582 | 13568 | 8007 | 4423 | 2224 | 3083 | 63975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 8725 | 8002 | 7323 | 6760 | 6243 | 5752 | 5267 | 4826 | 4426 | 4066 | 15830 | 10440 | 7030 | 4762 | 11261 | 75527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 91.42% | 90.81% | 90.83% | 90.93% | 91.07% | 91.23% | 91.60% | 90.84% | 89.32% | 88.08% | 85.71% | 76.70% | 62.92% | 46.69% | 27.38% | 84.71% |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 1483881 | 1468112 | 1447217 | 1436170 | 1429347 | 1417565 | 1407174 | 1400781 | 1402253 | 1403600 | 7065742 | 7100039 | 6791879 | 6245612 | 26308942 | 30349280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1585053 | 1571025 | 1539658 | 1524792 | 1515218 | 1509597 | 1507172 | 1516155 | 1525450 | 1533692 | 7828024 | 7915469 | 7769383 | 7316405 | 30629334 | 33875902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 93.62% | 93.45% | 94.00% | 94.19% | 94.33% | 93.90% | 93.37% | 92.39% | 91.92% | 91.52% | 90.26% | 89.70% | 87.42% | 85.36% | 85.89% | 89.59% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

(\*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 11728 | 11909 | 12079 | 12236 | 12374 | 12481 | 12563 | 12619 | 12629 | 12591 | 60612 | 53866 | 46237 | 40605 | 96060 | 236748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 32295 | 33397 | 34598 | 35778 | 36938 | 38039 | 39111 | 40124 | 41027 | 41820 | 216897 | 219831 | 210573 | 187071 | 372699 | 852625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 481738 | 481227 | 483311 | 483429 | 483296 | 484440 | 485622 | 486076 | 486792 | 487400 | 2439243 | 2353694 | 2140987 | 1773932 | 5446566 | 9892855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 553429 | 557185 | 557104 | 555763 | 560146 | 562067 | 566604 | 574630 | 581337 | 589885 | 3048605 | 3152033 | 3129258 | 2889024 | 9718037 | 13360811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 2208 | 2083 | 2043 | 1843 | 1746 | 1677 | 1597 | 1508 | 1423 | 1348 | 5485 | 3667 | 2350 | 1510 | 4482 | 23521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 3013 | 2881 | 2867 | 2651 | 2557 | 2495 | 2419 | 2326 | 2237 | 2158 | 9333 | 6933 | 4992 | 3532 | 8108 | 37914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 631453 | 616108 | 599988 | 592367 | 589999 | 590001 | 586123 | 584930 | 590297 | 597004 | 3059846 | 3202230 | 3196124 | 3105639 | 14873727 | 14556485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 652227 | 634482 | 614584 | 599689 | 591661 | 586516 | 579600 | 576028 | 581959 | 580852 | 2945773 | 2992861 | 3063436 | 2952901 | 12889375 | 13989143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 963 | 835 | 721 | 614 | 521 | 441 | 384 | 348 | 322 | 299 | 1539 | 2082 | 3079 | 4450 | 31390 | 16897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 2567 | 2346 | 2137 | 1926 | 1746 | 1586 | 1466 | 1414 | 1392 | 1384 | 7731 | 10375 | 13936 | 17699 | 77819 | 58410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 138 | 139 | 108 | 60 | 46 | 15 | 14 | 13 | 12 | 12 | 54 | 53 | 59 | 67 | 278 | 694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 291 | 270 | 197 | 100 | 90 | 53 | 51 | 51 | 50 | 48 | 240 | 232 | 223 | 207 | 635 | 1716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 47.46% | 51.43% | 54.71% | 59.60% | 50.87% | 28.29% | 27.28% | 26.19% | 24.81% | 24.06% | 22.63% | 22.89% | 26.29% | 32.62% | 43.79% | 40.43% |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 133459 | 136517 | 137827 | 138106 | 139295 | 138998 | 139584 | 141183 | 140611 | 140429 | 704374 | 689595 | 657398 | 606310 | 2232023 | 3043396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 129015 | 129635 | 130579 | 131034 | 132275 | 133205 | 134789 | 137133 | 138508 | 140416 | 732659 | 774047 | 793446 | 768261 | 2746956 | 3322462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 57236 | 56123 | 55291 | 54464 | 54002 | 53584 | 53407 | 53179 | 52880 | 53255 | 273842 | 291303 | 309503 | 315823 | 1279070 | 1350287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 65830 | 65290 | 64717 | 63994 | 63760 | 63882 | 64406 | 65042 | 65765 | 67008 | 354677 | 384462 | 391274 | 350069 | 772704 | 1507775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 432 | 404 | 384 | 363 | 343 | 325 | 306 | 286 | 267 | 252 | 1058 | 721 | 391 | 186 | 359 | 4355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1067 | 945 | 871 | 793 | 707 | 626 | 558 | 493 | 432 | 384 | 1387 | 880 | 504 | 237 | 387 | 7890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 5986 | 5618 | 5365 | 5061 | 4813 | 4604 | 4384 | 4128 | 3815 | 3635 | 15490 | 11425 | 8029 | 4743 | 3736 | 64293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 8324 | 7766 | 7306 | 6832 | 6430 | 6081 | 5762 | 5386 | 4964 | 4699 | 19904 | 14346 | 10232 | 6384 | 6107 | 85471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 886 | 841 | 804 | 769 | 727 | 682 | 642 | 601 | 546 | 497 | 1962 | 1231 | 732 | 377 | 234 | 8600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1106 | 1048 | 1002 | 956 | 898 | 844 | 794 | 741 | 654 | 593 | 2339 | 1456 | 861 | 444 | 271 | 10531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 8045 | 7272 | 6557 | 5945 | 5438 | 4988 | 4560 | 4162 | 3755 | 3351 | 12496 | 7352 | 4077 | 2033 | 2416 | 62919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 9324 | 8484 | 7700 | 6991 | 6379 | 5829 | 5306 | 4800 | 4346 | 3944 | 15041 | 9480 | 6044 | 3795 | 8260 | 76773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 1334272 | 1319076 | 1304478 | 1295257 | 1292600 | 1292236 | 1289186 | 1289033 | 1293349 | 1300073 | 6576001 | 6617219 | 6368966 | 5855675 | 23970341 | 29261050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1458488 | 1443729 | 1423662 | 1406507 | 1403587 | 1401223 | 1400866 | 1408168 | 1422671 | 1433191 | 7354586 | 7566936 | 7624779 | 7179624 | 26601358 | 33311521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 91.48% | 91.37% | 91.63% | 92.09% | 92.09% | 92.22% | 92.03% | 91.54% | 90.91% | 90.71% | 89.41% | 87.45% | 83.53% | 81.56% | 90.11% | 87.84% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

(\*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**25. <u>Insurance contract liabilities (continued)</u>**

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

Ratio of expected claims to actual claims for the years ended December 31, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Expected loss ratio (A) | &nbsp;&nbsp;&nbsp;93.12% | &nbsp;&nbsp;&nbsp;93.11% |
| &nbsp;&nbsp;&nbsp;Actual loss ratio (B) | &nbsp;&nbsp;&nbsp;99.39% | &nbsp;&nbsp;&nbsp;96.26% |
| &nbsp;&nbsp;&nbsp;Ratio of expected claims to actual claims (C=A-B) (%p) | &nbsp;&nbsp;&nbsp;(6.27)% | &nbsp;&nbsp;&nbsp;(3.15)% |

---

(\*1) Prepared for the underlying insurance contracts

(\*2) Expected loss ratio (A) = expected claims for the year divided by actual risk premiums for the year

(\*3) Actual loss ratio (B) = the sum of incurred claims for the year and incurred claims adjustments for the year, which is then divided by actual risk premium

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,565 | 2550 | 2091 | 2073 | 2054 | 2035 | 2016 | 1995 | 1972 | 1949 | 9352 | 8681 | 8028 | 7285 | 17093 | 38705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 3021 | 2659 | 2352 | 2088 | 1869 | 1686 | 1536 | 1410 | 1302 | 1213 | 5055 | 3814 | 2823 | 2003 | 2781 | 24416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 84.92% | 95.92% | 88.88% | 99.29% | 109.94% | 120.75% | 131.20% | 141.45% | 151.43% | 160.64% | 185.00% | 227.61% | 284.38% | 363.75% | 614.68% | 158.52% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 107,357 | 106785 | 90677 | 87629 | 84541 | 80409 | 78019 | 76390 | 75133 | 73816 | 358265 | 343714 | 324008 | 301263 | 1243491 | 1633663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 286195 | 257592 | 239733 | 239453 | 230100 | 223832 | 196990 | 178895 | 173064 | 171681 | 723817 | 567415 | 470063 | 358191 | 862562 | 3149917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 37.51% | 41.45% | 37.82% | 36.60% | 36.74% | 35.92% | 39.61% | 42.70% | 43.41% | 43.00% | 49.50% | 60.58% | 68.93% | 84.11% | 144.16% | 51.86% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 239 | 233 | 198 | 191 | 186 | 182 | 177 | 173 | 169 | 166 | 781 | 710 | 640 | 562 | 1280 | 3277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 89 | 84 | 74 | 68 | 64 | 60 | 56 | 53 | 50 | 46 | 194 | 143 | 105 | 76 | 125 | 853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 268.31% | 278.40% | 269.51% | 280.52% | 291.91% | 303.71% | 315.64% | 328.99% | 342.01% | 357.22% | 402.13% | 495.24% | 607.05% | 740.74% | 1022.52% | 384.35% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 136,029 | 126785 | 114291 | 109154 | 105137 | 101488 | 98108 | 95905 | 94249 | 92655 | 443967 | 405875 | 372022 | 339644 | 1428292 | 1962821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 504766 | 445973 | 398714 | 365976 | 341360 | 321819 | 304410 | 290828 | 279232 | 270295 | 1256777 | 961778 | 764885 | 688935 | 2092653 | 5331756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 26.95% | 28.43% | 28.67% | 29.83% | 30.80% | 31.54% | 32.23% | 32.98% | 33.75% | 34.28% | 35.33% | 42.20% | 48.64% | 49.30% | 68.25% | 36.81% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,127 | 1120 | 821 | 814 | 807 | 799 | 792 | 785 | 778 | 770 | 3731 | 3524 | 3295 | 3009 | 8015 | 15899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 34 | 30 | 27 | 24 | 22 | 21 | 21 | 20 | 20 | 20 | 96 | 91 | 85 | 75 | 160 | 416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 3323.19% | 3774.85% | 3087.74% | 3353.30% | 3597.87% | 3767.94% | 3820.86% | 3868.53% | 3893.30% | 3905.21% | 3880.48% | 3852.79% | 3885.16% | 4003.07% | 4994.90% | 3824.50% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,684 | 1300 | 437 | 201 | 33 | 7 | 7 | 7 | 6 | 6 | 28 | 24 | 21 | 18 | 44 | 3598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 3092 | 2336 | 1146 | 504 | 76 | 12 | 12 | 11 | 10 | 10 | 42 | 32 | 25 | 18 | 33 | 6971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 54.47% | 55.66% | 38.10% | 39.92% | 43.04% | 57.50% | 58.58% | 59.55% | 60.47% | 61.73% | 65.85% | 73.52% | 84.16% | 98.00% | 136.29% | 51.61% |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 24,675 | 24154 | 20437 | 19950 | 19508 | 19177 | 18943 | 18628 | 18307 | 17947 | 86073 | 80599 | 74626 | 67634 | 243939 | 374273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 74076 | 66309 | 59547 | 52995 | 47349 | 42912 | 39514 | 36293 | 33062 | 29335 | 122730 | 96262 | 76997 | 60831 | 148282 | 632912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 33.31% | 36.43% | 34.32% | 37.65% | 41.20% | 44.69% | 47.94% | 51.33% | 55.37% | 61.18% | 70.13% | 83.73% | 96.92% | 111.18% | 164.51% | 59.14% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 13,693 | 13313 | 12628 | 12311 | 12052 | 11802 | 11563 | 11353 | 11165 | 10976 | 52262 | 47565 | 41668 | 34918 | 103821 | 210787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 39971 | 35932 | 32012 | 28653 | 25799 | 23238 | 20918 | 19229 | 17891 | 16589 | 68630 | 55300 | 46485 | 36797 | 70953 | 346911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 34.26% | 37.05% | 39.45% | 42.97% | 46.72% | 50.79% | 55.28% | 59.04% | 62.41% | 66.16% | 76.15% | 86.01% | 89.64% | 94.89% | 146.32% | 60.76% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 4,121 | 3925 | 2760 | 2647 | 2538 | 2429 | 2327 | 2235 | 2145 | 2060 | 9296 | 7998 | 7091 | 6456 | 25081 | 43994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2734 | 2311 | 2044 | 1838 | 1660 | 1484 | 1356 | 1249 | 1161 | 1086 | 4495 | 3425 | 2775 | 2368 | 5761 | 22706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 150.72% | 169.87% | 135.04% | 144.00% | 152.91% | 163.69% | 171.65% | 178.92% | 184.76% | 189.66% | 206.82% | 233.52% | 255.51% | 272.63% | 435.40% | 193.76% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 23,389 | 21331 | 14610 | 13568 | 12594 | 11675 | 10907 | 10247 | 9712 | 9139 | 39178 | 30983 | 24838 | 20057 | 60950 | 190804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 22545 | 19350 | 17028 | 14975 | 13244 | 11733 | 10494 | 9446 | 8634 | 7616 | 28464 | 18924 | 12756 | 8810 | 18779 | 158304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 103.74% | 110.24% | 85.80% | 90.61% | 95.09% | 99.50% | 103.93% | 108.48% | 112.48% | 120.00% | 137.64% | 163.72% | 194.72% | 227.67% | 324.57% | 120.53% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,126 | 1965 | 1361 | 1268 | 1187 | 1117 | 1041 | 917 | 856 | 805 | 3390 | 2575 | 2104 | 1832 | 7350 | 17519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2072 | 1859 | 1677 | 1529 | 1394 | 1279 | 1146 | 895 | 803 | 732 | 2768 | 1629 | 961 | 585 | 928 | 15072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 102.63% | 105.67% | 81.17% | 82.96% | 85.13% | 87.31% | 90.77% | 102.52% | 106.71% | 109.91% | 122.50% | 158.10% | 218.80% | 313.11% | 791.76% | 116.24% |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 17,662 | 15523 | 13562 | 11964 | 10637 | 9438 | 8374 | 7484 | 6676 | 5945 | 21894 | 14076 | 9960 | 7717 | 26010 | 127057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 12836 | 10644 | 8832 | 7467 | 6205 | 5521 | 4761 | 4158 | 3607 | 3113 | 10963 | 6261 | 3680 | 2219 | 3982 | 72601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 137.60% | 145.84% | 153.56% | 160.22% | 171.44% | 170.94% | 175.86% | 179.98% | 185.07% | 191.00% | 199.70% | 224.80% | 270.67% | 347.72% | 653.21% | 175.01% |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 334,668 | 318984 | 273873 | 261770 | 251273 | 240558 | 232274 | 226117 | 221169 | 216232 | 1028215 | 946323 | 868299 | 790395 | 3165366 | 4622399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 951431 | 845078 | 763185 | 715570 | 669140 | 633597 | 581215 | 542488 | 518835 | 501736 | 2224031 | 1715076 | 1381640 | 1160908 | 3206999 | 9762835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 35.18% | 37.75% | 35.89% | 36.58% | 37.55% | 37.97% | 39.96% | 41.68% | 42.63% | 43.10% | 46.23% | 55.18% | 62.85% | 68.08% | 98.70% | 47.35% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,593 | 2598 | 2606 | 2182 | 2185 | 2187 | 2188 | 2189 | 2188 | 2185 | 10830 | 10577 | 10276 | 9814 | 26170 | 48164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 3194 | 2834 | 2545 | 2302 | 2093 | 1921 | 1778 | 1662 | 1563 | 1479 | 6479 | 5310 | 4251 | 3230 | 5098 | 30590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 99,157 | 96733 | 95975 | 82243 | 78920 | 76529 | 73761 | 71871 | 70897 | 69843 | 338515 | 325125 | 310542 | 289371 | 1159671 | 1614589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 271301 | 238751 | 215722 | 201990 | 203765 | 196666 | 198271 | 176980 | 163690 | 159454 | 715798 | 551427 | 439766 | 331316 | 741999 | 3048121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 265 | 247 | 241 | 207 | 199 | 194 | 189 | 185 | 181 | 177 | 831 | 753 | 677 | 595 | 1388 | 3677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 96 | 86 | 81 | 72 | 67 | 63 | 59 | 56 | 52 | 49 | 205 | 151 | 111 | 80 | 134 | 933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 121,376 | 111917 | 106043 | 97038 | 93782 | 91061 | 88563 | 86451 | 85174 | 83973 | 401743 | 364965 | 333265 | 305561 | 1312992 | 1842037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 399615 | 349687 | 319093 | 296060 | 278516 | 263746 | 252101 | 242282 | 234304 | 226055 | 1058447 | 839913 | 668266 | 621372 | 1957464 | 4642032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,145 | 1142 | 1138 | 846 | 840 | 833 | 826 | 819 | 812 | 804 | 3910 | 3732 | 3534 | 3342 | 9996 | 18043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 35 | 31 | 28 | 25 | 23 | 22 | 21 | 20 | 20 | 20 | 97 | 93 | 86 | 77 | 175 | 445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,353 | 1142 | 766 | 219 | 140 | 8 | 8 | 7 | 7 | 7 | 32 | 28 | 25 | 23 | 63 | 3554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2393 | 2026 | 1319 | 546 | 339 | 13 | 13 | 12 | 11 | 11 | 47 | 38 | 30 | 23 | 47 | 6434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 56.55% | 56.38% | 58.05% | 40.18% | 41.17% | 59.73% | 60.46% | 61.59% | 62.57% | 63.42% | 67.42% | 74.82% | 84.70% | 97.84% | 134.51% | 55.23% |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

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

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 25,346 | 24541 | 24096 | 20840 | 20395 | 19995 | 19687 | 19462 | 19149 | 18834 | 90199 | 84615 | 78046 | 70328 | 246430 | 407740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 80239 | 71207 | 64144 | 57983 | 51739 | 46606 | 42400 | 39049 | 35912 | 32652 | 130440 | 101201 | 82707 | 64577 | 153649 | 701416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 13,875 | 13382 | 13034 | 12378 | 12082 | 11788 | 11562 | 11313 | 11056 | 10818 | 51014 | 45874 | 39943 | 33625 | 95028 | 217429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 44300 | 39482 | 35469 | 31577 | 28246 | 25431 | 22924 | 20587 | 18911 | 17587 | 71868 | 56508 | 47752 | 38394 | 72450 | 384945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 4,334 | 4150 | 3974 | 2861 | 2755 | 2656 | 2563 | 2468 | 2379 | 2291 | 10423 | 9069 | 8087 | 7375 | 30404 | 51652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2534 | 2236 | 1991 | 1794 | 1641 | 1507 | 1385 | 1290 | 1209 | 1143 | 4834 | 3716 | 2985 | 2521 | 6299 | 23869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 25,335 | 22122 | 20079 | 13946 | 12871 | 11873 | 11017 | 10275 | 9611 | 9037 | 38317 | 29296 | 22984 | 18327 | 55768 | 201300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 25101 | 19434 | 16474 | 14370 | 12462 | 10907 | 9659 | 8593 | 7666 | 6931 | 26339 | 16897 | 11261 | 7652 | 14682 | 155530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,256 | 2087 | 1940 | 1374 | 1279 | 1194 | 1121 | 1039 | 906 | 839 | 3464 | 2555 | 2047 | 1770 | 7074 | 19240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2153 | 1934 | 1747 | 1575 | 1428 | 1303 | 1191 | 1056 | 797 | 703 | 2599 | 1458 | 829 | 505 | 899 | 15573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 18,234 | 16000 | 13939 | 12099 | 10637 | 9346 | 8231 | 7205 | 6339 | 5565 | 19901 | 12206 | 8447 | 6508 | 21896 | 126478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 12141 | 10221 | 8362 | 6955 | 5901 | 4846 | 4327 | 3692 | 3193 | 2734 | 9385 | 5153 | 2974 | 1776 | 3217 | 67648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 315,269 | 296061 | 283831 | 246233 | 236085 | 227664 | 219716 | 213284 | 208699 | 204373 | 969179 | 888795 | 817873 | 746639 | 2966880 | 4553903 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 843102 | 737929 | 666975 | 615249 | 586220 | 553031 | 534129 | 495279 | 467328 | 448818 | 2026538 | 1581865 | 1261018 | 1071523 | 2956113 | 9077536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 37.39% | 40.12% | 42.56% | 40.02% | 40.27% | 41.17% | 41.14% | 43.06% | 44.66% | 45.54% | 47.82% | 56.19% | 64.86% | 69.68% | 100.36% | 50.17% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied:

*i) Participating insurance contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5011424 | &nbsp;&nbsp;&nbsp;86389 | &nbsp;&nbsp;&nbsp;220887 | &nbsp;&nbsp;&nbsp;5318700 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(92) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(92) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(51571) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(51571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(250) |
|  |  | &nbsp;&nbsp;&nbsp;(51913) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(51913) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;33715 | &nbsp;&nbsp;&nbsp;33715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(651) | &nbsp;&nbsp;&nbsp;(651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(19629) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(19629) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;170 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;182 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(359) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(359) |
|  |  | &nbsp;&nbsp;&nbsp;352 | &nbsp;&nbsp;&nbsp;(19988) | &nbsp;&nbsp;&nbsp;33064 | &nbsp;&nbsp;&nbsp;13428 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(194236) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;194236 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;158904 | &nbsp;&nbsp;&nbsp;2507 | &nbsp;&nbsp;&nbsp;12080 | &nbsp;&nbsp;&nbsp;173491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;(172593) | &nbsp;&nbsp;&nbsp;(2103) | &nbsp;&nbsp;&nbsp;(49) | &nbsp;&nbsp;&nbsp;(174745) |
|  |  | &nbsp;&nbsp;&nbsp;(13689) | &nbsp;&nbsp;&nbsp;404 | &nbsp;&nbsp;&nbsp;12031 | &nbsp;&nbsp;&nbsp;(1254) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;52142 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;52142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(1266) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(211) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(31587) | &nbsp;&nbsp;&nbsp;(31798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(208048) | &nbsp;&nbsp;&nbsp;(208048) |
|  |  | &nbsp;&nbsp;&nbsp;50665 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(239635) | &nbsp;&nbsp;&nbsp;(188970) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;(58) | &nbsp;&nbsp;&nbsp;(4) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(62) |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4802545 | &nbsp;&nbsp;&nbsp;66801 | &nbsp;&nbsp;&nbsp;220583 | &nbsp;&nbsp;&nbsp;5089929 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*i) Participating insurance contracts (continued)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4662767 | &nbsp;&nbsp;&nbsp;20454 | &nbsp;&nbsp;&nbsp;226380 | &nbsp;&nbsp;&nbsp;4909601 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(91) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(91) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(48424) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(48424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;755 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;755 |
|  |  | &nbsp;&nbsp;&nbsp;(47760) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(47760) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;31736 | &nbsp;&nbsp;&nbsp;31736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1285) | &nbsp;&nbsp;&nbsp;(1285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;64528 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;64528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;120 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;2 | &nbsp;&nbsp;&nbsp;(50) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(48) |
|  |  | &nbsp;&nbsp;&nbsp;139 | &nbsp;&nbsp;&nbsp;64478 | &nbsp;&nbsp;&nbsp;30451 | &nbsp;&nbsp;&nbsp;95068 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(184709) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;184709 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;151824 | &nbsp;&nbsp;&nbsp;549 | &nbsp;&nbsp;&nbsp;11108 | &nbsp;&nbsp;&nbsp;163481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;372888 | &nbsp;&nbsp;&nbsp;912 | &nbsp;&nbsp;&nbsp;196 | &nbsp;&nbsp;&nbsp;373996 |
|  |  | &nbsp;&nbsp;&nbsp;524712 | &nbsp;&nbsp;&nbsp;1461 | &nbsp;&nbsp;&nbsp;11304 | &nbsp;&nbsp;&nbsp;537477 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;57374 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;57374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(925) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(178) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(29542) | &nbsp;&nbsp;&nbsp;(29720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(202415) | &nbsp;&nbsp;&nbsp;(202415) |
|  |  | &nbsp;&nbsp;&nbsp;56271 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(231957) | &nbsp;&nbsp;&nbsp;(175686) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;4 | &nbsp;&nbsp;&nbsp;(4) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5011424 | &nbsp;&nbsp;&nbsp;86389 | &nbsp;&nbsp;&nbsp;220887 | &nbsp;&nbsp;&nbsp;5318700 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;36228859 | &nbsp;&nbsp;&nbsp;369956 | &nbsp;&nbsp;&nbsp;1532200 | &nbsp;&nbsp;&nbsp;38131015 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(380467) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(380467) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(1459586) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1459586) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(1039392) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1039392) |
|  |  | &nbsp;&nbsp;&nbsp;(2879445) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(2879445) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1737398 | &nbsp;&nbsp;&nbsp;1737398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(22548) | &nbsp;&nbsp;&nbsp;(22548) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;79752 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;79752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;398691 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;398691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;(11169) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(11169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;95 | &nbsp;&nbsp;&nbsp;(15700) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(15605) |
|  |  | &nbsp;&nbsp;&nbsp;387617 | &nbsp;&nbsp;&nbsp;64052 | &nbsp;&nbsp;&nbsp;1714850 | &nbsp;&nbsp;&nbsp;2166519 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(3497613) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3497613 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;1290833 | &nbsp;&nbsp;&nbsp;1980 | &nbsp;&nbsp;&nbsp;48207 | &nbsp;&nbsp;&nbsp;1341020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;(1633246) | &nbsp;&nbsp;&nbsp;(766) | &nbsp;&nbsp;&nbsp;563 | &nbsp;&nbsp;&nbsp;(1633449) |
|  |  | &nbsp;&nbsp;&nbsp;(342413) | &nbsp;&nbsp;&nbsp;1214 | &nbsp;&nbsp;&nbsp;48770 | &nbsp;&nbsp;&nbsp;(292429) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;7202121 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7202121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(2039887) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(2039887) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(5967) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1653490) | &nbsp;&nbsp;&nbsp;(1659457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(3620894) | &nbsp;&nbsp;&nbsp;(3620894) |
|  |  | &nbsp;&nbsp;&nbsp;5156267 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(5274384) | &nbsp;&nbsp;&nbsp;(118117) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;100 | &nbsp;&nbsp;&nbsp;(169) | &nbsp;&nbsp;&nbsp;(3) | &nbsp;&nbsp;&nbsp;(72) |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;35053372 | &nbsp;&nbsp;&nbsp;435053 | &nbsp;&nbsp;&nbsp;1519046 | &nbsp;&nbsp;&nbsp;37007471 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts (continued)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;33486670 | &nbsp;&nbsp;&nbsp;370350 | &nbsp;&nbsp;&nbsp;1541737 | &nbsp;&nbsp;&nbsp;35398757 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(442542) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(442542) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(1490048) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1490048) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(720251) | &nbsp;&nbsp;&nbsp;1501 | &nbsp;&nbsp;&nbsp;18 | &nbsp;&nbsp;&nbsp;(718732) |
|  |  | &nbsp;&nbsp;&nbsp;(2652841) | &nbsp;&nbsp;&nbsp;1501 | &nbsp;&nbsp;&nbsp;18 | &nbsp;&nbsp;&nbsp;(2651322) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1531737 | &nbsp;&nbsp;&nbsp;1531737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;27227 | &nbsp;&nbsp;&nbsp;27227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10328 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;335510 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;335510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;(29148) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(29148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;(1113) | &nbsp;&nbsp;&nbsp;(17564) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(18677) |
|  |  | &nbsp;&nbsp;&nbsp;305249 | &nbsp;&nbsp;&nbsp;(7236) | &nbsp;&nbsp;&nbsp;1558964 | &nbsp;&nbsp;&nbsp;1856977 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(3665843) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3665843 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;1316060 | &nbsp;&nbsp;&nbsp;1292 | &nbsp;&nbsp;&nbsp;52021 | &nbsp;&nbsp;&nbsp;1369373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;2765883 | &nbsp;&nbsp;&nbsp;4050 | &nbsp;&nbsp;&nbsp;2965 | &nbsp;&nbsp;&nbsp;2772898 |
|  |  | &nbsp;&nbsp;&nbsp;4081943 | &nbsp;&nbsp;&nbsp;5342 | &nbsp;&nbsp;&nbsp;54986 | &nbsp;&nbsp;&nbsp;4142271 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;6247295 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6247295 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(1567085) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1567085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(6530) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1473695) | &nbsp;&nbsp;&nbsp;(1480225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(3815652) | &nbsp;&nbsp;&nbsp;(3815652) |
|  |  | &nbsp;&nbsp;&nbsp;4673680 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(5289347) | &nbsp;&nbsp;&nbsp;(615667) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;(1) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;36228859 | &nbsp;&nbsp;&nbsp;369956 | &nbsp;&nbsp;&nbsp;1532201 | &nbsp;&nbsp;&nbsp;38131016 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4862460 | &nbsp;&nbsp;&nbsp;46566 | &nbsp;&nbsp;&nbsp;61828 | &nbsp;&nbsp;&nbsp;4970854 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(22103) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(22103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(113995) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(113995) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(12316) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(12316) |
|  |  | &nbsp;&nbsp;&nbsp;(148414) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(148414) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;96201 | &nbsp;&nbsp;&nbsp;96201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(4570) | &nbsp;&nbsp;&nbsp;(4570) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6286 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;18318 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;18318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;1529 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(148) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(148) |
|  |  | &nbsp;&nbsp;&nbsp;19847 | &nbsp;&nbsp;&nbsp;6138 | &nbsp;&nbsp;&nbsp;91631 | &nbsp;&nbsp;&nbsp;117616 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(865625) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;865625 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;1268980 | &nbsp;&nbsp;&nbsp;898 | &nbsp;&nbsp;&nbsp;1711 | &nbsp;&nbsp;&nbsp;1271589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;39072 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;(1) | &nbsp;&nbsp;&nbsp;39084 |
|  |  | &nbsp;&nbsp;&nbsp;1308052 | &nbsp;&nbsp;&nbsp;911 | &nbsp;&nbsp;&nbsp;1710 | &nbsp;&nbsp;&nbsp;1310673 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;540714 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;540714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(19172) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(19172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(93228) | &nbsp;&nbsp;&nbsp;(93228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(864661) | &nbsp;&nbsp;&nbsp;(864661) |
|  |  | &nbsp;&nbsp;&nbsp;521542 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(957889) | &nbsp;&nbsp;&nbsp;(436347) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5697862 | &nbsp;&nbsp;&nbsp;53615 | &nbsp;&nbsp;&nbsp;62905 | &nbsp;&nbsp;&nbsp;5814382 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts (continued)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5122793 | &nbsp;&nbsp;&nbsp;42765 | &nbsp;&nbsp;&nbsp;59840 | &nbsp;&nbsp;&nbsp;5225398 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(26917) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(26917) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(120696) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(120696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(10175) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(10175) |
|  |  | &nbsp;&nbsp;&nbsp;(157788) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(157788) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;106897 | &nbsp;&nbsp;&nbsp;106897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1866 | &nbsp;&nbsp;&nbsp;1866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3203 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;19328 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;357 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;45 | &nbsp;&nbsp;&nbsp;(145) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(100) |
|  |  | &nbsp;&nbsp;&nbsp;19730 | &nbsp;&nbsp;&nbsp;3058 | &nbsp;&nbsp;&nbsp;108763 | &nbsp;&nbsp;&nbsp;131551 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(919411) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;919411 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;171443 | &nbsp;&nbsp;&nbsp;399 | &nbsp;&nbsp;&nbsp;798 | &nbsp;&nbsp;&nbsp;172640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;50220 | &nbsp;&nbsp;&nbsp;345 | &nbsp;&nbsp;&nbsp;144 | &nbsp;&nbsp;&nbsp;50709 |
|  |  | &nbsp;&nbsp;&nbsp;221663 | &nbsp;&nbsp;&nbsp;744 | &nbsp;&nbsp;&nbsp;942 | &nbsp;&nbsp;&nbsp;223349 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;591193 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;591193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(15721) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(15721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(103796) | &nbsp;&nbsp;&nbsp;(103796) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(923332) | &nbsp;&nbsp;&nbsp;(923332) |
|  |  | &nbsp;&nbsp;&nbsp;575472 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1027128) | &nbsp;&nbsp;&nbsp;(451656) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;(1) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4862460 | &nbsp;&nbsp;&nbsp;46566 | &nbsp;&nbsp;&nbsp;61828 | &nbsp;&nbsp;&nbsp;4970854 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for incurred claims** | **Liability for incurred claims** |  |
|  |  | **Liability for remaining coverage** | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Total** |
| **Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 171 | 237 | 11 | 419 |
| **Insurance revenue** |  | (1199) | - | - | (1199) |
| &nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses  |  | 537 | 1009 | 6 | 1552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | - | (96) | (9) | (105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | 742 | - | - | 742 |
|  |  | 1279 | 913 | (3) | 2189 |
| &nbsp;&nbsp;**Investment components and premium refunds** |  | (223) | 223 | - | - |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | - | 8 | - | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | - | (1) | - | (1) |
|  |  | - | 7 | - | 7 |
| **Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | 1385 | - | - | 1385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | (537) | - | - | (537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | - | (892) | - | (892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | - | (220) | - | (220) |
|  |  | 848 | (1112) | - | (264) |
| **Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 876 | 268 | 8 | 1152 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for incurred claims** | **Liability for incurred claims** |  |
|  |  | **Liability for remaining coverage** | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Total** |
| **Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 98 | 127 | 7 | 232 |
| **Insurance revenue** |  | (445) | - | - | (445) |
| &nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses  |  | 44 | 1212 | 9 | 1265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | - | 52 | (5) | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | 54 | - | - | 54 |
|  |  | 98 | 1264 | 4 | 1366 |
| &nbsp;&nbsp;**Investment components and premium refunds** |  | (2) | 2 | - | - |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | - | 6 | - | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | - | 1 | - | 1 |
|  |  | - | 7 | - | 7 |
| **Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | 467 | - | - | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | (45) | - | - | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | - | (1161) | - | (1161) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | - | (2) | - | (2) |
|  |  | 422 | (1163) | - | (741) |
| **Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 171 | 237 | 11 | 419 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied:

*i) Participating insurance contracts*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;5179009 | &nbsp;&nbsp;21157 | &nbsp;&nbsp;134 | &nbsp;&nbsp;117952 | &nbsp;&nbsp;448 | &nbsp;&nbsp;118534 | &nbsp;&nbsp;5318700 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;(20115) | &nbsp;&nbsp;(479) | &nbsp;&nbsp;90 | &nbsp;&nbsp;20537 | &nbsp;&nbsp;(33) | &nbsp;&nbsp;20594 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;(22873) | &nbsp;&nbsp;(928) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(23801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;4140 | &nbsp;&nbsp;30 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;4171 |
|  |  | &nbsp;&nbsp;(38848) | &nbsp;&nbsp;(1377) | &nbsp;&nbsp;90 | &nbsp;&nbsp;20537 | &nbsp;&nbsp;(32) | &nbsp;&nbsp;20595 | &nbsp;&nbsp;(19630) |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(11) | &nbsp;&nbsp;(12072) | &nbsp;&nbsp;(18) | &nbsp;&nbsp;(12101) | &nbsp;&nbsp;(12101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(719) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(719) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(5385) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(5385) |
|  |  | &nbsp;&nbsp;(5385) | &nbsp;&nbsp;(719) | &nbsp;&nbsp;(11) | &nbsp;&nbsp;(12072) | &nbsp;&nbsp;(18) | &nbsp;&nbsp;(12101) | &nbsp;&nbsp;(18205) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(514) | &nbsp;&nbsp;(138) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(652) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;168947 | &nbsp;&nbsp;706 | &nbsp;&nbsp;4 | &nbsp;&nbsp;3816 | &nbsp;&nbsp;18 | &nbsp;&nbsp;3838 | &nbsp;&nbsp;173491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;(174355) | &nbsp;&nbsp;(390) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(174745) |
|  |  | &nbsp;&nbsp;(5408) | &nbsp;&nbsp;316 | &nbsp;&nbsp;4 | &nbsp;&nbsp;3816 | &nbsp;&nbsp;18 | &nbsp;&nbsp;3838 | &nbsp;&nbsp;(1254) |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;52142 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;52142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(1266) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(31798) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(31798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(208048) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(208048) |
|  |  | &nbsp;&nbsp;(188970) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(188970) |
| &nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;(62) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(62) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;4939822 | &nbsp;&nbsp;19239 | &nbsp;&nbsp;217 | &nbsp;&nbsp;130233 | &nbsp;&nbsp;416 | &nbsp;&nbsp;130866 | &nbsp;&nbsp;5089927 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*i) Participating insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4801491 | &nbsp;&nbsp;19796 | &nbsp;&nbsp;- | &nbsp;&nbsp;88060 | &nbsp;&nbsp;254 | &nbsp;&nbsp;88314 | &nbsp;&nbsp;4909601 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;(36247) | &nbsp;&nbsp;(310) | &nbsp;&nbsp;136 | &nbsp;&nbsp;37086 | &nbsp;&nbsp;(665) | &nbsp;&nbsp;36557 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;63717 | &nbsp;&nbsp;153 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;63870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(548) | &nbsp;&nbsp;16 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1190 | &nbsp;&nbsp;1190 | &nbsp;&nbsp;658 |
|  |  | &nbsp;&nbsp;26922 | &nbsp;&nbsp;(141) | &nbsp;&nbsp;136 | &nbsp;&nbsp;37086 | &nbsp;&nbsp;525 | &nbsp;&nbsp;37747 | &nbsp;&nbsp;64528 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3) | &nbsp;&nbsp;(10506) | &nbsp;&nbsp;(358) | &nbsp;&nbsp;(10867) | &nbsp;&nbsp;(10867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(578) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(578) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(4489) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4489) |
|  |  | &nbsp;&nbsp;(4489) | &nbsp;&nbsp;(578) | &nbsp;&nbsp;(3) | &nbsp;&nbsp;(10506) | &nbsp;&nbsp;(358) | &nbsp;&nbsp;(10867) | &nbsp;&nbsp;(15934) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(1030) | &nbsp;&nbsp;(256) |  |  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(1286) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;159428 | &nbsp;&nbsp;713 | &nbsp;&nbsp;1 | &nbsp;&nbsp;3312 | &nbsp;&nbsp;27 | &nbsp;&nbsp;3340 | &nbsp;&nbsp;163481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;372373 | &nbsp;&nbsp;1623 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;373996 |
|  |  | &nbsp;&nbsp;531801 | &nbsp;&nbsp;2336 | &nbsp;&nbsp;1 | &nbsp;&nbsp;3312 | &nbsp;&nbsp;27 | &nbsp;&nbsp;3340 | &nbsp;&nbsp;537477 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;57374 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;57374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(925) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(29720) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(29720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(202415) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(202415) |
|  |  | &nbsp;&nbsp;(175686) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(175686) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;5179009 | &nbsp;&nbsp;21157 | &nbsp;&nbsp;134 | &nbsp;&nbsp;117952 | &nbsp;&nbsp;448 | &nbsp;&nbsp;118534 | &nbsp;&nbsp;5318700 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;29909959 | &nbsp;&nbsp;1248705 | &nbsp;&nbsp;1586732 | &nbsp;&nbsp;3363834 | &nbsp;&nbsp;2021785 | &nbsp;&nbsp;6972351 | &nbsp;&nbsp;38131015 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;989759 | &nbsp;&nbsp;(18135) | &nbsp;&nbsp;(117466) | &nbsp;&nbsp;(218544) | &nbsp;&nbsp;(635614) | &nbsp;&nbsp;(971624) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;51674 | &nbsp;&nbsp;592 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;52266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(1840521) | &nbsp;&nbsp;223433 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1644574 | &nbsp;&nbsp;1644574 | &nbsp;&nbsp;27486 |
|  |  | &nbsp;&nbsp;(799088) | &nbsp;&nbsp;205890 | &nbsp;&nbsp;(117466) | &nbsp;&nbsp;(218544) | &nbsp;&nbsp;1008960 | &nbsp;&nbsp;672950 | &nbsp;&nbsp;79752 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(120405) | &nbsp;&nbsp;(283855) | &nbsp;&nbsp;(299437) | &nbsp;&nbsp;(703697) | &nbsp;&nbsp;(703697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(163112) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(163112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;96681 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;96681 |
|  |  | &nbsp;&nbsp;96681 | &nbsp;&nbsp;(163112) | &nbsp;&nbsp;(120405) | &nbsp;&nbsp;(283855) | &nbsp;&nbsp;(299437) | &nbsp;&nbsp;(703697) | &nbsp;&nbsp;(770128) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(12403) | &nbsp;&nbsp;(10145) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;-  | &nbsp;&nbsp;- | &nbsp;&nbsp;(22548) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;1034784 | &nbsp;&nbsp;46888 | &nbsp;&nbsp;48768 | &nbsp;&nbsp;103395 | &nbsp;&nbsp;107185 | &nbsp;&nbsp;259348 | &nbsp;&nbsp;1341020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;(1606426) | &nbsp;&nbsp;(27023) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1633449) |
|  |  | &nbsp;&nbsp;(571642) | &nbsp;&nbsp;19865 | &nbsp;&nbsp;48768 | &nbsp;&nbsp;103395 | &nbsp;&nbsp;107185 | &nbsp;&nbsp;259348 | &nbsp;&nbsp;(292429) |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;7202121 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;7202121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(2039887) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2039887) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(1659457) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1659457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(3620894) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3620894) |
|  |  | &nbsp;&nbsp;(118117) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(118117) |
| &nbsp;&nbsp;**Others** |  | &nbsp;&nbsp;105 | &nbsp;&nbsp;(36) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(141) | &nbsp;&nbsp;(141) | &nbsp;&nbsp;(72) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;28505495 | &nbsp;&nbsp;1301167 | &nbsp;&nbsp;1397629 | &nbsp;&nbsp;2964830 | &nbsp;&nbsp;2838352 | &nbsp;&nbsp;7200811 | &nbsp;&nbsp;37007473 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;27620212 | &nbsp;&nbsp;1048152 | &nbsp;&nbsp;1836357 | &nbsp;&nbsp;3609317 | &nbsp;&nbsp;1284719 | &nbsp;&nbsp;6730393 | &nbsp;&nbsp;35398757 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;482597 | &nbsp;&nbsp;90053 | &nbsp;&nbsp;(153114) | &nbsp;&nbsp;(53831) | &nbsp;&nbsp;(365705) | &nbsp;&nbsp;(572650) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;(16446) | &nbsp;&nbsp;(476) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;460 | &nbsp;&nbsp;460 | &nbsp;&nbsp;(16462) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(1390464) | &nbsp;&nbsp;156485 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1260769 | &nbsp;&nbsp;1260769 | &nbsp;&nbsp;26790 |
|  |  | &nbsp;&nbsp;(924313) | &nbsp;&nbsp;246062 | &nbsp;&nbsp;(153114) | &nbsp;&nbsp;(53831) | &nbsp;&nbsp;895524 | &nbsp;&nbsp;688579 | &nbsp;&nbsp;10328 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(152482) | &nbsp;&nbsp;(301035) | &nbsp;&nbsp;(239787) | &nbsp;&nbsp;(693304) | &nbsp;&nbsp;(693304) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(110957) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(110957) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(27640) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(27640) |
|  |  | &nbsp;&nbsp;(27640) | &nbsp;&nbsp;(110957) | &nbsp;&nbsp;(152482) | &nbsp;&nbsp;(301035) | &nbsp;&nbsp;(239787) | &nbsp;&nbsp;(693304) | &nbsp;&nbsp;(831901) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;41882 | &nbsp;&nbsp;(14655) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;27227 |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;1083457 | &nbsp;&nbsp;39233 | &nbsp;&nbsp;55971 | &nbsp;&nbsp;109383 | &nbsp;&nbsp;81329 | &nbsp;&nbsp;246683 | &nbsp;&nbsp;1369373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;2732028 | &nbsp;&nbsp;40870 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;2772898 |
|  |  | &nbsp;&nbsp;3815485 | &nbsp;&nbsp;80103 | &nbsp;&nbsp;55971 | &nbsp;&nbsp;109383 | &nbsp;&nbsp;81329 | &nbsp;&nbsp;246683 | &nbsp;&nbsp;4142271 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;6247295 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;6247295 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(1567085) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1567085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(1480225) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1480225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(3815652) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3815652) |
|  |  | &nbsp;&nbsp;(615667) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(615667) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;29909959 | &nbsp;&nbsp;1248705 | &nbsp;&nbsp;1586732 | &nbsp;&nbsp;3363834 | &nbsp;&nbsp;2021785 | &nbsp;&nbsp;6972351 | &nbsp;&nbsp;38131015 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4758088 | &nbsp;&nbsp;76857 | &nbsp;&nbsp;48135 | &nbsp;&nbsp;65638 | &nbsp;&nbsp;22136 | &nbsp;&nbsp;135909 | &nbsp;&nbsp;4970854 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;(105882) | &nbsp;&nbsp;5500 | &nbsp;&nbsp;(1954) | &nbsp;&nbsp;101442 | &nbsp;&nbsp;894 | &nbsp;&nbsp;100382 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;6958 | &nbsp;&nbsp;(778) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;6180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(5026) | &nbsp;&nbsp;922 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4211 | &nbsp;&nbsp;4211 | &nbsp;&nbsp;107 |
|  |  | &nbsp;&nbsp;(103950) | &nbsp;&nbsp;5644 | &nbsp;&nbsp;(1954) | &nbsp;&nbsp;101442 | &nbsp;&nbsp;5105 | &nbsp;&nbsp;104593 | &nbsp;&nbsp;6287 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4379) | &nbsp;&nbsp;(12925) | &nbsp;&nbsp;(2760) | &nbsp;&nbsp;(20064) | &nbsp;&nbsp;(20064) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(9219) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(9219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(3233) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3233) |
|  |  | &nbsp;&nbsp;(3233) | &nbsp;&nbsp;(9219) | &nbsp;&nbsp;(4379) | &nbsp;&nbsp;(12925) | &nbsp;&nbsp;(2760) | &nbsp;&nbsp;(20064) | &nbsp;&nbsp;(32516) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(3735) | &nbsp;&nbsp;(834) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4569) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;1260720 | &nbsp;&nbsp;8089 | &nbsp;&nbsp;1178 | &nbsp;&nbsp;1323 | &nbsp;&nbsp;279 | &nbsp;&nbsp;2780 | &nbsp;&nbsp;1271589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;41282 | &nbsp;&nbsp;(2198) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;39084 |
|  |  | &nbsp;&nbsp;1302002 | &nbsp;&nbsp;5891 | &nbsp;&nbsp;1178 | &nbsp;&nbsp;1323 | &nbsp;&nbsp;279 | &nbsp;&nbsp;2780 | &nbsp;&nbsp;1310673 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;540714 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;540714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(19172) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(19172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(93228) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(93228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(864661) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(864661) |
|  |  | &nbsp;&nbsp;(436347) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(436347) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;5512825 | &nbsp;&nbsp;78339 | &nbsp;&nbsp;42980 | &nbsp;&nbsp;155478 | &nbsp;&nbsp;24760 | &nbsp;&nbsp;223218 | &nbsp;&nbsp;5814382 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4791795 | &nbsp;&nbsp;83584 | &nbsp;&nbsp;70136 | &nbsp;&nbsp;255953 | &nbsp;&nbsp;23930 | &nbsp;&nbsp;350019 | &nbsp;&nbsp;5225398 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;193392 | &nbsp;&nbsp;1639 | &nbsp;&nbsp;(17689) | &nbsp;&nbsp;(174128) | &nbsp;&nbsp;(3215) | &nbsp;&nbsp;(195032) | &nbsp;&nbsp;(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;3203 | &nbsp;&nbsp;(15) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(4412) | &nbsp;&nbsp;622 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;3805 | &nbsp;&nbsp;3805 | &nbsp;&nbsp;15 |
|  |  | &nbsp;&nbsp;192183 | &nbsp;&nbsp;2246 | &nbsp;&nbsp;(17689) | &nbsp;&nbsp;(174128) | &nbsp;&nbsp;590 | &nbsp;&nbsp;(191227) | &nbsp;&nbsp;3202 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(5913) | &nbsp;&nbsp;(20029) | &nbsp;&nbsp;(2770) | &nbsp;&nbsp;(28712) | &nbsp;&nbsp;(28712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(7828) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(7828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;5235 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5235 |
|  |  | &nbsp;&nbsp;5235 | &nbsp;&nbsp;(7828) | &nbsp;&nbsp;(5913) | &nbsp;&nbsp;(20029) | &nbsp;&nbsp;(2770) | &nbsp;&nbsp;(28712) | &nbsp;&nbsp;(31305) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;3105 | &nbsp;&nbsp;(1239) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1866 |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;165146 | &nbsp;&nbsp;1665 | &nbsp;&nbsp;1601 | &nbsp;&nbsp;3842 | &nbsp;&nbsp;386 | &nbsp;&nbsp;5829 | &nbsp;&nbsp;172640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;52280 | &nbsp;&nbsp;(1571) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;50709 |
|  |  | &nbsp;&nbsp;217426 | &nbsp;&nbsp;94 | &nbsp;&nbsp;1601 | &nbsp;&nbsp;3842 | &nbsp;&nbsp;386 | &nbsp;&nbsp;5829 | &nbsp;&nbsp;223349 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;591193 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;591193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(15721) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(15721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(103796) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(103796) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(923332) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(923332) |
|  |  | &nbsp;&nbsp;(451656) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(451656) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;4758088 | &nbsp;&nbsp;76857 | &nbsp;&nbsp;48135 | &nbsp;&nbsp;65638 | &nbsp;&nbsp;22136 | &nbsp;&nbsp;135909 | &nbsp;&nbsp;4970854 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** |
| &nbsp;&nbsp;**Changes that relate to future service** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**New contracts** | &nbsp;&nbsp;W | &nbsp;&nbsp;(1841407) | &nbsp;&nbsp;224385 | &nbsp;&nbsp;1648786 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Contracts other than new contracts** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in assumptions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lapse rates (\*) |  | &nbsp;&nbsp;494068 | &nbsp;&nbsp;- | &nbsp;&nbsp;(472651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk rates |  | &nbsp;&nbsp;377457 | &nbsp;&nbsp;- | &nbsp;&nbsp;(380902) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense ratio |  | &nbsp;&nbsp;(150237) | &nbsp;&nbsp;- | &nbsp;&nbsp;157884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assumption |  | &nbsp;&nbsp;(123488) | &nbsp;&nbsp;- | &nbsp;&nbsp;119034 |
|  |  | &nbsp;&nbsp;597800 | &nbsp;&nbsp;- | &nbsp;&nbsp;(576635) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantity changes and differences between expected and actual investment component |  | &nbsp;&nbsp;301721 | &nbsp;&nbsp;(14228) | &nbsp;&nbsp;(306604) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss component |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;32591 |
|  |  | &nbsp;&nbsp;899521 | &nbsp;&nbsp;(14228) | &nbsp;&nbsp;(850648) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(941886) | &nbsp;&nbsp;210157 | &nbsp;&nbsp;798138 |

---

(\*) Included the effect of assumption changes in renewal rate.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** |
| &nbsp;&nbsp;**Changes that relate to future service** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**New contracts** | &nbsp;&nbsp;W | &nbsp;&nbsp;(1395424) | &nbsp;&nbsp;157124 | &nbsp;&nbsp;1265763 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Contracts other than new contracts** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in assumptions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lapse rates (\*) |  | &nbsp;&nbsp;282107 | &nbsp;&nbsp;- | &nbsp;&nbsp;(409405) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk rates |  | &nbsp;&nbsp;(472117) | &nbsp;&nbsp;- | &nbsp;&nbsp;457367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense ratio |  | &nbsp;&nbsp;(244759) | &nbsp;&nbsp;- | &nbsp;&nbsp;258604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assumption |  | &nbsp;&nbsp;219456 | &nbsp;&nbsp;- | &nbsp;&nbsp;(217764) |
|  |  | &nbsp;&nbsp;(215313) | &nbsp;&nbsp;- | &nbsp;&nbsp;88802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantity changes and differences between expected and actual investment component |  | &nbsp;&nbsp;905529 | &nbsp;&nbsp;91045 | &nbsp;&nbsp;(870063) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss component |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;50596 |
|  |  | &nbsp;&nbsp;690216 | &nbsp;&nbsp;91045 | &nbsp;&nbsp;(730665) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(705208) | &nbsp;&nbsp;248169 | &nbsp;&nbsp;535098 |

---

(\*) Included the effect of assumption changes in renewal rate.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(j) An analysis of insurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Other than insurance acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition cash flows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Insurance contract initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than onerous group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;7198835 | &nbsp;&nbsp;2062270 | &nbsp;&nbsp;(11125775) | &nbsp;&nbsp;215884 | &nbsp;&nbsp;1648786 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Onerous group of contracts |  | &nbsp;&nbsp;738097 | &nbsp;&nbsp;102704 | &nbsp;&nbsp;(817538) | &nbsp;&nbsp;8501 | &nbsp;&nbsp;- | &nbsp;&nbsp;31764 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;7936932 | &nbsp;&nbsp;2164974 | &nbsp;&nbsp;(11943313) | &nbsp;&nbsp;224385 | &nbsp;&nbsp;1648786 | &nbsp;&nbsp;31764 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Other than insurance acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition cash flows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Insurance contract initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than onerous group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;5651531 | &nbsp;&nbsp;1725066 | &nbsp;&nbsp;(8790229) | &nbsp;&nbsp;147869 | &nbsp;&nbsp;1265763 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Onerous group of contracts |  | &nbsp;&nbsp;746636 | &nbsp;&nbsp;118673 | &nbsp;&nbsp;(847101) | &nbsp;&nbsp;9255 | &nbsp;&nbsp;- | &nbsp;&nbsp;27463 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;6398167 | &nbsp;&nbsp;1843739 | &nbsp;&nbsp;(9637330) | &nbsp;&nbsp;157124 | &nbsp;&nbsp;1265763 | &nbsp;&nbsp;27463 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Total** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life W | 2159 | 2102 | 2047 | 1993 | 1939 | 1886 | 1833 | 1780 | 1726 | 1671 | 7536 | 6203 | 4909 | 3670 | 5332 | 46786 |
| &nbsp;&nbsp;&nbsp;Non-participating life | 138539 | 116513 | 105296 | 95575 | 76895 | 64355 | 59953 | 57782 | 55125 | 53165 | 254349 | 239308 | 222676 | 200767 | 740558 | 2480856 |
| &nbsp;&nbsp;&nbsp;Participating health | 316 | 303 | 270 | 252 | 237 | 222 | 207 | 193 | 180 | 167 | 664 | 442 | 299 | 204 | 334 | 4290 |
| &nbsp;&nbsp;&nbsp;Non-participating health | 158141 | 139399 | 125423 | 115060 | 106710 | 99425 | 93104 | 88515 | 85071 | 81713 | 374626 | 327428 | 278419 | 233950 | 788124 | 3095108 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 13 | 14 | 13 | 11 | 15 | 86 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | (2) | (1) | (1) | - | - | - | - | 1 | 1 | 2 | 19 | 24 | 20 | - | - | 63 |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life | 23889 | 21542 | 19983 | 18712 | 17752 | 17122 | 16651 | 16253 | 15890 | 15533 | 72682 | 63640 | 54206 | 44340 | 113511 | 531706 |
| &nbsp;&nbsp;&nbsp;Variable life | 4962 | 4463 | 4067 | 3745 | 3476 | 3263 | 3089 | 2948 | 2818 | 2701 | 12043 | 10031 | 8536 | 7068 | 16808 | 90018 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | 6455 | 6101 | 5776 | 5470 | 5196 | 4914 | 4611 | 4309 | 3990 | 3653 | 13780 | 7889 | 4052 | 1908 | 1599 | 79703 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | 79885 | 72322 | 66478 | 61576 | 56940 | 52137 | 47682 | 43910 | 40959 | 38264 | 153778 | 102795 | 65250 | 37385 | 41763 | 961124 |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings | 13122 | 12193 | 10812 | 9109 | 8281 | 7697 | 7095 | 6226 | 5697 | 5213 | 19313 | 11359 | 6641 | 3844 | 5354 | 131956 |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings | 14073 | 12571 | 11175 | 9984 | 8979 | 8092 | 7274 | 6507 | 5810 | 5170 | 18472 | 10272 | 5615 | 3150 | 6057 | 133201 |
| **Subtotal** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating | 8932 | 8508 | 8095 | 7717 | 7374 | 7024 | 6653 | 6284 | 5898 | 5493 | 21993 | 14548 | 9273 | 5793 | 7280 | 130865 |
| &nbsp;&nbsp;&nbsp;Non-participating | 413574 | 361968 | 327991 | 300032 | 266578 | 240736 | 224485 | 212687 | 202743 | 193890 | 874767 | 744554 | 627212 | 520286 | 1689310 | 7200813 |
| &nbsp;&nbsp;&nbsp;Variable | 19035 | 17034 | 15242 | 13729 | 12455 | 11355 | 10363 | 9455 | 8628 | 7871 | 30515 | 20303 | 14151 | 10218 | 22865 | 223219 |
| &nbsp;&nbsp;&nbsp; W | 441541 | 387510 | 351328 | 321478 | 286407 | 259115 | 241501 | 228426 | 217269 | 207254 | 927275 | 779405 | 650636 | 536297 | 1719455 | 7554897 |

---

(\*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Total** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life W | 1394 | 1371 | 1353 | 1335 | 1319 | 1302 | 1284 | 1267 | 1248 | 1228 | 5797 | 5142 | 4385 | 3513 | 5881 | 37819 |
| &nbsp;&nbsp;&nbsp;Non-participating life | 146758 | 113665 | 98885 | 92666 | 85886 | 71137 | 65023 | 61991 | 59798 | 57556 | 266512 | 238364 | 213338 | 188770 | 637458 | 2397807 |
| &nbsp;&nbsp;&nbsp;Participating health | 219 | 201 | 192 | 172 | 160 | 151 | 141 | 132 | 123 | 115 | 458 | 305 | 205 | 138 | 227 | 2939 |
| &nbsp;&nbsp;&nbsp;Non-participating health | 149441 | 128399 | 116181 | 107027 | 99782 | 93748 | 88324 | 84053 | 81045 | 78476 | 360062 | 315300 | 272015 | 230536 | 800299 | 3004688 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | (4) | (4) | (4) | (4) | (4) | (4) | (4) | (5) | (5) | 1 | 24 | 26 | 25 | 22 | 30 | 90 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | 10 | 8 | 8 | 8 | 7 | 4 | 3 | 3 | 3 | 2 | 8 | 5 | - | - | - | 69 |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life | 28751 | 23816 | 21373 | 19647 | 18378 | 17490 | 16867 | 16375 | 15966 | 15614 | 73223 | 64547 | 55322 | 45703 | 118706 | 551778 |
| &nbsp;&nbsp;&nbsp;Variable life | 5245 | 4498 | 4043 | 3691 | 3398 | 3148 | 2948 | 2784 | 2652 | 2533 | 11236 | 9346 | 8061 | 6797 | 17141 | 87521 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | 5432 | 5261 | 5061 | 4840 | 4637 | 4445 | 4266 | 4049 | 3804 | 3538 | 13999 | 8740 | 4881 | 2464 | 2267 | 77684 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | 82225 | 72433 | 65241 | 59370 | 54421 | 49591 | 45313 | 41475 | 37876 | 34859 | 138740 | 90235 | 55446 | 31646 | 32978 | 891849 |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings | 13007 | 12105 | 11376 | 9987 | 8239 | 7438 | 6868 | 6286 | 5381 | 4829 | 17784 | 9908 | 5544 | 3131 | 4279 | 126162 |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings | 5349 | 4807 | 4274 | 3801 | 3411 | 3060 | 2777 | 2472 | 2119 | 1819 | 6143 | 3322 | 1848 | 1083 | 2100 | 48385 |
| **Subtotal** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating | 7041 | 6829 | 6602 | 6343 | 6112 | 5894 | 5687 | 5443 | 5170 | 4882 | 20278 | 14213 | 9496 | 6137 | 8405 | 118532 |
| &nbsp;&nbsp;&nbsp;Non-participating | 420192 | 350426 | 313064 | 288705 | 266713 | 239408 | 222398 | 210183 | 200069 | 191336 | 856329 | 718359 | 601665 | 499786 | 1593720 | 6972353 |
| &nbsp;&nbsp;&nbsp;Variable | 10594 | 9305 | 8317 | 7492 | 6809 | 6208 | 5725 | 5256 | 4771 | 4352 | 17379 | 12668 | 9909 | 7880 | 19241 | 135906 |
| &nbsp;&nbsp;&nbsp; W | 437827 | 366560 | 327983 | 302540 | 279634 | 251510 | 233810 | 220882 | 210010 | 200570 | 893986 | 745240 | 621070 | 513803 | 1621366 | 7226791 |

---

(\*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(l) As of December 31, 2025 and 2024, the composition and fair value amounts of the underlying items of insurance contracts with direct participation features are as follows:

---

| | | | |
|:---|:---|:---|:---|
| Underlying items (\*) |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 371582 | 294963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | 4004935 | 3561126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 40245 | 32489 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives |  | 429 | (150) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 52778 | 69608 |
|  | W | 4469969 | 3958036 |

---

(\*) The carrying amounts of financial assets (liabilities) for variable insurance were W6,338,236 million and W5,498,129 million as of December 31, 2025 and 2024, respectively.

**26. <u>Reinsurance contract assets (liabilities)</u>**

(a) The carrying amounts of reinsurance contract assets (liabilities) as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Life** | **Health** | **Combined** | **Total** |
| Reinsurance contract assets | W | - | - | 494226 | 494226 |
| Reinsurance contract liabilities |  | (24641) | (31737) | - | (56378) |
| Net reinsurance contract assets (liabilities) | W | (24641) | (31737) | 494226 | 437848 |
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Life** | **Health** | **Combined** | **Total** |
| Reinsurance contract assets | W | - | - | 107668 | 107668 |
| Reinsurance contract liabilities |  | (26214) | (71844) | - | (98058) |
| Net reinsurance contract assets (liabilities) | W | (26214) | (71844) | 107668 | 9610 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Remaining coverage component** | **Remaining coverage component** | **Incurred claims component** | **Total** |
|  |  | **Excluding**<br>**loss recovery**<br>**component** | **Loss recovery**<br>**component** | **Incurred claims component** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 47337 | 3806 | 56525 | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (153214) | 17246 | 37910 | (98058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (105877) | 21052 | 94435 | 9610 |
| &nbsp;&nbsp;&nbsp;**Reinsurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on incurred claims and other incurred reinsurance service expenses |  | - | - | 184667 | 184667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in expected recoveries on past claims |  | - | - | (34424) | (34424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition and reversal of loss recovery component |  | - | 15428 | - | 15428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 60 | (1378) | - | (1318) |
|  |  | 60 | 14050 | 150243 | 164353 |
| &nbsp;&nbsp;&nbsp;**Reinsurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts under the fair value approach |  | (68561) | - | - | (68561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts after transition |  | (81714) | - | - | (81714) |
|  |  | (150275) | - | - | (150275) |
| &nbsp;&nbsp;&nbsp;**Investment components and reinsurance premium refunds** |  | (249075) | - | 249075 | - |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income and expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | 9054 | (4) | 1829 | 10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (211900) | 12 | 170 | (211718) |
|  |  | (202846) | 8 | 1999 | (200839) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 969673 | - | - | 969673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | - | - | (129648) | (129648) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | 21694 | - | (246720) | (225026) |
|  |  | 991367 | - | (376368) | 614999 |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 433777 | 3787 | 56662 | 494226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (150423) | 31323 | 62722 | (56378) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | 283354 | 35110 | 119384 | 437848 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Remaining coverage component** | **Remaining coverage component** | **Incurred claims component** | **Total** |
|  |  | **Excluding**<br>**loss recovery**<br>**component** | **Loss recovery**<br>**component** | **Incurred claims component** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 19436 | 5055 | 38324 | 62815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (143191) | 23142 | 26929 | (93120) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (123755) | 28197 | 65253 | (30305) |
| &nbsp;&nbsp;&nbsp;**Reinsurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on incurred claims and other incurred reinsurance service expenses |  | - | - | 89789 | 89789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in expected recoveries on past claims |  | - | - | (29392) | (29392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition and reversal of loss recovery component |  | - | (6131) | - | (6131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 17 | (1320) | - | (1303) |
|  |  | 17 | (7451) | 60397 | 52963 |
| &nbsp;&nbsp;&nbsp;**Reinsurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts under the fair value approach |  | (28837) | - | - | (28837) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts after transition |  | (29006) | - | - | (29006) |
|  |  | (57843) | - | - | (57843) |
| &nbsp;&nbsp;&nbsp;**Investment components and reinsurance premium refunds** |  | (143510) | - | 143510 | - |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income and expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | (1356) | 37 | 1375 | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (2692) | 243 | 350 | (2099) |
|  |  | (4048) | 280 | 1725 | (2043) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 220940 | - | - | 220940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | - | - | (33480) | (33480) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | 2348 | - | (142970) | (140622) |
|  |  | 223288 | - | (176450) | 46838 |
| &nbsp;&nbsp;&nbsp;**Other increase/decrease** |  | (26) | 26 | - | - |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 47337 | 3806 | 56525 | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (153214) | 17246 | 37910 | (98058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | (105877) | 21052 | 94435 | 9610 |

---

(c) There have been no reinsurance contract assets (liabilities) to which the premium allocation approach has been applied for the years ended December 31, 2025 and 2024.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Total** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Reinsurance contracts under**<br>**fair value approach** | **Other contracts** | **Subtotal** | **Total** |
| **Opening balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (81007) | 19668 | 78043 | 90964 | 169007 | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (323274) | 39436 | 95595 | 90186 | 185781 | (98057) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (404281) | 59104 | 173638 | 181150 | 354788 | 9611 |
| **Changes that relate to future service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | 110471 | 3688 | (54909) | (45411) | (100320) | 13839 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | (268585) | 16943 | - | 253230 | 253230 | 1588 |
|  |  | (158114) | 20631 | (54909) | 207819 | 152910 | 15427 |
| **Changes that relate to current service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services received |  | - | - | (10697) | (21925) | (32622) | (32622) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (5049) | - | - | - | (5049) |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | 70745 | - | - | - | - | 70745 |
|  |  | 70745 | (5049) | (10697) | (21926) | (32622) | 33074 |
| **Changes that relate to past service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to incurred claims component |  | (33574) | (850) | - | - | - | (34424) |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | (7190) | 2250 | 5176 | 10643 | 15819 | 10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (209365) | (2353) | - | - | - | (211718) |
|  |  | (216555) | (103) | 5176 | 10643 | 15819 | (200839) |
| **Cash flows:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 969673 | - | - | - | - | 969673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | (129648) | - | - | - | - | (129648) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | (225026) | - | - | - | - | (225026) |
|  |  | 614999 | - | - | - | - | 614999 |
| **Closing balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 188681 | 26546 | 57547 | 221452 | 278999 | 494226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (315461) | 47187 | 55661 | 156235 | 211896 | (56378) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | (126780) | 73733 | 113208 | 377687 | 490895 | 437848 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Total** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Reinsurance contracts under**<br>**fair value approach** | **Other contracts** | **Subtotal** | **Total** |
| **Opening balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (26683) | 18538 | 15224 | 55736 | 70960  | 62815  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (181724) | 28568 | 24066 | 35970 | 60036  | (93120) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (208407) | 47106  | 39290  | 91706  | 130996  | (30305) |
| **Changes that relate to future service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | (187433) | 4856 | 121614 | 53352 | 174966  | (7611) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | (45885) | 4651 | - | 42714 | 42714  | 1480  |
|  |  | (233318) | 9507  | 121614  | 96066  | 217680  | (6131) |
| **Changes that relate to current service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services received |  | - | - | 11035 | (10814) | 221  | 221  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (2978) | - | - | - | (2978) |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | 33399 | - | - | - | - | 33399  |
|  |  | 33399  | (2978) | 11035  | (10814) | 221  | 30642  |
| **Changes that relate to past service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to incurred claims component |  | (27873) | (1518) | - | - | - | (29391) |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | (7593) | 1758 | 1699 | 4192 | 5891  | 56  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (7327) | 5228 | - | - | - | (2099) |
|  |  | (14920) | 6986 | 1699  | 4192  | 5891  | (2043) |
| **Cash flows:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 220940 | - | - | - | - | 220940  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | (33480) | - | - | - | - | (33480) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | (140622) | - | - | - | - | (140622) |
|  |  | 46838 | - | - | - | - | 46838 |
| **Closing balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | (81007) | 19668 | 78043 | 90964 | 169007  | 107668  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (323274) | 39435 | 95595 | 90186 | 185781  | (98058) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | (404281) | 59103 | 173638  | 181150  | 354788  | 9610 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(e) An analysis of reinsurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** |  |  |  |  |
|  |  | &nbsp;&nbsp;**Other than insurance**<br>**acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition**<br>**cash flows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash inflows** | &nbsp;&nbsp;**Risk adjustment for**<br>**non-financial risks** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Reinsurance contract**<br> **initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other than net gain group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;(1745355) | &nbsp;&nbsp;- | &nbsp;&nbsp;1478122 | &nbsp;&nbsp;15440 | &nbsp;&nbsp;253108 | &nbsp;&nbsp;1315 |
| &nbsp;&nbsp;Net gain group of contracts |  | &nbsp;&nbsp;(62220) | &nbsp;&nbsp;- | &nbsp;&nbsp;60868 | &nbsp;&nbsp;1503 | &nbsp;&nbsp;125 | &nbsp;&nbsp;276 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(1807575) | &nbsp;&nbsp;- | &nbsp;&nbsp;1538990 | &nbsp;&nbsp;16943 | &nbsp;&nbsp;253233 | &nbsp;&nbsp;1591 |
|  |  | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** |  |  |  |  |
|  |  | &nbsp;&nbsp;**Other than insurance**<br>**acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition**<br>**cash flows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash inflows** | &nbsp;&nbsp;**Risk adjustment for**<br>**non-financial risks** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Reinsurance contract**<br> **initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other than net gain group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;(159792) | &nbsp;&nbsp;- | &nbsp;&nbsp;109822 | &nbsp;&nbsp;3077 | &nbsp;&nbsp;47383 | &nbsp;&nbsp;490 |
| &nbsp;&nbsp;Net gain group of contracts |  | &nbsp;&nbsp;(64074) | &nbsp;&nbsp;- | &nbsp;&nbsp;68159 | &nbsp;&nbsp;1574 | &nbsp;&nbsp;(4669) | &nbsp;&nbsp;990 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(223866) | &nbsp;&nbsp;- | &nbsp;&nbsp;177981  | &nbsp;&nbsp;4651  | &nbsp;&nbsp;42714  | &nbsp;&nbsp;1480  |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(f) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**5 years** | **After 5 years through**<br>**10 years** | **After 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 19298 | 18144 | 49242 | 67963 | 124352 | 278999 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities  |  | 18802 | 16756 | 38942 | 43802 | 93594 | 211896 |
|  | W | 38100 | 34900 | 88184 | 111765 | 217946 | 490895 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**5 years** | **After 5 years through**<br>**10 years** | **After 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 12512 | 11334 | 29402 | 38425 | 77334 | 169007 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities  |  | 13874 | 12036 | 30495 | 35569 | 93807 | 185781 |
|  | W | 26386 | 23370 | 59897 | 73994 | 171141 | 354788 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**27. <u>Investment contract liabilities</u>**

Investment contract liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Financial liabilities at amortized cost (\*) | W | 1,541,684 | 1,332,468 |

---

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

**28. <u>Borrowings</u>**

Borrowings as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Type of borrowings** | **Type of borrowings** | **Currency** |  | **2025** | **2024** |
| Borrowings in won | Other borrowings (\*) | KRW | W | 32,056 | 23,291 |
| Borrowings in foreign currency | Other borrowings (\*) | USD |  | 310 | 252 |
|  |  |  | W | 32,366 | 23,543 |

---

(\*) It is attributable to non-controlling interests for the consolidated structured entity that are classified as liabilities.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**29. <u>Debentures</u>**

Debentures as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  | &nbsp;&nbsp;**Currency** | &nbsp;&nbsp;**Issue date** | &nbsp;&nbsp;**Redemption date** | &nbsp;&nbsp;**Contracted interest rate** | &nbsp;&nbsp;**Maturity** |  | &nbsp;&nbsp;**Face value** | &nbsp;&nbsp;**Book**<br>**Value (\*2)** |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) | &nbsp;&nbsp;KRW | 2023.06.09 | 2033.06.09 | &nbsp;&nbsp;5.20% | &nbsp;&nbsp;10 years | &nbsp;&nbsp;W | &nbsp;&nbsp;300000 | &nbsp;&nbsp;299636 |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) | &nbsp;&nbsp;KRW | 2025.06.05 | 2035.06.05 | &nbsp;&nbsp;3.40% | &nbsp;&nbsp;10 years |  | &nbsp;&nbsp;500000 | &nbsp;&nbsp;498756 |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) |  |  |  |  |  | &nbsp;&nbsp;W | &nbsp;&nbsp;800000 | &nbsp;&nbsp;798392 |

---

(\*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.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  | &nbsp;&nbsp;**Currency** | &nbsp;&nbsp;**Issue date** | &nbsp;&nbsp;**Redemption date** | &nbsp;&nbsp;**Contracted interest rate** | &nbsp;&nbsp;**Maturity** |  | &nbsp;&nbsp;**Face value** | &nbsp;&nbsp;**Book**<br>**Value (\*2)** |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) | &nbsp;&nbsp;KRW | 2023.06.09 | 2033.06.09 | &nbsp;&nbsp;5.20% | &nbsp;&nbsp;10 years | &nbsp;&nbsp;W | &nbsp;&nbsp;300000 | &nbsp;&nbsp;299487 |

---

(\*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. <u>Other financial liabilities</u>**

Other financial liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Account payables  | W | &nbsp;&nbsp;&nbsp;&nbsp;26,840 | &nbsp;&nbsp;&nbsp;&nbsp;21,701 |
| Accrued expense |  | &nbsp;&nbsp;&nbsp;&nbsp;670,357 | &nbsp;&nbsp;&nbsp;&nbsp;477,451 |
| Lease deposits received |  | &nbsp;&nbsp;&nbsp;&nbsp;707 | &nbsp;&nbsp;&nbsp;&nbsp;657 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;697,904 | &nbsp;&nbsp;&nbsp;&nbsp;499,809 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**31. <u>Employee benefits</u>**

(a) Defined benefit obligations and plan assets

The Group operates a defined benefit plan based on employees' pension compensation benefits and service period, and entrusts plan assets to Shinhan Bank, etc.

