Good morning and good evening. Thank you all for joining the conference call for the Hyundai Insurance earnings results. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star and one on your phone during the Q&A. Now we will begin the presentation on Hyundai Insurance's second quarter of fiscal year 2025 earnings results. 안녕하십니까? Hyundai Marine & Fire Insurance에서 IR을 담당하고 있는 경영관리파트 Dong-gun Kim입니다. 바쁘신 와중에도 Hyundai Marine & Fire Insurance의 2025년 상반기 실적 발표 컨퍼런스 콜에 참여해 주셔서 감사합니다. 본 컨퍼런스 콜은 질의응답을 포함해 약 1시간에 걸쳐 Gu Byeong-mun 순차통역으로 진행되며, 먼저 2025년 상반기 경영실적 및 하반기 전망에 대한 발표 후 이어지는 질의응답 시간에는 배석한 경영진이 참여합니다. Hello, everyone. I am Dong-gun Kim in charge of IR. First of all, I would like to thank our investors and analysts for joining our 2025 first half earnings conference call despite their busy schedules. Today our call will take approximately one hour, including presentation and Q&A. Korean and English consecutive interpretation will be provided after the presentation of our first half earnings and outlook for the second half. We will have a Q&A with the management present here today. 지금부터 상반기 경영실적 리뷰와 향후 전망에 대한 발표를 시작하겠습니다. We will now begin the presentation of the first half of 2025 performance review and outlook for the second half. 안녕하십니까? 현대상 기획관리부문장 정규완입니다. 이천이십오 년 상반기 컨퍼런스 콜에 참여해 주신 투자자 및 애널리스트 여러분께 감사의 말씀드립니다. Good afternoon. I am Kyuwan Jeong, Head of the Corporate Planning Division at Hyundai Marine & Fire Insurance. I would like to extend my sincere appreciation to all investors and analysts for joining our 2025 first half earnings conference call. 지금부터 2Q 경영실적에 대해 설명드리겠습니다. 3 페이지 경영 성과 요약입니다. 2025년 2Q 별도 기준 당기순이익은 전년 동기 KRW 3,557억 대비 30.4% 감소한 KRW 2,478억 원을 기록하였습니다. 일반 장기 자동차 전 보종에 걸쳐 손해율이 상승하면서 회사 전체 보험 손익은 전년 동기 43.4% 감소한 KRW 2,127억을 달성한 반면, 투자 손익은 전년 동기 대비 35% 증가한 KRW 1,295억을 기록하였습니다. 상반기 말 기준 ROE는 19.6%였습니다. Let me begin with our second quarter results. Please turn to page three for the performance summary. For 2025 second quarter, net income on a standalone basis was KRW 247.8 billion, down 30.4% from KRW 355.7 billion during the same period last year. Across commercial, long term and auto insurance lines, loss ratio increased, leading to a 43.4% YoY decrease in overall insurance underwriting profit to KRW 212.7 billion. On the other hand, investment profit rose 35% YoY to KRW 129.5 billion. At the end of the first half, our ROE stood at 19.6%. 사업 부문별 성과에 대해 말씀드리겠습니다. 부문별 성과는 2분기 실적 중심으로 설명드리겠습니다. 4페이지에 보시는 바와 같이 장기보험의 2분기 보험 손익은 전분기 대비 61.1% 증가했습니다. CSM 상감수익이 전분기에 이어 견조한 증가 추세를 보인 가운데 독감 등 호흡기계 유행성 질병 관련 손해액이 빠르게 안정화되며 보험금 예실차 적자 폭이 상당 부분 축소되었습니다. 의료 대란에 따른 일부 질병 담보의 일시적 손해액 감소와 호흡기 질환 관련 실손보험금 안정화로 예실차 실적이 양호했었던 전년 동기 대비로는 기저효과로 인해 36.6% 감소한 실적을 기록하였습니다. Moving on to performance by business segments. I will focus on second quarter results. On page four, you will see that long term insurance underwriting profit increased 61.1% quarter-on-quarter. CSM amortization income continued its solid growth from the previous quarter, while claim payments related to respiratory infectious diseases, such as influenza, stabilized rapidly. This resulted in a significant reduction in the loss from claim variance. However, compared to the same period last year, underwriting profit declined 36.6% due to a base effect. This is because last year's second quarter performance benefited from temporary loss reduction in certain disease coverages due to the medical service disruption in Korea and from the stabilization of healthcare insurance claims related to respiratory illnesses. 