Good morning. I am Kim Jae-Hong, head of the IR team. Thank you for joining Samsung Fire & Marine Insurance's Q3 2022 earnings conference call. We will begin with our CFO, EVP Hong Seong-Woo's presentation on key earnings highlights and future business strategy, followed by questions to which answers will be provided by the management team. The whole session will last around one hour, including the Q&A. I will now invite CFO Hong to present on the earnings. Good afternoon. Good morning, excuse me. I'm Hong Seong-Woo, the CFO. Allow me to present on the Q3 2022 earnings results. Q3 pre-tax profit reported KRW 385.8 billion, while net profit was up 1.6% on-year, rising to KRW 282.7 billion. On a cumulative basis, pre-tax profit reported KRW 1,414.4 billion, and net profit KRW 1,032.6 billion won, recording 13.6% rise if we were to exclude special dividend from Samsung Electronics last year. First, on the long-term insurance, long-term health insurance revenue has sustained growth since Q4 of 2021, and an improved portfolio around higher margin products, especially the children's insurance. We are laying a solid basis for profitability under the upcoming IFRS 17. Also, thanks to continuing efficiency-enhancing efforts, 21st-month persistency for the protection line was up by more than 10 percentage points year-over-year, and 37th-month persistency improved by more than 6 percentage points, while risk and moving premium expanded by 8.4% year-over-year. Q3 loss ratio was 85.6% on the back of improvements in managing non-benefit items, i.e., more rigorous review and screening of excessive medical treatments, improving by 2.5 percentage points year-over-year, while cumulative Q3 loss ratio posted improvements of 2 percentage points year-on-year. In Q4 and onwards, we will continue to drive long-term line growth underpinned by differentiated strategies, including data-driven loss management, upgrade of the underwriting system, and offering of customized products. Next, for the auto insurance, on the back of heavy downpour and other natural disasters and rising accident rates as we are going back to normal, we've seen expanded loss ratio, bringing Q3 combined ratio to 99.1%, which is up 4.7 percentage points year-over-year. There is concern of higher loss ratio in Q4 on greater cost burden from inflation driven by seasonal factors such as cold wave and heavy snow. The company will bring quality revenue and improve claims efficiency to gain steady source of profit and firmly establish a system of operations to generate earnings so as to report underwriting profit for two consecutive years. 다음은 일반보험입니다. 3분기 누계 기준 원수보험료 매출은 전년 比 15.4%가 성장하였으며, 3분기 손해율은 집중호우 및 태풍 등 자연재해의 영향으로 전년 比 5.9%포인트가 상승했음에도 불구하고 누계 손해율은 전년과 유사한 75.3%를 기록하였습니다. Next is general insurance. Q3 cumulative direct premium written was up 15.4% year-over-year. While, despite an uptick of 5.9 percentage points year-over-year in loss ratio due to natural disasters, including heavy downpour and typhoon, cumulative loss ratio reported 75.3% flat year-over-year. 일반보험은 손익 변동성 축소를 위한 재보험 전략 기조를 유지하면서 지속적으로 우량 매출 확대를 추진하여 안정적 수익 창출을 위해 노력하겠습니다. 또한 해외 시장에서의 성장 기반도 강화 등으로 영국 캐노피우스 사와의 양사 사업 역량을 결합하여 북미 지역을 중심으로 사업 협력을 지속 확대해 나갈 계획입니다. For the general line, while maintaining our reinsurance strategy to downsize P&L fluctuations, we will endeavor to generate steady earnings by expanding high quality revenues. We are also solidifying basis for growth in the overseas market as well. With a combined business capacity of Canopius of U.K., we are cooperating to tap into the North American market and plan to actively expand the scope of such cooperations going forward. 다음으로 자산운용 부문입니다. 3분기 투자이익은 1조 5,953억 원을 시현하였고, 투자이익률은 전년과 동일한 2.9%를 기록하였으나 지난해 일회성 배당수익 제외 시 투자이익률은 전년 比 0.2%포인트가 개선되었습니다. Next is investments. Q3 investment yield was KRW 1,595.3 billion with 2.9% investment yield, which is flat year-over-year. If we are to exclude last year's one-off dividend gains, investment yield improved 0.2 percentage points year-over-year. 최근 금융시장은 지속적인 금리 상승 및 인플레이션 심화, 부동산 시장 위축 등 불확실성이 가중되고 있는 상황입니다. 