Defined benefit obligations and plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Present value of defined benefit obligations | W | &nbsp;&nbsp;&nbsp;&nbsp;144064 | &nbsp;&nbsp;&nbsp;&nbsp;139703 |
| Fair value of plan assets |  | &nbsp;&nbsp;&nbsp;&nbsp;(147746) | &nbsp;&nbsp;&nbsp;&nbsp;(154730) |
| &nbsp;&nbsp;Recognized liabilities (assets) for defined benefit obligations | W | &nbsp;&nbsp;&nbsp;&nbsp;(3682) | &nbsp;&nbsp;&nbsp;&nbsp;(15027) |

---

(b) Changes in the present value of defined benefit obligation for the years ended December 31, 2025 and 2024 were as

follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Beginning balance | W | 139703 | 124188 |
| Current service cost |  | 9797 | 8787 |
| Interest expense |  | 6435 | 6374 |
| Remeasurement loss (gain): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demographic assumptions |  | 1311 | (107) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assumptions |  | (4227) | 12668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 2933 | 2264 |
|  |  | 17 | 14825 |
| Past service cost |  | - | 40 |
| Salaries |  | (12104) | (14730) |
| Severance payment transferred from (to) associates |  | 217 | 218 |
| Exchange rate effect |  | (1) | 1 |
| Ending balance | W | 144064 | 139703 |

---

(c) Plan assets

Changes in the Plan assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Beginning balance  | W | &nbsp;&nbsp;&nbsp;&nbsp;154730 | &nbsp;&nbsp;&nbsp;&nbsp;156648 |
| Expected return |  | &nbsp;&nbsp;&nbsp;&nbsp;7137 | &nbsp;&nbsp;&nbsp;&nbsp;8036 |
| Remeasurement factors |  | &nbsp;&nbsp;&nbsp;&nbsp;(2719) | &nbsp;&nbsp;&nbsp;&nbsp;(2407) |
| Contributions  |  | &nbsp;&nbsp;&nbsp;&nbsp;5000 | &nbsp;&nbsp;&nbsp;&nbsp;- |
| Benefits Paid |  | &nbsp;&nbsp;&nbsp;&nbsp;(16402) | &nbsp;&nbsp;&nbsp;&nbsp;(7007) |
| Severance payment transferred from (to) associates |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(540) |
| &nbsp;&nbsp;Ending balance  | W | &nbsp;&nbsp;&nbsp;&nbsp;147746 | &nbsp;&nbsp;&nbsp;&nbsp;154730 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**31. <u>Employee benefits (continued)</u>**

(d) Gains and losses related to the defined benefit plan

Gains and losses related to the defined benefit plan for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(\*1)(\*2)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Current service cost | W | 9797 | 8787 |
| Interest expense  |  | 6435 | 6374 |
| Past service cost |  | - | 40 |
| Expected return on plan assets  |  | (7137) | (8036) |
|  | W | 9095 | 7165 |

---

(\*1) The above gains and losses related to the defined benefit plan are included in insurance service expenses, investment management expenses, and other operating expenses. Of gains and losses related to the defined benefit plan, W418 million and W269 million for the years ended December 31, 2025 and 2024, respectively, were transferred to property and equipment, and intangible assets.

(\*2) Termination benefits of W12,075 million and W24,251 million included in salaries were paid for the years ended December 31, 2025 and 2024, respectively.

(e) The gains and losses related to the defined contribution plan for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Operating expenses | W | 5136 | 4950 |
| Investment administration expenses |  | 281 | 303 |
| Other operating expenses |  | 1071 | 932 |
| Total (\*) | W | 6488 | 6185 |

---

(\*) Of the above gains and losses related to the defined contribution plan for the year ended December 31, 2025, W120 million (W156 million for the year ended December 31, 2024) has been transferred to property and equipment and intangible assets.

(f) Details of plan assets by type

The composition of plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | Ratio |  | Amount | Ratio  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount  |
| Time deposits  | &nbsp;&nbsp;41.60% | &nbsp;&nbsp;&nbsp;&nbsp;W | 61455 | 49.78% | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77025 |
| Retirement pension insurance | &nbsp;&nbsp;56.69% |  | 83761 | 49.33% |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76326 |
| Others  | 1.71% |  | 2530 | 0.89% |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1379 |
|  | 100.00% | &nbsp;&nbsp;&nbsp;&nbsp;W | 147746 | 100.00% | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154730 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**31. <u>Employee benefits (continued)</u>**

(g) Actuarial assumptions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **Description** |
| &nbsp;&nbsp;Discount rate (expected rate of return) | 4.03% ~ 4.68% | 4.49% ~ 4.66% | AA0 corporate bond yields |
| &nbsp;&nbsp;Future salary increase rate | 4.41% + <br>increase rate | 4.03% + <br>increase rate | Average for the past 5 years |
| &nbsp;&nbsp;Retirement rate | 1%~23.7% | 2% ~3% | Average for the past 3 years |
| &nbsp;&nbsp;Weighted average maturity | 4.98~7.84 years | 10.73~10.9 years |  |

---

(h) Sensitivity analysis

As of December 31, 2025 and 2024, changes in present value of the defined benefit obligations resulted from the change in key assumption are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Increase** | **Decrease** | **Increase** | **Decrease** |
| Discount rate (1%p movement) | W | &nbsp;&nbsp;&nbsp;&nbsp;(7367) | &nbsp;&nbsp;&nbsp;&nbsp;11659 | &nbsp;&nbsp;&nbsp;&nbsp;(13667) | &nbsp;&nbsp;&nbsp;&nbsp;15745 |
| &nbsp;&nbsp;Future salary increase rate <br>(1%p movement) |  | &nbsp;&nbsp;&nbsp;&nbsp;11579 | &nbsp;&nbsp;&nbsp;&nbsp;(10490) | &nbsp;&nbsp;&nbsp;&nbsp;15690 | &nbsp;&nbsp;&nbsp;&nbsp;(13871) |

---

(i) Defined contribution plan for the year ended December 31, 2025 is expected to be W9,000 million.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**32. <u>Provisions</u>**

(a) Details of provisions

Details of provisions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Provisions for restoration  | W | &nbsp;&nbsp;&nbsp;&nbsp;21905 | &nbsp;&nbsp;&nbsp;&nbsp;19289 |
| Unused credit commitments |  | &nbsp;&nbsp;&nbsp;&nbsp;777 | &nbsp;&nbsp;&nbsp;&nbsp;253 |
| Other long-term employee benefits provisions |  | &nbsp;&nbsp;&nbsp;&nbsp;11183 | &nbsp;&nbsp;&nbsp;&nbsp;13802 |
| Litigation provisions |  | &nbsp;&nbsp;&nbsp;&nbsp;300 | &nbsp;&nbsp;&nbsp;&nbsp;352 |
| Other provisions (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;73338 | &nbsp;&nbsp;&nbsp;&nbsp;42024 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;107503 | &nbsp;&nbsp;&nbsp;&nbsp;75720 |

---

(\*) The amount expected to be paid in the future for the insurance refund of the insurance contract whose extinctive prescription has been completed is estimated and recorded as a liability for completion of extinctive prescription, and the Group recognized provisions related to pending litigation and other contingent matters. In addition, the amount as of December 31, 2025 includes an amount of W38,200 million recognized in respect of expected administrative penalties arising from the Financial Supervisory Service's regular inspection conducted in 2023. This amount may be subject to change depending on the outcome of future regulatory actions.

(b) Changes in provisions for unused credit commitments

Changes in provisions for unused credit commitments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 247 | 6 | - | 253 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | - | - | - | - |
| &nbsp;&nbsp;Provision (Reversal) |  | 530 | (6) | - | 524 |
| Ending balance | W | 777 | - | - | 777 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 652 | 1202 | - | 1854 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | - | - | - | - |
| &nbsp;&nbsp;Reversal |  | (405) | (1196) | - | (1601) |
| Ending balance | W | 247 | 6 | - | 253 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**32. <u>Provisions (continued)</u>**

(c) Changes in provisions

Change in provisions for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Classification** |  | **Provisions for restoration** | **Provisions for restoration** | **Other long-term employee benefits provisions** | **Other long-term employee benefits provisions** | **Litigation provisions** | **Litigation provisions** | **Other provisions** | **Other provisions** |
| **Classification** |  | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| Beginning balance | W | 19289 | 18426 | 13802 | 13361 | 352 | 862 | 42024 | 45069 |
| Provision (Reverse) |  | 1578 | 611 | 1520 | 1544 | (52) | (510) | 65046 | 42643 |
| Amount used |  | (237) | (87) | (1004) | (854) | - | - | (33732) | (45688) |
| Others (\*1) |  | 1275 | 339 | (3135) | (249) | - | - | - | - |
| Ending balance | W | 21905 | 19289 | 11183 | 13802 | 300 | 352 | 73338 | 42024 |

---

(\*1) The effects of changes in estimates, such as the amount and discount rate over time of restoration provisions and other long-term employee benefits provisions, measured at present value.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**32. <u>Provisions (continued)</u>**

(d) Assumptions of other long-term employee benefits

The main assumptions used to calculate the reward for long-term employees according to the Group's long-term service as of December 31, 2025 and 2024 are as follows

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **Description** |
| &nbsp;&nbsp;Discount rate | 4.23% | 3.99% | AA0 corporate bond yields |
| &nbsp;&nbsp;Future salary increase rate | 4.41% + increase rate | 4.03% + increase rate | Average for the past 5 years |
| &nbsp;&nbsp;Retirement rate | 1%~23.7% | 2% ~3% | Average for the past 3 years |

---

(e) Expected period of provision outflows

Expected period of provision outflows as of December 31, 2025 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Expected outflows** | **In 1 year**<br>**or less** | **After 1 year through** <br>**3 years** | **After 3 years through** <br>**5 years** | **After 5 years** |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions for restoration (\*1) | W | 22577 | 6212 | 15193 | 1172 | - |
| &nbsp;&nbsp;&nbsp;Unused credit commitments |  | 777 | 32 | 6 | 735 | 4 |
| &nbsp;&nbsp;&nbsp;Other long-term employee benefits provisions (\*2) |  | 13997 | 1933 | 3001 | 1865 | 7198 |
| &nbsp;&nbsp;&nbsp;Litigation provisions |  | 300 | - | 300 | - | - |
| Other provisions |  | 73337 | 56370 | 5138 | 2981 | 8848 |

---

(\*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. <u>Other liabilities</u>**

Other liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Advance receipts | W | &nbsp;&nbsp;&nbsp;&nbsp;1015 | &nbsp;&nbsp;&nbsp;&nbsp;292 |
| Unearned revenue |  | &nbsp;&nbsp;&nbsp;&nbsp;85183 | &nbsp;&nbsp;&nbsp;&nbsp;88492 |
| Deposits |  | &nbsp;&nbsp;&nbsp;&nbsp;32236 | &nbsp;&nbsp;&nbsp;&nbsp;37349 |
| Accrued VAT |  | &nbsp;&nbsp;&nbsp;&nbsp;442 | &nbsp;&nbsp;&nbsp;&nbsp;632 |
| Others |  | &nbsp;&nbsp;&nbsp;&nbsp;3369 | &nbsp;&nbsp;&nbsp;&nbsp;1191 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;122245 | &nbsp;&nbsp;&nbsp;&nbsp;127956 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**34. <u>Equity</u>**

(a)Equity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| **Share capital:** |  |  |  |
| &nbsp;&nbsp;Common stocks | W | 578274 | 578274 |
| **Hybrid bonds:** |  |  |  |
| &nbsp;&nbsp;Hybrid bonds |  | - | 299452 |
| **Capital surplus:** |  |  |  |
| Capital premium |  | 819340 | 819340 |
| &nbsp;&nbsp;Other capital surplus |  | 672 | 672 |
|  |  | 820012 | 820012 |
| **Capital adjustment**: |  |  |  |
| Stock options |  | 891 | 1461 |
| **Accumulated other comprehensive income, net of tax:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on valuation of securities at fair value through other comprehensive income |  | (3243722) | (1766211) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  | 10581 | 14299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net valuation loss from cash flow hedges |  | (209393) | 90681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income from insurance contracts issued |  | 1498084 | 218610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income from reinsurance contracts held |  | (141935) | 11736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of defined benefit liabilities |  | (30578) | (29028) |
|  |  | (2116963) | (1459913) |
| **Retained earnings:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve  |  | 132991 | 95160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Voluntary reserve |  | 4018140 | 3810489 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unappropriated retained earnings |  | 2773053 | 2895766 |
|  |  | 6924184 | 6801415 |
|  | W | 6206398 | 7040701 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

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

**34. <u>Equity (continued)</u>**

(b) Share capital

Share capital of the Group as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Number of authorized shares  |  | 400,000,000 | 400,000,000 |
| Par value per share in won | W | 5,000 | 5,000 |
| Number of issued common stocks outstanding |  | 115,654,859 | 115,654,859 |

---

(c) Hybrid bonds

Hybrid bonds as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Issue date** | &nbsp;&nbsp;**Maturity date** | &nbsp;&nbsp;**Interest rate** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Unsecured interest-bearing hybrid bonds | &nbsp;&nbsp;2020-08-11 | &nbsp;&nbsp;2050-08-11 | &nbsp;&nbsp;3.60% | &nbsp;&nbsp;W  | &nbsp;&nbsp;- | &nbsp;&nbsp;300000  |
| &nbsp;&nbsp;Issue cost | &nbsp;&nbsp;Issue cost | &nbsp;&nbsp;Issue cost | &nbsp;&nbsp;Issue cost |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(756) |
| &nbsp;&nbsp;Deferred tax effects | &nbsp;&nbsp;Deferred tax effects | &nbsp;&nbsp;Deferred tax effects | &nbsp;&nbsp;Deferred tax effects |  | &nbsp;&nbsp;-  | &nbsp;&nbsp;208  |
|  |  |  |  | &nbsp;&nbsp;W  | &nbsp;&nbsp;-  | &nbsp;&nbsp;299452  |

---

The above hybrid bonds were early redeemed during the year ended December 31, 2025, as the Group became entitled to exercise an early redemption option starting five years after issuance.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**34. <u>Equity (continued)</u>**

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that will not be subsequently<br>reclassified to profit or loss | Items that will not be subsequently<br>reclassified to profit or loss |  |
|  |  | Valuation<br>gains (losses) on<br>securities at<br>fair value<br>through other<br>comprehensive<br>income | Foreign currency<br>translation<br>adjustments for<br>foreign operations | Valuation<br>gains (losses)<br>on derivative<br>for cash flow<br>hedges | Net finance<br>income from<br>insurance contracts issued | Net finance<br>income from<br>reinsurance<br>contracts held | Valuation<br>gains (losses) on<br>securities at<br>fair value<br>through other<br>comprehensive<br>income | Remeasurements<br>of defined<br>benefit<br>liability | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (1760894) | 14299 | 90681 | 218610 | 11736 | (5317) | (29028) | (1459913) |
| &nbsp;&nbsp;&nbsp;Change due to fair value  |  | (2077669) | - | - | 1769110 | (211718) | (4193) | - | (524470) |
| &nbsp;&nbsp;&nbsp;Change due to disposal |  | 3915 | - | - | - | - | 3230 | - | 7145 |
| &nbsp;&nbsp;Remeasurements of the defined benefit liabilities |  | - | - | - | - | - | - | (2736) | (2736) |
| Effects of hedge  |  | - | - | (412878) | - | - | - | - | (412878) |
| Effects of foreign<br> exchange rates |  | - | (4832) | - | - | - | - | - | (4832) |
| &nbsp;&nbsp;Tax effects |  | 596862 | 1114 | 112804 | (489636) | 58047 | 344 | 1186 | 280721 |
| &nbsp;&nbsp;Reclassification of retained earnings |  | - | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (3237786) | 10581 | (209393) | 1498084 | (141935) | (5936) | (30578) | (2116963) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**34. <u>Equity (continued)</u>**

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that may be subsequently reclassified to profit or loss | Items that will not be subsequently<br>reclassified to profit or loss | Items that will not be subsequently<br>reclassified to profit or loss |  |
|  |  | Valuation<br>gains (losses) on<br>securities at<br>fair value<br>through other<br>comprehensive<br>income | Foreign currency<br>translation<br>adjustments for<br>foreign operations | Valuation<br>gains (losses)<br>on derivative<br>for cash flow<br>hedges | Net finance<br>income from<br>insurance contracts issued | Net finance<br>income from<br>reinsurance<br>contracts held | Valuation<br>gains (losses) on<br>securities at<br>fair value<br>through other<br>comprehensive<br>income | Remeasurements<br>of defined<br>benefit<br>liability | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (2491311) | 7045 | 45462 | 2572059 | 13280 | (6206) | (16345) | 123984 |
| &nbsp;&nbsp;&nbsp;Change due to fair value  |  | 954524 | - | - | (3197604) | (2098) | 1053 | - | (2244125) |
| &nbsp;&nbsp;&nbsp;Change due to disposal |  | 37892 | - | - | - | - | 100 | - | 37992 |
| &nbsp;&nbsp;Remeasurements of the defined benefit liabilities |  | - | - | - | - | - | - | (17232) | (17232) |
| Effects of hedge  |  | - | - | 62906 | - | - | - | - | 62906 |
| Effects of foreign<br> exchange rates |  | - | 9856 | - | - | - | - | - | 9856 |
| &nbsp;&nbsp;Tax effects |  | (261999) | (2602) | (17687) | 844155 | 554 | (305) | 4549 | 566665 |
| &nbsp;&nbsp;Reclassification of retained earnings |  | - | - | - | - | - | 41 | - | 41 |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (1760894) | 14299 | 90681 | 218610 | 11736 | (5317) | (29028) | (1459913) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

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

**34. <u>Equity (continued)</u>**

(e) Legal reserve

According to the provisions of the Commercial Act, at least 10% of the profit dividend is accumulated as a legal reserve at each reporting period until it reaches 50% of the capital, and the legal reserve cannot be distributed in cash as dividends and can only be used for recovery of losses carried forward and capital transfer through resolution at the general meeting of shareholder.

(f) Voluntary reserve

*i) Regulatory reserve for loan losses*

In accordance with the Regulations on Supervision of Insurance Business, when the allowance for credit losses in accordance with Korean IFRS falls short of the allowance for credit losses in accordance with the supervisory regulations, the Group is required to reserve the difference between the two as the regulatory reserve for loan losses in retained earnings. The regulatory reserve for loan losses is calculated by the difference between the total amount of credit loss provisions under Korean IFRS and the total amount of credit loss provisions under the supervisory regulations for each category of corporate loans, household loans, and real estate project financing loans. The regulatory reserve for loan losses is limited to the amount of retained earnings less reserves accumulated in accordance with the Insurance Business Act and other laws and regulations.

① Regulatory reserve for loan losses as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Beginning balance | W | 5989 | 6997 |
| &nbsp;&nbsp;Expected provision for (reversal of) regulatory reserve for loan losses |  | 353 | (1008) |
| Ending balance | W | 6342 | 5989 |

---

② Reversal of regulatory reserve for loan losses and adjusted income after reflecting the regulatory reserve for loan

losses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Profit for the year | W | 507708 | 528401 |
| Provision for (reversal of) regulatory reserve for loan losses |  | (353) | 1008 |
| &nbsp;&nbsp;Adjusted income after the regulatory reserve for loan losses (\*1)  | W | 507355 | 529409 |
| &nbsp;&nbsp;Adjusted income per share after the reserve for<br>loan losses in won (\*2) | W | 4329 | 4484 |

---

(\*1) The adjusted profit after reflecting the regulatory reserve for loan losses is not a figure determined by the accounting standards. It is derived assuming the inclusion of the reversal (or provision) of the regulatory reserve for loan losses, before considering the effects of policyholder share allocations and deferred tax impacts, into the net profit for the period. (\*2) Interest on hybrid bonds are excluded.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**34. <u>Equity (continued)</u>**

(f) Voluntary reserve (continued)

*ii) reserve for surrender value* 

In accordance with the Regulations on Supervision of Insurance Business, when the insurance liabilities measured in accordance with the Korean IFRS falls short of the surrender value required by the supervisory regulations, the Group is required to reserve the difference between the two as the reserve for surrender value. The reserve for surrender value is calculated by subtracting the liability for remaining coverage of insurance contracts under the Korean IFRS from the surrender value at the entity level for the effective contracts calculated according to the supervisory regulations.

Reserve for surrender value as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Reserve for surrender value | W | 3,638,116 | 3,449,210 |
| Expected reserve for surrender value |  | 1,280,239 | 188,906 |
|  | W | 4,918,355 | 3,638,116 |

---

*iii) Guarantee reserve*

In accordance with the Regulations on Supervision of Insurance Business, the Group is required to set aside a guarantee reserve at the reporting date in order to guarantee insurance proceeds and other payments not to less than a specified level. The guarantee reserve shall be accumulated after appropriation of reserve for surrender value and shall not be exceed the amount of retained earnings less reserve for surrender value.

Guarantee reserve as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Guarantee reserve | W | 374,035 | 354,282 |
| Expected guarantee reserve |  | 33,300 | 19,753 |
|  | W | 407,335 | 374,035 |

---

Voluntary reserves are accumulated from the time unappropriated deficits are settled when there are unappropriated deficits. If the voluntary reserve accumulated in previous periods exceeds the regulatory reserve for loan losses and guarantee reserve required to be accumulated as of the reporting date, the excess amount can be reversed.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**35. <u>Share-based payment</u>**

As of December 31, 2025, share-based payment agreement of Shinhan Financial Group provided to the Group's executives and employees are as follows:

(a) Performance-linked stock option

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(\*)** | &nbsp;&nbsp;&nbsp;**2022** | &nbsp;&nbsp;&nbsp;**2023** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2025** |
| Type | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment |
| Service period | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs |
| Performance conditions | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) |
| Estimated vested amount <br> based on settlement date | &nbsp;&nbsp;70,575 shares | &nbsp;&nbsp;67,310 shares | &nbsp;&nbsp;62,532 shares | &nbsp;&nbsp;46,997 shares |

---

(\*) Based on the performance-related stock option, the standard stock price (the arithmetic average of the weighted average stock price for the past two months, the past one month, and the past one week from the day before the reference date) after 4 years since the date of grant is paid in cash. The fair value of the stock price is evaluated at the closing price of each reporting date.

(b) Share-based payment expenses

Share-based payment expenses calculated for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Performance-linked stock option | W | 10,017 | 4,063 |

---

(c) Accrued expenses and intrinsic value

Accrued expenses and intrinsic value as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accrued expenses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Intrinsic value (\*1)** |
| Performance-linked stock options (\*2) | W | 19,101 | 19,101 |

---

(\*1) The intrinsic value for stock options vested at 2022 was calculated based on the stock price (W77,757) as of January 1, 2026, and the amount granted after that was calculated based on the closing price of the reporting date (W76,900).

(\*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accrued expenses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Intrinsic value (\*1)** |
| Performance-linked stock options (\*2) | W | 12,466 | 12,466 |

---

(\*1) The intrinsic value for stock options vested at 2021 was calculated based on the stock price (W50,444) as of January 1, 2025, and the amount granted after that was calculated based on the closing price of the reporting date (W47,650).

(\*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**36. <u>Insurance revenue and insurance service expenses</u>**

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Insurance contracts under:** | **Insurance contracts under:** | **Insurance contracts after transition** | **Total** |
|  |  | **Modified retrospective approach** | **Fair value approach** | **Insurance contracts after transition** | **Total** |
| **Insurance Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected incurred claims and other<br>insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;171451 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1244678 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;341228 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1757357 |
| &nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28308 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71218 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contractual service margin recognized for<br>services provided  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124794 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;308852 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302216 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;735862 |
| &nbsp;&nbsp;&nbsp;Recovery of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86572 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1217 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;329390 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;417179 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8463) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(812) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6911) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16186) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;402662 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1625153 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1051957 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3079772 |
| &nbsp;&nbsp;&nbsp;Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1199 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1199 |
| Total insurance revenue | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;402662 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1625153 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1053156 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3080971 |
| **Insurance service expenses** |  |  |  |  |  |
| Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;175548 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1229143 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;462624 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1867315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5961) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24832) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27769) |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts and<br>reversal of such losses |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11265) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16954) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94628 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66409 |
| &nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86572 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1217 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;329392 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;417181 |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition<br>cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;658 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2519 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12636) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9459) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8464) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(750) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6900) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16114) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237088 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1190343 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;870132 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2297563 |
| Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2189 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2189 |
| Total insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237088 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1190343 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;872321 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2299752 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**36. <u>Insurance revenue and insurance service expenses (continued)</u>**

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Insurance contracts under:** | **Insurance contracts under:** | **Insurance contracts after transition** | **Total** |
|  |  | **Modified retrospective approach** | **Fair value approach** | **Insurance contracts after transition** | **Total** |
| **Insurance Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected incurred claims and other<br>insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;189976 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1265227 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;199352 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1654555 |
| &nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21723 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61570 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46923 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contractual service margin recognized for<br>services provided  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158398 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;331569 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;242914 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;732881 |
| &nbsp;&nbsp;&nbsp;Recovery of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110336 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1226 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243396 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;354958 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10883) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(424) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4433) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15740) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;469550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1659168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;728152 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2856870 |
| &nbsp;&nbsp;&nbsp;Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;445 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;445 |
| Total insurance revenue | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;469550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1659168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;728597 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2857315 |
| **Insurance service expenses** |  |  |  |  |  |
| Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;195923 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1230537 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243910 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1670370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2686) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26060 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4432 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27806 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts and<br>reversal of such losses |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11216) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68891 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20385 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78060 |
| &nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110336 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1226 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243397 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;354959 |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition<br>cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;328 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2141 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31240) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28771) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10885) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(424) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7520) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18829) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;281800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1328431 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;473364 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2083595 |
| Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1366 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1366 |
| Total insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;281800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1328431 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;474730 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2084961 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**37. <u>Income or expenses from reinsurance contracts held</u>**

Income or expenses from reinsurance contracts held for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Reinsurance contracts under the fair value approach** | **Reinsurance contracts after transition** | **Total** |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recovery of incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;108510 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76158 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32864) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1561) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34425) |
| &nbsp;&nbsp;&nbsp;Recognition (reversals) of a loss-recovery component |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;409 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15019 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15428 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(616) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(702) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1318) |
| **Total reinsurance revenue** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88914 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;164353 |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected claims and other reinsurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37115 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39416 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76531 |
| &nbsp;&nbsp;&nbsp;Changes in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3160 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6710 |
| &nbsp;&nbsp;&nbsp;Contractual service margin recognized for services received |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10697 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21926 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments for reinsurance premiums and<br>investment components not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17815 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17972 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35787 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(616) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(760) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1376) |
| **Total reinsurance service expenses** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68561 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81714 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150275 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Reinsurance contracts under the fair value approach** | **Reinsurance contracts after transition** | **Total** |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recovery of incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68816 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20973  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89789  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27421) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1971) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29392) |
| &nbsp;&nbsp;&nbsp;Recognition (reversals) of a loss-recovery component |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10318) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4187 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6131) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1053) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1303) |
| **Total reinsurance revenue** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22939 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52963 |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected claims and other reinsurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39319  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13620  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52939  |
| &nbsp;&nbsp;&nbsp;Changes in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2858 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3921 |
| &nbsp;&nbsp;&nbsp;Contractual service margin recognized for services received |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11035) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10814  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(221) |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments for reinsurance premiums and<br>investment components not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1252) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3775  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2523  |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1053) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(266) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1319) |
| **Total reinsurance service expenses** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28837 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29006 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57843 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**38. <u>Insurance finance income (expenses)</u>** 

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** |
|  |  | **General life**  | **Variable** | **Retirement**<br>**(\*3)** | **Total** |
| **Investment income (expenses):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) | W | 1390379 | &nbsp;&nbsp;&nbsp;61034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17075) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1434338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation and transaction of financial instruments |  | 179736 | &nbsp;&nbsp;&nbsp;1372126 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16135 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1567997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investment income (expenses) |  | (127402) | &nbsp;&nbsp;&nbsp;(1294) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1358) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(130054) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income (expenses) recognized in other comprehensive income (\*1) |  | (2486983) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(250) | (2487233) |
|  |  | (1044270) | &nbsp;&nbsp;&nbsp;1431866 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2548) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;385048 |
| &nbsp;&nbsp;**Finance income (expenses) from insurance contracts issued:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | (1518722) | &nbsp;&nbsp;&nbsp;(1271590) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2790312) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | 1809465 | &nbsp;&nbsp;&nbsp;(39084) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1770381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange income (expenses) |  | 2933 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2933 |
|  |  | 293676 | &nbsp;&nbsp;&nbsp;(1310674) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1016998) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in profit or loss |  | (1514517) | &nbsp;&nbsp;&nbsp;(1271591) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2786108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in other comprehensive income (\*1) |  | 1808193 | &nbsp;&nbsp;&nbsp;(39083) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1769110 |
| &nbsp;&nbsp;**Finance income (expenses) from reinsurance contracts held:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | 10879 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | (211718) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211718) |
|  |  | (200839) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(200839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in profit or loss |  | 10879 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (\*1) |  | (211718) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211718) |
| &nbsp;&nbsp;Total finance income (expenses) recognized in profit or loss (\*2) |  | (60925) | &nbsp;&nbsp;&nbsp;160275 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2298) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97052 |
| &nbsp;&nbsp;Total finance income (expenses) recognized in other comprehensive income (\*2) |  | (890508) | &nbsp;&nbsp;&nbsp;(39083) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(929841) |
| **Total** | W | (951433) | &nbsp;&nbsp;&nbsp;121192 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2548) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(832789) |

---

(\*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(\*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(\*3) Retirement is a pension product classified as an investment contract liability.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**38. <u>Insurance finance income (expenses) (continued)</u>**

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | **General life**  | **Variable** | **Retirement**<br>**(\*3)** | **Total** |
| **Investment income (expenses):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) | W | 1410001 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78520 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20269) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1468252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation and transaction of financial instruments |  | 288479 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126554 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6624) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;408409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investment income (expenses) |  | (94430) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2126) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2335) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(98891) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income (expenses) recognized in other comprehensive income (\*1) |  | 1013817 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42712 | 1056529 |
|  |  | 2617867 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;202948 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13484 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2834299 |
| &nbsp;&nbsp;**Finance income (expenses) from insurance contracts issued:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | (1499478) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(172640) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1672118) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | (3148530) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50709) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3199239) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange income (expenses) |  | (31746) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31746) |
|  |  | (4679754) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(223349) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4903103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in profit or loss |  | (1532860) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(172640) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1705500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in other comprehensive income (\*1) |  | (3146894) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50709) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3197603) |
| &nbsp;&nbsp;**Finance income (expenses) from reinsurance contracts held:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | 56 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | (2098) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2098) |
|  |  | (2042) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in profit or loss |  | 56 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (\*1) |  | (2098) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2098) |
| &nbsp;&nbsp;Total finance income (expenses) recognized in profit or loss (\*2) |  | 71246 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30308 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29228) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72326 |
| &nbsp;&nbsp;Total finance income (expenses) recognized in other comprehensive income (\*2) |  | (2135175) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50709) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42712 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2143172) |
| **Total** | W | (2063929) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20401) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13484 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2070846) |

---

(\*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(\*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(\*3) Retirement is a pension product classified as an investment contract liability.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**38. <u>Insurance finance income (expenses) (continued)</u>**

(b) Financial gains and losses recognized in profit or loss for the years ended December 31, 2025 and 2024 are divided into those related to changes in the fair value of the underlying assets of insurance contracts with direct participation characteristics and others as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **FV change related** | **Others** | **Total** |
| Investment income (expenses) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1047870 | 1824411 | 2872281 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts issued |  | (1047870) | (1738238) | (2786108) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts held |  | - | 10880 | 10880 |
|  | W | - | 97053 | 97053 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **FV change related** | **Others** | **Total** |
| Investment income (expenses) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 157494 | 1620276 | 1777770 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts issued |  | (157494) | (1548006) | (1705500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts held |  | - | 56 | 56 |
|  | W | - | 72326 | 72326 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**39. <u>Operating expenses</u>**

Operating expenses by nature for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Claim adjustment expenses** | **Acquisition costs (\*)** | **Maintenance**<br> **expenses** | **Investment management expenses** | **Other operating expenses** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 5812 | 64218 | 55757 | 5089 | 11199 | 142075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonus  |  | 1570 | 19438 | 18946 | 1660 | 2917 | 44531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits |  | 558 | 6212 | 5098 | 482 | 12854 | 25204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits |  | 1490 | 16963 | 14854 | 1758 | 16047 | 51112 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization |  | 196 | 29940 | 21486 | 373 | 794 | 52789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities |  | 135 | 16207 | 8406 | 251 | 519 | 25518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission |  | 79 | 22050 | 29970 | 28743 | 6526 | 87368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes and dues |  | 292 | - | 69506 | 331 | 1 | 70130 |
| &nbsp;&nbsp;&nbsp;&nbsp;IT expenses |  | 737 | 21379 | 20303 | 1485 | 2097 | 46001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proportional commission |  | - | 1186027 | - | - | 17744 | 1203771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales promotion expenses |  | - | 629092 | - | - | 5074 | 634166 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training expenses |  | - | 18 | - | - | 6531 | 6549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 13854 | 37067 | 28785 | 242 | 18059 | 98007 |
|  | W | 24723 | 2048611 | 273111 | 40414 | 100362 | 2487221 |

---

(\*) Acquisition costs are reflected as insurance acquisition cash flows.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Claim adjustment expenses** | **Acquisition costs (\*)** | **Maintenance**<br> **expenses** | **Investment management expenses** | **Other operating expenses** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 5753 | 59426 | 55851 | 5855 | 10717 | 137602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonus  |  | 1750 | 20696 | 20822 | 1908 | 4031 | 49207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits |  | 507 | 4756 | 4701 | 1200 | 23319 | 34483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits |  | 1818 | 19079 | 17906 | 2133 | 14759 | 55695 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization |  | 176 | 27353 | 21365 | 381 | (600) | 48675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities |  | 116 | 15146 | 7872 | 218 | 508 | 23860 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission |  | 97 | 23256 | 24889 | 31292 | 6825 | 86359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes and dues |  | 562 | - | 67079 | 325 | 1 | 67967 |
| &nbsp;&nbsp;&nbsp;&nbsp;IT expenses |  | 756 | 19292 | 19843 | 1674 | 2060 | 43625 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proportional commission |  | - | 957335 | - | - | 17486 | 974821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales promotion expenses |  | - | 397263 | - | - | 4222 | 401485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training expenses |  | - | - | - | - | 6124 | 6124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 11777 | 28780 | 27716 | 239 | 25266 | 93778 |
|  | W | 23312 | 1572382 | 268044 | 45225 | 114718 | 2023681 |

---

(\*) Acquisition costs are reflected as insurance acquisition cash flows.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**40. <u>Investment administrative expenses</u>**

The investment administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Salaries | W | 4053 | 3319 |
| Bonus  |  | 1319 | 1118 |
| Retirement benefits |  | 686 | 1389 |
| Employment benefits  |  | 1515 | 1385 |
| Communication expenses  |  | 70 | 83 |
| Fees |  | 11780 | 9825 |
| Taxes and dues |  | 384 | 619 |
| Others  |  | 2316 | 1911 |
|  | W | 22123 | 19649 |

---

**41. <u>Net interest income</u>** 

(a) Interest income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Interest income on: |  |  |  |
| &nbsp;&nbsp;Deposits at amortized cost | W | 62510 | 62867 |
| &nbsp;&nbsp;Deposits at fair value through profit or loss |  | 1305 | 133 |
| &nbsp;&nbsp;Securities at fair value through profit or loss |  | 82581 | 96013 |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 1122331 | 1109758 |
| &nbsp;&nbsp;Securities at amortized cost |  | 117388 | 129179 |
| &nbsp;&nbsp;Loans at amortized cost |  | 111719 | 145331 |
| &nbsp;&nbsp;Others |  | 3906 | 3697 |
|  | W | 1501740 | 1546978 |

---

(b) Interest expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Interest expenses on: |  |  |  |
| &nbsp;&nbsp;Bonds issued  | W | 25,686 | 15,761 |
| &nbsp;&nbsp;Lease liabilities  |  | 2,553 | 2,938 |
| &nbsp;&nbsp;Others  |  | 39,164 | 60,027 |
|  | W | 67,403 | 78,726 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**42. <u>Provision for (reversal of) credit loss allowance</u>**

Provision for (reversal of) credit loss allowance for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2024** |
| Provisions (Reversal) | &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income | W | (1049) | (1257) |
| Provisions (Reversal) | Securities at amortized costs |  | 7 | 43 |
| Provisions (Reversal) | Loans at amortized costs |  | 4734 | 7410 |
| Provisions (Reversal) | Receivables at amortized costs (\*) |  | 643 | 1636 |
| Provisions (Reversal) | &nbsp;&nbsp;&nbsp;Allowance for unused credit commitments |  | 525 | (1601) |
|  |  | W | 4860 | 6231 |

---

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

**43. <u>Gain and losses on foreign exchange transactions</u>**

Foreign exchange transaction income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gain on foreign exchange transactions:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 21374 | 69316 |
| &nbsp;&nbsp;&nbsp;&nbsp;Translations  |  | 246463 | 645604 |
|  |  | 267837 | 714920 |
| **Loss on foreign exchange transactions:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign transactions |  | 32468 | 12326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Translations  |  | 112772 | 171 |
|  |  | 145240 | 12497 |
|  | W | 122597 | 702423 |

---

**44. <u>Fees and commission income</u>**

Fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit related fees | W | 560 | 2689 |
| Loan commissions |  | 7217 | 7198 |
| Retirement pension management fee |  | 1515 | 2238 |
| Other fees and commissions in won |  | 177 | 148 |
|  | W | 9469 | 12273 |

---

**45. <u>Dividend income</u>**

Dividend income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | W | 32023 | 28111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 5751 | 4399 |
|  | W | 37774 | 32510 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**46. <u>Other investment income or expenses</u>** 

(a) Other investment income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental income | W | 1,020 | 868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 253,230 | 234,202 |
|  | W | 254,250 | 235,070 |

---

(b) Other investment expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense on intangible assets | W | 76930 | 75039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense on investment properties |  | 212 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 294506 | 251332 |
|  | W | 371648 | 326583 |

---

**47. <u>Non-operating income or expenses</u>**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-operating income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on cancellation of right-of-use asset  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 963 | 552 |
| &nbsp;&nbsp;Gain on disposal of property and equipment |  | 60 | 35 |
| &nbsp;&nbsp;Miscellaneous gains |  | 8505 | 9486 |
|  | W | 9528 | 10073 |
| **Non-operating expenses:** |  |  |  |
| Loss on cancellation of right-of-use asset |  | 704 | 218 |
| &nbsp;&nbsp;Loss on disposal of property and equipment |  | 474 | 693 |
| Impairment of property and equipment |  | 924 | 1703 |
| Impairment of intangible assets |  | 2 | 167 |
| Donations |  | 7020 | 7977 |
| Miscellaneous loss |  | 1850 | 2062 |
|  |  | 10974 | 12820 |
|  | W | (1446) | (2747) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**48. <u>Income tax expense</u>**

(a) Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current income tax expense | W | 121299 | 16092 |
| Adjustment for prior periods |  | (9010) | (11728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary differences  |  | (112220) | (377990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax recognized in other comprehensive income |  | 280130 | 566653 |
| Income tax recognized in other comprehensive income  |  | 207 | 14 |
| Income tax expenses | W | 280406 | 193041 |
| Effective tax rate |  | 35.58% | 26.76% |

---

(b) Reconciliation of net income before tax to income tax expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net profit before income taxes | W | 788114 | 721442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes at statutory tax rates |  | 208062 | 190461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-taxable income |  | (3924) | (6038) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible expense |  | 1463 | 4947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax rate difference |  | (10362) | (3036) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of consolidated tax payment |  | 2663 | (1463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in tax rates |  | 79051 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 3453 | 8170 |
|  |  | 72344 | 2580 |
| Income tax expense | W | 280406 | 193041 |
| Effective tax rate |  | 35.58% | 26.76% |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**48. <u>Income tax expense (continued)</u>**

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Beginning**<br>**Balance**  | **Profit or loss** | **Other comprehen-sive income** | **Hybrid bonds** | **Equity adjustment** | **Ending**<br>**Balance** |
| &nbsp;&nbsp;Deposits in foreign currency  | W | (76) | (222) | - | - | - | (298) |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  | (30630) | (17230) | - | - | - | (47860) |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | (231609) | (84495) | 596845 | - | - | 280741 |
| &nbsp;&nbsp;Securities at amortized costs  |  | (30200) | (6326) | - | - | - | (36526) |
| &nbsp;&nbsp;Investments in associates |  | 2803 | 117 | - | - | - | 2920 |
| &nbsp;&nbsp;Derivative instruments |  | 103259 | 16810 | 112803 | - | - | 232872 |
| &nbsp;&nbsp;Accrued income |  | (163425) | (29357) | - | - | - | (192782) |
| &nbsp;&nbsp;Evaluation cost of initial investment fund |  | 101 | 4 | - | - | - | 105 |
| &nbsp;&nbsp;Deemed dividend |  | 7750 | (34) | - | - | - | 7716 |
| &nbsp;&nbsp;Dividend receivables |  | 119 | 5 | - | - | - | 124 |
| &nbsp;&nbsp;Other liabilities |  | (219) | 539 | - | - | - | 320 |
| &nbsp;&nbsp;Provisions |  | 101 | 148 | - | - | - | 249 |
| &nbsp;&nbsp;Dividend cost recovery |  | 24350 | (2757) | - | - | - | 21593 |
| &nbsp;&nbsp;Taxation of partnership |  | 1696 | 976 | - | - | - | 2672 |
| &nbsp;&nbsp;Reserve for outstanding claims for matured contracts |  | 10356 | (1510) | - | - | - | 8846 |
| Property and equipment, intangible assets  |  | 7858 | 1107 | - | - | - | 8965 |
| Other accrued expense |  | 29605 | (4297) | - | - | - | 25308 |
| Loan origination cost (fees) |  | (207) | 1160 | - | - | - | 953 |
| Share-based payment |  | 3291 | 1984 | - | - | (22) | 5253 |
| Defined benefit obligations |  | (1554) | (2316) | 1186 | - | - | (2684) |
| &nbsp;&nbsp;Vehicles for business use (depreciation adjustment) |  | 39 | (2) | - | - | - | 37 |
| &nbsp;&nbsp;Accrued interests (deposit)  |  | (3) | (2) | - | - | - | (5) |
| &nbsp;&nbsp;Right-of-use assets |  | 34 | (26) | - | - | - | 8 |
| &nbsp;&nbsp;Uncollected commission clawbacks |  | 12 | - | - | - | - | 12 |
| &nbsp;&nbsp;Loans |  | 1719 | 72 | - | - | - | 1791 |
| &nbsp;&nbsp;Deficit carried forward  |  | 5537 | (3332) | - | - | - | 2205 |
| &nbsp;&nbsp;Hybrid bonds |  | 199 | 8 | - | (208) | - | (1) |
| &nbsp;&nbsp;Legal provision |  | 93 | (11) | - | - | - | 82 |
| &nbsp;&nbsp;Effect of change in discount rate under K-IFRS 1117 |  | (82277) | (295) | (431589) | - | - | (514161) |
| &nbsp;&nbsp;Surrender Value Reserve |  | (922842) | (38452) | - | - | - | (961294) |
| &nbsp;&nbsp;Others |  | (2890) | (177) | 1115 | - | - | (1952) |
|  | W | (1267010) | (167911) | 280360 | (208) | (22) | (1154791) |

---

(\*1) During the year ended December 31, 2025, the corporate income tax rate and the local income tax rate were revised as a result of amendments to the Corporate Tax Act and the Corporate Local Income Tax Act. Accordingly, deferred tax assets and liabilities expected to be realized after 2025 were measured using a tax rate of 27.5%.

(\*2) The Group is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**48. <u>Income tax expense (continued)</u>**

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Beginning**<br>**Balance**  | **Profit or loss** | **Other comprehensive income** | **Equity adjustment** | **Ending**<br>**Balance** |
| &nbsp;&nbsp;Deposits in foreign currency  | W | (203) | 127 | - | - | (76) |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  | (8314) | (22317) | - | - | (30631) |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 167212 | (136679) | (262141) | - | (231608) |
| &nbsp;&nbsp;Securities at amortized costs  |  | (8452) | (21748) | - | - | (30200) |
| &nbsp;&nbsp;Investments in associates |  | 2803 | - | - | - | 2803 |
| &nbsp;&nbsp;Derivative instruments |  | 35243 | 85703 | (17687) | - | 103259 |
| &nbsp;&nbsp;Accrued income |  | (139749) | (23676) | - | - | (163425) |
| &nbsp;&nbsp;Evaluation cost of initial investment fund |  | - | 101 | - | - | 101 |
| &nbsp;&nbsp;Deemed dividend |  | 8535 | (785) | - | - | 7750 |
| &nbsp;&nbsp;Dividend receivables |  | 119 | - | - | - | 119 |
| &nbsp;&nbsp;Other liabilities |  | 726 | (945) | - | - | (219) |
| &nbsp;&nbsp;Provisions |  | 290 | (188) | - | - | 102 |
| &nbsp;&nbsp;Dividend cost recovery |  | 22821 | 1529 | - | - | 24350 |
| &nbsp;&nbsp;Taxation of partnership |  | 1113 | 583 | - | - | 1696 |
| &nbsp;&nbsp;Reserve for outstanding claims for matured contracts |  | 11445 | (1089) | - | - | 10356 |
| Property and equipment, intangible assets  |  | 9017 | (1159) | - | - | 7858 |
| Other accrued expense |  | 26626 | 2979 | - | - | 29605 |
| Loan origination cost (fees) |  | 51 | (258) | - | - | (207) |
| Share-based payment |  | 2667 | (13) | 637 | - | 3291 |
| Defined benefit obligations |  | (9043) | 3577 | 3912 | - | (1554) |
| &nbsp;&nbsp;Vehicles for business use (depreciation adjustment) |  | 30 | 9 | - | - | 39 |
| &nbsp;&nbsp;Accrued interests (deposit)  |  | - | (3) | - | - | (3) |
| &nbsp;&nbsp;Right-of-use assets |  | (363) | 396 | - | - | 33 |
| &nbsp;&nbsp;Uncollected commission clawbacks |  | 12 | - | - | - | 12 |
| &nbsp;&nbsp;Government subsidies |  | 1 | (1) | - | - | - |
| &nbsp;&nbsp;Loans |  | 1719 | - | - | - | 1719 |
| &nbsp;&nbsp;Deficit carried forward  |  | 10483 | (4946) | - | - | 5537 |
| &nbsp;&nbsp;Hybrid bonds |  | 199 | - | - | - | 199 |
| &nbsp;&nbsp;Legal provision |  | 214 | (121) | - | - | 93 |
| &nbsp;&nbsp;Effect of change in discount rate under K-IFRS 1117 |  | (927418) | 432 | 844709 | - | (82277) |
| &nbsp;&nbsp;Surrender Value Reserve |  | (839355) | (83487) | - | - | (922842) |
| &nbsp;&nbsp;Others |  | (13429) | 13141 | (2602) | - | (2890) |
|  | W | (1645000) | (188838) | 566828 | - | (1267010) |

---

(\*) The Group is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**48. <u>Income tax expense (continued)</u>**

(d) As of December 31, 2025 and 2024, deferred income tax related to items recognized other than in profit or loss for the years are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**January 1, 2025** | &nbsp;&nbsp;**January 1, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Amount** | &nbsp;&nbsp;**Tax effect** | **Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tax effect** | **Amount** | **Tax effect** |
| &nbsp;&nbsp;Valuation gains (losses) on securities at fair value through other comprehensive income | &nbsp;&nbsp;W | (2399745) | 633533 | (2074355) | 596845 | (4474100) | 1230378 |
| &nbsp;&nbsp;Insurance and reinsurance finance income (expenses) |  | 312976 | (82641) | 1557528 | (431589) | 1870504 | (514230) |
| &nbsp;&nbsp;Remeasurement of defined benefit liabilities |  | (39438) | 10412 | (2737) | 1186 | (42175) | 11598 |
| &nbsp;&nbsp;Stock options  |  | 1985 | (524) | - | (22) | 1985 | (546) |
| &nbsp;&nbsp;Gains (losses) on valuation of derivatives for cash flow hedge |  | 122934 | (32253) | (412878) | 112803 | (289944) | 80550 |
| &nbsp;&nbsp;Hybrid bonds |  | (755) | 208 | 755 | (208) | - | - |
| &nbsp;&nbsp;Gains and losses from translation of foreign operations |  | 19426 | (5129) | (4831) | 1116 | 14595 | (4013) |
|  | &nbsp;&nbsp;W | (1982617) | 523606 | (936518) | 280131 | (2919135) | 803737 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**January 1, 2024** | &nbsp;&nbsp;**January 1, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Amount** | &nbsp;&nbsp;**Tax effect** | **Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tax effect** | **Amount** | **Tax effect** |
| &nbsp;&nbsp;Valuation gains (losses) on securities at fair value through other comprehensive income | &nbsp;&nbsp;W | (3393368) | 895850 | 993623 | (262317) | (2399745) | 633533 |
| &nbsp;&nbsp;Insurance and reinsurance finance income (expenses) |  | 3512690 | (927350) | (3199714) | 844709 | 312976 | (82641) |
| &nbsp;&nbsp;Remeasurement of defined benefit liabilities |  | (22206) | 5862 | (17232) | 4550 | (39438) | 10412 |
| &nbsp;&nbsp;Stock options  |  | 1985 | (524) | - | - | 1985 | (524) |
| &nbsp;&nbsp;Gains (losses) on valuation of derivatives for cash flow hedge |  | 60028 | (14566) | 62906 | (17687) | 122934 | (32253) |
| &nbsp;&nbsp;Hybrid bonds |  | (755) | 208 | - | - | (755) | 208 |
| &nbsp;&nbsp;Gains and losses from translation of foreign operations |  | 9570 | (2527) | 9856 | (2602) | 19426 | (5129) |
|  | &nbsp;&nbsp;W | 167944 | (43047) | (2150561) | 566653 | (1982617) | 523606 |

---

(e) Current tax assets and liabilities

Current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current tax assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax receivables (refund of consolidated tax payment) | W | 6531  | 82811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current tax liabilities**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payables  | W | (14029) | (4248) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**48. <u>Income tax expense (continued)</u>**

(f) Income taxes based on gross amount

Deferred tax assets and liabilities and current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Deferred tax assets | W | 602772 | 198923 |
| Deferred tax liabilities |  | (1757563) | (1465933) |
| Current tax assets |  | 6531 | 82811 |
| Current tax liabilities |  | (14029) | (4248) |

---

(g) Global Anti-Base Erosion (GloBE) Rules

Following the enactment of legislation related to the Global Anti-Base Erosion (GloBE) Rules, the Group is obligated to pay a top-up tax equal to the difference between the effective tax rate and the minimum rate of 15% in each jurisdiction in which its constituent entities are located, to the extent that the jurisdictional effective tax rate falls below 15%. The Group has assessed the impact of the GloBE rules in accordance with the relevant legislation and has determined that no significant amount of top-up tax is expected to arise, as most constituent entities meet the transitional safe harbor requirements or have effective tax rates exceeding 15%.

Income tax expense related to the GloBE rules is subject to estimation uncertainty due to potential variability arising from various factors, including tax incentives received by permanent establishments and adjustments to accounting net profit or loss required under the legislation for the calculation of GloBE income in subsequent periods. In addition, the Group applies the temporary exception to the recognition and disclosure of deferred tax assets and liabilities under K-IFRS 1012, and therefore does not recognize deferred tax assets or liabilities related to the GloBE rules, nor does it disclose information related thereto.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**49. <u>Contingencies and commitments</u>**

(a) Insurance agreement

As of December 31, 2025, the total number and amount of insurance contracts held by the Group are 7,022,070 contracts and W180,067,900 million, respectively (6,905,100 contracts and W182,596,053 million, respectively for the year ended December 31, 2024).

(b) Reinsurance agreements

As of December 31, 2025, the Group held reinsurance contracts with 10 domestic and global reinsurance companies, including Korean Reinsurance Company and Reinsurance Group of America Incorporated ("RGA") for insurance contracts that cover cancer, cerebrovascular and heart disease (DP), critical illness (CI), death and disaster, and dementia. For life insurance contracts, the Group held coinsurance contracts with Korean Reinsurance Co., Ltd., Swiss Reinsurance Co. ("Swiss Re"), and RGA, which proportionally reinsures insurance risks and interest rate risks.

(c) Pending litigations

As of December 31, 2025, the Group has 93 pending litigations (Total claim amounts of W10,350 million). Among these, provisions related to the litigation were accounted for W300 million, and liabilities for incurred claims related to insurance claims were accounted for W5,732 million. As of December 31, 2025, the result of litigation is unpredictable.

(d) Bank overdraft agreement

As of December 31, 2025, the Group has bank overdraft agreements with Shinhan Bank. The limit on bank overdraft is W 100,000 million (W 100,000 million as of December 31, 2024).

(e) Unused credit provided and capital commitments

As of December 31, 2025, the Group's unused credit provided and capital commitments amounted to W373,782 million and W1,316,609 million, respectively (W164,307 million and W1,374,078 million, respectively as of December 31, 2024).

(f) Other commitments

As of December 31, 2025 and 2024, the details of payment guarantee are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Guarantee provider** |  | **2025** | **2024** | **Type of guarantee** |
| Seoul Guarantee Insurance Co., Ltd. | W | &nbsp;&nbsp;1,851 | 2,281 | Guarantee deposit etc. |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**50. <u>Related parties</u>**

(a) Related parties as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **The parent company** | Shinhan Financial Group |
| **Entities under common control** | &nbsp;&nbsp;Shinhan Bank Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Securities Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Card Co., Ltd. |
|  | &nbsp;&nbsp;Jeju Bank |
|  | &nbsp;&nbsp;Shinhan DS |
|  | &nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Capital Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Savings Bank |
|  | &nbsp;&nbsp;Shinhan Fund Partners |
|  | &nbsp;&nbsp;SHC Management Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan REITs Management Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan EZ General Insurance, Ltd. |
|  | &nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|  | &nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 |
|  | &nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4 |
|  | &nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 |
|  | &nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund I |
|  | &nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**<u>50. Related parties (continued)</u>**

(a) Related parties as of December 31, 2025 are as follows: (continued)

---

| | |
|:---|:---|
| **Entities under common control (continued)** | &nbsp;&nbsp;One Shinhan Futures Fund 1 |
|  | &nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 |
|  | &nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.15 |
|  | &nbsp;&nbsp;Shinhan AIM FoF Fund 4 |
|  | &nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund II |
|  | &nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.13 |
|  | &nbsp;&nbsp;Shinhan AIM FoF Fund 6-A |
|  | &nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust |
|  | &nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 |
|  | &nbsp;&nbsp;One Shinhan Futures Fund 2 |
|  | &nbsp;&nbsp;SH BNPP Startup Venture Alpha Specialized Investment Private Equity Mixed Asset Trust No.1 |
|  | &nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 |
|  | &nbsp;&nbsp;Shinhan AIM Investment Finance Specialized Investment Trust No. 1 |
|  | &nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III |
|  | &nbsp;&nbsp;SH Startup Venture Specialized Investment Private Equity Trust No.4 |
|  | &nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A |
|  | &nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 1 |
|  | &nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  |
|  | &nbsp;&nbsp;SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd |
|  | &nbsp;&nbsp;One Shinhan Futures Fund 3 |
|  | &nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 |
|  | &nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 |
|  | &nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 2 |
|  | &nbsp;&nbsp;Shinhan global flagship venture fund 1 |
|  | &nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**<u>50. Related parties (continued)</u>**

(a) Related parties as of December 31, 2025 are as follows: (continued)

---

| | |
|:---|:---|
| **Entities under common control (continued)** | &nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 |
|  | SH Venture Private Investment Trust No.6 |
|  | &nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 |
|  | &nbsp;&nbsp;Shinhan hyper connect venture fund Ι |
|  | &nbsp;&nbsp;Shinhan hyper future's venture fund 1 |
|  | &nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 |
|  | &nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 |
|  | &nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) |
|  | &nbsp;&nbsp;SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 (\*) |
|  | &nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) (\*) |
|  | &nbsp;&nbsp;Shinhan SLAMS Co-Investment Private Investment Trust No.1 (\*) |
| **Associates** | &nbsp;&nbsp;iPIXEL Co., Ltd. |
|  | &nbsp;&nbsp;Findvalue JD Fund No.1 |
|  | &nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |
|  | &nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 (\*) |
| **Associates of entities under common control** | &nbsp;&nbsp;SBC PFV Co., Ltd  |
|  | &nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |
|  | &nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 |
|  | &nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |
|  | &nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |
|  | &nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 |
|  | &nbsp;&nbsp;Macquarie Korea Opportunities Fund(MKOF) |
|  | &nbsp;&nbsp;SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.1 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.2 |
|  | &nbsp;&nbsp;SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative] |
|  | &nbsp;&nbsp;PCC Amberstone Private Equity Fund I |
|  | &nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |
|  | &nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|  | &nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |
|  | &nbsp;&nbsp;Songpa Biz-Cluster PFV Co.,Ltd. |
|  | &nbsp;&nbsp;Finflow (\*) |
| **Others** | &nbsp;&nbsp;Shinhan Life Shining Foundation |

---

(\*) It was newly included as a related party during the year ended December 31, 2025.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| **The parent company** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;Securities at fair value through other comprehensive income | W | - | 29898 |
|  | &nbsp;&nbsp;Accrued income |  | - | 167 |
|  | &nbsp;&nbsp;Credit loss allowance |  | - | (13) |
|  | &nbsp;&nbsp;Current tax assets |  | 6460 | 82482 |
|  | &nbsp;&nbsp;Current tax liabilities |  | 14029 | 4245 |
|  | &nbsp;&nbsp;Accrued expenses |  | 19101 | 12466 |
| **Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 95833 | 115008 |
|  | &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 41395 | 37234 |
|  | &nbsp;&nbsp;Lease deposits paid  |  | 4856 | 4536 |
|  | &nbsp;&nbsp;Right-of-use assets |  | 10194 | 3160 |
|  | &nbsp;&nbsp;Accrued income |  | 315 | 134 |
|  | &nbsp;&nbsp;Credit loss allowance |  | (25) | (20) |
|  | &nbsp;&nbsp;Derivative assets |  | 4399 | 1425 |
|  | &nbsp;&nbsp;Derivative liabilities  |  | 154275 | 128182 |
|  | &nbsp;&nbsp;Lease liabilities  |  | 10234 | 3452 |
|  | &nbsp;&nbsp;Accrued expenses |  | 1563 | 115 |
|  | &nbsp;&nbsp;Investment contract liabilities (\*2) |  | 5290 | 144698 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 108942 | 24231 |
|  | &nbsp;&nbsp;Account receivables |  | 3973 | 1391 |
|  | &nbsp;&nbsp;Accrued income |  | 2 | 2 |
|  | &nbsp;&nbsp;Derivative assets |  | 5074 | 25593 |
|  | &nbsp;&nbsp;Derivative liabilities  |  | 49509 | 25798 |
|  | &nbsp;&nbsp;Borrowings (\*3) |  | 29890 | 22386 |
|  | &nbsp;&nbsp;Accrued expenses |  | 5840 | 2238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 5460 | 11540 |
|  | &nbsp;&nbsp;Account receivables |  | 1818 | 1936 |
|  | &nbsp;&nbsp;Accrued income |  | 6011 | 6564 |
|  | &nbsp;&nbsp;Credit loss allowance |  | (168) | (424) |
|  | &nbsp;&nbsp;Accrued expenses |  | 4572 | 4220 |
|  | &nbsp;&nbsp;Investment contract liabilities (\*2) |  | - | 8409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jeju Bank | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 102 | 86 |
|  | &nbsp;&nbsp;Investment contract liabilities (\*2) |  | - | 14339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;Accrued expenses |  | 340 | 734 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 95 | 8754 |
|  | &nbsp;&nbsp;Accrued expenses |  | 886 | 831 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 99 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. | &nbsp;&nbsp;Borrowings (\*3) |  | 212 | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Fund Partners | &nbsp;&nbsp;Accrued expenses |  | 216 | 220 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Associates of entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd | &nbsp;&nbsp;Loans | W | 78300 | - |
|  | &nbsp;&nbsp;Accrued income |  | 28 | - |
|  | &nbsp;&nbsp;Credit loss allowance |  | (673) | - |
|  | &nbsp;&nbsp;Unused credit commitments |  | 599 | - |
| **Total assets** | **Total assets** | W | 372490 | 353684 |
| **Total liabilities**  | **Total liabilities**  | W | 296556 | 372535 |

---

(\*1) It is a financial instrument related to consolidated structured entities of related parties.

(\*2) It is policyholders' reserve for retirement pension contracts.

(\*3) It is non-controlling interests classified as liabilities for the consolidated structured entities.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Related party** | &nbsp;&nbsp;**Account** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**The parent company** |  |  |  |  |
| &nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;&nbsp;&nbsp;Interest income  | &nbsp;&nbsp;W | &nbsp;&nbsp;92 | &nbsp;&nbsp;870 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | &nbsp;&nbsp;(13) | &nbsp;&nbsp;(2) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;4879 | &nbsp;&nbsp;4879 |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;2191 | &nbsp;&nbsp;3437 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Fee and commission income  |  | &nbsp;&nbsp;8 | &nbsp;&nbsp;6 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Gains related to derivatives  |  | &nbsp;&nbsp;29505 | &nbsp;&nbsp;926 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other income |  | &nbsp;&nbsp;- | &nbsp;&nbsp;88 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract commissions |  | &nbsp;&nbsp;16084 | &nbsp;&nbsp;9002 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  | &nbsp;&nbsp;468 | &nbsp;&nbsp;90 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | &nbsp;&nbsp;5 | &nbsp;&nbsp;(119) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses related to derivatives  |  | &nbsp;&nbsp;36005 | &nbsp;&nbsp;160292 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;6190 | &nbsp;&nbsp;4847 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income (\*1) |  | &nbsp;&nbsp;151 | &nbsp;&nbsp;159 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other expense |  | &nbsp;&nbsp;80 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;182 | &nbsp;&nbsp;224 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income  |  | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Gains related to derivatives  |  | &nbsp;&nbsp;3183 | &nbsp;&nbsp;771 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses related to derivatives |  | &nbsp;&nbsp;6010 | &nbsp;&nbsp;17821 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;1135 | &nbsp;&nbsp;1448 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other expense (\*2) |  | &nbsp;&nbsp;1513 | &nbsp;&nbsp;1790 |
| &nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;584 | &nbsp;&nbsp;1351 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;45 | &nbsp;&nbsp;76 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other income |  | &nbsp;&nbsp;5145 | &nbsp;&nbsp;4804 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract commissions |  | &nbsp;&nbsp;15712 | &nbsp;&nbsp;16566 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | &nbsp;&nbsp;(236) | &nbsp;&nbsp;(320) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;5235 | &nbsp;&nbsp;4710 |
| &nbsp;&nbsp;Jeju Bank | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract commissions |  | &nbsp;&nbsp;3 | &nbsp;&nbsp;9 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;12 | &nbsp;&nbsp;13 |
| &nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;29126 | &nbsp;&nbsp;27671 |
| &nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income (\*1) |  | &nbsp;&nbsp;88 | &nbsp;&nbsp;1986 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;11340 | &nbsp;&nbsp;10086 |
| &nbsp;&nbsp;Shinhan Capital Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Other expense (\*2) |  | &nbsp;&nbsp;10 | &nbsp;&nbsp;(94) |
| &nbsp;&nbsp;Shinhan Savings Bank | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income  |  | &nbsp;&nbsp;5 | &nbsp;&nbsp;20 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;35 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;85 | &nbsp;&nbsp;102 |
| &nbsp;&nbsp;Shinhan Fund Partners | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;858 | &nbsp;&nbsp;937 |
| &nbsp;&nbsp;Shinhan EZ General Insurance, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income  |  | &nbsp;&nbsp;5 | &nbsp;&nbsp;- |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;7 | &nbsp;&nbsp;- |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **2025** | **2024** |
| **Entities under common control (continued)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income | W | 826 | 1031 |
| &nbsp;&nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 1363 | 1446 |
| &nbsp;&nbsp;&nbsp;SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 1096 | 1098 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 556 | 636 |
| &nbsp;&nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | 182 | 189 |
| &nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4 | &nbsp;&nbsp;Distribution income |  | 2305 | 2943 |
| &nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 | &nbsp;&nbsp;Distribution income |  | 1700 | 1875 |
| &nbsp;&nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 2458 | 2376 |
| &nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 | &nbsp;&nbsp;Distribution income |  | 285 | 400 |
| &nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 | &nbsp;&nbsp;Distribution income |  | 1249 | 3758 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A | &nbsp;&nbsp;Distribution income |  | 36 | 671 |
| &nbsp;&nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust | &nbsp;&nbsp;Distribution income |  | 1170 | 1205 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | 768 | 760 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Investment Finance Specialized Investment Trust No. 1 | &nbsp;&nbsp;Distribution income |  | 182 | 354 |
| &nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 | &nbsp;&nbsp;Distribution income |  | 1550 | 1896 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A | &nbsp;&nbsp;Distribution income |  | 4454 | 3641 |
| &nbsp;&nbsp;&nbsp;SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd | &nbsp;&nbsp;Distribution income |  | - | 48 |
| &nbsp;&nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | 90 | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 | &nbsp;&nbsp;Distribution income |  | 740 | 968 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 | &nbsp;&nbsp;Distribution income |  | 2711 | 4979 |
| &nbsp;&nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) | &nbsp;&nbsp;Distribution income |  | 622 | 604 |
| &nbsp;&nbsp;&nbsp;IMM Long-term Solutions Private Equity Fund (\*3) | &nbsp;&nbsp;Distribution income |  | - | 22054 |
| &nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 | &nbsp;&nbsp;Distribution income |  | 684 | 236 |
| &nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 | &nbsp;&nbsp;Distribution income |  | 126 | 122 |
| &nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 | &nbsp;&nbsp;Distribution income |  | 1122 | 304 |
| &nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | - | 1530 |
| &nbsp;&nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) | &nbsp;&nbsp;Distribution income |  | 39 | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund II | &nbsp;&nbsp;Distribution income |  | 2 | - |
| &nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 248 | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **2025** | **2024** |
| **Associates of entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Midas Asset Global CRE Debt Private Fund No.6 (\*3) | &nbsp;&nbsp;Distribution income | W | - | 1967 |
| &nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 (\*3) | &nbsp;&nbsp;Distribution income |  | - | 85 |
| &nbsp;&nbsp;&nbsp;Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (\*3) | &nbsp;&nbsp;Distribution income |  | - | 445 |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I | &nbsp;&nbsp;Distribution income |  | 321 | 692 |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH | &nbsp;&nbsp;Distribution income |  | 1540 | 1554 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 839 | 903 |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 168 | 212 |
| &nbsp;&nbsp;&nbsp;SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. | &nbsp;&nbsp;Distribution income |  | 364 | 168 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B | &nbsp;&nbsp;Distribution income |  | 969 | 61 |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 | &nbsp;&nbsp;Distribution income |  | 535 | 1937 |
| &nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 30 | 67 |
| &nbsp;&nbsp;&nbsp;SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative] | &nbsp;&nbsp;Distribution income |  | 62 | 72 |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund | &nbsp;&nbsp;Distribution income |  | - | 53 |
| &nbsp;&nbsp;&nbsp;Finflow | &nbsp;&nbsp;Other income (\*4) |  | 541 | - |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | &nbsp;&nbsp;Interest income  |  | 2582 | 3281 |
|  | &nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | 673 | (59) |
|  | &nbsp;&nbsp;Provision for unused credit commitments |  | 599 | - |
| **Others** |  |  |  |  |
| Shinhan Life Shining Foundation | &nbsp;&nbsp;Rental income |  | 31 | 56 |
|  | &nbsp;&nbsp;Donations |  | 31 | 2546 |
| **Total income** |  | W | 75739 | 81404 |
| **Total expense**  |  | W | 135846 | 262215 |

---

(\*1) It is investment gains and losses from consolidated structured entities of the related party.

(\*2) They are transactions related to non-controlling interests of consolidated structured entities.