단기보험 신계약 매출을 보면, 이 분기 월평균 신계약 실적은 KRW 10.1 billion으로 전년 동기 월평균 KRW 10.8 billion 대비 7.3% 감소하였고, 임보험은 월평균 KRW 9.1 billion으로 전년 동기 대비 7.2% 감소하였습니다. For long-term new business sales, second quarter monthly average of new business premium was KRW 10.1 billion, a 7.3% decline from KRW 10.8 billion last year. Healthcare insurance. For healthcare insurance, the monthly average was KRW 9.1 billion, down 7.2% year-over-year. Looking at CSM for long-term insurance on the next page, the CSM balance at the end of the first half stood at KRW 9,376.4 billion, showing a rapid recovery supported by the April premium rate hike and ongoing increases in new business CSM. The new business CSM multiple has continued to improve since the strategic rate increase in April, recording 18.9x for healthcare insurance and 17.4x for total long-term new business in the second quarter. As a result, despite the decline in healthcare insurance sales, the total new business CSM amount increased 20.7% YoY to KRW 525.7 billion in the second quarter. Going on to auto and commercial insurance, turning on page six. Auto insurance underwriting profit was KRW 0.9 billion in the second quarter, down 97.7% YoY. This was due to the ongoing impact of premium rate reductions combined with higher claim costs from increased auto repair labor charges and rising use of Korean medicine treatments. Commercial insurance profit was KRW 27.6 billion, down 39.5% YoY, mainly due to large loss incidents such as the Kumho Tire plant fire. These are viewed as one-off events. Next, on our asset management. On the investment side, as part of our efforts to strengthen capital adequacy, we have been increasing our allocation to long-term bonds, resulting in a continued rise in the proportion of domestic bonds in our portfolio. In the second quarter of 2025, investment profit rose 35% YOY to KRW 129.5 billion, driven by sustained growth in interest income, valuation gains from equities and structured bonds, and higher foreign exchange gains within insurance and financial results due to a weaker Korean won USD exchange rate. Capital and K-ICS ratio. At the end of second quarter 2025, shareholders equity increased by KRW 524 billion from the end of the previous quarter, mainly due to higher market interest rates. Our K-ICS ratio improved by 10.6 percentage points quarter-on-quarter to reach 170%. This was supported by an increase in available capital from higher interest rates and a reduction in required capital through active duration management, including long-term, expanding long-term bond purchases and entering into forward contracts on government bonds. Let me now share our business outlook for the second half of 2025. Our key strategic focus will remain on enhancing profit generation capacity and improving capital adequacy through active asset liability duration management. First, building on the improved profitability of long-term new business achieved over the past two years, we will concentrate on increasing the total CSM in the second half. We aim to maintain the new business CSM multiple at industry-leading level of around 17x in the second quarter. We will also strengthen control over loss ratios, expense ratios and persistency rates to minimize year-end CSM volatility, thereby establishing a foundation for sustainable growth. Second, we will continue to focus on narrowing the asset liability duration mismatch gap. On the asset side, we will expand long-term bond purchases and actively utilize derivatives such as bond forwards. On the liability side, we will adjust our product portfolio to