Good morning. I am Helen Poppa IR at Samsung Fire Marine Insurance. I would like to thank you all for taking time to participate in today's twenty twenty five First Half Earnings Results Presentation. Today's session will begin with an overview of the fiscal year twenty twenty five first half business performance followed by a 28 session. The session is expected to last approximately one hour. With that, I will turn it over to the CFO for the presentation. Good morning. This is Koo Young Min, CFO of Saint Song Phi Marine Insurance. Today, I will be presenting our business results for the first On a consolidated pretax basis, Central Fine Marine Insurance posted in quarter one KRW 822,300,000,000.0 in profit, which was a decline of 10.4% year on year. However, in second quarter, we reversed the trend reporting KRW 842,600,000,000.0, an increase of 4.5%. Cumulatively, first half profit came in at KRW 1,664,900,000,000.0, down 3.4% from the previous year, with net income attributable to majority shareholder at KRW 1,002 and 45,600,000,000.0. Moving on to business breakdown, beginning with the long term insurance line. Despite intensifying competition for new business, particularly in healthcare insurance, we responded with differentiated product development initiatives and strategic channel strategies. This drove monthly premiums in the protection business to KRW 18,500,000,000.0, up by 1.3% year on year. New business segment for the first half was 1,421,200,000,000 down 13.2% from last year. However, second quarter CSM multiple increased to 13.8 times, improving revenue business profitability by 1.9 times quarter on quarter. As a result, total CSN volume reached KRW 14,577,600,000,000.0, expanding by KRW 503,700,000,000.0 year to date. Despite an increase in CSM amortization driven by growing CSM volume, insurance profit decreased 7.9% year on year to KRW 830,400,000,000.0. This was due to reduced client's variance margins led by large natural catastrophes and worsening loss ratios in certain risk coverage. In the second half, we'll focus on generating quality revenue from high CSM margin products while strengthening the foundation for CSM profitability through improved operational efficiency. And by expanding our sales base and enhancing organizational capacity, we aim to solidify our market position and establish a leading earnings structure accompanied by fundamental business improvement. Moving on to auto insurance. While the overall auto insurance market contracted due to basic premium cuts and intensified competition on discount riders, Samsung Prime Marine Insurance maintained 2,765 billion in revenue, a slight decline of 1.1% year on year, largely supported by improved renewal rates in our in force business and continuing growth in the direct channel. Auto insurance profit fell 79.5 year on year to KRW 30,700,000,000.0 despite lower year on year accident frequency and improved expense ratio mostly due to impact of cumulative weakness and increase in loss per claim driven by heavy snowfall in first and rise in insurance related inflation. In the second half, against the backdrop of heightened level of uncertainties in the operational environment, we'll secure revenue stream through profit focused pricing strategies, enhance our claims management capabilities and strengthen our new growth model to establish a sustainable and profitable business structure. Next is the P and C insurance. With revenue growth in both domestic and global businesses, insurance revenue reached 847,300,000,000.0 won, up 5.9% year on year. However, an increase in large claims pushed the loss ratio up by 2.1 percentage point year on year to 62, resulting in insurance profit to decline 8.3% year on year to 106,800,000,000.0. The second half, we will strengthen our property insurance pricing policies while diversifying our portfolio focusing on specialty and marine insurance. We will also enhance accident prevention and safety control measures to achieve balanced growth of both revenue and profit. Next is asset management. Despite a reduction in valuation gains due to greater financial market volatility, we increased interest and dividend gain through improved asset management efficiency, such as bond portfolio adjustment to improve running yield. As a result for 2025, our investment yield was 3.64%, up 0.14 percentage point year on year and investment profit on an AUM basis totaled KRW 1,505,200,000,000.0, a 5.6% increase from last year. In the second half, we will continue to focus on proactive risk management and strengthen asset quality for both domestic and overseas real estate and retail lending. We will also secure high yield interest bearing assets and continue to diversify our portfolio towards higher return asset, while enhancing asset allocation and workforce efficiency to maintain a stable profit base. Despite ongoing internal and external uncertainties and intensifying market competition, Tensile Fire Marine Insurance continues to respond swiftly and proactively to both major and minor changes and challenges. In the 2025, all business divisions focused on widening competitive edge of our core businesses. We also carried out the first phase of share cancellation as part of our shareholder value enhancement plans and also made the decision to acquire additional stake in Canopius, reinforcing our commitment to secure future growth engines. As we move into second half of the year, we will strive for change and innovation to pursue a differentiated and balanced growth strategy rooted in strong fundamentals, making $20.25 a year of enhanced shareholder value. Thank you. That concludes the overview of our financial performance. We'll now begin the Q session. Our executives from various business divisions are also present to respond to your questions. Now q and a session will begin. Please press 1. That is star and 1 if you have any questions. Questions will be taken