(\*3) It has been removed from the related parties during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

(\*4) Shares of Finflow were acquired through a contribution in kind during the year ended December 31, 2025, and a disposal gain of W541 million arising from the contribution in kind was included in non-operating income.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**The parent company** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;W | - | - | - | - | - | - | 378307 |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. (\*1)(\*2) |  | - | 1867 | - | - | 4972 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. (\*3) |  | 7161 | 50 | - | - | - | - | 1133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |  | - | - | - | - | 88 | 8780 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. |  | - | - | - | - | 99 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust |  | - | - | - | - | - | 1247 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust |  | - | - | - | - | - | 1793 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1759 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 344 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4 |  | - | - | - | - | 6291 | 976 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 |  | - | - | - | - | 191 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust |  | - | - | - | - | 2095 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund I |  | - | - | - | - | 11 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 |  | - | - | - | - | 560 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 |  | - | - | - | - | - | 2216 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 |  | - | - | - | - | 4545 | 3303 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.15 |  | - | - | - | - | 652 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 4 |  | - | - | - | - | 793 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund II |  | - | - | - | - | 31 | 430 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 |  | - | - | - | - | - | 2040 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.13 |  | - | - | - | - | - | 1472 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A |  | - | - | - | - | 11347 | 32 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust |  | - | - | - | - | 2294 | 381 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 |  | - | - | - | - | - | 2902 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 1328 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III |  | - | - | - | - | 135 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Specialized Investment Private Equity Trust No.4 |  | - | - | - | - | - | 3343 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 |  | - | - | - | - | 559 | 1232 | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**Entities under common control (continued)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A | &nbsp;&nbsp;W | - | - | - | - | 13033 | 547 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 1 |  | - | - | - | - | 300 | 1800 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  |  | - | - | - | - | 172 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 |  | - | - | - | - | 2000 | 871 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 |  | - | - | - | - | 260 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 2 |  | - | - | - | - | 80 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan global flagship venture fund 1 |  | - | - | - | - | 5200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 |  | - | - | - | - | 1705 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 |  | - | - | - | - | 2041 | 894 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Venture Private Investment Trust No.6 |  | - | - | - | - | 6000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 |  | - | - | - | - | - | 3190 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper connect venture fund Ι |  | - | - | - | - | 7200 | 524 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper future's venture fund 1 |  | - | - | - | - | 211 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 |  | - | - | - | - | 1277 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 |  | - | - | - | - | 7679 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) |  | - | - | - | - | - | 1754 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 |  | - | - | - | - | 12448 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) |  | - | - | - | - | 4727 | 686 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan SLAMS Co-Investment Private Investment Trust No.1 |  | - | - | - | - | 16757 | - | - |
|  |  | 7161 | 1917 | - | - | 115753 | 43844 | 1133 |
| &nbsp;&nbsp;**Associate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | - | - | - | - | 1440 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 |  | - | - | - | - | 13000 | - | - |
|  |  | - | - | - | - | 14440 | - | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| **Associates of entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | &nbsp;&nbsp;W | - | - | 78300 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | - | - | - | - | 3297 | 3611 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 |  | - | - | - | - | 4258 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | - | - | - | - | - | 423 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 |  | - | - | - | - | - | 797 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | - | - | - | - | 2 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.2 |  | - | - | - | - | - | 1219 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | - | - | - | - | - | 3800 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | - | - | - | - | - | 326 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1683 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | - | - | - | - | 4338 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finflow (\*4) |  | - | - | - | - | 1499 | - | - |
|  |  | - | - | 78300 | - | 13394 | 11859 | - |
|  | &nbsp;&nbsp;W | 7161 | 1917 | 78300 | - | 143587 | 55703 | 379440 |

---

(\*1) Interest expense of W468 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2025.

(\*2) Fund transactions related to consolidated structured entities of related parties are included.

(\*3) Increase or decrease in non-controlling interests classified as liabilities related to consolidated structured entities are included.

(\*4) Acquisition through contributions in kind is included.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**The parent company** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;W | -  | -  |  |  | -  | -  | 315342 |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. (\*1)(\*2) |  | - | 786 | - | - | 538 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. (\*3) |  | 5950 | 1364 | - | - | - | - | 544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |  | - | - | - | - | 152 | 5640 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. |  | - | 166 | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust |  | - | - | - | - | - | 1212 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust |  | - | - | - | - | - | 1726 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1697 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 338 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 |  | - | - | - | - | 5340 | 1000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust |  | - | - | - | - | 2896 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund I |  |  |  |  |  | - | 22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 |  | - | - | - | - | - | 3207 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 |  | - | - | - | - | 873 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.15 |  | - | - | - | - | 783 | 290 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 4 |  | - | - | - | - | 3595 | 247 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 |  | - | - | - | - | 2453 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Shinhan Futures Fund 1 |  | - | - | - | - | - | 72 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 |  | - | - | - | - | 1884 | 15272 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A |  | - | - | - | - | 11528 | 259 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust |  | - | - | - | - | 1239 | 118 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 |  | - | - | - | - | 1000 | 2235 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 1280 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Investment Finance Specialized Investment Trust No. 1 |  | - | - | - | - | - | 3613 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III |  | - | - | - | - | 60 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Specialized Investment Private Equity Trust No.4 |  | - | - | - | - | 4000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 |  | - | - | - | - | 3241 | 275 | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A | &nbsp;&nbsp;W | - | - | - | - | 16264 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  |  | - | - | - | - | 378 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 |  | - | - | - | - | 4000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 |  | - | - | - | - | 1200 | 817 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan global flagship venture fund 1 |  | - | - | - | - | 5200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 |  | - | - | - | - | 2524 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 |  | - | - | - | - | 2644 | 23374 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Venture Private Investment Trust No.6 |  | - | - | - | - | 4000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 |  |  |  |  |  | 8000 | - |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper connect venture fund Ι |  | - | - | - | - | 7200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper future's venture fund 1 |  | - | - | - | - | 564 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 |  | - | - | - | - | 4064 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 |  | - | - | - | - | 10725 | 4073 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IMM Long-term Solution Private Equity Fund  |  | - | - | - | - | - | 34981 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) |  | - | - | - | - | 30000 | - | - |
|  |  | 5950 | 2316 | - | - | 136345 | 101748 | 544 |
| &nbsp;&nbsp;**Associate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | - | - | - | - | 2400 | - | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| **Associates of entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | &nbsp;&nbsp;W | - | - | 95000 | 95000 | 1575 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Midas Asset Global CRE Debt Private Fund No.6(\*4) |  | - | - | - | - | - | 27055 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | - | - | - | - | 1271 | 399 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 |  | - | - | - | - | 2535 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | - | - | - | - | - | 1068 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | - | - | - | - | 450 | 1026 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | - | - | - | - | - | 2238 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 |  | - | - | - | - | - | 197 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24(\*4) |  | - | - | - | - | - | 12194 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.1 |  | - | - | - | - | 2613 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.2 |  | - | - | - | - | 1760 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative] |  | - | - | - | - | - | 38 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | - | - | - | - | 247 | 2712 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1635 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. |  | - | - | - | - | 3516 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | - | - | - | - | 6562 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Songpa Biz-Cluster PFV Co.,Ltd. |  | - | - | - | - | 2500 | - | - |
|  |  | - | - | 95000 | 95000 | 23029 | 48562 | - |
|  | &nbsp;&nbsp;W | 5950 | 2316 | 95000 | 95000 | 161774 | 150310 | 315886 |

---

(\*1) Interest expense of W90 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2024.

(\*2) Fund transactions related to consolidated structured entities of related parties are included.

(\*3) Increase or decrease in non-controlling interests classified as liabilities related to consolidated structured entities are included.

(\*4) It has been removed from the related party during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(e) Unused capital commitments and loan commitment with related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related Party** | **Commitment** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. (\*) | Capital commitment | W | 871 | 6458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. (\*) | Capital commitment |  | 891 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 4 | Capital commitment |  | 295 | 268 |
| &nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 | Capital commitment |  | 8018 | 7271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A | Capital commitment |  | 19754 | 30802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III | Capital commitment |  | - | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 | Capital commitment |  | 6969 | 7528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A | Capital commitment |  | 821 | 7271 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 | Capital commitment |  | 2000 | 4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 | Capital commitment |  | 620 | 880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan global flagship venture fund 1 | Capital commitment |  | 5200 | 10400 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 | Capital commitment |  | 11195 | 12871 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Venture Private Investment Trust No.6 | Capital commitment |  | 6000 | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 | Capital commitment |  | - | 5745 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper connect venture fund Ι | Capital commitment |  | 15520 | 22720 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper future's venture fund 1 | Capital commitment |  | - | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 | Capital commitment |  | 2519 | 3796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 | Capital commitment |  | 10281 | 18840 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 | Capital commitment |  | 30144 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) | Capital commitment |  | 52804 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan SLAMS Co-Investment Private Investment Trust No.1 | Capital commitment |  | 12604 | - |
|  |  |  | 186506 | 151295 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Associates** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 | Capital commitment |  | 960 | 2400 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Associates of entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | Loan commitment |  | 171700 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust | Capital commitment |  | 3878 | 3880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust | Capital commitment |  | 182 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B | Capital commitment |  | 2914 | 6067 |
|  |  |  | 178674 | 10129 |
|  |  | W | 366140 | 163824 |

---

(\*) It is an unused capital commitment related to consolidated structured entities of the related party.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**<u>50. Related parties (continued)</u>**

(f) Unsettled commitments of derivatives with related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related Party** | **Type of Derivatives** |  | **2025** | **2024** |
| **Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;Shinhan Bank Co., Ltd. | &nbsp;&nbsp;Currency swap | W | 633761 | 719051 |
|  | &nbsp;&nbsp;Currency forward |  | 965159 | 649437 |
|  | &nbsp;&nbsp;Interest rate forward |  | 144447 | 20010 |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Equity options |  | 29587 | 131774 |
|  | &nbsp;&nbsp;Currency forward |  | 253281 | 164346 |
|  | &nbsp;&nbsp;Interest rate forward |  | 557964 | 557964 |
|  |  | W | 2584199 | 2242582 |

---

(g) Details of bond transactions with a key related party for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Related Party** |  | **2025** | **2025** | **2024** | **2024** |
| **Related Party** |  | **Buy** | **Sell** | **Buy** | **Sell** |
| **Entities under common control** |  |  |  |  |  |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | W | 520,060 | 311,108 | 862,553 | 524,845 |

---

(h) Details of acquisitions and disposal of assets with key related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Related Party** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Account** |  | **2025** | **2025** | **2024** | **2024** |
| **Related Party** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Account** |  | **Acquisition** | **Disposal** | **Acquisition** | **Disposal** |
| **Entities under common control** |  |  |  |  |  |  |
| &nbsp;&nbsp;Shinhan Bank Co., Ltd. | &nbsp;&nbsp;&nbsp;Right-of-use assets | W | 8466 |  | 294 | 61 |
| &nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;Equipment |  | 288 | - | 148 | - |
|  | &nbsp;&nbsp;&nbsp;Development costs |  | 634 | - | 981 | - |
|  | &nbsp;&nbsp;&nbsp;Software |  | 310 | - | 510 | - |
|  | &nbsp;&nbsp;&nbsp;Other intangible assets |  | 5685 | 615 | 419 | 464 |
|  | &nbsp;&nbsp;&nbsp;Other property and equipment |  | 186 | - | 139 | - |
|  |  | W | 15569 | 615 | 2491 | 525 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

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

**<u>50. Related parties (continued)</u>**

(i) Details of collateral transactions with related parties

*i) The collateral provided by the Group to related parties as of December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Provided to** | **Collateral assets** |  | **Collateral value(\*)** | **Collateral value(\*)** |
| **Provided to** | **Collateral assets** |  | **2025** | **2024** |
| **Entities under common control** |  |  |  |  |
| Shinhan Bank Co., Ltd. | &nbsp;&nbsp;Government bonds, Deposits | W | 147572 | 116962 |
| Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Bonds, Stocks and beneficiary certificates |  | 30537 | - |
|  |  | W | 178109 | 116962 |

---

(\*) Collateral value is equivalent to the carrying amount of the collateral assets.

*ii) The collateral provided by a related party to the Group as of December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Provided by** | **Collateral asset** |  | **Collateral value** | **Collateral value** |
| **Provided by** | **Collateral asset** |  | **2025** | **2024** |
| **Entities under common control** |  |  |  |  |
| Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Securities | W | - | 12501 |
| Shinhan Card Co., Ltd. | &nbsp;&nbsp;Deposits |  | 10 | 10 |
|  |  | W | 10 | 12511 |

---

(j) Details of key management personnel compensation for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Short-term employee benefits | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1,079 | 1,219 |
| Share-based payment transactions |  | 1,727 | 848 |
| Retirement benefits |  | 40 | 40 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2,846 | 2,107 |

---

(k) As of December 31, 2025, the amounts of credit card allowance commitments provided by Shinhan Card Co., Ltd., and Shinhan Bank Co., Ltd., related parties, are W8,999 million and W114 million, respectively.

**51. <u>Earnings per share</u>**

Earnings per share for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Profit for the year | W | 507708 | 528401 |
| Less: Interest to hybrid bonds |  | 6633 | 10800 |
| Net profit attributable to common shares | W | 501075 | 517601 |
| Weighted average number of common shares <br> outstanding  |  | 115,654,859 shares | 115,654,859 shares |
| Basic and diluted earnings per share in won (\*) | W | 4333 | 4475 |

---

(\*) Because the Group does not have any potential dilutive common shares and stock options do not have dilutive effect, the diluted earnings per share are the same as the basic earnings per share for the years ended December 31, 2025 and 2024.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**52. <u>Statements of cash flows</u>**

(a) Adjustments to revenue and expenses for the year ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Interest income | W | (1501740) | (1546978) |
| &nbsp;&nbsp;Interest expense |  | 67403 | 78726 |
| &nbsp;&nbsp;Dividend income |  | (37774) | (32510) |
| Income taxes |  | 280406 | 193040 |
| Insurance revenue |  | (3080971) | (2857315) |
| Reinsurance revenue |  | (164353) | (52963) |
| Insurance finance income from insurance contracts issued |  | (204421) | (397712) |
| Insurance finance income from reinsurance contracts held |  | (68751) | (24101) |
| Insurance service expenses |  | 2233324 | 2025806 |
| Reinsurance service expenses |  | 150275 | 57843 |
| Insurance finance expenses from insurance contracts issued |  | 2990529 | 2103212 |
| Insurance finance expenses from reinsurance contracts held |  | 57872 | 24045 |
| Gains on financial assets at fair value through profit or loss |  | (1364390) | (657125) |
| Losses on financial assets at fair value through profit or loss |  | 258583 | 630274 |
| &nbsp;&nbsp;&nbsp;Gains on disposal of securities at fair value through other comprehensive income |  | (81508) | (79735) |
| &nbsp;&nbsp;&nbsp;Losses on disposal of securities measured at fair value through other comprehensive income |  | 64118 | 96475 |
| &nbsp;&nbsp;&nbsp;Gains on disposal of securities at amortized cost |  | - | (22284) |
| &nbsp;&nbsp;&nbsp;Losses on disposal of securities at amortized cost |  | - | 565 |
| Provisions for credit losses |  | 4861 | 6230 |
| Gains related to derivatives |  | (99476) | (7510) |
| Losses related to derivatives |  | 308928 | 585180 |
| Gain on foreign currency translation  |  | (246463) | (645603) |
| Loss on foreign currency translation  |  | 112773 | 162 |
| Gain (loss) on foreign currency transaction |  | 3199 | (19242) |
| Amortization of right-of-use assets |  | 39243 | 39100 |
| Depreciation |  | 20392 | 21071 |
| Amortization of intangible assets  |  | 78425 | 76343 |
| Employee costs |  | 16073 | 11400 |
| Rental income  |  | (29) | (36) |
| Losses on provisions  |  | 39104 | 1182 |
| Other investment expense |  | 1627 | 1798 |
| Share of profit (loss) from associates |  | 2428 | 894 |
| Non-operating income |  | (1564) | (578) |
| Non-operating expense  |  | 2302 | 3490 |
|  | W | (119575) | (386856) |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**52. <u>Statements of cash flows (continued)</u>**

(b) Changes in assets and liabilities from operating activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Due from banks at amortized cost | W | (36700) | (32095) |
| Financial assets at fair value through profit or loss |  | 411057 | (77066) |
| Loans at amortized cost |  | 547588 | 808329 |
| Other financial assets |  | (46548) | 45890 |
| Other assets |  | (10405) | (22316) |
| Net defined benefit liabilities |  | (485) | (6965) |
| Insurance contract liabilities |  | (677404) | (1184594) |
| Reinsurance contract liabilities |  | (614999) | (46839) |
| Investment contract liabilities |  | 170081 | (559350) |
| Provisions |  | (8170) | (5063) |
| Derivative liabilities  |  | 3996 | (1074) |
| Other financial liabilities |  | 188315 | 231735 |
| Other liabilities  |  | (5688) | 22087 |
|  | W | (79362) | (827321) |

---

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

2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Cash and due from banks at amortized cost | W | 2538228 | 1695328 |
| Adjustments:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Available deposits of which expiration date exceeds<br> 3 months from the acquisition date |  | (712996) | (789528) |
| Restricted deposit |  | (184673) | (75801) |
|  | W | 1640559 | 829999 |

---

(d) The Group has prepared its statements of cash flows using the indirect method, and the significant non-cash activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| Changes in gains(losses) on valuation of securities at fair <br>&nbsp;&nbsp;&nbsp;&nbsp;value through other comprehensive income | W | (2073294) | 994881 |
| Write-off of loans at amortized costs |  | 13075 | 10664 |
| Recognition of right-of-use assets and lease liabilities |  | 25970 | 30745 |
| &nbsp;&nbsp;Reclassification of payables to property, plant and equipment and intangible assets |  | 120 | 71 |
| Additional provision for restoration |  | 2945 | 1177 |
| Interests payable for hybrid bonds |  | - | 1497 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**52. <u>Statements of cash flows (continued)</u>**

(e) Changes in liabilities resulting from financing activities for the years ended December 31, 2025 and 2024 are as

follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025 (\*1)** | **2025 (\*1)** | **2025 (\*1)** |
|  |  | **Debentures (\*2)** | **Lease liabilities** | **Total** |
| Beginning balance | W | 323030 | 93923 | 416953 |
| Changes in cash flows |  | 505831 | (38778) | 467053 |
| Amortization |  | 311 | 2553 | 2864 |
| Others  |  | 1585 | 20301 | 21886 |
| Ending balance | W | 830757 | 77999 | 908756 |

---

(\*1) Changes of other financial liabilities are not included.

(\*2) Changes of borrowings are included.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024 (\*1)** | **2024 (\*1)** | **2024 (\*1)** |
|  |  | **Debentures (\*2)** | **Lease liabilities** | **Total** |
| Beginning balance | W | 317165  | 101294  | 418459  |
| Changes in cash flows |  | 3909  | (38980) | (35071) |
| Amortization |  | 156  | 2937  | 3093  |
| Others  |  | 1800  | 28672  | 30472  |
| Ending balance | W | 323030  | 93923  | 416953  |

---

(\*1) Changes of other financial liabilities are not included.

(\*2) Changes of borrowings are included.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**53. <u>Investment in subsidiaries</u>**

(a) Summary of financial information of the subsidiaries

*i) The summarized financial information of the controlling company and the Group's subsidiaries that are consolidated as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025 (\*1)** | **2025 (\*1)** | **2025 (\*1)** | **2024 (\*1)** | **2024 (\*1)** | **2024 (\*1)** |
| **Investees** |  | **Assets** | **Liabilities** | **Equity** | **Assets** | **Liabilities** | **Equity** |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. (separate) | W  | 59448032 | 53208738 | 6239294 | 59617796 | 52555494 | 7062302 |
| &nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. |  | 276247 | 170409 | 105838 | 273230 | 182938 | 90292 |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. |  | 125738 | 12755 | 112983 | 142109 | 16544 | 125565 |
| &nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. |  | 98547 | 3139 | 95408 | 50411 | 1983 | 48428 |
| &nbsp;&nbsp;&nbsp;Mirae Asset Maps Global Infra Private Special Asset Trust 2 |  | 5167 | 5 | 5162 | 4934 | 4 | 4930 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Credit Fund 3 |  | 172575 | 183 | 172392 | 177990 | 187 | 177803 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A |  | 23534 | 1621 | 21913 | 23867 | 1814 | 22053 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B |  | 72593 | 4402 | 68191 | 67852 | 6505 | 61347 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 |  | 30592 | 19 | 30573 | 63687 | 38 | 63649 |
| &nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 |  | 56238 | 5321 | 50917 | 73778 | 7375 | 66403 |
| &nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 |  | 61167 | 2464 | 58703 | 48924 | 3975 | 44949 |
| &nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust |  | 119632 | 9542 | 110090 | 89148 | 10489 | 78659 |
| &nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust |  | 96841 | 7125 | 89716 | 75519 | 7327 | 68192 |
| &nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust |  | 240525 | 14373 | 226152 | 186185 | 14996 | 171189 |
| &nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) |  | 40819 | 1339 | 39480 | 33207 | 2919 | 30288 |
| &nbsp;&nbsp;&nbsp;Pinestreet BDC Global Corporate FoF 38 |  | 287241 | 5852 | 281389 | - | - | - |
| &nbsp;&nbsp;&nbsp;Pinestreet IG Global Corporate FoF 39 |  | 102596 | 6082 | 96514 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan BDC OClC Private investment Trust No.1 (H) |  | 288804 | 8973 | 279831 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan SLAMS TPA Private Fund |  | 107489 | 203 | 107286 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Apollo SFG Private Investment Trust No.1(USD) |  | 113335 | 61 | 113274 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Apollo ADS Private Investment Trust No.1(H) |  | 48794 | 2 | 48792 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan BDC OCIC Private Investment Trust No.2(H) |  | 48794 | 2 | 48792 | - | - | - |
|  | W | 61865300 | 53462610 | 8402690 | 60928637 | 52812588 | 8116049 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**53. <u>Investment in subsidiaries (continued)</u>**

(a) Summary of financial information of the subsidiaries (continued)

*ii) The summarized income information of the controlling company and the Group's subsidiaries that are consolidated for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025 (\*1)** | **2025 (\*1)** | **2025 (\*1)** | **2024 (\*1)** | **2024 (\*1)** | **2024 (\*1)** |
| **Investees** |  | **Operating profit (\*2)** | **Net profit** | **Total comprehensive income** | **Operating profit (\*2)** | **Net profit** | **Total comprehensive income** |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. (separate) | W  | 7483755 | 515916 | (138046) | 6725864 | 533681 | (1057350) |
| &nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. |  | 296374 | 847 | 762 | 258368 | (1773) | (1798) |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. |  | 16129 | (6485) | (11443) | 18591 | (1105) | 6129 |
| &nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. |  | 2566 | (2307) | (2290) | 1337 | (1198) | (1262) |
| &nbsp;&nbsp;&nbsp;Mirae Asset Maps Global Infra Private Special Asset Trust 2 |  | 256 | 233 | 233 | 492 | (2291) | (2291) |
| &nbsp;&nbsp;&nbsp;Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2(\*3) |  | - | - | - | 63 | 16 | 16 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Credit Fund 3 |  | 7314 | 1328 | 1328 | 36871 | 36498 | 36498 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A |  | 2695 | 1424 | 1424 | 4466 | 1944 | 1944 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B |  | 6128 | 2597 | 2597 | 13974 | 6644 | 6644 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 |  | 7632 | 7195 | 7181 | 12943 | 12742 | 12711 |
| &nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 |  | 7099 | 3849 | 3837 | 16171 | 6672 | 6665 |
| &nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 |  | 7555 | 2892 | 2892 | 8333 | 2840 | 2840 |
| &nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust |  | 9596 | 5233 | 5330 | 20965 | 8194 | 8089 |
| &nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust |  | 6905 | 2158 | 2191 | 10489 | 297 | 346 |
| &nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust |  | 23477 | 14097 | 14160 | 35795 | 16760 | 16821 |
| &nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) |  | 5887 | 3568 | 3568 | 5081 | 1743 | 1743 |
| &nbsp;&nbsp;&nbsp;Pinestreet BDC Global Corporate FoF 38 |  | 15350 | (4187) | (4187) | - | - | - |
| &nbsp;&nbsp;&nbsp;Pinestreet IG Global Corporate FoF 39 |  | 7904 | (162) | (162) | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan BDC OClC Private investment Trust No.1 (H) |  | 14130 | (4023) | (4023) | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan SLAMS TPA Private Fund |  | 12997 | 6986 | 6986 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Apollo SFG Private Investment Trust No.1(USD) |  | 1147 | 370 | 2289 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Apollo ADS Private Investment Trust No.1(H) |  | 1198 | (95) | (95) | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan BDC OCIC Private Investment Trust No.2(H) |  | 1198 | (94) | (94) | - | - | - |
|  | W | 7937292 | 551340 | (105562) | 7169803 | 621664 | (962255) |

---

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

(\*2) Income from operations is the aggregate amount of insurance operating income and investment operating income on

the statement of comprehensive income.

(\*3) Excluded from consolidation due to liquidation during the year ended December 31, 2024.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**54. <u>Interests in unconsolidated structured entities</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)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:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets-backed securitization | &nbsp;&nbsp;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.  |
| &nbsp;&nbsp;Structured financing | &nbsp;&nbsp;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. |
| &nbsp;&nbsp;Investment fund | &nbsp;&nbsp;Beneficiary certificates refer to financial instruments that raise a small amount of funds from a large number of the public and distribute the amount according to the performance of profits obtained by investing the amount in stocks or bonds. The Group is involved in beneficiary certificates by investing its stake in various investment funds. |

---

*i) The size of unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Total assets : |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets-backed securitization | W | 96342197 | 116216980 |
| &nbsp;&nbsp;&nbsp;Structured financing |  | 67404059 | 67977476 |
| &nbsp;&nbsp;&nbsp;Investment fund |  | 112460471 | 120249437 |
|  | W | 276206727 | 304443893 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**54. <u>Interests in unconsolidated structured entities (continued)</u>**

(b) The nature of risks related to interests in unconsolidated structured entities

*i) The carrying amount of the assets and liabilities relating to its interests in unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Assets-backed**<br>**securitization** | **Structured**<br>**financing** | **Investment**<br>**fund** | **Total** |
| **Assets recognized in the consolidated financial statements:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | W | - | 1661685 | - | 1661685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets measured at fair value <br>through profit or loss |  | 43932 | 214149 | 6487172 | 6745253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other<br>comprehensive income |  | 3081459 | 23 | - | 3081482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 100000 | - | - | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | - | - | 39474 | 39474 |
|  | W | 3225391 | 1875857 | 6526646 | 11627894 |
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Assets-backed**<br>**securitization** | **Structured**<br>**financing** | **Investment**<br>**fund** | **Total** |
| **Assets recognized in the consolidated financial statements:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;2037835 | &nbsp;&nbsp;- | &nbsp;&nbsp;2037835 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets measured at fair value <br>through profit or loss |  | &nbsp;&nbsp;122745 | &nbsp;&nbsp;211100 | &nbsp;&nbsp;5628486 | &nbsp;&nbsp;5962331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other<br>comprehensive income |  | &nbsp;&nbsp;3364817 | &nbsp;&nbsp;2504 | &nbsp;&nbsp;- | &nbsp;&nbsp;3367321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;100000 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;27462 | &nbsp;&nbsp;27462 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;3587562 | &nbsp;&nbsp;2251439 | &nbsp;&nbsp;5655948 | &nbsp;&nbsp;11494949 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**54. <u>Interests in unconsolidated structured entities (continued)</u>**

(b) The nature of risks related to interests in unconsolidated structured entities (continued)

*ii) The maximum risk exposure of the Group relating to its interests in unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Assets-backed**<br>**securitization** | **Structured**<br>**financing** | **Investment**<br>**fund** | **Total** |
| Assets held | W | 3225391 | 1875857 | 6526646 | 11627894 |
| Unused credit provided |  | - | 240621 | - | 240621 |
| Capital commitments |  | - | 124512 | 1192097 | 1316609 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 3225391 | 2240990 | 7718743 | 13185124 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Assets-backed**<br>**securitization** | **Structured**<br>**financing** | **Investment**<br>**fund** | **Total** |
| Assets held | W | 3587561 | 2251439 | 5655949 | 11494949 |
| Unused credit provided |  | - | 141146 | - | 141146 |
| Capital commitments |  | - | 124513 | 1249566 | 1374079 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 3587561 | 2517098 | 6905515 | 13010174 |

---

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**55. <u>Segment information</u>**

(a) The Group is organized into two segments (financial and non-financial). The financial segment is engaged in insurance and asset management, and the non-financial segment is engaged in insurance agency and brokerage and senior care facility operations.

(b)Information by segment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financing** | **Non-financing** | **Consolidation adjustments (\*)** | **Total** |
| &nbsp;&nbsp;&nbsp;Operating revenue | W | 7638352 | 298940 | (120478) | 7816814 |
| &nbsp;&nbsp;&nbsp;Operating expenses |  | 6804490 | 300489 | (80153) | 7024826 |
| &nbsp;&nbsp;&nbsp;Operating profit |  | 833862 | (1549) | (40325) | 791988 |
| &nbsp;&nbsp;&nbsp;Non-operating income (expenses) |  | (179) | (290) | (977) | (1446) |
| &nbsp;&nbsp;&nbsp;Share of profit (loss) from associates |  | - | - | (2428) | (2428) |
| &nbsp;&nbsp;&nbsp;Profit before income taxes |  | 833683 | (1839) | (43730) | 788114 |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 280883 | (379) | (98) | 280406 |
| &nbsp;&nbsp;&nbsp;Profit for the period | W | 552800 | (1460) | (43632) | 507708 |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Financing** | **Non-financing** | **Consolidation adjustments (\*)** | **Total** |
| &nbsp;&nbsp;&nbsp;Operating revenue | W | 6910098 | 259705 | (125429) | 7044374 |
| &nbsp;&nbsp;&nbsp;Operating expenses |  | 6080794 | 271048 | (32550) | 6319292 |
| &nbsp;&nbsp;&nbsp;Operating profit |  | 829304 | (11343) | (92879) | 725082 |
| &nbsp;&nbsp;&nbsp;Non-operating income (expenses) |  | (2951) | 127 | 77 | (2747) |
| &nbsp;&nbsp;&nbsp;Share of profit (loss) from associates |  | - | - | (893) | (893) |
| &nbsp;&nbsp;&nbsp;Profit before income taxes |  | 826353 | (11216) | (93695) | 721442 |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 201718 | (8245) | (432) | 193041 |
| &nbsp;&nbsp;&nbsp;Profit for the period | W | 624635 | (2971) | (93263) | 528401 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**55. <u>Segment information (continued)</u>**

(c)Assets and liabilities by segment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financing** | **Non-financing** | **Consolidation adjustments (\*)** | **Total** |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | W | 1616205 | 24354 | - | 1640559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks |  | 868081 | 29587 | - | 897668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities |  | 54265613 | 5546 | (1854499) | 52416660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in associates and joint ventures |  | 339581 | - | (300107) | 39474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans |  | 2258061 | - | - | 2258061 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 494226 | - | - | 494226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | 1648738 | 315305 | (49186) | 1914857 |
|  | W | 61490505 | 374792 | (2203792) | 59661505 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 47912934 | - | - | 47912934 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | 56378 | - | - | 56378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | 1541684 | - | - | 1541684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 3778065 | 173548 | (7502) | 3944111 |
|  | W | 53289061 | 173548 | (7502) | 53455107 |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Financing** | **Non-financing** | **Consolidation adjustments (\*)** | **Total** |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | W | 801396 | 28603 | - | 829999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks |  | 850736 | 14592 | - | 865328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities |  | 53984180 | 2694 | (792233) | 53194641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in associates and joint ventures |  | 274581 | - | (247119) | 27462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans |  | 2809454 | - | - | 2809454 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 107668 | - | - | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | 1776981 | 277752 | (46017) | 2008716 |
|  | W | 60604996 | 323641 | (1085369) | 59843268 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 48420988 | - | - | 48420988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | 98058 | - | - | 98058 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | 1332468 | - | - | 1332468 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 2776249 | 184921 | (10020) | 2951150 |
|  | W | 52627763 | 184921 | (10020) | 52802664 |

---

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

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**55. <u>Segment information (continued)</u>**

(d) As the Group mainly operates its business in the Republic of Korea, transactions mostly incur within the Republic of Korea, accordingly, information by geographical region is not calculated.

(e) There is no single retail customer who accounts for more than 10% of the Group's operating income for the year ended December 31, 2025.

**56. <u>Effects of changes in accounting policies</u>**

K-IFRS No. 1117 requires that, for dividends arising from participating insurance contracts, liabilities be measured using estimates of the related cash flows and discount rates that reflect the assumptions and risks associated with those cash flows.

Specifically, in measuring insurance liabilities, the Group is required to reflect, without undue cost or effort, reasonable and supportable information available faithfully representing the facts without incorporating the Group's own plans or intentions. In addition, the effects of enacted or substantively enacted laws or regulations are reflected in the measurement of insurance liabilities only when such enactment or amendment is substantively certain, and neutral estimates that are free from bias are required to be used in estimating the related cash flows.

Accordingly, insurers do not derive the asset return scenarios used in measuring insurance liabilities (best estimate liabilities, the remaining coverage component) based on item-by-item disposal plans for assets currently held and managed. Instead, such scenarios are determined based on risk-free interest rates that are consistent with the discount rates prescribed under supervisory regulations for discounting the present value of fulfilment cash flows.

In response to these requirements, upon the adoption of K-IFRS No. 1117 in 2023, the Group estimated future dividend cash flows for participating insurance contracts by neutrally reflecting reasonable and supportable information, including the Group's experience statistics such as historical dividend amounts arising from the relevant contracts, as well as management's asset management plans and risk management strategies. In addition, the Group determined whether policyholder dividends would arise by considering expected gains or losses on the disposal of assets only in cases where specific disposal plans for such assets had been finalized by management, such as when assets were disposed of or when concrete disposal plans had been approved by the board of directors. Where policyholder dividends were determined to arise, the related cash flows were reflected in the measurement of insurance liabilities.

As a result of measuring insurance liabilities related to policyholder dividends arising from expected future cash flows of participating insurance contracts in accordance with the requirements of K-IFRS No. 1117, there was no insurance liability required to be recognized by the Group.

The Group concluded that, if dividend payment obligations related to participating insurance contracts were measured in accordance with the requirements of K-IFRS No. 1117 from 2023 when K-IFRS No. 1117 was adopted, such measurement would conflict with the "objective of general purpose financial reporting" as set out in the Conceptual Framework for Financial Reporting and would constitute the "extremely rare circumstances in which compliance with a requirement would be so misleading" as specified in paragraph 19 of K-IFRS No. 1001.

Accordingly, the Group had measured and recognized as liabilities the expected future comprehensive obligations to policyholders (policyholder dividends) arising from unrealized gains or losses on assets as of the end of the reporting period, by applying the methodology prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

**56. <u>Effects of changes in accounting policies (continued)</u>**

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

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

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

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

In December 2025, the Financial Supervisory Service, through its response titled "Inquiry Response on the Accounting Treatment of Policyholders' Equity Adjustments (Accounting Departure) by Life Insurance Companies," stated that it is difficult to conclusively determine that applying K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts of life insurance companies would be misleading to users of financial statements. The Financial Supervisory Service further noted that, as K-IFRS No. 1117 has passed its transition guidance period and has become stabilized, there is a need to resolve unnecessary controversies arising from the continued application of accounting departures, and that some views suggest that, if domestic life insurance companies continue to apply accounting departures, Korea may not be regarded as a jurisdiction that has fully adopted IFRS. Taking these considerations into account, the Financial Supervisory Service concluded that it is appropriate to discontinue the application of accounting departures at the current point in time.

Furthermore, the Financial Supervisory Service responded that, even if management were to conclude that complying with K-IFRS No. 1117 with respect to dividend payment obligations related to participating insurance contracts would conflict with the "objective of general purpose financial reporting" as set out in the Conceptual Framework and could therefore be misleading to users of financial statements, it would nevertheless be difficult, from a supervisory perspective, to continue to permit the application of accounting departures.

After comprehensively considering the circumstances described above, the Group determined that, even if compliance with the requirements of K-IFRS No. 1117 for participating insurance contracts could potentially result in an understatement of insurance liabilities compared to prior-period accounting practices and thereby give rise to a possibility of being misleading to users of financial statements due to a conflict with the objective of general purpose financial reporting, the supervisory framework no longer permits the Group's previous accounting treatment that had applied the requirements of K-IFRS No. 1117 differently. Accordingly, the Group changed its accounting policy to measure insurance liabilities in compliance with the requirements of K-IFRS No. 1117 from the end of the current period.

------

SHINHAN LIFE INSURANCE CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements (Continued)**

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

*(In millions of Korean won)*

**56. <u>Effects of changes in accounting policies (continued)</u>**

In addition, through the above-mentioned response, the Financial Supervisory Service stated that, where a life insurance company changes the accounting treatment of dividend payment obligations related to participating insurance contracts from an accounting departure (policyholders' equity adjustments) to the application of K-IFRS No. 1117, such change should be accounted for as a change in accounting policy in accordance with K-IFRS No. 1008. Accordingly, the Group applied the effects of the change retrospectively.<br>

As of December 31, 2025, policyholders' equity adjustments calculated under the previous method prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business amounted to W1,094 million. In accordance with K-IFRS No. 1008 *Changes in Accounting Policies*, the effects of the retrospective restatement of prior reporting period resulting from the application of K-IFRS No. 1117 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  |  | **Assets** | **Liabilities** | **Equity** | **Profit for the year** | **Total comprehensive income(loss) for the year** |
| **Before the Change** | W | 59843268 | 52802301 | 7040967 | 528401 | (1056025) |
| **Adjustments:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholders' equity adjustments |  | - | 362 | (362) | - | 664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | - | (96) | 96 | - | (175) |
| **After the Change** | W | 59843268 | 52802567 | 7040701 | 528401 | (1055536) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **As of January 1, 2024** | **As of January 1, 2024** | **As of January 1, 2024** |
|  |  | **Assets** | **Liabilities** | **Equity** |
| **Before the Change** | W | 58641345 | 50218211 | 8423134 |
| **Adjustments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholders' equity adjustments |  | - | 1025 | (1025) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | - | (271) | 271 |
| **After the Change** | W | 58641345 | 50218965 | 8422380 |

---

------

## Exhibit 99.2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SHINHAN LIFE INSURANCE CO., LTD.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Separate Financial Statements**

**December 31, 2025 and 2024**

**(With Independent Auditors' Report Thereon)**

------

Contents

---

| | |
|:---|:---|
|  | **Page** |
| **Independent Auditors' Report** | **1** |
| Separate Statements of Financial Position | 3 |
| Separate Statements of Comprehensive Income | 5 |
| Separate Statements of Changes in Equity | 7 |
| Separate Statements of Cash Flows | 9 |
| Notes to the Separate Financial Statements | 10 |
| **Independent Auditors' Review Report on Internal Control over Financial Reporting** | **218** |
| ICFR Operating Status Report by CEO and IAM | 219 |

---

------

**Independent Auditors' Report**

(<u>Based on a report originally issued in Korean</u>)

To the Board of Directors and Shareholder

Shinhan Life Insurance Co., Ltd.

**Opinion**

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

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

**Basis for Opinion**

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

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

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

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

Those charged with governance are responsible for overseeing the Company's financial reporting process.

**Auditor's Responsibilities for the Audit of the Separate Financial Statements**

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separated Statements of Financial Position (Continued)**

As of December 31, 2025 and 2024

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

KPMG Samjong Accounting Corp.

March 3, 2026

Seoul, Korea

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Financial Position**

As of December 31, 2025 and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Note** |  | **December 31,** <br>**2025** | **December 31, 2024** | **January 1, 2024** |
| &nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | *589114951* | W | 2286855 | 1528871 | 1640481 |
| &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss  | *589122449* |  | 13265276 | 11579983 | 11478700 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through<br>other comprehensive income | *589132449* |  | 35288458 | 37647435 | 35345575 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost  | *5891424* |  | 3950344 | 3931915 | 4348023 |
| &nbsp;&nbsp;&nbsp;Investments in subsidiaries and associates | *15* |  | 339581 | 274581 | 274581 |
| &nbsp;&nbsp;&nbsp;Loans and receivables at amortized cost  | *5891649* |  | 3452237 | 3954082 | 4707291 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | *626* |  | 494226 | 107668 | 62815 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | *1749* |  | 66311 | 77272 | 92941 |
| &nbsp;&nbsp;&nbsp;Property and equipment | *1849* |  | 68917 | 67924 | 76122 |
| &nbsp;&nbsp;&nbsp;Intangible assets | *1949* |  | 166972 | 209378 | 235402 |
| &nbsp;&nbsp;&nbsp;Derivative assets | *5892249* |  | 34474 | 117522 | 116378 |
| &nbsp;&nbsp;&nbsp;Current tax assets | *4749* |  | 5661 | 82404 | 70658 |
| &nbsp;&nbsp;&nbsp;Investment property | *2124* |  | 13973 | 14185 | 14397 |
| &nbsp;&nbsp;&nbsp;Net defined benefit assets | *30* |  | 4868 | 16334 | 34257 |
| &nbsp;&nbsp;&nbsp;Other assets | *23* |  | 9879 | 8242 | 10694 |
| &nbsp;&nbsp;&nbsp;**Total assets** |  | W | 59448032 | 59617796 | 58508315 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Financial Position (Continued)**

As of December 31, 2025 and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Note** |  | **December 31,** <br>**2025** | **December 31, 2024** | **January 1, 2024** |
| &nbsp;&nbsp;&nbsp;**Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Insurance contract liabilities for: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating insurance contracts |  | W | 5089927 | 5318700 | 4909601 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating insurance contracts |  |  | 37008315 | 38130097 | 35393987 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable insurance contracts |  |  | 5814381 | 4970853 | 5225398 |
|  | *625* |  | 47912623 | 48419650 | 45528986 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities | *626* |  | 56378 | 98058 | 93120 |
| &nbsp;&nbsp;&nbsp;Investment contract liabilities | *5892749* |  | 1541684 | 1332468 | 1831826 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities  | *5892249* |  | 870822 | 501592 | 239940 |
| &nbsp;&nbsp;&nbsp;Debentures | *58928* |  | 798392 | 299487 | 299331 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities  | *589293449* |  | 665846 | 461215 | 238028 |
| &nbsp;&nbsp;&nbsp;Lease liabilities  | *5891749* |  | 66338 | 77399 | 91566 |
| &nbsp;&nbsp;&nbsp;Provisions | *31* |  | 101634 | 70158 | 75565 |
| &nbsp;&nbsp;&nbsp;Current tax liabilities | *4749* |  | 14019 | 79 | 55 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | *47* |  | 1152838 | 1264118 | 1631570 |
| &nbsp;&nbsp;&nbsp;Other liabilities | *32* |  | 28164 | 31270 | 32533 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** |  |  | 53208738 | 52555494 | 50062520 |
| &nbsp;&nbsp;&nbsp;**Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital stocks | *33* |  | 578274 | 578274 | 578274 |
| &nbsp;&nbsp;&nbsp;Hybrid bonds | *33* |  | - | 299452 | 299452 |
| &nbsp;&nbsp;&nbsp;Capital surplus | *33* |  | 820023 | 820023 | 820023 |
| &nbsp;&nbsp;&nbsp;Capital adjustments | *33* |  | 891 | 1461 | 1461 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | *33* |  | (2128291) | (1474328) | 116664 |
| &nbsp;&nbsp;&nbsp;Retained earnings  | *33* |  | 6968397 | 6837420 | 6629921 |
| &nbsp;&nbsp;&nbsp;**Total equity** |  |  | 6239294 | 7062302 | 8445795 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and equity** |  | W | 59448032 | 59617796 | 58508315 |

---

*See accompanying notes to the separate financial statements.*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Comprehensive Income**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won, except per share data)* | **Note** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Insurance revenue | *2535* | W | 3071866 | 2847305 |
| &nbsp;&nbsp;&nbsp;Reinsurance revenue | *2636* |  | 164353 | 52963 |
| &nbsp;&nbsp;&nbsp;Insurance service expenses | *25353849* |  | 2282814 | 2069009 |
| &nbsp;&nbsp;&nbsp;Reinsurance service expenses | *2636* |  | 150275 | 57843 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | *38* |  | 98977 | 115035 |
| &nbsp;&nbsp;&nbsp;**Insurance service result** |  |  | &nbsp;&nbsp;&nbsp;&nbsp;704153 | &nbsp;&nbsp;&nbsp;&nbsp;658381 |
| &nbsp;&nbsp;&nbsp;Insurance finance income and investment income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance income from insurance contracts issued | *2537* |  | 204421 | 397712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance income from reinsurance contracts held | *2637* |  | 68751 | 24101 |
| &nbsp;&nbsp;Interest income | *94049* |  | 1464548 | 1512259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on financial assets at fair value <br>through profit or loss  | *912* |  | 1931446 | 1015803 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on disposal of securities at fair value through other comprehensive income  | *913* |  | 81508 | 79735 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on securities at amortized cost | *914* |  | 17064 | 22284 |
| &nbsp;&nbsp;Gains on disposal of loans at amortized cost | *912* |  | 4058 | 103 |
| &nbsp;&nbsp;Reversal of credit loss allowance | *4149* |  | 13708 | 9392 |
| &nbsp;&nbsp;Gains on foreign currency transaction | *42* |  | 247458 | 645182 |
| &nbsp;&nbsp;Gains on derivatives | *2249* |  | 164553 | 65275 |
| &nbsp;&nbsp;Dividend income | *944* |  | 37769 | 32510 |
| &nbsp;&nbsp;Fees and commission income | *4349* |  | 9481 | 12563 |
| &nbsp;&nbsp;Other investment income | *4549* |  | 2771 | 8677 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;4247536 | &nbsp;&nbsp;&nbsp;&nbsp;3825596 |
| &nbsp;&nbsp;&nbsp;Insurance finance expenses and investment expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance expenses from insurance contracts issued | *2537* |  | 2990559 | 2103148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance finance expenses from reinsurance contracts held | *2637* |  | 57872 | 24045 |
| &nbsp;&nbsp;Interest expenses | *94049* |  | 66848 | 78142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on financial assets at fair value <br>through profit or loss | *91249* |  | 268443 | 629126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on disposal of securities at fair value through other comprehensive income | *913* |  | 64118 | 96475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on securities at amortized cost | *914* |  | 6070 | 565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on disposal of loans at amortized cost | *9* |  | 622 | 426 |
| &nbsp;&nbsp;Provision for credit loss allowance | *4149* |  | 18702 | 16087 |
| &nbsp;&nbsp;Losses on foreign currency transaction | *42* |  | 124147 | 12163 |
| &nbsp;&nbsp;Losses on derivatives | *2249* |  | 423970 | 687835 |
| &nbsp;&nbsp;Investment administrative expenses | *3949* |  | 18342 | 16291 |
| &nbsp;&nbsp;Other investment expenses | *4549* |  | 115310 | 81105 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;4155003 | 3745408 |
| &nbsp;&nbsp;&nbsp;**Net finance result** |  |  | 92533 | 80188 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won, except per share data)* | **Note** | **2025** | **2024** |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Comprehensive Income (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Operating profit** |  | W | 796686 | 738569 |
| &nbsp;&nbsp;&nbsp;Non-operating expenses | *46* |  | (148) | (2961) |
| **Profit before income taxes** |  |  | 796538 | 735608 |
| Income tax expense | *47* |  | 280622 | 201927 |
| **Profit for the period** |  |  | 515916 | 533681 |
| &nbsp;&nbsp;&nbsp;**Other comprehensive income (loss) for the period, net of income tax** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Items that may be subsequently reclassified to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on valuation of securities at<br>fair value through other comprehensive income |  |  | (1476988) | 730443 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on valuation of derivatives held for cash flow hedges |  |  | (300075) | 45219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net finance income (expenses) from insurance contracts issued |  |  | 1278873 | (2353403) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from reinsurance contracts held |  |  | (153671) | (1544) |
|  |  |  | (651861) | (1579285) |
| &nbsp;&nbsp;&nbsp;Items that will not be subsequently reclassified to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on valuation of securities at fair value through other comprehensive income  |  |  | (619) | 848 |
| &nbsp;&nbsp;Remeasurements of defined benefit liabilities |  |  | (1483) | (12594) |
|  |  |  | (2102) | (11746) |
| &nbsp;&nbsp;&nbsp;Total other comprehensive loss, net of income tax | *132233* |  | (653963) | (1591031) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive loss for the period** |  | W | (138047) | (1057350) |
| &nbsp;&nbsp;&nbsp;**Earnings per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings per share and diluted earnings per share in won | *50* | W | 4403 | 4521 |

---

*See accompanying notes to the separate financial statements*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Changes in Equity**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In millions of Korean won)* |  | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** |
|  |  | &nbsp;&nbsp;**Capital stock** | &nbsp;&nbsp;**Hybrid bonds** | &nbsp;&nbsp;**Capital surplus** | &nbsp;&nbsp;**Capital adjustments** | &nbsp;&nbsp;**Accumulated other compre-hensive income (loss)** | &nbsp;&nbsp;**Retained earnings** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance at January 1, 2024 before the change** | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820023 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;117417 | &nbsp;&nbsp;6629922 | &nbsp;&nbsp;8446549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effects of changes in accounting policies |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(754) | &nbsp;&nbsp;- | &nbsp;&nbsp;(754) |
| &nbsp;&nbsp;**Balance at January 1, 2024 after the change** |  | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820023 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;116663 | &nbsp;&nbsp;6629922 | &nbsp;&nbsp;8445795 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income for the period:**  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Profit for the period** |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;533681 | &nbsp;&nbsp;533681 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other comprehensive income, net of income tax:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains on valuation of securities at fair value through other comprehensive income  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;731290 | &nbsp;&nbsp;- | &nbsp;&nbsp;731290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains on valuation of derivatives intended for cash flow hedges |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;45219 | &nbsp;&nbsp;- | &nbsp;&nbsp;45219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from insurance contracts issued |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2353403) | &nbsp;&nbsp;- | &nbsp;&nbsp;(2353403) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from reinsurance contracts held |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1544) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of defined benefit plans |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(12594) | &nbsp;&nbsp;- | &nbsp;&nbsp;(12594) |
| &nbsp;&nbsp;**Total other comprehensive income**  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1591032) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1591032) |
| &nbsp;&nbsp;**Other changes in equity** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(165338) | &nbsp;&nbsp;(165338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividend |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(150004) | &nbsp;&nbsp;(150004) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on hybrid bonds |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10800) | &nbsp;&nbsp;(10800) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Reclassification adjustments from other comprehensive income to retained earnings** |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;41 | &nbsp;&nbsp;(41) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Balance at December 31, 2024**  | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820023 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;(1474328) | &nbsp;&nbsp;6837420 | &nbsp;&nbsp;7062302 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Changes in Equity (Continued)**

For the years ended December 31, 2025 and 2024

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Changes in Equity (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In millions of Korean won)* |  | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** | &nbsp;&nbsp;**Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.** |
|  |  | &nbsp;&nbsp;**Capital stock** | &nbsp;&nbsp;**Hybrid bonds** | &nbsp;&nbsp;**Capital surplus** | &nbsp;&nbsp;**Capital adjustments** | &nbsp;&nbsp;**Accumulated other compre-hensive income (loss)** | &nbsp;&nbsp;**Retained earnings** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance at January 1, 2025** | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;299452 | &nbsp;&nbsp;820023 | &nbsp;&nbsp;1461 | &nbsp;&nbsp;(1474328) | &nbsp;&nbsp;6837420 | &nbsp;&nbsp;7062302 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income for the period:**  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Profit for the period** |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;515916 | &nbsp;&nbsp;515916 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other comprehensive income, net of income tax:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses on valuation of securities at fair value through other comprehensive income  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1477607) | &nbsp;&nbsp;- | &nbsp;&nbsp;(1477607) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses on valuation of derivatives intended for cash flow hedges |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income from insurance contracts issued |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(300075) | &nbsp;&nbsp;- | &nbsp;&nbsp;(300075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expenses from reinsurance contracts held |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1278873 | &nbsp;&nbsp;- | &nbsp;&nbsp;1278873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of defined benefit plans |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(153671) | &nbsp;&nbsp;- | &nbsp;&nbsp;(153671) |
| &nbsp;&nbsp;**Total other comprehensive income**  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(653963) | &nbsp;&nbsp;- | &nbsp;&nbsp;(653963) |
| &nbsp;&nbsp;**Other changes in equity** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(378307) | &nbsp;&nbsp;(378307) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payments |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(22) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of hybrid bonds |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(299452) | &nbsp;&nbsp;- | &nbsp;&nbsp;(548) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(300000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on hybrid bonds |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(6632) | &nbsp;&nbsp;(6632) |
| &nbsp;&nbsp;**Balance at December 31, 2025**  | &nbsp;&nbsp;W | &nbsp;&nbsp;578274 | &nbsp;&nbsp;- | &nbsp;&nbsp;820023 | &nbsp;&nbsp;891 | &nbsp;&nbsp;(2128291) | &nbsp;&nbsp;6968397 | &nbsp;&nbsp;6239294 |

---

*See accompanying notes to the separate financial statements*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Separate Statements of Cash Flows**

For the years ended December 31, 2025 and 2024

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;Profit for the period | W | 515916 | 533681 |
| &nbsp;&nbsp;Adjustment for profit or loss (Note 51) |  | (98705) | (370877) |
| &nbsp;&nbsp;Changes in assets and liabilities (Note 51) |  | 91919 | (846581) |
| &nbsp;&nbsp;Income tax paid |  | (21922) | (11871) |
| &nbsp;&nbsp;Interest received |  | 1011900 | 1016106 |
| &nbsp;&nbsp;Interest paid |  | (26098) | (17948) |
| &nbsp;&nbsp;Dividends received |  | 35710 | 38076 |
| **Net cash inflow from operating activities** |  | 1508720 | 340586 |
| **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;Disposal of financial assets at fair value through profit or loss |  | 690272 | 1871007 |
| &nbsp;&nbsp;Acquisition of financial assets at fair value through profit or loss |  | (1730691) | (1698176) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of securities at fair value <br>through other comprehensive income  |  | 5100536 | 4095627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of securities at fair value through<br>other comprehensive income  |  | (4252168) | (4668975) |
| &nbsp;&nbsp;Disposal of securities at amortized cost |  | - | 407544 |
| &nbsp;&nbsp;Acquisition of investments in subsidiaries |  | (65000) | - |
| &nbsp;&nbsp;Cash inflows from hedging activities |  | 1030 | 3493 |
| &nbsp;&nbsp;Cash outflows from hedging activities |  | (153061) | (110122) |
| &nbsp;&nbsp;Disposal of property and equipment |  | 27 | 49 |
| &nbsp;&nbsp;Acquisition of property and equipment |  | (19298) | (12191) |
| &nbsp;&nbsp;Disposal of intangible assets |  | 958 | 51 |
| &nbsp;&nbsp;Acquisition of intangible assets |  | (32145) | (51506) |
| &nbsp;&nbsp;Decrease in receivables at amortized cost  |  | 5537 | 5701 |
| &nbsp;&nbsp;Increase in receivables at amortized cost  |  | (11033) | (4320) |
| **Net cash outflow from investing activities** |  | (465036) | (161818) |
| **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;Issuance of debentures |  | 498594 | - |
| &nbsp;&nbsp;Decrease in other financial liabilities  |  | - | (357) |
| &nbsp;&nbsp;Increase in other financial liabilities  |  | 50 | 667 |
| &nbsp;&nbsp;Decrease in lease liabilities  |  | (31089) | (28795) |
| &nbsp;&nbsp;Dividends paid |  | (378307) | (315343) |
| &nbsp;&nbsp;Redemption of hybrid bonds |  | (300000) | - |
| &nbsp;&nbsp;Interest paid to hybrid bonds |  | (8130) | (10800) |
| **Net cash outflow from financing activities** |  | (218882) | (354628) |
| **Net increase (decrease) in cash and cash equivalents** |  | 824802 | (175860) |
| &nbsp;&nbsp;**Changes in cash and cash equivalents due to** <br>**foreign currency translation** |  | 2687 | 2621 |
| **Cash and cash equivalents at the beginning of the period** |  | 777204 | 950443 |
| **Cash and cash equivalents at the end of the period** | W | 1604693 | 777204 |

---

*See accompanying notes to the separate financial statements.*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements** 

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

**1. <u>Reporting entity</u>**

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

**2. <u>Basis of preparation</u>**

**(a) Statement of compliance**

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

The separate financial statements are prepared in accordance with K-IFRS No. 1027 *'Separate Financial Statements'* in which parent, an investor in associates or joint ventures accounts for investments based on directly equity investments, not on the investee's reported performance and net assets.

**(b) Date of authorization**

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

**(c) Basis of measurement**

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

-derivative financial instruments measured at fair value

-financial instruments at fair value through profit or loss measured at fair value

-securities at fair value through other comprehensive income measured at fair value

-liabilities for cash-settled share-based payment arrangements measured at fair value

-net defined benefit liability (asset) recognized at the net of the present value of defined benefit obligations less the fair value of plan assets

-insurance and reinsurance contract assets and liabilities measured at the fulfilment cash flows

**(d) Functional and presentation currency**

The separate financial statements of the Company are prepared in the functional currency of the economic environment in which the Company operates. The separate financial statements of the Company are presented and reported in won, which is the Company's functional currency and the presentation currency.

**(e) Use of estimates and judgements**

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

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**2. <u>Basis of preparation (continued)</u>**

**(e) Use of estimates and judgements (continued)**

*i) Uncertainty in assumptions and estimates*

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

-Fair value of financial instruments

-Provision for credit loss and allowance for unused credit commitments

-Impairment of non-financial assets

-Defined benefit obligations

-Insurance contract liabilities and reinsurance contract assets(liabilities)

*ii) Fair value measurement* 

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

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

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

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

measurement date

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

- Level 3: Unobservable inputs to assets or liabilities

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

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**2. <u>Basis of preparation (continued)</u>**

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

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

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

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

*ii) Amendments to Korean IFRS 1117 'Insurance Contract'*

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**3. <u>Material accounting policies</u>** 

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

**(a) Investments in subsidiaries and associates**

The accompanying separate financial statements have been prepared on a stand-alone basis in accordance with K-IFRS No. 1027 *Separate Financial Statements*. The Company's investments in subsidiaries and associates are recorded at cost less impairment, if any, in accordance with K-IFRS No. 1027. The Company applied K-IFRS No. 1109 for beneficiary certificates using fair value method. Dividends received from its subsidiaries are recognized in profit or loss when the Company is entitled to receive the dividend.

**(b) Business combinations**

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

**(c) Revenue recognition criteria**

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

① Identification of contract

② Identification of performance obligation

③ Calculation of transaction price

④ Allocation of transaction price to performance obligation

⑤ Recognition of revenue when performance obligation is fulfilled

*i) Interest income and expenses*

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

*ii) Dividend income*

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

**(d) Cash and cash equivalents**

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(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).

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(g) Derivative financial instruments**

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

*i) Hedge accounting*

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

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

① Fair value hedge

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

② Cash flow hedge

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

③ Hedge of net investment

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

*ii) Other derivative instruments* 

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

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

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

**3. <u>Material accounting policies (continued)</u>**

**(h) Expected credit losses on financial assets** 

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

- Financial assets measured at amortized cost

- Debt instruments measured at fair value through other comprehensive income

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

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

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

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

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

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

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

- the delinquent days of financial assets exceed 90 days

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

*i) Measurement of expected credit loss*

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

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

*ii) Financial assets with credits impaired*

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

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

Provision for credit loss allowance on financial assets measured at amortized cost is deducted from the carrying amount of the asset. For debt instruments measured at fair value through other comprehensive income, the provision for credit loss allowance is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(j) Leases (continued)**

*i) Accounting treatment as the lessee(continued)*

Additional considerations for the Company's accounting as a lessee include:

Extension options and termination options are generally included in multiple real estate lease contracts. When estimating the lease term, the Company considers all relevant facts and circumstances that create an economic incentive to exercise the option to extend the lease, or not to exercise the option to terminate the lease. Period covered by an extension option (or period covered by termination option) is included in lease term only if the lessee is reasonably certain to exercise (or not to exercise) the option. If the lessee and the lessor have the right to terminate without the consent of the other parties, the termination period shall be determined in consideration of the economic disadvantages incurred in terminating the contract. When significant events occur or there are significant changes in circumstances that have affected the lessee's control and the lease term before, the parties reassess whether they are quite certain to exercise the option of extension (or not).

*ii) Accounting treatment as the lessor*

The Company leases various types of assets such as vehicles and machinery under operating and finance lease contracts, with lease terms individually negotiated and comprising various contract terms. Methods employed by the Company to manage risks associated with all rights retained in the underlying assets include repurchase agreements and residual value guarantees.

① Finance Lease

For finance leases, the Company recognizes a finance lease receivable equal to the net investment in the lease. Any difference between the carrying amount of the leased asset at the commencement date and its fair value is recognized as a gain or loss on lease asset disposal in the current period. Furthermore, interest income is recognized using the effective interest rate method on the Company's net investment in finance leases receivable outstanding. Direct costs incurred in connection with finance leases are included in the initial recognition of finance lease receivables and are amortized over the lease term, reducing revenue recognized over the lease term.

② Operating Lease

For operating leases, lease income is recognized on a straight-line basis over the lease term. Direct costs incurred in the negotiation and contract stages of operating leases are recognized in addition to the carrying amount of the underlying asset. Additionally, depreciation of operating lease assets is accounted for similarly to depreciation of other similar assets owned by the Company.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(k) Property, plant, and equipment** 

Land is not depreciated. Other property and equipment are depreciated on a straight-line method which is the most appropriately reflect the expected consumption pattern of the future economic benefits inherent in the asset over the estimated useful lives, for the acquisition cost after subtracting the residual value. The estimated useful lives for the current and comparative periods are as follows:

The estimated useful life for the years ended December 31, 2025 and 2024 are as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Expected useful life** |
| &nbsp;&nbsp;Building | &nbsp;&nbsp;50 years |
| &nbsp;&nbsp;Structure | &nbsp;&nbsp;20 years |
| &nbsp;&nbsp;Rental property | &nbsp;&nbsp;5 years or rental period |
| &nbsp;&nbsp;Vehicle | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;Tools | &nbsp;&nbsp;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.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Expected useful life** |
| &nbsp;&nbsp;Development cost | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;Software | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;License | &nbsp;&nbsp;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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(n) Employee benefits** 

*i) Short-term employee benefits* 

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

*ii) Other long-term employee benefits*

The Company's net obligation in respect of other long-term employee benefits that are not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

*iii) Retirement benefits* 

① Defined benefit plans

As of December 31, 2025, defined benefit liabilities related to the defined benefit plan are recognized by deducting the fair value of external reserve from the present value of the defined benefit plan debt.

The defined benefit liability is calculated by an independent actuary every year. If the net amount calculated by deducting the fair value of the plan assets from the present value of the defined benefit obligation is an asset, the asset is recognized up to the limit of the present value of the economic benefits available in such a way as to receive a refund from the plan or to reduce future contributions to the plan.

**(o) Provisions**

Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(p) Insurance contract**

*i) Definition and classification of insurance contracts* 

The Company classifies the insurance contract issued as an insurance contract when assuming significant insurance risk from the policyholder, regardless of its legal form. It is classified as an insurance contract if, based on present value, there is a potential loss exposure and if, under any commercially plausible scenario, significant additional payments (determined on a present value basis) would be required to the policyholder. The assessment of assuming significant insurance risk is performed for each contract at the time of issuance. For reinsurance contracts, they are classified as insurance contracts when transferring significant insurance risk to the reinsurer. Additionally, contracts with discretionary participation features are also classified as insurance contracts.

Among the insurance contracts held by the Group, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulations on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by the Company are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

As of December 31, 2025, the present value of estimated future cash flows related to the Group's participating insurance contracts amounted to W4,719,405 million. This amount was measured based on reasonable assumptions and available information as of December 31, 2025. The key assumptions affecting the measurement of insurance liabilities and the effects (sensitivity) of changes in each assumption on the fulfilment cash flows, including the best estimate of future cash flows (BEL) and the risk adjustment for non-financial risk (RA), and the contractual service margin (CSM) are described in detail in Note 6.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(p) Insurance contract (continued)**

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)* 

1 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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(p) Insurance contract (continued)** 

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

③ Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model

On initial recognition, the Company measures a group of insurance contracts issued as the sum of the fulfillment cash flows comprising estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows , and risk adjustments to non-financial risk and the contractual service margin, and subsequently, as the sum of the liability or asset of for remaining coverage comprising the fulfillment cash flows and the contractual service margin and liability or asset for incurred claims comprising the fulfillment cash flows. The liability for remaining coverage includes the obligation to investigate and pay reasonable insurance benefits according to the current insurance contract for insurance events that have not yet occurred, the obligation to pay amounts related to insurance contract services that have not yet been provided, the obligation to pay amounts related to insurance contract services that have not yet been provided, and represents the obligation to pay investment components and other amounts that have not been transferred to incurred liability. The liability for incurred claims comprises the obligation to investigate insurance events that have already occurred and pay reasonable insurance claims and other incurred insurance costs, the obligation to pay amounts related to insurance contract services already provided, and obligation to pay investment elements and other amounts not related to insurance contract services and not included in the liability for remaining coverage.

- The estimate of future cash flows

The Company estimates future cash flows using a probability-weighted average based on all relevant, reliable, and neutral information available without undue cost or effort regarding the timing, scope, and uncertainty of future cash flows. Estimates for market variables are consistent with observable market prices and reflect the perspective of the entity, while estimates for non-market variables incorporate all reasonable and reliable internal and external evidence available without undue cost or effort, while ensuring consistency with observable market variables. The Company segregates the future cash flows of reinsurance contracts from those of the underlying insurance contracts and measures them separately, using assumptions consistent with the underlying direct insurance contracts issued but including the effects risk of failure of the debtor.

- Future cash flows within the contract boundary

The Company includes all future cash flows within the boundary of the group of insurance contracts issued when measuring the group. Cash flows within the contract boundary refer to cash flows up to the reporting period in which there exists a substantive right or obligation to compel the policyholder to pay premiums (or compel the reinsurer to pay reinsurance premiums for group of reinsurance contracts) or to provide substantive services under the insurance contract (or receive substantive services from the reinsurer for group of reinsurance contracts). Cash flows within the contract boundary include premiums from policyholders, claims and benefits payable to policyholders (including payments linked to underlying items), insurance claim handling expenses, options and guarantees embedded in cash flows, insurance acquisition cash flows directly attributable to the contract or its portfolio, fixed/variable indirect expenses directly attributable to fulfilling the insurance contract, costs related to investment activities and the provision of investment return services/investment-related services, insurance policy loans, etc; and excludes investment income or future insurance-related cash flows, product development expenses, and training expenses not directly attributable to the insurance contract portfolio

The substantive obligation to provide insurance contract services (or the substantive right to receive insurance contract services for group of reinsurance contracts) terminates when there is actual ability to reassess the risk of specific policyholders or portfolios (or risks transferred to reinsurers for group of reinsurance contracts) and, as a result, to fully reflect such risks in pricing or settlement. Risks related to periods after the reassessment date are not considered when reevaluating the portfolio's pricing. The Company reassesses the boundary of the contract at the end of each reporting period to reflect changes in circumstances affecting substantive rights and obligations.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

<br>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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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*

<br>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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(p) Insurance contract (continued)** 

*ⅵ) Presentation*

The Company separately presents the carrying amounts of insurance contract portfolio, which is an asset, the carrying amounts of the insurance contract portfolio, which is a liability, the carrying amounts of the reinsurance contract portfolio held, which is an asset, and the carrying amounts of the reinsurance contract portfolio held, which is a liability, respectively, in the separate statement of financial position. Furthermore, it distinguishes between insurance revenue and reinsurance service expenses, as well as insurance service expenses and reinsurance revenue, without offsetting them against each other in the separate statement of comprehensive income.

The Company includes the time value of money and the effects of financial risks, as well as their fluctuations, in insurance finance income (expenses). The Company has chosen an accounting policy to differentiate between insurance finance income (expenses) for the period as either recognized in the current income or in other comprehensive income. For groups of insurance contracts for which changes in assumptions that relate to financial risk have a substantial effect on the amounts paid to the policyholders, the finance income (expenses) is determined using an allocation that is based on the amounts credited in the period and expected to be credited in future periods. For other insurance groups, the effective interest rate determined at initial recognition is used to calculate insurance finance income (expenses) recognized in the current period. In cases where the variable fee approach is applied to insurance groups holding underlying items, the amount recognized as insurance finance income (expenses) in the current period is determined to eliminate accounting mismatches with the underlying items and recognized in the current income.

**(q) Hybrid bonds**

The Company classifies an issued financial instrument, or its component parts, as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. Hybrid bonds where the Company has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation are classified as an equity instrument and presented as part of equity.

**(r) Income tax**

Shinhan Financial Group, the parent company of the Company, reported and paid corporate taxes by considering the entire domestic subsidiary company, including the Company, as a single tax unit, and the consolidated tax burden amount was counted as the current corporate tax liability. The deferred tax liabilities and assets are recognized as temporary differences between the carrying amount of assets and liabilities and the tax value, and items directly attributable to the Company among the future tax burden to be paid for tax losses and tax credits that can be carried forward and deducted.

The carrying value of deferred tax assets is reviewed at the end of each reporting period. The carrying value of deferred tax assets is reduced when it is no longer likely that sufficient taxable income will be generated to use benefits from deferred tax assets.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(s) New standards and amendments not yet adopted by the Company**

At the date of authorization of these financial statements, the Company has not applied the following new and revised K-IFRS Standards that have been issued but are not yet effective:

*i) K-IFRS 1109 'Financial Instruments' and K-IFRS 1107 'Financial Instruments: Disclosures' – Classification and measurement requirements of financial instruments*

In response to questions raised in practice and to incorporate new requirements, K-IFRS 1109 '*Financial Instruments*' and K-IFRS 1107 '*Financial Instruments: Disclosures*' were amended. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with early application permitted. The principal amendments are as follows. The group does not anticipate that the application of these amendments will have a material impact on its financial statements.

· Permits, subject to specified criteria, a financial liability to be considered settled (derecognized) before the settlement date when it is settled through an electronic payment system

· Clarifies and adds guidance for assessing whether a financial asset meets the criterion of consisting solely of payments of principal and interest

· Requires disclosures, by class of financial instrument, of the effect on the entity of contractual terms that change the timing or amount of contractual cash flows and the extent of the entity's exposure

· Introduces additional disclosures for equity instruments designated at fair value through other comprehensive income

*ii) K-IFRS 1118 'Presentation and Disclosure in Financial Statements'*

K-IFRS 1118 '*Presentation and Disclosure in Financial Statements*' replaces K-IFRS 1001 '*Presentation of Financial Statements*' and introduces new requirements aimed at enhancing the comparability of financial performance among similar entities and providing users with more decision-useful information. The Company expects that the amendments will not affect the recognition or measurement of items in the financial statements and is assessing their impact on presentation and disclosure, including the statement of profit or loss and the disclosure of management-defined performance measures (MPMs).

K-IFRS 1118 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. In accordance with the standard's retrospective application requirements, comparative information for the annual reporting period ended December 31, 2026 will be restated in accordance with K-IFRS 1118.

*iii) K-IFRS Annual Improvements*

K-IFRS annual improvements are applied for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. There will be no material impact on the separate financial statements from these amendments.

- K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards – Hedging accounting by a first-time adopter

- K-IFRS 1107 Financial Instruments: Disclosures – Gain or loss on derecognition

- K-IFRS 1109 Financial Instruments – Derecognition of lease liabilities and transaction price

- K-IFRS 1110 Consolidated Financial Statements – Determination of 'de facto agent'

- K-IFRS 1007 Statement of Cash Flows: Cost method

- K-IFRS 1109 Financial Instruments and K-IFRS 1107 Financial Instruments: Disclosures – Contracts referencing nature-dependent electricity

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**4. <u>Summary of financial information</u>**

For the year ended December 31, 2025, the Company recognized (i) operating profit of W796,686 million, consisting of W704,153 million of insurance service result and W92,533 million of net finance result; (ii) W148 million of non-operating expense; and (iii) W515,916 million of profit for the period.

The operating profit increased by W58,117 million, insurance service result increased by W45,772 million, net finance result increased by W12,345 million, and profit for the period decreased by W17,765 million as compared to the year ended December 31, 2024.

Insurance service result for the year ended December 31, 2025 includes revenue from the contractual service margin recognized in profit or loss for services provided amounting to W735,228 million, and changes in risk adjustment amounting to W185,069 million; and includes W(-)14,443 million and W15,931 million of experience adjustments on claims and operating expenses, respectively.

The insurance service result increased by W45,772 million as compared to the year ended December 31, 2024 mainly due to an increase in the changes in risk adjustment, partially offset by decreases in experience adjustments.

Net finance result for the year ended December 31, 2025 includes W1,397,700 million of net interest income, W2,775,259 million of net insurance finance expenses, and W1,470,092 million of net investment income on securities and others.

The net finance result has increased by W12,345 million as compared to the year ended December 31, 2024 mainly due to an increase in investment income on securities and others, partially offset by decreases in net interest income and net insurance finance expenses.

Total assets are W59,448,032 million as of December 31, 2025, including W13,265,276 million of financial assets at fair value through profit or loss, W35,288,458 million of securities at fair value through other comprehensive income, W3,950,344 of securities at amortized cost, W2,255,261 million of loans, W2,286,855 million of cash and due from banks, and W2,401,838 of derivative assets and others.

Total assets decreased by W169,764 million as compared to the year ended December 31, 2024, mainly due to a decrease of securities at fair value through other comprehensive income caused by the increases in interest rates.

Total liabilities are W53,208,738 million as of December 31, 2025, including W47,912,623 million of insurance contract liabilities (for which the estimates of present value of future cash flows and contractual service margin are W38,960,420 million and W7,553,736 million, respectively); and W5,296,115 million of reinsurance contract liabilities, investment contract liabilities and others in total.

