Good morning and good evening. Thank you all for joining the conference call for the Samsung Life 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. We will begin the presentation on Samsung Life first quarter of fiscal year 2026 earnings results. [Non-English Content] Yes, good afternoon. This is Kim Yongkwon, Head of Samsung Life's IR team. Thank you for taking the time out of your busy schedules to join us for the first quarter 2026 earnings conference call for Samsung Life. Before we proceed with the Q&A, we will brief you on the key performance highlights for the first quarter using the materials that we have prepared and made available in advance. [Non-English Content] New business CSM increased 11% QoQ to KRW 848.6 billion, driven by balanced growth across both exclusive FC and non-exclusive channels, supported by sales of products with sound underlying profitability. Our new business CSM multiple remained healthy at 11.4x. [Non-English Content] The company continues to develop new health insurance products while implementing underwriting strategies that balance market expansion with disciplined risk management. In addition, we are enhancing the competitiveness of our health insurance portfolio by offering value-added services such as healthcare management and family bundled discounts. At the same time, we are revitalizing traditional whole life sales by diversifying product features and strengthening trust and inheritance planning solutions. Our exclusive sales channel continues to expand with the number of FCs increasing by approximately 1,500 YTD, contributing meaningfully to new business growth. [Non-English Content] Our CSM balance reached KRW 13.6 trillion, up KRW 0.4 trillion year to date, supported by solid new business CSM and stable insurance efficiency management. Our loss ratio was maintained at 85% in line with our business plan. We will continue to strengthen profitability management through various initiatives. In asset management, we remain focused on interest generating assets to support ALM, while continuing to diversify our portfolio to enhance investment returns. Amid rapidly changing macroeconomic conditions driven by recent geopolitical risks, we are also concentrating on strategic asset allocation and more disciplined investment management. [Non-English Content] Net income for the first quarter rose 89.5% YoY to KRW 1,203.6 billion, supported by stable insurance earnings, higher dividend income, and increased equity method and consolidated earnings from subsidiaries and associates. [Non-English Content] As of the end of the first quarter, our K-ICS ratio stood at 210%, up 12 percentage points from year end, driven by growth and net increase in CSM, earnings expansion, and favorable movements in the equity market as well as interest rates. Going forward, we will maintain our industry-leading capital position through continued growth in high quality new business CSM, improved insurance efficiency, and disciplined ALM management. [Non-English Content] Based on this solid capital strength and improving fundamentals, including CSM growth and higher net profit, we remain committed to our core shareholder return policy of delivering stable and sustainable dividend growth per share. Please refer to the distributed materials for further details on our financial results. Please also note that any forward-looking statements discussed during today's conference call are subject to change depending on domestic and global economic conditions and the operating environment. With that, we will now proceed to Q&A. [Non-English Content] 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. [Non-English Content] The first question will be provided by Seung-gun Kang from KB Securities. Please go ahead with your question. [Non-English Content] [Non-English Content] Yes. Thank you for the opportunity to ask quite a detailed question on shareholder return policies. Recently, you have seen a rise in Samsung Life share prices. It is underlined by steady growth in your business and also your very well-managed performance in part. I think a big part of the upside in share prices are the broad market expectations of special dividends from Samsung Electronics, perhaps to be paid within 2026, which then will be reported in your first quarter 2027 financials. I think part of the upside in share prices actually reflect those expectations. In the fourth quarter, you said that you want to stably or steadily increase your DPS with a mid to long term payout target of 50%. If we foresee this kind of large scale special dividend payment from Samsung Electronics, and it does play out as the market largely expects, then certainly it will contribute significantly to your 2027 earnings, it will serve as a high base for your performance comparison thereafter. My question is, if in fact you incur this large scale non-recurring profit, will you still determine your dividend policy even for the given year based on your criteria or target for payout? Will the absolute value of DPS serve as the more prevailing criteria, which means that you will not be distributing the full amount just in the current period, more steadily over multiple years, which between payout versus absolute DPS amount is the higher priority? [Non-English Content] Yes, this is Lee Wansam, the CFO. First I would like to thank all of you for the large turnout today. [Non-English Content] I do realize given the strength of Samsung Electronics performance, there are heightened expectations of greater shareholder returns from Samsung Life as well. [Non-English Content] However, we kindly seek your understanding that given how Samsung Electronics has not provide any firm commitment about its intentions for dividend payouts or shareholder returns, we are also in a position where we cannot provide details on our future plan based on these pending assumptions. [Non-English Content] If in fact, as the market expects, Samsung Electronics does provide large scale cash dividends, no matter what exact means they use to deliver those shareholder returns, I think you will all know that those gains will be recorded under our retained earnings. [Non-English Content] Like we have explained before, the increase in retained earnings from dividend payments from SEC will be included in the available