according to the order you have pressed the number 1. For cancellation, please press 2. That is star and 2 on your phone. The first question will be provided by MW Kim from JPMorgan. Please go ahead with your question. Yes. Good morning. Thank you for taking my question. I am Kim Young wook from JPMorgan. My first question relates to your solvency capital. As we see an increase in the CSM volume and quite robust bottom line, and if we assume that you will be paying out less than 50% against your profit and even if we consider for your investments into Canopias, I would assume that by the year end, your solvency ratio would be higher versus where we are. And also in terms of the sensitivity, the kick sensitivity analysis, when there is an interest rate cycle that is going down, it actually impacts the solvency ratio in a positive manner. So compared to what you have communicated with us during the previous calls, because at that time you did say that your year end solvency ratio will be lower than where we were. So can you provide us with the new guidance as to where that solvency rate would be at the end of the year? And also, the government has adjusted the minimum solvency target from 150% down to 130%. Would like to know whether you have any made any changes to your solvency target? Second question is on the best estimate liability, just a quick check on the numbers. Compared to the March and the December figure, there was a significant drop. Why is that? What is the driver behind this movement? Is it due to discount rates or change in the contract with the policies? Yes. So responding to your first question, I am VP of RM team, Lee Yong Bok. Yes, as you've mentioned, compared to on an year to date basis, there was a 10% increase in terms of the CSM at KRW 274,500,000,000,000.0 as of June. Excuse me, the solvency ratio, I think correct it on the percentage. Yes. And the reason is because, of the changes in the macroeconomic backdrop with the increases in interest rate and the equity prices and the net profit making that contribution as well as increase in CSM. Yes. And so regarding the kicks ratio that we are assuming at the end of the year due to these recurring drivers such as increases in profit and increases in the CSM net addition, there are some upside impact, yes. However, there are also downward pressures to the kicks ratio in the extent of about 15 to 16 percentage point downwards if we consider for paying dividend to our shareholders as well as our global investment, including the Canopius investment. So although I cannot be definitive as we see some of the macro economic indicators moving towards our disadvantage, for instance, the overall interest rate down cycle, the whole speed and the extent is at this point being moderated. So at the end of the year, we cannot be sure as to where that figure would be, but we believe that it will be above 260%. You also asked about whether we have plans to make changes to our Kicks ratio target. As we speak, the financial authorities have set up a task force team regarding the asset soundness of the financial industries, and they're in the process of rationalizing the discount rate. And the decision is yet to come. We will closely monitor how it goes, how it develops. And of course, depending on that situation, we may come back and revisit our target. But as of this point, we are maintaining our target at 220%. I am VP of long term insurance strategy. I'm Cho Eun Young. I will respond to the movement and best estimate liability. So under the IFRS standards, basically, liabilities are comprised of Bell, RA and CSM. When we actually make new premium sales, that's going to have an impact of plus KRW3 trillion on the CSM line items, whereas we will be booking negative KRW3 trillion under the Bell account. So that means that when there is that sales, the CSM will increase and on the other side, the Bell will decline. But that does not mean to say that Bell will always come down. Basically, recently, if you look at our trend, we had a significant new business volume. And so compared to the in force, the new CSM, the share that accounted for the whole portfolio was much bigger. So where there is a steep increase in the CSM, then Bell in that case will slightly dip. Thank you for your question. We'll now take the next question. The following question will be presented by Doha Kim from Hanwha Investment and Securities. Please go ahead with your question. Thank you for taking my question. My first question relates to the recent revision in the tax law. There were certain provisions that were revised that had implications for financial institutions and insurance companies as well. So as of the end of this year, would there be any adjustments that will be made to your liability accounts? And if you could break the impact between the Bell and the CSM, that would be helpful. Second question is, I think in terms of the experience variance margin that you have posted, you defended it quite well, but across not just for SFMI, but across the insurance industry, we see that there's quite a bit of an year over year increase, actually more than a double digit increase in terms of the claims related, the incurred claims aspect. So if you could break that down between medical indemnities and the others, that would also be quite helpful, especially for the nonmedical indemnity products that you've sold after 2023. If you could share with us the details that will be helpful in us making the assumptions going forward. I'm the VP of Corporate Management Support. Regarding the revisions to the tax code, the Tax Act, the related educational tax that you've mentioned will be reflected starting next year. That's according to the current bill that has been tabled. And also for the corporate income tax, the bill the draft bill currently, states that the impact will start to feed through starting next year. So in terms of the