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Samsung Life Insurance Annual Report

Samsung Life Insurance Annual Report

FY2010 ( April 1, 2010 - March 31, 2 011 )

www.samsunglife.com

SAMSUNG LIFE INSURANCE Co., Ltd 150, Taepyeongno 2-ga, Jung-gu,Seoul, Korea Tel. 1588-3114

People & Love

Samsung Life values people first. For over 50 years, as a trusted partner to our customers we strive to provide the best products and services. Through continuous innovation, we are a market leader in Korea and have set a higher goal of becoming a global recognized insurance company going forward. We'll spread a message of caring as we believe insurance is founded on a deep desire to care and protect your loved one.

We spread a message of `caring' because people protect their loved ones from their deep caring and love.

People & Love

02 Vision 04 CEO's Message 06 Key Executives 08 Financial Highlights

Innovation & Value

12 Love Management 14 Virtuous Management 16 Communicative Management

Passion & Life

20 Research & Business Operations 22 Global Operations 24 Asset Management 26 Products 28 Customer Services 30 Brands

Love & Love

34 Social Contributions 36 Sports Sponsorship and Arts & Cultures

Financial Report

39 Management's Discussion and Analysis 43 Financial Statements 51 Business Overview 54 Operations Overview 59 Corporate Governance 61 Audit Reports

Vision CEO's Message Key Executives Financial Highlights

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Vision

To be Respected as the World's Premier Provider of Financial Freedom

Samsung Life has endeavored to emerge as a global leader in providing customers with secure and advanced financial insurance solutions. In consideration of the rapidly changing market environment, we are redefining business domains and intensifying core competencies that meet global standards. Simultaneously, we are doing our best to enhance business fundamentals for more efficient business management. Samsung Life has set targets on the retirement, wealthy and overseas financial markets as the main driving areas of future growth as well as practicing creative change and innovation. We will continue to make efforts to establish our status as a globally competitive insurer based on utmost products and services.

Redefine Business Domain

We are redefining business domains to offer more stable and advanced financial insurance solutions in this rapidly evolving financial environment as well as to secure sustainable growth.

Enhance Core Competencies

We are laying the foundation to take a leap toward being one of the world's premier financial service providers by intensifying differentiated core competencies, while at the same time creating greater customers and shareholder values.

Reform the Management System

We continue innovation to promote swift decisionmaking and practice rational management. We ensure stable corporate growth through the establishment of efficient management systems.

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CEO's Message

In this respect, we are making every effort to intensify management centered on customers and operating sites and enhance business management, while establishing foundations to drive our future growth. In particular, we have focused our efforts to make inroads into the burgeoning retirement market in Korea as well as overseas financial markets, in order to secure sources for growth and profitability. To systematically support these innovative measures, we have established the Samsung Life Care Research Center for research into industry-leading insurance products, followed by the Retirement Research Center in February 2011 as well as the Insurance and Financial Research Institution to promote the development of the insurance industry in April 2011. Under the firm belief that insurance is a form of caring and compassion for our loved ones, we are dedicated to sharing this belief our customers. Moreover, we will continue to fulfill our corporate social responsibilities

With an aim to grow as a global financial provider beyond Korea, we will practice creative change and innovation with a firm commitment to improving customer satisfaction.

and corporate ethics through various social contribution activities. Based on our continuous efforts to share values of compassion, a core element of insurance, we will try to become a well-respected and trusted company in Korea and beyond. Samsung Life's dream and challenge toward a global financial services provider has just started. However, we believe the journey ahead of us will not be too difficult thanks to the unsparing trust and support of our customers and shareholders. I sincerely ask you for your consistent support as we serve as a reliable and respected partner for people around the world.