pool of resources to fund dividends, and we will determine the exact payout amount after studying the payout. [Non-English Content] I have previously communicated that in case we maintain our K-ICS ratio above a certain threshold, we will continue to steadily increase our DPS year on year and deliver DPS growth above and beyond our ordinary earnings growth. [Non-English Content] While we do not know the exact scale of net profit for next year or the exact size of the special dividends, if any, we will study those conditions to try to deliver DPS growth above the ordinary earnings growth. [Non-English Content] Regarding the last part of your question, in the event that there is a very sizable dividend payment, will we be distributing those, making those distributions over multiple years in line with our stated goal of growing our DPS year-over-year? In the event that it is a very large scale amount, we are open to that kind of spread out distribution. [Non-English Content] We are committed to doing our best so that we can anchor ourselves as a very stable dividend growth stock, expanding DPS again at a higher rate above ordinary growth, of course, mobilizing all distributable profits. [Non-English Content] The following question will be presented by MW Kim from JP Morgan Securities. Please go ahead with your question. [Non-English Content] [Non-English Content] Yes, this is Myungwook Kim from JP Morgan Securities. First, I would like to congratulate you with market cap above KRW 60 trillion. I think Samsung Life shares have been re-rated on the market. Congratulations. I just have two questions for Samsung Life, now one of the representative financial companies in Korea. If you look at the dialogue with Asian or other global leading insurance companies, prior to IFRS 17, a lot of the talk was about Capital Adequacy. Over the last two years, I think there has been a large shift toward Capital Efficiency. If you look at your capital position, whether you're looking at Core Capital or the K-ICS ratio, it does seem that you certainly have abundance in capital strength, and compared to the capital ratio that you communicated as being a target in the past, you're already above that amount. When you contemplate deployment or allocation of excess capital going forward, what kind of high level roadmap do you have in mind? Which direction would you like to direct more of that capital in order to enhance the corporate value of Samsung Life going forward? Second question has to do with your product portfolio. In the past, when somebody was thinking of Samsung Life, it was associated with a company very good in whole life. Over the last five to 10 years, it's not only whole life, but you're now very accomplished in health or other survival benefit type products and have really transformed. But the survival benefit type health products, while they do have good benefits, they do have more significant underwriting risk. When you look out the next three to five years, how do you foresee growth in the whole life market versus the health market? What is your general outlook, and what is your envisioned positioning on those markets going forward, given the aging demographics, where do you see potential more potential opportunity in terms of your portfolio? [Non-English Content] Yes, this is the CFO, Lee Wansam again. The fact that we have reached, in fact exceeded KRW 60 trillion in market cap, I think is largely thanks to the interest and encouragement of many of you here. Once again, thank you very much for the congratulations. [Non-English Content] Relative to the minimum K-ICS target of 180%, based on our prior communication, well, we have already exceeded that amount with a K-ICS ratio of 210% in the first quarter. The excess capital, of course, will be proactively directed to enhancing shareholder value and to fund the future growth of the company. [Non-English Content] In terms of delivering higher shareholder value and higher shareholder returns, we are committed to making. We will continue to follow our strategy of gradually increasing our payout up to 50%. Over the last five years, our DPS actually has grown by more than 16% annual average. Going forward, we will continue to grow our DPS again at minimum above ordinary or recurring earnings growth as we contribute more proactively towards shareholder returns. After doing that, for any excess capital, we will use to fund potential M&A opportunities in either the insurance or asset management space. Also, we are examining different prospective opportunities to diversify our investment portfolio and also looking at new business areas including senior living. May I elaborate a little bit on our global business? Right now we have operations in Thailand and China. While the size is still small, still we have experienced very rapid pace of growth and improvement in the P&L. To leverage this momentum, we are exploring possible new M&A opportunities. As a life insurance company, of course, we are highly committed to ALM as the number one priority. Against that, with that as a base, we are diversifying into different investment assets to maximize our investment returns. We're exploring different investment opportunities. For alternative investments, we are enforcing rigorous monitoring, looking at both stability and returns, to manage our exposure. And in keeping with changing demographic trends, also changes in the competitive landscape, we want to expand the role or our role as an insurer, beyond insurance into daily services as well, looking at adjacent markets like healthcare or senior living, which can deliver very strong synergy with our core insurance business. [Non-English Content] Yes, this is Heo Jeongmu. I'm in charge of the Channel Marketing Team. Let me take your second question. At present, as of the first quarter 2026, in terms of the life insurance business, total new business is KRW 100 billion, and it is split roughly 50/50. KRW 50 billion in health type products, the other KRW 50 billion in death whole life. In terms of future market prospects, given heightened interest toward health and also aging, we think a lot of the growth will be driven by health. To reflect these trends, we have also increased the health related products as a percentage of our total revenue mix. What used