increase sales of long-term insurance products with lower interest rate sensitivity, thereby reducing our interest rate exposure. While external factors such as market interest rates and regulatory changes remain uncertain, through these capital improvement measures, we plan to maintain our RBC ratio above 100%, our K-ICS ratio above 170% by year-end, exceeding our initial projection. This concludes our presentation of the 2025 first half results and second half outlook. Thank you for your attention. This concludes our presentation. 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. The first question will be provided by Dan Wang from J.P. Morgan Securities. Please go ahead with your question. Hi, good afternoon, and thank you for taking my question. I have two questions. The first one is about the dividends. Under the current like surrender value reserving practice, like the dividend proposal by the year-end might still face some challenges. I want to know from the perspective of management, like can you just share out some update regarding the guidance for the year-end dividends? The second question is about the solvency capital. In, in your PBT in the section of capital, it seems like the company's solvency ratio exhibits the relatively higher sensitivity against the interest rate movements. Can you explain to us what could be the key reasons behind that and what could be the key solutions from the company to tackle with that? Thank you. Can you please repeat the second question? It's, in particular, first part of the second question. Yeah. Yeah. In a slide, namely the capital that slide is the company shows that the solvency ratio has a lot larger sensitivity against the interest rate movement. I want to know about the reasons behind that and what could be the solution to tackle with that. Dan Wang입니다. 질문 기회 주셔서 감사합니다. 첫 번째 질문은 이 배당 관련해서 어떤 변동 사항들이 예상이 되고 있는지 여러 가지 제도 변경 등 시장 상황 변동과 대비해서 배당이 연말까지 어떤 식으로 진행될지에 대한 배당 관련 업데이트 부탁드립니다. 두 번째로는 자본이 이 금리 민감도가 좀 더 높은 것으로 보여지고 있는데요. 이에 대해서 회사에서는 어떤 식으로 대응할 예정이며, 이것이 픽스 비율에 미치는 영향이라든가, 또 이 부분에 대해서 회사에서는 어떠한 대책을 가지고 있는지 궁금합니다. 네, 기획관리부문장 정규환입니다. 그 배당 관련 질문에 대해서 답변드리도록 하겠습니다. 그 지난 이월 저희 기업 설명회 때도 배당 관련 질문이 있었는데 그때 제가 드렸던 답변이 크게 두 가지였습니다. 하나는 우리 내부에 이제 이익 창출력의 증가가 중요하고, 특히 저희가 제도 개선이 되지 않고서는 배당이 가능한 상황이 되지 않기 때문에 제도 개선이 굉장히 중요한 포인트라고 말씀드린 바 있었습니다. I am Kyuwan Jeong, in duty management and I will be answering the first question regarding the dividend portion. I received a similar question during April, during our IR call, and I provided a similar answer to this question. It's two fold. It is important for us to increase our capability to generate profit internally. For this to be possible, it is also important that changes into the regulatory system needs to be taken, or else we will not be able to pay out dividends. 그 제도 관련돼서는 크게 이제 세 가지로 말씀을 드릴 수가 있는데 그 당시에 제가 우리 회사의 이제 이익창출력 개선을 위해서는 그 실손보험 비중이 많은 회사의 특성상 실손과 비급여에 있어서의 제도 개선이 중요하다라고 말씀을 드렸었는데, 언론에서 발표된 바와 같이 실손과 비급여에 대한 정책 발표가 있었기 때문에 좀 긍정적인 상황이 왔다고 생각하고 있습니다. 두 번째로 그 부채 할인율 제도 완화에 관한 사항들이 중요한데, 이것 역시 최근 언론에 나와 있는 것처럼 금융당국에서 제도 완화 방향으로 지금 진행을 하고 있기 때문에 이것 또한 긍정적인 신호로 보고 있습니다. Regarding change in the regulatory system, I spoke about three areas that need to be improved during our February call. The first thing is that for a company that has a high portion of indemnity insurance products, for us to be profitable, we have to see some changes into the system regarding non-reimbursable indemnity related claims. There have been coverage in the media regarding the anticipated changes to system related to non-reimbursable. This is perceived as a positive signal. The second is related to our liability discount rate, which is anticipated to be done in a more alleviated way. Once again, the financial regulatory are disclosing some positive signals via the media. 