Total liabilities increased by W653,244 million as compared to the year ended December 31, 2024, mainly due to an increase in other liabilities resulting from the issuance of subordinated bonds, partially offset by a decrease in the estimates of present value of future cash flows caused by the increases in interest rates.

Total equity is W6,239,294 million as of December 31, 2025, including W578,274 million of capital stock, W820,023 million of capital surplus, W6,968,397 million of retained earnings, and W2,128,291 million of accumulated other comprehensive loss.

Total equity decreased by W823,008 million as compared to the year ended December 31, 2024, mainly due to a decrease in accumulated other comprehensive income caused by annual dividend paid, changes in discount rate assumptions, and other regulatory effects.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management</u>**

(a) Risk management overview

The Company operates a risk management system in order to systematically identify and measure various risks that may arise throughout the Company's overall business and manage them efficiently at a group-wide level, thereby promoting the Company's sound and sustainable development.

The main risks being managed include credit risk, market risk, interest rate risk, operational risk and liquidity risk. These risks are identified, measured, controlled, and reported in accordance with the risk management guidelines.

*i) Risk management principles*

The Company's risk management is guided by the following core principles:

1Carry out all operating activities within a predetermined risk appetite, in consideration of the balance of risk and returns;

2Operate a risk management-related decision-making system that enhances management involvement;

3Organize and operate a risk management organization that is independent from the sales and asset management departments;

4Operate a performance management system that explicitly takes into account risks when making business decisions.

5Aim for preemptive and practical risk management functions;

6Share a careful view to prepare for possible deterioration of the situation even in normal conditions;

7Diversify risks to prevent concentration of risks in specific sectors; and

8Follow formal procedures or methods, such as documentation.

*ii) Risk management organization*

The basic policies and strategies for risk management are established by the Risk Management Committee within the Board of Directors. The Chief Risk-management Officer ("CRO") assists the Risk Management Committee and establishes and implements detailed risk policies and strategies through the Risk Management Steering Committee, Investment Steering Committee, and the organization exclusively in charge of risk management.

① Risk Management Committee

The Risk Management Committee serves as the highest decision-making body for risk management. Chaired by an outside director, the Committee operates on a regular basis. It has established a comprehensive management system to formulate risk management policies—including the identification, measurement, monitoring, and control of risks—and to ensure that such risks are appropriately evaluated and managed.

② Risk Management Steering Committee

The Risk Management Steering Committee, as a committee under the Risk Management Committee, is established to comprehensively manage risks that may arise in the course of business at an operational level and performs the detailed tasks delegated by the Risk Management Committee for the efficient implementation of its risk management and resolution matters.

③ Investment Steering Committee

The Investment Steering Committee is responsible for making credit and investment decisions, credit risk management and credit policy. The Risk Management Committee delegates details for risk management and efficient implementation of resolutions.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*iii) Risk management*

The Company manages various credit risks that may arise in loans, securities other than trading position, related non-operating assets, investments in associates and subsidiaries, deposits and due from banks, over-the-counter derivatives, and others.

① Risk Measurement Method

Credit risk is measured by inputting risk components according to the Company's internal credit risk capital calculation method, and the calculation formula is as follows:

EAD(Exposure At Default) × f(PD, LGD, R, M)

Where:

EAD is exposure at default

PD is probability of default

LGD is loss given default

R is correlation

M is maturity

f is a function to calculate capital requirements outlined in the Basel

② Risk limit management and risk mitigation policy

The Company sets limits on credit allowances for each industry, affiliate, and corporate to manage credit risk. The risk management department monitors the compliance with those limits on a daily basis, the result of which is regularly reported to the management, as well as the Risk Management Committee.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(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.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*iv) Recognition and measurement of expected credit losses (continued)*

④ Reflection of forward-looking information

The Company reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Company utilizes economic forecasts disclosed by domestic and foreign research institutes, governments, and public institutions to predict forward-looking information.

⑤ Measurement of expected credit loss

The main variables used to measure expected credit loss are as follows:

- Probability of Default (PD)

- Loss Given Default (LGD)

- Exposure At Default (EAD)

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Company and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Company uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades would be adjusted, and the PD by grade is estimated by considering contract expiration of the exposure.

LGD refers to the expected loss if a borrower defaults. The Company calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Company derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying value of the asset, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

Risk factors of PD, LGD and EAD are collectively estimated.

The criteria classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if necessary. The Company uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from the experience.

⑥ Write-off of financial assets

The Company writes off a portion of or entire loan or debt security that is not expected to receive its principal and interest. In general, the Company conducts write-off when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Company and is carried out with the approval of an external institution, if necessary. Apart from write-off, the Company may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*v) Maximum exposure to credit risk*

Credit risk exposure the exposure related to due from banks, loans, investments in debt securities, derivative transactions, off-balance sheet accounts such as loan commitment.

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2025** |  |
|  |  | **General**<br>**(\*1)** | **Investment-linked (\*2)** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*3)(\*4): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | W | 911255 | 333521 | 1244776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 351850 | - | 351850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 183117 | - | 183117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 150085 | 41300 | 191385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 706600 | 205231 | 911831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 149981 | - | 149981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1509176 | - | 1509176 |
|  |  | 3962064 | 580052 | 4542116 |
| Due from banks at fair value through profit or loss: |  |  |  |  |
| Banks |  | 40862 | - | 40862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 7536867 | 3778468 | 11315335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 35186507 | - | 35186507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost (\*4) |  | 3950344 | - | 3950344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 33817 | 657 | 34474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables at amortized cost (\*4) |  | 1089816 | 107160 | 1196976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | 373782 | - | 373782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | 1304582 | - | 1304582 |
|  |  | 1678364 | - | 1678364 |
|  | W | 53478641 | 4466337 | 57944978 |

---

(\*1) This is the total amount of general accounts and principal-and-interest guaranteed retirement pension products.

(\*2) This is the total amount of variable life insurance and investment-linked retirement pension products.

(\*3) The due from banks at amortized cost includes cash equivalents.

(\*4) The maximum exposure amount to due from banks and loans at amortized cost, securities at amortized cost, and receivables at amortized cost is the carrying amount, net of credit loss allowance, etc.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*v) Maximum exposure to credit risk (continued)*

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2024** |  |
|  |  | **General**<br>**(\*1)** | **Investment-linked (\*2)** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*3)(\*4): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | W | 932763 | 291575 | 1224338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 429318 | - | 429318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 268572 | - | 268572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 160057 | 40900 | 200957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 45188 | 121954 | 167142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 168292 | - | 168292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1879706 | - | 1879706 |
|  |  | 3883896 | 454429 | 4338325 |
| Due from banks at fair value through profit or loss: |  |  |  |  |
| Banks |  | 35450 | - | 35450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 6587790 | 3768210 | 10356000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 37486020 | - | 37486020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost (\*4) |  | 3931915 | - | 3931915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 117425 | 97 | 117522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables at amortized cost (\*4) |  | 1029633 | 114995 | 1144628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | 164307 | - | 164307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | 1354692 | - | 1354692 |
|  |  | 1518999 | - | 1518999 |
|  | W | 54591128 | 4337731 | 58928859 |

---

(\*1) This is the total amount of general accounts and principal-and-interest guaranteed retirement pension products.

(\*2) This is the total amount of variable life insurance and investment-linked retirement pension products.

(\*3) The due from banks at amortized cost includes cash equivalents.

(\*4) The maximum exposure amount to due from banks and loans at amortized cost, securities at amortized cost, and receivables at amortized cost is the carrying amount, net of credit loss allowance, etc.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vi) Impairment information by credit risk of financial instruments*

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month expected credit loss** | **12-month expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
|  |  | &nbsp;&nbsp;**Grade 1(\*1)** | **Grade 2(\*1)** | **Grade 2(\*1)** | &nbsp;&nbsp;**Impaired** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*2): |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp; W | 1244253 | 685 | - | - | 1244938 | (162) | 1244776 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 333100 | 6346 | 9637 | 3232 | 352315 | (465) | 351850 | 347381 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 162033 | 17529 | 5900 | 16756 | 202218 | (19101) | 183117 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 191447 | - | - | - | 191447 | (62) | 191385 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 856576 | 55463 | - | 3591 | 915630 | (3799) | 911831 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 140000 | 10011 | - | - | 150011 | (30) | 149981 | 9898 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1421575 | - | 92241 | - | 1513816 | (4640) | 1509176 | 272845 |
|  |  | 4348984 | 90034 | 107778 | 23579 | 4570375 | (28259) | 4542116 | 630124 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income (\*3) |  | 35186507 | - | - | - | 35186507 | - | 35186507 | - |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 3950527 | - | - | - | 3950527 | (183) | 3950344 | - |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 1191660 | 107 | 2214 | 27524 | 1221505 | (24529) | 1196976 | 1427 |
|  | W | 44677678 | 90141 | 109992 | 51103 | 44928914 | (52971) | 44875943 | 631551 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vi) Impairment information by credit risk of financial instruments (continued)*

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

(\*1) Each credit quality grade refers to as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Type of Borrower** | &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;**Grade 2** |
| &nbsp;&nbsp;&nbsp;Retail | Internal credit rating of 5 or above  | Internal credit rating of below 5 |
| &nbsp;&nbsp;&nbsp;Governments/public institutions/central bank | OECD sovereign credit rating of 6 or above  | OECD sovereign credit rating of below 6 |
| &nbsp;&nbsp;&nbsp;Corporations | Internal credit rating of BBB+ or above<br>| Internal credit rating of below BBB+<br>|

---

(\*2) The due from banks at amortized cost includes cash equivalents.

(\*3) Provision for credit loss allowance for securities at fair value through other comprehensive income amounted to W6,297 million.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vi) Impairment information by credit risk of financial instruments (continued)*

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month expected credit loss** | **12-month expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | &nbsp;&nbsp;**Lifetime expected credit loss** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
|  |  | &nbsp;&nbsp;**Grade 1(\*1)** | **Grade 2(\*1)** | **Grade 2(\*1)** | &nbsp;&nbsp;**Impaired** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk**<br>**due to collateral** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*2): |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp; W | 1224101 | 470 | - | - | 1224571 | (233) | 1224338 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Residential mortgage |  | 405191 | 9175 | 12042 | 3330 | 429738 | (420) | 429318 | 423658 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Others |  | 241302 | 26824 | 10756 | 14644 | 293526 | (24954) | 268572 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 201024 | - | - | - | 201024 | (67) | 200957 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Conglomerate |  | 147072 | 17944 | 3591 | - | 168607 | (1465) | 167142 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; - SMEs |  | 158427 | 9927 | - | - | 168354 | (62) | 168292 | 9857 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Special financing |  | 1629475 | - | 259483 | - | 1888958 | (9252) | 1879706 | 245318 |
|  |  | 4006592 | 64340 | 285872 | 17974 | 4374778 | (36453) | 4338325 | 678833 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income (\*3) |  | 37486020 | - | - | - | 37486020 | - | 37486020 | - |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 3932100 | - | - | - | 3932100 | (185) | 3931915 | - |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 1138588 | 222 | 2498 | 36207 | 1177515 | (32887) | 1144628 | 1167 |
|  | W | 46563300 | 64562 | 288370 | 54181 | 46970413 | (69525) | 46900888 | 680000 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vi) Impairment information by credit risk of financial instruments (continued)*

Details of financial assets by credit quality grade as of December 31, 2025 and 2024 are as follows: (continued)

(\*1) Each credit quality grade refers to as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Type of Borrower** | &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;**Grade 2** |
| &nbsp;&nbsp;&nbsp;Retail | Internal credit rating of 5 or above  | Internal credit rating of below 5 |
| &nbsp;&nbsp;&nbsp;Governments/public institutions/central bank | OECD sovereign credit rating of 6 or above  | OECD sovereign credit rating of below 6 |
| &nbsp;&nbsp;&nbsp;Corporations | Internal credit rating of BBB+ or above<br>| Internal credit rating of below BBB+<br>|

---

(\*2) The due from banks at amortized cost includes cash equivalents.

(\*3) Provision for credit loss allowance for securities at fair value through other comprehensive income amounted to W7,565 million.

Impairment information related to credit risk of off-balance sheet accounts

Impairment information related to credit risk of unused loan commitments and capital commitments as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;&nbsp;**Credit risk exposure for**<br>**12-month expected credit loss** | &nbsp;&nbsp;&nbsp;**Lifetime expected credit loss** | &nbsp;&nbsp;&nbsp;**Credit risk exposure for**<br>**12-month expected credit loss** | &nbsp;&nbsp;&nbsp;**Lifetime expected**<br> **credit loss** |
| &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;&nbsp;W | 1678364 | -  | 1518757 | - |
| &nbsp;&nbsp;&nbsp;**Grade 2** |  | - | - | - | 242 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;W | 1678364 | - | 1518757 | 242 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vii) Concentration by industry sector*

An analysis of concentration by industry sector for financial instruments held, net of allowance, as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** |
|  |  | **Finance and insurance** | **Manufacturing** | &nbsp;&nbsp;&nbsp;**Retail and wholesale** | **Real estate and service** | **Construction service** | **Hotel and food service** | &nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;&nbsp;**Retail** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | 1244776 | - | - | - | - | - | - | - | 1244776 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | - | - | - | - | - | - | - | 351850 | 351850 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | - | - | - | - | - | - | - | 183117 | 183117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 149949 | - | - | - | - | - | 41436 | - | 191385 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | 891909 | 19922 | - | - | - | - | - | - | 911831 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | 140005 | - | - | 9898 | - | - | 78 | - | 149981 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | 194120 | 13796 | - | 716360 | - | - | 584900 | - | 1509176 |
|  |  | 2620759 | 33718 | - | 726258 | - | - | 626414 | 534967 | 4542116 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | 40862 | - | - | - | - | - | - | - | 40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 500927 | 39195 | 9903 | 66018 | 4707 | - | 10694585 | - | 11315335 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 5714492 | 856204 | 125364 | 934951 | 346947 | 12345 | 27196204 | - | 35186507 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost  |  | 159983 | - | - | 117502 | 9996 | - | 3662863 | - | 3950344 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | 34474 | - | - | - | - | - | - | - | 34474 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | 26180 | - | - | 305867 | - | - | 41735 | - | 373782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | - | - | - | - | - | - | 1304582 | - | 1304582 |
|  | W | 9097677 | 929117 | 135267 | 2150596 | 361650 | 12345 | 43526383 | 534967 | 56748002 |

---

(\*) Due from banks at amortized cost includes cash equivalents.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*vii) Concentration by industry sector (continued)*

An analysis of concentration by industry sector for financial instruments held, net of allowance, as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Finance and insurance** | **Manufacturing** | &nbsp;&nbsp;&nbsp;**Retail and wholesale** | **Real estate and service** | **Construction service** | **Hotel and food service** | &nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;&nbsp;**Retail** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | 1224338 | - | - | - | - | - | - | - | 1224338 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | - | - | - | - | - | - | - | 429318 | 429318 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | - | - | - | - | - | - | - | 268572 | 268572 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | 159941 | - | - | - | - | - | 41016 | - | 200957 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | 144428 | 19921 | - | - | - | - | 2793 | - | 167142 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | 883 | 5974 | - | 139998 | - | 9857 | 11580 | - | 168292 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | 13347 | 109102 | - | 939088 | 105711 | - | 712458 | - | 1879706 |
|  |  | 1542937 | 134997 | - | 1079086 | 105711 | 9857 | 767847 | 697890 | 4338325 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | 35450 | - | - | - | - | - | - | - | 35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 621791 | 74144 | - | 77233 | 7916 | - | 9574916 | - | 10356000 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 6596291 | 1030373 | 203160 | 1135078 | 442795 | 12160 | 28066163 | - | 37486020 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost  |  | 160027 | - | - | 118643 | 9996 | - | 3643249 | - | 3931915 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | 117522 | - | - | - | - | - | - | - | 117522 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | - | - | - | 98777 | 22672 | - | 42858 | - | 164307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital commitments |  | - | - | - | - | - | - | 1354692 | - | 1354692 |
|  | W | 9074018 | 1239514 | 203160 | 2508817 | 589090 | 22017 | 43449725 | 697890 | 57784231 |

---

(\*) Due from banks at amortized cost includes cash equivalents.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*viii) Concentration by geographic location*

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2025** |
|  |  | **Korea** | &nbsp;&nbsp;&nbsp; **USA** | &nbsp;&nbsp;&nbsp;**UK** | &nbsp;&nbsp;&nbsp; **Japan** | &nbsp;&nbsp;&nbsp; **Other** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;1076478 | &nbsp;&nbsp;&nbsp;95864 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;101 | &nbsp;&nbsp;&nbsp;72333 | &nbsp;&nbsp;&nbsp;1244776 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | &nbsp;&nbsp;&nbsp;351850 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;351850 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | &nbsp;&nbsp;&nbsp;183117 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;183117 |
| &nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | &nbsp;&nbsp;&nbsp;191385 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;191385 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | &nbsp;&nbsp;&nbsp;898387 | &nbsp;&nbsp;&nbsp;8394 | &nbsp;&nbsp;&nbsp;102 | &nbsp;&nbsp;&nbsp;747 | &nbsp;&nbsp;&nbsp;4201 | &nbsp;&nbsp;&nbsp;911831 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | &nbsp;&nbsp;&nbsp;149981 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;149981 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | &nbsp;&nbsp;&nbsp;1509176 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1509176 |
|  |  | &nbsp;&nbsp;&nbsp;4360374 | &nbsp;&nbsp;&nbsp;104258 | &nbsp;&nbsp;&nbsp;102 | &nbsp;&nbsp;&nbsp;848 | &nbsp;&nbsp;&nbsp;76534 | &nbsp;&nbsp;&nbsp;4542116 |
| Due from banks at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;40862 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;9791832 | &nbsp;&nbsp;&nbsp;1355400 | &nbsp;&nbsp;&nbsp;33660 | &nbsp;&nbsp;&nbsp;25068 | &nbsp;&nbsp;&nbsp;109375 | &nbsp;&nbsp;&nbsp;11315335 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | &nbsp;&nbsp;&nbsp;31660305 | &nbsp;&nbsp;&nbsp;1795051 | &nbsp;&nbsp;&nbsp;48800 | &nbsp;&nbsp;&nbsp;109450 | &nbsp;&nbsp;&nbsp;1572901 | &nbsp;&nbsp;&nbsp;35186507 |
| Securities at amortized cost  |  | &nbsp;&nbsp;&nbsp;3950344 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3950344 |
| Derivative assets |  | &nbsp;&nbsp;&nbsp;33817 | &nbsp;&nbsp;&nbsp;550 | &nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;97 | &nbsp;&nbsp;&nbsp;34474 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | &nbsp;&nbsp;&nbsp;373782 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;373782 |
| &nbsp;&nbsp;Capital commitments |  | &nbsp;&nbsp;&nbsp;1266883 | &nbsp;&nbsp;&nbsp;11195 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;26504 | &nbsp;&nbsp;&nbsp;1304582 |
|  | W | &nbsp;&nbsp;&nbsp;51437337 | &nbsp;&nbsp;&nbsp;3307316 | &nbsp;&nbsp;&nbsp;82572 | &nbsp;&nbsp;&nbsp;135366 | &nbsp;&nbsp;&nbsp;1785411 | &nbsp;&nbsp;&nbsp;56748002 |

---

(\*) Due from banks at amortized cost includes cash equivalents.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*viii) Concentration by geographic location (continued)*

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Korea** | &nbsp;&nbsp;&nbsp; **USA** | &nbsp;&nbsp;&nbsp;**UK** | &nbsp;&nbsp;&nbsp; **Japan** | &nbsp;&nbsp;&nbsp; **Other** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;1023043 | &nbsp;&nbsp;&nbsp;68915 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;103 | &nbsp;&nbsp;&nbsp;132277 | &nbsp;&nbsp;&nbsp;1224338 |
| &nbsp;&nbsp;&nbsp;Retail |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;- Residential mortgage |  | &nbsp;&nbsp;&nbsp;429318 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;429318 |
| &nbsp;&nbsp;&nbsp;&nbsp;- Others |  | &nbsp;&nbsp;&nbsp;268572 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;268572 |
| &nbsp;&nbsp;&nbsp;Government/Public institutions/Central bank |  | &nbsp;&nbsp;&nbsp;200957 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;200957 |
| &nbsp;&nbsp;&nbsp;Corporations |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Conglomerate |  | &nbsp;&nbsp;&nbsp;152416 | &nbsp;&nbsp;&nbsp;10137 | &nbsp;&nbsp;&nbsp;149 | &nbsp;&nbsp;&nbsp;762 | &nbsp;&nbsp;&nbsp;3678 | &nbsp;&nbsp;&nbsp;167142 |
| &nbsp;&nbsp;&nbsp; - SMEs |  | &nbsp;&nbsp;&nbsp;168292 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;168292 |
| &nbsp;&nbsp;&nbsp; - Special financing |  | &nbsp;&nbsp;&nbsp;1879706 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1879706 |
|  |  | &nbsp;&nbsp;&nbsp;4122304 | &nbsp;&nbsp;&nbsp;79052 | &nbsp;&nbsp;&nbsp;149 | &nbsp;&nbsp;&nbsp;865 | &nbsp;&nbsp;&nbsp;135955 | &nbsp;&nbsp;&nbsp;4338325 |
| Due from banks at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;35450 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;8892565 | &nbsp;&nbsp;&nbsp;1260681 | &nbsp;&nbsp;&nbsp;33557 | &nbsp;&nbsp;&nbsp;24990 | &nbsp;&nbsp;&nbsp;144207 | &nbsp;&nbsp;&nbsp;10356000 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | &nbsp;&nbsp;&nbsp;34845378 | &nbsp;&nbsp;&nbsp;1240842 | &nbsp;&nbsp;&nbsp;45250 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1354550 | &nbsp;&nbsp;&nbsp;37486020 |
| Securities at amortized cost  |  | &nbsp;&nbsp;&nbsp;3931915 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3931915 |
| Derivative assets |  | &nbsp;&nbsp;&nbsp;117425 | &nbsp;&nbsp;&nbsp;52 | &nbsp;&nbsp;&nbsp;45 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;117522 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet accounts |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused loan commitments |  | &nbsp;&nbsp;&nbsp;164307 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;164307 |
| &nbsp;&nbsp;Capital commitments |  | &nbsp;&nbsp;&nbsp;1312488 | &nbsp;&nbsp;&nbsp;12871 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;29333 | &nbsp;&nbsp;&nbsp;1354692 |
|  | W | &nbsp;&nbsp;&nbsp;53386382 | &nbsp;&nbsp;&nbsp;2628948 | &nbsp;&nbsp;&nbsp;79001 | &nbsp;&nbsp;&nbsp;25855 | &nbsp;&nbsp;&nbsp;1664045 | &nbsp;&nbsp;&nbsp;57784231 |

---

(\*) Due from banks at amortized cost includes cash equivalents.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(c) Market risk

*i) Definition and management objective*

Market risk refers to the risk of changes in the market value of the Company's asset portfolio due to changes in market prices, such as stock prices, interest rates and foreign exchange rates; and the variable insurance guarantee risk. The Company aims to maintain these market risks within a certain range and minimize the realization of risks.

*ii) Management Principles*

The Company's risk management principles for market risk are as follows:

① Manage through periodic forecasts for financial market variables such as interest rates, stock prices, and exchange rates;

② Comply with market risk limits and investment limits;

③ Operate stop-loss limits to control risks within a certain range, and obtain a resolution on establishing or amending the stop-loss criterion from the Risk Management Committee; and

④ Compose and manage a diversified portfolio and avoids concentrated investments.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*iii) Risk management* 

The Company manages market risks, from a trading position, on securities, derivatives, assets and liabilities denominated in foreign currencies, and assets and liabilities of variable insurance.

① Market risk measurement technique

Market risk VaR (Value At Risk) is measured using the Delta-Normal method based on the volatility of price, interest rate, and exchange rate-related assets over the preceding one year, aiming to estimate the maximum potential loss that could occur within the target period at the specified confidence level. The variable insurance guarantee risk amount is measured using shock scenario methodology.

② Risk management and risk reduction policy

The Company regulates various limits, including the VaR limit, to manage market risk. Market risk limits are assigned on a daily basis by VaR to check business compliance. Risk management departments regularly monitor whether the operation department complies with these limits and report them to the management and Risk Management Committee.

③ Foreign exchange risk

Since the Company holds foreign currency assets, it is exposed to the risk of dollar and other foreign currency-related exchange rate volatilities.

The Company calculates the exposure by converting the foreign currency assets and contractual amounts held at the exchange rate at the end of the reporting period, and hedges foreign currency assets to avoid currency risks arising from foreign investment. Accordingly, through currency swaps or currency forward contracts when investing in foreign bonds, the Company offsets any gains or losses arising from foreign exchange rate fluctuations that may occur during future investments.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*iv) Types of market risk*

The details of the VaR for the trading positions held by the Company as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Average** | **Maximum** | &nbsp;&nbsp;**Minimum** | **December 31** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | &nbsp;&nbsp;W | 314 | 633 | 128 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock price risk |  | 11705 | 17365 | 8345 | 17365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  | 65588 | 75889 | 52903 | 71959 |
| &nbsp;&nbsp;&nbsp;&nbsp;Option volatility risk |  | 193 | 559 | 128 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;W | 77800 | 94446 | 61504 | 89597 |

---

(\*) As of December 31, 2025, the market risk exposure for investment-linked assets held is W5,687,547 million and the minimum guaranteed risk amount that may have an impact on the Company calculated using the internal shock scenario method is W264,326 million.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Average** | **Maximum** | &nbsp;&nbsp;**Minimum** | **December 31** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | &nbsp;&nbsp;W | 424 | 600 | 254 | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock price risk |  | 5370 | 9069 | 1176 | 7716 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  | 59747 | 73057 | 48049 | 64051 |
| &nbsp;&nbsp;&nbsp;&nbsp;Option volatility risk |  | 966 | 1287 | 121 | 559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;W | 66507 | 84013 | 49600 | 72580 |

---

(\*) As of December 31, 2024, the market risk exposure for investment-linked assets held is W4,956,743 million and the minimum guaranteed risk amount that may have an impact on the Company calculated using the internal shock scenario method is W280,577 million.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*v) Composition of foreign currency assets and liabilities by currency*

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows:

*(In millions of USD, EUR, AUD, SEK, and Won)*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;61 | &nbsp;&nbsp;87921 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1634 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1275 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;2 | &nbsp;&nbsp;2603 | &nbsp;&nbsp;93433 |
| &nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | &nbsp;&nbsp;28 | &nbsp;&nbsp;40862 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;40862 |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;1033 | &nbsp;&nbsp;1482323 | &nbsp;&nbsp;31 | &nbsp;&nbsp;51638 | &nbsp;&nbsp;1 | &nbsp;&nbsp;769 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;21 | &nbsp;&nbsp;29480 | &nbsp;&nbsp;1564210 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;1754 | &nbsp;&nbsp;2516822 | &nbsp;&nbsp;360 | &nbsp;&nbsp;606976 | &nbsp;&nbsp;655 | &nbsp;&nbsp;629854 | &nbsp;&nbsp;3501 | &nbsp;&nbsp;546039 | &nbsp;&nbsp;110 | &nbsp;&nbsp;158250 | &nbsp;&nbsp;4457941 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | &nbsp;&nbsp;169 | &nbsp;&nbsp;243013 | &nbsp;&nbsp;6 | &nbsp;&nbsp;10708 | &nbsp;&nbsp;11 | &nbsp;&nbsp;10140 | &nbsp;&nbsp;68 | &nbsp;&nbsp;10673 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1611 | &nbsp;&nbsp;276145 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;3045 | &nbsp;&nbsp;4370941 | &nbsp;&nbsp;398 | &nbsp;&nbsp;670956 | &nbsp;&nbsp;668 | &nbsp;&nbsp;642038 | &nbsp;&nbsp;3569 | &nbsp;&nbsp;556712 | &nbsp;&nbsp;134 | &nbsp;&nbsp;191944 | &nbsp;&nbsp;6432591 |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;345 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;314 | &nbsp;&nbsp;659 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;345 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;314 | &nbsp;&nbsp;659 |
| &nbsp;&nbsp;&nbsp;&nbsp;On-balance, net exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;3045 | &nbsp;&nbsp;4370596 | &nbsp;&nbsp;398 | &nbsp;&nbsp;670956 | &nbsp;&nbsp;668 | &nbsp;&nbsp;642038 | &nbsp;&nbsp;3569 | &nbsp;&nbsp;556712 | &nbsp;&nbsp;134 | &nbsp;&nbsp;191630 | &nbsp;&nbsp;6431932 |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance derivative net exposure (\*2) |  | &nbsp;&nbsp;(2739) | &nbsp;&nbsp;(3930717) | &nbsp;&nbsp;(466) | &nbsp;&nbsp;(785119) | &nbsp;&nbsp;(764) | &nbsp;&nbsp;(733880) | &nbsp;&nbsp;(4480) | &nbsp;&nbsp;(698702) | &nbsp;&nbsp;(109) | &nbsp;&nbsp;(156293) | &nbsp;&nbsp;(6304711) |
| &nbsp;&nbsp;Net position | &nbsp;&nbsp;W | &nbsp;&nbsp;306 | &nbsp;&nbsp;439879 | &nbsp;&nbsp;(68) | &nbsp;&nbsp;(114163) | &nbsp;&nbsp;(96) | &nbsp;&nbsp;(91842) | &nbsp;&nbsp;(911) | &nbsp;&nbsp;(141990) | &nbsp;&nbsp;25 | &nbsp;&nbsp;35337 | &nbsp;&nbsp;127221 |

---

(\*1) The foreign currency amount is denominated in USD.

(\*2) Derivative contract amounts

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(c) Market risk (continued)

*v) Composition of foreign currency assets and liabilities by currency (continued)*

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows: (continued)

*(In millions of USD, EUR, AUD, SEK, and Won)*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**EUR** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**AUD** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**SEK** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Foreign currency** | &nbsp;&nbsp;**KRW equivalent** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;39 | &nbsp;&nbsp;57586 | &nbsp;&nbsp;1 | &nbsp;&nbsp;2204 | &nbsp;&nbsp;1 | &nbsp;&nbsp;825 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;62647 |
| &nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | &nbsp;&nbsp;24 | &nbsp;&nbsp;35450 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;35450 |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;940 | &nbsp;&nbsp;1380821 | &nbsp;&nbsp;57 | &nbsp;&nbsp;86391 | &nbsp;&nbsp;1 | &nbsp;&nbsp;1231 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;20 | &nbsp;&nbsp;29399 | &nbsp;&nbsp;1497842 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;1432 | &nbsp;&nbsp;2104843 | &nbsp;&nbsp;310 | &nbsp;&nbsp;474405 | &nbsp;&nbsp;626 | &nbsp;&nbsp;572342 | &nbsp;&nbsp;3687 | &nbsp;&nbsp;491250 | &nbsp;&nbsp;31 | &nbsp;&nbsp;45250 | &nbsp;&nbsp;3688090 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | &nbsp;&nbsp;133 | &nbsp;&nbsp;196260 | &nbsp;&nbsp;5 | &nbsp;&nbsp;7724 | &nbsp;&nbsp;10 | &nbsp;&nbsp;8912 | &nbsp;&nbsp;68 | &nbsp;&nbsp;9117 | &nbsp;&nbsp;- | &nbsp;&nbsp;615 | &nbsp;&nbsp;222628 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;2568 | &nbsp;&nbsp;3774960 | &nbsp;&nbsp;373 | &nbsp;&nbsp;570724 | &nbsp;&nbsp;638 | &nbsp;&nbsp;583310 | &nbsp;&nbsp;3755 | &nbsp;&nbsp;500367 | &nbsp;&nbsp;52 | &nbsp;&nbsp;77296 | &nbsp;&nbsp;5506657 |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;- | &nbsp;&nbsp;244 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;244 |
|  | &nbsp;&nbsp;W |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;On-balance, net exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;2568 | &nbsp;&nbsp;3774716 | &nbsp;&nbsp;373 | &nbsp;&nbsp;570724 | &nbsp;&nbsp;638 | &nbsp;&nbsp;583310 | &nbsp;&nbsp;3755 | &nbsp;&nbsp;500367 | &nbsp;&nbsp;52 | &nbsp;&nbsp;77296 | &nbsp;&nbsp;5506413 |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance derivative net exposure (\*2) |  | &nbsp;&nbsp;(2424) | &nbsp;&nbsp;(3563417) | &nbsp;&nbsp;(413) | &nbsp;&nbsp;(631128) | &nbsp;&nbsp;(708) | &nbsp;&nbsp;(646718) | &nbsp;&nbsp;(4480) | &nbsp;&nbsp;(596833) | &nbsp;&nbsp;(27) | &nbsp;&nbsp;(40229) | &nbsp;&nbsp;(5478325) |
| &nbsp;&nbsp;Net position | &nbsp;&nbsp;W | &nbsp;&nbsp;144 | &nbsp;&nbsp;211299 | &nbsp;&nbsp;(40) | &nbsp;&nbsp;(60404) | &nbsp;&nbsp;(70) | &nbsp;&nbsp;(63408) | &nbsp;&nbsp;(725) | &nbsp;&nbsp;(96466) | &nbsp;&nbsp;25 | &nbsp;&nbsp;37067 | &nbsp;&nbsp;28088 |

---

(\*1) The foreign currency amount is denominated in USD.

(\*2) Derivative contract amounts

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(d) Interest rate risk

*i) Definition and management objective*

Interest rate risk refers to the risk of a decline in net asset value or a decrease in net interest income resulted from unfavorable changes in interest rates or maturity mismatch between assets and liabilities. The Company aims to manage changes in profits, resulting from changes in interest rates, within the acceptable levels and to maintain stable net asset value.

*ii) Risk management principles*

The Company's risk management principles for interest rate risk are as follows:

① Manage through periodic forecasts for market variables related to interest rates;

② Comply with interest rate risk limits and investment limits; and

③ Measures and manages risks through duration gap analysis, net asset value simulations, and maximum loss estimates.

*iii) Risk management*

The Company manages interest rate risks in interest-bearing assets (non-trading assets invested for the purpose of receiving interests and derivatives held for hedging) and interest-bearing liabilities (insurance contract liabilities and borrowings).

① Risk measurement method

The risk is measured by (i) the fair value of net assets at the interest rate level at the reporting date measured using a number of stochastic interest rate scenarios and deterministic scenarios generated based on economic scenarios, less (ii) the fair value of net assets based on a scenario at the 99.5% confidence level.

② Risk limit management and risk mitigation policy

The Company sets limits for interest rate risk management and the risk management department monitors the compliance with the limits on a monthly basis, the result of which is regularly reported to management, as well as the Risk Management Committee.

*iv) Current status of risk*

As of December 31, 2025, the interest risk for the non-trading position held by the Company is W1,243,781 million, which decreased by W504,898 million as compared to December 31, 2024 primarily due to the increases in market interest rates, the reflection of asset decomposition for assets included in indirect investment vehicles, the execution of bond forward contracts and reinsurance ceded under coinsurance arrangements, and the changes in actuarial and economic assumptions.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(e) Liquidity risk

*i) Definition and management objective*

Liquidity risk refers to the risk that arises from the inability to respond to situation such as maturity mismatch between assets and liabilities or unexpected fund outflows. The Company aims to (i) prevent insolvency due to lack of funds, (ii) minimize the risk of disposing assets held or borrowing funds abnormally or losing investment opportunities that resulted from a maturity mismatch between financing and operating, and (iii) maintain stable profitability.

*ii) Management principles*

The Company's risk management principles of liquidity risk are as follows:

① Retain management strategies including liquidity risk management goals, management policies, and internal control systems;

② Establish a framework to calculate and manage an actual liquidity gap that reflects actual maturity of assets and liabilities, real cash flows based on changes in consumer behavior (such as overdue), off-balance sheet transactions, new transaction or financing amounts;

③ Manage risks by conducting a liquidity forecast analysis on a regular basis, and avoid concentration of financial and operational activities at a certain point of time;

④ Comply with liquidity risk limits; and

⑤ Establish risk management plans for a liquidity crisis.

*iii) Risk management*

The Company manages liquidity risks in all items that accompany cash inflows and outflows such as assets and liabilities on the balance sheet and off-balance sheet transactions.

① Risk measurement method

The risk of insufficient fund is measured based on the 3-month real liquidity gap.

② Risk limit management and risk mitigation policy

The Company sets and monitors various indicators for liquidity risk management and regularly reports them to the management and the Risk Management Committee. The Company prepares for a liquidity crisis by establishing an emergency financing plan to secure liquidity in case of an unexpected liquidity shortage.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(e) Liquidity risk (continued)

*iv) Contractual maturities for financial instruments and off-balance sheet accounts*

Contractual maturities for financial instruments and off-balance sheet accounts as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Due in**<br>**1 month**<br>**or less** | **Due after**<br>**1 month**<br>**through**<br>**3 months** | **Due after**<br>**3 months**<br>**through**<br>**6 months** | **Due after**<br>**6 months**<br>**through**<br>**1 year** | **Due after**<br>**1 year**<br>**through**<br>**5 years** | **Due after**<br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 1082409 | 160022 | 2247 | 7079 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228377 | 982877 | 2463011 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 40862 | 40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 4216934 | 27763 | 157841 | 358645 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2193472 | 6269759 | 13224414 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 91593 | 128245 | 181257 | 298874 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5049067 | 29539422 | 35288458 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 8776 | 787207 | 10258 | 27112 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;501527 | 3735253 | 5070133 |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 57374 | 122086 | 113849 | 204935 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;792775 | 1559894 | 2850913 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 110124 | 24625 | 7429 | 67514 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350280 | 663553 | 1223525 |
|  | W | 5567210 | 1249948 | 472881 | 964159 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9115498 | 42791620 | 60161316 |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debentures | W | - | 8150 | 8150 | 16300 | 882900 | - | 915500 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities(\*1) |  | 170793 | 40913 | 10196 | 414719 | 29259 | 14 | 665894 |
| &nbsp;&nbsp;&nbsp;Lease liabilities(\*1)  |  | 3267 | 4721 | 8892 | 16634 | 35327 | - | 68841 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract<br>liabilities |  | 189704 | 15843 | 91042 | 159182 | 1085912 | - | 1541683 |
|  | W | 363764 | 69627 | 118280 | 606835 | 2033398 | 14 | 3191918 |
| **Derivatives:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows(\*2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 132809 | 187596 | 470973 | 596506 | 3914657 | 702040 | 6004581 |
| &nbsp;&nbsp;Cash outflows(\*2) |  | (159573) | (1125495) | (616661) | (722646) | (6941989) | (796258) | (10362622) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (26764) | (937899) | (145688) | (126140) | (3027332) | (94218) | (4358041) |
| &nbsp;&nbsp;&nbsp;**Off-balance sheet accounts:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Unused loan <br> commitments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 373782 | - | - | - | - | - | 373782 |
| &nbsp;&nbsp;&nbsp;Capital commitments |  | 1304582 | - | - | - | - | - | 1304582 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1678364 | - | - | - | - | - | 1678364 |

---

(\*1) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities and other financial liabilities.

(\*2) Derivatives for hedging are contractual amounts, including principal and interest, while derivatives for trading are at the carrying amounts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**5. <u>Financial risk management (continued)</u>**

(e) Liquidity risk (continued)

*iv) Contractual maturities for financial instruments and off-balance sheet accounts (continued)*

Contractual maturities for financial instruments and off-balance sheet accounts as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Due in**<br>**1 month**<br>**or less** | **Due after**<br>**1 month**<br>**through**<br>**3 months** | **Due after**<br>**3 months**<br>**through**<br>**6 months** | **Due after**<br>**6 months**<br>**through**<br>**1 year** | **Due after**<br>**1 year**<br>**through**<br>**5 years** | **Due after**<br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 411272 | 133235 | 2333 | 10407 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;238383 | 941880 | 1737510 |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 35450 | 35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  | 578738 | 29553 | 52179 | 232553 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2758457 | 7893053 | 11544533 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 101019 | 159135 | 301887 | 518381 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5751768 | 30815245 | 37647435 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 271 | 43499 | 5435 | 47290 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1286246 | 3809549 | 5192290 |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 57514 | 183341 | 143029 | 390108 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;924467 | 1802924 | 3501383 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | 128209 | 6482 | 2942 | 72947 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;341764 | 627729 | 1180073 |
|  | W | 1277023 | 555245 | 507805 | 1271686 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11301085 | 45925830 | 60838674 |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debentures | W | - | 3900 | 3900 | 7800 | 339000 | - | 354600 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities(\*1) |  | 154298 | 52957 | 8758 | 220408 | 24835 | 19 | 461275 |
| &nbsp;&nbsp;&nbsp;Lease liabilities(\*1)  |  | 2974 | 5812 | 8584 | 16336 | 46901 | - | 80607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract<br>liabilities |  | 106106 | 201023 | 286458 | 404864 | 334017 | - | 1332468 |
|  | W | 263378 | 263692 | 307700 | 649408 | 744753 | 19 | 2228950 |
| **Derivatives:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows(\*2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 49753 | 170259 | 421154 | 675508 | 3488758 | 340458 | 5145890 |
| &nbsp;&nbsp;Cash outflows(\*2) |  | (57709) | (277736) | (485421) | (778333) | (6423718) | (504308) | (8527225) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (7956) | (107477) | (64267) | (102825) | (2934960) | (163850) | (3381335) |
| &nbsp;&nbsp;&nbsp;**Off-balance sheet accounts:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Unused loan <br> commitments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 164307 | - | - | - | - | - | 164307 |
| &nbsp;&nbsp;&nbsp;Capital commitments |  | 1354692 | - | - | - | - | - | 1354692 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1518999 | - | - | - | - | - | 1518999 |

---

(\*1) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities and other financial liabilities.

(\*2) Derivatives for hedging are contractual amounts, including principal and interest, while derivatives for trading are at the carrying amounts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**6. <u>Insurance risk management</u>**

(a) Overview of insurance risk

Insurance risk is the likelihood that insured events occur and the uncertainty of the total amount and timing of claims for the insured events occurred. The main risk covered by insurance contracts is the risk that the actual claim or benefit payment will exceed the accumulated insurance liability. This risk can occur for the following reasons:

① Frequency risk: a possibility that the number of occurrences of the insured event is different from the expected number

② Severity risk: a possibility that the cost of an incident may be different from the expected cost level

By experience, when there are more similar insurance contracts or they are more diversified, the less likely it is that abnormal effects from some contracts will occur. The Company takes this into account when underwriting contracts and strives to form a sufficiently large and diversified group of contracts.

Insurance risk includes a lack of risk diversification and relates to geographical location and the nature of the policyholder as well as to the diversification of risk forms or sizes.

If the insurance contract covers death, a catastrophe affects the frequency the most and can affect the frequency of death earlier than expected due to a wide range of causes such as eating habits, smoking, and exercise habits, etc. In addition, if the coverage is survival, medical technology and social conditions can increase the survival rate. The frequency may also be affected by excessive concentration in residential areas of policyholders.

Insurance accidents in life insurance include not only the death of the policyholders (insured) but also survival, disability and hospitalization.

The Company basically classifies the Company's insurance products into individual insurance and group insurance according to the policyholder. Group insurance means a contract under which the insured belongs to a group of a certain size or larger and in which the policyholder is the representative of the group or organization. The group insurance can be divided into savings and protections. Protection insurance means insurance in which the sum of benefits paid for survival at the base age does not exceed the premium already paid; savings insurance is defined as insurance, except for protection insurance, in which the sum of benefits paid for survival exceeds the premium already paid. Individual insurance can be classified into life insurance in which the insured's death is insured, survival insurance in which the life is insured for a certain period of time, and endowment insurance in which life insurance and survival insurance are mixed.

Life insurance products can also be divided into guaranteed fixed rates, floating rates, interest accreted rate linked, and variable types by the applying term structures of interest types.

In the guaranteed fixed interest type, since the expected rate does not change from the time the policyholder enters into the contract to the end of the insurance period, the Company assumes the interest rate risk if the asset management return rate or market interest rate is lower than the expected rate. Floating interest rate type divides the net insurance premium into the guaranteed portion and the reserve portion; the guaranteed portion is applied with the predetermined expected rate, and the reserve portion changes based on the reserve rate for policy reserve according to asset management return rate, which makes partial hedge to interest rate risk, but the Company assumes some interest rate risk from the changes of asset management return rate, etc. since the minimum reserve rate for policy reserve is predetermined.

The Company uses acquisition strategies and reinsurance strategies to manage insurance risk of uncertainties of the total amount and timing of insurance claims paid due to insured events.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**6. <u>Insurance risk management (continued)</u>**

(a) Overview of the insurance risk (continued)

① Acceptance strategy

Acceptance strategy means diversifying the type of risk or the level of claims from that are accepted insurance policies. For example, the Company can balance mortality and survival risks. In addition, the selection of policyholders through regular health check-ups is one of the major acceptance strategies.

② Reinsurance strategy

The risk of reinsurance contracts held to the Company is based on the accepted insurance contracts, which can be the total amount of risk or risk per contract on a per capita basis or per contract basis. In principle, the reinsurance method provides the risk premium excess reinsurance, but other methods may be used within the scope of the relevant laws as required. The degree of reinsurance held by the Company shall be determined by considering the Company's assets, contract conditions, risk level, and technology for selecting the contract.

Insurance risk can also be affected by the policyholder's right to terminate the contract or exercise annuity conversion rights to reduce or not pay the full premium. As a result, insurance risks may be affected by the policyholder's actions and decisions. The Company's insurance risk can be estimated on the assumption that the policyholder is reasonable. For example, a person who is worse than a person in good health would have less intention of terminating insurance that covers death. These factors are also reflected in the assumptions about the Company's insurance liabilities.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**6. <u>Insurance risk management (continued)</u>**

(b) Insurance risk management policy

*i) Measurement of Insurance Risk*

Unlike other financial instruments, life insurance companies' insurance policies have the characteristics of long-term contracts, which can be exposed to insurance risk that may arise due to an increase in actual claim payments than the risk rate determined at the time of development of the product and interest rate risk that may arise due to differences in interest rates and maturities between insurance liabilities and asset management.

The purpose of the Company's risk management is to generate long-term stable growth and profits by proactively preventing and systematically managing the various risks that may arise in the course of management activities, reflecting these uncertain financial environments and the characteristics of life insurance products with long-term attributes.

The Company divides insurance risks arising from life insurance contracts into six sub-risks: death risk, longevity risk, disability/disease risk, cancellation risk, operating expense risk, and catastrophe risk. The risk amount for each sub-risk is measured on assets and liabilities that may directly or indirectly cause loss to the Company in the event of changes in actuarial assumptions, and is calculated based on the net asset value through the shock scenario method or risk coefficient method for each sub-risk.

The shock scenario method, one of the insurance risk measurement methods, is a method of calculating the amount of change in net asset value when applying a scenario in which the basic assumptions used for market valuation of assets or liabilities change. On the other hand, the risk coefficient method is a method that calculates the amount by multiplying a specific exposure by a specified risk coefficient, and is suitable for risk amounts that have short maturity or do not have large changes in net asset value during market valuation. In addition, the Company calculates the life insurance risk amount considering the diversification effect by adding the risk amount calculated for each sub-risk, reflecting the correlation coefficient between the sub-risks.

*ii) Insurance risk management organization and management method*

The Company measures the statutory minimum level of capital based on the life insurance risk amount and manages it within the allowable range. For this purpose, the Company establishes basic principles of risk management and establishes and implements regulations and management systems to implement them. In addition, the Company supports decision-making related to various risks through the Risk Management Committee and risk management organization, and prepare risk management procedures to identify and manage risks in a timely manner.

In general, risk management procedures are to recognize exposed risks, measure their size, set acceptable limits, monitor them regularly to report to management, and efficiently control and manage risks in case they exceed their limits.

Management methods by risk type are as follows:

① Insurance risk management

The Company develops insurance products with proper profitability by setting the profitability guidelines from the time of product development, establishes and operates the acceptance policy to prevent reverse selection, running the claim-screening policy to make claim payments.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**6. <u>Insurance risk management (continued)</u>**

(b) Insurance risk management policy (continued)

*ii) Insurance risk management organization and management method (continued)*

② Interest rate risk management

The Company establishes a guideline and consider the market interest rate and asset management return rate to determine the published interest rate and expected interest rate within the guidelines. The Company also establishes the asset management strategy considering the interest rate level and maturity of liabilities; establishes a long-term target portfolio by comprehensively considering the risk level and rate of return of operating assets after analyzing the properties of long-term insurance liabilities, and sets a viable portfolio as a guideline every year to allocate and manage assets.

③ Liquidity risk management

The Company inspects and manages the amount of claims paid insurance and liquid assets periodically.

④ Equity price risk management

Equity price risk is managed in accordance with established management principles, including periodic forecasting, compliance with risk limits and investment limits, and the establishment and operation of appropriate portfolios. In addition, equity price risk is measured periodically and monitored by the risk management department, and the results are reported to management and the Risk Management Committee. Detailed information on equity price risk management is disclosed in Note 5 '*Financial risk management*.'

(c) Korean Insurance Capital Standard(K-ICS)

K-ICS is an equity capital system that precisely evaluates risk and financial soundness by evaluating the assets and liabilities of insurance companies to market so that they can be applied under the financial statements prepared in accordance with K-IFRS 1117 on insurance contracts. To maintain consistency in mark-to-market valuation and ensure consistency with international capital regulations, the supervisory authorities introduced K-ICS based on mark-to-market valuation, which improves the quality of insurance companies' capital by calculating available and required capital in line with economic substance. This is a system designed to encourage improvement and strengthen risk management.

With the introduction of K-ICS, the supervisory authorities have established standards for preparing a financial position statement based on soundness supervision standards to separately calculate assets and liabilities that meet the purpose of supervision and at the same time substantially reflect the risks of insurance companies. In the K-ICS, the available capital, or solvency amount, is measured based on the basic capital and supplementary capital classified by the loss absorption capacity of the net asset amount in the statement of financial position based on soundness supervision standards evaluated at market price, and there are some restrictions on loss compensation. Supplementary capital, defined as having, can be reflected in the solvency amount up to 50% of the required capital. In addition, the required capital under the K-ICS, that is, the solvency standard amount, refers to the amount of potential losses that may occur in the insurance company over the next year. Specifically, the K-ICS divides the risks exposed due to insurance contract underwriting and asset management into five risks: life and long-term non-life insurance risk, general non-life insurance risk, market risk, credit risk, and operational risk. Under the 99.5% confidence level, the solvency standard amount is required to be measured by calculating the maximum loss that can occur over the next year using the shock scenario method.

Under the K-ICS, the risk-based capital ratio is calculated by dividing the solvency amount by the solvency standard amount. If the insurance company's solvency ratio is less than 100%, it indicates that the solvency standard amount measured by the potential loss amount cannot be covered with capital, which means that the insurance company's capital soundness has become poor, and the supervisory authority must comply with the Insurance Business Supervision Regulations. Accordingly, insurance companies with a solvency ratio of less than 100% are required to take timely corrective actions such as management improvement recommendations, management improvement requests, or management improvement orders. As such, the new solvency system is a system in which the supervisory authorities seek to protect policyholders by supervising the capital adequacy and risk management capabilities of insurance companies.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**6. <u>Insurance Risk management (continued)</u>**

(d) Financial risks related to insurance contracts

Investment contracts that include insurance contracts and discretionary participation feature may be exposed to financial risks although it is an insurance liability, and the form of exposure is as follows:

① Credit risk

Credit risk refers to the risk of loss resulting from the borrower's failure to repay a loan or meet contractual obligations. The Company's reinsurance assets are exposed to credit risk as assets that may incur losses if the reinsurer defaults at the time of receipt of the claims and receivables.

② Interest rate risk

Interest rate risk means the risk that arises when the Company's financial position fluctuates unfavorably due to the effect of interest rates on assets and liabilities. The Company manages matched assets and liabilities for each portfolio to minimize the impact of mismatches between assets and liabilities caused by interest rate fluctuations, thus reducing the risk.

③ Liquidity risk

Liquidity risk refers to the risk that assets and liabilities are subject to inconsistency or failure to respond to unexpected cash outflows. Therefore, future cash outflows from investment contracts, including insurance liabilities which account for most of the Company's liabilities and discretionary participation features, are factors used to determine the level of risk associated with the Company's liquidity.

The purpose of the Company's management of liquidity risk is to maintain sufficient liquidity to prepare for repayments arising from insurance contracts under normal circumstances or when market shocks occur. The Company's main liquidity risk management methods are as follows:

- Regularly inspect and manage the amount of insurance payments and liquid assets

- Maintain and manage a portfolio comprised of assets that can be relatively easily liquidated in preparation for unexpected disruptions in financing.

- Monitoring liquidity ratios by running liquidity stress tests

- Establishment of asset liability management strategy considering insurance contract liability cash flow

④ Market risk

Market risk refers to the risk of loss arising when the Company's financial position fluctuates unfavorably due to adverse price fluctuations such as stock prices and exchange rates. The Company carries out insurance contract transactions denominated in foreign currencies and is therefore exposed to exchange rate fluctuations. Exposure to exchange rate fluctuations is managed through foreign exchange forward contracts and interest rate swaps between different currencies.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(e) Concentration of insurance risk

*i) The concentration of insurance risks (based on the fulfilment cash flows) by region as of December 31, 2025 and 2024 are as follow:*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Insurance contracts** | **Insurance contracts** | **Insurance contracts** |  |  |
|  |  | **Participating** | **Non-Participating** | **Variable** | **Reinsurance contracts** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | &nbsp;&nbsp;W | 4959061 | 29808664 | 5591163 | 53047 | 40411935 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Insurance contracts** | **Insurance contracts** | **Insurance contracts** |  |  |
|  |  | **Participating** | **Non-Participating** | **Variable** | **Reinsurance contracts** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | &nbsp;&nbsp;W | 5200167 | 31160425 | 4834945 | 345177 | 41540714 |

---

*ii) The amount of foreign currency insurance liabilities (based on the fulfilment cash flows) as of December 31, 2025 and 2024 are as follow:*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of USD and EUR, and* |  |  | **2025** | **2025** | **2024** | **2024** |
| &nbsp;&nbsp;&nbsp;*in millions of won)* |  |  | **Foreign currency amount** | **KRW converted amount** | **Foreign currency amount** | **KRW converted amount** |
| &nbsp;&nbsp;&nbsp;Foreign Currency Insurance Liabilities | &nbsp;&nbsp;&nbsp;USD | W  | 279946 | 401695 | 168209 | 247267 |
| &nbsp;&nbsp;&nbsp;- Non-participating | &nbsp;&nbsp;&nbsp;EUR |  | 110 | 185 | 119 | 182 |
|  |  | W |  | 402880 |  | 247449 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows:

*i) Participating insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 4738480 | 130865 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 4732654 | 127293 | 9398 | (1887) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 4742230 | 126951 | 165 | 115 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 4738480 | 130865 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 4726618 | 130294 | 12433 | (6606) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 4750500 | 131545 | (12700) | 6861 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 4743228 | 128161 | (2044) | 611 |

---

(\*1) The amounts are before reflecting the reinsurance effect.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 4979280 | 118533 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 4974196 | 114164 | 9453 | (1895) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 4984691 | 113928 | (806) | 124 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 4979280 | 118533 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 4963981 | 120301 | 13532 | (5710) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 4994968 | 116666 | (13820) | 5949 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 4984797 | 115214 | (2197) | 484 |

---

(\*1) The amounts are before reflecting the reinsurance effect.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

*ii) Non-participating insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 28288556 | 7199651 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 28406579 | 7081232 | 397 | (2440) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 29032742 | 6553779 | (98314) | 41408 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 28288556 | 7199651 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 29032371 | 6475155 | (19318) | (78503) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 27470393 | 8000387 | 17427 | 82187 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 28487259 | 7007703 | (6755) | 15146 |

---

(\*1) The amounts are before reflecting the reinsurance effect.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 29627853 | 6969672 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 29749337 | 6848600 | (411) | (9443) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 30300967 | 6324390 | (27831) | 14386 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 29627853 | 6969672 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 30338377 | 6275939 | (16791) | (89404) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 28845362 | 7734641 | 17522 | 98708 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 29820711 | 6782260 | (5446) | 8158 |

---

(\*1) The amounts are before reflecting the reinsurance effect.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

*iii) Variable insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 5528259 | 223218 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 5542000 | 218227 | (8750) | 2058 |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 5553328 | 218469 | (20320) | 2632 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 5528259 | 223218 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 5585976 | 190331 | (24830) | (9064) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 5464450 | 278118 | 8909 | 9826 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 5541523 | 216204 | (6250) | 1203 |

---

(\*1) The amounts are before reflecting the reinsurance effect.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity(\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 4773118 | 135908 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 4788129 | 128304 | (7407) | 1386 |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 4797541 | 129336 | (17851) | 1666 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 4773118 | 135908 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 4824350 | 106919 | (22243) | (9536) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 4716553 | 190190 | 2282 | 10428 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 4786747 | 127067 | (4787) | 981 |

---

(\*1) The amounts are before reflecting the reinsurance effect.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(f) Sensitivity of insurance risks (continued)

The impact of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows: (continued)

*iv) After reflecting the reinsurance effect*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 38727725 | 7062840 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 38845670 | 6943850 | 1045 | (2160) |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 39445049 | 6463985 | (118469) | 41920 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 38727725 | 7062840 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 39477221 | 6345060 | (31715) | (92695) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 37900620 | 7876309 | 13636 | 97419 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 38944441 | 6861174 | (15050) | 16960 |

---

(\*1) The amounts represent the aggregate of participating, non-participating, and variable insurance contracts.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Base amount and base amount**<br>**after change** | **Base amount and base amount**<br>**after change** | **Impact on profit or loss and equity**<br>**(before tax)** | **Impact on profit or loss and equity**<br>**(before tax)** |
|  | &nbsp;&nbsp;&nbsp;**Sensitivity (\*2)** |  | **Fulfillment cash flows (\*3)** | **Contractual service margin** | **Profit or loss (\*4)** | **Other comprehensive income** |
| &nbsp;&nbsp;&nbsp;Base amount |  | &nbsp;&nbsp;&nbsp;W | 39819864 | 6869326 | - | - |
| &nbsp;&nbsp;&nbsp;Mortality rate | increased by 3.27% |  | 39946680 | 6740875 | 1635 | 8702 |
| &nbsp;&nbsp;&nbsp;Morbidity<br>(fixed compensation)<br>Morbidity<br>(actual loss compensation) | increased by 3.40%<br>increased by 2.62% |  | 40478965 | 6256714 | (46488) | 34285 |
| &nbsp;&nbsp;&nbsp;Long-term property and other | increased by 4.19% |  | 39819864 | 6869326 | - | - |
| &nbsp;&nbsp;&nbsp;Lapse rate(increase) | increased by 9.16% |  | 40533222 | 6181469 | (25501) | (86772) |
| &nbsp;&nbsp;&nbsp;Lapse rate(decrease) | decreased by 9.16% |  | 39031830 | 7651376 | 5984 | 133903 |
| &nbsp;&nbsp;&nbsp;Operating expense<br>Operating expense(inflation) | increased by 2.62%<br>increased by 0.26%p |  | 40031868 | 6669753 | (12430) | 9624 |

---

(\*1) The amounts represent the aggregate of participating, non-participating, and variable insurance contracts.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4)The profit (loss) for the year represents (i) increases in the estimates of the present value of the future cash flows that exceed the carrying amount of the contractual service margin, giving rise to a loss, which resulted from the changes in assumptions and (ii) changes in the estimates of the present value of the future cash flows allocated to the loss component, which resulted from the changes in assumptions.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(g) Credit risk arising from insurance contracts

The amount of the reinsurance contracts assets held by risk level as of December 31, 2025 and 2024 are as follow:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Reinsurance contract assets for**<br>**remaining coverage** | **Reinsurance contract assets for incurred claims** | **Reinsurance contract assets for**<br>**remaining coverage** | **Reinsurance contract assets for incurred claims** |
| &nbsp;&nbsp;&nbsp;AA+ ~ AA- | W  | 335,136 | 20,462 | - | 146 |

---

(h) Interest rate risk arising from insurance contracts

The impact of exposure to interest rate risk and interest rate changes on profit or loss on equity as of December 31, 2025 and 2024 are as follow:

① Interest rate risk exposure

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;Exposure to financial instruments measured at fair value (\*1) | &nbsp;&nbsp;W | &nbsp;&nbsp;47717387 | &nbsp;&nbsp;48843348 |
| &nbsp;&nbsp;Insurance contract exposure (\*2)  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating |  | &nbsp;&nbsp;4738480 | &nbsp;&nbsp;4979280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;28289432 | &nbsp;&nbsp;29628025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;5528259 | &nbsp;&nbsp;4773118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others (\*3) |  | &nbsp;&nbsp;172430 | &nbsp;&nbsp;439613 |
| &nbsp;&nbsp;Net exposure (financial instruments less insurance contracts) |  | &nbsp;&nbsp;8988786 | &nbsp;&nbsp;9023313 |

---

(\*1) It is the total amount of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, and derivative assets (liabilities).

(\*2) It is the amount of insurance contract liabilities and reinsurance contract assets (liabilities) for remaining coverage, less contractual service margin.

(\*3) The amount relates to reinsurance contracts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(h) Interest rate risk arising from insurance contracts (continued)

The impact of exposure to interest rate risk and interest rate changes on profit or loss on equity as of December 31, 2025 and 2024 are as follow: (continued)

② Interest Rate Risk Sensitivity

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2025** | **2024** | **2024** |
|  |  |  | **Effects on<br>profit or loss** | **Effects on equity** | **Effects on<br>profit or loss** | **Effects on equity** |
| 100bp Increase | Insurance contracts (\*1) |  |  |  |  |  |
| 100bp Increase | &nbsp;&nbsp;&nbsp;Participating | W | - | 509420 | - | 539618 |
| 100bp Increase | &nbsp;&nbsp;&nbsp;Non-participating |  | - | 4535425 | - | 3772927 |
| 100bp Increase | &nbsp;&nbsp;&nbsp;Variable |  | - | 21308 | - | 44699 |
| 100bp Increase | Reinsurance contracts (\*1) |  | - | 255489 | - | 50365 |
| 100bp Increase | Financial assets (\*2) |  | (26466) | (4736892) | (35934) | (4777699) |
| 100bp Decrease | Insurance contracts (\*1) |  |  |  |  |  |
| 100bp Decrease | &nbsp;&nbsp;&nbsp;Participating |  | - | (620972) | - | (658212) |
| 100bp Decrease | &nbsp;&nbsp;&nbsp;Non-participating |  | - | (5802811) | - | (5332780) |
| 100bp Decrease | &nbsp;&nbsp;&nbsp;Variable |  | - | (60875) | - | (82742) |
| 100bp Decrease | Reinsurance contracts (\*1) |  | - | (308842) | - | (59948) |
| 100bp Decrease | Financial assets (\*2) |  | 26563 | 5800791 | 35934 | 5837965 |

---

(\*1) This is the effects on equity (before tax) due to changes in expected cash flows of insurance and reinsurance contracts, excluding variable annuities/savings.

(\*2) Calculated for assets related to insurance contracts excluding variable annuities/savings. The profit or loss effects are the changes in financial assets recognized at fair value through profit or loss, and the equity effects are the changes in financial assets at fair value through other comprehensive income and interest rate derivatives.

(i) Equity price risk arising from insurance contracts

The effects of changes in equity prices on profit or loss and equity as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2025** | **2024** | **2024** |
|  |  |  | **Effects on<br>profit or loss** | **Effects on equity** | **Effects on<br>profit or loss** | **Effects on equity** |
| 10% Increase | Insurance contracts |  |  |  |  |  |
| 10% Increase | &nbsp;&nbsp;&nbsp;Participating | W | - | - | - | - |
| 10% Increase | &nbsp;&nbsp;&nbsp;Non-participating |  | - | - | - | - |
| 10% Increase | &nbsp;&nbsp;&nbsp;Variable |  | (255595) | - | (193578) | - |
| 10% Increase | Reinsurance contracts |  | - | - | - | - |
| 10% Increase | Financial assets |  | 255595 | - | 193578 | - |
| 10% Decrease | Insurance contracts |  |  |  |  |  |
| 10% Decrease | &nbsp;&nbsp;&nbsp;Participating |  | - | - | - | - |
| 10% Decrease | &nbsp;&nbsp;&nbsp;Non-participating |  | - | - | - | - |
| 10% Decrease | &nbsp;&nbsp;&nbsp;Variable |  | 255595 | - | 193578 | - |
| 10% Decrease | Reinsurance contracts |  | - | - | - | - |
| 10% Decrease | Financial assets |  | (255595) | - | (193578) | - |

---

(\*) The analysis is based on assets related to variable annuity and savings insurance contracts to which the variable fee approach is applied, and the profit or loss effects represent changes in financial assets at fair value through profit or loss.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(j) Liquidity risk arising from insurance contracts

As of December 31, 2025 and 2024, the amount of undiscounted remaining contractual cash flows by maturity date are as follow. This amount does not include liabilities for remaining coverage (insurance contracts and reinsurance contracts) measured by applying the premium allocation approach.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Less than** <br>**1 year** | **1~2**<br>**year** | **2~3** <br>**year** | **3~4** <br>**year** | **4~5** <br>**years** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Insurance Contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows | W | 34397 | 25425 | 20141 | 16443 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13515 | 63988 | 173909 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (240847) | (253700) | (255690) | (258371) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(261112) | (8042439) | (9312159) |
|  |  | (206450) | (228275) | (235549) | (241928) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(247597) | (7978451) | (9138250) |
| &nbsp;&nbsp;&nbsp;Non-participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 6331260 | 5662522 | 5010684 | 4358197 | 3771019 | 51088737 | 76222419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (5068663) | (4871804) | (4780238) | (4705099) | (4437033) | (134903633) | (158766470) |
|  |  | 1262597 | 790718 | 230446 | (346902) | (666014) | (83814896) | (82544051) |
| &nbsp;&nbsp;&nbsp;Variable insurance |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 437302 | 361966 | 297826 | 249995 | 213177 | 2158311 | 3718577 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (948429) | (855175) | (765759) | (669433) | (604609) | (8817026) | (12660431) |
|  |  | (511127) | (493209) | (467933) | (419438) | (391432) | (6658715) | (8941854) |
|  | W | 545020 | 69234 | (473036) | (1008268) | (1305043) | (98452062) | (100624155) |
| **Reinsurance contract** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 322122 | 302044 | 286274 | 278232 | 271893 | 9694621 | 11155186 |
| &nbsp;&nbsp;Cash outflows |  | (347205) | (334989) | (321136) | (312211) | (305518) | (9388316) | (11009375) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (25083) | (32945) | (34862) | (33979) | (33625) | 306305 | 145811 |
| &nbsp;&nbsp;Total (including variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 519937 | 36289 | (507898) | (1042247) | (1338668) | (98145757) | (100478344) |
| &nbsp;&nbsp;Total (excluding variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1031064 | 529498 | (39965) | (622809) | (947236) | (91487042) | (91536490) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(j) Liquidity risk arising from insurance contracts (continued)

As of December 31, 2025 and 2024, the amount of undiscounted remaining contractual cash flows by maturity date are as follow. This amount does not include liabilities for remaining coverage (insurance contracts and reinsurance contracts) measured by applying the premium allocation approach. (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Less than** <br>**1 year** | **1~2**<br>**year** | **2~3** <br>**year** | **3~4** <br>**year** | **4~5** <br>**years** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Insurance Contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows | W | 43374 | 33437 | 24916 | 19959 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16437 | 106215 | 244338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (240206) | (228226) | (232215) | (241157) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(240783) | (8645374) | (9827961) |
|  |  | (196832) | (194789) | (207299) | (221198) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(224346) | (8539159) | (9583623) |
| &nbsp;&nbsp;&nbsp;Non-participating insurance: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 5582811 | 4840753 | 4361203 | 3863416 | 3314013 | 47454014 | 69416210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (5750906) | (4300951) | (4353876) | (4074145) | (4294566) | (124429513) | (147203957) |
|  |  | (168095) | 539802 | 7327 | (210729) | (980553) | (76975499) | (77787747) |
| &nbsp;&nbsp;&nbsp;Variable insurance |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash inflows |  | 482531 | 402250 | 334537 | 279308 | 237124 | 2351146 | 4086896 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash outflows |  | (916187) | (783304) | (709458) | (636965) | (559272) | (8181229) | (11786415) |
|  |  | (433656) | (381054) | (374921) | (357657) | (322148) | (5830083) | (7699519) |
|  | W | (798583) | (36041) | (574893) | (789584) | (1527047) | (91344741) | (95070889) |
| **Reinsurance contract** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash inflows | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 225165 | 216544 | 209995 | 207721 | 207575 | 8223398 | 9290398 |
| &nbsp;&nbsp;Cash outflows |  | (244930) | (237756) | (230883) | (227262) | (226934) | (9123146) | (10290911) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (19765) | (21212) | (20888) | (19541) | (19359) | (899748) | (1000513) |
| &nbsp;&nbsp;Total (including variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (818348) | (57253) | (595781) | (809125) | (1546406) | (92244489) | (96071402) |
| &nbsp;&nbsp;Total (excluding variable insurance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (384692) | 323801 | (220860) | (451468) | (1224258) | (86414406) | (88371883) |

---

As of December 31, 2025 and 2024, the amount to be paid upon request by policyholders of insurance contracts issued is W56,064,811 million and W53,227,935 million, respectively.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(k) Claims development

The Claims development as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Total** |
|  |  | **Y - 4** | **Y - 3** | **Y - 2** | **Y - 1** | **Current** <br>**Period (Y)** | **Total** |
| &nbsp;&nbsp;&nbsp;Estimates of undiscounted ultimate gross claims | W | 1069793 | 1106219 | 1154705 | 1232242 | 1419726 | 5982685 |
| &nbsp;&nbsp;&nbsp;Claims paid |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;At end of accident year |  | 832601 | 857694 | 896770 | 952706 | 1098335 | 4638106 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 year later |  | 187431 | 194972 | 201175 | 220039 | - | 803617 |
| &nbsp;&nbsp;&nbsp;&nbsp;2 years later |  | 27435 | 27703 | 30697 | - | - | 85835 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 years later |  | 12000 | 15032 | - | - | - | 27032 |
| &nbsp;&nbsp;&nbsp;&nbsp;4 years later |  | 4859 | - | - | - | - | 4859 |
| &nbsp;&nbsp;&nbsp;Cumulative claims paid |  | 1064326 | 1095401 | 1128642 | 1172745 | 1098335 | 5559449 |
| &nbsp;&nbsp;&nbsp;Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid |  | 5467 | 10818 | 26063 | 59497 | 321391 | 423236 |
| &nbsp;&nbsp;&nbsp;Effect of discounting |  | - | - | - | - | - | (12313) |
| &nbsp;&nbsp;&nbsp;Future claim adjustment expenses |  | - | - | - | - | - | 9205 |
| &nbsp;&nbsp;&nbsp;Incurred claims that have been confirmed but not paid |  | - | - | - | - | - | 1366616 |
| &nbsp;&nbsp;&nbsp;Risk adjustment for non-financial risk |  | - | - | - | - | - | 15973 |
| &nbsp;&nbsp;&nbsp;Reinsurance effect |  | - | - | - | - | - | (119384) |
| Net liability for incurred claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W |  |  |  |  |  | 1683333 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**6. <u>Insurance risk management (continued)</u>**

(k) Claims development (continued)

The Claims development as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Year of accident** | **Total** |
|  |  | **Y - 4** | **Y - 3** | **Y - 2** | **Y - 1** | **Current** <br>**Period (Y)** | **Total** |
| &nbsp;&nbsp;&nbsp;Estimates of undiscounted ultimate gross claims | W | 959974 | 1070850 | 1104112 | 1152207 | 1233110 | 5520253 |
| &nbsp;&nbsp;&nbsp;Claims paid |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;At end of accident year |  | 746984 | 833427 | 857650 | 896474 | 957713 | 4292248 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 year later |  | 166072 | 187415 | 195026 | 202132 | - | 750645 |
| &nbsp;&nbsp;&nbsp;&nbsp;2 years later |  | 23751 | 27433 | 27763 | - | - | 78947 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 years later |  | 13248 | 12079 | - | - | - | 25327 |
| &nbsp;&nbsp;&nbsp;&nbsp;4 years later |  | 4849 | - | - | - | - | 4849 |
| &nbsp;&nbsp;&nbsp;Cumulative claims paid |  | 954904 | 1060354 | 1080439 | 1098606 | 957713 | 5152016 |
| &nbsp;&nbsp;&nbsp;Difference between estimates of undiscounted ultimate gross claims and cumulative claims paid |  | 5070 | 10496 | 23673 | 53601 | 275397 | 368237 |
| &nbsp;&nbsp;&nbsp;Effect of discounting |  | - | - | - | - | - | (11011) |
| &nbsp;&nbsp;&nbsp;Future claim adjustment expenses |  | - | - | - | - | - | 7316 |
| &nbsp;&nbsp;&nbsp;Incurred claims that have been confirmed but not paid |  | - | - | - | - | - | 1436530 |
| &nbsp;&nbsp;&nbsp;Risk adjustment for non-financial risk |  | - | - | - | - | - | 14041 |
| &nbsp;&nbsp;&nbsp;Reinsurance effect |  | - | - | - | - | - | (94435) |
| Net liability for incurred claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W |  |  |  |  |  | 1720678 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**7. <u>Capital risk management</u>**

In order to manage the required capital for maintaining solvency, the Company measures the risk-based capital in a manner required by the supervisory authority, manages it internally, and discloses it externally. The Company also manages risk appetite based on internal model.