4분기에는 자산 가격 하락, 신용 리스크 확대 등 경기 침체 리스크를 대비해 안정적 포트폴리오 구축을 최우선 과제로 하여 유동성 확보 및 리스크 모니터링 강화 등 시장 환경 변화에 철저히 대응할 것입니다. Recently, the financial market today is experiencing heightened uncertainties on the back of rising rates and deepening of inflation and depressed real estate market. In Q4, we expect asset prices to fall and the overall risk to actually rise. To respond to such market backdrops, we will be establishing a steady portfolio so that we could expand liquidity and also be more stringent in managing our risk. 한편, 삼성화재는 기존의 상품 및 서비스와는 다른 새로운 기도와 혁신을 지속 추진 중에 있습니다. 상반기는 고객의 안전한 습관을 만들어주는 착한 생활 시리즈를 출시하였고, 반려인들을 위한 메타버스 서비스인 O모O모도 11월 런칭을 앞두고 있습니다. In the meantime, at SFMI, we are endeavoring our efforts to come up with new innovations and on our testing at new tries. We have introduced Chakhan Saenghwal services so that we could provide an opportunity for our users to set up a habit of safety, which is slated for November. Also, we are planning to introduce a Metaverse service called Omo Omo come November. 또한 지난 10월에는 당사 다이렉트 플랫폼 착을 통해 고객이 직접 필요한 보장을 손쉽게 설계하여 가입할 수 있는 내 보험 DIY 서비스를 오픈하였습니다. 앞으로도 다양한 상품 및 서비스를 지속 개발하여 고객의 변화하는 니즈에 대응해 나갈 것입니다. Also, last November, we have designed a My Insurance DIY product, so that we can provide an opportunity for our policy holders for them to design the type of insurances that fit their needs. Continuously, we will try to develop variety of products and services so that we may better satisfy the needs of our users. 삼성화재는 대내외적인 불확실성이 확대되는 환경에서도 수익성 중심의 성장과 효율 개선 노력을 지속하여 올해 사상 최대 이익 시현을 목표로 하고 있습니다. 예상되는 환경 변화에 철저히 대비하고 내년으로 다가온 IFRS 17 도입 이후에 손익 기반 확보에 주력하여 차별화된 성과를 시현하고 주주가치 또한 높일 수 있도록 더욱 노력하겠습니다. 감사합니다. SFMI, in responding to the uncertainties, both external and internal, we will continuously try to grow our profitability and focus on enhancing the efficiencies. Through such efforts, our objective is to achieve the record high profit this year. SFMI will thoroughly prepare against the upcoming IFRS 17, and we will focus our efforts to make sure that we secure a firm basis for earnings going forward, and we will do our utmost to bring the better performance and also to better provide shareholder returns. Thank you very much. 이어서 질의 응답 진행하도록 하겠습니다. 질문은 한 번에 두 개까지 받겠습니다. Next, we will begin the Q&A, and we would like to ask that you ask no more than two questions per person. 지금부터 질의 응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일 번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 이 번을 눌러주시면 됩니다. Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. 처음으로 질문해 주실 분은 JP Morgan의 Youngook Kim 님입니다. The first question will be provided by Youngook Kim from JP Morgan. Please go ahead with your question. 안녕하십니까? 질문 기회 주셔서 감사드립니다. 두 가지 여쭤보고 싶은 부분이 있습니다. 아무래도 금융시장이 상당히 불안한 부분들이 있어서, 올해의 배당에 대해서 지금 현재 이전에 말씀하셨던 내용을 계속 유지를 하시는지, 아니면 변화가 있는지 다시 한번 말씀해 주시면 감사드리겠습니다. 두 번째로 여쭤보고 싶은 부분은, 내년에 IFRS 17 말씀하셨는데, 내년이 되면 회사가 가지고 있는 이코노미 캐피탈이 굉장히 많아질 것으로 생각이 되는데, 지금 회사가 생각하시는 향후 ROE가 많이 떨어질 수도 있어서, 회사가 생각하시는 향후 캐피탈에 대한 리턴을 어떻게 가져가실지, 그리고 그 부분이 회사의 성장과 주주의 환원, 그리고 기타 유보에 대한 부분에 대해서 어떤 생각을 가지고 계신지 말씀해 주시면 감사드리겠습니다. Thank you. I would like to ask two questions. Our first question relates to the current, quite unstable financial market backdrop. Would like to get some color as to what your plans are in terms of the dividend payout. Would you be maintaining your existing dividend payout policy, or should we be expecting some changes? Second question, with the upcoming of IFRS 17 next year, the company is going to have significant amount of economic capital, and we expect that would drive down your ROE. Hence, I would like to understand what company's view is regarding your capital, regarding your growth of the company, the shareholder return, as well as retaining, as well as the overall, capital return related approach. 배당 정책과 관련해서 먼저 말씀드릴 경영지원실장 홍성우입니다. This is CFO Hong. I will respond first to your dividend question. 배당 정책과 관련돼서 저희가 작년에 안정적인 주당 배당금을 위해서 DPS 중심으로 저희가 하겠다고 했던 방향성에 대한 부분은 계속해서 유지가 되고 나아갈 것이고요. 작년에 저희가 하면서 일정 부분 그 배당 성향과 관련된 부분에 일부 하락이 있다는 것 때문에 시장이 여러 가지 실망감들이 있었던 부분들을 고려해서, 저희가 배당 성향도 고려하면서 DPS를 확대하는 전략을 가져갈 생각입니다. 