제도 개선의 세 번째 사항으로 해약환급금준비금 관련 이슈가 있는데, 본 사항은 지금 아직 정부 당국에서 명확한 입장을 표현한 바가 없기 때문에 이 자리에서 저희가 상당한 노력을 하고 있다라는 것 이상으로 말씀드리는 거는 조금 조심스러운 상황이긴 합니다. 이런 노력들이 이제 가시적으로 보여지면서 회사에 배당 가능한 상황이 다가오는 시점에 좀 더 시장과 적극적인 소통을 할 수 있도록 그렇게 하겠습니다. 감사합니다. The third portion of the regulation is related to reserve for reimbursement for lapsed, the surrender value of lapsed policies. For this also has to be improved, but we are not hearing concrete discussions regarding this portion. However, overall, we believe that we are coming closer to a time and point when the company can pay out dividends. When that time comes, we at the company will be communicating very closely with the market. 예, Risk Management Division Hong Seok-yong 상무입니다. 두 번째 질문하신 그 금리 민감액이 많은 거와 그거에 대한 향후의 관리 방안에 대해서 말씀드리도록 하겠습니다. I am Hong from the Risk Management Division, and I will be addressing your question about the portion, about the fact that our company has a large portion of capital that has high sensitivity to changes in interest rates. 첫 번째 금리 민감액의 큰 원인은 저희가 그 수익성이 높지만 만기가 긴 어린이 보험 등에 대한 비중이 좀 많기 때문이고요. 이거에 대한 대책으로 해서 최근에 신규 계약에서 금리 민감해 관리를 철저히 하고 있습니다. The first reason why we have a higher portion of capital amount that is highly sensitive to interest rate is because the portion of children insurance products is quite high for our company. For this product, it is highly profitable. The duration is very long as it being a child insurance product. In order to address this, we are managing the sensitivity, interest rate sensitivity, recently for new business. 이를 위하여 연만기 비중을 확대하고 있으며 보험료 갱신 비용을 확대하고 있습니다. 또한 자산 부분에서는 그 자산 리밸런싱을 통해 장기채 비중 확대와 선도거래 비중을 확대하고 있습니다. In order to address this issue, we are increasing the portion of year-end maturity products and also renewal, products. For our asset side, we are taking on more long-term bonds and forward bonds. 3월 말 기준으로 듀레이션 갭이 삼점 칠에서 현재 6월 말에는 삼점 영으로 영점 칠년 개선되었고요. 연도 말에는 저희가 금리 리스크 경감을 통해서 이점 영 이내로 관리할 예정입니다. At the end of March, the duration gap was 3.7 years. In June, end of June, the duration gap was improved by 0.7 years to stand at three years. By the end of the year, we will be additionally reducing our interest rate risk to reduce that duration gap to 2.0 years. 금리 민감액이 10 BPs 하락했을 때 그 2.5 percentage points 그 픽스 비율이 하락되는 것으로 예상되고 있습니다. 향후에도 지속적으로 금리 리스크 경감을 통해서 이 금액을 축소해 나가도록 할 예정입니다. 이상입니다. If there is a reduction of 10 basis points, then this leads to a 2.5% point reduction or improvement in our K-ICS. We will be continuously making improvements on our interest rate risks. 네, 질문 감사합니다. 다음 질문을 계속 받도록 하겠습니다. Thank you for the question. Next question, please. 다음으로 질문해 주실 분은 한화투자증권의 김도하 님입니다. The following question will be presented by Do-ha Kim from Hanwha Investment & Securities. Please go ahead with your question. 네, 질문 기회 주셔서 감사합니다. 저 보험금 쪽에서 하나랑 그, 듀레이션 관련해가지고 하나 여쭤보려고 하는데요. 저희 예실차가 전분기에 비해서 개선된 거는 맞지만 제가 그 업종 전반적으로 다들 보험금 증가세가 좀 있는 것 같아서 실제 보험금을 따로 보고 있는데, 저희 같은 경우 발생 보험금이 전분기랑 유사한 수준이신 것 같고, YOY로도 한 16% 증가한 것으로 보입니다. 예실차도 예실차인데 절대적인 보험금 증가세에 대한 별도의 파악이 좀 더 있어야 할 것 같아서요. 혹시 이번 분기에 한정했을 때는 이러한 보험금 증가의 요인이 실손, 비실손으로 나누어 주실 수 있는지, 비실손 내에서도 혹시 특정 담보에서 손해율 올라오는 부분들이 캐치되는 게 있는지 공유해 주시면 도움이 좀 될 것 같고요. 듀레이션 관련해서는, 저희가 개선을 QOQ로 많이 해주셨지만 그래도 절대값으로는 아직 넓은 상태인 것 같은데 최근에 금융당국에서 그 듀레이션 언매칭 심화하면 신계약에 조금 지장이 있을 수 있는 식의 언급을 해주었는데, 해외사를 참고했을 때는 아마 마이너스, 플러스 마이너스 1, 2년 정도의 갭이 기준이 되지 않을까 하는 예측이 있는 것 같습니다. 