The solvency margin ratio is a measure of financial soundness or ability to pay claims by a life insurer and is calculated by dividing solvency margin by solvency capital requirement, where the solvency margin is a measure of the extent to which the Company can fulfill its obligations to policyholders even in the event of an unexpected loss or decline in asset value and solvency capital requirement is the Company's risk amount.

The Company manages the solvency margin ratio based on the separate financial statements and the supervisory authority requires insurance companies to maintain the solvency margin ratio at least 100%. If an insurance company fails to meet the solvency margin ratio requirement, the timely corrective measures shall be taken.

---

| | | |
|:---|:---|:---|
|  | **Solvency margin ratio** | **Improvement measures** |
| Management improvement recommendation | 50% or above through less than 100% | Increase in equity, restriction on initiating new business, etc.  |
| Management improvement request  | 0% or above through less than 50% | Request for replacement of executives, closure of subsidiaries, etc.  |
| Management improvement order | Less than 0% | Suspension of executive officers from office, suspension of insurance business, etc.  |

---

The Company obtains approval on the management standards for the solvency margin ratio based on risk-based capital from the Risk Management Committee every year.

As of December 31, 2025, the Company complies with the solvency margin ratio required by the supervisory authority. In addition, based on the internal model, the Company monitors compliance with the limits for each risk type every month that are approved by the Risk Management Committee based on total risk limit approved by the board of director. At this time, the risk appetite is managed to be within 100%.

The Company also conducts stress testing by setting crisis scenarios for interest rates, stock prices, and exchange rates. The stress test is conducted on both the solvency margin ratio and the internal model. The Company establishes a capital management plan based on the results and report to the management as well as the Risk Management Committee at least once a year.

**8. <u>Fair value of financial instruments</u>**

The fair value of financial instruments traded in the active market is calculated based on the quoted price of the trading brokerage agency as of the end of the reporting period.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques or the results of the assessment by an independent external assessment agency. The Company utilizes various valuation techniques and makes reasonable assumptions based on current market conditions at the end of the reporting period.

The Company classifies the fair value of financial instruments into three fair value levels:

- Level 1 : Measurement of fair value based on the prices disclosed in the active trading market.<br>- Level 2 : Measurement of fair value by valuation technique based on market-observed information<br>- Level 3 : Measurement of fair value based on unobservable information in the market.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value

*i) The details of fair value by valuation level of financial instruments measured at fair value in the separate statements of financial position as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| &nbsp;&nbsp;&nbsp;**Financial assets:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss | W  | - | 40862 | - | 40862 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Debt securities |  | 3019945 | 1672890 | 6622500 | 11315335 |
| &nbsp;&nbsp;&nbsp; Equity securities |  | 1909079 | - | - | 1909079 |
|  |  | 4929024 | 1672890 | 6622500 | 13224414 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  |  |  |  |  |
| Debt securities |  | 22931497 | 12255010 | - | 35186507 |
| Equity securities |  | - | - | 101951 | 101951 |
|  |  | 22931497 | 12255010 | 101951 | 35288458 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading |  | 657 | - | 965 | 1622 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 32852 | - | 32852 |
|  |  | 657 | 32852 | 965 | 34474 |
|  | W | 27861178 | 14001614 | 6725416 | 48588208 |
| &nbsp;&nbsp;&nbsp;**Financial liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading | W | 29 | - | - | 29 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 870793 | - | 870793 |
|  | W | 29 | 870793 | - | 870822 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| &nbsp;&nbsp;&nbsp;**Financial assets:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due from banks at fair value through profit or loss | W  | - | 35450 | - | 35450 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Debt securities |  | 3110322 | 1691714 | 5553964 | 10356000 |
| &nbsp;&nbsp;&nbsp; Equity securities |  | 1188533 | - | - | 1188533 |
|  |  | 4298855 | 1691714 | 5553964 | 11544533 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  |  |  |  |  |
| Debt securities |  | 23212859 | 14273161 | - | 37486020 |
| Equity securities |  | - | - | 161415 | 161415 |
|  |  | 23212859 | 14273161 | 161415 | 37647435 |
| &nbsp;&nbsp;&nbsp;Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading |  | 97 | - | 526 | 623 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 116899 | - | 116899 |
|  |  | 97 | 116899 | 526 | 117522 |
|  | W | 27511811 | 16117224 | 5715905 | 49344940 |
| &nbsp;&nbsp;&nbsp;**Financial liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Held for trading | W | 245 | - | - | 245 |
| &nbsp;&nbsp;&nbsp; Held for hedging |  | - | 501347 | - | 501347 |
|  | W | 245 | 501347 | - | 501592 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value (continued)

*ii) There is no transfer between level 1 and level 2 of financial instruments measured at fair value for the years ended December 31, 2025 and 2024.*

*iii) Valuation techniques and input variables for financial instruments classified as Level 2*

Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Type of financial instrument** | **Valuation techniques** |  | **2025** | **2024** | **Input variables** |
| &nbsp;&nbsp;**Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities | Net asset value (NAV), Discounted cash flow (DCF), Hull-White model | W | 1713752 | 1727164 | Discount rates, fair value of the underlying assets |
| &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities | DCF |  | 12255010 | 14273161 | Discount rates |
| Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward | Implied forward rate, DCF |  | 3506 | - | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swap | Implied forward rate, DCF |  | 2601 | 2369 | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward | Implied forward rate, DCF |  | 26745 | 114530 | Discount rates |
|  |  | W | 14001614 | 16117224 |  |
| **Financial liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward | Implied forward rate, DCF | W | 218886 | 202104 | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swap | Implied forward rate, DCF |  | 412716 | 245963 | Discount rates,<br>foreign exchange rates |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward | Implied forward rate, DCF |  | 239191 | 53280 | Discount rates |
|  |  | W | 870793 | 501347 |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value (continued)

*iv) Details of financial instruments classified as fair value level 3*

Changes in financial instruments classified as fair value level 3 for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financial assets at fair value through profit or loss**  | **Securities at fair value through other comprehensive income** | **Net derivatives held for trading** | **Total**  |
| Beginning balance  | W | 5553964 | 161415 | 526 | 5715905 |
| Total gains or losses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount recognized in profit or loss (\*2) |  | 10687 | - | 2665 | 13352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount recognized in other comprehensive income |  | - | (963) | - | (963) |
| Acquisition  |  | 1588194 | 1499 | 685 | 1590378 |
| Settlement  |  | (530345) | (60000) | (2911) | (593256) |
| Ending balance | W | 6622500 | 101951 | 965 | 6725416 |

---

(\*1) There were no changes during the current period in the valuation techniques used to measure the fair value of financial instruments classified as Level 3 in the fair value hierarchy.

(\*2) The amounts recognized in profit or loss during the current period in relation to movements in financial instruments classified as Level 3 in the fair value hierarchy, as well as the gains or losses related to assets and liabilities held as of the end of the reporting period are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Amount recognized in profit or loss** | &nbsp;&nbsp;**Amount recognized in profit or loss related to financial instruments held at the end of the reporting period**  |
| &nbsp;&nbsp;&nbsp;Gains or losses on financial assets at fair value through profit or loss | &nbsp;&nbsp;W | &nbsp;&nbsp;10687 | &nbsp;&nbsp;20596 |
| &nbsp;&nbsp;Gains or losses on derivatives |  | &nbsp;&nbsp;2665 | &nbsp;&nbsp;484 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;13352 | &nbsp;&nbsp;21080 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value (continued)

*iv) Details of financial instruments classified as fair value level 3 (continued)*

Changes in financial instruments classified as fair value level 3 for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **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 | 5574231 | 110362 | 4626 | 5689219 |
| Total gains or losses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amount recognized in profit or loss (\*2) |  | 89472 | - | (3626) | 85846 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount recognized in other <br>comprehensive income |  | - | 1153 | - | 1153 |
| Acquisition  |  | 605378 | 50000 | 2581 | 657959 |
| Settlement  |  | (593792) | (100) | (3055) | (596947) |
| Moving from level 3 (\*1) |  | (121325) | - | - | (121325) |
| Ending balance | W | 5553964 | 161415 | 526 | 5715905 |

---

(\*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:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Amount recognized in profit or loss** | &nbsp;&nbsp;**Amount recognized in profit or loss related to financial instruments held at the end of the reporting period**  |
| &nbsp;&nbsp;&nbsp;Gains or losses on financial assets at fair value through profit or loss | &nbsp;&nbsp;W | &nbsp;&nbsp;89472 | &nbsp;&nbsp;86463 |
| &nbsp;&nbsp;Gains or losses on derivatives |  | &nbsp;&nbsp;(3626) | &nbsp;&nbsp;(1570) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;85846 | &nbsp;&nbsp;84893 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value (continued)

*v) Valuation techniques and unobservable input variables for financial instruments classified as Level 3* 

Valuation techniques and significant unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2025 and 2024 are as below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Valuation techniques** |  | **Carrying amount** | **Significant unobservable inputs** | **Range** | **Effects of unobservable inputs on fair value** |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets <br>at fair value<br>through profit<br>or loss  |  |  |  |  |  |  |
| - Debt securities | Dividend discount model, <br>Hull-White, NAV | W | 6622500 | Discount rates, liquidation value | Discount rates 10.08% ~ 17.95%<br>liquidation value 0.00% | Fair value decreases when discount rate increases<br>Fair value increases when liquidation value increases |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities <br>at fair value<br>through other <br>comprehensive<br>income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Equity securities  | Hull-White, NAV |  | 101951 | The volatility of an interest rate | 0.46% ~ 0.67% | The greater the volatility, the greater the fluctuation in fair value |
| Derivative assets |  |  |  |  |  |  |
| - Equity related  | Monte-Carlo<br>Simulation,<br>Black-Scholes |  | 965 | The volatility of an underlying asset | 23.51% ~ 29.54% | The greater the volatility, the greater the fluctuation in fair value |
|  |  | W | 6725416 |  |  |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value (continued)

*v) Valuation techniques and unobservable input variables for financial instruments classified as Level 3 (continued)*

Valuation techniques and significant unobservable input variables used in fair value measurement of financial instruments classified as Level 3 as of December 31, 2025 and 2024 are as below: (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Valuation techniques** |  | **Carrying amount** | **Significant unobservable inputs** | **Range** | **Effects of unobservable inputs on fair value** |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets <br>at fair value<br>through profit<br>or loss  |  |  |  |  |  |  |
| - Debt securities | Dividend discount model, <br>Hull-White, NAV | W | 5553964 | Discount rates, liquidation value | Discount rates 6.32% ~ 9.48%<br>liquidation value 0.00% | Fair value decreases when discount rate increases<br>Fair value increases when liquidation value increases |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities <br>at fair value<br>through other <br>comprehensive<br>income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Equity securities  | Hull-White, NAV |  | 161415 | 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>Simulation,<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 | 5715905 |  |  |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(a) Financial instruments measured at fair value (continued)

*vi) Sensitivity analysis by variation of unobserved variables*

If other input variables remain constant for the fair value of a financial instrument measured at fair value as of December 31, 2025 and 2024, the effect of a significant but unobservable input variable fluctuating reasonably on the reporting date is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2025** |
|  |  | **Favorable change** | **Unfavorable change** |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) | W | 7060 | (6966) |
| Securities at fair value through other <br> comprehensive income (\*1) |  | 6829 | (5965) |
| Derivative assets (\*2) |  | 24 | (24) |
|  | W | 13913 | (12955) |

---

(\*1) The changes in fair value is calculated by increasing or decreasing the major unobservable input variables, liquidation value (-1% to 1%) and discount rate (-1% to 1%).

(\*2) The changes in fair value is calculated by increasing or decreasing the volatility (-1% to 1%), which is a major unobservable input variable.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2024** | **2024** |
|  |  | **Favorable change** | **Unfavorable change** |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) | W | 9486 | (9249) |
| Securities at fair value through other <br> comprehensive income (\*1) |  | 7132 | (6840) |
| Derivative assets (\*2) |  | 51 | (47) |
|  | W | 16669 | (16136) |

---

(\*1) The changes in fair value is calculated by increasing or decreasing the major unobservable input variables, liquidation value (-1% to 1%) and discount rate (-1% to 1%).

(\*2) The changes in fair value is calculated by increasing or decreasing the volatility (-1% to 1%), which is a major unobservable input variable.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost

*i) The fair value calculation method for major financial instruments measured at amortized cost is as follows:*

---

| | |
|:---|:---|
| **Classification** | **Fair value calculation method** |
| Cash and due from bank | The carrying amount and fair value of cash is the same, and the fair value of due from bank at amortized cost is valued at the present value of the expected cash inflows. |
| Loans | The fair value of the loans is assessed as the present value of the expected cash flows expected to be received discounted at a discount rate taking into account the borrower's credit risk. |
| Securities | The fair value of the securities at amortized cost is assessed as the present value of expected cash flows expected to be received. |
| Other financial assets/liabilities | The carrying amount is used as a proxy for fair value because it is difficult to reliably estimate expected cash flows. |
| Investment contract liabilities | The accumulated pension benefits of the retirement pension contract holders, as defined by the Insurance Business Act and Insurance Supervision Regulations, have been used as fair value proxies. |
| Debentures | The fair value of debentures is assessed by the present value of expected cash flows expected to be paid. |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost (continued)

*ii) The carrying amount and fair value of financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2025** |
|  |  | **Carrying amount**  | **Fair value**  |
| **Financial assets** |  |  |  |
| Cash and cash equivalents | W | 1604693 | 1604693 |
| Due from banks at amortized cost |  | 682162 | 659261 |
| Securities at amortized cost |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3509359 | 3049353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 440985 | 392786 |
|  |  | 3950344 | 3442139 |
| Loans at amortized cost |  |  |  |
| Retail loans |  | 534967 | 530810 |
| Corporate loans |  | 1720294 | 1727937 |
|  |  | 2255261 | 2258747 |
| Receivables at amortized cost |  | 1196976 | 1196976 |
|  | W | 9689436 | 9161816 |
| **Financial liabilities**  |  |  |  |
| Investment contract liabilities | W | 1541684 | 1541684 |
| Debentures  |  | 798392 | 788577 |
| Other financial liabilities |  | 665846 | 665846 |
|  | W | 3005922 | 2996107 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost (continued)

*ii) The carrying amount and fair value of financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows: (continued)* 

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2024** | **2024** |
|  |  | **Carrying amount**  | **Fair value**  |
| **Financial assets** |  |  |  |
| Cash and cash equivalents | W | 777204 | 777204 |
| Due from banks at amortized cost |  | 751667 | 754777 |
| Securities at amortized cost |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3489625 | 3190906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 442290 | 416001 |
|  |  | 3931915 | 3606907 |
| Loans at amortized cost |  |  |  |
| Retail loans |  | 697890 | 705859 |
| Corporate loans |  | 2111564 | 2073375 |
|  |  | 2809454 | 2779234 |
| Receivables at amortized cost |  | 1144628 | 1144628 |
|  | W | 9414868 | 9062750 |
| **Financial liabilities**  |  |  |  |
| Investment contract liabilities | W | 1332468 | 1332468 |
| Debentures  |  | 299487 | 306408 |
| Other financial liabilities |  | 461215 | 461215 |
|  | W | 2093170 | 2100091 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**8. <u>Fair value of financial instruments (continued)</u>**

(b) Financial instruments at amortized cost (continued)

*iii) The fair value of financial instruments that are not measured at their fair values in the statements of financial position but with their fair value disclosed, by valuation level as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Financial assets** |  |  |  |  |  |
| Due from banks at amortized cost | W | - | 659261 | - | 659261 |
| Securities at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3049353 | - | - | 3049353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | - | 392786 | - | 392786 |
|  |  | 3049353 | 392786 | - | 3442139 |
| Loans at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail loans |  | - | - | 530810 | 530810 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate loans |  | - | - | 1727937 | 1727937 |
|  |  | - | - | 2258747 | 2258747 |
|  | W | 3049353 | 1052047 | 2258747 | 6360147 |
| **Financial liabilities**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debentures  | W | - | - | 788577 | 788577 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Financial assets** |  |  |  |  |  |
| Due from banks at amortized cost | W | - | 754777 | - | 754777 |
| Securities at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 3190906 | - | - | 3190906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | - | 416001 | - | 416001 |
|  |  | 3190906 | 416001 | - | 3606907 |
| Loans at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail loans |  | - | - | 705859 | 705859 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate loans |  | - | - | 2073375 | 2073375 |
|  |  | - | - | 2779234 | 2779234 |
|  | W | 3190906 | 1170778 | 2779234 | 7140918 |
| **Financial liabilities**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debentures  | W | - | - | 306408 | 306408 |

---

The Company does not disclose the fair value hierarchy in relation to items that disclose the carrying amount at fair value, considering the carrying amount as a reasonable approximation of the fair value.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments</u>**

(a) Carrying amount of each financial instrument

*i) The carrying amount of each financial assets by classification category as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financial assets at fair**<br>**value through profit or loss (\*)** | **Financial assets at fair value through other comprehensive income** | **Financial assets at amortized cost** | **Hedging derivatives** | **Total** |
| Cash and due from <br> banks at amortized cost | W | - | - | 1460260 | - | 1460260 |
| Financial assets at fair <br> value through profit or loss |  | 7150255 | - | - | - | 7150255 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 34884286 | - | - | &nbsp;&nbsp;&nbsp;34884286 |
| Securities at amortized cost |  | - | - | 3950344 | - | 3950344 |
| Loans at amortized cost  |  | - | - | 2024201 | - | 2024201 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | - | - | 1084240 | - | 1084240 |
| Derivative assets |  | 965 | - | - | 32852 | 33817 |
|  |  | 7151220 | 34884286 | 8519045 | 32852 | 50587403 |
| **< Variable>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 537497 | - | 537497 |
| Financial assets at fair <br> value through profit or loss |  | 5673090 | - | - | - | 5673090 |
| Loans at amortized cost  |  | - | - | 41300 | - | 41300 |
| Receivables at amortized cost |  | - | - | 107048 | - | 107048 |
| Derivative assets |  | 657 | - | - | - | 657 |
|  |  | 5673747 | - | 685845 | - | 6359592 |
| **< Retirement>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 289098 | - | 289098 |
| Financial assets at fair <br> value through profit or loss |  | 441931 | - | - | - | 441931 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 404172 | - | - | 404172 |
| Loans at amortized cost  |  | - | - | 189760 | - | 189760 |
| Receivables at amortized cost |  | - | - | 5688 | - | 5688 |
|  |  | 441931 | 404172 | 484546 | - | 1330649 |
|  | W | 13266898 | 35288458 | 9689436 | 32852 | 58277644 |

---

(\*) Included derivatives held for trading.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(a) Carrying amount of each financial instrument (continued)

*i) The carrying amount of each financial assets by classification category as of December 31, 2025 and 2024 are as follows: (continued)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Financial assets at fair**<br>**value through profit or loss (\*)** | **Financial assets at fair value through other comprehensive income** | **Financial assets at amortized cost** | **Hedging derivatives** | **Total** |
| Cash and due from <br> banks at amortized cost | W | - | - | 1064175 | - | 1064175 |
| Financial assets at fair <br> value through profit or loss |  | 6372990 | - | - | - | 6372990 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 37001000 | - | - | &nbsp;&nbsp;&nbsp;37001000 |
| Securities at amortized cost |  | - | - | 3931915 | - | 3931915 |
| Loans at amortized cost  |  | - | - | 2445238 | - | 2445238 |
| &nbsp;&nbsp;&nbsp;Receivables at amortized cost |  | - | - | 1023409 | - | 1023409 |
| Derivative assets |  | 526 | - | - | 116899 | 117425 |
|  |  | 6373516 | 37001000 | 8464737 | 116899 | 51956152 |
| **< Variable>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 412404 | - | 412404 |
| Financial assets at fair <br> value through profit or loss |  | 4942771 | - | - | - | 4942771 |
| Loans at amortized cost  |  | - | - | 40900 | - | 40900 |
| Receivables at amortized cost |  | - | - | 114800 | - | 114800 |
| Derivative assets |  | 97 | - | - | - | 97 |
|  |  | 4942868 | - | 568104 | - | 5510972 |
| **< Retirement>** |  |  |  |  |  |  |
| Cash and due from <br> banks at amortized cost |  | - | - | 52292 | - | 52292 |
| Financial assets at fair <br> value through profit or loss |  | 264222 | - | - | - | 264222 |
| Securities at fair <br> value through other <br> comprehensive income |  | - | 646435 | - | - | 646435 |
| Loans at amortized cost  |  | - | - | 323316 | - | 323316 |
| Receivables at amortized cost |  | - | - | 6419 | - | 6419 |
|  |  | 264222 | 646435 | 382027 | - | 1292684 |
|  | W | 11580606 | 37647435 | 9414868 | 116899 | 58759808 |

---

(\*) Included derivatives held for trading.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(a) Carrying amount of each financial instrument (continued)

*ii) The carrying amount of each financial liabilities by classification category as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Financial liabilities at fair value through profit or loss** | **Financial liabilities at amortized cost** | **Hedging derivatives** | **Total** |
| Derivative liabilities | W | - | - | 865574 | 865574 |
| Debentures |  | - | 798392 | - | 798392 |
| Other financial liabilities |  | - | 644300 | - | 644300 |
| &nbsp;&nbsp;&nbsp;Lease liabilities |  | - | 66338 | - | 66338 |
|  |  | - | 1509030 | 865574 | 2374604 |
| **< Variable>**  |  |  |  |  |  |
| Derivative liabilities |  | 29 | - | - | 29 |
| Other financial liabilities |  | - | 21329 | - | 21329 |
|  |  | 29 | 21329 | - | 21358 |
| **< Retirement>**  |  |  |  |  |  |
| Investment contract liabilities |  | - | 1541684 | - | 1541684 |
| Derivative liabilities |  | - | - | 5219 | 5219 |
| Other financial liabilities |  | - | 217 | - | 217 |
|  |  | - | 1541901 | 5219 | 1547120 |
|  | W | 29 | 3072260 | 870793 | 3943082 |

---

(\*) Included derivatives held for trading.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Financial liabilities at fair value through profit or loss** | **Financial liabilities at amortized cost** | **Hedging derivatives** | **Total** |
| Derivative liabilities | W | - | - | 496009 | 496009 |
| Debentures |  | - | 299487 | - | 299487 |
| Other financial liabilities |  | - | 448524 | - | 448524 |
| &nbsp;&nbsp;&nbsp;Lease liabilities |  | - | 77399 | - | 77399 |
|  |  | - | 825410 | 496009 | 1321419 |
| **< Variable>**  |  |  |  |  |  |
| Derivative liabilities |  | 245 | - | - | 245 |
| Other financial liabilities |  | - | 12544 | - | 12544 |
|  |  | 245 | 12544 | - | 12789 |
| **< Retirement>**  |  |  |  |  |  |
| Investment contract liabilities |  | - | 1332468 | - | 1332468 |
| Derivative liabilities |  | - | - | 5338 | 5338 |
| Other financial liabilities |  | - | 147 | - | 147 |
|  |  | - | 1332615 | 5338 | 1337953 |
|  | W | 245 | 2170569 | 501347 | 2672161 |

---

(\*) Included derivatives held for trading.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(b) Net profit or loss classification by classification of financial instruments

*Net profit or loss on financial instruments for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Net Interest <br>income or expense** | **Dividend <br>income** | **Other gains and losses** | **Gain or loss <br>on valuation** | **Gain or loss <br>on disposal** | **Total** |
| Cash and due from <br> banks at amortized cost | W | 43950 | - | 1466 | - | 10993 | 56409 |
| Financial assets at fair <br> value through profit or loss |  | 23435 | - | 202522 | 49448 | 16521 | 291926 |
| Securities at fair <br> value through other <br> comprehensive income |  | 1089775 | 5556 | 151092 | - | 16115 | 1262538 |
| Securities at amortized cost |  | 116982 | - | 2 | - | - | 116984 |
| Loans at amortized cost  |  | 103655 | - | (7646) | - | 3437 | 99446 |
| Receivables at amortized cost |  | 3657 | - | 430 | - | - | 4087 |
| Derivatives held for trading |  | - | - | (59313) | - | - | (59313) |
| Derivatives held for hedging |  | - | - | (187207) | - | - | (187207) |
| Debentures |  | (25686) | - | - | - | - | (25686) |
| Other financial liabilities |  | (29) | - | - | - | - | (29) |
| Lease liabilities |  | (1998) | - | - | - | - | (1998) |
|  |  | 1353741 | 5556 | 101346 | 49448 | 47066 | 1557157 |
| **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  |
| Cash and due from <br> banks at amortized cost |  | 10238 | - | (272) | - | - | 9966 |
| Financial assets at fair <br> value through profit or loss |  | 49948 | 31866 | 5378 | 1024241 | 325143 | 1436576 |
| Loans at amortized cost  |  | 830 | - | - | - | - | 830 |
| Receivables at amortized cost |  | 18 | - | (625) | - | - | (607) |
| Derivatives held for trading |  | - | - | (13605) | - | - | (13605) |
|  |  | 61034 | 31866 | (9124) | 1024241 | 325143 | 1433160 |
| **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  |
| Cash and due from <br> banks at amortized cost |  | 806 | - | (4) | - | - | 802 |
| Financial assets at fair <br> value through profit or loss |  | 3 | 152 | 3791 | 1351 | 6617 | 11914 |
| Securities at fair <br> value through other <br> comprehensive income |  | 14049 | 195 | (524) | - | 1275 | 14995 |
| Loans at amortized cost  |  | 7202 | - | 2388 | - | - | 9590 |
| Receivables at amortized cost |  | - | - | 2 | - | - | 2 |
| Derivatives held for trading |  | - | - | 10 | - | - | 10 |
| Derivatives held for hedging |  | - | - | 697 | - | - | 697 |
| Investment contract liabilities |  | (39135) | - | - | - | - | (39135) |
|  |  | (17075) | 347 | 6360 | 1351 | 7892 | (1125) |
|  | W | 1397700 | 37769 | 98582 | 1075040 | 380101 | 2989192 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(b) Net profit or loss classification by classification of financial instruments (continued)

*Net profit or losses by classification of financial instruments for the years ended December 31, 2025 and 2024 are as follows: (continued)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **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** |
| Cash and due from <br> banks at amortized cost | W | 42177 | - | 742 | - | - | 42919 |
| Financial assets at fair <br> value through profit or loss |  | 21249 | - | 323867 | 21506 | 6109 | 372731 |
| Securities at fair <br> value through other <br> comprehensive income |  | 1068860 | 4121 | 410621 | - | 3399 | 1487001 |
| Securities at amortized cost |  | 128985 | - | 23 | - | 21719 | 150727 |
| Loans at amortized cost  |  | 129355 | - | (8210) | - | (323) | 120822 |
| Receivables at amortized cost |  | 3391 | - | 21608 | - | - | 24999 |
| Derivatives held for trading |  | - | - | 8891 | - | - | 8891 |
| Derivatives held for hedging |  | - | - | (506397) | - | - | (506397) |
| Debentures |  | (15761) | - | - | - | - | (15761) |
| Other financial liabilities |  | (36) | - | - | - | - | (36) |
| Lease liabilities |  | (2354) | - | - | - | - | (2354) |
|  |  | 1375866 | 4121 | 251145 | 21506 | 30904 | 1683542 |
| **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  | **< Variable>**  |
| Cash and due from <br> banks at amortized cost |  | 10788 | - | 3857 | - | - | 14645 |
| Financial assets at fair <br> value through profit or loss |  | 66041 | 28001 | 119874 | 10159 | 82282 | 306357 |
| Loans at amortized cost  |  | 1672 | - | - | - | - | 1672 |
| Receivables at amortized cost |  | 19 | - | 1505 | - | - | 1524 |
| Derivatives held for trading |  | - | - | (119124) | - | - | (119124) |
|  |  | 78520 | 28001 | 6112 | 10159 | 82282 | 205074 |
| **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< Retirement>**  | **< 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 | 5614 | 2773 | 2187 | 10747 |
| Securities at fair <br> value through other <br> comprehensive income |  | 24542 | 278 | 5908 | - | (20138) | 10590 |
| Loans at amortized cost  |  | 14301 | - | 2401 | - | - | 16702 |
| Receivables at amortized cost |  | - | - | 166 | - | - | 166 |
| Derivatives held for trading |  | - | - | (200) | - | - | (200) |
| Derivatives held for hedging |  | - | - | (5730) | - | - | (5730) |
| Investment contract liabilities |  | (59991) | - | - | - | - | (59991) |
|  |  | (20269) | 388 | 8166 | 2773 | (17951) | (26893) |
|  | W | 1434117 | 32510 | 265423 | 34438 | 95235 | 1861723 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(c) Financial instrument offsetting

Details of financial instruments subject to collective offsetting agreements or similar agreements as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Total financial instruments recognized** | **Total amount of financial instruments recognized that were offset** | **Net amount of financial instruments presented in the statement of financial position** | **Related amounts not offset in the statements of**<br>**financial position** | **Related amounts not offset in the statements of**<br>**financial position** | **Net amount** |
|  |  | **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** | <br>**Financial instruments**  | **Cash collateral received** | **Net amount** |
| **Financial assets**  |  |  |  |  |  |  |  |
| Derivative assets  | W | 33817 | - | 33817 | 33817 | - | - |
| &nbsp;&nbsp;Purchase under repurchase agreement |  | 41300 | - | 41300 | 41300 | - | - |
| &nbsp;&nbsp;Foreign currency-denominated securities lending |  | 1265304 | - | 1265304 | 1092398 | - | 172906 |
|  | W | 1340421 | - | 1340421 | 1167515 | - | 172906 |
| **Financial liabilities**  |  |  |  |  |  |  |  |
| Derivative liabilities  | W | 870793 | - | 870793 | 819831 | - | 50962 |

---

(\*) Securities lending transactions represent transactions in which the Company directly lends securities and receives collateral. The amounts exclude W9,992,630 million relating to securities lent through an intermediary, the Korea Securities Finance Corporation, for which pledges were established in the name of the intermediary.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **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>**financial position** | **Related amounts not offset in the statements of**<br>**financial position** | **Net amount** |
|  |  | **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** | <br>**Financial instruments**  | **Cash collateral received** | **Net amount** |
| **Financial assets**  |  |  |  |  |  |  |  |
| Derivative assets  | W | 117425 | - | 117425 | 108915 | - | 8510 |
| &nbsp;&nbsp;Purchase under repurchase agreement |  | 40900 | - | 40900 | 40900 | - | - |
| &nbsp;&nbsp;Foreign currency-denominated securities lending |  | 1260151 | - | 1260151 | 1197807 | - | 62344 |
|  | W | 1418476 | - | 1418476 | 1347622 | - | 70854 |
| **Financial liabilities**  |  |  |  |  |  |  |  |
| Derivative liabilities  | W | 501347 | - | 501347 | 494031 | - | 7316 |

---

(\*) Securities lending transactions represent transactions in which the Company directly lends securities and receives collateral. The amounts exclude W8,211,309 million relating to securities lent through an intermediary, the Korea Securities Finance Corporation, for which pledges were established in the name of the intermediary.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**9. <u>Classification category of financial instruments (continued)</u>**

(d) Transfers transaction of financial assets

*i) Financial instruments which do not meet the derecognition criteria*

① Securities Lending Transactions

If the Company lends securities owned by itself, the ownership of the securities is transferred, but the Company must return the securities at the end of the loan period, so the Company continues to recognize the entire securities as it holds most of the risks and rewards of the securities. The carrying amount of securities lending as of December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Classification** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Financial assets at fair value  | &nbsp;&nbsp;Government bonds | &nbsp;&nbsp;W | &nbsp;&nbsp;9371 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;through profit or loss | &nbsp;&nbsp;Stocks |  | &nbsp;&nbsp;35757 | &nbsp;&nbsp;15826 |
|  |  |  | &nbsp;&nbsp;45128 | &nbsp;&nbsp;15826 |
| &nbsp;&nbsp;&nbsp;Securities at fair value through  | &nbsp;&nbsp;Government bonds |  | &nbsp;&nbsp;7622098 | &nbsp;&nbsp;6481140 |
| &nbsp;&nbsp;&nbsp; other comprehensive income | &nbsp;&nbsp;Foreign currency bonds |  | &nbsp;&nbsp;1265304 | &nbsp;&nbsp;1260151 |
|  |  |  | &nbsp;&nbsp;8887402 | &nbsp;&nbsp;7741291 |
| &nbsp;&nbsp;Securities at amortized cost | &nbsp;&nbsp;Government bonds |  | &nbsp;&nbsp;2370532 | &nbsp;&nbsp;1730170 |
|  |  | &nbsp;&nbsp;W | &nbsp;&nbsp;11303062 | &nbsp;&nbsp;9487287 |

---

*ii) Financial instruments that meet the derecognition criteria but are continuously involved.*

As of December 31, 2025 and 2024, there are no financial instruments which meet the derecognition criteria, but the Company is continuously involved.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**10. <u>Material accounting estimates and judgments</u>**

In preparing the separate financial statements, the Company makes judgments about assumptions and assumptions about the future. These estimates and judgments are continually evaluated, taking into account other factors such as past experiences and future events that are reasonably predictable from the current situation. The accounting estimates calculated in this way may not match the actual results. The judgments on accounting estimates and assumptions that include significant risks that can materially change the carrying amounts of assets and liabilities as of the reporting date are as follows:

(a) Fair value of financial instruments

The fair value of financial instruments (e.g., over-the-counter derivatives) that are not traded in an active trading market is determined using valuation techniques. As of the end of the reporting period, the Company makes judgments regarding the selection and assumptions of various valuation techniques based on major market conditions. When the valuation model is used to determine the fair value of various financial instruments that are not traded in the normal trading market, the Company uses a variety of methods from the general valuation model to the developed self-evaluation model, in which various input variables and assumptions are applied.

(b) Allowance for credit losses and provision for unused commitments

The Company assesses the impairment of the loan receivables and establishes provisions for bad debts and for unused commitment limits. The provision for such credit losses is determined by the assumptions and variables of the model used to estimate expected cash flows for each borrower to estimate the individual bad debt allowance and the collective bad debt allowance and unused commitment allowance.

(c) Impairment of non-financial assets

The Company evaluates the existence of signs of impairment for all non-financial assets at the end of each reporting period. However, for intangible assets with indefinite useful life, the impairment test is conducted every year by comparing the recoverable amount and the carrying amount regardless of signs suggesting impairment. Other non-financial assets are being tested for impairment when there is an indication that the carrying amount will not be recoverable. To calculate the value-in-use, the management chooses an appropriate discount rate to estimate the expected future cash flows from the asset or cash-generating unit and calculate the present value of the expected future cash flows.

(d) Defined benefit obligation

The present value of defined benefit obligations may vary depending on various factors determined by actuarial methods that use many assumptions. The assumptions used to determine the net cost (benefit) of the pension include the discount rate, and changes in these assumptions will affect the carrying amount of the defined benefit obligation.

The Company determines the appropriate discount rate at the end of each year. These discount rates represent the interest rates that should be used to determine the present value of estimated future cash outflows expected to occur when the defined benefit obligation is settled. The Company determines the appropriate discount rate by considering the interest rate of high-quality corporate bonds that are denominated in the currency in which the pension will be paid and have maturity similar to that of the related defined benefit obligation.

Other major assumptions related to defined benefit obligations are based on some current market conditions.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**10. <u>Material accounting estimates and judgments (continued)</u>**

(e) Insurance contract liabilities and reinsurance contract assets (liabilities)

The Company calculates the present value of the future cash flows of the remaining benefit liabilities and incurred claims liabilities for measurement purposes. This involves estimating the neutral present value of future cash flows, considering the time value of money, adjusting for financial risks associated with future cash flows, and making risk adjustments for non-financial risks. The measurement of the present value of these cash flows is determined by estimating relevant market variables, assessing uncertainties regarding the amounts and timing of future cash flows, considering actuarial and economic assumptions, and other risks.

The number of coverage units in the group of insurance contracts is determined by considering the amount of benefit provided by contracts within the group the duration of expected coverage, the frequency and recurrence of the coverage risk for all coverage units allocated to the current period.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**11. <u>Cash and due from banks at amortized cost</u>**

(a) Cash and due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Cash and cash equivalents**: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings account | W | 97592 | 116045 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current account |  | 55 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 1507046 | 661102 |
|  |  | 1604693 | 777204 |
| **Due from banks at amortized cost:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposit |  | 430000 | 450000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Installment savings |  | 168250 | 228250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other deposits |  | 84266 | 74305 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Credit loss allowance) |  | (354) | (888) |
|  |  | 682162 | 751667 |
|  | W | 2286855 | 1528871 |

---

(b) Restricted due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2024** | **Restrictions**<br>**on use** |
| Due from banks denominated in won | W | 70,811 | 59,566 | Deposits for opening current accounts, deposits for futures transactions, etc. |
| Due from banks denominated in foreign currency |  | 13,455 | 14,739 | Deposits for opening current accounts, deposits for futures transactions, etc. |
|  | W | 84,266 | 74,305 |  |

---

(\*) Due from banks at amortized cost is the amount before deducting the credit loss allowance.

(c) The changes in credit loss allowance for due from banks at amortized cost for the years ended December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Designated for measurement of**<br>**12-month expected credit loss** | **Designated for measurement of**<br>**12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance of credit loss allowance | W | 888 | 423 |
| Provision for (reverse of) credit loss allowance |  | (534) | 465 |
| Ending balance of credit loss allowance | W | 354 | 888 |

---

(d) Gains or losses arising from the derecognition of due from banks at amortized cost for the year ended December 31, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Carrying amount (\*)** | **Gains or losses** |
| Installment savings | W | 122550 | 17064 |
| Time deposits |  | 33186 | (6071) |

---

(\*) The carrying amount includes accrued interest of W65,736 million.

The installment savings and the time deposits were early redeemed and derecognized from financial as a result of the issuer's early termination and the closure of the related business segment, respectively during the year ended December 31, 2025.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**12. <u>Financial assets at fair value through profit or loss</u>**

(a) Financial assets at fair value through profit or loss as of December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Due from banks:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks in foreign currency  | W | 40862 | 35450 |
| **Securities**: |  |  |  |
| &nbsp;&nbsp;**Debt securities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds  |  | 1099101 | 1395210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 83762 | 67325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institutions bonds |  | 177496 | 204029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds  |  | 108745 | 146417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Puttable stocks |  | 53233 | 56035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Puttable equity instruments |  | 259238 | 245761 |
| &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates |  | 7654557 | 6399236 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities |  | 139540 | 202256 |
| &nbsp;&nbsp;&nbsp;&nbsp;Puttable financial instruments in foreign currency |  | 2408 | 3035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates in foreign currency  |  | 1571654 | 1422594 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities in foreign currency  |  | 165600 | 214102 |
|  |  | 11315334 | 10356000 |
| &nbsp;&nbsp;**Equity securities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks |  | 1908466 | 1187865 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign securities |  | 614 | 668 |
|  |  | 1909080 | 1188533 |
|  |  | 13224414 | 11544533 |
|  | W | 13265276 | 11579983 |

---

(b) Gains and losses on financial assets at fair value through profit or loss

Gains and losses on financial assets at fair value through profit or loss for the years ended December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;**Gain on financial assets measured at fair value through profit or loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation  | W | 1277560 | 483315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal  |  | 414204 | 270828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 239682 | 261660 |
|  |  | 1931446 | 1015803 |
| &nbsp;&nbsp;**Loss on financial assets measured at fair value through profit or loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation  |  | 202519 | 448876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal  |  | 65924 | 180250 |
|  |  | 268443 | 629126 |
| Net gain on financial assets at fair value through profit or loss | W | 1663003 | 386677 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**12. <u>Financial assets at fair value through profit or loss (continued)</u>**

(c) The beneficiary certificates that have significant influence among the beneficiary certificates held by the Company, which are subject to consolidation, as of December 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Investee** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
| &nbsp;&nbsp;**Investee** | &nbsp;&nbsp;**Location** | &nbsp;&nbsp;**Reporting month of the financial statements** | &nbsp;&nbsp;**Ownership** |  | &nbsp;&nbsp;**Carrying**<br>**amount**  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mirae Asset Maps Global Infra Private Special Asset Trust 2 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;95.89% | &nbsp;&nbsp;W | &nbsp;&nbsp;4942 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit Fund 3 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.90% |  | &nbsp;&nbsp;171734 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.58% |  | &nbsp;&nbsp;21805 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.80% |  | &nbsp;&nbsp;67996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.88% |  | &nbsp;&nbsp;30473 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.40% |  | &nbsp;&nbsp;50616 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.53% |  | &nbsp;&nbsp;58421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;93.02% |  | &nbsp;&nbsp;102431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;93.02% |  | &nbsp;&nbsp;83459 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;93.02% |  | &nbsp;&nbsp;210312 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.75% |  | &nbsp;&nbsp;39360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pinestreet BDC Global Corporate FoF 38 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.83% |  | &nbsp;&nbsp;280923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pinestreet IG Global Corporate FoF 39 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.90% |  | &nbsp;&nbsp;96404 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan BDC OClC Private investment Trust No.1 (H) | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.96% |  | &nbsp;&nbsp;279740 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan SLAMS TPA Private Fund | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.70% |  | &nbsp;&nbsp;106963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Apollo SFG Private Investment Trust No.1(USD) | &nbsp;&nbsp;Korea | &nbsp;&nbsp;October | &nbsp;&nbsp;99.91% |  | &nbsp;&nbsp;112248 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan BDC OCIC Private Investment Trust No.2(H) | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.77% |  | &nbsp;&nbsp;48682 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Apollo ADS Private Investment Trust No.1(H) | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.77% |  | &nbsp;&nbsp;48683 |
|  |  |  |  | &nbsp;&nbsp;W  | &nbsp;&nbsp;1815192 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**12. <u>Financial assets at fair value through profit or loss (continued)</u>**

(c) The beneficiary certificates that have significant influence among the beneficiary certificates held by the Company, which are subject to consolidation, as of December 2025 and 2024 are as follows: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Investee** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Investee** | &nbsp;&nbsp;**Location** | &nbsp;&nbsp;**Reporting month of the financial statements** | &nbsp;&nbsp;**Ownership** |  | &nbsp;&nbsp;**Carrying**<br>**amount**  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mirae Asset Maps Global Infra Private Special Asset Trust 2 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;95.89% | &nbsp;&nbsp;W | &nbsp;&nbsp;4726 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit Fund 3 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.90% |  | &nbsp;&nbsp;177355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.58% |  | &nbsp;&nbsp;21965 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.80% |  | &nbsp;&nbsp;61242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.88% |  | &nbsp;&nbsp;63458 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.40% |  | &nbsp;&nbsp;66061 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.53% |  | &nbsp;&nbsp;44735 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;93.02% |  | &nbsp;&nbsp;73184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;93.02% |  | &nbsp;&nbsp;63305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;93.02% |  | &nbsp;&nbsp;159384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) | &nbsp;&nbsp;Korea | &nbsp;&nbsp;December | &nbsp;&nbsp;99.75% |  | &nbsp;&nbsp;30252 |
|  |  |  |  | &nbsp;&nbsp;W  | &nbsp;&nbsp;765667 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**13. <u>Securities at fair value through other comprehensive income</u>**

(a) Securities at fair value through other comprehensive income as of December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Debt securities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | W | 21835014 | 22596093 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special purpose bonds |  | 5982047 | 7143921 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institution bonds |  | 832580 | 1189289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds |  | 2078925 | 2868627 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in foreign currency |  | 4457941 | 3688090 |
|  |  | 35186507 | 37486020 |
| **Equity securities (\*):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks |  | 1522 | 2504 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities |  | 100429 | 158911 |
|  |  | 101951 | 161415 |
|  | W | 35288458 | 37647435 |

---

(\*) The Company elected to designate as equity securities measured at fair value through other comprehensive income for reasons such as retention as required by its policy.

(b) Changes in total carrying amount

The changes in total carrying amount of debt securities at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance (\*1) | W | 37486020 | 35235213 |
| Acquisition  |  | 4252714 | 4578354 |
| Disposal and redemption |  | (5022696) | (4069569) |
| Others (\*2) |  | (1529531) | 1742022 |
| Ending balance (\*1) | W | 35186507 | 37486020 |

---

(\*1) The total carrying amount subject to credit loss allowance is the amortized cost of the debt securities.

(\*2) Included the effects of valuation, changes in foreign exchange rates, etc.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**13. <u>Securities at fair value through other comprehensive income (continued)</u>**

(c) Changes in credit loss allowance

Changes in credit loss allowance for debt securities at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance (\*) | W | 7565 | 8790 |
| Reversal of credit loss allowance |  | (1268) | (1225) |
| Ending balance (\*) | W | 6297 | 7565 |

---

(\*) The above provisions for credit loss were recognized in gains (losses) on valuation of securities at fair value through other comprehensive income and were not adjusted to the carrying amount of the corresponding assets in the separate statements of financial position.

(d) Equity instruments designated at fair value through other comprehensive income were disposed during the years ending December 31, 2025 and 2024. At the time of disposals, the fair value and accumulated valuation gains or losses are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2025** |
|  |  | **Fair value at disposal date** | **Accumulated gains/losses at disposal date** |
| Other securities | W | 60,000 | - |

---

(\*) The disposal was made as a result of the issuer's exercise of the call option on the hybrid bonds.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2024** | **2024** |
|  |  | **Fair value at disposal date** | **Accumulated gains/losses at disposal date** |
| Stocks | W | 100 | (41) |

---

(\*) The disposal was made due to a change in holding purpose, and the accumulated valuation gains or losses were transferred to unappropriated retained earnings.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**13. <u>Securities at fair value through other comprehensive income (continued)</u>**

(e) The dividend income recognized related to equity instruments at fair value through other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income recognized from assets held at the end of <br>the reporting period |  |  |  |
| Other Securities | W | 4,580 | 4,399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income recognized from assets disposed of <br>during the reporting period |  |  |  |
| Other Securities |  | 1,171 | - |
|  | W | 5,751 | 4,399 |

---

(f) Gains and losses on disposal of securities at fair value through other comprehensive income recognized for the years ended December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Gain on disposal of securities at fair value through other <br> comprehensive income | W | 81508 | 79735 |
| Loss on disposal of securities at fair value through other <br> comprehensive income |  | (64118) | (96475) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**14. <u>Securities at amortized cost</u>**

(a) Securities at amortized cost as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Government bonds  | W | 3509359 | 3489625 |
| Special purpose bonds |  | 441168 | 442475 |
| (Credit loss allowance) |  | (183) | (185) |
|  | W | 3950344 | 3931915 |

---

(b) Changes in total carrying amount

Changes in total carrying amounts of securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance  | W | 3932100 | 4348231 |
| Disposal |  | - | (427907) |
| Others (\*) |  | 18427 | 11776 |
| Ending balance  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3950527 | 3932100 |

---

(\*) The amounts include amortization recognized using the effective interest method.

(c) Changes in credit loss allowance

Changes in credit loss allowance for securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **12-month expected credit loss** | **12-month expected credit loss** |
|  |  | **2025** | **2024** |
| Beginning balance  | W | 185 | 208 |
| Reversal of credit loss allowance |  | (2) | (23) |
| Ending balance  | W | 183 | 185 |

---

(d) Gains or losses on derecognition

Gains or losses on derecognition of securities at amortized cost for the year ended December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Par value** | **Book value** | **Profits or losses resulting from derecognition (\*)** |
| Government bonds | W | 370,000 | 427,906 | 21,719 |

---

(\*) W 42,081 million of accumulated other comprehensive income on bond forwards was reclassified as profit for the year and included in the profit or loss amount due to disposal upon the derecognition of securities at amortized cost.

Certain securities at amortized cost were disposed during the year ended December 31, 2024 to secure additional asset duration for the purpose of comprehensive assets and liabilities management in response to changes in interest rates.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**15. <u>Investments in subsidiaries and associates</u>**

(a) Investments in associates as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investees** | **Location** | **Reporting month of the financial statements** | **Ownership (%)** | **Ownership (%)** |  | **Carrying amount** | **Carrying amount** |
| **Investees** | **Location** | **Reporting month of the financial statements** | **2025** | **2024** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;**Subsidiaries** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;100.00 | &nbsp;&nbsp;&nbsp;100.00 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;124000 | &nbsp;&nbsp;&nbsp;109000 |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. | &nbsp;&nbsp;&nbsp;Vietnam | December | &nbsp;&nbsp;&nbsp;100.00 | &nbsp;&nbsp;&nbsp;100.00 |  | &nbsp;&nbsp;&nbsp;114144 | &nbsp;&nbsp;&nbsp;114144 |
| &nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;100.00 | &nbsp;&nbsp;&nbsp;100.00 |  | &nbsp;&nbsp;&nbsp;100437 | &nbsp;&nbsp;&nbsp;50437 |
| &nbsp;&nbsp;&nbsp;**Associates** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;iPIXEL Co., Ltd. (\*) | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;10.44 | &nbsp;&nbsp;&nbsp;10.51 |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Findvalue JD Fund No.1 | &nbsp;&nbsp;&nbsp;Korea | December | &nbsp;&nbsp;&nbsp;27.03 | &nbsp;&nbsp;&nbsp;27.03 |  | &nbsp;&nbsp;&nbsp;1000 | &nbsp;&nbsp;&nbsp;1000 |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;339581 | &nbsp;&nbsp;&nbsp;274581 |

---

(\*) Although the ownership percentages are less than 20%, the Company applies the equity method accounting as it participates in policy-making processes and therefore can exercise significant influence on the investee.

Beneficiary certificates, which are subsidiaries, are classified as financial assets at fair value through profit or loss in accordance with K-IFRS 1109 and are separately presented in the Note '12. *Financial assets at fair value through profit or loss*'.

(b) Changes in investments in subsidiaries and associates for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
| **Investees (\*)** |  | **Beginning balance** | **Acquisition** | **Disposal** | **Impairment**  | **Ending balance** |
| &nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | W | 109000 | 15000 | - | - | 124000 |
| &nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. |  | 114144 | - | - | - | 114144 |
| &nbsp;&nbsp;Shinhan LifeCare Co., Ltd. |  | 50437 | 50000 | - | - | 100437 |
| Findvalue JD Fund No.1 |  | 1000 | - | - | - | 1000 |
|  | W | 274581 | 65000 | - | - | 339581 |

---

(\*) The Company accounts for investments in subsidiaries and associates at acquisition cost.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
| **Investees (\*)** |  | **Beginning balance** | **Acquisition** | **Disposal** | **Impairment**  | **Ending balance** |
| &nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | W | 109000 | - | - | - | 109000 |
| &nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. |  | 114144 | - | - | - | 114144 |
| &nbsp;&nbsp;Shinhan LifeCare Co., Ltd. |  | 50437 | - | - | - | 50437 |
| Findvalue JD Fund No.1 |  | 1000 | - | - | - | 1000 |
|  | W | 274581 | - | - | - | 274581 |

---

(\*) The Company accounts for investments in subsidiaries and associates at acquisition cost.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost</u>**

(a) Loans and receivables at amortized cost as of December 31, 2025 and 2024 are as follows:

*i) Loans at amortized cost*

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Mortgage loans | &nbsp;&nbsp;W | &nbsp;&nbsp;632526 | &nbsp;&nbsp;679799 |
| &nbsp;&nbsp;Credit loans  |  | &nbsp;&nbsp;1322447 | &nbsp;&nbsp;1754050 |
| &nbsp;&nbsp;&nbsp;Loans secured by third party guarantee |  | &nbsp;&nbsp;270361 | &nbsp;&nbsp;349487 |
| &nbsp;&nbsp;&nbsp;Other loans  |  | &nbsp;&nbsp;61300 | &nbsp;&nbsp;60900 |
|  |  | &nbsp;&nbsp;2286634 | &nbsp;&nbsp;2844236 |
| &nbsp;&nbsp;&nbsp;Deferred loan origination cost (fees) |  | &nbsp;&nbsp;(3468) | &nbsp;&nbsp;783 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Credit loss allowance) |  | &nbsp;&nbsp;(27905) | &nbsp;&nbsp;(35565) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;2255261 | &nbsp;&nbsp;2809454 |

---

*ii) Receivables at amortized cost*

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Receivables, etc. | &nbsp;&nbsp;W | &nbsp;&nbsp;75694 | &nbsp;&nbsp;73752 |
| &nbsp;&nbsp;Deposits  |  | &nbsp;&nbsp;54350 | &nbsp;&nbsp;48887 |
| &nbsp;&nbsp;&nbsp;Accrued income  |  | &nbsp;&nbsp;1093479 | &nbsp;&nbsp;1057137 |
|  |  | &nbsp;&nbsp;1223523 | &nbsp;&nbsp;1179776 |
| &nbsp;&nbsp;&nbsp;(Present value discounts) |  | &nbsp;&nbsp;(2018) | &nbsp;&nbsp;(2261) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Credit loss allowance) |  | &nbsp;&nbsp;(24529) | &nbsp;&nbsp;(32887) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;1196976 | &nbsp;&nbsp;1144628 |

---

(b) Changes in total carrying amount

Changes in total carrying value of loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

*i) Loans at amortized cost*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**asset** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 682492 | 22798 | &nbsp;&nbsp;17974 | 1858681 | 263074 | - | 2845019 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;6614 | &nbsp;&nbsp;(6567) | &nbsp;&nbsp;(47) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(7251) | &nbsp;&nbsp;7490 | &nbsp;&nbsp;(239) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(17713) | &nbsp;&nbsp;(3280) | &nbsp;&nbsp;20993 | &nbsp;&nbsp;- | &nbsp;&nbsp;(3591) | &nbsp;&nbsp;3591 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Origination, collection and others |  | &nbsp;&nbsp;(145135) | &nbsp;&nbsp;(4904) | &nbsp;&nbsp;(3484) | &nbsp;&nbsp;(225879) | &nbsp;&nbsp;(167242) | &nbsp;&nbsp;- | &nbsp;&nbsp;(546644) |
| &nbsp;&nbsp;&nbsp;Charge off (\*) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(13074) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(13074) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2135) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2135) |
| Ending balance | W | &nbsp;&nbsp;519007 | &nbsp;&nbsp;15537 | &nbsp;&nbsp;19988 | &nbsp;&nbsp;1632802 | &nbsp;&nbsp;92241 | &nbsp;&nbsp;3591 | &nbsp;&nbsp;2283166 |

---

(\*) The amount of uncollected loans (principal) at amortized cost, which has been charged off but is still being recovered as of December 31, 2025, is W21,562 million.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost (continued)</u>**

(b) Changes in total carrying amount (continued)

Changes in total carrying amount of loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows: (continued)

*i) Loans at amortized cost (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**asset** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 770296 | 24596 | &nbsp;&nbsp;14249 | 2640162 | 211068 | - | 3660371 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;7948 | &nbsp;&nbsp;(7782) | &nbsp;&nbsp;(166) | &nbsp;&nbsp;20000 | &nbsp;&nbsp;(20000) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(13075) | &nbsp;&nbsp;13322 | &nbsp;&nbsp;(247) | &nbsp;&nbsp;(54617) | &nbsp;&nbsp;54617 | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(16789) | &nbsp;&nbsp;(1766) | &nbsp;&nbsp;18555 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Origination, collection and others |  | &nbsp;&nbsp;(65888) | &nbsp;&nbsp;(5572) | &nbsp;&nbsp;(2619) | &nbsp;&nbsp;(746864) | &nbsp;&nbsp;17389 | &nbsp;&nbsp;- | &nbsp;&nbsp;(803554) |
| &nbsp;&nbsp;&nbsp;Charge off (\*) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1138) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1138) |
| Ending balance | W | &nbsp;&nbsp;682492 | &nbsp;&nbsp;22798 | &nbsp;&nbsp;17974 | &nbsp;&nbsp;1858681 | &nbsp;&nbsp;263074 | &nbsp;&nbsp;- | &nbsp;&nbsp;2845019 |

---

(\*) The amount of uncollected loans (principal) at amortized cost, which has been charged off but is still being recovered as of December 31, 2024, is W 32,322 million.

*ii) Receivables at amortized cost*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month**<br>**expected credit loss** | **Lifetime**<br>**expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*) | W | 2668866 | 2498 | 36207 | 2707571 |
| &nbsp;&nbsp;Transfer to (from) 12-month <br>expected credit losses |  | 33 | (32) | (1) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (31) | 40 | (9) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (1598) | 9 | 1589 | - |
| &nbsp;&nbsp;Origination, collection and others |  | 811706 | (301) | (77) | 811328 |
| &nbsp;&nbsp;Charge off |  | - | - | (10185) | (10185) |
| Ending balance (\*) | W | 3478976 | 2214 | 27524 | 3508714 |

---

(\*) Included the total carrying amounts of cash and cash equivalents and due from banks at amortized cost.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month**<br>**expected credit loss** | **Lifetime**<br>**expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*) | W | 2718336 | 2176 | 39955 | 2760467 |
| &nbsp;&nbsp;Transfer to (from) 12-month <br>expected credit losses |  | 57 | (54) | (3) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (171) | 174 | (3) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (98) | (700) | 798 | - |
| &nbsp;&nbsp;Origination, collection and others |  | (49258) | 902 | (434) | (48790) |
| &nbsp;&nbsp;Charge off |  | - | - | (4106) | (4106) |
| Ending balance (\*) | W | 2668866 | 2498 | 36207 | 2707571 |

---

(\*) Included the total carrying amounts of cash and cash equivalents and due from banks at amortized cost.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost (continued)</u>**

(c) Changes in credit loss allowance

Changes in credit loss allowance for loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

*i) Loans at amortized cost*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**assets** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial assets** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 8353 | 3719 | &nbsp;&nbsp;13302 | 4119 | 6072 | - | 35565 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;1210 | &nbsp;&nbsp;(1168) | &nbsp;&nbsp;(42) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(363) | &nbsp;&nbsp;448 | &nbsp;&nbsp;(85) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(488) | &nbsp;&nbsp;(583) | &nbsp;&nbsp;1071 | &nbsp;&nbsp;- | &nbsp;&nbsp;(798) | &nbsp;&nbsp;798 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Provision (reversal) |  | &nbsp;&nbsp;(3774) | &nbsp;&nbsp;(1022) | &nbsp;&nbsp;11380 | &nbsp;&nbsp;(667) | &nbsp;&nbsp;(3977) | &nbsp;&nbsp;2793 | &nbsp;&nbsp;4733 |
| &nbsp;&nbsp;&nbsp;Collection |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1787 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1787 |
| &nbsp;&nbsp;&nbsp;Charge off |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(13074) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(13074) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1106) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1106) |
| Ending balance | W | &nbsp;&nbsp;4938 | &nbsp;&nbsp;1394 | &nbsp;&nbsp;13233 | &nbsp;&nbsp;3452 | &nbsp;&nbsp;1297 | &nbsp;&nbsp;3591 | &nbsp;&nbsp;27905 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | &nbsp;&nbsp;**Retail loans** | **Corporate loans** | **Corporate loans** | **Corporate loans** | **Total** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial**<br>**assets** | &nbsp;&nbsp;**12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial assets** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 8082 | 3184 | &nbsp;&nbsp;9845 | 5806 | 10553 | - | 37470 |
| &nbsp;&nbsp;&nbsp;Transfer to (from) <br> 12-month expected credit losses |  | &nbsp;&nbsp;1282 | &nbsp;&nbsp;(1240) | &nbsp;&nbsp;(42) | &nbsp;&nbsp;301 | &nbsp;&nbsp;(301) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | &nbsp;&nbsp;(357) | &nbsp;&nbsp;384 | &nbsp;&nbsp;(27) | &nbsp;&nbsp;(120) | &nbsp;&nbsp;120 | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Transfer to (from) impaired financial asset |  | &nbsp;&nbsp;(382) | &nbsp;&nbsp;(286) | &nbsp;&nbsp;668 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Provision (reversal) |  | &nbsp;&nbsp;(272) | &nbsp;&nbsp;1677 | &nbsp;&nbsp;12173 | &nbsp;&nbsp;(1868) | &nbsp;&nbsp;(4300) | &nbsp;&nbsp;- | &nbsp;&nbsp;7410 |
| &nbsp;&nbsp;&nbsp;Collection |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1780 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1780 |
| &nbsp;&nbsp;&nbsp;Charge off |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(10660) |
| &nbsp;&nbsp;&nbsp;Disposal |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(435) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(435) |
| Ending balance | W | &nbsp;&nbsp;8353 | &nbsp;&nbsp;3719 | &nbsp;&nbsp;13302 | &nbsp;&nbsp;4119 | &nbsp;&nbsp;6072 | &nbsp;&nbsp;- | &nbsp;&nbsp;35565 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**16. <u>Loans and receivables at amortized cost (continued)</u>**

(c) Changes in credit loss allowance (continued)

Changes in credit loss allowance for loans and receivables at amortized cost for the years ended December 31, 2025 and 2024 are as follows: (continued)

*ii) Receivables at amortized cost*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*) | W | 1337 | 89 | 32349 | 33775 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | 8 | (6) | (2) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (2) | 8 | (6) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (1758) | (10) | 1768 | - |
| &nbsp;&nbsp;Provision (reversal) |  | 1181 | (31) | (145) | 1005 |
| Collection |  | - | - | 288 | 288 |
| &nbsp;&nbsp;Charge off |  | - | - | (10185) | (10185) |
| Ending balance (\*) | W | 766 | 50 | 24067 | 24883 |

---

**(**\*) Included credit loss allowance for due from banks at amortized cost.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance (\*) | W | 866 | 82 | 34648 | 35596 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | 9 | (6) | (3) | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | (2) | 5 | (3) | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | (2) | (15) | 17 | - |
| &nbsp;&nbsp;Provision (reversal) |  | 466 | 23 | 1646 | 2135 |
| Collection |  | - | - | 150 | 150 |
| &nbsp;&nbsp;Charge off |  | - | - | (4106) | (4106) |
| Ending balance (\*) | W | 1337 | 89 | 32349 | 33775 |

---

**(**\*) Included credit loss allowance for due from banks at amortized cost.

(d) Deferred loan origination cost (fees)

Changes in deferred loan origination cost (fees) for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Beginning balance  | W | 783 | (194) |
| Loan origination |  | (5181) | (1313) |
| &nbsp;&nbsp;Amortization |  | 930 | 2290 |
| Ending balance | W | (3468) | 783 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**17. <u>Lease</u>**

(a) Details of the right-of-use assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Acquisition cost** | **Accumulated depreciation** | &nbsp;&nbsp;**Carrying amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | &nbsp;&nbsp;W | 215445 | (149641) | 65804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle |  | 1032 | (525) | 507 |
|  | &nbsp;&nbsp;W | 216477 | (150166) | 66311 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Acquisition cost** | **Accumulated depreciation** | &nbsp;&nbsp;**Carrying amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | &nbsp;&nbsp;W | 195188 | (118486) | 76702 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle |  | 1041 | (471) | 570 |
|  | &nbsp;&nbsp;W | 196229 | (118957) | 77272 |

---

(b) Changes in the right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Real estate** | **Vehicle** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 76702  | 570  | 77272  |
| Acquisition |  | 26939 | 317 | 27256 |
| Disposal |  | (3059) | (105) | (3164) |
| Depreciation |  | (34096) | (276) | (34372) |
| Transfer |  | (681) | - | (681) |
| &nbsp;&nbsp;Ending balance | W | 65805 | 506 | 66311 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Real estate** | **Vehicle** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 92165 | 776 | 92941 |
| Acquisition |  | 16683 | 281 | 16964 |
| Disposal |  | (496) | (186) | (682) |
| Depreciation |  | (31375) | (301) | (31676) |
| Transfer |  | (275) | - | (275) |
| &nbsp;&nbsp;Ending balance | W | 76702 | 570 | 77272 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**17. <u>Lease (continued)</u>**

(c) The amount recognized in profit or loss for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Depreciation of right-of-use assets  | W | 34372 | 31676 |
| Interest expenses of lease liability |  | 1998 | 2354 |
| Expenses related to low-value lease assets |  | 352 | 377 |
|  |  | 36722 | 34407 |
| Revenues from sublease of right-of-use assets |  | (734) | (962) |
|  | W | 35988 | 33445 |

---

(d) Total cash outflows from leases for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Cash outflows of lease liabilities | W | 31,089 | 28,795 |
| Cash outflows of low-value lease assets |  | 352 | 377 |
|  | W | 31,441 | 29,172 |

---

(e) The estimated timing of outflows of lease liabilities as of the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Due(\*)** |  | **Real estate** | **Vehicle** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;In 1 month or less | &nbsp;&nbsp;W | 3244 | 24 | 3268 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 month through 3 months |  | 4674 | 47 | 4721 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 3 months through 6 months |  | 8825 | 67 | 8892 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 6 months through 1 year |  | 16513 | 121 | 16634 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 year through 5 years |  | 35042 | 285 | 35327 |
| After 5 years |  | - | - | - |
|  | &nbsp;&nbsp;W | 68298 | 544 | 68842 |

---

(\*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Due(\*)** |  | **Real estate** | **Vehicle** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;In 1 month or less | &nbsp;&nbsp;W | 2950 | 24 | 2974 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 month through 3 months |  | 5764 | 48 | 5812 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 3 months through 6 months |  | 8512 | 72 | 8584 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 6 months through 1 year |  | 16196 | 140 | 16336 |
| &nbsp;&nbsp;&nbsp;&nbsp;After 1 year through 5 years |  | 46567 | 334 | 46901 |
| After 5 years |  | - | - | - |
|  | &nbsp;&nbsp;W | 79989 | 618 | 80607 |

---

(\*) It is classified according to the maturity of the undiscounted contractual cash flows of lease liabilities.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**18. <u>Property and equipment</u>**

(a) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Accumulated**<br>**impairment** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Land | W | 12877 | - | - | 12877 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 36913 | (9802) | (10850) | 16261 |
| &nbsp;&nbsp;&nbsp;Structure |  | 3894 | (2755) | (780) | 359 |
| &nbsp;&nbsp;&nbsp;Rental property (\*) |  | 51214 | (37443) | - | 13771 |
| &nbsp;&nbsp;&nbsp;Equipment (\*) |  | 116361 | (95526) | - | 20835 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 4814 | - | - | 4814 |
|  | W | 226073 | (145526) | (11630) | 68917 |

---

(\*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Accumulated**<br>**impairment** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Land | W | 12877 | - | - | 12877 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 36913 | (9328) | (9979) | 17606 |
| &nbsp;&nbsp;&nbsp;Structure |  | 3894 | (2659) | (728) | 507 |
| &nbsp;&nbsp;&nbsp;Rental property (\*) |  | 43904 | (31616) | - | 12288 |
| &nbsp;&nbsp;&nbsp;Equipment (\*) |  | 110441 | (86041) | - | 24400 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 246 | - | - | 246 |
|  | W | 208275 | (129644) | (10707) | 67924 |

---

(\*) The acquisition cost and the accumulated depreciation of the rental property and equipment include the amount related to government subsidies.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**18. <u>Property and equipment (continued)</u>**

(b) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)** | **Impairment** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 12877 | - | - | - | - | - | 12877 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 17606 | - | - | - | (871) | (474) | 16261 |
| &nbsp;&nbsp;&nbsp;Structure |  | 507 | - | - | - | (52) | (96) | 359 |
| &nbsp;&nbsp;&nbsp;Rental property |  | 12288 | 7309 | - | - | - | (5826) | 13771 |
| &nbsp;&nbsp;&nbsp;Equipment |  | 24400 | 7403 | (119) | 16 | - | (10865) | 20835 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 246 | 4584 | - | (16) | - | - | 4814 |
|  | W | 67924 | 19296 | (119) | - | (923) | (17261) | 68917 |

---

(\*) Included amounts transferred from other property and equipment to equipment.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)** | **Impairment** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 12877 | - | - | - | - | - | 12877 |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 19699 | 14 | - | - | (1590) | (517) | 17606 |
| &nbsp;&nbsp;&nbsp;Structure |  | 739 | - | - | - | (113) | (119) | 507 |
| &nbsp;&nbsp;&nbsp;Rental property |  | 15125 | 2575 | - | 508 | - | (5920) | 12288 |
| &nbsp;&nbsp;&nbsp;Equipment |  | 27593 | 8129 | (106) | - | - | (11216) | 24400 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 89 | 678 | (13) | (508) | - | - | 246 |
|  | W | 76122 | 11396 | (119) | - | (1703) | (17772) | 67924 |

---

(\*) Included amounts transferred from other property and equipment to rental property.

(c) As of December 31, 2025, there are no property and equipment provided as collateral.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**19. <u>Intangible assets</u>**

(a) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Acquisi-tion costs** | **Accum-ulated amortiz-ation** | **Accum-ulated - impairment loss** | **Carry**<br>**-iyng amount** | **Acquisi-tion costs** | **Accum-ulated amortiz-ation** | **Accum-ulated - impairment loss** | **Carry**<br>**-iyng amount** |
| &nbsp;&nbsp;&nbsp;Development cost (\*) | W | 511568 | (404603) | (1168) | 105797 | 508344 | (343941) | (1167) | 163236 |
| &nbsp;&nbsp;&nbsp;Software (\*) |  | 141795 | (118081) | - | 23714 | 138579 | (106309) | - | 32270 |
| &nbsp;&nbsp;&nbsp;Membership |  | 8737 | - | (381) | 8356 | 8737 | - | (380) | 8357 |
| &nbsp;&nbsp;&nbsp;Others |  | 29117 | (12) | - | 29105 | 5526 | (11) | - | 5515 |
|  | W | 691217 | (522696) | (1549) | 166972 | 661186 | (450261) | (1547) | 209378 |

---

(\*) The acquisition cost of and the accumulated amortization of the development cost and software include the amount related to government subsidies.