corporate income tax, we do have to recognize and account for the deferred tax asset. So starting the end of this year, we will be reflecting that on a post tax line item. And in terms of the educational tax, it will be reflected on a pretax profit and it will be a minus driver to the pretax profit. And if the current bill as is adopted. So because at this point, we do not have that specific tax rate that has been determined, we can't provide any specific number. But it is true that this tax item is going to increase the future cost regarding the long term insurance. So it does work as a negative factor on CSM. And also that's going to drive down the total CSM volume, basically driving down on the CSM amortization and hence it will have an impact on the net profit line item. So once again, because we do not know as to the percent of increase of this tax item, we cannot at this point fully be sure about the actual amount of the impact, but we can definitely tell you that there will be a sizable impact. Now responding to the question about the loss ratio, if you compare to the first half of the preceding year, there has been a 7.5% increase. And out of this impact, the medical indemnities account for more than 50%. If you break this down by different coverage, if you look at the loss ratio for the medical indemnities, we've seen a steeper increase in the insurance claims that have been filed compared to what we had expected. And hence, that had an impact of driving up the living benefit related claims such as diagnostics as well as surgical treatments. And also if you look at the for instance, the death covers as well as property related covers where usually in a traditional basis, we seen loss ratio profile to be quite good because of some of the external events that happened in the first quarter and large scale accidents that actually broke out. Due to these events, the loss ratio from these types of covers have also gone up. So in terms of our indemnity products, we are strengthening a rigorous review and check into any claims that are considered to be either false or overstated, and we continue on with many different measures to minimize the amount of claims that actually leak out. And also, in response to changes in the guidelines, we are planning to revisit the types of protection and coverage that we offer. You are correct that the overall loss ratio improvement trend seems to have slowed and that is because the overall loss ratio from our in force contracts have been going up. However, we will do our best to make sure that we achieve downward stabilization in terms of our loss ratio metrics. Thank you for your question. We'll now take the next question. The following question will be presented by Jay Won Won from HSBC. Please go ahead with your question. I have two questions that I would like to ask. First is, if you look at your second quarter new CSM multiple, it did go up. However, it is still not at the level of what we've seen last year at 15 times. So would like to know as to as we move into the second half of the year, where you think the multiple will be? Would it be possible for you to further drive up that CSM multiple? And if so, what are the key factors that will enable that? And at this point, the authorities are talking about making adjustments to the maturity of the health care insurances. And then I think it will be more difficult for you to further increase the drive up the CSM multiple. If that assumption is correct, then if we look at the amount of new business that you've written in the first half of the year, it may not be that easy for you to achieve the trillion target that you have for the end of the year. So we'd like to gain an insight on this question. And second question is that the loss ratio from auto insurance in Q2 was not good. And due to heavy rain impact in Q3, I believe that the loss ratio would not be able to improve significantly. So if you could tell us as to the amount of damage that you incurred from such heavy rain and flooding, that will be helpful. And us, that will be helpful so that we could make appropriate assumptions. Responding to the long term question first, on the Q2, our new business CSM, new CSM reported multiple was 13.8 times. And in Q3 and Q4, we're looking forward to above 14 times. So the key drivers behind the increase in the CSM multiple is the fact that we have adjusted upwards the pricing of the no lapse policies in April. And also, we've made changes to the assumed rate as of August that will have an impact on the CSM multiple. And there are some other measures that will help with the upward trend of the CSM multiple, for instance, deploying new product that is underpinned by a positive impact on the new business multiple. So we're gradually and in parallel continuously having a oversight or managing our portfolio so that we could achieve that objective. In regards to the current discussions on adjusting the maturity of the insurance policy, what we know as of today is that it will be managed to a level that is based off of managing against the duration matching level, but there are no details that are out yet. But we believe and expect that it will not have an impact on our bottom line or profitability. Yes. Regarding the auto insurance from the natural catastrophe, there was about impact of about 40,000,000,000, regarding the heavy rainfall, that we experienced. And as of, July, the impact was 10,000,000,000 from July, the month of July that is. And the damage that was incurred from such heavy rainfall, is quite similar to the level that we experienced previous year because July, the amount was about JPY 10,300,000,000.0. Thank you for your question. We'll now take the next question. The following question will be presented by Sunjin Kang from KB Securities. Please go ahead with your question. Thank you for taking my question. I understand that Samsung Fire and Marine is