만약에 저희 연말 목표치로는 마이너스 2년 이내라고 말씀주셨는데 그 수준에서도 안전하다고 보기 조금 어려울 것 같아서요. 저희 이거 감안, 금융당국 스탠스 감안하여 신계약 관련해서 뭐 어떤 계획을 갖고 계신지, 플랜B가 있으신지 궁금합니다. 감사합니다. Thank you for the opportunity to ask a question. I have two questions. One is related to the claims and the second one is related to duration. I know that there have been improvements made in the claim variance. However, I understand that in the insurance industry in Korea, overall claims have actual claims have gone up. If so, I would like to know what your actual claim that have been paid out was. There should be some information related to this. For these claims that have been paid out, what is the portion between non-indemnity and indemnity? For the non-indemnity, is there a particular insurance product that led to increases into the claim payout? Next, I want to ask a question related to duration. I know that there have been improvements into your asset liability duration matching improvement quarter-over-quarter. I understand that the Financial Supervisory regulators are looking into this duration mismatch issue and that this may, in the future, have an impact on new business. Looking at overseas, it seems that the standard may become ±1 year. You said that by the end of the year, your duration gap will be 2.0 years. This might not be safe yet. Are there any additional plans related to new businesses as a plan B to reduce your duration gap additionally? 장기 업무본부장 최영준 상무입니다. 보험금 관련해서 먼저 말씀드리도록 하겠습니다. 이 보험금의 증가는 각 사의 매출에 따라서 좀 영향이 있기 때문에 먼저 손해율로 먼저 일단 말씀을 좀 드릴까 하는데요. 실손은 당사가 상반기 기준으로 2% 하락하였고, 실손 외는 2.4% 증가했습니다. 합산으로는 1.4% 정도 상승을 하였습니다. I am Choi. I am in charge of the long-term insurance products division. Regarding your question on the claims that have been paid out, this depends on the revenue of individual insurance companies. That will have an impact. I would like to explain the claims payout based on loss ratio. For the first half of 2025, for indemnity, we saw a reduction of loss ratio of 2%. For non-indemnity, it was 2.4%. Overall, there was an increase of 2.4% for non-indemnity and therefore overall it was a 1.4% increase. For the non-life insurance sector in Korea, the loss ratio improved by 4%-5% whereas we were better than the overall industry. In terms of the actual loss, the claims that have been paid out for our company, it was increased. That amount was increased by 10%, whereas for the industry it was 15%-9%. It is our understanding that actual the loss amount due to claim payout, our company fared better than did our peers. I am Hong Seok-yong from the Risk Management Division. I will be addressing the duration question. First of all, the regulators regarding the ALM regulation through their press release, have stated that they have not determined the regulation and that it will be done gradually. FSS also has stated that this will be done gradually and that it will be, it will take time. Regarding the insurance liability discount rate, the LOT of that being extended from the current 23 years, it is stated that it will be gradually extended starting from 2027. Even in 2027, it won't be extended suddenly. The 23-year LOT will just be extended to 24 years. If this is adopted in 2027, then we believe our duration gap can be maintained and managed within 1.5 years. Even if such a system is adopted in Korea, about the ALM management, the impact on our new business will be limited. Separate and aside from the changes in the regulation, we plan to manage our duration gap in the mid to long term within one year. I am Kim, and