(b) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)**  | **Impair**<br>**-ment**<br>**loss** | **Amortiza**<br>**-tion** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Development cost | W | 163236 | 3818 | - | 1681 | - | (62938) | 105797 |
| &nbsp;&nbsp;&nbsp;Software |  | 32270 | 1645 | (8) | 1586 | - | (11779) | 23714 |
| &nbsp;&nbsp;&nbsp;Membership |  | 8357 | - | - | - | (1) | - | 8356 |
| &nbsp;&nbsp;&nbsp;Others |  | 5515 | 27816 | (958) | (3267) | - | (1) | 29105 |
|  | W | 209378 | 33279 | (966) | - | (1) | (74718) | 166972 |

---

(\*) Included amounts transferred from intangible assets under development to development cost and software.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Other changes (\*)**  | **Impair**<br>**-ment**<br>**loss** | **Amortiza**<br>**-tion** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Development cost | W | 179693 | 12544 | (234) | 33189 | (166) | (61790) | 163236 |
| &nbsp;&nbsp;&nbsp;Software |  | 29897 | 10991 | (272) | 2987 | - | (11333) | 32270 |
| &nbsp;&nbsp;&nbsp;Membership |  | 8357 | - | - | - | - | - | 8357 |
| &nbsp;&nbsp;&nbsp;Others |  | 17455 | 24237 | - | (36176) | - | (1) | 5515 |
|  | W | 235402 | 47772 | (506) | - | (166) | (73124) | 209378 |

---

(\*) Included amounts transferred from intangible assets under development to development cost and software.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**20. <u>Insured assets</u>**

Details of insurance held for cash, securities and property and equipment of the Company as of the December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount covered** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount covered** |
| **Insurance type** | **Insured assets** | **Insurance company** |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| Comprehensive insurance for financial institutions | Electronic financial transaction | Meritz Fire & Marine<br>Insurance Co., Ltd., etc. | W | 500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500 |
| Comprehensive property insurance | Comprehensive property risk Mechanical risk<br>General liability risk | Meritz Fire & Marine<br>Insurance Co., Ltd., etc. |  | 99959 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;105890 |
| Executive Liability Insurance | Directors and officers | Meritz Fire & Marine<br>Insurance Co., Ltd. |  | 50000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50000 |
| Other insurance 1 | Personal information leakage | Meritz Fire & Marine<br>Insurance Co., Ltd., etc |  | 5000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5000 |
| Other insurance 2 | Cash, securities | Meritz Fire & Marine<br>Insurance Co., Ltd. |  | 30 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;270 |
| Other insurance 3 | Elevator accident | Samsung Fire & Marine<br>Insurance Co., Ltd. |  | 90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90 |
|  |  |  | W | 155579 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;161750 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**21. <u>Investment properties</u>**

(a) Details of investment properties as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Carrying amount** | **Acquisition cost** | &nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Carrying amount** |
| &nbsp;&nbsp;Land | W | 6032 | - | 6032 | 6032 | - | 6032 |
| &nbsp;&nbsp;Buildings  |  | 10649 | (2708) | 7941 | 10649 | (2496) | 8153 |
|  | W | 16681 | (2708) | 13973 | 16681 | (2496) | 14185 |

---

(b) Changes in investment properties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Beginning balance** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 6032 | - | 6032 |
| &nbsp;&nbsp;&nbsp;Buildings |  | 8153 | (212) | 7941 |
|  | W | 14185 | (212) | 13973 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Beginning balance** | **Depreciation** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;Land | W | 6032 | - | 6032 |
| &nbsp;&nbsp;&nbsp;Buildings |  | 8365 | (212) | 8153 |
|  | W | 14397 | (212) | 14185 |

---

(c) Income and expenses on investment properties

Rental income on investment properties and direct operating expenses for investment properties that generated rental income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Rental income | W | 1,626 | 1,681 |
| &nbsp;&nbsp;Operating expenses |  | 212 | 212 |

---

(d) Fair value measurement

*i) The fair value of investment properties as of December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Land  | W | 13,481 | 13,850 |
| Buildings  |  | 12,809 | 13,161 |
|  | W | 26,290 | 27,011 |

---

The fair value of an investment property is determined by the value measured by an independent assessment agency that has recently assessed a similar property in the area of the investment property being assessed, which is classified as Level 3 fair value based on inputs used in the valuation technique.

ii) Valuation techniques and inputs used in measuring the fair value of investment properties are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Valuation technique** |  | **2025** | **2024** | **Inputs** |
| Land  | &nbsp;&nbsp;&nbsp;Officially assessed land price-based approach | W | 13481 | 13850 | &nbsp;&nbsp;&nbsp;Officially assessed land price, transaction-related comparable cases  |
| Buildings  | &nbsp;&nbsp;&nbsp;Cost Approach |  | 12809 | 13161 | &nbsp;&nbsp;&nbsp;Transaction-related comparable cases |
|  |  | W | 26290 | 27011 |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives</u>**

(a) Notional amounts of outstanding derivative contracts as of December 31, 2025 and 2024 are as follows

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| **Currency related derivatives:** |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency futures | W | 857030 | 787438 |
| **Equity related derivatives:** |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | 270976 | 156694 |
| &nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 216994 | 343508 |
| **Interest rate related derivatives:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures |  | 67565 | 68534 |
| **Other derivatives:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 9391 | 7704 |
|  |  | 1421956 | 1363878 |
| **Hedges:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value hedges:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 325665 | 352619 |
| &nbsp;&nbsp;&nbsp;Cash flow hedges:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 2338128 | 2034281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 3677525 | 3127576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 3625707 | 2700358 |
|  |  | 9967025 | 8214834 |
|  | W | 11388981 | 9578712 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(b) Fair value

The fair values of derivatives held as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** |
| **Equity related derivatives:** |  |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures | W | 309 | 12 | - | 159 |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 965 | - | 526 | - |
| **Other derivatives:** |  |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 348 | 17 | 97 | 86 |
|  |  | 1622 | 29 | 623 | 245 |
| **Hedges:** |  |  |  |  |  |
| &nbsp;&nbsp;Fair value hedges:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 2845 | 8275 | - | 29428 |
| &nbsp;&nbsp;Cash flow hedges:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 661 | 210611 | - | 172676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 2601 | 412716 | 2369 | 245963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 26745 | 239191 | 114530 | 53280 |
|  |  | 32852 | 870793 | 116899 | 501347 |
|  | W | 34474 | 870822 | 117522 | 501592 |

---

(c) Gains or losses related to derivatives

Gains or losses related to derivatives for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2024** |
| Gains related to derivatives  | W | 164,553 | 164,553 | 65,275 |
| Losses related to derivatives  |  | 423,970 | 423,970 | 687,835 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(d) Gains and losses on valuation of derivatives

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Profit or loss** | **Profit or loss** | **Other comprehensive income (\*1) (\*2)** |
|  |  | **Valuation gain** | **Valuation loss** | **Other comprehensive income (\*1) (\*2)** |
| **Equity related derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures | W | 309 | 12 | - |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 619 | 136 | - |
| **Other derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 349 | 16 | - |
|  |  | 1277 | 164 | - |
| **Hedges:**  |  |  |  |  |
| &nbsp;&nbsp;Fair value hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 2845 | 8275 | - |
| &nbsp;&nbsp;Cash flow hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 15031 | 25424 | (77126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 27449 | 190821 | (69574) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 59 | 6703 | (267674) |
|  |  | 45384 | 231223 | (414374) |
|  | W | 46661 | 231387 | (414374) |

---

(\*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the income tax effect.

(\*2) Excluded the change in the other comprehensive income for the year ended December 31, 2025, amounting to W1,497 million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2025.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(d) Gains and losses on valuation of derivatives (continued)

Valuation gains and losses of derivatives for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Profit or loss** | **Profit or loss** | **Other comprehensive income (\*1) (\*2)** |
|  |  | **Valuation gain** | **Valuation loss** | **Other comprehensive income (\*1) (\*2)** |
| **Equity related derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures | W | - | 159 | - |
| &nbsp;&nbsp;Over the counter: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 64 | 1633 | - |
| **Other derivatives:** |  |  |  |  |
| &nbsp;&nbsp;Exchange traded: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 97 | 87 | - |
|  |  | 161 | 1879 | - |
| **Hedges:**  |  |  |  |  |
| &nbsp;&nbsp;Fair value hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | - | 30731 | - |
| &nbsp;&nbsp;Cash flow hedges:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | - | 196570 | 20961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | - | 225780 | 7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | 21 | 7414 | 122904 |
|  |  | 21 | 460495 | 151443 |
|  | W | 182 | 462374 | 151443 |

---

(\*1) The other comprehensive income resulting from the application of cash flow hedge accounting is the amount before deducting the income tax effect.

(\*2) Excluded the change in the other comprehensive income for the year ended December 31, 2024, amounting to W(88,537) million, arising from bond forwards and interest rate swaps which are matured as of December 31, 2024.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(e) Gains or losses related to hedge

*i) The amounts recognized in profit or loss due to the ineffectiveness of the hedge in fair value hedges for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** |
| **Fair value hedge** |  | **Fair value hedge designated gains or losses (hedged item)** | &nbsp;&nbsp;&nbsp;**Fair value hedge designated gains or losses (hedging instrument)** | **Ineffective portion of hedge recognized at profit or loss (\*)** |
| &nbsp;&nbsp;&nbsp;Foreign currency risk | W | (3285) | (1901) | (5186) |

---

(\*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** |
| **Fair value hedge** |  | **Fair value hedge designated gains or losses (hedge item)** | &nbsp;&nbsp;&nbsp;**Fair value hedge designated gains or losses (hedging instrument)** | **Ineffective portion of hedge recognized at profit or loss (\*)** |
| &nbsp;&nbsp;&nbsp;Foreign currency risk | W | 40813 | (43781) | (2968) |

---

(\*) An ineffective portion of hedge is the difference of hedging gains or losses between the hedging instrument and the hedged item.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(e) Gains or losses related to hedge (continued)

*ii) The amounts and the accounts affecting profit or loss and other comprehensive income due to the ineffectiveness of the hedge in cash flow hedges for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** | &nbsp;&nbsp;&nbsp; **2025** |
| **Cash flow hedge** |  | **Hedge gains or losses for the reporting period recognized at other comprehensive income (\*1)** | &nbsp;&nbsp;&nbsp;**Ineffective portion of hedge recognized at profit or loss (\*2)** | **Amount reclassified from cash flow hedge reserves to profit or loss** |
| &nbsp;&nbsp;&nbsp;Interest rate risk | W | (267674) | (6022) | - |
| &nbsp;&nbsp;&nbsp;Foreign currency translation risk |  | (146701) | (2316) | (176270) |
| &nbsp;&nbsp;&nbsp;Discontinuation of <br>Hedging (\*3) |  | 1497 | - | 7 |
|  | &nbsp;&nbsp;W | (412878) | (8338) | (176263) |

---

(\*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.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** | &nbsp;&nbsp;&nbsp; **2024** |
| **Cash flow hedge** |  | **Hedge gains or losses for the reporting period recognized at other comprehensive income (\*1)** | &nbsp;&nbsp;&nbsp;**Ineffective portion of hedge recognized at profit or loss (\*2)** | **Amount reclassified from cash flow hedge reserves to profit or loss** |
| &nbsp;&nbsp;&nbsp;Interest rate risk | W | 122904 | (7393) | - |
| &nbsp;&nbsp;&nbsp;Foreign currency translation risk |  | 28539 | (1934) | (461137) |
| &nbsp;&nbsp;&nbsp;Discontinuation of <br>Hedging (\*3) |  | (88537) | - | 47915 |
|  | &nbsp;&nbsp;W | 62906 | (9327) | (413222) |

---

(\*1) Amount before deduction of income tax effect as other comprehensive income in the statement of comprehensive income.

(\*2) Ineffective portion of hedge: difference of hedging gains or losses between the hedging instrument and the hedged item.

(\*3) A derivative contract to avoid the risk of cash flow changes in debt securities due to changes in interest rates, which has matured as of the end of the reporting period.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(f) Effects of hedge accounting on the separate statement of financial position, the separate statement of comprehensive income, and the separate statement of changes in equity

*i) Hedging purpose and strategy*

The Company trades derivative instruments to avoid exchange risk and interest rate arising from the assets of the Company. The Company applies fair value hedge accounting using currency forward to avoid fair value changes due to exchange rate changes of foreign currency beneficiary certificates. The Company also applies cash flow hedge accounting using currency forward, currency swap and interest rate forward to avoid cash flow volatility caused by exchange rate and interest rate changes of foreign currency bonds and structured deposits, as well as bonds in Won.

*ii) Average hedge ratio*

Nominal amounts and average hedge ratios for hedging instruments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**3 years** | **After 3 years through**<br>**4 years** | **After 4 years through**<br>**5 years** | **After 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Interest rate risk  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Nominal amount of hedging instrument | W | 1064184 | 821851 | 894267 | 741241 | 52300 | 51864 | 3625707 |
| &nbsp;&nbsp;&nbsp; - Average price |  | 2.66% | 3.16% | 3.28% | 2.78% | 3.12% | 3.12% |  |
| &nbsp;&nbsp;&nbsp; - Average hedge ratio |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;Foreign currency risk(\*)  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Nominal amount of hedging instruments  | W | 1440673 | 924737 | 1555099 | 816883 | 889076 | 714850 | 6341318 |
| &nbsp;&nbsp;&nbsp;- Average hedge ratio: |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

---

(\*) The average exchange rates for the hedging instruments are USD/KRW 1,299.36, EUR/KRW 1,488.89, GBP/KRW 1,484.00, AUD/KRW 886.93, and SEK/KRW 130.77.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**3 years** | **After 3 years through**<br>**4 years** | **After 4 years through**<br>**5 years** | **After 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Interest rate risk  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; - Nominal amount of hedging instrument | W | 103543 | 1064184 | 670683 | 673962 | 83822 | 104164 | 2700358 |
| &nbsp;&nbsp;&nbsp; - Average price |  | 3.20% | 2.66% | 3.24% | 3.46% | 3.28% | 3.12% |  |
| &nbsp;&nbsp;&nbsp; - Average hedge ratio |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;Foreign currency risk(\*)  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Nominal amount of hedging instruments  | W | 1390969 | 761831 | 869678 | 1354457 | 737635 | 399906 | 5514476 |
| &nbsp;&nbsp;&nbsp;- Average hedge ratio: |  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

---

(\*) The average exchange rates for the hedging instruments are USD/KRW 1,273.65, EUR/KRW 1,396.60, GBP/KRW 1,484.00, AUD/KRW 883.39, and SEK/KRW 127.57.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(f) Effects of hedge accounting on the separate statement of financial position, the separate statement of comprehensive income, and the separate statement of changes in equity (continued)

*iii) The impact of hedging instruments on the separate statement of financial position, the separate statement of comprehensive income, and the separate statement of changes in equity as of and for the years ended December 31, 2025 and 2024*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Fair value changes during the period** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Fair value changes during the period** |
| &nbsp;&nbsp;**Fair value hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward | &nbsp;&nbsp;W | &nbsp;&nbsp;325665 | &nbsp;&nbsp;2845 | &nbsp;&nbsp;8275 | &nbsp;&nbsp;(1901) |
| &nbsp;&nbsp;**Cash flow hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | &nbsp;&nbsp;3625707 | &nbsp;&nbsp;26745 | &nbsp;&nbsp;239191 | &nbsp;&nbsp;(273328) |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swap |  | &nbsp;&nbsp;3677525 | &nbsp;&nbsp;2601 | &nbsp;&nbsp;412716 | &nbsp;&nbsp;(227548) |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | &nbsp;&nbsp;2338128 | &nbsp;&nbsp;661 | &nbsp;&nbsp;210611 | &nbsp;&nbsp;(85023) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Fair value changes during the period** |
|  |  | &nbsp;&nbsp;**Nominal amount** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Fair value changes during the period** |
| &nbsp;&nbsp;**Fair value hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward | &nbsp;&nbsp;W | &nbsp;&nbsp;352619 | &nbsp;&nbsp;- | &nbsp;&nbsp;29428 | &nbsp;&nbsp;(43781) |
| &nbsp;&nbsp;**Cash flow hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward |  | &nbsp;&nbsp;2700358 | &nbsp;&nbsp;114530 | &nbsp;&nbsp;53280 | &nbsp;&nbsp;87936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swap |  | &nbsp;&nbsp;3127576 | &nbsp;&nbsp;2369 | &nbsp;&nbsp;245963 | &nbsp;&nbsp;(214801) |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | &nbsp;&nbsp;2034281 | &nbsp;&nbsp;- | &nbsp;&nbsp;172676 | &nbsp;&nbsp;(173472) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**22. <u>Derivatives (continued)</u>**

(f) Effects of hedge accounting on the separate statement of financial position, the separate statement of comprehensive income, and the separate `statement of changes in equity (continued)

*iv) The impact of hedged items on the separate statement of financial position, the separate statement of comprehensive income, the separate statement of changes in equity as of and for the years ended December 31, 2025 and 2024*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
|  |  | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
| &nbsp;&nbsp;**Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: securities in foreign currencies | &nbsp;&nbsp;W  | &nbsp;&nbsp;354482 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3285) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk: bonds in won and in foreign currencies |  | &nbsp;&nbsp;488318 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(222410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: bonds and loans in foreign currencies |  | &nbsp;&nbsp;4388035 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;153355 | &nbsp;&nbsp;(67534) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Carrying value** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**Accumulated adjustments for fair value hedge** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
|  |  | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**Asset** | &nbsp;&nbsp;**Liability** | &nbsp;&nbsp;**FV changes during the period** | &nbsp;&nbsp;**Cash flow hedge reserves** |
| &nbsp;&nbsp;**Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: securities in foreign currencies | &nbsp;&nbsp;W  | &nbsp;&nbsp;386966 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;40813 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk: bonds in won and in foreign currencies |  | &nbsp;&nbsp;409183 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;43768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk: bonds and loans in foreign currencies |  | &nbsp;&nbsp;3698841 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;413772 | &nbsp;&nbsp;79166 |

---

(g) As of December 31, 2025, due from banks with restriction on use related to derivative transactions is W83,907 million (W74,296 as of December 31, 2024) and W28,942 million of which is deposited at Shinhan Securities Co., Ltd., a related party.

(h) As of December 31, 2025, financial assets of W1,264,644 million (W718,881 million as of December 31, 2024) are provided as collateral to financial institutions such as Samsung Futures Co., Ltd. for derivatives transactions. Of these, the collateral amount provided to the related parties, Shinhan Securities Co., Ltd. and Shinhan Bank Co., Ltd. are W30,537 and W146,627 million, respectively.

(i) As of December 31, 2025, the quantified effect of the mitigation of credit risk related to derivative assets, resulting from collateral held such as securities, amounts to W21,640 million (W81,381 million as of December 31, 2024).

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**23. <u>Other assets</u>**

Other assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Prepaid expense | W | 8,224 | 7,897 |
| Prepayments |  | 1,307 | 9 |
| Others  |  | 346 | 336 |
|  | W | 9,877 | 8,242 |

---

**24. <u>Pledged Assets</u>**

The assets pledged as collateral as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2024** | **Reason for collateral** |
| &nbsp;&nbsp;Securities at fair value through profit or loss | W | 170521 | 101197 | &nbsp;&nbsp;Variable insurance funds substitute securities transactions |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 1152880 | 512157 | &nbsp;&nbsp;Derivatives, compensation joint fund, coinsurance |
| Securities at amortized cost |  | 183450 | 105527 | &nbsp;&nbsp;&nbsp;Derivatives |
| Investment property  |  | 376 | 376 | Collateral mortgage |
|  | W | 1507227 | 719257 |  |

---

**25. <u>Insurance contract liabilities</u>**

(a) The carrying amounts of insurance contract liabilities as of December 31, 2025 and 2024, are as follows:

*i) By insurance product*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Life | W | 17,893,980 | 17,609,493 |
| Health |  | 4,955,045 | 5,411,591 |
| Annuity & savings |  | 19,249,216 | 20,427,712 |
| Variable |  | 5,814,382 | 4,970,854 |
|  | W | 47,912,623 | 48,419,650 |

---

*ii) By type of insurance contract*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Participating | W | 5,089,929 | 5,318,700 |
| Non-participating |  | 37,008,312 | 38,130,096 |
| Variable |  | 5,814,382 | 4,970,854 |
|  | W | 47,912,623 | 48,419,650 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **General measurement model** | **General measurement model** | **General measurement model** | **Variable fee approach** | **Variable fee approach** | **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** | **Premium allocation approach** |
| **Non-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating life | W | 711307 | 9044 | 46786 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 9656916 | 526980 | 2479776 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating health |  | 33518 | 590 | 4290 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating health |  | 598264 | 603390 | 3095108 | - | - | - | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 1226299 | 3122 | 86 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 1039632 | 88 | 3 | - | - | - | 801 |
| &nbsp;&nbsp;&nbsp;**Indirect-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 3338079 | 105300 | 531685 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable life |  | 1067440 | 55890 | 90018 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 2748281 | 6317 | 79703 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 11039593 | 44773 | 961124 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  | 1330933 | 4606 | 131956 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**Direct-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable annuity & savings |  | - | - | - | 4383410 | 21518 | 133201 | - |
| &nbsp;&nbsp;&nbsp;**Subtotal** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating |  | 4719405 | 19073 | 130865 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | 27003417 | 1285137 | 7199652 | - | - | - | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | 1067440 | 55890 | 90018 | 4383410 | 21518 | 133201 | - |
|  | W | 32790262 | 1360100 | 7420535 | 4383410 | 21518 | 133201 | 876 |

---

(\*) The above table resents the liabilities for remaining coverage, where

1) Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2) Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3) Direct-par: Groups of insurance contracts with direct participation features.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(b) Measurement model and the carrying value of each product portfolio for insurance contract liabilities are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **General measurement model** | **General measurement model** | **General measurement model** | **Variable fee approach** | **Variable fee approach** | **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** | **Premium allocation approach** |
| **Non-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating life | W | 745498 | 9632 | 37819 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 9421228 | 517447 | 2395406 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating health |  | 41039 | 662 | 2939 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating health |  | 1141197 | 558063 | 3004480 | - | - | - | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 1283222 | 4022 | 91 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 836409 | 81 | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**Indirect-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating life |  | 3332895 | 116290 | 551776 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable life |  | 789150 | 56804 | 87522 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating annuity & savings |  | 2888543 | 6661 | 77684 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  | 12361824 | 40368 | 891849 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  | 1299061 | 2990 | 126162 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;**Direct-Par** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable annuity & savings |  | - | - | - | 3908127 | 19038 | 48386 | - |
| **Subtotal** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Participating |  | 4958302 | 20977 | 118533 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | 28392614 | 1235239 | 6969673 | - | - | - | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | 789150 | 56804 | 87522 | 3908127 | 19038 | 48386 | - |
|  | W | 34140066 | 1313020 | 7175728 | 3908127 | 19038 | 48386 | 171 |

---

(\*) The above table resents the liabilities for remaining coverage, where

1) Non-par: Groups of insurance contracts for which changes in assumptions related to financial risk do not have a substantial effect on the amounts payable to policyholders;

2) Indirect-par: Groups of insurance contracts for which changes in assumptions related to financial risk have a substantial effect on the amounts payable to policyholders; and

3) Direct-par: Groups of insurance contracts with direct participation features.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**25. <u>Insurance contract liabilities (continued)</u>**

(c) As of December 31, 2025, and December 31, 2024, the Company applied the following assumptions for estimating future cash flows for the contracts held, along with the basis for their determination.

---

| | | | |
|:---|:---|:---|:---|
| **Classification** | **2025** | **2024** | **Assumptions and measurement basis** |
| &nbsp;&nbsp;Lapse ratio | 0% ~ 66.77% | 0% ~ 69.75% | &nbsp;&nbsp;&nbsp;- The ratio of lapseed contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-lapse-value insurance products), and duration.<br>- For zero/low-lapse-value insurance products, the surrender ratio for the period when there is insufficient experience statistics is calculated, using the log-linear regression model, so that it converges to 0.1% at the time of completion of premium payments |
| &nbsp;&nbsp;Loss ratio | 3.16% ~ 1,787.70% | 8% ~ 316% | &nbsp;&nbsp;&nbsp;- 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>- General mortality: the ratio of actual mortality rate to expected mortality rate by risk coverage and elapsed period based on the last five years' experience statistics  |
| Operating expense ratio | - | - | &nbsp;&nbsp;&nbsp;- Calculate unit costs such as performance, agent commissions, number of new/retained contracts, initial/continuing premiums, reserve funds, etc. based on a business plan (budget) incorporating future expense policies based on recent experience statistics |
| Discount rate | 2.79% ~ 4.59% | 2.31% ~ 4.55% | &nbsp;&nbsp;&nbsp;- 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% | &nbsp;&nbsp;&nbsp;- The risk adjustment is calculated as the portion of 75th percentile exceeding the probability-weighted average of the present value of future cash flows, assuming that the probability distribution of the present value of future cash flows follows a normal distribution at each reporting date. |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(d) Expected claims by period compared to risk premiums are as below:

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 11648 | 11712 | 11728 | 11723 | 11693 | 11633 | 11546 | 11421 | 11256 | 11040 | 50785 | 41996 | 33709 | 26849 | 53892 | 187936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 32757 | 33568 | 34351 | 35089 | 35750 | 36351 | 36879 | 37304 | 37609 | 37793 | 188152 | 178947 | 160757 | 134205 | 231427 | 686650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 35.56% | 34.89% | 34.14% | 33.41% | 32.71% | 32.00% | 31.31% | 30.62% | 29.93% | 29.21% | 26.99% | 23.47% | 20.97% | 20.01% | 23.29% | 27.37% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 493789 | 499149 | 502700 | 506152 | 507814 | 507318 | 506508 | 505064 | 505101 | 503796 | 2488659 | 2367449 | 2107041 | 1726616 | 6264192 | 9723857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 572930 | 572032 | 567986 | 569379 | 568209 | 569984 | 575634 | 580151 | 587183 | 592430 | 3022601 | 3062465 | 2987067 | 2754610 | 11852823 | 12868423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 86.19% | 87.26% | 88.51% | 88.90% | 89.37% | 89.01% | 87.99% | 87.06% | 86.02% | 85.04% | 82.34% | 77.31% | 70.54% | 62.68% | 52.85% | 75.56% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 2017 | 1981 | 1785 | 1691 | 1624 | 1546 | 1459 | 1375 | 1302 | 1218 | 4916 | 3246 | 2086 | 1372 | 4257 | 20743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 2868 | 2857 | 2638 | 2549 | 2489 | 2414 | 2320 | 2232 | 2154 | 2060 | 8828 | 6515 | 4698 | 3371 | 7844 | 34945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 70.33% | 69.34% | 67.66% | 66.34% | 65.24% | 64.06% | 62.88% | 61.62% | 60.45% | 59.12% | 55.68% | 49.83% | 44.41% | 40.71% | 54.28% | 59.36% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 765312 | 744833 | 721778 | 707643 | 701354 | 691310 | 682296 | 679945 | 682760 | 686335 | 3527142 | 3712303 | 3701653 | 3603023 | 16702778 | 16158101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 756658 | 743657 | 718165 | 702482 | 692890 | 683450 | 673566 | 675925 | 675399 | 676499 | 3439614 | 3443963 | 3372264 | 3242106 | 14695580 | 15311939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 101.14% | 100.16% | 100.50% | 100.73% | 101.22% | 101.15% | 101.30% | 100.59% | 101.09% | 101.45% | 102.54% | 107.79% | 109.77% | 111.13% | 113.66% | 105.53% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 840 | 731 | 628 | 541 | 466 | 413 | 381 | 358 | 339 | 334 | 1819 | 2500 | 3623 | 4961 | 30464 | 16541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 2350 | 2134 | 1921 | 1742 | 1588 | 1474 | 1428 | 1410 | 1406 | 1438 | 8313 | 11283 | 15118 | 19043 | 76899 | 56663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 35.73% | 34.24% | 32.69% | 31.08% | 29.35% | 28.04% | 26.67% | 25.40% | 24.09% | 23.24% | 21.88% | 22.15% | 23.97% | 26.05% | 39.62% | 29.19% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 169 | 152 | 87 | 58 | 20 | 13 | 13 | 12 | 11 | 10 | 48 | 46 | 48 | 53 | 194 | 640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 364 | 297 | 164 | 111 | 60 | 50 | 49 | 48 | 46 | 46 | 223 | 208 | 191 | 169 | 455 | 1623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 46.49% | 51.24% | 52.90% | 52.27% | 32.74% | 26.71% | 25.57% | 24.12% | 23.34% | 22.61% | 21.43% | 22.00% | 25.35% | 31.26% | 42.68% | 39.43% |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(d) Expected claims by period compared to risk premiums are as below: (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 137679 | 138980 | 139905 | 141197 | 140579 | 140663 | 141528 | 140624 | 140168 | 140043 | 695006 | 680035 | 653572 | 605557 | 2327859 | 2927369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 133166 | 134460 | 134716 | 135290 | 136967 | 139152 | 141210 | 143518 | 146018 | 147602 | 774557 | 808518 | 813594 | 769494 | 2840238 | 3273610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 103.39% | 103.36% | 103.85% | 104.37% | 102.64% | 101.09% | 100.22% | 97.98% | 95.99% | 94.88% | 89.73% | 84.11% | 80.33% | 78.70% | 81.96% | 89.42% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 57354 | 56517 | 55523 | 54865 | 54211 | 53873 | 53386 | 52751 | 52757 | 52875 | 265396 | 271126 | 276720 | 269946 | 918408 | 1176457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 65216 | 64661 | 63631 | 63166 | 63273 | 63665 | 64017 | 64518 | 65349 | 66220 | 346778 | 376553 | 397115 | 381683 | 906076 | 1469065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 87.94% | 87.41% | 87.26% | 86.86% | 85.68% | 84.62% | 83.39% | 81.76% | 80.73% | 79.85% | 76.53% | 72.00% | 69.68% | 70.73% | 101.36% | 80.08% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 425 | 395 | 373 | 352 | 332 | 311 | 290 | 271 | 257 | 242 | 1002 | 657 | 352 | 180 | 368 | 4042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1045 | 924 | 849 | 764 | 678 | 598 | 529 | 465 | 418 | 378 | 1400 | 955 | 594 | 359 | 689 | 7709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 40.70% | 42.79% | 43.92% | 46.07% | 48.90% | 52.03% | 54.94% | 58.34% | 61.44% | 63.89% | 71.62% | 68.84% | 59.22% | 50.30% | 53.36% | 52.44% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 5782 | 5541 | 5238 | 5021 | 4831 | 4538 | 4281 | 3964 | 3784 | 3596 | 15225 | 11196 | 7710 | 4315 | 3116 | 60717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 7930 | 7437 | 6957 | 6559 | 6215 | 5890 | 5501 | 5064 | 4800 | 4562 | 19251 | 13943 | 9883 | 6014 | 5663 | 79453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 72.92% | 74.50% | 75.29% | 76.56% | 77.73% | 77.04% | 77.82% | 78.28% | 78.83% | 78.83% | 79.08% | 80.30% | 78.02% | 71.76% | 55.03% | 76.42% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 889 | 854 | 820 | 779 | 737 | 699 | 662 | 612 | 566 | 530 | 2174 | 1476 | 941 | 514 | 331 | 8900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1043 | 997 | 957 | 903 | 855 | 817 | 771 | 694 | 643 | 599 | 2477 | 1680 | 1071 | 588 | 381 | 10296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 85.21% | 85.63% | 85.69% | 86.28% | 86.14% | 85.58% | 85.91% | 88.19% | 88.07% | 88.46% | 87.78% | 87.88% | 87.86% | 87.32% | 86.91% | 86.45% |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 7977 | 7266 | 6652 | 6147 | 5686 | 5247 | 4824 | 4384 | 3953 | 3582 | 13568 | 8007 | 4423 | 2224 | 3083 | 63975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 8725 | 8002 | 7323 | 6760 | 6243 | 5752 | 5267 | 4826 | 4426 | 4066 | 15830 | 10440 | 7030 | 4762 | 11261 | 75527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 91.42% | 90.81% | 90.83% | 90.93% | 91.07% | 91.23% | 91.60% | 90.84% | 89.32% | 88.08% | 85.71% | 76.70% | 62.92% | 46.69% | 27.38% | 84.71% |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 1483881 | 1468112 | 1447217 | 1436170 | 1429347 | 1417565 | 1407174 | 1400781 | 1402253 | 1403600 | 7065742 | 7100039 | 6791879 | 6245612 | 26308942 | 30349280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1585053 | 1571025 | 1539658 | 1524792 | 1515218 | 1509597 | 1507172 | 1516155 | 1525450 | 1533692 | 7828024 | 7915469 | 7769383 | 7316405 | 30629334 | 33875902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 93.62% | 93.45% | 94.00% | 94.19% | 94.33% | 93.90% | 93.37% | 92.39% | 91.92% | 91.52% | 90.26% | 89.70% | 87.42% | 85.36% | 85.89% | 89.59% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

(\*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(d) Expected claims by period compared to risk premiums are as below: (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 11728 | 11909 | 12079 | 12236 | 12374 | 12481 | 12563 | 12619 | 12629 | 12591 | 60612 | 53866 | 46237 | 40605 | 96060 | 236748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 32295 | 33397 | 34598 | 35778 | 36938 | 38039 | 39111 | 40124 | 41027 | 41820 | 216897 | 219831 | 210573 | 187071 | 372699 | 852625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 481738 | 481227 | 483311 | 483429 | 483296 | 484440 | 485622 | 486076 | 486792 | 487400 | 2439243 | 2353694 | 2140987 | 1773932 | 5446566 | 9892855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 553429 | 557185 | 557104 | 555763 | 560146 | 562067 | 566604 | 574630 | 581337 | 589885 | 3048605 | 3152033 | 3129258 | 2889024 | 9718037 | 13360811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 2208 | 2083 | 2043 | 1843 | 1746 | 1677 | 1597 | 1508 | 1423 | 1348 | 5485 | 3667 | 2350 | 1510 | 4482 | 23521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 3013 | 2881 | 2867 | 2651 | 2557 | 2495 | 2419 | 2326 | 2237 | 2158 | 9333 | 6933 | 4992 | 3532 | 8108 | 37914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 631453 | 616108 | 599988 | 592367 | 589999 | 590001 | 586123 | 584930 | 590297 | 597004 | 3059846 | 3202230 | 3196124 | 3105639 | 14873727 | 14556485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 652227 | 634482 | 614584 | 599689 | 591661 | 586516 | 579600 | 576028 | 581959 | 580852 | 2945773 | 2992861 | 3063436 | 2952901 | 12889375 | 13989143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 963 | 835 | 721 | 614 | 521 | 441 | 384 | 348 | 322 | 299 | 1539 | 2082 | 3079 | 4450 | 31390 | 16897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 2567 | 2346 | 2137 | 1926 | 1746 | 1586 | 1466 | 1414 | 1392 | 1384 | 7731 | 10375 | 13936 | 17699 | 77819 | 58410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 138 | 139 | 108 | 60 | 46 | 15 | 14 | 13 | 12 | 12 | 54 | 53 | 59 | 67 | 278 | 694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 291 | 270 | 197 | 100 | 90 | 53 | 51 | 51 | 50 | 48 | 240 | 232 | 223 | 207 | 635 | 1716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 47.46% | 51.43% | 54.71% | 59.60% | 50.87% | 28.29% | 27.28% | 26.19% | 24.81% | 24.06% | 22.63% | 22.89% | 26.29% | 32.62% | 43.79% | 40.43% |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(d) Expected claims by period compared to risk premiums are as below: (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 133459 | 136517 | 137827 | 138106 | 139295 | 138998 | 139584 | 141183 | 140611 | 140429 | 704374 | 689595 | 657398 | 606310 | 2232023 | 3043396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 129015 | 129635 | 130579 | 131034 | 132275 | 133205 | 134789 | 137133 | 138508 | 140416 | 732659 | 774047 | 793446 | 768261 | 2746956 | 3322462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 57236 | 56123 | 55291 | 54464 | 54002 | 53584 | 53407 | 53179 | 52880 | 53255 | 273842 | 291303 | 309503 | 315823 | 1279070 | 1350287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 65830 | 65290 | 64717 | 63994 | 63760 | 63882 | 64406 | 65042 | 65765 | 67008 | 354677 | 384462 | 391274 | 350069 | 772704 | 1507775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 432 | 404 | 384 | 363 | 343 | 325 | 306 | 286 | 267 | 252 | 1058 | 721 | 391 | 186 | 359 | 4355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1067 | 945 | 871 | 793 | 707 | 626 | 558 | 493 | 432 | 384 | 1387 | 880 | 504 | 237 | 387 | 7890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 5986 | 5618 | 5365 | 5061 | 4813 | 4604 | 4384 | 4128 | 3815 | 3635 | 15490 | 11425 | 8029 | 4743 | 3736 | 64293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 8324 | 7766 | 7306 | 6832 | 6430 | 6081 | 5762 | 5386 | 4964 | 4699 | 19904 | 14346 | 10232 | 6384 | 6107 | 85471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 886 | 841 | 804 | 769 | 727 | 682 | 642 | 601 | 546 | 497 | 1962 | 1231 | 732 | 377 | 234 | 8600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1106 | 1048 | 1002 | 956 | 898 | 844 | 794 | 741 | 654 | 593 | 2339 | 1456 | 861 | 444 | 271 | 10531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 8045 | 7272 | 6557 | 5945 | 5438 | 4988 | 4560 | 4162 | 3755 | 3351 | 12496 | 7352 | 4077 | 2033 | 2416 | 62919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 9324 | 8484 | 7700 | 6991 | 6379 | 5829 | 5306 | 4800 | 4346 | 3944 | 15041 | 9480 | 6044 | 3795 | 8260 | 76773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected claim (A) W | 1334272 | 1319076 | 1304478 | 1295257 | 1292600 | 1292236 | 1289186 | 1289033 | 1293349 | 1300073 | 6576001 | 6617219 | 6368966 | 5855675 | 23970341 | 29261050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Premium (B) | 1458488 | 1443729 | 1423662 | 1406507 | 1403587 | 1401223 | 1400866 | 1408168 | 1422671 | 1433191 | 7354586 | 7566936 | 7624779 | 7179624 | 26601358 | 33311521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss ratio (A/B) | 91.48% | 91.37% | 91.63% | 92.09% | 92.09% | 92.22% | 92.03% | 91.54% | 90.91% | 90.71% | 89.41% | 87.45% | 83.53% | 81.56% | 90.11% | 87.84% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

(\*2) Expected claims exclude items not corresponding to risk premiums (life annuity)

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**25. <u>Insurance contract liabilities (continued)</u>**

(d) Expected claims by period compared to risk premiums are as below: (continued)

Ratio of expected claims to actual claims for the years ended December 31, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Expected loss ratio (A) | &nbsp;&nbsp;&nbsp;93.12% | &nbsp;&nbsp;&nbsp;93.11% |
| &nbsp;&nbsp;&nbsp;Actual loss ratio (B) | &nbsp;&nbsp;&nbsp;99.39% | &nbsp;&nbsp;&nbsp;96.26% |
| &nbsp;&nbsp;&nbsp;Ratio of expected claims to actual claims (C=A-B) (%p) | &nbsp;&nbsp;&nbsp;(6.27)% | &nbsp;&nbsp;&nbsp;(3.15)% |

---

(\*1) Prepared for the underlying insurance contracts

(\*2) Expected loss ratio (A) = expected claims for the year divided by actual risk premiums for the year

(\*3) Actual loss ratio (B) = the sum of incurred claims for the year and incurred claims adjustments for the year, which is then divided by actual risk premium

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(e) Expected maintenance expense by period compared to planned maintenance expense

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,565 | 2550 | 2091 | 2073 | 2054 | 2035 | 2016 | 1995 | 1972 | 1949 | 9352 | 8681 | 8028 | 7285 | 17093 | 38705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 3021 | 2659 | 2352 | 2088 | 1869 | 1686 | 1536 | 1410 | 1302 | 1213 | 5055 | 3814 | 2823 | 2003 | 2781 | 24416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 84.92% | 95.92% | 88.88% | 99.29% | 109.94% | 120.75% | 131.20% | 141.45% | 151.43% | 160.64% | 185.00% | 227.61% | 284.38% | 363.75% | 614.68% | 158.52% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 107,357 | 106785 | 90677 | 87629 | 84541 | 80409 | 78019 | 76390 | 75133 | 73816 | 358265 | 343714 | 324008 | 301263 | 1243491 | 1633663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 286195 | 257592 | 239733 | 239453 | 230100 | 223832 | 196990 | 178895 | 173064 | 171681 | 723817 | 567415 | 470063 | 358191 | 862562 | 3149917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 37.51% | 41.45% | 37.82% | 36.60% | 36.74% | 35.92% | 39.61% | 42.70% | 43.41% | 43.00% | 49.50% | 60.58% | 68.93% | 84.11% | 144.16% | 51.86% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 239 | 233 | 198 | 191 | 186 | 182 | 177 | 173 | 169 | 166 | 781 | 710 | 640 | 562 | 1280 | 3277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 89 | 84 | 74 | 68 | 64 | 60 | 56 | 53 | 50 | 46 | 194 | 143 | 105 | 76 | 125 | 853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 268.31% | 278.40% | 269.51% | 280.52% | 291.91% | 303.71% | 315.64% | 328.99% | 342.01% | 357.22% | 402.13% | 495.24% | 607.05% | 740.74% | 1022.52% | 384.35% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 136,029 | 126785 | 114291 | 109154 | 105137 | 101488 | 98108 | 95905 | 94249 | 92655 | 443967 | 405875 | 372022 | 339644 | 1428292 | 1962821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 504766 | 445973 | 398714 | 365976 | 341360 | 321819 | 304410 | 290828 | 279232 | 270295 | 1256777 | 961778 | 764885 | 688935 | 2092653 | 5331756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 26.95% | 28.43% | 28.67% | 29.83% | 30.80% | 31.54% | 32.23% | 32.98% | 33.75% | 34.28% | 35.33% | 42.20% | 48.64% | 49.30% | 68.25% | 36.81% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,127 | 1120 | 821 | 814 | 807 | 799 | 792 | 785 | 778 | 770 | 3731 | 3524 | 3295 | 3009 | 8015 | 15899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 34 | 30 | 27 | 24 | 22 | 21 | 21 | 20 | 20 | 20 | 96 | 91 | 85 | 75 | 160 | 416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 3323.19% | 3774.85% | 3087.74% | 3353.30% | 3597.87% | 3767.94% | 3820.86% | 3868.53% | 3893.30% | 3905.21% | 3880.48% | 3852.79% | 3885.16% | 4003.07% | 4994.90% | 3824.50% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,684 | 1300 | 437 | 201 | 33 | 7 | 7 | 7 | 6 | 6 | 28 | 24 | 21 | 18 | 44 | 3598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 3092 | 2336 | 1146 | 504 | 76 | 12 | 12 | 11 | 10 | 10 | 42 | 32 | 25 | 18 | 33 | 6971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 54.47% | 55.66% | 38.10% | 39.92% | 43.04% | 57.50% | 58.58% | 59.55% | 60.47% | 61.73% | 65.85% | 73.52% | 84.16% | 98.00% | 136.29% | 51.61% |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 24,675 | 24154 | 20437 | 19950 | 19508 | 19177 | 18943 | 18628 | 18307 | 17947 | 86073 | 80599 | 74626 | 67634 | 243939 | 374273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 74076 | 66309 | 59547 | 52995 | 47349 | 42912 | 39514 | 36293 | 33062 | 29335 | 122730 | 96262 | 76997 | 60831 | 148282 | 632912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 33.31% | 36.43% | 34.32% | 37.65% | 41.20% | 44.69% | 47.94% | 51.33% | 55.37% | 61.18% | 70.13% | 83.73% | 96.92% | 111.18% | 164.51% | 59.14% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 13,693 | 13313 | 12628 | 12311 | 12052 | 11802 | 11563 | 11353 | 11165 | 10976 | 52262 | 47565 | 41668 | 34918 | 103821 | 210787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 39971 | 35932 | 32012 | 28653 | 25799 | 23238 | 20918 | 19229 | 17891 | 16589 | 68630 | 55300 | 46485 | 36797 | 70953 | 346911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 34.26% | 37.05% | 39.45% | 42.97% | 46.72% | 50.79% | 55.28% | 59.04% | 62.41% | 66.16% | 76.15% | 86.01% | 89.64% | 94.89% | 146.32% | 60.76% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 4,121 | 3925 | 2760 | 2647 | 2538 | 2429 | 2327 | 2235 | 2145 | 2060 | 9296 | 7998 | 7091 | 6456 | 25081 | 43994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2734 | 2311 | 2044 | 1838 | 1660 | 1484 | 1356 | 1249 | 1161 | 1086 | 4495 | 3425 | 2775 | 2368 | 5761 | 22706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 150.72% | 169.87% | 135.04% | 144.00% | 152.91% | 163.69% | 171.65% | 178.92% | 184.76% | 189.66% | 206.82% | 233.52% | 255.51% | 272.63% | 435.40% | 193.76% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 23,389 | 21331 | 14610 | 13568 | 12594 | 11675 | 10907 | 10247 | 9712 | 9139 | 39178 | 30983 | 24838 | 20057 | 60950 | 190804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 22545 | 19350 | 17028 | 14975 | 13244 | 11733 | 10494 | 9446 | 8634 | 7616 | 28464 | 18924 | 12756 | 8810 | 18779 | 158304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 103.74% | 110.24% | 85.80% | 90.61% | 95.09% | 99.50% | 103.93% | 108.48% | 112.48% | 120.00% | 137.64% | 163.72% | 194.72% | 227.67% | 324.57% | 120.53% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,126 | 1965 | 1361 | 1268 | 1187 | 1117 | 1041 | 917 | 856 | 805 | 3390 | 2575 | 2104 | 1832 | 7350 | 17519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2072 | 1859 | 1677 | 1529 | 1394 | 1279 | 1146 | 895 | 803 | 732 | 2768 | 1629 | 961 | 585 | 928 | 15072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 102.63% | 105.67% | 81.17% | 82.96% | 85.13% | 87.31% | 90.77% | 102.52% | 106.71% | 109.91% | 122.50% | 158.10% | 218.80% | 313.11% | 791.76% | 116.24% |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 17,662 | 15523 | 13562 | 11964 | 10637 | 9438 | 8374 | 7484 | 6676 | 5945 | 21894 | 14076 | 9960 | 7717 | 26010 | 127057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 12836 | 10644 | 8832 | 7467 | 6205 | 5521 | 4761 | 4158 | 3607 | 3113 | 10963 | 6261 | 3680 | 2219 | 3982 | 72601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 137.60% | 145.84% | 153.56% | 160.22% | 171.44% | 170.94% | 175.86% | 179.98% | 185.07% | 191.00% | 199.70% | 224.80% | 270.67% | 347.72% | 653.21% | 175.01% |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 334,668 | 318984 | 273873 | 261770 | 251273 | 240558 | 232274 | 226117 | 221169 | 216232 | 1028215 | 946323 | 868299 | 790395 | 3165366 | 4622399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 951431 | 845078 | 763185 | 715570 | 669140 | 633597 | 581215 | 542488 | 518835 | 501736 | 2224031 | 1715076 | 1381640 | 1160908 | 3206999 | 9762835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 35.18% | 37.75% | 35.89% | 36.58% | 37.55% | 37.97% | 39.96% | 41.68% | 42.63% | 43.10% | 46.23% | 55.18% | 62.85% | 68.08% | 98.70% | 47.35% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,593 | 2598 | 2606 | 2182 | 2185 | 2187 | 2188 | 2189 | 2188 | 2185 | 10830 | 10577 | 10276 | 9814 | 26170 | 48164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 3194 | 2834 | 2545 | 2302 | 2093 | 1921 | 1778 | 1662 | 1563 | 1479 | 6479 | 5310 | 4251 | 3230 | 5098 | 30590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 99,157 | 96733 | 95975 | 82243 | 78920 | 76529 | 73761 | 71871 | 70897 | 69843 | 338515 | 325125 | 310542 | 289371 | 1159671 | 1614589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 271301 | 238751 | 215722 | 201990 | 203765 | 196666 | 198271 | 176980 | 163690 | 159454 | 715798 | 551427 | 439766 | 331316 | 741999 | 3048121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 265 | 247 | 241 | 207 | 199 | 194 | 189 | 185 | 181 | 177 | 831 | 753 | 677 | 595 | 1388 | 3677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 96 | 86 | 81 | 72 | 67 | 63 | 59 | 56 | 52 | 49 | 205 | 151 | 111 | 80 | 134 | 933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 121,376 | 111917 | 106043 | 97038 | 93782 | 91061 | 88563 | 86451 | 85174 | 83973 | 401743 | 364965 | 333265 | 305561 | 1312992 | 1842037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 399615 | 349687 | 319093 | 296060 | 278516 | 263746 | 252101 | 242282 | 234304 | 226055 | 1058447 | 839913 | 668266 | 621372 | 1957464 | 4642032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,145 | 1142 | 1138 | 846 | 840 | 833 | 826 | 819 | 812 | 804 | 3910 | 3732 | 3534 | 3342 | 9996 | 18043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 35 | 31 | 28 | 25 | 23 | 22 | 21 | 20 | 20 | 20 | 97 | 93 | 86 | 77 | 175 | 445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 1,353 | 1142 | 766 | 219 | 140 | 8 | 8 | 7 | 7 | 7 | 32 | 28 | 25 | 23 | 63 | 3554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2393 | 2026 | 1319 | 546 | 339 | 13 | 13 | 12 | 11 | 11 | 47 | 38 | 30 | 23 | 47 | 6434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 56.55% | 56.38% | 58.05% | 40.18% | 41.17% | 59.73% | 60.46% | 61.59% | 62.57% | 63.42% | 67.42% | 74.82% | 84.70% | 97.84% | 134.51% | 55.23% |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(e) Expected maintenance expense by period compared to planned maintenance expense (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years**<br>**after 30** | **Present value** |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 25,346 | 24541 | 24096 | 20840 | 20395 | 19995 | 19687 | 19462 | 19149 | 18834 | 90199 | 84615 | 78046 | 70328 | 246430 | 407740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 80239 | 71207 | 64144 | 57983 | 51739 | 46606 | 42400 | 39049 | 35912 | 32652 | 130440 | 101201 | 82707 | 64577 | 153649 | 701416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Variable life |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 13,875 | 13382 | 13034 | 12378 | 12082 | 11788 | 11562 | 11313 | 11056 | 10818 | 51014 | 45874 | 39943 | 33625 | 95028 | 217429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 44300 | 39482 | 35469 | 31577 | 28246 | 25431 | 22924 | 20587 | 18911 | 17587 | 71868 | 56508 | 47752 | 38394 | 72450 | 384945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 4,334 | 4150 | 3974 | 2861 | 2755 | 2656 | 2563 | 2468 | 2379 | 2291 | 10423 | 9069 | 8087 | 7375 | 30404 | 51652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2534 | 2236 | 1991 | 1794 | 1641 | 1507 | 1385 | 1290 | 1209 | 1143 | 4834 | 3716 | 2985 | 2521 | 6299 | 23869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 25,335 | 22122 | 20079 | 13946 | 12871 | 11873 | 11017 | 10275 | 9611 | 9037 | 38317 | 29296 | 22984 | 18327 | 55768 | 201300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 25101 | 19434 | 16474 | 14370 | 12462 | 10907 | 9659 | 8593 | 7666 | 6931 | 26339 | 16897 | 11261 | 7652 | 14682 | 155530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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% |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 2,256 | 2087 | 1940 | 1374 | 1279 | 1194 | 1121 | 1039 | 906 | 839 | 3464 | 2555 | 2047 | 1770 | 7074 | 19240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 2153 | 1934 | 1747 | 1575 | 1428 | 1303 | 1191 | 1056 | 797 | 703 | 2599 | 1458 | 829 | 505 | 899 | 15573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 18,234 | 16000 | 13939 | 12099 | 10637 | 9346 | 8231 | 7205 | 6339 | 5565 | 19901 | 12206 | 8447 | 6508 | 21896 | 126478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 12141 | 10221 | 8362 | 6955 | 5901 | 4846 | 4327 | 3692 | 3193 | 2734 | 9385 | 5153 | 2974 | 1776 | 3217 | 67648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected maintenance expense, etc. (A) | W 315,269 | 296061 | 283831 | 246233 | 236085 | 227664 | 219716 | 213284 | 208699 | 204373 | 969179 | 888795 | 817873 | 746639 | 2966880 | 4553903 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned maintenance cost (B) | 843102 | 737929 | 666975 | 615249 | 586220 | 553031 | 534129 | 495279 | 467328 | 448818 | 2026538 | 1581865 | 1261018 | 1071523 | 2956113 | 9077536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio (A/B) | 37.39% | 40.12% | 42.56% | 40.02% | 40.27% | 41.17% | 41.14% | 43.06% | 44.66% | 45.54% | 47.82% | 56.19% | 64.86% | 69.68% | 100.36% | 50.17% |

---

(\*1) Prepared for remaining coverage of underlying insurance contracts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied:

*i) Participating insurance contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5011424 | &nbsp;&nbsp;&nbsp;86389 | &nbsp;&nbsp;&nbsp;220887 | &nbsp;&nbsp;&nbsp;5318700 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(92) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(92) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(51571) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(51571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(250) |
|  |  | &nbsp;&nbsp;&nbsp;(51913) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(51913) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;33715 | &nbsp;&nbsp;&nbsp;33715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(651) | &nbsp;&nbsp;&nbsp;(651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(19629) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(19629) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;170 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;182 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(359) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(359) |
|  |  | &nbsp;&nbsp;&nbsp;352 | &nbsp;&nbsp;&nbsp;(19988) | &nbsp;&nbsp;&nbsp;33064 | &nbsp;&nbsp;&nbsp;13428 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(194236) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;194236 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;158904 | &nbsp;&nbsp;&nbsp;2507 | &nbsp;&nbsp;&nbsp;12080 | &nbsp;&nbsp;&nbsp;173491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;(172593) | &nbsp;&nbsp;&nbsp;(2103) | &nbsp;&nbsp;&nbsp;(49) | &nbsp;&nbsp;&nbsp;(174745) |
|  |  | &nbsp;&nbsp;&nbsp;(13689) | &nbsp;&nbsp;&nbsp;404 | &nbsp;&nbsp;&nbsp;12031 | &nbsp;&nbsp;&nbsp;(1254) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;52142 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;52142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(1266) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(211) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(31587) | &nbsp;&nbsp;&nbsp;(31798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(208048) | &nbsp;&nbsp;&nbsp;(208048) |
|  |  | &nbsp;&nbsp;&nbsp;50665 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(239635) | &nbsp;&nbsp;&nbsp;(188970) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;(58) | &nbsp;&nbsp;&nbsp;(4) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(62) |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4802545 | &nbsp;&nbsp;&nbsp;66801 | &nbsp;&nbsp;&nbsp;220583 | &nbsp;&nbsp;&nbsp;5089929 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*i) Participating insurance contracts (continued)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4662767 | &nbsp;&nbsp;&nbsp;20454 | &nbsp;&nbsp;&nbsp;226380 | &nbsp;&nbsp;&nbsp;4909601 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(91) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(91) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(48424) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(48424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;755 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;755 |
|  |  | &nbsp;&nbsp;&nbsp;(47760) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(47760) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;31736 | &nbsp;&nbsp;&nbsp;31736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1285) | &nbsp;&nbsp;&nbsp;(1285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;64528 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;64528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;120 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;17 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;2 | &nbsp;&nbsp;&nbsp;(50) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(48) |
|  |  | &nbsp;&nbsp;&nbsp;139 | &nbsp;&nbsp;&nbsp;64478 | &nbsp;&nbsp;&nbsp;30451 | &nbsp;&nbsp;&nbsp;95068 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(184709) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;184709 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;151824 | &nbsp;&nbsp;&nbsp;549 | &nbsp;&nbsp;&nbsp;11108 | &nbsp;&nbsp;&nbsp;163481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;372888 | &nbsp;&nbsp;&nbsp;912 | &nbsp;&nbsp;&nbsp;196 | &nbsp;&nbsp;&nbsp;373996 |
|  |  | &nbsp;&nbsp;&nbsp;524712 | &nbsp;&nbsp;&nbsp;1461 | &nbsp;&nbsp;&nbsp;11304 | &nbsp;&nbsp;&nbsp;537477 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;57374 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;57374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(925) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(178) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(29542) | &nbsp;&nbsp;&nbsp;(29720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(202415) | &nbsp;&nbsp;&nbsp;(202415) |
|  |  | &nbsp;&nbsp;&nbsp;56271 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(231957) | &nbsp;&nbsp;&nbsp;(175686) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;4 | &nbsp;&nbsp;&nbsp;(4) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5011424 | &nbsp;&nbsp;&nbsp;86389 | &nbsp;&nbsp;&nbsp;220887 | &nbsp;&nbsp;&nbsp;5318700 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;36230539 | &nbsp;&nbsp;&nbsp;366986 | &nbsp;&nbsp;&nbsp;1532152 | &nbsp;&nbsp;&nbsp;38129677 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(380467) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(380467) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(1459586) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1459586) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(1030287) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1030287) |
|  |  | &nbsp;&nbsp;&nbsp;(2870340) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(2870340) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1731614 | &nbsp;&nbsp;&nbsp;1731614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(22591) | &nbsp;&nbsp;&nbsp;(22591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;75173 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;75173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;392104 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;392104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;(12194) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(12194) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;94 | &nbsp;&nbsp;&nbsp;(14619) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(14525) |
|  |  | &nbsp;&nbsp;&nbsp;380004 | &nbsp;&nbsp;&nbsp;60554 | &nbsp;&nbsp;&nbsp;1709023 | &nbsp;&nbsp;&nbsp;2149581 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(3497168) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3497168 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;1290850 | &nbsp;&nbsp;&nbsp;1995 | &nbsp;&nbsp;&nbsp;48205 | &nbsp;&nbsp;&nbsp;1341050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;(1632541) | &nbsp;&nbsp;&nbsp;(831) | &nbsp;&nbsp;&nbsp;563 | &nbsp;&nbsp;&nbsp;(1632809) |
|  |  | &nbsp;&nbsp;&nbsp;(341691) | &nbsp;&nbsp;&nbsp;1164 | &nbsp;&nbsp;&nbsp;48768 | &nbsp;&nbsp;&nbsp;(291759) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;7185885 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7185885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(2027635) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(2027635) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(95) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1647704) | &nbsp;&nbsp;&nbsp;(1647799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(3620450) | &nbsp;&nbsp;&nbsp;(3620450) |
|  |  | &nbsp;&nbsp;&nbsp;5158155 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(5268154) | &nbsp;&nbsp;&nbsp;(109999) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;(1) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;35059500 | &nbsp;&nbsp;&nbsp;428703 | &nbsp;&nbsp;&nbsp;1518957 | &nbsp;&nbsp;&nbsp;37007160 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts (continued)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;33481728 | &nbsp;&nbsp;&nbsp;370349 | &nbsp;&nbsp;&nbsp;1541678 | &nbsp;&nbsp;&nbsp;35393755 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(442542) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(442542) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(1490048) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1490048) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(708722) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(708722) |
|  |  | &nbsp;&nbsp;&nbsp;(2641312) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(2641312) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1525276 | &nbsp;&nbsp;&nbsp;1525276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;27232 | &nbsp;&nbsp;&nbsp;27232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7313 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;329281 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;329281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;(31740) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(31740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;148 | &nbsp;&nbsp;&nbsp;(16487) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(16339) |
|  |  | &nbsp;&nbsp;&nbsp;297689 | &nbsp;&nbsp;&nbsp;(9174) | &nbsp;&nbsp;&nbsp;1552508 | &nbsp;&nbsp;&nbsp;1841023 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(3665607) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3665607 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;1314876 | &nbsp;&nbsp;&nbsp;2413 | &nbsp;&nbsp;&nbsp;52020 | &nbsp;&nbsp;&nbsp;1369309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;2766489 | &nbsp;&nbsp;&nbsp;3398 | &nbsp;&nbsp;&nbsp;2964 | &nbsp;&nbsp;&nbsp;2772851 |
|  |  | &nbsp;&nbsp;&nbsp;4081365 | &nbsp;&nbsp;&nbsp;5811 | &nbsp;&nbsp;&nbsp;54984 | &nbsp;&nbsp;&nbsp;4142160 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;6232497 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6232497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(1555691) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1555691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;(130) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1467210) | &nbsp;&nbsp;&nbsp;(1467340) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(3815415) | &nbsp;&nbsp;&nbsp;(3815415) |
|  |  | &nbsp;&nbsp;&nbsp;4676676 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(5282625) | &nbsp;&nbsp;&nbsp;(605949) |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;36230539 | &nbsp;&nbsp;&nbsp;366986 | &nbsp;&nbsp;&nbsp;1532152 | &nbsp;&nbsp;&nbsp;38129677 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4862460 | &nbsp;&nbsp;&nbsp;46566 | &nbsp;&nbsp;&nbsp;61828 | &nbsp;&nbsp;&nbsp;4970854 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(22103) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(22103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(113995) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(113995) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(12316) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(12316) |
|  |  | &nbsp;&nbsp;&nbsp;(148414) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(148414) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;96201 | &nbsp;&nbsp;&nbsp;96201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(4570) | &nbsp;&nbsp;&nbsp;(4570) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6286 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;18318 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;18318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;1529 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(148) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(148) |
|  |  | &nbsp;&nbsp;&nbsp;19847 | &nbsp;&nbsp;&nbsp;6138 | &nbsp;&nbsp;&nbsp;91631 | &nbsp;&nbsp;&nbsp;117616 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(865625) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;865625 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;1268980 | &nbsp;&nbsp;&nbsp;898 | &nbsp;&nbsp;&nbsp;1711 | &nbsp;&nbsp;&nbsp;1271589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;39072 | &nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;(1) | &nbsp;&nbsp;&nbsp;39084 |
|  |  | &nbsp;&nbsp;&nbsp;1308052 | &nbsp;&nbsp;&nbsp;911 | &nbsp;&nbsp;&nbsp;1710 | &nbsp;&nbsp;&nbsp;1310673 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;540714 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;540714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(19172) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(19172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(93228) | &nbsp;&nbsp;&nbsp;(93228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(864661) | &nbsp;&nbsp;&nbsp;(864661) |
|  |  | &nbsp;&nbsp;&nbsp;521542 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(957889) | &nbsp;&nbsp;&nbsp;(436347) |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5697862 | &nbsp;&nbsp;&nbsp;53615 | &nbsp;&nbsp;&nbsp;62905 | &nbsp;&nbsp;&nbsp;5814382 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(f) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts (continued)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for remaining coverage** | **Liability for incurred claims** | **Total** |
|  |  | **Excluding loss component** | **Loss component** | **Liability for incurred claims** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5122793 | &nbsp;&nbsp;&nbsp;42765 | &nbsp;&nbsp;&nbsp;59840 | &nbsp;&nbsp;&nbsp;5225398 |
| &nbsp;&nbsp;&nbsp;**Insurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the modified retrospective approach |  | &nbsp;&nbsp;&nbsp;(26917) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(26917) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts under the fair value approach |  | &nbsp;&nbsp;&nbsp;(120696) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(120696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts after transition |  | &nbsp;&nbsp;&nbsp;(10175) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(10175) |
|  |  | &nbsp;&nbsp;&nbsp;(157788) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(157788) |
| &nbsp;&nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;106897 | &nbsp;&nbsp;&nbsp;106897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1866 | &nbsp;&nbsp;&nbsp;1866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3203 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;19328 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;357 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;45 | &nbsp;&nbsp;&nbsp;(145) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(100) |
|  |  | &nbsp;&nbsp;&nbsp;19730 | &nbsp;&nbsp;&nbsp;3058 | &nbsp;&nbsp;&nbsp;108763 | &nbsp;&nbsp;&nbsp;131551 |
| &nbsp;&nbsp;&nbsp;**Investment components and premium refunds** |  | &nbsp;&nbsp;&nbsp;(919411) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;919411 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;&nbsp;171443 | &nbsp;&nbsp;&nbsp;399 | &nbsp;&nbsp;&nbsp;798 | &nbsp;&nbsp;&nbsp;172640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;&nbsp;50220 | &nbsp;&nbsp;&nbsp;345 | &nbsp;&nbsp;&nbsp;144 | &nbsp;&nbsp;&nbsp;50709 |
|  |  | &nbsp;&nbsp;&nbsp;221663 | &nbsp;&nbsp;&nbsp;744 | &nbsp;&nbsp;&nbsp;942 | &nbsp;&nbsp;&nbsp;223349 |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | &nbsp;&nbsp;&nbsp;591193 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;591193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;(15721) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(15721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(103796) | &nbsp;&nbsp;&nbsp;(103796) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(923332) | &nbsp;&nbsp;&nbsp;(923332) |
|  |  | &nbsp;&nbsp;&nbsp;575472 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1027128) | &nbsp;&nbsp;&nbsp;(451656) |
| &nbsp;&nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;(1) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;4862460 | &nbsp;&nbsp;&nbsp;46566 | &nbsp;&nbsp;&nbsp;61828 | &nbsp;&nbsp;&nbsp;4970854 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Liability for remaining coverage** | **Liability for incurred claims** | **Liability for incurred claims** |  |
|  |  | **Liability for remaining coverage** | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Total** |
| **Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 171 | 237 | 11 | 419 |
| **Insurance revenue** |  | (1199) | - | - | (1199) |
| &nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses  |  | 537 | 1009 | 6 | 1552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | - | (96) | (9) | (105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | 742 | - | - | 742 |
|  |  | 1279 | 913 | (3) | 2189 |
| &nbsp;&nbsp;**Investment components and premium refunds** |  | (223) | 223 | - | - |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | - | 8 | - | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | - | (1) | - | (1) |
|  |  | - | 7 | - | 7 |
| **Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | 1385 | - | - | 1385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | (537) | - | - | (537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | - | (892) | - | (892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | - | (220) | - | (220) |
|  |  | 848 | (1112) | - | (264) |
| **Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 876 | 268 | 8 | 1152 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(g) Reconciliation from the opening to the closing balances of the liability for remaining coverage and the liability for incurred claims is as follows – Contracts measured under the premium allocation approach: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Liability for remaining coverage** | **Liability for incurred claims** | **Liability for incurred claims** |  |
|  |  | **Liability for remaining coverage** | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Total** |
| **Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 98 | 127 | 7 | 232 |
| **Insurance revenue** |  | (445) | - | - | (445) |
| &nbsp;&nbsp;**Insurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses  |  | 44 | 1212 | 9 | 1265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | - | 52 | (5) | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and reversals of losses on onerous contracts |  | 54 | - | - | 54 |
|  |  | 98 | 1264 | 4 | 1366 |
| &nbsp;&nbsp;**Investment components and premium refunds** |  | (2) | 2 | - | - |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | - | 6 | - | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | - | 1 | - | 1 |
|  |  | - | 7 | - | 7 |
| **Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received |  | 467 | - | - | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | (45) | - | - | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | - | (1161) | - | (1161) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | - | (2) | - | (2) |
|  |  | 422 | (1163) | - | (741) |
| **Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | W | 171 | 237 | 11 | 419 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied:

*i) Participating insurance contracts*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;5179009 | &nbsp;&nbsp;21157 | &nbsp;&nbsp;134 | &nbsp;&nbsp;117952 | &nbsp;&nbsp;448 | &nbsp;&nbsp;118534 | &nbsp;&nbsp;5318700 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;(20115) | &nbsp;&nbsp;(479) | &nbsp;&nbsp;90 | &nbsp;&nbsp;20537 | &nbsp;&nbsp;(33) | &nbsp;&nbsp;20594 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;(22873) | &nbsp;&nbsp;(928) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(23801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;4140 | &nbsp;&nbsp;30 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1 | &nbsp;&nbsp;1 | &nbsp;&nbsp;4171 |
|  |  | &nbsp;&nbsp;(38848) | &nbsp;&nbsp;(1377) | &nbsp;&nbsp;90 | &nbsp;&nbsp;20537 | &nbsp;&nbsp;(32) | &nbsp;&nbsp;20595 | &nbsp;&nbsp;(19630) |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(11) | &nbsp;&nbsp;(12072) | &nbsp;&nbsp;(18) | &nbsp;&nbsp;(12101) | &nbsp;&nbsp;(12101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(719) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(719) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(5385) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(5385) |
|  |  | &nbsp;&nbsp;(5385) | &nbsp;&nbsp;(719) | &nbsp;&nbsp;(11) | &nbsp;&nbsp;(12072) | &nbsp;&nbsp;(18) | &nbsp;&nbsp;(12101) | &nbsp;&nbsp;(18205) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(514) | &nbsp;&nbsp;(138) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(652) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;168947 | &nbsp;&nbsp;706 | &nbsp;&nbsp;4 | &nbsp;&nbsp;3816 | &nbsp;&nbsp;18 | &nbsp;&nbsp;3838 | &nbsp;&nbsp;173491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;(174355) | &nbsp;&nbsp;(390) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(174745) |
|  |  | &nbsp;&nbsp;(5408) | &nbsp;&nbsp;316 | &nbsp;&nbsp;4 | &nbsp;&nbsp;3816 | &nbsp;&nbsp;18 | &nbsp;&nbsp;3838 | &nbsp;&nbsp;(1254) |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;52142 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;52142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(1266) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(31798) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(31798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(208048) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(208048) |
|  |  | &nbsp;&nbsp;(188970) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(188970) |
| &nbsp;&nbsp;**Other changes** |  | &nbsp;&nbsp;(62) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(62) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;4939822 | &nbsp;&nbsp;19239 | &nbsp;&nbsp;217 | &nbsp;&nbsp;130233 | &nbsp;&nbsp;416 | &nbsp;&nbsp;130866 | &nbsp;&nbsp;5089927 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*i) Participating insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4801491 | &nbsp;&nbsp;19796 | &nbsp;&nbsp;- | &nbsp;&nbsp;88060 | &nbsp;&nbsp;254 | &nbsp;&nbsp;88314 | &nbsp;&nbsp;4909601 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;(36247) | &nbsp;&nbsp;(310) | &nbsp;&nbsp;136 | &nbsp;&nbsp;37086 | &nbsp;&nbsp;(665) | &nbsp;&nbsp;36557 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;63717 | &nbsp;&nbsp;153 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;63870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(548) | &nbsp;&nbsp;16 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1190 | &nbsp;&nbsp;1190 | &nbsp;&nbsp;658 |
|  |  | &nbsp;&nbsp;26922 | &nbsp;&nbsp;(141) | &nbsp;&nbsp;136 | &nbsp;&nbsp;37086 | &nbsp;&nbsp;525 | &nbsp;&nbsp;37747 | &nbsp;&nbsp;64528 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3) | &nbsp;&nbsp;(10506) | &nbsp;&nbsp;(358) | &nbsp;&nbsp;(10867) | &nbsp;&nbsp;(10867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(578) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(578) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(4489) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4489) |
|  |  | &nbsp;&nbsp;(4489) | &nbsp;&nbsp;(578) | &nbsp;&nbsp;(3) | &nbsp;&nbsp;(10506) | &nbsp;&nbsp;(358) | &nbsp;&nbsp;(10867) | &nbsp;&nbsp;(15934) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(1030) | &nbsp;&nbsp;(256) |  |  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(1286) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;159428 | &nbsp;&nbsp;713 | &nbsp;&nbsp;1 | &nbsp;&nbsp;3312 | &nbsp;&nbsp;27 | &nbsp;&nbsp;3340 | &nbsp;&nbsp;163481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;372373 | &nbsp;&nbsp;1623 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;373996 |
|  |  | &nbsp;&nbsp;531801 | &nbsp;&nbsp;2336 | &nbsp;&nbsp;1 | &nbsp;&nbsp;3312 | &nbsp;&nbsp;27 | &nbsp;&nbsp;3340 | &nbsp;&nbsp;537477 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;57374 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;57374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(925) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(29720) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(29720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(202415) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(202415) |
|  |  | &nbsp;&nbsp;(175686) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(175686) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;5179009 | &nbsp;&nbsp;21157 | &nbsp;&nbsp;134 | &nbsp;&nbsp;117952 | &nbsp;&nbsp;448 | &nbsp;&nbsp;118534 | &nbsp;&nbsp;5318700 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;29911930 | &nbsp;&nbsp;1248075 | &nbsp;&nbsp;1586732 | &nbsp;&nbsp;3363834 | &nbsp;&nbsp;2019106 | &nbsp;&nbsp;6969672 | &nbsp;&nbsp;38129677 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;986146 | &nbsp;&nbsp;(18155) | &nbsp;&nbsp;(117466) | &nbsp;&nbsp;(218544) | &nbsp;&nbsp;(631981) | &nbsp;&nbsp;(967991) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;49807 | &nbsp;&nbsp;404 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;50211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(1839501) | &nbsp;&nbsp;222677 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1641786 | &nbsp;&nbsp;1641786 | &nbsp;&nbsp;24962 |
|  |  | &nbsp;&nbsp;(803548) | &nbsp;&nbsp;204926 | &nbsp;&nbsp;(117466) | &nbsp;&nbsp;(218544) | &nbsp;&nbsp;1009805 | &nbsp;&nbsp;673795 | &nbsp;&nbsp;75173 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(120405) | &nbsp;&nbsp;(283855) | &nbsp;&nbsp;(298804) | &nbsp;&nbsp;(703064) | &nbsp;&nbsp;(703064) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(162621) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(162621) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;92346 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;92346 |
|  |  | &nbsp;&nbsp;92346 | &nbsp;&nbsp;(162621) | &nbsp;&nbsp;(120405) | &nbsp;&nbsp;(283855) | &nbsp;&nbsp;(298804) | &nbsp;&nbsp;(703064) | &nbsp;&nbsp;(773339) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(12447) | &nbsp;&nbsp;(10144) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(22591) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;1034946 | &nbsp;&nbsp;46857 | &nbsp;&nbsp;48768 | &nbsp;&nbsp;103395 | &nbsp;&nbsp;107084 | &nbsp;&nbsp;259247 | &nbsp;&nbsp;1341050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;(1605723) | &nbsp;&nbsp;(27086) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1632809) |
|  |  | &nbsp;&nbsp;(570777) | &nbsp;&nbsp;19771 | &nbsp;&nbsp;48768 | &nbsp;&nbsp;103395 | &nbsp;&nbsp;107084 | &nbsp;&nbsp;259247 | &nbsp;&nbsp;(291759) |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;7185885 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;7185885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(2027635) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2027635) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(1647799) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1647799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(3620450) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3620450) |
|  |  | &nbsp;&nbsp;(109999) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(109999) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;28507505 | &nbsp;&nbsp;1300007 | &nbsp;&nbsp;1397629 | &nbsp;&nbsp;2964830 | &nbsp;&nbsp;2837191 | &nbsp;&nbsp;7199650 | &nbsp;&nbsp;37007162 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*ii) Non-participating insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;27615210 | &nbsp;&nbsp;1048154 | &nbsp;&nbsp;1836357 | &nbsp;&nbsp;3609317 | &nbsp;&nbsp;1284717 | &nbsp;&nbsp;6730391 | &nbsp;&nbsp;35393755 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;483990 | &nbsp;&nbsp;90007 | &nbsp;&nbsp;(153114) | &nbsp;&nbsp;(53831) | &nbsp;&nbsp;(367052) | &nbsp;&nbsp;(573997) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;(16132) | &nbsp;&nbsp;(675) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(16807) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(1391522) | &nbsp;&nbsp;155953 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1259688 | &nbsp;&nbsp;1259688 | &nbsp;&nbsp;24119 |
|  |  | &nbsp;&nbsp;(923664) | &nbsp;&nbsp;245285 | &nbsp;&nbsp;(153114) | &nbsp;&nbsp;(53831) | &nbsp;&nbsp;892636 | &nbsp;&nbsp;685691 | &nbsp;&nbsp;7312 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(152482) | &nbsp;&nbsp;(301035) | &nbsp;&nbsp;(239556) | &nbsp;&nbsp;(693073) | &nbsp;&nbsp;(693073) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(110733) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(110733) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(31028) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(31028) |
|  |  | &nbsp;&nbsp;(31028) | &nbsp;&nbsp;(110733) | &nbsp;&nbsp;(152482) | &nbsp;&nbsp;(301035) | &nbsp;&nbsp;(239556) | &nbsp;&nbsp;(693073) | &nbsp;&nbsp;(834834) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;41891 | &nbsp;&nbsp;(14659) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;27232 |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;1083426 | &nbsp;&nbsp;39221 | &nbsp;&nbsp;55971 | &nbsp;&nbsp;109383 | &nbsp;&nbsp;81309 | &nbsp;&nbsp;246663 | &nbsp;&nbsp;1369310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;2732044 | &nbsp;&nbsp;40807 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;2772851 |
|  |  | &nbsp;&nbsp;3815470 | &nbsp;&nbsp;80028 | &nbsp;&nbsp;55971 | &nbsp;&nbsp;109383 | &nbsp;&nbsp;81309 | &nbsp;&nbsp;246663 | &nbsp;&nbsp;4142161 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;6232497 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;6232497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(1555691) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1555691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(1467340) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1467340) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(3815415) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3815415) |
|  |  | &nbsp;&nbsp;(605949) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(605949) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;29911930 | &nbsp;&nbsp;1248075 | &nbsp;&nbsp;1586732 | &nbsp;&nbsp;3363834 | &nbsp;&nbsp;2019106 | &nbsp;&nbsp;6969672 | &nbsp;&nbsp;38129677 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4758088 | &nbsp;&nbsp;76857 | &nbsp;&nbsp;48135 | &nbsp;&nbsp;65638 | &nbsp;&nbsp;22136 | &nbsp;&nbsp;135909 | &nbsp;&nbsp;4970854 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;(105882) | &nbsp;&nbsp;5500 | &nbsp;&nbsp;(1954) | &nbsp;&nbsp;101442 | &nbsp;&nbsp;894 | &nbsp;&nbsp;100382 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;6958 | &nbsp;&nbsp;(778) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;6180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(5026) | &nbsp;&nbsp;922 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4211 | &nbsp;&nbsp;4211 | &nbsp;&nbsp;107 |
|  |  | &nbsp;&nbsp;(103950) | &nbsp;&nbsp;5644 | &nbsp;&nbsp;(1954) | &nbsp;&nbsp;101442 | &nbsp;&nbsp;5105 | &nbsp;&nbsp;104593 | &nbsp;&nbsp;6287 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4379) | &nbsp;&nbsp;(12925) | &nbsp;&nbsp;(2760) | &nbsp;&nbsp;(20064) | &nbsp;&nbsp;(20064) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(9219) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(9219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;(3233) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(3233) |
|  |  | &nbsp;&nbsp;(3233) | &nbsp;&nbsp;(9219) | &nbsp;&nbsp;(4379) | &nbsp;&nbsp;(12925) | &nbsp;&nbsp;(2760) | &nbsp;&nbsp;(20064) | &nbsp;&nbsp;(32516) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;(3735) | &nbsp;&nbsp;(834) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4569) |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;1260720 | &nbsp;&nbsp;8089 | &nbsp;&nbsp;1178 | &nbsp;&nbsp;1323 | &nbsp;&nbsp;279 | &nbsp;&nbsp;2780 | &nbsp;&nbsp;1271589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;41282 | &nbsp;&nbsp;(2198) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;39084 |
|  |  | &nbsp;&nbsp;1302002 | &nbsp;&nbsp;5891 | &nbsp;&nbsp;1178 | &nbsp;&nbsp;1323 | &nbsp;&nbsp;279 | &nbsp;&nbsp;2780 | &nbsp;&nbsp;1310673 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;540714 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;540714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(19172) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(19172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(93228) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(93228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(864661) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(864661) |
|  |  | &nbsp;&nbsp;(436347) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(436347) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;5512825 | &nbsp;&nbsp;78339 | &nbsp;&nbsp;42980 | &nbsp;&nbsp;155478 | &nbsp;&nbsp;24760 | &nbsp;&nbsp;223218 | &nbsp;&nbsp;5814382 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(h) Reconciliation from the opening to the closing balances of insurance contract liability analyzed by components is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