또한, 올해는 예상했던 것보다 저희가 실적이 많이 상회하고 있는 부분들이 있어서 물론 4분기에 여러 가지 시장의 변동성이 없는 건 아니지만, 저희가 그런 점을 고려해서 실적 배당에 따른 배당 정책을 펴 나갈 예정입니다. Regarding the overall dividend related direction last year, we've communicated our DPS focused dividend policy, and we will be sticking to that position. We will also consider the fact that market was a bit disappointed due to the slight dip in the dividend payout ratio. We will be considering both of those aspects, the payout ratio as well as DPS, dividend per share, when we make our dividend related decisions. On top of that, this year, we have outperformed our expectations in terms of the performance that we have reported. Of course, Q4, we do expect there's going to be quite a bit of volatility that persist. We will consider that as well when we come to a decision on the dividend payout, which will also well reflect the performance. 네, 두 번째 질문에 답변해 드린 경영지원팀장 이정훈입니다. Hello, I am Lee Junghoon, VP of Corporate Management Support Team. I will respond to your second question. 네, 내년 IFRS 17 도입에 따라서 방향성에 대해서 약간 혼돈이 있을 수 있는데, 일단은 전반적으로 보면 유통 측면에서 보면 보험사 전반적으로 많이 올라가는 측면이라고 지금 저희는 판단하고 있습니다. With the upcoming IFRS 17 next year, I understand that there could be some confusion regarding the overall direction. First of all, in terms of the return for the insurance companies, we will see an upward movement. 아시다시피 IFRS 4하고 17의 차이점은 가장 큰 변화를 주는 요인은 장기 보험 비즈니스인데, 장기 보험 측면에 있어서는 신계약비 인정 기간이 길어짐에 따라서 그 부분이 분산 효과로 인해서 전반적으로 리턴은 업 방향으로 움직인다고 저희가 보고 있고, 지금 자본 측면에 있어서는 현재와 그렇게 큰 차이는 없는 걸로 저희는 판단을 하고 있습니다. Now, as you know, the biggest difference between IFRS 4 versus the 17 comes from the long-term business line. The amortization period, the deferral period of the new business expense is going to be more extended. Hence, that's going to be much more spread out. That's going to have an impact of increasing the return. While on the capital side, our assessment as of the date is that it will be quite flat on a year-over-year basis. Of course, as we go through the transition, there will be some confusion between IFRS 4 versus 17, but just due to a simple accounting treatment changes, ROE is going to improve compared to the current level. Our CFO, who has just talked about our dividend payout approach, we are continuously really thinking very hard as to our future, direction. In terms of the shareholder return policy under the IFRS 17. I think we can tell you very clearly is that we do not foresee or expect any significant changes to our, shareholder return policy. We will continuously try to explore ways as to how best we could make use of the capital capacity that we have and use that for growth, purposes. We will move on to the next question, please. The following question will be presented by Jun-Sup Jung from NH Investment & Securities. Please go ahead with your question. Yes, I would like to. I'm Jun-sup Jung from NH Securities. I would like to ask two questions. First, there's been a recent press article about the cutting of the auto insurance premium. We did expect this to actually come, but it was actually a first time for us to see a specific number attached to it in a press article. Are you also planning to cut the premiums to that extent, or do you have a different plan? On the back of such request by the regulators, now there's a concern that there would be an adjustment in the medical indemnity rates at the end of the year. Would like to understand what your thoughts are and forecast is on that. Second question is, in Q3, it seems that the duration for asset and liability has both gone down. You know, that's explained, that's understandable based on the high rate environment. I'm wondering whether there is no issue in terms of your asset and liability matching ALM. Also with the adoption of IFRS 17 next year, we would now be applying the real durations. Now, how would that change your liability duration? Yes, I will respond to your first question about the auto insurance. I'm VP of Automobiles, Kim Il-pyeong. Now, in terms of this discussion about the auto premium cut, I can tell you that it is under discussion as we speak, and we as a company have started to review this, just starting this week. I just hope you could understand that at this point, I won't be able to share any specifics. Now, in terms of the direction, we will be fully considerate of the fact that the rate cut should not in any way undermine