I am in the marketing planning division. I would like to be talking about our strategy in terms of interest rate sensitivity of new business. First of all, it is our strategy to increase the portion of year-end maturity insurance products, the composition of this. Compared to the end of last year, in the first half of this year, we were able to increase the portion of the year-end maturity insurance products by three percentage points. In addition to that, for the insurance products that have high interest rate sensitivity, we will set limitations on this. We will be managing the sales of our various insurance products based on the product type and the maturity of those products as a portfolio. In particular, for the child insurance products that have a high sensitivity to interest rates, we will induce and encourage the year-end maturity products. Thank you for the question. Next question, please. The following question will be presented by Hee-yeon Lim from Shinhan Investment and Securities. Please go ahead with your question. Thank you for the good results. I have two parts in my question. The first part is related to changes in the regulatory system and the second is related to CSM. Relating to the systems, I would like to ask you about the policy surrender return value. When do you think this policy will be adopted, and when do you think there will be improvements here? What types of recommendations do you think the regulators will be adopting from the industry? Next question is about your new business. It seems that you have quite high quality new business recently. What did you think is the competition landscape? The next question is related to caregiver claims. I understand that this care payment for caregivers, and it is having a negative impact on your loss ratio, and that there will be some discussions according to the regulators, regarding improvements made to this item. Could you give us some insights into that? Next, related to CSM, can you give us a breakdown of the adjustments made to your CSM? It seems that your CSM quality has improved, the multiple has improved. Is there a particular insurance line that has contributed to the improvement of CSM? Is there an internal index that you use to assess your CSM quality and level? I am Kyung-Dong Kim from the Actuarial Division regarding reserve for surrender value. It has been three years since this has been in operation. Compared to what had initially been planned, the consensus within the industry that the regulation is too severe. 지금 그 이후에 해약환급금준비금 적립 수준을 보면, 그것보다는 그 이후에 신계약에 의한 적립액이 대부분을 차지하고 있습니다. The justification of adopting this initially was that it will protect existing policyholders as there have been changes to the new IFRS system. Looking at the way the reserves are being accumulated, it is not actually coming from mostly from the existing policies but through the new businesses. 해약환급금준비금 적립액이 좀 과도하게 증가되고 있는 부분에 대해서 여러 가지 개선안을 지금 얘기를 하고 있는데, 그중에서 지금 최근에 그 의견이 모아지고 있는 부분은 그 신계약에 의한 그 적립액에 대한 개선, 그 부분을 집중적으로 지금 논의를 하고 있는 중입니다. That is why the reserves for the surrender value have been accumulated quite excessively, and that is why there have been discussions about this recently. Most of the discussions on making a improvements to this system is related to new business. 지금 구체적으로 이제 금융당국에서 어떤 반응이 있는 건 아니지만, 업계 전체적으로 볼 때 이 제도가 지속 가능하기가 좀 어렵다는 인식이 있기 때문에, 어떤 뭐 시점을 특정할 수 없지만 제도 개선 가능성은 크다라고 생각하고 있습니다. 