*iii) Variable insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** | &nbsp;&nbsp;**Contractual service margin (CSM)** |  |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Insurance contracts under modified retrospective approach** | &nbsp;&nbsp;**Insurance contracts under fair value approach** | &nbsp;&nbsp;**Insurance contracts after transition** | &nbsp;&nbsp;**Subtotal** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities  | &nbsp;&nbsp;W | &nbsp;&nbsp;4791795 | &nbsp;&nbsp;83584 | &nbsp;&nbsp;70136 | &nbsp;&nbsp;255953 | &nbsp;&nbsp;23930 | &nbsp;&nbsp;350019 | &nbsp;&nbsp;5225398 |
| &nbsp;&nbsp;**Changes that relate to future service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | &nbsp;&nbsp;193392 | &nbsp;&nbsp;1639 | &nbsp;&nbsp;(17689) | &nbsp;&nbsp;(174128) | &nbsp;&nbsp;(3215) | &nbsp;&nbsp;(195032) | &nbsp;&nbsp;(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that do not adjust the CSM |  | &nbsp;&nbsp;3203 | &nbsp;&nbsp;(15) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | &nbsp;&nbsp;(4412) | &nbsp;&nbsp;622 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;3805 | &nbsp;&nbsp;3805 | &nbsp;&nbsp;15 |
|  |  | &nbsp;&nbsp;192183 | &nbsp;&nbsp;2246 | &nbsp;&nbsp;(17689) | &nbsp;&nbsp;(174128) | &nbsp;&nbsp;590 | &nbsp;&nbsp;(191227) | &nbsp;&nbsp;3202 |
| &nbsp;&nbsp;**Changes that relate to current service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services provided |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(5913) | &nbsp;&nbsp;(20029) | &nbsp;&nbsp;(2770) | &nbsp;&nbsp;(28712) | &nbsp;&nbsp;(28712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(7828) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(7828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | &nbsp;&nbsp;5235 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5235 |
|  |  | &nbsp;&nbsp;5235 | &nbsp;&nbsp;(7828) | &nbsp;&nbsp;(5913) | &nbsp;&nbsp;(20029) | &nbsp;&nbsp;(2770) | &nbsp;&nbsp;(28712) | &nbsp;&nbsp;(31305) |
| &nbsp;&nbsp;**Changes that relate to past service:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to liabilities for incurred claims |  | &nbsp;&nbsp;3105 | &nbsp;&nbsp;(1239) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1866 |
| &nbsp;&nbsp;**Insurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | &nbsp;&nbsp;165146 | &nbsp;&nbsp;1665 | &nbsp;&nbsp;1601 | &nbsp;&nbsp;3842 | &nbsp;&nbsp;386 | &nbsp;&nbsp;5829 | &nbsp;&nbsp;172640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | &nbsp;&nbsp;52280 | &nbsp;&nbsp;(1571) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;50709 |
|  |  | &nbsp;&nbsp;217426 | &nbsp;&nbsp;94 | &nbsp;&nbsp;1601 | &nbsp;&nbsp;3842 | &nbsp;&nbsp;386 | &nbsp;&nbsp;5829 | &nbsp;&nbsp;223349 |
| &nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums received  |  | &nbsp;&nbsp;591193 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;591193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows |  | &nbsp;&nbsp;(15721) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(15721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims and other insurance service expenses paid |  | &nbsp;&nbsp;(103796) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(103796) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received (paid) and premium refunds |  | &nbsp;&nbsp;(923332) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(923332) |
|  |  | &nbsp;&nbsp;(451656) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(451656) |
| &nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;W | &nbsp;&nbsp;4758088 | &nbsp;&nbsp;76857 | &nbsp;&nbsp;48135 | &nbsp;&nbsp;65638 | &nbsp;&nbsp;22136 | &nbsp;&nbsp;135909 | &nbsp;&nbsp;4970854 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** |
| &nbsp;&nbsp;**Changes that relate to future service** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**New contracts** | &nbsp;&nbsp;W | &nbsp;&nbsp;(1840387) | &nbsp;&nbsp;223629 | &nbsp;&nbsp;1645998 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Contracts other than new contracts** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in assumptions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lapse rates (\*) |  | &nbsp;&nbsp;494068 | &nbsp;&nbsp;- | &nbsp;&nbsp;(472651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk rates |  | &nbsp;&nbsp;377457 | &nbsp;&nbsp;- | &nbsp;&nbsp;(380902) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense ratio |  | &nbsp;&nbsp;(150236) | &nbsp;&nbsp;- | &nbsp;&nbsp;157884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assumption |  | &nbsp;&nbsp;(123488) | &nbsp;&nbsp;- | &nbsp;&nbsp;119033 |
|  |  | &nbsp;&nbsp;597801 | &nbsp;&nbsp;- | &nbsp;&nbsp;(576636) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantity changes and differences between expected and actual investment component |  | &nbsp;&nbsp;296240 | &nbsp;&nbsp;(14436) | &nbsp;&nbsp;(302970) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss component |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;32591 |
|  |  | &nbsp;&nbsp;894041 | &nbsp;&nbsp;(14436) | &nbsp;&nbsp;(847015) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(946346) | &nbsp;&nbsp;209193 | &nbsp;&nbsp;798983 |

---

(\*) Included the effect of assumption changes in renewal rate.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash flows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** |
| &nbsp;&nbsp;**Changes that relate to future service** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**New contracts** | &nbsp;&nbsp;W | &nbsp;&nbsp;(1396481) | &nbsp;&nbsp;156592 | &nbsp;&nbsp;1264682 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Contracts other than new contracts** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in assumptions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lapse rates (\*) |  | &nbsp;&nbsp;282107 | &nbsp;&nbsp;- | &nbsp;&nbsp;(408712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk rates |  | &nbsp;&nbsp;(468866) | &nbsp;&nbsp;- | &nbsp;&nbsp;455092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense ratio |  | &nbsp;&nbsp;(245474) | &nbsp;&nbsp;- | &nbsp;&nbsp;258604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assumption |  | &nbsp;&nbsp;219456 | &nbsp;&nbsp;- | &nbsp;&nbsp;(217764) |
|  |  | &nbsp;&nbsp;(212777) | &nbsp;&nbsp;- | &nbsp;&nbsp;87220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantity changes and differences between expected and actual investment component |  | &nbsp;&nbsp;904700 | &nbsp;&nbsp;90800 | &nbsp;&nbsp;(869943) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss component |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;50251 |
|  |  | &nbsp;&nbsp;691923 | &nbsp;&nbsp;90800 | &nbsp;&nbsp;(732472) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(704558) | &nbsp;&nbsp;247392 | &nbsp;&nbsp;532210 |

---

(\*) Included the effect of assumption changes in renewal rate.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(j) An analysis of insurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Other than insurance acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition cash flows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Insurance contract initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than onerous group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;7191800 | &nbsp;&nbsp;2052884 | &nbsp;&nbsp;(11106197) | &nbsp;&nbsp;215515 | &nbsp;&nbsp;1645998 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Onerous group of contracts |  | &nbsp;&nbsp;729976 | &nbsp;&nbsp;94906 | &nbsp;&nbsp;(803757) | &nbsp;&nbsp;8115 | &nbsp;&nbsp;- | &nbsp;&nbsp;29240 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;7921776 | &nbsp;&nbsp;2147790 | &nbsp;&nbsp;(11909954) | &nbsp;&nbsp;223630 | &nbsp;&nbsp;1645998 | &nbsp;&nbsp;29240 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash outflows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**Other than insurance acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition cash flows** | &nbsp;&nbsp;**Estimates of present value of future cash inflows** | &nbsp;&nbsp;**Risk adjustment for non-financial risk** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Insurance contract initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than onerous group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;5647687 | &nbsp;&nbsp;1721959 | &nbsp;&nbsp;(8781997) | &nbsp;&nbsp;147669 | &nbsp;&nbsp;1264682 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Onerous group of contracts |  | &nbsp;&nbsp;730338 | &nbsp;&nbsp;110425 | &nbsp;&nbsp;(824893) | &nbsp;&nbsp;8923 | &nbsp;&nbsp;- | &nbsp;&nbsp;24793 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;6378025 | &nbsp;&nbsp;1832384 | &nbsp;&nbsp;(9606890) | &nbsp;&nbsp;156592 | &nbsp;&nbsp;1264682 | &nbsp;&nbsp;24793 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life W | 2159 | 2102 | 2047 | 1993 | 1939 | 1886 | 1833 | 1780 | 1726 | 1671 | 7536 | 6203 | 4909 | 3670 | 5332 | 46786 |
| &nbsp;&nbsp;&nbsp;Non-participating life | 138518 | 116405 | 105133 | 95417 | 76878 | 64343 | 59939 | 57763 | 55104 | 53144 | 254224 | 239138 | 222475 | 200738 | 740557 | 2479776 |
| &nbsp;&nbsp;&nbsp;Participating health | 316 | 303 | 270 | 252 | 237 | 222 | 207 | 193 | 180 | 167 | 664 | 442 | 299 | 204 | 334 | 4290 |
| &nbsp;&nbsp;&nbsp;Non-participating health | 158141 | 139399 | 125423 | 115060 | 106710 | 99425 | 93104 | 88515 | 85071 | 81713 | 374626 | 327428 | 278419 | 233950 | 788124 | 3095108 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 13 | 14 | 13 | 11 | 15 | 86 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | 1 | 1 | 1 | - | - | - | - | - | - | - | - | - | - | - | - | 3 |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life | 23889 | 21543 | 19984 | 18713 | 17753 | 17123 | 16651 | 16253 | 15891 | 15533 | 72685 | 63642 | 54208 | 44341 | 113476 | 531685 |
| &nbsp;&nbsp;&nbsp;Variable life | 4962 | 4463 | 4067 | 3745 | 3476 | 3263 | 3089 | 2948 | 2818 | 2701 | 12043 | 10031 | 8536 | 7068 | 16808 | 90018 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | 6455 | 6101 | 5776 | 5470 | 5196 | 4914 | 4611 | 4309 | 3990 | 3653 | 13780 | 7889 | 4052 | 1908 | 1599 | 79703 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | 79885 | 72322 | 66478 | 61576 | 56940 | 52137 | 47682 | 43910 | 40959 | 38264 | 153778 | 102795 | 65250 | 37385 | 41763 | 961124 |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings | 13122 | 12193 | 10812 | 9109 | 8281 | 7697 | 7095 | 6226 | 5697 | 5213 | 19313 | 11359 | 6641 | 3844 | 5354 | 131956 |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings | 14073 | 12571 | 11175 | 9984 | 8979 | 8092 | 7274 | 6507 | 5810 | 5170 | 18472 | 10272 | 5615 | 3150 | 6057 | 133201 |
| **Subtotal** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating | 8932 | 8508 | 8095 | 7717 | 7374 | 7024 | 6653 | 6284 | 5898 | 5493 | 21993 | 14548 | 9273 | 5793 | 7280 | 130865 |
| &nbsp;&nbsp;&nbsp;Non-participating | 413556 | 361863 | 327831 | 299875 | 266562 | 240725 | 224471 | 212667 | 202722 | 193867 | 874626 | 744362 | 626993 | 520258 | 1689274 | 7199652 |
| &nbsp;&nbsp;&nbsp;Variable | 19035 | 17034 | 15242 | 13729 | 12455 | 11355 | 10363 | 9455 | 8628 | 7871 | 30515 | 20303 | 14151 | 10218 | 22865 | 223219 |
| &nbsp;&nbsp;&nbsp; W | 441523 | 387405 | 351168 | 321321 | 286391 | 259104 | 241487 | 228406 | 217248 | 207231 | 927134 | 779213 | 650417 | 536269 | 1719419 | 7553736 |

---

(\*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(k) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Contracts other than those to which the premium allocation approach has been applied: (continued)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** | **Year 7** | **Year 8** | **Year 9** | **Year 10** | **Years**<br>**11 to 15** | **Years**<br>**16 to 20** | **Years**<br>**21 to 25** | **Years**<br>**26 to 30** | **Years after 30** | **Present value** |
| **Non-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating life W | 1394 | 1371 | 1353 | 1335 | 1319 | 1302 | 1284 | 1267 | 1248 | 1228 | 5797 | 5142 | 4385 | 3513 | 5881 | 37819 |
| &nbsp;&nbsp;&nbsp;Non-participating life | 146158 | 113142 | 98478 | 92353 | 85653 | 71086 | 64984 | 61958 | 59767 | 57531 | 266426 | 238326 | 213323 | 188762 | 637458 | 2395405 |
| &nbsp;&nbsp;&nbsp;Participating health | 219 | 201 | 192 | 172 | 160 | 151 | 141 | 132 | 123 | 115 | 458 | 305 | 205 | 138 | 227 | 2939 |
| &nbsp;&nbsp;&nbsp;Non-participating health | 149426 | 128389 | 116171 | 107018 | 99772 | 93738 | 88315 | 84043 | 81035 | 78467 | 360018 | 315262 | 271990 | 230536 | 800299 | 3004479 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | (4) | (4) | (4) | (4) | (4) | (4) | (4) | (5) | (5) | 1 | 24 | 26 | 25 | 22 | 30 | 90 |
| **Indirect-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-participating life | 28751 | 23816 | 21373 | 19647 | 18378 | 17490 | 16867 | 16375 | 15966 | 15614 | 73223 | 64547 | 55322 | 45703 | 118706 | 551778 |
| &nbsp;&nbsp;&nbsp;Variable life | 5245 | 4498 | 4043 | 3691 | 3398 | 3148 | 2948 | 2784 | 2652 | 2533 | 11236 | 9346 | 8061 | 6797 | 17141 | 87521 |
| &nbsp;&nbsp;&nbsp;Participating annuity & savings | 5432 | 5261 | 5061 | 4840 | 4637 | 4445 | 4266 | 4049 | 3804 | 3538 | 13999 | 8740 | 4881 | 2464 | 2267 | 77684 |
| &nbsp;&nbsp;&nbsp;Non-participating annuity & savings | 82225 | 72433 | 65241 | 59370 | 54421 | 49591 | 45313 | 41475 | 37876 | 34859 | 138740 | 90235 | 55446 | 31646 | 32978 | 891849 |
| &nbsp;&nbsp;&nbsp;Asset-linked annuity & savings | 13007 | 12105 | 11376 | 9987 | 8239 | 7438 | 6868 | 6286 | 5381 | 4829 | 17784 | 9908 | 5544 | 3131 | 4279 | 126162 |
| **Direct-Par** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable annuity & savings | 5349 | 4807 | 4274 | 3801 | 3411 | 3060 | 2777 | 2472 | 2119 | 1819 | 6143 | 3322 | 1848 | 1083 | 2100 | 48385 |
| **Subtotal** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating | 7041 | 6829 | 6602 | 6343 | 6112 | 5894 | 5687 | 5443 | 5170 | 4882 | 20278 | 14213 | 9496 | 6137 | 8405 | 118532 |
| &nbsp;&nbsp;&nbsp;Non-participating | 419567 | 349885 | 312639 | 288375 | 266463 | 239343 | 222347 | 210137 | 200025 | 191300 | 856191 | 718278 | 601625 | 499778 | 1593720 | 6969673 |
| &nbsp;&nbsp;&nbsp;Variable | 10594 | 9305 | 8317 | 7492 | 6809 | 6208 | 5725 | 5256 | 4771 | 4352 | 17379 | 12668 | 9909 | 7880 | 19241 | 135906 |
| &nbsp;&nbsp;&nbsp; W | 437202 | 366019 | 327558 | 302210 | 279384 | 251445 | 233759 | 220836 | 209966 | 200534 | 893848 | 745159 | 621030 | 513795 | 1621366 | 7224111 |

---

(\*) The amounts are the contractual service margin recognized for underlying insurance contracts in each period because of the transfer of insurance contract service in each period, less interest accreted during that period.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**25. <u>Insurance contract liabilities (continued)</u>**

(l) As of December 31, 2025 and 2024, the composition and fair value amounts of the underlying items of insurance contracts with direct participation features are as follows:

---

| | | | |
|:---|:---|:---|:---|
| Underlying items (\*) |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 371582 | 294963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | 4004935 | 3561126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 40245 | 32489 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives |  | 429 | (150) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 52778 | 69608 |
|  | W | 4469969 | 3958036 |

---

(\*) The carrying amounts of financial assets (liabilities) for variable insurance were W6,338,236 million and W5,498,129 million as of December 31, 2025 and 2024, respectively.

**26. <u>Reinsurance contract assets (liabilities)</u>**

(a) The carrying amounts of reinsurance contract assets (liabilities) as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Life** | **Health** | **Combined** | **Total** |
| Reinsurance contract assets | W | - | - | 494226 | 494226 |
| Reinsurance contract liabilities |  | (24641) | (31737) | - | (56378) |
| Net reinsurance contract assets (liabilities) | W | (24641) | (31737) | 494226 | 437848 |
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Life** | **Health** | **Combined** | **Total** |
| Reinsurance contract assets | W | - | - | 107668 | 107668 |
| Reinsurance contract liabilities |  | (26214) | (71844) | - | (98058) |
| Net reinsurance contract assets (liabilities) | W | (26214) | (71844) | 107668 | 9610 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Remaining coverage component** | **Remaining coverage component** | **Incurred claims component** | **Total** |
|  |  | **Excluding**<br>**loss recovery**<br>**component** | **Loss recovery**<br>**component** | **Incurred claims component** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 47337 | 3806 | 56525 | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (153214) | 17246 | 37910 | (98058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (105877) | 21052 | 94435 | 9610 |
| &nbsp;&nbsp;&nbsp;**Reinsurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on incurred claims and other incurred reinsurance service expenses |  | - | - | 184667 | 184667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in expected recoveries on past claims |  | - | - | (34424) | (34424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition and reversal of loss recovery component |  | - | 15428 | - | 15428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 60 | (1378) | - | (1318) |
|  |  | 60 | 14050 | 150243 | 164353 |
| &nbsp;&nbsp;&nbsp;**Reinsurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts under the fair value approach |  | (68561) | - | - | (68561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts after transition |  | (81714) | - | - | (81714) |
|  |  | (150275) | - | - | (150275) |
| &nbsp;&nbsp;&nbsp;**Investment components and reinsurance premium refunds** |  | (249075) | - | 249075 | - |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income and expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | 9054 | (4) | 1829 | 10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (211900) | 12 | 170 | (211718) |
|  |  | (202846) | 8 | 1999 | (200839) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 969673 | - | - | 969673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | - | - | (129648) | (129648) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | 21694 | - | (246720) | (225026) |
|  |  | 991367 | - | (376368) | 614999 |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 433777 | 3787 | 56662 | 494226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (150423) | 31323 | 62722 | (56378) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | 283354 | 35110 | 119384 | 437848 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(b) Reconciliation from the opening to the closing balances of the net asset (liability) for remaining coverage and the assets for incurred claims recoverable from reinsurance is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Remaining coverage component** | **Remaining coverage component** | **Incurred claims component** | **Total** |
|  |  | **Excluding**<br>**loss recovery**<br>**component** | **Loss recovery**<br>**component** | **Incurred claims component** | **Total** |
| &nbsp;&nbsp;&nbsp;**Opening balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 19436 | 5055 | 38324 | 62815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (143191) | 23142 | 26929 | (93120) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (123755) | 28197 | 65253 | (30305) |
| &nbsp;&nbsp;&nbsp;**Reinsurance revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on incurred claims and other incurred reinsurance service expenses |  | - | - | 89789 | 89789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in expected recoveries on past claims |  | - | - | (29392) | (29392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition and reversal of loss recovery component |  | - | (6131) | - | (6131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 17 | (1320) | - | (1303) |
|  |  | 17 | (7451) | 60397 | 52963 |
| &nbsp;&nbsp;&nbsp;**Reinsurance service expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts under the fair value approach |  | (28837) | - | - | (28837) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts after transition |  | (29006) | - | - | (29006) |
|  |  | (57843) | - | - | (57843) |
| &nbsp;&nbsp;&nbsp;**Investment components and reinsurance premium refunds** |  | (143510) | - | 143510 | - |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income and expenses recognized in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | (1356) | 37 | 1375 | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (2692) | 243 | 350 | (2099) |
|  |  | (4048) | 280 | 1725 | (2043) |
| &nbsp;&nbsp;&nbsp;**Cash flows:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 220940 | - | - | 220940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | - | - | (33480) | (33480) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | 2348 | - | (142970) | (140622) |
|  |  | 223288 | - | (176450) | 46838 |
| &nbsp;&nbsp;&nbsp;**Other increase/decrease** |  | (26) | 26 | - | - |
| &nbsp;&nbsp;&nbsp;**Closing balance:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 47337 | 3806 | 56525 | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (153214) | 17246 | 37910 | (98058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | (105877) | 21052 | 94435 | 9610 |

---

(c) There have been no reinsurance contract assets (liabilities) to which the premium allocation approach has been applied for the years ended December 31, 2025 and 2024.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Total** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Reinsurance contracts under**<br>**fair value approach** | **Other contracts** | **Subtotal** | **Total** |
| **Opening balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (81007) | 19668 | 78043 | 90964 | 169007 | 107668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (323274) | 39436 | 95595 | 90186 | 185781 | (98057) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (404281) | 59104 | 173638 | 181150 | 354788 | 9611 |
| **Changes that relate to future service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | 110471 | 3688 | (54909) | (45411) | (100320) | 13839 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | (268585) | 16943 | - | 253230 | 253230 | 1588 |
|  |  | (158114) | 20631 | (54909) | 207819 | 152910 | 15427 |
| **Changes that relate to current service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services received |  | - | - | (10697) | (21925) | (32622) | (32622) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (5049) | - | - | - | (5049) |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | 70745 | - | - | - | - | 70745 |
|  |  | 70745 | (5049) | (10697) | (21925) | (32622) | 33074 |
| **Changes that relate to past service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to incurred claims component |  | (33574) | (850) | - | - | - | (34424) |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | (7190) | 2250 | 5176 | 10643 | 15819 | 10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (209365) | (2353) | - | - | - | (211718) |
|  |  | (216555) | (103) | 5176 | 10643 | 15819 | (200839) |
| **Cash flows:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 969673 | - | - | - | - | 969673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | (129648) | - | - | - | - | (129648) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | (225026) | - | - | - | - | (225026) |
|  |  | 614999 | - | - | - | - | 614999 |
| **Closing balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 188681 | 26546 | 57547 | 221452 | 278999 | 494226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (315461) | 47187 | 55661 | 156235 | 211896 | (56378) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | (126780) | 73733 | 113208 | 377687 | 490895 | 437848 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(d) Reconciliation from the opening to the closing balances of reinsurance contract assets (liabilities) analyzed by components is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied: (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Contractual service margin (CSM)** | **Total** |
|  |  | **Estimates of present value of future cash flows** | **Risk adjustment for non-financial risk** | **Reinsurance contracts under**<br>**fair value approach** | **Other contracts** | **Subtotal** | **Total** |
| **Opening balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (26683) | 18538 | 15224 | 55736 | 70960  | 62815  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (181724) | 28568 | 24066 | 35970 | 60036  | (93120) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) |  | (208407) | 47106  | 39290  | 91706  | 130996  | (30305) |
| **Changes that relate to future service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates that adjust the CSM |  | (187433) | 4856 | 121614 | 53352 | 174966  | (7611) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts initially recognized in the period |  | (45885) | 4651 | - | 42714 | 42714  | 1480  |
|  |  | (233318) | 9507  | 121614  | 96066  | 217680  | (6131) |
| **Changes that relate to current service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CSM recognized for services received |  | - | - | 11035 | (10814) | 221  | 221  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (2978) | - | - | - | (2978) |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments |  | 33399 | - | - | - | - | 33399  |
|  |  | 33399  | (2978) | 11035  | (10814) | 221  | 30642  |
| **Changes that relate to past service:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to incurred claims component |  | (27873) | (1518) | - | - | - | (29391) |
| &nbsp;&nbsp;&nbsp;**Reinsurance finance income or expenses recognized in:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | (7593) | 1758 | 1699 | 4192 | 5891  | 56  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (7327) | 5228 | - | - | - | (2099) |
|  |  | (14920) | 6986 | 1699  | 4192  | 5891  | (2043) |
| **Cash flows:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premiums paid |  | 220940 | - | - | - | - | 220940  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries from reinsurance |  | (33480) | - | - | - | - | (33480) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment components received and reinsurance premium refunds |  | (140622) | - | - | - | - | (140622) |
|  |  | 46838 | - | - | - | - | 46838 |
| **Closing balance:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | (81007) | 19668 | 78043 | 90964 | 169007  | 107668  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (323274) | 39435 | 95595 | 90186 | 185781  | (98058) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net assets (liabilities) | W | (404281) | 59103 | 173638  | 181150  | 354788  | 9610 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(e) An analysis of reinsurance contract initially recognized for the years ended December 31, 2025 and 2024 is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** |  |  |  |  |
|  |  | &nbsp;&nbsp;**Other than insurance**<br>**acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition**<br>**cash flows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash inflows** | &nbsp;&nbsp;**Risk adjustment for**<br>**non-financial risks** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Reinsurance contract**<br> **initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other than net gain group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;(1745355) | &nbsp;&nbsp;- | &nbsp;&nbsp;1478122 | &nbsp;&nbsp;15440 | &nbsp;&nbsp;253107 | &nbsp;&nbsp;1314 |
| &nbsp;&nbsp;Net gain group of contracts |  | &nbsp;&nbsp;(62220) | &nbsp;&nbsp;- | &nbsp;&nbsp;60868 | &nbsp;&nbsp;1503 | &nbsp;&nbsp;123 | &nbsp;&nbsp;274 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(1807575) | &nbsp;&nbsp;- | &nbsp;&nbsp;1538990 | &nbsp;&nbsp;16943 | &nbsp;&nbsp;253230 | &nbsp;&nbsp;1588 |
|  |  | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** | &nbsp;&nbsp; <br>**2024** |
|  |  | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash outflows** |  |  |  |  |
|  |  | &nbsp;&nbsp;**Other than insurance**<br>**acquisition cash flows** | &nbsp;&nbsp;**Insurance acquisition**<br>**cash flows** | &nbsp;&nbsp;**Estimates of present value of** <br>**future cash inflows** | &nbsp;&nbsp;**Risk adjustment for**<br>**non-financial risks** | &nbsp;&nbsp;**Contractual service margin** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Reinsurance contract**<br> **initially recognized** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other than net gain group of contracts | &nbsp;&nbsp;W | &nbsp;&nbsp;(159792) | &nbsp;&nbsp;- | &nbsp;&nbsp;109822 | &nbsp;&nbsp;3077 | &nbsp;&nbsp;47383 | &nbsp;&nbsp;490 |
| &nbsp;&nbsp;Net gain group of contracts |  | &nbsp;&nbsp;(64074) | &nbsp;&nbsp;- | &nbsp;&nbsp;68159 | &nbsp;&nbsp;1574 | &nbsp;&nbsp;(4669) | &nbsp;&nbsp;990 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;(223866) | &nbsp;&nbsp;- | &nbsp;&nbsp;177981  | &nbsp;&nbsp;4651  | &nbsp;&nbsp;42714  | &nbsp;&nbsp;1480  |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**26. <u>Reinsurance contract assets (liabilities) (continued)</u>**

(f) An analysis of the expected recognition of the contractual service margin remaining as of December 31, 2025 and 2024 in profit or loss is as follows – Reinsurance contracts other than those to which the premium allocation approach has been applied:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**5 years** | **After 5 years through**<br>**10 years** | **After 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 19298 | 18144 | 49242 | 67963 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124352 | 278999 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities  |  | 18802 | 16756 | 38942 | 43802 | 93594 | 211896 |
|  | W | 38100 | 34900 | 88184 | 111765 | 217946 | 490895 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **In**<br>**1 year or less** | **After 1 year through**<br>**2 years** | **After 2 years through**<br>**5 years** | **After 5 years through**<br>**10 years** | **After 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 12512 | 11334 | 29402 | 38425 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77334 | 169007 |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities  |  | 13874 | 12036 | 30495 | 35569 | 93807 | 185781 |
|  | W | 26386 | 23370 | 59897 | 73994 | 171141 | 354788 |

---

**27. <u>Investment contract liabilities</u>**

Investment contract liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Financial liabilities at amortized cost (\*) | W | 1,541,684 | 1,332,468 |

---

(\*) The amount is policyholders' reserve for retirement pension contracts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**28. <u>Debentures</u>**

Debentures as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
|  | &nbsp;&nbsp;**Currency** | &nbsp;&nbsp;**Issue date** | &nbsp;&nbsp;**Redemption date** | &nbsp;&nbsp;**Contracted interest rate** | &nbsp;&nbsp;**Maturity** |  | &nbsp;&nbsp;**Face value** | &nbsp;&nbsp;**Book**<br>**Value (\*2)** |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) | &nbsp;&nbsp;KRW | 2023.06.09 | 2033.06.09 | &nbsp;&nbsp;5.20% | &nbsp;&nbsp;10 years | &nbsp;&nbsp;W | &nbsp;&nbsp;300000 | &nbsp;&nbsp;299636 |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) | &nbsp;&nbsp;KRW | 2025.06.05 | 2035.06.05 | &nbsp;&nbsp;3.40% | &nbsp;&nbsp;10 years |  | &nbsp;&nbsp;500000 | &nbsp;&nbsp;498756 |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) |  |  |  |  |  | &nbsp;&nbsp;W | &nbsp;&nbsp;800000 | &nbsp;&nbsp;798392 |

---

(\*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.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
|  | &nbsp;&nbsp;**Currency** | &nbsp;&nbsp;**Issue date** | &nbsp;&nbsp;**Redemption date** | &nbsp;&nbsp;**Contracted interest rate** | &nbsp;&nbsp;**Maturity** |  | &nbsp;&nbsp;**Face value** | &nbsp;&nbsp;**Book**<br>**Value (\*2)** |
| &nbsp;&nbsp;&nbsp;Subordinated bond (unsecured) (\*1) | &nbsp;&nbsp;KRW | 2023.06.09 | 2033.06.09 | &nbsp;&nbsp;5.20% | &nbsp;&nbsp;10 years | &nbsp;&nbsp;W | &nbsp;&nbsp;300000 | &nbsp;&nbsp;299487 |

---

(\*1) The maturity of unsecured subordinated bonds is 10 years from the date of issuance, and each unsecured subordinated bond can be repaid early in full at the date after five years since the date of issuance or at every interest payment date thereafter.

(\*2) The difference from the face value was recorded as the present value discount.

**29. <u>Other financial liabilities</u>**

Other financial liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Account payables  | W | &nbsp;&nbsp;&nbsp;&nbsp;22,914 | &nbsp;&nbsp;&nbsp;&nbsp;16,438 |
| Accrued expense |  | &nbsp;&nbsp;&nbsp;&nbsp;642,004 | &nbsp;&nbsp;&nbsp;&nbsp;443,912 |
| Lease deposits received  |  | &nbsp;&nbsp;&nbsp;&nbsp;928 | &nbsp;&nbsp;&nbsp;&nbsp;865 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;665,846 | &nbsp;&nbsp;&nbsp;&nbsp;461,215 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**30. <u>Employee benefits</u>**

(a) Defined benefit obligations and plan assets

The Company operates a defined benefit plan based on employees' pension compensation benefits and service period, and entrusts plan assets to Shinhan Bank, etc.

Defined benefit obligations and plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Present value of defined benefit obligations | W | &nbsp;&nbsp;&nbsp;&nbsp;142878 | &nbsp;&nbsp;&nbsp;&nbsp;138396 |
| Fair value of plan assets |  | &nbsp;&nbsp;&nbsp;&nbsp;(147746) | &nbsp;&nbsp;&nbsp;&nbsp;(154730) |
| &nbsp;&nbsp;Recognized liabilities (assets) for defined benefit obligations | W | &nbsp;&nbsp;&nbsp;&nbsp;(4868) | &nbsp;&nbsp;&nbsp;&nbsp;(16334) |

---

(b) Changes in the present value of defined benefit obligation for the years ended December 31, 2025 and 2024 were as

follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Beginning balance | W | 138396 | 121852 |
| Current service cost |  | 9697 | 8542 |
| Interest expense |  | 6376 | 6255 |
| Remeasurement loss (gain): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demographic assumptions |  | 1319 | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assumptions |  | (4236) | 12593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 2835 | 2218 |
|  |  | (82) | 14705 |
| Past service cost |  | - | 40 |
| Salaries |  | (11708) | (14675) |
| Severance payment transferred from (to) associates |  | 199 | 1677 |
| Ending balance | W | 142878 | 138396 |

---

(c) Plan assets

Changes in the Plan assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Beginning balance  | W | &nbsp;&nbsp;&nbsp;&nbsp;154730 | &nbsp;&nbsp;&nbsp;&nbsp;156109 |
| Expected return |  | &nbsp;&nbsp;&nbsp;&nbsp;7137 | &nbsp;&nbsp;&nbsp;&nbsp;8036 |
| Remeasurement factors |  | &nbsp;&nbsp;&nbsp;&nbsp;(2719) | &nbsp;&nbsp;&nbsp;&nbsp;(2407) |
| Contributions  |  | &nbsp;&nbsp;&nbsp;&nbsp;5000 | &nbsp;&nbsp;&nbsp;&nbsp;- |
| Benefits Paid |  | &nbsp;&nbsp;&nbsp;&nbsp;(16402) | &nbsp;&nbsp;&nbsp;&nbsp;(7008) |
| &nbsp;&nbsp;Ending balance  | W | &nbsp;&nbsp;&nbsp;&nbsp;147746 | &nbsp;&nbsp;&nbsp;&nbsp;154730 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**30. <u>Employee benefits (continued)</u>**

(d) Gains and losses related to the defined benefit plan

Gains and losses related to the defined benefit plan for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(\*1)(\*2)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Current service cost | W | 9697 | 8542 |
| Interest expense  |  | 6376 | 6255 |
| Past service cost |  | - | 40 |
| Expected return on plan assets  |  | (7137) | (8036) |
|  | W | 8936 | 6801 |

---

(\*1) The above gains and losses related to the defined benefit plan are included in insurance service expenses, investment management expenses, and other operating expenses. Of gains and losses related to the defined benefit plan, W418 million and W269 million for the years ended December 31, 2025 and 2024, respectively, were transferred to property and equipment, and intangible assets.

(\*2) Termination benefits of W12,075 million and W24,251 million included in salaries were paid for the years ended December 31, 2025 and 2024, respectively.

(e) The gains and losses related to the defined contribution plan for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| Operating expenses | W | 5136 | 4943 |
| Investment administration expenses |  | 281 | 303 |
| Total (\*) | W | 5417 | 5246 |

---

(\*) Of the above gains and losses related to the defined contribution plan for the year ended December 31, 2025, W120 million (W156 million for the year ended December 31, 2024) has been transferred to property and equipment and intangible assets.

(f) Details of plan assets by type

The composition of plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | Ratio |  | Amount | Ratio  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount  |
| Time deposits  | &nbsp;&nbsp;41.60% | &nbsp;&nbsp;&nbsp;&nbsp;W | 61455 | 49.78% | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77025 |
| Retirement pension insurance | &nbsp;&nbsp;56.69% |  | 83761 | 49.33% |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76326 |
| Others  | 1.71% |  | 2530 | 0.89% |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1379 |
|  | 100.00% | &nbsp;&nbsp;&nbsp;&nbsp;W | 147746 | 100.00% | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154730 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**30. <u>Employee benefits (continued)</u>**

(g) Actuarial assumptions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **Description** |
| &nbsp;&nbsp;Discount rate (expected rate of return) | 4.68% | 4.66% | AA0 corporate bond yields |
| &nbsp;&nbsp;Future salary increase rate | 4.41% + <br>increase rate | 4.03% + <br>increase rate | Average for the past 5 years |
| &nbsp;&nbsp;Retirement rate | 1%~23.7% | 2% ~3% | Average for the past 3 years |
| &nbsp;&nbsp;Weighted average maturity | 7.84 years | 10.9 years |  |

---

(h) Sensitivity analysis

As of December 31, 2025 and 2024, changes in present value of the defined benefit obligations resulted from the change in key assumption are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2024** | **2024** |
|  |  | **Increase** | **Decrease** | **Increase** | **Decrease** |
| Discount rate (1%p movement) | W | &nbsp;&nbsp;&nbsp;&nbsp;(10305) | &nbsp;&nbsp;&nbsp;&nbsp;11606 | &nbsp;&nbsp;&nbsp;&nbsp;(13532) | &nbsp;&nbsp;&nbsp;&nbsp;15620 |
| &nbsp;&nbsp;Future salary increase rate <br>(1%p movement) |  | &nbsp;&nbsp;&nbsp;&nbsp;11527 | &nbsp;&nbsp;&nbsp;&nbsp;(10427) | &nbsp;&nbsp;&nbsp;&nbsp;15566 | &nbsp;&nbsp;&nbsp;&nbsp;(13734) |

---

(i) Defined contribution plan for the year ended December 31, 2026, is expected to be W9,000 million.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**31. <u>Provisions</u>**

(a) Details of provisions

Details of provisions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Provisions for restoration  | W | &nbsp;&nbsp;&nbsp;&nbsp;18965 | &nbsp;&nbsp;&nbsp;&nbsp;16479 |
| Unused credit commitments |  | &nbsp;&nbsp;&nbsp;&nbsp;777 | &nbsp;&nbsp;&nbsp;&nbsp;253 |
| Other long-term employee benefits provisions |  | &nbsp;&nbsp;&nbsp;&nbsp;11183 | &nbsp;&nbsp;&nbsp;&nbsp;13802 |
| Litigation provisions |  | &nbsp;&nbsp;&nbsp;&nbsp;300 | &nbsp;&nbsp;&nbsp;&nbsp;352 |
| Other provisions (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;70409 | &nbsp;&nbsp;&nbsp;&nbsp;39272 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;101634 | &nbsp;&nbsp;&nbsp;&nbsp;70158 |

---

(\*) The amount expected to be paid in the future for the insurance refund of the insurance contract whose extinctive prescription has been completed is estimated and recorded as a liability for completion of extinctive prescription, and the Company recognized provisions related to pending litigation and other contingent matters. In addition, the amount as of December 31, 2025 includes an amount of W38,200 million recognized in respect of expected administrative penalties arising from the Financial Supervisory Service's regular inspection conducted in 2023. This amount may be subject to change depending on the outcome of future regulatory actions.

(b) Changes in provisions for unused credit commitments

Changes in provisions for unused credit commitments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 247 | 6 | - | 253 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | - | - | - | - |
| &nbsp;&nbsp;Provision (Reversal) |  | 530 | (6) | - | 524 |
| Ending balance | W | 777 | - | - | 777 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **12-month expected credit loss** | **Lifetime expected credit loss** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 652 | 1202 | - | 1854 |
| &nbsp;&nbsp;Transfer to (from) 12-month expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) lifetime expected credit losses |  | - | - | - | - |
| &nbsp;&nbsp;Transfer to (from) impaired financial assets |  | - | - | - | - |
| &nbsp;&nbsp;Reversal |  | (405) | (1196) | - | (1601) |
| Ending balance | W | 247 | 6 | - | 253 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**31. <u>Provisions (continued)</u>**

(c) Changes in provisions

Change in provisions for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Classification** |  | **Provisions for restoration** | **Provisions for restoration** | **Other long-term employee benefits provisions** | **Other long-term employee benefits provisions** | **Litigation provisions** | **Litigation provisions** | **Other provisions** | **Other provisions** |
| **Classification** |  | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| Beginning balance | W | 16479 | 16103 | 13802 | 13361 | 352 | 862 | 39272 | 43385 |
| Provision (Reverse) |  | 1295 | 277 | 1520 | 1544 | (52) | (510) | 64869 | 41575 |
| Amount used |  | (48) | (93) | (1004) | (854) | - | - | (33732) | (45688) |
| Others (\*1) |  | 1239 | 192 | (3135) | (249) | - | - | - | - |
| Ending balance | W | 18965 | 16479 | 11183 | 13802 | 300 | 352 | 70409 | 39272 |

---

(\*1) The effects of changes in estimates, such as the amount and discount rate over time of restoration provisions and other long-term employee benefits provisions, measured at present value.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**31. <u>Provisions (continued)</u>**

(d) Assumptions of other long-term employee benefits

The main assumptions used to calculate the reward for long-term employees according to the Company's long-term service as of December 31, 2025 and 2024 are as follows

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **Description** |
| &nbsp;&nbsp;Discount rate | 4.23% | 3.99% | AA0 corporate bond yields |
| &nbsp;&nbsp;Future salary increase rate | 4.41% + increase rate | 4.03% + increase rate | Average for the past 5 years |
| &nbsp;&nbsp;Retirement rate | 1%~23.7% | 2% ~3% | Average for the past 3 years |

---

(e) Expected period of provision outflows

Expected period of provision outflows as of December 31, 2025 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Expected outflows** | **In 1 year**<br>**or less** | **After 1 year through** <br>**3 years** | **After 3 years through** <br>**5 years** | **After 5 years** |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions for restoration (\*1) | W | 19581 | 3751 | 14813 | 1017 | - |
| &nbsp;&nbsp;&nbsp;Unused credit commitments |  | 777 | 32 | 6 | 735 | 4 |
| &nbsp;&nbsp;&nbsp;Other long-term employee benefits provisions (\*2) |  | 13997 | 1933 | 3001 | 1865 | 7198 |
| &nbsp;&nbsp;&nbsp;Litigation provisions |  | 300 | - | 300 | - | - |
| Other provisions |  | 70409 | 55114 | 3466 | 2981 | 8848 |

---

(\*1) It is the expected amount to be incurred at the time of the outflow of estimated restoration expense, which is before discounting as current value.

(\*2) The expected outflow of provision for other long-term employee benefits provisions is an undiscounted amount.

**32. <u>Other liabilities</u>**

Other liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Unearned revenue | W | &nbsp;&nbsp;&nbsp;&nbsp;49 | &nbsp;&nbsp;&nbsp;&nbsp;181 |
| Deposits |  | &nbsp;&nbsp;&nbsp;&nbsp;24,691 | &nbsp;&nbsp;&nbsp;&nbsp;29,813 |
| Accrued VAT |  | &nbsp;&nbsp;&nbsp;&nbsp;76 | &nbsp;&nbsp;&nbsp;&nbsp;101 |
| Others |  | &nbsp;&nbsp;&nbsp;&nbsp;3,348 | &nbsp;&nbsp;&nbsp;&nbsp;1,174 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;28,164 | &nbsp;&nbsp;&nbsp;&nbsp;31,269 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**33. <u>Equity</u>**

(a)Equity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| **Share capital:** |  |  |  |
| &nbsp;&nbsp;Common stocks | W | 578274 | 578274 |
| **Hybrid bonds:** |  |  |  |
| &nbsp;&nbsp;Hybrid bonds |  | - | 299452 |
| **Capital surplus:** |  |  |  |
| Capital premium |  | 819351 | 819351 |
| &nbsp;&nbsp;Other capital surplus |  | 672 | 672 |
|  |  | 820023 | 820023 |
| **Capital adjustment**: |  |  |  |
| Stock options |  | 891 | 1461 |
| **Accumulated other comprehensive income, net of tax:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on valuation of securities at fair value through other comprehensive income |  | (3244290) | (1766683) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net valuation gain (loss) from cash flow hedges |  | (209393) | 90681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income from insurance contracts issued |  | 1497528 | 218656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income from reinsurance contracts held |  | (141935) | 11736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of defined benefit liabilities |  | (30201) | (28718) |
|  |  | (2128291) | (1474328) |
| **Retained earnings:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve  |  | 132991 | 95160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Voluntary reserve |  | 4018140 | 3810489 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unappropriated retained earnings |  | 2817266 | 2931771 |
|  |  | 6968397 | 6837420 |
|  | W | 6239294 | 7062302 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won, except per share data)*

**33. <u>Equity (continued)</u>**

(b) Share capital

Share capital of the Company as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Number of authorized shares  |  | 400,000,000 | 400,000,000 |
| Par value per share in won | W | 5,000 | 5,000 |
| Number of issued common stocks outstanding |  | 115,654,859 | 115,654,859 |

---

(c) Hybrid bonds

Hybrid bonds as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Issue date** | &nbsp;&nbsp;**Maturity date** | &nbsp;&nbsp;**Interest rate** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Unsecured interest-bearing hybrid bonds | &nbsp;&nbsp;2020-08-11 | &nbsp;&nbsp;2050-08-11 | &nbsp;&nbsp;3.60% | &nbsp;&nbsp;W  | &nbsp;&nbsp;- | &nbsp;&nbsp;300000  |
| &nbsp;&nbsp;Issue cost | &nbsp;&nbsp;Issue cost | &nbsp;&nbsp;Issue cost | &nbsp;&nbsp;Issue cost |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(756) |
| &nbsp;&nbsp;Deferred tax effects | &nbsp;&nbsp;Deferred tax effects | &nbsp;&nbsp;Deferred tax effects | &nbsp;&nbsp;Deferred tax effects |  | &nbsp;&nbsp;-  | &nbsp;&nbsp;208  |
|  |  |  |  | &nbsp;&nbsp;W  | &nbsp;&nbsp;-  | &nbsp;&nbsp;299452  |

---

The above hybrid bonds were early redeemed during the year ended December 31, 2025, as the Company became entitled to exercise an early redemption option starting five years after issuance.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**33. <u>Equity (continued)</u>**

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Items that may be subsequently reclassified to profit or loss** | **Items that may be subsequently reclassified to profit or loss** | **Items that may be subsequently reclassified to profit or loss** | **Items that may be subsequently reclassified to profit or loss** | **Items that will not be subsequently**<br>**reclassified to profit or loss** | **Items that will not be subsequently**<br>**reclassified to profit or loss** |  |
|  |  | **Valuation**<br>**gains (losses) on**<br>**securities at**<br>**fair value**<br>**through other**<br>**comprehensive**<br>**income** | **Valuation**<br>**gains (losses)**<br>**on derivative**<br>**for cash flow**<br>**hedges** | **Net finance**<br>**income from**<br>**insurance contracts issued** | **Net finance**<br>**income from**<br>**reinsurance**<br>**contracts held** | **Valuation**<br>**gains (losses) on**<br>**securities at**<br>**fair value**<br>**through other**<br>**comprehensive**<br>**income** | **Remeasurements**<br>**of defined**<br>**benefit**<br>**liability** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (1761365) | 90681 | 218656 | 11736 | (5317) | (28718) | (1474327) |
| &nbsp;&nbsp;&nbsp;Change due to fair value  |  | (2077812) | - | 1768470 | (211718) | (4193) | - | (525253) |
| &nbsp;&nbsp;&nbsp;Change due to disposal |  | 3915 | - | - | - | 3230 | - | 7145 |
| &nbsp;&nbsp;Remeasurements of the defined benefit liabilities |  | - | - | - | - | - | (2637) | (2637) |
| Effects of hedge  |  | - | (412878) | - | - | - | - | (412878) |
| Tax effects |  | 596908 | 112804 | (489598) | 58047 | 344 | 1154 | 279659 |
| &nbsp;&nbsp;Reclassification of retained earnings |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (3238354) | (209393) | 1497528 | (141935) | (5936) | (30201) | (2128291) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**33. <u>Equity (continued)</u>**

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Items that may be subsequently reclassified to profit or loss** | **Items that may be subsequently reclassified to profit or loss** | **Items that may be subsequently reclassified to profit or loss** | **Items that may be subsequently reclassified to profit or loss** | **Items that will not be subsequently**<br>**reclassified to profit or loss** | **Items that will not be subsequently**<br>**reclassified to profit or loss** |  |
|  |  | **Valuation**<br>**gains (losses) on**<br>**securities at**<br>**fair value**<br>**through other**<br>**comprehensive**<br>**income** | **Valuation**<br>**gains (losses)**<br>**on derivative**<br>**for cash flow**<br>**hedges** | **Net finance**<br>**income from**<br>**insurance contracts issued** | **Net finance**<br>**income from**<br>**reinsurance**<br>**contracts held** | **Valuation**<br>**gains (losses) on**<br>**securities at**<br>**fair value**<br>**through other**<br>**comprehensive**<br>**income** | **Remeasurements**<br>**of defined**<br>**benefit**<br>**liability** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (2491808) | 45462 | 2572059 | 13280 | (6206) | (16124) | 116663 |
| &nbsp;&nbsp;&nbsp;Change due to fair value  |  | 954558 | - | (3197558) | (2098) | 1053 | - | (2244045) |
| &nbsp;&nbsp;&nbsp;Change due to disposal |  | 37892 | - | - | - | 100 | - | 37992 |
| &nbsp;&nbsp;Remeasurements of the defined benefit liabilities |  | - | - | - | - | - | (17112) | (17112) |
| Effects of hedge  |  | - | 62906 | - | - | - | - | 62906 |
| Tax effects |  | (262007) | (17687) | 844155 | 554 | (305) | 4518 | 569228 |
| &nbsp;&nbsp;Reclassification of retained earnings |  | - | - | - | - | 41 | - | 41 |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (1761365) | 90681 | 218656 | 11736 | (5317) | (28718) | (1474327) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won, except per share data)*

**33. <u>Equity (continued)</u>**

(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*

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024 (\*1)** |
|  |  | &nbsp;&nbsp;**Expected date of appropriation:** | &nbsp;&nbsp;**Actual date of appropriation:** |
|  |  | &nbsp;&nbsp;**2026-03-26** | &nbsp;&nbsp;**2025-03-24** |
| &nbsp;&nbsp;I. RETAINED EARNINGS BEFORE APPROPRIATIONS: | &nbsp;&nbsp;W |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Unappropriated retained earnings carried over from prior year |  | &nbsp;&nbsp;2307982 | &nbsp;&nbsp;2573935 |
| &nbsp;&nbsp;2. Net income |  | &nbsp;&nbsp;515916 | &nbsp;&nbsp;533681 |
| &nbsp;&nbsp;3. Hybrid bond interests |  | &nbsp;&nbsp;(6632) | &nbsp;&nbsp;(10800) |
| &nbsp;&nbsp;4. Interim dividends |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(150004) |
| &nbsp;&nbsp;5. Reclassification of other comprehensive income to retained earnings |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(41) |
|  |  | &nbsp;&nbsp;2817266 | &nbsp;&nbsp;2946771 |
| &nbsp;&nbsp;II.TRANSFERS FROM VOLUNTARY RESERVES: |  |  |  |
| &nbsp;&nbsp;1. Reversal of regulatory reserve for loan losses |  | &nbsp;&nbsp;- | &nbsp;&nbsp;1008 |
|  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;1008 |
| &nbsp;&nbsp;III. APPROPRIATIONS: |  |  |  |
| &nbsp;&nbsp;1. Legal Reserve |  | &nbsp;&nbsp;- | &nbsp;&nbsp;52831 |
| &nbsp;&nbsp;2. Guarantee Reserve  |  | &nbsp;&nbsp;33300 | &nbsp;&nbsp;19753 |
| &nbsp;&nbsp;3. Surrender reserve |  | &nbsp;&nbsp;1280239 | &nbsp;&nbsp;188906 |
| &nbsp;&nbsp;4. Allowance for credit losses |  | &nbsp;&nbsp;353 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;5. Loss on redemption of hybrid bonds |  | &nbsp;&nbsp;548 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;6. Dividends |  | &nbsp;&nbsp;- | &nbsp;&nbsp;378307 |
|  |  | &nbsp;&nbsp;1314440 | &nbsp;&nbsp;639797 |
| &nbsp;&nbsp;IV. UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR | &nbsp;&nbsp;W | &nbsp;&nbsp;1502826 | &nbsp;&nbsp;2307982 |

---

(f) Dividends

Annual dividends for the years ended December 31, 2025 and 204 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;Number of shares issued (\*) |  | &nbsp;&nbsp;115,654,859 shares | &nbsp;&nbsp;115,654,859 shares |
| &nbsp;&nbsp;Par value per share | &nbsp;&nbsp;W | &nbsp;&nbsp;5000 | &nbsp;&nbsp;5000 |
| &nbsp;&nbsp;Dividend per share |  | &nbsp;&nbsp;- | &nbsp;&nbsp;3271 |
| &nbsp;&nbsp;Amount |  | &nbsp;&nbsp;- | &nbsp;&nbsp;378307 |
| &nbsp;&nbsp;Dividend payout ratio based on par value |  | &nbsp;&nbsp;- | &nbsp;&nbsp;65.42% |

---

(\*) The amount excludes interim dividends declared during the year ended December 31, 2024. Including interim dividends, the dividend per share would have been W4,568, and the dividend payout ratio based on par value would have been 91.36%.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won, except per share data)*

**33. <u>Equity (continued)</u>**

(g) Voluntary reserve

*i) Regulatory reserve for loan losses*

In accordance with the Regulations on Supervision of Insurance Business, when the allowance for credit losses in accordance with Korean IFRS falls short of the allowance for credit losses in accordance with the supervisory regulations, the Company is required to reserve the difference between the two as the regulatory reserve for loan losses in retained earnings. The regulatory reserve for loan losses is calculated by the difference between the total amount of credit loss provisions under Korean IFRS and the total amount of credit loss provisions under the supervisory regulations for each category of corporate loans, household loans, and real estate project financing loans. The regulatory reserve for loan losses is limited to the amount of retained earnings less reserves accumulated in accordance with the Insurance Business Act and other laws and regulations.

① Regulatory reserve for loan losses as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Beginning balance | W | 5989 | 6997 |
| &nbsp;&nbsp;Expected provision for (reversal of) regulatory reserve for loan losses |  | 353 | (1008) |
| Ending balance | W | 6342 | 5989 |

---

② Reversal of regulatory reserve for loan losses and adjusted income after reflecting the regulatory reserve for loan

losses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Profit for the year | W | 515916 | 533681 |
| Provision for (reversal of) regulatory reserve for loan losses |  | (353) | 1008 |
| &nbsp;&nbsp;Adjusted income after the regulatory reserve for loan losses (\*1)  | W | 515563 | 534689 |
| &nbsp;&nbsp;Adjusted income per share after the reserve for<br>loan losses in won (\*2) | W | 4400 | 4530 |

---

(\*1) The adjusted profit after reflecting the regulatory reserve for loan losses is not a figure determined by the accounting standards. It is derived assuming the inclusion of the reversal (or provision) of the regulatory reserve for loan losses, before considering the effects of policyholder share allocations and deferred tax impacts, into the net profit for the period.

(\*2) Interest on hybrid bonds are excluded.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**33. <u>Equity (continued)</u>**

(g) Voluntary reserve (continued)

*ii) reserve for surrender value* 

In accordance with the Regulations on Supervision of Insurance Business, when the insurance liabilities measured in accordance with the Korean IFRS falls short of the surrender value required by the supervisory regulations, the Company is required to reserve the difference between the two as the reserve for surrender value. The reserve for surrender value is calculated by subtracting the liability for remaining coverage of insurance contracts under the Korean IFRS from the surrender value at the entity level for the effective contracts calculated according to the supervisory regulations.

Reserve for surrender value as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Reserve for surrender value | W | 3,638,116 | 3,449,210 |
| Expected reserve for surrender value |  | 1,280,239 | 188,906 |
|  | W | 4,918,355 | 3,638,116 |

---

*iii) Guarantee reserve*

In accordance with the Regulations on Supervision of Insurance Business, the Company is required to set aside a guarantee reserve at the reporting date in order to guarantee insurance proceeds and other payments not to less than a specified level. The guarantee reserve shall be accumulated after appropriation of reserve for surrender value and shall not be exceed the amount of retained earnings less reserve for surrender value.

Guarantee reserve as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Guarantee reserve | W | 374,035 | 354,282 |
| Expected guarantee reserve |  | 33,300 | 19,753 |
|  | W | 407,335 | 374,035 |

---

Voluntary reserves are accumulated from the time unappropriated deficits are settled when there are unappropriated deficits. If the voluntary reserve accumulated in previous periods exceeds the regulatory reserve for loan losses and guarantee reserve required to be accumulated as of the reporting date, the excess amount can be reversed.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**34. <u>Share-based payment</u>**

As of December 31, 2025, share-based payment agreement of Shinhan Financial Group provided to the Company's executives and employees are as follows:

(a) Performance-linked stock option

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(\*)** | &nbsp;&nbsp;&nbsp;**2022** | &nbsp;&nbsp;&nbsp;**2023** | &nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;**2025** |
| Type | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment | &nbsp;&nbsp;&nbsp;Cash-settled share-based payment |
| Service period | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs | &nbsp;&nbsp;&nbsp;4 years from the commencement date of the year to which the grant date belongs |
| Performance conditions | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) | &nbsp;&nbsp;&nbsp;Linked to relative stock price (20.0%) and linked to 4 years management index (80.0%) |
| Estimated vested amount <br> based on settlement date | &nbsp;&nbsp;70,575 shares | &nbsp;&nbsp;67,310 shares | &nbsp;&nbsp;62,532 shares | &nbsp;&nbsp;46,997 shares |

---

(\*) Based on the performance-related stock option, the standard stock price (the arithmetic average of the weighted average stock price for the past two months, the past one month, and the past one week from the day before the reference date) after 4 years since the date of grant is paid in cash. The fair value of the stock price is evaluated at the closing price of each reporting date.

(b) Share-based payment expenses

Share-based payment expenses calculated for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Performance-linked stock option | W | 10,017 | 4,063 |

---

(c) Accrued expenses and intrinsic value

Accrued expenses and intrinsic value as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accrued expenses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Intrinsic value (\*1)** |
| Performance-linked stock options (\*2) | W | 19,101 | 19,101 |

---

(\*1) The intrinsic value for stock options vested at 2022 was calculated based on the stock price (W77,757) as of January 1, 2026, and the amount granted after that was calculated based on the closing price of the reporting date (W76,900).

(\*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accrued expenses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Intrinsic value (\*1)** |
| Performance-linked stock options (\*2) | W | 12,466 | 12,466 |

---

(\*1) The intrinsic value for stock options vested at 2021 was calculated based on the stock price (W50,444) as of January 1, 2025, and the amount granted after that was calculated based on the closing price of the reporting date (W47,650).

(\*2) The amount to be paid to Shinhan Financial Group under the repayment payment agreement was calculated based on the closing price of the settlement date and recognized as a liability. Of this amount, the cost recognized as a liability directly deducted from the capital is W14 million.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**35. <u>Insurance revenue and insurance service expenses</u>**

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** |
|  |  | **Insurance contracts under:** | **Insurance contracts under:** | **Insurance contracts after transition** | **Total** |
|  |  | **Modified retrospective approach** | **Fair value approach** | **Insurance contracts after transition** | **Total** |
| **Insurance Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected incurred claims and other<br>insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;171451 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1244678 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;338751 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1754880 |
| &nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28308 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71218 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85543 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185069 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contractual service margin recognized for<br>services provided  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124794 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;308852 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;301583 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;735229 |
| &nbsp;&nbsp;&nbsp;Recovery of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86572 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1217 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;322803 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410592 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8463) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(812) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5828) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15103) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;402662 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1625153 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1042852 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3070667 |
| &nbsp;&nbsp;&nbsp;Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1199 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1199 |
| Total insurance revenue | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;402662 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1625153 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1044051 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3071866 |
| **Insurance service expenses** |  |  |  |  |  |
| Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;175548 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1229143 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;456837 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1861528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5961) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24832) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2981 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27812) |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts and<br>reversal of such losses |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11265) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16954) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90049 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61830 |
| &nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86572 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1217 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;322803 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition<br>cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;658 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2519 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13658) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10481) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8464) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(750) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5818) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15032) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237088 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1190343 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;853194 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2280625 |
| Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2189 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2189 |
| Total insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237088 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1190343 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;855383 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2282814 |

---

(\*) Others include allocation of loss components, etc.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**35. <u>Insurance revenue and insurance service expenses (continued)</u>**

Insurance revenue and insurance service expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** |
|  |  | **Insurance contracts under:** | **Insurance contracts under:** | **Insurance contracts after transition** | **Total** |
|  |  | **Modified retrospective approach** | **Fair value approach** | **Insurance contracts after transition** | **Total** |
| **Insurance Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected incurred claims and other<br>insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;189976 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1265227 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;196967 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1652170 |
| &nbsp;&nbsp;&nbsp;Change in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21723 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61570 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46698 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;129991 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contractual service margin recognized for<br>services provided  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158398 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;331569 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;242683 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;732650 |
| &nbsp;&nbsp;&nbsp;Recovery of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110336 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1226 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237167 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;348729 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10883) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(424) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5373) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16680) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;469550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1659168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;718142 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2846860 |
| &nbsp;&nbsp;&nbsp;Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;445 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;445 |
| Total insurance revenue | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;469550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1659168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;718587 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2847305 |
| **Insurance service expenses** |  |  |  |  |  |
| Contracts not measured under the premium allocation approach: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;195923 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1230537 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237450 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1663910 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2686) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26060 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27813 |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts and<br>reversal of such losses |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11216) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68891 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17369 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75044 |
| &nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110336 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1226 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237167 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;348729 |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments to insurance acquisition<br>cash flows that are not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;328 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2141 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33835) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31366) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10885) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(424) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5179) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16488) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;281800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1328431 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;457411 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2067642 |
| Contracts measured under the premium allocation approach |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1366 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1366 |
| Total insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;281800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1328431 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;458777 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2069008 |

---

(\*) Others include allocation of loss components, etc.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**36. <u>Income or expenses from reinsurance contracts held</u>**

Income or expenses from reinsurance contracts held for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **Reinsurance contracts under the fair value approach** | **Reinsurance contracts after transition** | **Total** |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recovery of incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;108510 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76158 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32864) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1561) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34425) |
| &nbsp;&nbsp;&nbsp;Recognition (reversals) of a loss-recovery component |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;409 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15019 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15428 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(616) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(702) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1318) |
| **Total reinsurance revenue** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88914 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;164353 |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected claims and other reinsurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37115 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39416 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76531 |
| &nbsp;&nbsp;&nbsp;Changes in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3160 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6710 |
| &nbsp;&nbsp;&nbsp;Contractual service margin recognized for services received |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10697 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21926 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments for reinsurance premiums and<br>investment components not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17815 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17972 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35787 |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(616) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(760) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1376) |
| **Total reinsurance service expenses** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68561 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81714 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150275 |

---

(\*) Others include allocation of loss recovery components, etc.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **Reinsurance contracts under the fair value approach** | **Reinsurance contracts after transition** | **Total** |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recovery of incurred claims and other insurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68816 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20973  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89789  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fulfilment cash flows relating to<br>the liability for incurred claims |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27421) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1971) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29392) |
| &nbsp;&nbsp;&nbsp;Recognition (reversals) of a loss-recovery component |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10318) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4187 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6131) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1053) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1303) |
| **Total reinsurance revenue** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22939 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52963 |
| **Contracts not measured under the premium allocation approach:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected claims and other reinsurance service expenses | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39319  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13620  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52939  |
| &nbsp;&nbsp;&nbsp;Changes in risk adjustment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2858 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3921 |
| &nbsp;&nbsp;&nbsp;Contractual service margin recognized for services received |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11035) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10814  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(221) |
| &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustments for reinsurance premiums and<br>investment components not related to future service |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1252) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3775  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2523  |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1053) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(266) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1319) |
| **Total reinsurance service expenses** | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28837 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29006 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57843 |

---

(\*) Others include allocation of loss recovery components, etc.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**37. <u>Insurance finance income (expenses)</u>** 

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** |
|  |  | **General life**  | **Variable** | **Retirement**<br>**(\*3)** | **Total** |
| **Investment income (expenses):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) | W | 1353741 | &nbsp;&nbsp;&nbsp;61034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17075) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1397700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation and transaction of financial instruments |  | 203416 | &nbsp;&nbsp;&nbsp;1372126 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15950 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1591492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investment income (expenses) |  | (118749) | &nbsp;&nbsp;&nbsp;(1294) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1358) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(121401) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income (expenses) recognized in other comprehensive income (\*1) |  | (2487126) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(250) | (2487376) |
|  |  | (1048718) | &nbsp;&nbsp;&nbsp;1431866 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2733) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;380415 |
| &nbsp;&nbsp;**Finance income (expenses) from insurance contracts issued:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | (1518752) | &nbsp;&nbsp;&nbsp;(1271590) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2790342) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | 1808825 | &nbsp;&nbsp;&nbsp;(39084) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1769741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange income |  | 2933 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2933 |
|  |  | 293006 | &nbsp;&nbsp;&nbsp;(1310674) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1017668) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in profit or loss |  | (1514547) | &nbsp;&nbsp;&nbsp;(1271591) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2786138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in other comprehensive income (\*1) |  | 1807553 | &nbsp;&nbsp;&nbsp;(39083) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1768470 |
| &nbsp;&nbsp;**Finance income (expenses) from reinsurance contracts held:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | 10879 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | (211718) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211718) |
|  |  | (200839) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(200839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in profit or loss |  | 10879 | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (\*1) |  | (211718) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211718) |
| &nbsp;&nbsp;Total finance income (expenses) recognized in profit or loss (\*2) |  | (65260) | &nbsp;&nbsp;&nbsp;160275 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2483) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92532 |
| &nbsp;&nbsp;Total finance income (expenses) recognized in other comprehensive income (\*2) |  | (891291) | &nbsp;&nbsp;&nbsp;(39083) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(930624) |
| **Total** | W | (956551) | &nbsp;&nbsp;&nbsp;121192 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2733) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(838092) |

---

(\*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(\*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(\*3) Retirement is a pension product classified as an investment contract liability.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**37. <u>Insurance finance income (expenses) (continued)</u>**

(a) The correlation between insurance finance income or expenses and investment income or expenses for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  |  | **General life**  | **Variable** | **Retirement**<br>**(\*3)** | **Total** |
| **Investment income (expenses):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) | W | 1375866 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78520 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20269) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1434117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation and transaction of financial instruments |  | 307677 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126554 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6624) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;427607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investment income (expenses) |  | (71695) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2126) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2335) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(76156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income (expenses) recognized in other comprehensive income (\*1) |  | 1013851 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42712 | 1056563 |
|  |  | 2625699 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;202948 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13484 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2842131 |
| &nbsp;&nbsp;**Finance income (expenses) from insurance contracts issued:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | (1499414) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(172640) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1672054) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | (3148484) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50709) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3199193) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange income (expenses) |  | (31746) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31746) |
|  |  | (4679644) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(223349) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4902993) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in profit or loss |  | (1532796) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(172640) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1705436) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts recognized in other comprehensive income (\*1) |  | (3146848) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50709) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3197557) |
| &nbsp;&nbsp;**Finance income (expenses) from reinsurance contracts held:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expenses) |  | 56 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in interest rates and other financial assumptions |  | (2098) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2098) |
|  |  | (2042) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in profit or loss |  | 56 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts recognized in other comprehensive income (\*1) |  | (2098) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2098) |
| &nbsp;&nbsp;Total finance income (expenses) recognized in profit or loss (\*2) |  | 79108 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30308 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29228) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80188 |
| &nbsp;&nbsp;Total finance income (expenses) recognized in other comprehensive income (\*2) |  | (2135095) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50709) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42712 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2143092) |
| **Total** | W | (2055987) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20401) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13484 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2062904) |

---

(\*1) The finance income recognized in other comprehensive income is the amount before deduction of the tax effect.