managing your risk loss ratio as well as the profit from your auto line quite well. But the current difficulty, I understand, is because of the headwinds that you face in the operational environment or backdrop. When do you think that this turning point could actually come? And what will keep what could be a driver of bringing that turning point? Second question is that your earnings is quite good. Would like to know as to what is the key driver behind that significant increase on a consolidated basis your investment gain? I am Lee Kyung from auto insurance division. The biggest driver behind this is actually the increase in the basic premium for the auto lines that had an impact on our profit. As of today, it will be difficult to look forward to another cycle of such. So what we are doing is expanding on the offering of the protection treaties and the riders. And also in Q2, we have contracted or we have reduced the amount of discount related riders that we offer to our customers and are in the process of rationalizing the excessive discount rate that had been previously given out. And also, we are making use of different opportunities to upsell to certain other coverages and protection to help us give us a support in terms of our insurance profit going forward. As you can see from the slides that we have shared, it's quite important for us to see and drive a rebound in terms of the premium earned from each of the auto policies that will dictate when and how the turning point actually comes. So thanks to all of the measures that we've been put in starting April, we believe that latest end of this year, we will be able to see that rebound in per vehicle recurring earned premium. And that would in turn have an impact on supporting our profit. Yes. Responding to your second question about our investment gains, I am VP of Finance Planning, Song Hyeong. So as you can see from the slide, in the first half, our investment gains have actually gone up on a year over year basis by 5.6% or 80,000,000,000. So in the first half of the year, we were able to report a gain from investment. And as we have mentioned, we've really focused on expanding our high interest bearing asset as well as expanding on our exposure to interest bearing assets as well. So we've put in an effort to actually drive up the overall profitability and the investment return from the portfolio and have increased on the interest bearing portion. And also, it was an impact from the sales that we've done with regards to the equity securities that we had as well as selling off of the real estate beneficiary certificates. Thank you for your question. We'll now take the next question. The following question will be presented by Yeonjin Sol from SK Securities. Please go ahead with your question. Yes. My question relates to your the the protection accounts that you introduced back in the first quarter. What's an update on this product? What is its share out of your total new business? In the first two months of selling our protection account on a monthly basis, we reported a sales revenue of about 3,000,000,000 and its share out of the total exposure is about 15% to 20%. Thank you for your question. We'll now take the next question. The following question will be presented by Hyun Lim from Shinhan Investment and Securities. Please go ahead with your question. Thank you very much for good results this quarter. I have two questions. The first one, you mentioned that you're expecting to see about slightly above 14 times CSM multiple in the second half of the year, but still comparing to last year's CSM, it is lower. Like to therefore know as to understand as to what the extent of the impact will be from that lowering of the assumed rate on the CSM multiple. And I would think that there are also some negative drivers and factors as well, for instance, increasing loss ratio as well as the changes in the sales commission related framework, which may further kick start competition in the market. So there will be an impact both positive and negative. So we'd like to gain some understanding by receiving some more detail on these aspects. Second, the authorities are currently talking about changing assumptions relating to loss ratio and the expense ratio. What is the background to this discussion? And if that is actually put in place, what would be the financial impact on Regarding the impact that we get from the changes in the assumed rate, it is an increase of 0.6 to 0.7 times the multiple. And yes, as you've mentioned, we've been spending more sales selling related expenses that had an impact of lowering the multiple by zero point one and zero point two times. And also on a quarterly basis, there is a discount related impact that has a plusminus impact of around 0.2x. Now regarding the current discussions ongoing at SSS level, it has to do with the guidelines for the loss ratio and an expense ratio. And it all started because on an yearly basis, whenever there were certain issues that erupted, there were certain guidelines that were handed down on a piecemeal basis. So now they're talking about coming up with an overarching criteria and a threshold that will help with the managing of the assumptions. So once again, this current review has not been triggered by any specific one off event or an issue. Basically, it is to take a look at the overall assumption related policies and changes that are applied to such policies from an overall relevance perspective and compliance perspective. So they're making certain improvement as I understand it. So at this point, we do not have any detailed information that is out yet. So it cannot say what that what the financial impact would be to the company. Since there are no more further questions, we will now conclude the Q and A session. Once again, thank you for attending today's presentation. This concludes our fiscal year twenty twenty five first half earnings results