이상입니다. Although the financial regulators, have not, specified and, discussed this in concrete, yet the industry believes that, this system is not sustainable. Therefore, it is believed, within the industry that at some time in point, there will be improvements to the current, reserve for surrender value system. 장기상품본부장 윤경원입니다. 간병인 보장 관련돼서 답변을 드리도록 하겠습니다. I am Yoon, head of the Long-Term Insurance Products, and I will be talking about the coverage for caregivers. 간병인 보장 관련한 담보는 2024년 말부터 2025년 1분기까지 시장에서 가장 판매 이슈가 되었던 담보는 맞습니다. 당사도 역시 판매는 했지만 당사는 상대적으로 좀 안정적인 운영 판매를 했고요. 현재 손해율 상으로도 크게 이슈가 발생하고 있는 담보는 아닙니다. 업계의 다른 회사들의 손해율 모니터링을 좀 강화하고 보장 내용 개선이나 이런 부분들을 지속적으로 검토해서 문제가 생겼을 경우 신속히 대응하도록 할 예정입니다. 이상입니다. It is true that coverage for caregiver costs was a major issue in the end of 2024 and first quarter of 2025. This was a major sales issue. For our company, we have been selling this product, insurance product. However, it was done quite stably. In terms of the loss ratio of this insurance product, it is not in a serious state at all. However, we are reviewing the loss ratio of the caregiver coverage insurance product of other companies keenly. As soon as we identify any issues, we will be addressing them as they come out. 장기영업본부장 최영준 상무입니다. CSM 배수 관련된 부분 좀 말씀드리겠습니다. 현재 판매되는 담보 중에 CSM 배수가 높은 담보는 치료 중심의 담보들입니다. 암 주요 치료비라든가 항암치료, 그 다음에 약물치료, 그 다음에 심장과 뇌 관련된 2 major 진단 치료 등의 담보들이 고CSM 배수로 형성하고 있고, 당사에서는 해당 담보의 시책을 부과하여, 유입량을 좀 증대시키는 노력을 하고 있습니다. I am in the Long-Term Insurance Product Business, Choi, and I would like to talk about the CSM. Out of the insurance product that we are currently selling, the ones that have a high CSM are the insurance products that are related to treatments such as cancer treatment, anti-cancer chemotherapy, and cerebral and vascular disease related items and diagnosis of these two major diseases. We are adjusting the inflow of these types of insurance products. CSM 배수도 평가로 관리를 하면서, 영업 현장에서, 납기가 긴 계약들의 유입을 늘리고 CSM 배수가 어느 정도 높게 형성되어야 된다는 영업의 그 문화적 그 인식을 좀 자리를 좀 잡은 걸로 그렇게 현재 보고 있습니다. CSM multiplier, multiple is being used as an index of evaluating our people and into the sales. If you go out in the field, there is an understanding and culture and awareness that it is important to have a long-term premium payment and sales of insurance products that have a high CSM multiple. 인보험 기준 배수 8x를 계속 유지하도록 목표 현장과 본사가 동일한 목표 기준으로 지금 움직이고 있다는 점 다시 한번 말씀드립니다. For our healthcare insurance, we are striving and targeting to maintain the CSM at 18x. This is, this level of 18x is a target at the headquarters and also at the sales force in the field. Regarding adjustments of CSM in terms of the claim variance and other variances, we have seen a reduction of KRW 100 billion. This has been improved thanks to efforts to increase our persistency ratio. Thank you. Next question, please. The following question will be presented by Jae Won Lee from HSBC. Please go ahead with your question. Yeah. I am Lee from the commercial insurance product, and I will be addressing this question on deterioration of profitability and the reduction in your retention rate of commercial products. The reason why we experienced deterioration of our profitability YoY was because of the two major property related losses incidents that occurred in the second quarter, which led to an overall increase in our losses. This has also led to a reduction in our retention rate. Due to these two major incidents that took place, it led to an XOL of KRW 25 billion. This has led to a reduction of our retention rate of 4%. If this effect is eliminated, then our retention rate is similar to the previous year. In addition to that, in the first half of this year, we saw an increase of our overseas insurance product sales, and that is what also led to a decrease in our retention rate. current 상황을 모두 반영해 보면 저희 전체적인 보유율은 전년 동일 수준이고요. 