(\*2) Finance income or expenses is the subtotal amount of investment income or expenses, insurance finance income or expenses and reinsurance finance income or expenses.

(\*3) Retirement is a pension product classified as an investment contract liability.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**37. <u>Insurance finance income (expenses) (continued)</u>**

(b) Financial gains and losses recognized in profit or loss for the years ended December 31, 2025 and 2024 are divided into those related to changes in the fair value of the underlying assets of insurance contracts with direct participation characteristics and others as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** |
|  |  | **FV change related** | **Others** | **Total** |
| Investment income (expenses) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1047870 | 1819921 | 2867791 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts issued |  | (1047870) | (1738268) | (2786138) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts held |  | - | 10879 | 10879 |
|  | W | - | 92532 | 92532 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** |
|  |  | **FV change related** | **Others** | **Total** |
| Investment income (expenses) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 157494 | 1628074 | 1785568 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from insurance contracts issued |  | (157494) | (1547942) | (1705436) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance income (expenses) from reinsurance contracts held |  | - | 56 | 56 |
|  | W | - | 80188 | 80188 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**38. <u>Operating expenses</u>**

Operating expenses by nature for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | **Claim adjustment expenses** | **Acquisition costs (\*)** | **Maintenance**<br> **expenses** | **Investment management expenses** | **Other operating expenses** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 5678 | 64218 | 53471 | 5054 | 11099 | 139520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonus  |  | 1540 | 19438 | 18603 | 1652 | 2887 | 44120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits |  | 558 | 6212 | 5098 | 482 | 12854 | 25204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits |  | 1449 | 16963 | 14033 | 1748 | 15894 | 50087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization |  | 193 | 29940 | 19539 | 373 | 855 | 50900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities |  | 135 | 16207 | 8406 | 251 | 519 | 25518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission |  | 79 | 22050 | 29699 | 28743 | 6433 | 87004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes and dues |  | 292 | - | 71002 | 331 | 1 | 71626 |
| &nbsp;&nbsp;&nbsp;&nbsp;IT expenses |  | 737 | 21379 | 20303 | 1485 | 2097 | 46001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proportional commission |  | - | 1186027 | - | - | 17744 | 1203771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales promotion expenses |  | - | 629092 | - | - | 5062 | 634154 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training expenses |  | - | 18 | - | - | 6064 | 6082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 13807 | 37067 | 27736 | 242 | 17468 | 96320 |
|  | W | 24468 | 2048611 | 267890 | 40361 | 98977 | 2480307 |

---

(\*) Acquisition costs are reflected as insurance acquisition cash flows.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | **Claim adjustment expenses** | **Acquisition costs (\*)** | **Maintenance**<br> **expenses** | **Investment management expenses** | **Other operating expenses** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 5650 | 59426 | 53817 | 5841 | 10439 | 135173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonus  |  | 1726 | 20696 | 20549 | 1905 | 3966 | 48842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefits |  | 507 | 4756 | 4701 | 1200 | 23319 | 34483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits |  | 1789 | 19079 | 17272 | 2129 | 14392 | 54661 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization |  | 171 | 27353 | 19850 | 380 | 889 | 48643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities |  | 116 | 15146 | 7871 | 218 | 519 | 23870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission |  | 97 | 23256 | 24380 | 31292 | 7221 | 86246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes and dues |  | 562 | - | 67044 | 325 | 1 | 67932 |
| &nbsp;&nbsp;&nbsp;&nbsp;IT expenses |  | 756 | 19292 | 19843 | 1674 | 2060 | 43625 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proportional commission |  | - | 957335 | - | - | 17486 | 974821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales promotion expenses |  | - | 397263 | - | - | 4222 | 401485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training expenses |  | - | - | - | - | 6032 | 6032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 11726 | 28780 | 26647 | 239 | 24488 | 91880 |
|  | W | 23100 | 1572382 | 261974 | 45203 | 115034 | 2017693 |

---

(\*) Acquisition costs are reflected as insurance acquisition cash flows.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**39. <u>Investment administrative expenses</u>**

The investment administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Salaries | W | 4017 | 3261 |
| Bonus  |  | 1311 | 1104 |
| Retirement benefits |  | 686 | 1389 |
| Employment benefits  |  | 1505 | 1367 |
| Communication expenses  |  | 70 | 83 |
| Fees |  | 8053 | 6812 |
| Taxes and dues |  | 384 | 364 |
| Others  |  | 2316 | 1911 |
|  | W | 18342 | 16291 |

---

**40. <u>Net interest income</u>** 

(a) Interest income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Interest income on: |  |  |  |
| &nbsp;&nbsp;Deposits at amortized cost | W | 54994 | 53780 |
| &nbsp;&nbsp;Deposits at fair value through profit or loss |  | 1305 | 133 |
| &nbsp;&nbsp;Securities at fair value through profit or loss |  | 72080 | 87221 |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 1103825 | 1093402 |
| &nbsp;&nbsp;Securities at amortized cost |  | 116982 | 128985 |
| &nbsp;&nbsp;Loans at amortized cost |  | 111687 | 145329 |
| &nbsp;&nbsp;Others |  | 3675 | 3409 |
|  | W | 1464548 | 1512259 |

---

(b) Interest expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Interest expenses on: |  |  |  |
| &nbsp;&nbsp;Bonds issued  | W | 25,686 | 15,761 |
| &nbsp;&nbsp;Lease liabilities  |  | 1,998 | 2,354 |
| &nbsp;&nbsp;Others  |  | 39,164 | 60,027 |
|  | W | 66,848 | 78,142 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**41. <u>Provision for (reversal of) credit loss allowance</u>**

Provision for (reversal of) credit loss allowance for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **2025** | **2024** |
| Provisions (Reversal) | &nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income | W | (1269) | (1225) |
| Provisions (Reversal) | Securities at amortized costs |  | (2) | (23) |
| Provisions (Reversal) | Loans at amortized costs |  | 4734 | 7410 |
| Provisions (Reversal) | Receivables at amortized costs (\*) |  | 1006 | 2135 |
| Provisions (Reversal) | &nbsp;&nbsp;&nbsp;Allowance for unused credit commitments |  | 525 | (1601) |
|  |  | W | 4994 | 6696 |

---

(\*) It includes provision for (reversal of) credit loss allowance of due from banks at amortized cost.

**42. <u>Gain and losses on foreign exchange transactions</u>**

Foreign exchange transaction income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gain on foreign exchange transactions:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 15607 | 65226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Translations  |  | 231851 | 579956 |
|  |  | 247458 | 645182 |
| **Loss on foreign exchange transactions:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign transactions |  | 23986 | 11993 |
| &nbsp;&nbsp;&nbsp;&nbsp;Translations  |  | 100161 | 170 |
|  |  | 124147 | 12163 |
|  | W | 123311 | 633019 |

---

**43. <u>Fees and commission income</u>**

Fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit related fees | W | 572 | 2979 |
| Loan commissions |  | 7217 | 7198 |
| Retirement pension management fee |  | 1515 | 2238 |
| Other fees and commissions in won |  | 177 | 148 |
|  | W | 9481 | 12563 |

---

**44. <u>Dividend income</u>**

Dividend income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | W | 32017 | 28111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 5752 | 4399 |
|  | W | 37769 | 32510 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**45. <u>Other investment income or expenses</u>** 

(a) Other investment income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental income | W | 1,657 | 1,738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 1,114 | 6,939 |
|  | W | 2,771 | 8,677 |

---

(b) Other investment expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense on intangible assets | W | 74718 | 73124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense on investment properties |  | 212 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 40380 | 7769 |
|  | W | 115310 | 81105 |

---

**46. <u>Non-operating income or expenses</u>**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-operating income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on cancellation of right-of-use asset  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 876 | 454 |
| &nbsp;&nbsp;Gain on disposal of property and equipment |  | 9 | 24 |
| &nbsp;&nbsp;Miscellaneous gains |  | 8491 | 8636 |
|  | W | 9376 | 9114 |
| **Non-operating expenses:** |  |  |  |
| Loss on cancellation of right-of-use asset |  | 592 | 102 |
| &nbsp;&nbsp;Loss on disposal of property and equipment |  | 101 | 93 |
| Impairment of property and equipment |  | 924 | 1703 |
| Impairment of intangible assets |  | 1 | 167 |
| Donations |  | 7020 | 7977 |
| Miscellaneous loss |  | 886 | 2033 |
|  |  | 9524 | 12075 |
|  | W | (148) | (2961) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**47. <u>Income tax expense</u>**

(a) Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current income tax expense | W | 121299 | 16092 |
| Adjustment for prior periods |  | (8673) | (15943) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary differences  |  | (111281) | (367451) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax recognized in other comprehensive income |  | 279069 | 569215 |
| Income tax recognized in other comprehensive income  |  | 208 | 14 |
| Income tax expenses | W | 280622 | 201927 |
| Effective tax rate |  | 35.23% | 27.45% |

---

(b) Reconciliation of net income before tax to income tax expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net profit before income taxes | W | 796538 | 735608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes at statutory tax rates |  | 210287 | 194202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-taxable income |  | (3924) | (6038) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible expense |  | 1463 | 4947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax rate difference |  | (10362) | (3036) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of consolidated tax payment |  | 2663 | (1463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in tax rates |  | 79051 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 1444 | 13315 |
|  |  | 70335 | 7725 |
| Income tax expense | W | 280622 | 201927 |
| Effective tax rate |  | 35.23% | 27.45% |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**47. <u>Income tax expense (continued)</u>**

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Beginning**<br>**Balance**  | **Profit or loss** | **Other comprehen-sive income** | **Hybrid bonds** | **Equity adjustment** | **Ending**<br>**Balance** |
| &nbsp;&nbsp;Deposits in foreign currency  | W | (76) | (222) | - | - | - | (298) |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  | (30630) | (17230) | - | - | - | (47860) |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | (231609) | (84541) | 596891 | - | - | 280741 |
| &nbsp;&nbsp;Securities at amortized costs  |  | (30200) | (6326) | - | - | - | (36526) |
| &nbsp;&nbsp;Investments in associates |  | 2803 | 117 | - | - | - | 2920 |
| &nbsp;&nbsp;Derivative instruments |  | 103259 | 16810 | 112803 | - | - | 232872 |
| &nbsp;&nbsp;Accrued income |  | (163425) | (29357) | - | - | - | (192782) |
| &nbsp;&nbsp;Evaluation cost of initial investment fund |  | 101 | 4 | - | - | - | 105 |
| &nbsp;&nbsp;Deemed dividend |  | 7750 | (34) | - | - | - | 7716 |
| &nbsp;&nbsp;Dividend receivables |  | 119 | 5 | - | - | - | 124 |
| &nbsp;&nbsp;Other liabilities |  | (219) | 539 | - | - | - | 320 |
| &nbsp;&nbsp;Provisions |  | 101 | 148 | - | - | - | 249 |
| &nbsp;&nbsp;Dividend cost recovery |  | 24350 | (2757) | - | - | - | 21593 |
| &nbsp;&nbsp;Taxation of partnership |  | 1696 | 976 | - | - | - | 2672 |
| &nbsp;&nbsp;Reserve for outstanding claims for matured contracts |  | 10356 | (1510) | - | - | - | 8846 |
| Property and equipment, intangible assets  |  | 7858 | 1107 | - | - | - | 8965 |
| Other accrued expense |  | 29605 | (4297) | - | - | - | 25308 |
| Loan origination cost (fees) |  | (207) | 1160 | - | - | - | 953 |
| Share-based payment |  | 3291 | 1984 | - | - | (22) | 5253 |
| Defined benefit obligations |  | (1554) | (2284) | 1154 | - | - | (2684) |
| &nbsp;&nbsp;Vehicles for business use (depreciation adjustment) |  | 39 | (2) | - | - | - | 37 |
| &nbsp;&nbsp;Accrued interests (deposit)  |  | (3) | (2) | - | - | - | (5) |
| &nbsp;&nbsp;Right-of-use assets |  | 34 | (26) | - | - | - | 8 |
| &nbsp;&nbsp;Uncollected commission clawbacks |  | 12 | - | - | - | - | 12 |
| &nbsp;&nbsp;Loans |  | 1719 | 72 | - | - | - | 1791 |
| &nbsp;&nbsp;Deficit carried forward  |  | 5537 | (3332) | - | - | - | 2205 |
| &nbsp;&nbsp;Hybrid bonds |  | 199 | 8 | - | (208) | - | (1) |
| &nbsp;&nbsp;Legal provision |  | 93 | (11) | - | - | - | 82 |
| &nbsp;&nbsp;Effect of change in discount rate under K-IFRS 1117 |  | (82277) | (334) | (431550) | - | - | (514161) |
| &nbsp;&nbsp;Surrender Value Reserve |  | (922842) | (38451) | - | - | - | (961293) |
|  | W | (1264120) | (167786) | 279298 | (208) | (22) | (1152838) |

---

(\*1) During the year ended December 31, 2025, the corporate income tax rate and the local income tax rate were revised as a result of amendments to the Corporate Tax Act and the Corporate Local Income Tax Act. Accordingly, deferred tax assets and liabilities expected to be realized after 2025 were measured using a tax rate of 27.5%.

(\*2) The Company is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**47. <u>Income tax expense (continued)</u>**

(c) Changes in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Beginning**<br>**Balance**  | **Profit or loss** | **Other comprehensive income** | **Equity adjustment** | **Ending**<br>**Balance** |
| &nbsp;&nbsp;Deposits in foreign currency  | W | (203) | 127 | - | - | (76) |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  | (8314) | (22317) | - | - | (30631) |
| &nbsp;&nbsp;Securities at fair value through other comprehensive income |  | 167212 | (136496) | (262325) | - | (231609) |
| &nbsp;&nbsp;Securities at amortized costs  |  | (8452) | (21747) | - | - | (30199) |
| &nbsp;&nbsp;Investments in associates |  | 2803 | - | - | - | 2803 |
| &nbsp;&nbsp;Derivative instruments |  | 35243 | 85703 | (17687) | - | 103259 |
| &nbsp;&nbsp;Accrued income |  | (139749) | (23676) | - | - | (163425) |
| &nbsp;&nbsp;Evaluation cost of initial investment fund |  | - | 101 | - | - | 101 |
| &nbsp;&nbsp;Deemed dividend |  | 8535 | (785) | - | - | 7750 |
| &nbsp;&nbsp;Dividend receivables |  | 119 | - | - | - | 119 |
| &nbsp;&nbsp;Other liabilities |  | 726 | (945) | - | - | (219) |
| &nbsp;&nbsp;Provisions |  | 290 | (188) | - | - | 102 |
| &nbsp;&nbsp;Dividend cost recovery |  | 22821 | 1529 | - | - | 24350 |
| &nbsp;&nbsp;Taxation of partnership |  | 1113 | 583 | - | - | 1696 |
| &nbsp;&nbsp;Reserve for outstanding claims for matured contracts |  | 11445 | (1089) | - | - | 10356 |
| Property and equipment, intangible assets  |  | 9017 | (1159) | - | - | 7858 |
| Other accrued expense |  | 26626 | 2979 | - | - | 29605 |
| Loan origination cost (fees) |  | 51 | (258) | - | - | (207) |
| Share-based payment |  | 2667 | 624 | - | - | 3291 |
| Defined benefit obligations |  | (9043) | 2972 | 4518 | - | (1553) |
| &nbsp;&nbsp;Vehicles for business use (depreciation adjustment) |  | 30 | 9 | - | - | 39 |
| &nbsp;&nbsp;Accrued interests (deposit)  |  | - | (3) | - | - | (3) |
| &nbsp;&nbsp;Right-of-use assets |  | (363) | 396 | - | - | 33 |
| &nbsp;&nbsp;Uncollected commission clawbacks |  | 12 | - | - | - | 12 |
| &nbsp;&nbsp;Government subsidies |  | 1 | (1) | - | - | - |
| &nbsp;&nbsp;Loans |  | 1719 | - | - | - | 1719 |
| &nbsp;&nbsp;Deficit carried forward  |  | 10483 | (4946) | - | - | 5537 |
| &nbsp;&nbsp;Hybrid bonds |  | 199 | - | - | - | 199 |
| &nbsp;&nbsp;Legal provision |  | 214 | (121) | - | - | 93 |
| &nbsp;&nbsp;Effect of change in discount rate under K-IFRS 1117 |  | (927418) | 432 | 844709 | - | (82277) |
| &nbsp;&nbsp;Surrender Value Reserve |  | (839355) | (83486) | - | - | (922841) |
|  | W | (1631571) | (201762) | 569215 | - | (1264118) |

---

(\*) The Company is applying the temporary exemption provision for deferred corporate tax under K-IFRS 1012, and therefore does not recognize deferred corporate tax assets and liabilities related to the Global Anti-Base Erosion Tax rules, nor does it disclose information related to deferred corporate tax.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**47. <u>Income tax expense (continued)</u>**

(d) As of December 31, 2025 and 2024, deferred income tax related to items recognized other than in profit or loss for the years are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**January 1, 2025** | &nbsp;&nbsp;**January 1, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Amount** | &nbsp;&nbsp;**Tax effect** | **Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tax effect** | **Amount** | **Tax effect** |
| &nbsp;&nbsp;Valuation gains (losses) on securities at fair value through other comprehensive income | &nbsp;&nbsp;W | (2400385) | 633702 | (2074499) | 596891 | (4474884) | 1230593 |
| &nbsp;&nbsp;Insurance and reinsurance finance income (expenses) |  | 313034 | (82641) | 1556753 | (431550) | 1869787 | (514191) |
| &nbsp;&nbsp;Remeasurement of defined benefit liabilities |  | (39020) | 10301 | (2637) | 1154 | (41657) | 11455 |
| &nbsp;&nbsp;Stock options  |  | 1985 | (524) | - | (22) | 1985 | (546) |
| &nbsp;&nbsp;Gains (losses) on valuation of derivatives for cash flow hedge |  | 122933 | (32253) | (412877) | 112803 | (289944) | 80550 |
| &nbsp;&nbsp;Hybrid bonds |  | (755) | 208 | 755 | (208) | - | - |
|  | &nbsp;&nbsp;W | (2002208) | 528793 | (932505) | 279068 | (2934713) | 807861 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**January 1, 2024** | &nbsp;&nbsp;**January 1, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Amount** | &nbsp;&nbsp;**Tax effect** | **Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tax effect** | **Amount** | **Tax effect** |
| &nbsp;&nbsp;Valuation gains (losses) on securities at fair value through other comprehensive income | &nbsp;&nbsp;W | (3394042) | 896026 | 993657 | (262324) | (2400385) | 633702 |
| &nbsp;&nbsp;Insurance and reinsurance finance income (expenses) |  | 3512690 | (927350) | (3199656) | 844709 | 313034 | (82641) |
| &nbsp;&nbsp;Remeasurement of defined benefit liabilities |  | (21907) | 5784 | (17113) | 4517 | (39020) | 10301 |
| &nbsp;&nbsp;Stock options  |  | 1985 | (524) | - | - | 1985 | (524) |
| &nbsp;&nbsp;Gains (losses) on valuation of derivatives for cash flow hedge |  | 60028 | (14566) | 62905 | (17687) | 122933 | (32253) |
| &nbsp;&nbsp;Hybrid bonds |  | (755) | 208 | - | - | (755) | 208 |
|  | &nbsp;&nbsp;W | 157999 | (40422) | (2160207) | 569215 | (2002208) | 528793 |

---

(e) Current tax assets and liabilities

Current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current tax assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax receivables (refund of consolidated tax payment) | W | 5661 | 82404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current tax liabilities**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payables (unpaid consolidated tax payment) | W | (14019) | (79) |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**47. <u>Income tax expense (continued)</u>**

(f) Income taxes based on gross amount

Deferred tax assets and liabilities and current tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Deferred tax assets | W | 602772  | 198923  |
| Deferred tax liabilities |  | (1755610) | (1463041) |
| Current tax assets |  | 5661  | 82404  |
| Current tax liabilities |  | (14019) | (79) |

---

(g) Global Anti-Base Erosion (GloBE) Rules

Following the enactment of legislation related to the Global Anti-Base Erosion (GloBE) Rules, the Company is obligated to pay a top-up tax equal to the difference between the effective tax rate and the minimum rate of 15% in each jurisdiction in which its constituent entities are located, to the extent that the jurisdictional effective tax rate falls below 15%. The Company has assessed the impact of the GloBE rules in accordance with the relevant legislation and has determined that no significant amount of top-up tax is expected to arise, as most constituent entities meet the transitional safe harbor requirements or have effective tax rates exceeding 15%.

Income tax expense related to the GloBE rules is subject to estimation uncertainty due to potential variability arising from various factors, including tax incentives received by permanent establishments and adjustments to accounting net profit or loss required under the legislation for the calculation of GloBE income in subsequent periods. In addition, the Company applies the temporary exception to the recognition and disclosure of deferred tax assets and liabilities under K-IFRS 1012, and therefore does not recognize deferred tax assets or liabilities related to the GloBE rules, nor does it disclose information related thereto.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**48. <u>Contingencies and commitments</u>**

(a) Insurance agreement

As of December 31, 2025, the total number and amount of insurance contracts held by the Company are 6,787,026 contracts and W178,659,167 million, respectively (6,662,924 contracts and W181,660,251 million, respectively for the year ended December 31, 2024).

(b) Reinsurance agreements

As of December 31, 2025, the Company held reinsurance contracts with 10 domestic and global reinsurance companies, including Korean Reinsurance Company and Reinsurance Group of America Incorporated ("RGA") for insurance contracts that cover cancer, cerebrovascular and heart disease (DP), critical illness (CI), death and disaster, and dementia. For life insurance contracts, the Company held coinsurance contracts with Korean Reinsurance Co., Ltd., Swiss Reinsurance Co. ("Swiss Re"), and RGA, which proportionally reinsures insurance risks and interest rate risks.

(c) Pending litigations

As of December 31, 2025, the Company has 90 pending litigations (Total claim amounts of W9,736 million). Among these, provisions related to the litigation were accounted for W300 million, and liabilities for incurred claims related to insurance claims were accounted for W5,732 million. As of December 31, 2025, the result of litigation is unpredictable.

(d) Bank overdraft agreement

As of December 31, 2025, the Company has bank overdraft agreements with Shinhan Bank. The limit on bank overdraft is W 100,000 million (W 100,000 million as of December 31, 2024).

(e) Unused credit provided and capital commitments

As of December 31, 2025, the Company's unused credit provided and capital commitments amounted to W373,782 million and W1,304,582 million, respectively (W164,307 million and W1,354,692 million, respectively as of December 31, 2024).

(f) Other commitments

As of December 31, 2025 and 2024, the details of payment guarantee are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Guarantee provider** |  | **2025** | **2024** | **Type of guarantee** |
| Seoul Guarantee Insurance Co., Ltd. | W | &nbsp;&nbsp;564 | 1,452 | Guarantee deposit etc. |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**49. <u>Related parties</u>**

(a) Related parties as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **The parent company** | &nbsp;&nbsp;Shinhan Financial Group |
| **Subsidiaries** | &nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan LifeCare Co., Ltd. |
|  | &nbsp;&nbsp;Miraeasset Maps Global Infra Private Special Asset Trust 2 |
|  | &nbsp;&nbsp;Shinhan AIM Credit Fund 3 |
|  | &nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A |
|  | &nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B |
|  | &nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 |
|  | &nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 |
|  | &nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 |
|  | &nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust |
|  | &nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust |
|  | &nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust |
|  | &nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) |
|  | &nbsp;&nbsp;Pinestreet BDC Global Corporate FoF 38 (\*) |
|  | &nbsp;&nbsp;Pinestreet IG Global Corporate FoF 39 (\*) |
|  | &nbsp;&nbsp;Shinhan BDC OCIC Private investment Trust No.1 (H) (\*) |
|  | &nbsp;&nbsp;Shinhan SLAMS TPA Private Fund (\*) |
|  | &nbsp;&nbsp;Shinhan Apollo SFG Private Investment Trust No.1(USD) (\*) |
|  | &nbsp;&nbsp;Apollo SFG IG Short Duration Fund, L.P. (\*) |
|  | &nbsp;&nbsp;Shinhan Apollo ADS Private Investment Trust No.1(H) (\*) |
|  | &nbsp;&nbsp;Shinhan BDC OCIC Private Investment Trust No.2(H) (\*) |
| **Entities under common control** | &nbsp;&nbsp;Shinhan Bank Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Securities Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Card Co., Ltd. |
|  | &nbsp;&nbsp;Jeju Bank |
|  | &nbsp;&nbsp;Shinhan DS |
|  | &nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Capital Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Savings Bank |
|  | &nbsp;&nbsp;Shinhan Fund Partners |
|  | &nbsp;&nbsp;SHC Management Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan REITs Management Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. |
|  | &nbsp;&nbsp;Shinhan EZ General Insurance, Ltd. |
|  | &nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|  | &nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**<u>49. Related parties (continued)</u>**

(a) Related parties as of December 31, 2025 are as follows: (continued)

---

| | |
|:---|:---|
| **Entities under common control (continued)** | &nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4 |
|  | &nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 |
|  | &nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund I |
|  | &nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 |
|  | &nbsp;&nbsp;One Shinhan Futures Fund 1 |
|  | &nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 |
|  | &nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.15 |
|  | &nbsp;&nbsp;Shinhan AIM FoF Fund 4 |
|  | &nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund II |
|  | &nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.13 |
|  | &nbsp;&nbsp;Shinhan AIM FoF Fund 6-A |
|  | &nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust |
|  | &nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 |
|  | &nbsp;&nbsp;One Shinhan Futures Fund 2 |
|  | &nbsp;&nbsp;SH BNPP Startup Venture Alpha Specialized Investment Private Equity Mixed Asset Trust No.1 |
|  | &nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 |
|  | &nbsp;&nbsp;Shinhan AIM Investment Finance Specialized Investment Trust No. 1 |
|  | &nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III |
|  | &nbsp;&nbsp;SH Startup Venture Specialized Investment Private Equity Trust No.4 |
|  | &nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A |
|  | &nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 1 |
|  | &nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  |
|  | &nbsp;&nbsp;SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd |
|  | &nbsp;&nbsp;One Shinhan Futures Fund 3 |
|  | &nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 |
|  | &nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 |
|  | &nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 2 |
|  | &nbsp;&nbsp;Shinhan global flagship venture fund 1 |
|  | &nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**<u>49. Related parties (continued)</u>**

(a) Related parties as of December 31, 2025 are as follows: (continued)

---

| | |
|:---|:---|
| **Entities under common control (continued)** | &nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 |
|  | SH Venture Private Investment Trust No.6 |
|  | &nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 |
|  | &nbsp;&nbsp;Shinhan hyper connect venture fund Ι |
|  | &nbsp;&nbsp;Shinhan hyper future's venture fund 1 |
|  | &nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 |
|  | &nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 |
|  | &nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) |
|  | &nbsp;&nbsp;SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 (\*) |
|  | &nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) (\*) |
|  | &nbsp;&nbsp;Shinhan SLAMS Co-Investment Private Investment Trust No.1 (\*) |
| **Associates** | &nbsp;&nbsp;iPIXEL Co., Ltd. |
|  | &nbsp;&nbsp;Findvalue JD Fund No.1 |
| **Associates of entities under common control** | &nbsp;&nbsp;SBC PFV Co., Ltd  |
|  | &nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |
|  | &nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 |
|  | &nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |
|  | &nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |
|  | &nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 |
|  | &nbsp;&nbsp;Macquarie Korea Opportunities Fund(MKOF) |
|  | &nbsp;&nbsp;SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.1 |
|  | &nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.2 |
|  | &nbsp;&nbsp;SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative] |
|  | &nbsp;&nbsp;PCC Amberstone Private Equity Fund I |
|  | &nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |
|  | &nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|  | &nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |
|  | &nbsp;&nbsp;SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. |
|  | &nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |
|  | &nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 (\*) |
|  | &nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |
|  | &nbsp;&nbsp;Songpa Biz-Cluster PFV Co.,Ltd. |
|  | &nbsp;&nbsp;Finflow (\*) |
| **Others** | &nbsp;&nbsp;Shinhan Life Shining Foundation |

---

(\*) It was newly included as a related party during the year ended December 31, 2025.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| **The parent company** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;Securities at fair value through other comprehensive income | W | - | 29898 |
|  | &nbsp;&nbsp;Accrued income |  | - | 167 |
|  | &nbsp;&nbsp;Credit loss allowance |  | - | (13) |
|  | &nbsp;&nbsp;Current tax assets |  | 5661 | 82404 |
|  | &nbsp;&nbsp;Current tax liabilities |  | 14019 | 77 |
|  | &nbsp;&nbsp;Accrued expenses |  | 19101 | 12466 |
| **Subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | &nbsp;&nbsp;Lease deposits received |  | 122 | - |
|  | &nbsp;&nbsp;Accrued expenses |  | 3508 | 3614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. | &nbsp;&nbsp;Accrued income |  | - | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. | &nbsp;&nbsp;Lease deposits received |  | 99 | 96 |
| **Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 39002 | 68608 |
|  | &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 41395 | 37234 |
|  | &nbsp;&nbsp;Lease deposits paid |  | 4681 | 4536 |
|  | &nbsp;&nbsp;Right-of-use assets |  | 2349 | 3160 |
|  | &nbsp;&nbsp;Derivative assets |  | 1737 | 1425 |
|  | &nbsp;&nbsp;Derivative liabilities  |  | 139508 | 108165 |
|  | &nbsp;&nbsp;Lease liabilities  |  | 2758 | 3452 |
|  | &nbsp;&nbsp;Accrued expenses |  | 1393 | 93 |
|  | &nbsp;&nbsp;Investment contract liabilities (\*2) |  | 5290 | 144698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 108942 | 24231 |
|  | &nbsp;&nbsp;Accrued income |  | 2 | 2 |
|  | &nbsp;&nbsp;Derivative assets |  | 5013 | 25593 |
|  | &nbsp;&nbsp;Account receivables |  | 3973 | 1391 |
|  | &nbsp;&nbsp;Derivative liabilities  |  | 29865 | 11263 |
|  | &nbsp;&nbsp;Accrued expenses |  | 5840 | 2238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;Account receivables |  | 36 | 33 |
|  | &nbsp;&nbsp;Accrued income |  | 1 | 3 |
|  | &nbsp;&nbsp;Credit loss allowance |  | - | (19) |
|  | &nbsp;&nbsp;Accrued expenses |  | 3552 | 2804 |
|  | &nbsp;&nbsp;Investment contract liabilities (\*2) |  | - | 8409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jeju Bank | &nbsp;&nbsp;Cash and due from banks at amortized cost |  | 102 | 86 |
|  | &nbsp;&nbsp;Investment contract liabilities (\*2) |  | - | 14339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;Accrued expenses |  | 340 | 734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 95 | 8754 |
|  | &nbsp;&nbsp;Accrued expenses |  | 437 | 503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | &nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 99 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Fund Partners | &nbsp;&nbsp;Accrued expenses |  | 186 | 197 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Associates of entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd | &nbsp;&nbsp;Loans | W | 78300 | - |
|  | &nbsp;&nbsp;Accrued income |  | 28 | - |
|  | &nbsp;&nbsp;Credit loss allowance |  | (673) | - |
|  | &nbsp;&nbsp;Unused credit commitments |  | 599 | - |
| **Total assets** | **Total assets** | W | 290743 | 287783 |
| **Total liabilities**  | **Total liabilities**  | W | 226617 | 313148 |

---

(\*1) It is a financial instrument related to consolidated structured entities of related parties.

(\*2) It is policyholders' reserve for retirement pension contracts.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Related party** | &nbsp;&nbsp;**Account** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**The parent company** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;&nbsp;&nbsp;Interest income  | &nbsp;&nbsp;W | &nbsp;&nbsp;92 | &nbsp;&nbsp;870 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | &nbsp;&nbsp;(13) | &nbsp;&nbsp;(2) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;4879 | &nbsp;&nbsp;4879 |
| &nbsp;&nbsp;**Subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest income  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;1 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other income |  | &nbsp;&nbsp;418 | &nbsp;&nbsp;702 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract commissions |  | &nbsp;&nbsp;50563 | &nbsp;&nbsp;44687 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  | &nbsp;&nbsp;- | &nbsp;&nbsp;2 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other expense |  | &nbsp;&nbsp;- | &nbsp;&nbsp;21 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;11162 | &nbsp;&nbsp;10004 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;12 | &nbsp;&nbsp;405 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Other income |  | &nbsp;&nbsp;218 | &nbsp;&nbsp;168 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income |  | &nbsp;&nbsp;1103 | &nbsp;&nbsp;2778 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;2936 | &nbsp;&nbsp;868 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit Fund 3 | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;6738 | &nbsp;&nbsp;6928 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;7215 | &nbsp;&nbsp;5889 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;3076 | &nbsp;&nbsp;2460 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;6984 | &nbsp;&nbsp;2837 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;4060 | &nbsp;&nbsp;3937 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;3973 | &nbsp;&nbsp;419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;1442 | &nbsp;&nbsp;830 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pinestreet BDC Global Corporate FoF 38 | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;5184 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Pinestreet IG Global Corporate FoF 39 | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;909 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan BDC OCIC Private investment Trust No.1 (H) | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;4326 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;281 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Apollo SFG Private Investment Trust No.1(USD) | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income  |  | &nbsp;&nbsp;116 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;855 | &nbsp;&nbsp;1871 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Distribution income (\*1) |  | &nbsp;&nbsp;151 | &nbsp;&nbsp;159 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Fee and commission income  |  | &nbsp;&nbsp;8 | &nbsp;&nbsp;6 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Gains related to derivatives  |  | &nbsp;&nbsp;23058 | &nbsp;&nbsp;779 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other income |  | &nbsp;&nbsp;- | &nbsp;&nbsp;88 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract commissions |  | &nbsp;&nbsp;14863 | &nbsp;&nbsp;8004 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  | &nbsp;&nbsp;95 | &nbsp;&nbsp;90 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses related to derivatives  |  | &nbsp;&nbsp;31832 | &nbsp;&nbsp;135123 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;5354 | &nbsp;&nbsp;4847 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other expense |  | &nbsp;&nbsp;80 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;182 | &nbsp;&nbsp;224 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income  |  | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Gains related to derivatives  |  | &nbsp;&nbsp;1390 | &nbsp;&nbsp;167 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses related to derivatives |  | &nbsp;&nbsp;104 | &nbsp;&nbsp;3155 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Commissions paid, etc. |  | &nbsp;&nbsp;1135 | &nbsp;&nbsp;1448 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **2025** | **2024** |
| **Entities under common control (continued)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;Interest income | W | - | 379 |
|  | &nbsp;&nbsp;Fees and commission income |  | 45 | 76 |
|  | &nbsp;&nbsp;Other income |  | - | 13 |
|  | &nbsp;&nbsp;Insurance contract commissions |  | 9645 | 11132 |
|  | &nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | (19) | - |
|  | &nbsp;&nbsp;Commissions paid, etc. |  | 5235 | 4710 |
| &nbsp;&nbsp;&nbsp;Jeju Bank | &nbsp;&nbsp;Insurance contract commissions |  | 3 | 9 |
|  | &nbsp;&nbsp;Commissions paid, etc. |  | 12 | 13 |
| &nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;Commissions paid, etc. |  | 29126 | 27671 |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;Distribution income (\*1) |  | 88 | 1986 |
|  | &nbsp;&nbsp;Commissions paid, etc. |  | 9375 | 9028 |
| &nbsp;&nbsp;&nbsp;Shinhan Savings Bank | &nbsp;&nbsp;Fees and commission income  |  | 5 | 20 |
|  | &nbsp;&nbsp;Commissions paid, etc. |  | 35 | - |
| &nbsp;&nbsp;&nbsp;Shinhan Fund Partners | &nbsp;&nbsp;Commissions paid, etc. |  | 733 | 867 |
| &nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | &nbsp;&nbsp;Commissions paid, etc. |  | 85 | 102 |
| &nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance, Ltd. | &nbsp;&nbsp;Fees and commission income  |  | 5 | - |
|  | &nbsp;&nbsp;Commissions paid, etc. |  | 7 | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A | &nbsp;&nbsp;Distribution income |  | 4454 | 3641 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Investment Finance Specialized Investment Trust No. 1 | &nbsp;&nbsp;Distribution income |  | 182 | 354 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 | &nbsp;&nbsp;Distribution income |  | 740 | 968 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A | &nbsp;&nbsp;Distribution income |  | 36 | 671 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 | &nbsp;&nbsp;Distribution income |  | 2711 | 4979 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | 768 | 760 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 826 | 1031 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 556 | 636 |
| &nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 | &nbsp;&nbsp;Distribution income |  | 285 | 400 |
| &nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4 | &nbsp;&nbsp;Distribution income |  | 2305 | 2943 |
| &nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 | &nbsp;&nbsp;Distribution income |  | 1700 | 1875 |
| &nbsp;&nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 2458 | 2376 |
| &nbsp;&nbsp;&nbsp;SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 1096 | 1098 |
| &nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 | &nbsp;&nbsp;Distribution income |  | 1249 | 3758 |
| &nbsp;&nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust | &nbsp;&nbsp;Distribution income |  | 1170 | 1205 |
| &nbsp;&nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | 182 | 189 |
| &nbsp;&nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 1363 | 1446 |
| &nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 | &nbsp;&nbsp;Distribution income |  | 1550 | 1896 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(c) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **2025** | **2024** |
| **Entities under common control (continued)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  | &nbsp;&nbsp;Distribution income | W | 90 | - |
| &nbsp;&nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) | &nbsp;&nbsp;Distribution income |  | 622 | 604 |
| &nbsp;&nbsp;&nbsp;SHBNPP Startup Venture Alpha Specialized Private Equity Fund 2nd | &nbsp;&nbsp;Distribution income |  | - | 48 |
| &nbsp;&nbsp;&nbsp;IMM Long-term Solution Private Equity Fund (\*2) | &nbsp;&nbsp;Distribution income |  | - | 22054 |
| &nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 | &nbsp;&nbsp;Distribution income |  | 684 | 236 |
| &nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 | &nbsp;&nbsp;Distribution income |  | 126 | 122 |
| &nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 | &nbsp;&nbsp;Distribution income |  | 1122 | 304 |
| &nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 | &nbsp;&nbsp;Distribution income |  | - | 1530 |
| &nbsp;&nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) | &nbsp;&nbsp;Distribution income |  | 39 | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund II | &nbsp;&nbsp;Distribution income |  | 2 | - |
| &nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 248 | - |
| &nbsp;&nbsp;&nbsp;**Associates of entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH | &nbsp;&nbsp;Distribution income |  | 1540 | 1554 |
| &nbsp;&nbsp;&nbsp;Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (\*2) | &nbsp;&nbsp;Distribution income |  | - | 445 |
| &nbsp;&nbsp;&nbsp;Midas Asset Global CRE Debt Private Fund No.6 (\*2) | &nbsp;&nbsp;Distribution income |  | - | 1967 |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 | &nbsp;&nbsp;Distribution income |  | 535 | 1937 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B | &nbsp;&nbsp;Distribution income |  | 969 | 61 |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 839 | 903 |
| &nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 | &nbsp;&nbsp;Distribution income |  | 30 | 67 |
| &nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 | &nbsp;&nbsp;Distribution income |  | - | 85 |
| &nbsp;&nbsp;&nbsp;SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative] | &nbsp;&nbsp;Distribution income |  | 62 | 72 |
| &nbsp;&nbsp;&nbsp;SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. | &nbsp;&nbsp;Distribution income |  | 364 | 168 |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust | &nbsp;&nbsp;Distribution income |  | 168 | 212 |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I | &nbsp;&nbsp;Distribution income |  | 321 | 692 |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund | &nbsp;&nbsp;Distribution income |  | - | 53 |
| &nbsp;&nbsp;&nbsp;Finflow | &nbsp;&nbsp;Other income (\*3) |  | 541 | - |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | &nbsp;&nbsp;Provision for (reversal of) credit loss allowance |  | 673 | (59) |
|  | &nbsp;&nbsp;Interest income |  | 2582 | 3281 |
|  | &nbsp;&nbsp;Provision for unused credit commitments |  | 599 | - |
| **Others** |  |  |  |  |
| Shinhan Life Shining Foundation | &nbsp;&nbsp;Rental income |  | 31 | 56 |
|  | &nbsp;&nbsp;Donations |  | 31 | 2546 |
| **Total income** |  | W | 109425 | 101546 |
| **Total expense**  |  | W | 175594 | 268277 |

---

(\*1) It is investment gains and losses from consolidated structured entities of the related party.

(\*2) It has been removed from the related parties during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

(\*3) Shares of Finflow were acquired through a contribution in kind during the year ended December 31, 2025, and a disposal gain of W541 million arising from the contribution in kind was included in non-operating income.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**The parent company** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;W | - | - | - | - | - | - | 378307 |
| &nbsp;&nbsp;**Subsidiaries** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. |  | - | - | - | - | 15000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. |  | - | - | - | - | 50000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A |  | - | - | - | - | 120 | 1397 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B |  | - | - | - | - | 9002 | 1827 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 |  | - | - | - | - | - | 39012 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 23 |  | - | - | - | - | 1260 | 13253 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 |  | - | - | - | - | 13886 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust |  | - | - | - | - | 28340 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust |  | - | - | - | - | 21957 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust |  | - | - | - | - | 44941 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) |  | - | - | - | - | 7051 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Pinestreet BDC Global Corporate FoF 38 |  | - | - | - | - | 285091 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Pinestreet IG Global Corporate FoF 39 |  | - | - | - | - | 96580 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan BDC OClC Private investment Trust No.1 (H) |  | - | - | - | - | 283751 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan SLAMS TPA Private Fund |  | - | - | - | - | 100000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Apollo SFG Private Investment Trust No.1(USD) |  | - | - | - | - | 110830 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Apollo ADS Private Investment Trust No.1(H) |  | - | - | - | - | 48775 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan BDC OCIC Private Investment Trust No.2(H) |  | - | - | - | - | 48775 | - | - |
|  |  | - | - | - | - | 1165359 | 55489 | - |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. (\*1)(\*2) |  | - | 789 | - | - | 4972 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |  | - | - | - | - | 88 | 8780 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. |  | - | - | - | - | 99 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust |  | - | - | - | - | - | 1247 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust |  | - | - | - | - | - | 1793 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;SHBNPP YoungNam LNG Thermal Power Plant Private Special Asset Investment Trust |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1759 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 344 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.4 |  | - | - | - | - | 6291 | 976 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 |  | - | - | - | - | 191 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust |  | - | - | - | - | 2095 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund I |  | - | - | - | - | 11 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 |  | - | - | - | - | 560 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 |  | - | - | - | - | - | 2216 | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**Entities under common control (continued)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 | &nbsp;&nbsp;W | - | - | - | - | 4545 | 3303 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.15 |  | - | - | - | - | 652 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 4 |  | - | - | - | - | 793 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund II |  | - | - | - | - | 31 | 430 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 |  | - | - | - | - | - | 2040 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.13 |  | - | - | - | - | - | 1472 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A |  | - | - | - | - | 11347 | 32 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust |  | - | - | - | - | 2294 | 381 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 |  | - | - | - | - | - | 2902 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 1328 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III |  | - | - | - | - | 135 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Specialized Investment Private Equity Trust No.4 |  | - | - | - | - | - | 3343 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 |  | - | - | - | - | 559 | 1232 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A |  | - | - | - | - | 13033 | 547 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 1 |  | - | - | - | - | 300 | 1800 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  |  | - | - | - | - | 172 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 |  | - | - | - | - | 2000 | 871 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 |  | - | - | - | - | 260 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Shinhan Connect New Technology Investment Fund 2 |  | - | - | - | - | 80 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan global flagship venture fund 1 |  | - | - | - | - | 5200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 |  | - | - | - | - | 1705 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 |  | - | - | - | - | 2041 | 894 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Venture Private Investment Trust No.6 |  | - | - | - | - | 6000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 |  | - | - | - | - | - | 3190 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper connect venture fund Ι |  | - | - | - | - | 7200 | 524 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper future's venture fund 1 |  | - | - | - | - | 211 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 |  | - | - | - | - | 1277 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 |  | - | - | - | - | 7679 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) |  | - | - | - | - | - | 1754 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 |  | - | - | - | - | 12448 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) |  | - | - | - | - | 4727 | 686 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan SLAMS Co-Investment Private Investment Trust No.1 |  | - | - | - | - | 16757 | - | - |
|  |  | - | 789 | - | - | 115753 | 43844 | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| **Associates of entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | &nbsp;&nbsp;W | - | - | 78300 | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | - | - | - | - | 3297 | 3611 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 |  | - | - | - | - | 4258 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | - | - | - | - | - | 423 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 |  | - | - | - | - | - | 797 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | - | - | - | - | 2 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.2 |  | - | - | - | - | - | 1219 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | - | - | - | - | - | 3800 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | - | - | - | - | - | 326 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1683 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | - | - | - | - | 1320 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 562-1 |  | - | - | - | - | 10000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | - | - | - | - | 4338 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finflow (\*3) |  | - | - | - | - | 1499 | - | - |
|  |  | - | - | 78300 | - | 24714 | 11859 | - |
|  | &nbsp;&nbsp;W | - | 789 | 78300 | - | 1305826 | 111192 | 378307 |

---

(\*1) Interest expense of W78 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2025.

(\*2) Fund transactions related to consolidated structured entities of related parties are included.

(\*3) Acquisition through contributions in kind is included.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;**The parent company** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group | &nbsp;&nbsp;W | - | - | - | - | - | - | 315342 |
| &nbsp;&nbsp;**Subsidiaries** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miraeasset Maps Global Infra Private Special Asset Trust 2 |  | - | - | - | - | - | 3879 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mirae Asset Maps US Frontier Private Real Estate Investment Trust 5-2 (\*3) |  | - | - | - | - | - | 643 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A |  | - | - | - | - | 6589 | 1049 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B |  | - | - | - | - | 13937 | 1193 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 |  | - | - | - | - | - | 45342 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 |  | - | - | - | - | 9034 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust |  | - | - | - | - | - | 17443 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust |  | - | - | - | - | 29300 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust |  | - | - | - | - | 49691 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) |  | - | - | - | - | 9496 | - | - |
|  |  | - | - | - | - | 118047 | 69549 | - |
| &nbsp;&nbsp;**Entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. (\*1)(\*2) |  | - | 786 | - | - | 538 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |  | - | - | - | - | 152 | 5640 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Private Special Asset Investment Trust |  | - | - | - | - | - | 1212 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Hangbok Ultari BTL Private Special Asset Investment Trust |  | - | - | - | - | - | 1726 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1697 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Good morning BTL Professional Investment Type Private Special Asset Investment Trust No.1 |  | - | - | - | - | - | 338 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Real Estate Investment Trust No.5 |  | - | - | - | - | 5340 | 1000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP US Nevada Photovoltaic Private Special Asset Investment Trust |  | - | - | - | - | 2896 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund I |  |  |  |  |  | - | 22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Infrastructure Professional Investment Type Private Investment Trust 1 |  | - | - | - | - | 2453 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Shinhan Futures Fund 1 |  | - | - | - | - | - | 72 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.2 |  | - | - | - | - | - | 3207 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Global Professional Investment Type Private Investment Trust No.12 |  | - | - | - | - | 873 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.15 |  | - | - | - | - | 783 | 290 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 4 |  | - | - | - | - | 3595 | 247 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 |  | - | - | - | - | 1884 | 15272 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A |  | - | - | - | - | 11528 | 259 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Italy VENETA Infrastructure Loan Professional Investment Type Private Investment Trust |  | - | - | - | - | 1239 | 118 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BNPP Startup Venture Specialized Investment Private Equity Trust No.3 |  | - | - | - | - | 1000 | 2235 | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.1 - - - - - 1,280 -

**<u>49. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Investment Finance Specialized Investment Trust No. 1 | &nbsp;&nbsp;W |  |  |  |  | - | 3613 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III |  | - | - | - | - | 60 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Specialized Investment Private Equity Trust No.4 |  | - | - | - | - | 4000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 |  | - | - | - | - | 3241 | 275 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A |  | - | - | - | - | 16264 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Green Energy Partnership Private Investment Trust No.1  |  | - | - | - | - | 378 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 |  | - | - | - | - | 4000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 |  | - | - | - | - | 1200 | 817 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan global flagship venture fund 1 |  | - | - | - | - | 5200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 |  | - | - | - | - | 2524 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Credit 4-B_Clover2 |  | - | - | - | - | 2644 | 23374 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Venture Private Investment Trust No.6 |  | - | - | - | - | 4000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 |  | - | - | - | - | 8000 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper connect venture fund Ι |  | - | - | - | - | 7200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper future's venture fund 1 |  | - | - | - | - | 564 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 |  | - | - | - | - | 4064 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 |  | - | - | - | - | 10725 | 4073 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IMM Long-term Solution Private Equity Fund (\*3) |  | - | - | - | - | - | 34981 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SH Japan Photovoltaics Private Special Asset Investment Trust No.4(H) |  | - | - | - | - | 30000 | - | - |
|  |  | - | 786 | - | - | 136345 | 101748 | - |
| &nbsp;&nbsp;**Associates of entities under common control** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  |  | - | - | 95000 | 95000 | 1575 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Midas Asset Global CRE Debt Private Fund No.6 (\*3) |  | - | - | - | - | - | 27055 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | - | - | - | - | 1271 | 399 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 |  | - | - | - | - | 2535 | - |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | - | - | - | - | - | 1068 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | - | - | - | - | 450 | 1026 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | - | - | - | - | - | 2238 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 |  |  |  |  |  | - | 197 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 (\*3) |  | - | - | - | - | - | 12194 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.1 |  | - | - | - | - | 2613 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.2 |  | - | - | - | - | 1760 | - | - |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

SHBNPP Japan Photovoltaic Private Special Asset Investment Trust No.2 [Loan-Derivative] - - - - - 38 -

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(d) Significant fund transactions with related parties for the years ended December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  | &nbsp;&nbsp;**Borrowing of funds** | &nbsp;&nbsp;**Borrowing of funds** | **Loan** | **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment in cash** | **Dividend paid** |
|  |  | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Redemption** | **Execution** | **Collection** | **Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collection** | **Dividend paid** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I | &nbsp;&nbsp;W | - | - | - | - | 247 | 2712 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | - | - | - | - | - | 1635 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. |  | - | - | - | - | 3516 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 |  | - | - | - | - | 2200 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | - | - | - | - | 6562 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Songpa Biz-Cluster PFV Co.,Ltd. |  | - | - | - | - | 2500 | - | - |
|  |  | - | - | 95000 | 95000 | 25229 | 48562 | - |
|  | &nbsp;&nbsp;W | - | 786 | 95000 | 95000 | 279621 | 219859 | 315342 |

---

(\*1) Interest expense of W90 million according to the lease contract with Shinhan Bank, a related party, was recognized for the year ended December 31, 2024.

(\*2) Fund transactions related to consolidated structured entities of related parties are included.

(\*3) It has been removed from the related party during the year ended December 31, 2024, and the amount refers to the transactions before its removal.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(e) Unused capital commitments and loan commitment with related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related Party** | **Commitment** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 7-A | Capital commitment | W | 7006 | 9297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 6-B | Capital commitment |  | 7588 | 14003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private fund of funds Trust 5 | Capital commitment |  | 26503 | 29333 |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Global Private Real Estate Debt Fund 21 | Capital commitment |  | 19650 | 27089 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program REC Private Investment Trust | Capital commitment |  | 13488 | 41160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PEF Private Investment Trust | Capital commitment |  | 29272 | 51156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan KKR Global Program PDF Private Investment Trust | Capital commitment |  | 113357 | 159348 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan LCP X Private Investment Trust No.4(H) | Capital commitment |  | 27614 | 32367 |
|  |  |  | 244478 | 363753 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. (\*) | Capital commitment |  | 871 | 6458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. (\*) | Capital commitment |  | 891 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 4 | Capital commitment |  | 295 | 268 |
| &nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Europe Corporate Loan Professional Investment Type Private Investment Trust No.4 | Capital commitment |  | 8018 | 7271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 6-A | Capital commitment |  | 19754 | 30802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Social Enterprise Investment Fund III | Capital commitment |  | - | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Green New Deal Energy Special Asset Private Investment Trust No.3 | Capital commitment |  | 6969 | 7528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Real Estate Investment Trust No.22-A | Capital commitment |  | 821 | 7271 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Startup Venture Private Equity Trust No.5 | Capital commitment |  | 2000 | 4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Greenway Corporate Investment FUND NO.1 | Capital commitment |  | 620 | 880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan global flagship venture fund 1 | Capital commitment |  | 5200 | 10400 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH BGT Private Special Asset Investment Trust No.2 | Capital commitment |  | 11195 | 12871 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Venture Private Investment Trust No.6 | Capital commitment |  | 6000 | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan One Flagship Real Estate Development Fund 1 | Capital commitment |  | - | 5745 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper connect venture fund Ι | Capital commitment |  | 15520 | 22720 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan hyper future's venture fund 1 | Capital commitment |  | - | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Special Situation Private Real Estate Feeder Investment Trust No.1 | Capital commitment |  | 2519 | 3796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan CIS III Private Investment Trust No.1 | Capital commitment |  | 10281 | 18840 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH SLAMS Infrastructure Co-Investment Private Special Asset Investment Trust No.1 | Capital commitment |  | 30144 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan HarbourVest Infra Secondary Investment Trust. No.3(KRW) | Capital commitment |  | 52804 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan SLAMS Co-Investment Private Investment Trust No.1 | Capital commitment |  | 12604 | - |
|  |  |  | 186506 | 151295 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Associates of entities under common control** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd  | Loan commitment |  | 171700 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;SHBNPP Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust | Capital commitment |  | 3878 | 3880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust | Capital commitment |  | 182 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment Trust 517-1 | Capital commitment |  | 880 | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B | Capital commitment |  | 2914 | 6067 |
|  |  |  | 179554 | 12329 |
|  |  | W | 610538 | 527377 |

---

(\*) It is an unused capital commitment related to consolidated structured entities of the related party.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**<u>49. Related parties (continued)</u>**

(f) Unsettled commitments of derivatives with related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related Party** | **Type of Derivatives** |  | **2025** | **2024** |
| **Entities under common control** |  |  |  |  |
| &nbsp;&nbsp;Shinhan Bank Co., Ltd. | &nbsp;&nbsp;Currency swap | W | 633761 | 719051 |
|  | &nbsp;&nbsp;Currency forward |  | 597642 | 455038 |
|  | &nbsp;&nbsp;Interest rate forward |  | 144447 | 20010 |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Equity options |  | 29587 | 131774 |
|  | &nbsp;&nbsp;Interest rate forward |  | 557964 | 557964 |
|  |  | W | 1963401 | 1883837 |

---

(g) Details of bond transactions with a key related party for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Related Party** |  | **2025** | **2025** | **2024** | **2024** |
| **Related Party** |  | **Buy** | **Sell** | **Buy** | **Sell** |
| **Entities under common control** |  |  |  |  |  |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | W | 520,060 | 311,108 | 862,553 | 524,845 |

---

(h) Details of acquisitions and disposal of assets with key related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Related Party** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Account** |  | **2025** | **2025** | **2024** | **2024** |
| **Related Party** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Account** |  | **Acquisition** | **Disposal** | **Acquisition** | **Disposal** |
| **Subsidiary** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | Right-of-use assets | W | - | - | 147 | 119 |
| **Entities under common control** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank Co., Ltd. | &nbsp;&nbsp;&nbsp;Right-of-use assets |  | 35 |  | 221 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;Equipment |  | 288 | - | 148 | - |
|  | &nbsp;&nbsp;&nbsp;Development costs |  | 634 | - | 981 | - |
|  | &nbsp;&nbsp;&nbsp;Software |  | 310 | - | 510 | - |
|  | &nbsp;&nbsp;&nbsp;Other intangible assets |  | 5685 | 615 | 419 | 464 |
|  | &nbsp;&nbsp;&nbsp;Other property and equipment |  | 186 | - | 139 | - |
|  |  |  | 7138 | 615 | 2418 | 492 |
|  |  | W | 7138 | 615 | 2565 | 611 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won, except per share data)*

**<u>49. Related parties (continued)</u>**

(i) Details of collateral transactions with related parties

*i) The collateral provided by the Company to related parties as of December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Provided to** | **Collateral assets** |  | **Collateral value(\*)** | **Collateral value(\*)** |
| **Provided to** | **Collateral assets** |  | **2025** | **2024** |
| **Entities under common control** |  |  |  |  |
| Shinhan Bank Co., Ltd. | &nbsp;&nbsp;Government bonds | W | 146627 | 115966 |
| Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Bonds, Stocks and beneficiary certificates |  | 30537 | - |
|  |  | W | 177164 | 115966 |

---

(\*) Collateral value is equivalent to the carrying amount of the collateral assets.

*ii) The collateral provided by a related party to the Company as of December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Provided by** | **Collateral asset** |  | **Collateral value** | **Collateral value** |
| **Provided by** | **Collateral asset** |  | **2025** | **2024** |
| **Subsidiary** |  |  |  |  |
| Shinhan Financial Plus Co., Ltd. | Deposits | W | 30 | 30 |
| **Entities under common control** |  |  |  |  |
| Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Securities |  | - | 12501 |
| Shinhan Card Co., Ltd. | &nbsp;&nbsp;Deposits |  | 10 | 10 |
|  |  | W | 40 | 12541 |

---

(j) Details of key management personnel compensation for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Short-term employee benefits | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1,079 | 1,219 |
| Share-based payment transactions |  | 1,727 | 848 |
| Retirement benefits |  | 40 | 40 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2,846 | 2,107 |

---

(k) As of December 31, 2025, the amount of credit card allowance commitments provided by Shinhan Card Co., Ltd., a related party, is W7,500 million.

**50. <u>Earnings per share</u>**

Earnings per share for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Profit for the year | W | 515916 | 533681 |
| Less: Interest to hybrid bonds |  | 6633 | 10800 |
| Net profit attributable to common shares | W | 509283 | 522881 |
| Weighted average number of common shares <br> outstanding  |  | 115,654,859 shares | 115,654,859 shares |
| Basic earnings per share in won (\*) | W | 4403 | 4521 |

---

(\*) Because the Company does not have any potential dilutive common shares and stock options do not have dilutive effect, the diluted earnings per share are the same as the basic earnings per share for the years ended December 31, 2025 and 2024.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**51. <u>Statements of cash flows</u>**

(a) Adjustments to revenue and expenses for the year ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Interest income | W | (1464548) | (1512259) |
| &nbsp;&nbsp;Interest expense |  | 66848 | 78142 |
| &nbsp;&nbsp;Dividend income |  | (37769) | (32510) |
| Income taxes |  | 280621 | 201927 |
| Insurance revenue |  | (3071866) | (2847305) |
| Reinsurance revenue |  | (164353) | (52963) |
| Insurance finance income from insurance contracts issued |  | (204421) | (397712) |
| Insurance finance income from reinsurance contracts held |  | (68751) | (24101) |
| Insurance service expenses |  | 2216949 | 2010662 |
| Reinsurance service expenses |  | 150275 | 57843 |
| Insurance finance expenses from insurance contracts issued |  | 2990559 | 2103148 |
| Insurance finance expenses from reinsurance contracts held |  | 57872 | 24045 |
| Gains on financial assets at fair value through profit or loss |  | (1345644) | (663394) |
| Losses on financial assets at fair value through profit or loss |  | 268442 | 629039 |
| &nbsp;&nbsp;&nbsp;Gains on disposal of securities at fair value through other comprehensive income |  | (81508) | (79735) |
| &nbsp;&nbsp;&nbsp;Losses on disposal of securities measured at fair value through other comprehensive income |  | 64118 | 96475 |
| &nbsp;&nbsp;&nbsp;Gains on disposal of securities at amortized cost |  | - | (22284) |
| &nbsp;&nbsp;&nbsp;Losses on disposal of securities at amortized cost |  | - | 565 |
| Provisions for credit losses |  | 4994 | 6696 |
| Gains related to derivatives |  | (79833) | (6677) |
| Losses related to derivatives |  | 265230 | 520521 |
| Gain on foreign currency translation  |  | (231851) | (579956) |
| Loss on foreign currency translation  |  | 100160 | 171 |
| Gain (loss) on foreign currency transaction |  | 3481 | (17421) |
| Amortization of right-of-use assets |  | 34372 | 31676 |
| Depreciation |  | 17473 | 17984 |
| Amortization of intangible assets  |  | 74718 | 73124 |
| Employee costs |  | 15916 | 11036 |
| Rental income  |  | (29) | (36) |
| Losses on provisions  |  | 39444 | 114 |
| Non-operating income |  | (1424) | (468) |
| Non-operating expense  |  | 1820 | 2776 |
|  | W | (98705) | (370877) |

---

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**51. <u>Statements of cash flows (continued)</u>**

(b) Changes in assets and liabilities from operating activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;Due from banks at amortized cost | W | 70197 | (60966) |
| Financial assets at fair value through profit or loss |  | 411196 | (77066) |
| Loans at amortized cost |  | 550388 | 808329 |
| Other financial assets |  | (11464) | 51368 |
| Other assets |  | (1603) | 2750 |
| Net defined benefit liabilities |  | (107) | (5990) |
| Insurance contract liabilities |  | (669776) | (1175687) |
| Reinsurance contract liabilities |  | (614999) | (46839) |
| Investment contract liabilities |  | 170080 | (559350) |
| Provisions |  | (8181) | (4648) |
| Derivative liabilities  |  | 4530 | (1100) |
| Other financial liabilities |  | 194749 | 223893 |
| Other liabilities  |  | (3091) | (1275) |
|  | W | 91919 | (846581) |

---

(c) Cash and cash equivalents reported in the accompanying separate statements of cash flows as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2025** | **2024** |
| Cash and due from banks at amortized cost | W | 2286855 | 1528871 |
| Adjustments:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Available deposits of which expiration date exceeds<br> 3 months from the acquisition date |  | (598026) | (677950) |
| Restricted deposit |  | (84136) | (73717) |
|  | W | 1604693 | 777204 |

---

(d) The Company has prepared its statements of cash flows using the indirect method, and the significant non-cash activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| Changes in gains(losses) on valuation of securities at fair <br>&nbsp;&nbsp;&nbsp;&nbsp;value through other comprehensive income | W | (2073230) | 994881 |
| Write-off of loans at amortized costs |  | 13075 | 10664 |
| Recognition of right-of-use assets and lease liabilities |  | 23022 | 15291 |
| Additional provision for restoration |  | 2309 | 277 |
| Interests payable for hybrid bonds |  | - | 1497 |

---

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**51. <u>Statements of cash flows (continued)</u>**

(e) Changes in liabilities resulting from financing activities for the years ended December 31, 2025 and 2024 are as

follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2025 (\*1)** | **2025 (\*1)** | **2025 (\*1)** |
|  |  | **Debentures (\*2)** | **Lease liabilities** | **Total** |
| Beginning balance | W | 299487 | 77399 | 376886 |
| Changes in cash flows |  | 498594 | (33088) | 465506 |
| Amortization |  | 311 | 1999 | 2310 |
| Others  |  | - | 20028 | 20028 |
| Ending balance | W | 798392 | 66338 | 864730 |

---

(\*1) Changes of other financial liabilities are not included.

(\*2) Changes of borrowings are included.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024 (\*1)** | **2024 (\*1)** | **2024 (\*1)** |
|  |  | **Debentures (\*2)** | **Lease liabilities** | **Total** |
| Beginning balance | W | 299331 | 91566 | 390897 |
| Changes in cash flows |  | - | (31149) | (31149) |
| Amortization |  | 156 | 2354 | 2510 |
| Others  |  | - | 14628 | 14628 |
| Ending balance | W | 299487 | 77399 | 376886 |

---

(\*1) Changes of other financial liabilities are not included.

(\*2) Changes of borrowings are included.

------

SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**52. <u>Effects of changes in accounting policies</u>**

K-IFRS No. 1117 requires that, for dividends arising from participating insurance contracts, liabilities be measured using estimates of the related cash flows and discount rates that reflect the assumptions and risks associated with those cash flows.

Specifically, in measuring insurance liabilities, the Company is required to reflect, without undue cost or effort, reasonable and supportable information available faithfully representing the facts without incorporating the Company's own plans or intentions. In addition, the effects of enacted or substantively enacted laws or regulations are reflected in the measurement of insurance liabilities only when such enactment or amendment is substantively certain, and neutral estimates that are free from bias are required to be used in estimating the related cash flows.

Accordingly, insurers do not derive the asset return scenarios used in measuring insurance liabilities (best estimate liabilities, the remaining coverage component) based on item-by-item disposal plans for assets currently held and managed. Instead, such scenarios are determined based on risk-free interest rates that are consistent with the discount rates prescribed under supervisory regulations for discounting the present value of fulfilment cash flows.

In response to these requirements, upon the adoption of K-IFRS No. 1117 in 2023, the Company estimated future dividend cash flows for participating insurance contracts by neutrally reflecting reasonable and supportable information, including the Company's experience statistics such as historical dividend amounts arising from the relevant contracts, as well as management's asset management plans and risk management strategies. In addition, the Company determined whether policyholder dividends would arise by considering expected gains or losses on the disposal of assets only in cases where specific disposal plans for such assets had been finalized by management, such as when assets were disposed of or when concrete disposal plans had been approved by the board of directors. Where policyholder dividends were determined to arise, the related cash flows were reflected in the measurement of insurance liabilities.

As a result of measuring insurance liabilities related to policyholder dividends arising from expected future cash flows of participating insurance contracts in accordance with the requirements of K-IFRS No. 1117, there was no insurance liability required to be recognized by the Company.

The Company concluded that, if dividend payment obligations related to participating insurance contracts were measured in accordance with the requirements of K-IFRS No. 1117 from 2023 when K-IFRS No. 1117 was adopted, such measurement would conflict with the "objective of general purpose financial reporting" as set out in the Conceptual Framework for Financial Reporting and would constitute the "extremely rare circumstances in which compliance with a requirement would be so misleading" as specified in paragraph 19 of K-IFRS No. 1001.

Accordingly, the Company had measured and recognized as liabilities the expected future comprehensive obligations to policyholders (policyholder dividends) arising from unrealized gains or losses on assets as of the end of the reporting period, by applying the methodology prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

**52. <u>Effects of changes in accounting policies (continued)</u>**

Meanwhile, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulation on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by the Company are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

In December 2025, the Financial Supervisory Service, through its response titled "Inquiry Response on the Accounting Treatment of Policyholders' Equity Adjustments (Accounting Departure) by Life Insurance Companies," stated that it is difficult to conclusively determine that applying K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts of life insurance companies would be misleading to users of financial statements. The Financial Supervisory Service further noted that, as K-IFRS No. 1117 has passed its transition guidance period and has become stabilized, there is a need to resolve unnecessary controversies arising from the continued application of accounting departures, and that some views suggest that, if domestic life insurance companies continue to apply accounting departures, Korea may not be regarded as a jurisdiction that has fully adopted IFRS. Taking these considerations into account, the Financial Supervisory Service concluded that it is appropriate to discontinue the application of accounting departures at the current point in time.

Furthermore, the Financial Supervisory Service responded that, even if management were to conclude that complying with K-IFRS No. 1117 with respect to dividend payment obligations related to participating insurance contracts would conflict with the "objective of general purpose financial reporting" as set out in the Conceptual Framework and could therefore be misleading to users of financial statements, it would nevertheless be difficult, from a supervisory perspective, to continue to permit the application of accounting departures.

After comprehensively considering the circumstances described above, the Company determined that, even if compliance with the requirements of K-IFRS No. 1117 for participating insurance contracts could potentially result in an understatement of insurance liabilities compared to prior-period accounting practices and thereby give rise to a possibility of being misleading to users of financial statements due to a conflict with the objective of general purpose financial reporting, the supervisory framework no longer permits the Company's previous accounting treatment that had applied the requirements of K-IFRS No. 1117 differently. Accordingly, the Company changed its accounting policy to measure insurance liabilities in compliance with the requirements of K-IFRS No. 1117 from the end of the current period.

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SHINHAN LIFE INSURANCE CO., LTD.

**Notes to the Separate Financial Statements (Continued)**

As of and for the years ended December 31, 2025 and 2024

*(In millions of Korean won)*

**52. <u>Effects of changes in accounting policies (continued)</u>**

In addition, through the above-mentioned response, the Financial Supervisory Service stated that, where a life insurance company changes the accounting treatment of dividend payment obligations related to participating insurance contracts from an accounting departure (policyholders' equity adjustments) to the application of K-IFRS No. 1117, such change should be accounted for as a change in accounting policy in accordance with K-IFRS No. 1008. Accordingly, the Company applied the effects of the change retrospectively.<br>

As of December 31, 2025, policyholders' equity adjustments calculated under the previous method prescribed in Article 4-1(2) of the Detailed Regulation on Supervision of Insurance Business amounted to W1,094 million. In accordance with K-IFRS No. 1008 *Changes in Accounting Policies*, the effects of the retrospective restatement of prior reporting period resulting from the application of K-IFRS No. 1117 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  |  | **Assets** | **Liabilities** | **Equity** | **Profit for the year** | **Total comprehensive income(loss) for the year** |
| **Before the Change** | W | 59617796 | 52555228 | 7062568 | 533681  | (1057839) |
| **Adjustments:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholders' equity adjustments |  | - | 362 | (362) | - | 664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | - | (96) | 96 | - | (175) |
| **After the Change** | W | 59617796 | 52555494 | 7062302 | 533681 | (1057350) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **As of January 1, 2024** | **As of January 1, 2024** | **As of January 1, 2024** |
|  |  | **Assets** | **Liabilities** | **Equity** |
| **Before the Change** | W | 58508315 | 50061766 | 8446549 |
| **Adjustments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Application of K-IFRS No. 1117 to dividend payment obligations related to participating insurance contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholders' equity adjustments |  | - | 1025 | (1025) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | - | (271) | 271 |
| **After the Change** | W | 58508315 | 50062520 | 8445795 |

---

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**Independent Auditors' Review Report on Internal Control over Financial Reporting**

<u>Based on a report originally issued in Korean</u>

To the Chief Executive Officer of

Shinhan Life Insurance Co., Ltd.

We have reviewed the accompanying ICFR Operating Status Report by CEO and IAM (the "ICFR Report") of Shinhan Life Insurance Co., Ltd. (the "Company") as of December 31, 2025. The Company's management is responsible for designing and operating effective ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review management's assessment and issue a report based on our review. In the accompanying report of management's assessment of ICFR, it is stated that: "Based on the assessment of the ICFR operating status report by Company's CEO and IAM, ICFR has been effectively designed and is operating as of December 31, 2025, in all material respects, in accordance with the Conceptual Framework for Designing and Operating Internal Control over Financial Reporting (the "Conceptual Framework")."

We conducted our review in accordance with ICFR Review Standards issued by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as to whether the Company's ICFR Report is free of material misstatement. Our review consists principally of obtaining an understanding of the Company's ICFR, inquiries of company personnel about the details of the report, and tracing to related documents we considered necessary in the circumstances.

A company's ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards ("K-IFRS"). A company's ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements in the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our review of the Company's ICFR Report, nothing has come to our attention that causes us to believe that the ICFR Report is not prepared in all material respects, in accordance with the Standard for Evaluation and Reporting of Internal Control over Financial Reporting.

This report applies to the Company's ICFR in existence as of December 31, 2025. We did not review the Company's ICFR subsequent to December 31, 2025. This report has been prepared for Korean regulatory purposes, pursuant to the Act on External Audit of Stock Companies, Etc. and may not be appropriate for other purposes or for other users.

March 3, 2026

<u>Notice to Readers This report is annexed in relation to the audit of the financial statements as of and for the year ended December 31, 2025.</u>

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