our business performance. That would be the extent to which that could be contemplated. For next year, despite a very difficult operational backdrop, we will look into various different options that could help us prop up the performance so that we will be able to achieve a performance that is on par with what we've seen this year. Next, I will respond to your question about the long-term products rates. My name is Park Shin-hyun. Now, regarding the rate schemes that will be applied for the Generation II and Generation III products, which will be applied in January, is ongoing. Now, the company has a great level of interest on the rates for the Generation III products. As you know, for these Generation III, medical indemnity products, we were trying to increase the rates back in July, but that was extended or delayed up until the end of this year by about six months. Now, this Generation III products, since it was adopted in April 2017, for about six years, the rates have been either frozen or it had only gone down. Internally, our loss ratio has shown a very steep rise. This is a fact that the regulators are fully aware of. When we come to a stage where we are determining on the rates, we will fully consult this together with the regulators. At the same time, on controlling the loss ratio side, as we have been able to prove that we were successful in managing and controlling the loss ratio that was attributable to excessive cataract surgery, just as we have this experience next year, we will also very rigorously manage our loss ratio so that we can control on the claims payment side as well, so that we could continue to have a very tight grasp on the loss ratio management for our long-term business and contribute to stabilization of such loss ratio trend. I will respond to your question about the duration. I am VP of Actuary R&D Team, Choi Bu-kyu. Now, as you have correctly mentioned, our ALM, which used to be 100% as the interest rates went up, the ALM matching ratio has gone down because our company, our portion of the floating rate liabilities is less compared to peers, hence the fall in the liability duration was bigger. This duration that I'm talking about is based off of KICS, our internal standards. With regards to the upcoming regime change, we believe that that impact is already reflected. Yes, there has been some impact on the asset side and liability side. However, we are still maintaining a quite steady level of interest rate risk. Based on the current environment where we are seeing high volatility in the movement of the interest rates, we are going to stay away from any sudden shift or sudden change from our current ALM strategy. Under a mid to long-term interest rate target, for instance, by expanding the offering of the age term insurance products, which will help us expand the duration, we will be gradually improving on the matching rate. Thank you. We will move on to the next question. The following question will be presented by Yafei Tian from Citi. Please go ahead with your question. Thank you for taking my questions. I have a question on the investment side, another on the auto side. On the investment side, you can see that there has been a bit of increase in the overseas allocation over the year. Just wanted to check with you, what is the longer term strategy in your allocation to overseas investment, and how do you manage the currency risk in that portfolio? Along with that, another part of the investment question is on the asset quality. Also noticed there is a little bit of increase in the delinquency ratio based on your disclosure. Given the uncertainties in the project finance market, can you help us to understand what is your exposure to project finance related loans, and how do you expect the NPL delinquency ratio to trend going forward? The second question is to follow-up on the auto premium costs, given the potential improvement in profitability next year following IFRS 17 implementation. Just wanted to understand if the regulator would actually, you know, suggest the industry to take further cuts to auto premium. Thank you. I am Kwak Chang-hoon, VP of finance planning. I will respond to your first