to be KRW 6.7 billion in sales as of 2023 has now increased to KRW 14 billion as of the first quarter this year, reaching roughly 60% of our product portfolio. We will continue to grow this space, this healthcare or health related product space, while managing risk with strict underwriting and loss rate control. [Non-English Content] For the whole life or the death cover the market size currently is KRW 50 billion. We think that the broad market will see flat growth going forward as well. Our current market share is 25%-30%, but we will continue to address this part of the market as well. [Non-English Content] At Samsung Life, we currently have a trust AUM of KRW 560 billion regarding the death claim. We will continue to expand these types of products, life coverage connected with inheritance planning needs. [Non-English Content] This is the CFO. If I can just add a key highlight. We will retain our current dominant position in the traditional whole life space, leveraging our key strengths, which lies in consulting capabilities. Because we foresee significant growth going forward in health type products going forward, particularly the refund type or hybrid type health policies, as the industry leader, we will also play a pioneering role to broaden this part of the market as well and to continue to build out that business. [Non-English Content] The following question will be presented by Byunggun Lee from DB Securities. Please go ahead with your question. [Non-English Content] [Non-English Content] Yes. I just have two questions. First, regarding the increase in the surrender value reserves. I think, several companies actually have seen the reserves increase at quite a high pace, to the extent that non-policy reserves, actually may have had been replaced in some cases. Even for Samsung Life, while you did not have to accumulate these reserves, starting second half of last year, you did begin, and I think the reserve, the provisioning has actually increased quite quickly, as well in the first quarter of this year as well. I imagine that possibly there is a big impact from your variable type of products. If you look at third, fourth quarter last year, first quarter this year, how much surrender value reserving have you had to do on account of variable products? What is the reserving logic, if you don't mind explaining? In the event that, for example, there are losses in terms of your investment assets, can those reserves potentially decrease? The second question is the rise in expenses. Of course, this is not unique to Samsung Life only. Given your prior answers regarding the surrender value reserves, it does seem that the aggregate amount payable will not decrease necessarily. It's just that there will be a deferral of the payment period or the timing, which will, I think you said will lead to moderation in the pace of accumulation. Given how the 1,200% rule is likely to be expanded in the second half of this year, how is this impacting your expensing, your execution of new acquisition expense currently? [Non-English Content] Yes, this is Bae In-Cheol from the Actuarial Team. Let me take the first question. You are right. Many life insurance companies are now in a similar position of having to do surrender value reserving. We also started at the end of last year, and as of the end of the first quarter, our reserve stands at KRW 1.6 trillion, which is actually the lowest in the industry. For us, the reserve actually increased, impacted by rising health policy sales throughout 2024, 2025. With the above rise in both share prices and interest rates, in the second half of last year, it is true that for those two quarters, we have had some impact from the variable products. In terms of a breakdown, a breakdown of the increase in reserves in the first quarter, I think it's 50% due to new business and 50% due to the above rise in variable reserves. [Non-English Content] Yes, this is Heo Jeongmu from the Channel Marketing Team. Let me take your second question. The broad life insurance market actually has grown from KRW 50 billion as of 2022 to now KRW 100 billion as of the first quarter of 2026. As the size of the total market grew, there was aggressive scouting or headhunting with companies competing for the planners, also excessive promotions and marketing fees that did drive up new acquisition expenses. However, the regulatory authorities are now going to crack down on those types of excessive practices and enforce the 1200% rule for GAs and FC starting in July of this year. An aggregate ceiling will be enforced starting next year on sales commissions, and the commissions will be payable in four-year in- or excuse me, in installments across four years next year, but then across seven years starting in 2029. As these regulations go into effect, we think that excessive competition driven by higher commissions will abate. We will also reduce our sales related costs through greater efficiency in our promotional activities and also by enforcing preemptive cost control. The following question will be presented by Jeon Sebyeong from NH Investment & Securities. Please go ahead with your question. [Non-English Content] [Non-English Content] Yes. Thank you for the opportunity to ask two questions. My name is Jeon Sebyeong. A lot of good things have already been said, so let me just add, ask as an extension regarding shareholder returns. You did mention that you will continue the gradual increase in DPS, and in the event that there is a sizable distribution from SCS or SEC, you are open to considering possible payout in installments. While we do not know the exact size, if we foresee that conceivably it can be a distribution in KRW trillions next year from Samsung Electronics, potentially you might not be able to meet the criteria to qualify for separate taxation on dividend income. Will you be mindful to satisfy those the criteria? Or will you have to wait and see the developments before determining that? When should we have more visibility into possible changes to your shareholder return policy? Second, you did mention the roadmap for deployment of excess capital. With a recent growth in the capital market, I think a lot of the financial holding companies have been making capital injections into their asset management or securities arms. How