저희 하반기 보유 전략도 변화 없이 계속해서 전년과 비슷한 수준을 유지할 계획입니다. 이상입니다. If we exclude the XOL reinstatement premium effect and this overseas insurance sales effect, the retention ratio is similar to last year and we will be maintaining our strategies to maintain a similar level in the second half of this year. 장기상품본부장 윤경원입니다. 하반기 CSM 배수 관리 관련해서 답변 드리도록 하겠습니다. I am Yoon from the Long Term Insurance Product Division, and I will be explaining our strategy for managing CSM in the second half of 2025. 말씀하셨듯이 예정률을 인하하면 CSM 배수가 상승하는 것은 당연히 맞고요. 당사는 대신 2024년 그 다음에 2025년, 2년간 경험요율을 2차례 조정을 함으로 인해서 CSM 배수의 큰 폭의 상승을 가져왔습니다. It is true that if the credit expected crediting interest rate is reduced that the CSM will increase. In the case of our company in 2024 and 2025, we made adjustments to our experience table, which led to an increase in our premium, and this has improved our CSM greatly. 최근 일부 사에서 예정률 인하를 August부터 시행을 했는데요. 당사는 타사 대비 현재 예정률이 2.8% 적용을 하고 있습니다. 최근에 인하한 회사들을 보면 3.0%를 예정률로 적용하고 있던 것을 2.75%로 낮춘 상황이고요. 당사하고 지금 OBP 차이가 나고 있지만 현재 수준은 계속 지속적으로 당사 좀 보수적으로 운영해왔다고 판단을 하고 있고요. 그럼에도 불구하고 시장 상황에 따라서 언제든지 예정률 조정은 할 수 있도록 준비를 하고 있습니다. 아직 시기를 특정해 놓고 있지는 않습니다. 이상입니다. For this anticipated interest rate recently, other companies have reduced this to 2.8%, 2.75%. However, this has been reduced from 3% to 2.75%, whereas we have been maintaining it at 2.8%. There is a difference of 5 basis points, but we are being a bit conservative in this area. However, we will be moving tightly according to changes in the market situation. 예, 리스크관리본부장 홍석현입니다. Duration 규제에 따른 신상품 판매 영향에 대해서 답변드리도록 하겠습니다. This is Hong from the Risk Management Division. I will be answering the question on the duration issue and, the influence that this may have on our new business. 앞서 말씀드렸듯이 금융당국에서는 duration 관련된 규제에 대한 확정된 바 없다고 얘기했고요. 1, 2년 내에는 문제 될 가능성이 낮다고 보고 있습니다. 이와 관계없이 우리 회사는 duration 관리를 1.5년에서 2.0 이내로 관리할 예정입니다. 이상입니다. As I have stated earlier regarding this duration issue, the regulators have stated that they have not determined anything yet, which means that the possibility of this becoming an issue in the market within one year and two is very slim. However, regardless of this, it is our company strategy to manage our duration gap at 1.5-two years. 네, 질문 감사합니다. 다음 질문을 계속 받도록 하겠습니다. Thank you for the question. We will go on to the next one. 다음으로 질문해 주실 분은 Daol Investment & Securities의 Jiwon Kim 님입니다. The following question will be presented by Jiwon Kim from Daol Investment and Securities. Please go ahead with your question. 아, 네. 지원 김주선, 감사합니다. 저는 빠르게 하나 여쭤보고 싶은데요. 원달러 환율 얼마당 보험 금융 비용이 감소되는지 정도를 여쭤보고 싶습니다. 감사합니다. I have a quick question related to the claim operation costs related to the Korean, the foreign exchange rate with the dollar. 재무본부장 김경동입니다. 환율 관련해서 보험 부채에 영향주는 거는 일반 보험의 해외 수제인데요. 딱 정확한 건 이제 아니지만, 1 KRW, per 1 KRW 100 million 정도 영향을 주고 있습니다. I'm from the Actuary Division regarding FX rate for our insurance liability. The foreign exchange rate is related to our overseas ceding. I cannot say exactly, but one difference will have an impact of KRW 100 million. 질문이 더 이상 없으시면 이상으로 컨퍼런스 콜을 마치도록 하겠습니다. 추가적인 문의사항은 저희 IR 담당자들에게 언제든지 연락 주시기 바랍니다. 그럼 참여해 주신 투자자, 애널리스트분들께 진심으로 감사드립니다. 감사합니다. If we have no further questions, we will conclude our conference call. We would like to thank our investors and analysts for participating. If you have any other further questions, please contact the IR team. Thank you very much.