question. Regarding the first question, first off, the reason why we are seeing an increase in exposure to overseas investment is because we are actually gradually expanding that exposure because within the Korean market there's a limitation in terms of the assets and items that we could invest. Also, there's a fiercer competition in the domestic market. In terms of the type of investments that we are making, they are higher profit and dividend paying investments, including investments into infrastructure, real estate and PEFs. Regarding hedging and the currency risk, basically our principle is to do a full hedge. We have a hedge against the principal investments. Regarding the slight uptick in the delinquency rate, it's mostly mortgages for the retail market. There has been a slight increase in delinquency for the mortgages. However, compared to other financial institutions or the commercial banks, that rate, delinquency rate is not at all high, so we do not consider this as a problem at this point. Regarding our PF project financing, our total exposure is about KRW 3 trillion. Basically, our investments are ones that are already guaranteed and for projects where the apartment lots have been already sold out. Regarding the PF related issue that you are seeing in the market at this point, it is not applicable to our company. Thank you. Hello. I am Choi Bu-kyu, VP of Actuary R&D Team. Let me just provide some more information on that. 같이 운영을 하고 있고, 로보 헤지의 경우에도 일 년 이상으로 해서 기간별 분산하여 관리하고 있다고 한번 설명드리겠습니다. I just wanted to add by saying that you just heard that we are doing a full hedge on our currency positions. On top of that, we also do a rollover hedge and we diversify the durations up to more than one year. We have a diversified exposure in terms of the period. 예, 두 번째 질문에 답변드릴 자동차보험 전략팀장 김일평입니다. Yes, this is Kim Il-pyeong. Again, to respond to your question about auto insurance. IFRS 17 이후에 전체적인 손익 개선으로 추가적인 자본 or 유인가 요구가 있을 개연성은 있습니다만, 자동차 보험료의 보험료 산출은 자동차 보험만의 사업 실적을 기초로 산출이 되기 때문에 개별적으로 그러한 요구가 있더라도 저희가 수용하기는 어렵습니다. 이상입니다. If your question relating to whether, due to the IFRS, because the profit is gonna go up, will there be possibility of an additional pressure on the rate cuts for the auto insurance? If you think about how the rate is made, the rate making or calculation process, it is dependent on the business performance of the auto insurance. Even if there is a demand from an actuarial perspective, it would be difficult for us to just accept that on that pure basis. 질문 감사합니다. 그럼 다음 질문 받겠습니다. Thank you for the question. We now move on to the next question. 다음으로 질문해 주실 분은 골드만 삭스 증권의 박신영 님입니다. The following question will be presented by Shin Young Park from Goldman Sachs. Please go ahead with your question. 네, 안녕하세요. 골드만 삭스 박신영입니다. 저는 silson 위험 손해율 관련해서 문의드리고 싶은데요. 올해 아무래도 이제 장기 쪽의 위험 손해율 자체가 컨트롤이 좀 잘 된 것 같아요. 그리고 그거의 핵심이 이제 정부 및 보험 업계에서 이제 대응한 백내장 관련해서 저는 굉장히 클레임 컨트롤이 targeted 해서 잘 되었던 것 같은데요. 그래서 이제 기본적인 클레임 성장 추이를 보면 이제 지난 분기에는 YOY도 3%, 이번 분기에는 한 6%대로 이제 어느 정도 안정된 모습인 것 같습니다. 그래서 이게 저희가 이해하기에 좀 normalized된 클레임 성장 수준으로 봐도 되는지 견해를 얻고 싶고요. 그리고 특히 주목할 만한 추이가 있는지도 궁금합니다. 또 관련해서 이번 분기 그리고 누적 기준으로 봤을 때 silson 손해율이 어느 정도 수준인지 말씀 부탁드리고요. 그걸 기반으로 생각하실 때 필요하다고 생각하는 수준의 실손보험의 인상 규모, 어느 정도 comment 해 주시면 좋을 것 같습니다. 감사합니다. Yes, hello. I am Shin Young Park from Goldman Sachs. My question relates to the risk loss ratio, the trend for your medical indemnity products. Well, under the long-term line, I think risk loss ratio was very well controlled, probably thanks to a very targeted claim control on, you know, the efforts put on by the industry as well as the cooperation from the government. It was well targeted. If you look at the claims uptrend in Q2, it was year-over-year 3%, and this quarter it was about 6%. I think it's showing a stabilized trend. Do you think that this is a normalized level? Is there any particular trend that we should also take note of when it comes to the overall claims trends? I would like to ask you about the up to Q3 cumulative loss ratio update. In light of those cumulative amounts of losses, what do you think is the appropriate level of the rate hike for the medical indemnity? 