about Samsung? You are the largest shareholder for both Samsung Securities and Samsung Asset Management. Do you have any capital injection plans? [Non-English Content] Yes, this is CFO. Regarding the meeting the eligibility criteria to qualify for separate taxation on dividend income versus our commitment to continuing to deliver DPS growth. To talk about the direction for next year, I think to do that now would be too premature. Certainly we will consider both sides to decide and we will be ready to communicate with the market at an appropriate period. [Non-English Content] In terms of the timing, when you can expect more visibility on our shareholder return policy, I do apologize that I cannot provide a clear answer right away. [Non-English Content] In March of this year, at our annual general meeting of shareholders, we did provide a simplified disclosure of our Value-up Program, and we have until the AGM, in March next year, to provide our official Value-up Program. Within this legally bound timeline, we will do our best to set our policies and communicate them with the market. [Non-English Content] Regarding excess capital. First, for Samsung Asset Management, as you know, we already own 100% of equity interest. [Non-English Content] I do know that there is a lot of talk about potential additional acquisition of shares in Samsung Securities, F&M, and Samsung Card. [Non-English Content] Any decision to increase our equity interest in any one of our subsidiaries will require a comprehensive study and will strictly have to be in the interest of enhancing shareholder value and furthering corporate company growth. At this time, we do not have plans to make additional acquisition of shares in these subsidiaries. [Non-English Content] The following question will be presented by Jaewoong Won from HSBC Securities. Please go ahead with your question. [Non-English Content] [Non-English Content] Yes. Thank you for delivering strong performance despite the challenging environment. I also have two questions. One on the money move phenomena. On page 11, you do show the persistency trends for your protection type products. How about for your savings type policies? If in fact, the cancellations or the lapse is on the rise, do you have any concerns for a sizable CSM adjustment at the end of this year in the fourth quarter, due to major changes to your assumptions, that will reflect into CSM adjustment? On page 14 regarding the K-ICS sensitivity, it seems that as Samsung Electronics share prices increase, actually your sensitivity to those share prices actually is going down, potentially because your required capital is growing to by a more significant degree versus available capital. If Samsung share prices or Samsung Electronics share prices goes up to KRW 300,000, even KRW 400,000, given the concentration of market risk, potentially could that play as a negative? [Non-English Content] Yes, this is Bae In- Cheol, Head of the Actuarial Team. Let me take the first question. [Non-English Content] From two years ago, we have already been undertaking a company-wide efficiency management initiative, particularly to manage against lapse. [Non-English Content] Given the brisk activity of the stock market starting last year, it is true that we have seen the lapse rate or cancellation go up by about 1%-2%, just slightly for some products that are linked to interest rates. [Non-English Content] The lapse did increase in January for the savings type products linked to the interest rates, stabilized in February and March. When we assume that the current conditions continue until the end of this year, we don't anticipate any major CSM adjustments on account of adjustments to the cancellations. [Non-English Content] Just to give you more comfort, actually in the first quarter, we have already seen evidently that compared to smaller companies, our CSM adjustments on account of the lapse or changes to the lapse assumptions are actually smaller versus the other players. [Non-English Content] Yes, this is Lee Jiseon, Head of the RM team. Let me take your second question. [Non-English Content] In terms of share price, rising share prices of course, are associated with rise in available capital, but then at the same time, required capital also goes up. Relative to the impact of rising interest rates, the overall, the rise is less. [Non-English Content] In the first quarter, Samsung Electronics share price was KRW 160,000. [Non-English Content] In terms of sensitivity, if Samsung Electronics share price goes up by KRW 10,000, the sensitivity is 0.1 percentage points. [Non-English Content] Similar sensitivity profile, assuming current pricing of KRW 280,000. [Non-English Content] If SEC shares go up further beyond KRW 300,000, KRW 400,000, it's not that our K-ICS ratio will continue upside. At some point it will start to see incremental decrease. [Non-English Content] Actually the sensitivity is very low, going down by about 1 percentage point, for KRW 100,000 increase in share prices. [Non-English Content] The following question will be presented by Doha Kim from Hanwha Investment & Securities. Please go ahead with your question. [Non-English Content] This is not so much a question, but I would like to ask a favor. If you look at other listed insurance companies where the CFO level attends and directs the earnings conference call, they do all provide SAP-based financial statements during the earnings call. Because Samsung Life does not do so, we are not able to look at the more detailed numbers to ask questions during the earnings call. I don't think you should have any trouble preparing the SAP financials in terms of your underlying infrastructure as it was readily done during IFRS4. Could you, that is just my suggestion. [Non-English Content] Yes, this is the Head of IR. Thank you for your suggestion. We will practically look into different ways where we can provide further information, particularly numbers, in order to help you better understand our company financials. [Non-English Content] Currently, there are no participants with questions. Please press star one, star and one to give your question. [Non-English Content] Yes, thank you all for joining us. With that, we will conclude our first quarter 2026 conference call for Samsung Life. Thank you very much.