네, 먼저 질문에 답변드릴 장기상품개발 팀장 곽승현입니다. Yes, this is Kwon Ki-soon. I'm VP of Long Term Product Development. I will respond to your question. 먼저 질문에서 언급해 주신 것처럼 실제 백내장의 손해 관리 효과로 인해서 1분기 대비 이상 분기에 걸쳐서 백내장의 손해액은 아주 빠른 속도로 감소하고 있는 건 사실입니다. 실질적으로 백내장의 일평균 손해액은 지난 1분기에 월 10.9억 수준에서 지난 3분기에는 1억 수준 밑으로 많이 지금 하락하고 있는 상황입니다. Yes. As you have mentioned, we've seen a very effective control over the cataract, compared to Q1 and Q2 and Q3. We've seen the claimed amount and the loss amount really go down, quite steeply and rapidly. If you look at the amount of the losses that were recorded for cataract on a daily average basis, before it was around KRW 1 billion. While, after the adoption of this system, we've seen that go down below KRW 100 million. 실질적으로 저희 회사 입장에서는 백내장과 같은 과도한 지급 청구를 막기 위한 여러 가지 노력들을 지속적으로 계속할 예정입니다. 실제 저희 내부적으로는 한 십여 가지의 지급 관리 항목을 집중적으로 관리하고 있고요. 이 부분에서의 이상 지급으로 발생하는 것들을 계속 모니터링하면서 다른 쪽의 항목으로 그 과도한 지급 청구가 진행되지 않도록 하는 것들을 지속적으로 관리 모니터링하고 있습니다. We will continuously put on efforts as we've seen for the cataract as well. Internally, we've identified about 10 different items that needs to be closely observed and monitored. For us to early identify any potential signals of any abnormal claims. We have listed up 10 different non-reimbursable medical items to make sure that there does not trigger or there does not exist any excessive claims for payment. Yes. Regarding the loss ratio, this is on a cumulative basis, and it excludes IBNR, and it is at around 118%. Thanks to our efforts on, for instance, like the cataracts, we have seen a slowing down of the loss ratio rise. That is positive. However, we are also continuously monitoring the Generation III, the third generation, loss ratio of the medical indemnity products because their loss ratio is quite elevated at around 118%. Although we do not yet have the accurate number that's calculated, but internally, in light of the current loss ratio trend regarding the application of the new rates for the Generation II and Generation III products, there are factors that will justify around 10% rise in the rates. Once again, I have to say this is not an accurate figure, but once we get that accurate figure, we will come back to you and communicate that to you. Thank you. We'll take the next question. The following question will be presented by Do Ha Kim from Hanwha Investment & Securities. Please go ahead with your questions. I would like to ask two questions. You've given us a breakdown between overseas and domestic for the loss ratio for your commercial line in Q2. I think that it's been about 20 percentage points rise. Would like to understand if there was any specific driver behind that, and have you seen any changes in your retention policy? Second, this question is due to the fact that I do not clearly understand your structure, but I see that your investment gains have gone up. One aspect, of course, is the fact that the book yield has gone up by about 20 basis points. But also on the FX derivative side, I understand that your performance or the figure that we are seeing is about KRW 120 million better than the past. Because of the rise in the FX rate, I've heard from one of your peers that their hedging position is open and also their rollover duration is much shorter. That explains why there would be a gain from the FX side. But considering that you are fully hedged and you have a much longer rollover duration, how is this possible? Maybe this is due to my lack of understanding of the overall structure of the company, but could you provide some more color there? Yes. Hello. I am Kwon Jungwoo, VP of Commercial Lines. I will respond to your question about the commercial and the general lines loss ratio. 먼저 국내 손해율 상승 원인은 지난 8월에 있었던 집중호우, 그다음에 9월에 있었던 태풍 힌남노의 영향이 가장 큽니다. 이는 사실 삼성화재뿐만 아니라 업계에서 공통적으로 이제 발생한 손해라고 볼 수 있습니다. The reason why we've seen a rise in terms of loss ratio for domestic is because of the heavy rainfall that we experienced in August, as well as Typhoon Hinnamnor that hit Korea in September. This is a factor that is common across all of the insurance companies, not just SFMI. 이렇게 국내 사업에서의 대형 손해는 자연재해로 인해서 크게 증가했지만 반대로 중소형 손해 같은 경우에는 좀 안정 추세가 있어서, 그래도 이번에 큰 대형 손해를 경험하고도 저희의 예상치보다는 그 손해율이 크게 상승하지는 않은 그런 상황입니다. The fact that we had such a large scale, loss event due to natural disasters, was a negative factor. If you look at small to mid-sized loss event, there was a decline there. Despite this extensive, loss event, we did not see the loss ratio rise as much as we had expected. 해외 손해율 하락의 경우에는 특별한 대형 사고가 없었던 그런 영향도 있지만 지난 실적 발표 때 실적 발표회를 통해서 수차례 말씀드렸던 해외 사업 포트폴리오의 이제 그런 변경 등에 따른 영향이라고 해석을 해셔도 될 것 같습니다. Now, regarding the overseas loss ratio dip, there is once again not any significant loss events. On top of that, as we've mentioned during the previous earnings call, this is due to some of the shifts in our overseas business portfolio. 다음은 질문하신 재보험 전략 방향에 대해서 말씀을 드리겠습니다. Next, I will respond about the reinsurance strategy. 최근에 업계 공통적으로 자연 대형 사고의 빈도는 사실은 그렇게 크게 증가하고 있지 않지만 오히려 심도가 크게 증가하는 그런 상황을 보여서 저희는 지난 작년도에 있었던 그런 보유를 갖다가 확대하지 않는 정책을 계속 유지할 예정입니다. Recently, if you look at the overall characteristics of these large loss events, the frequency has not gone up, but the severity has been heightened. We will continue on with our previous year's approach of not expanding the retention. 결국엔 재보험 전략이라는 건 손익 변동성 관리를 위해서 저희가 하고 있는 전략인데, 단순히 이런 재보험 전략 방향성은 일관되게 유지하면서 저희의 그 리스크 포트폴리오를 좀 더 분산시키는 전략으로 일반 보험의 손익 변동성 관리를 계속 지속해 나가도록 하겠습니다. The purpose of having this reinsurance strategy is to maintain and control the fluctuations in the P&L. We will be very consistent in the direction that we have taken so far and be diversifying the risk profile of the company, and so that we can make sure that we don't experience that big fluctuation in P&L. Thank you. 네, 두 번째 질문에 답변드릴 재무팀 팀장 박상훈 상무입니다. Hello, I am Park Sang Hoon, VP of Finance Planning. I will respond to your second question. 앞전에 말씀드렸던 것처럼 저희는 해외 투자를 하면 투자한 금액에 대해서 전액 헷지를 하고 있습니다. 따라서 환율이 오르게 되면 현물에서는 외환 평가 이익이 발생하고, 반대로 저희가 파생상품에서는 평가 손실이 발생합니다. 그래서 전년 대비 이익이 증가했지만 손실 부분에서도 마찬가지로 손해가 증가했기 때문에 실질적인 손익 차이는 없다고 보시면 되겠습니다. As I explained previously, when we do an overseas investment, we do a full hedge on that position. If the FX rate goes up on the spot level, there's going to be a valuation gain from FX translation. On the derivatives side, there's going to be a valuation loss. There's going to be a profit on the top and loss at the bottom. From an overall P&L perspective, there is no big difference. 아까 RM 팀장이 말씀드린 것처럼 저희는 full hedge와 rollover hedge를 병행하고 있기 때문에, 최근 환율 상승에 따른 효과가 크지 않지만, 일부 손보사의 경우에는 단기로 헷지를 함으로써 최근 환율 상승에 따른 추가적인 자금 투입이 필요한 상황이어서 유동성에 약간 문제가 발생하는 회사도 있는 것으로 알고 있습니다. As our actuarial head has previously mentioned, yes, we do a full hedge as well as a rollover hedge as well. We really don't get impacted significantly when there is a steep rise in the FX rate. Some of our P&C peers, because they take out a short-term hedge when the FX rate shoots up, there is a need for additional injection of funds, hence creating some liquidity-related problems. 결론적으로 말씀드리면 결국 저희가 full hedge 투자를 함으로써 연계 효과는 환율, 환 관련되는 부분은 거의 발생하지 않는다고 보시면 되겠습니다. 이상입니다. Just to summarize that, in terms of our overseas investment, there is going to be just a flat impact on the FX line items. 질문 감사합니다. 그럼 다음 질문 받겠습니다. Thank you. We will take the next question. 다음으로 질문해 주실 분은 신한투자증권의 임희연입니다. The following question will be presented by Lim Hee-yeon from Shinhan Investment & Securities. Please go ahead with your question. 네. 좋은 질의 감사합니다. 내년 IFRS 17 그 이후에 성장하실 모습에 대해서 좀 많이 궁금해서 질문을 드리게 되었습니다. 기본적으로 뭐 영업 환경이라든가 회계 기준 변화 이외에, 좀 구조적으로 그리고 전략적으로 추구하는 방향성에 대해서 코멘트해 주시면 좋을 것 같은데요. 보험 영업이라든가 자산 운용 그리고 리스크 관리 이렇게 세 가지 측면에서 말씀 좀 부탁드리고 싶습니다. 그리고 특히 이제 경쟁사들하고 전략적으로 차별화되실 이 부분에 대해서 좀 더 강조를 해주시면은 뭐 향후 저희가 좀 분석을 하는 데 많이 도움이 될 것 같습니다. Thank you very much for the good results this quarter. I would like to ask, SFMI, I guess, future direction in terms of your overall structure and your strategy, in terms of underwriting, asset management and risk management, and how you're going to differentiate yourself against your competitors under this new environment. If, you know, if you provide us with that insight, that would be quite helpful for us in analyzing your company. 예, 답변을 드릴 CFO 홍성우입니다. Hello, this is CFO. I will respond to that question. 저희가 이제 경영 계획을 수립하고 있는데요. 내년도에 이제 여러 가지 경제 상황이나 여건들이 아시다시피 확실하게 불확실한 부분들이 참 많이 현재는 산재되어 있는 부분이 있습니다. We are at this point, drafting our business plan, and as you will fully appreciate, next year, there's going to be quite a bit of uncertainties in the economic backdrop. 보험 영업 부문에 있어서는, 아시다시피 저희가 IFRS 17이 되는 상황에서는 안정적으로 그 효율을 관리하면서 성장해 나가는 모델을 지금 현재 구축하고 있는데, 보험 영업 시장 자체가 올해보다는 훨씬 더 성장할 수 있는 여건은 아닌 것 같고요. 그래서 올해 정도 수준의 어떤 시장 환경 내에서 삼성화재가 더 확장해 나갈 수 있는 부분을 고민하고 있습니다. 발표 때도 말씀드렸지만, 이제는 고객들 개개인별로 어떤 추구하는 니즈들이 좀 더 많이 세분화될 것으로 판단되어져서 그런 쪽의 상품이든 서비스든 이런 부분에 대한 것들을 공급해서, 시장에 있는 고객들을 더 많이 확보하는 쪽으로 저희가 방향을 정하고 있고요. Now, in terms of underwriting activities, under IFRS 17, we have built a model where we could very steadily attain efficiency gains as well as trigger growth. Underwriting markets, we do not expect the backdrop as such that we will see growth going forward. Our assumption is that the market environment will be more or less the same as this year, and we are really thinking hard as to how we could expand our business within that given market environment. I've mentioned during my opening presentation, we now believe that the individuals have now segmented needs. What we need to do is to be able to provide the most appropriate products and services that satisfy those very granular needs so that we can gain more customers. 특히나 저희가 이제 디지털 본부를 만든 지 한 2년이 지난 지금 시점에서 나름대로의 저희가 할 수 있는 것들에 대한 모습들이 구체화되고 있는 부분들이 하나 저희 회사가 기대할 수 있는 부분이라고 생각되고, 전체적으로 저희가 플랫폼 회사로서의 어떤 역할들을 할 수 있는 그런 것들에 대한 것들을 내년에 많이 준비를 하고 있습니다. 최근에 아까 말씀드린 보험 상품을 포함해서 메타버스를 통한 O모O모라든지 이런 부분들도 하나의 실예라고 할 수 있을 것 같고요. 어쨌든 디지털 시장에 맞는 플랫폼 회사로서의 어떤 역할을 강화할 수 있는 부분은 하나 기대해 보셔도 되지 않을까 싶습니다. Especially, it's been around two years since we set up our digital headquarters, and we are now seeing more visible directions for the future, which is giving us quite a bit of hope and expectation. We are making a lot of preparations for next year so that we could play our part and role as a platform-based company, for example, by offering new insurance products as well as the metaverse products that I talked about at the beginning, the Omo Omo brand, which is for companion pets. We have high expectations as a company who will become more platform-based in digital, in the digital market. 회사 운영과 관련돼서는, 자산 운용에 대한 여러 가지 변동폭들이 크다 보니까, 안정성 중심으로 가야 되는 부분들은 올해와 통일할 것 같습니다. 특히 일반 보험에 있어서 재보험 전략이라든지, 그다음에 효율 중심의 운영하는 형태라든지, 회사의 여러 가지 사업비라든지 운영 경비에 대한 효율화를 운영을 한다든지 하는 부분은 올해보다는 좀 더 강하게 저희가 운영을 해야 될 것으로 판단하고 있습니다. In terms of the overall operations of the company, the asset management backdrop is going to be quite fluctuating. This next year as well, we will have a strong focus, as we did this year, on the stability aspect, for instance, regarding the reinsurance strategies for our commercial line and the efficiency enhancement, and also the efficient management of expenses and operating costs. These cost efficiency efforts, we believe, would have to be much more rigorous and stronger come next year. 자산운용 전략과 관련된 부분은 기본적으로 지금 워낙 변동성이 크기 때문에 대응을 좀 더 순발력 있게 해야 될 부분이 있고요. 이게 업계 전체적으로 여러 가지 영향들이 있는 것 때문에 이제 감독기관에서 관련된 정책들을 계속해서 내고 있습니다. 거기에 발맞춰서 저희들도 안정적으로 자산운용 전략들을 해 나갈 예정입니다. In terms of asset management, because of volatilities, we really do need to be very nimble and agile in responding to this market environment. Because these factors have overall impact across the industry, the regulators are issuing multiple measures. Of course, we will be in compliance with that and focus on stable management of our assets. Lastly, next year, the market can become quite difficult, but at the same time, we believe that we can find opportunities in the midst, we are at this point really thinking of ways for us to employ strategies where we can use our capital and make appropriate investments. All in all, next year, uncertainties are going to abound, and under that, we will focus on a steady efficiency management. On top of that, if there are good opportunities, we will be quite proactive in making the investments so that we could grow the size of our business. Thank you very much. Now we've answered all of the questions. If you have additional questions, please feel free to contact us at the IR team. Well, that brings us to the end of the Q3 2022 SFMI earnings presentation. Thank you very much once again for joining us this morning.