To Our Valued Customers and Shareholders

Samsung Life started its journey back in 1957 in the midst of the post-Korean War financial turmoil. The nascent company practiced a management philosophy to spread the values of caring and true happiness for loved ones, thus contributing to the country and society. For the past 54 years, Samsung Life has endeavored to protect the life and assets of our customers and shareholders and spread the noble values of insurance. Although we have faced numerous daunting challenges along this path, we have resolutely overcome those hardships with tireless innovation and an unyielding spirit. Through these painstaking efforts, we have finally grown as a leading Korean life insurer as well as a trusted financial institution which has been continuously listed as one of Fortune Magazine's Global top 500 companies. The fiscal year 2010 was a difficult time for the financial industry both at home and abroad and the insurance industry was still reeling from the effects of the global financial crisis. However, Samsung Life has recorded another brilliant performance through preemptive responses and systematic management. In FY 2010, our operating revenues reached 26.17 trillion won, up 1.9 percent year-on-year and a net income that totaled 1.92 trillion won, 112.4 percent higher than the 2009 figure. Total assets stood at 146 trillion won at the end of FY 2010, up 10 percent from the previous term. In addition, our RBC solvency margin ratio, a primary barometer of financial strength, stood at 332 percent. Our customer-centered products and services, advanced IT system and effective management strategy allowed us to maintain an unrivalled status in the domestic insurance industry. On the back of customers' loyalty and compassion, we were inducted into the Korean Service Grand Prix Hall of Fame for the first time in the financial sector, ranking first for seven consecutive years in the National Customer Satisfaction Index. Moreover, FY 2010 was especially meaningful for us since we reinforced our outstanding competitiveness through a successful listing on the Korea stock exchange. Our ambition for 2011 is greater, as we have pursued the slogan `Creative change and Innovation' under the vision of emerging as a global financial service provider, expanding our capacity beyond the Korean domestic market. Given the current rapidly changing financial situation and customers' pressing needs, innovation has become an integral part for future growth.

Keun-hee Park President and Chief Executive Officer

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Key Executives

Tae-gon Moon Standing member of audit committee Audit committee

Jae-ho Shim Senior vice president Overseas business division head

Young-soo Cha Senior vice president Asset management division head

Sang-yong Lee Senior vice president Individual insurance business division head

Sang-hang Kim President Asset Management business

We will grow as a global financial institution based on an effective and responsible management system that incorporates creative change and innovation.

Jong-jung Youn Senior vice president Busan regional headquarters head

Je-hoon Yeon Senior vice president Human resources division head

Young-june Park Senior vice president Management innovation division head

Young-bin Lim Senior vice president Corporate business support division head

Sang-chul Lee Senior vice president Real estate investments department head

Woo-jung Suh Executive vice president Corporate governance division head

Sang-yong Kwak Executive vice president Corporate planning division head

See-hoon Cho Senior vice president Product strategy division head

Gwang-il Choi Senior vice president Corporate business department 1 head

Sang-mook Lee Senior vice president Research institute of insurance & finance

Young-jae Kang Senior vice president Gangbuk regional headquarters head

Jong-yun Han Executive vice president Corporate insurance business division head

Stephan Rajotte Executive vice president International business division head

Hong-joo Kwak Senior vice president Internal audit division head

Chang-woo Byun Senior vice president Marketing division head

Jeong-soo Han Senior vice president Overseas business planning

Byung-soo Choi Senior vice president IT Strategy division head

Donald Carden Senior vice president The president of siam samsung

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Financial Highlights

2010

2010

26,177,800

1.9%

146,000,000

10 %

Operating revenues

2008 25,288,600

2009 25,695,200

Total assets

2009 133,000,000 2008 121,000,000

Unit : million won

Unit : million won

2010

2010

1,924,900

112.4 %

332 %

52 %

Net Income

2009 906,100

RBC ratio

(Risk-based Capital Ratio)

2009 280% 2008 113,000

Unit : million won

2008 205%

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Innovation & Value

Samsung Life offers custom management Through Innovative management philosophy and customers values.

Love Management Virtuous Management Communicative Management

Customers are the very reason for our corporate existence Through `Love Management' Samsung Life will serve as a trusted and life-long partner that provides customers with valuable products and heartfelt services.

Samsung Life values customers as it has strived to satisfy customers' needs through high quality products and services. Through these efforts, it has been ranked first in the Life Insurance segment on Korea's National Customer Satisfaction Index for seven consecutive years. Moreover, the company has provided customers with more systematic and advanced services including our program `With Partner Service' that offers our business know-how of customer service and the online consulting service `Web & Call' service. Throughout 2011, Samsung Life will more actively pursue management centered on caring and compassion. We will serve as a reliable and life-long partner for our customers by offering a wide range of valuable products and heartfelt services. In addition, we will continue our efforts to make the world a better place for everyone. We are committed to providing a helping hand for neglected neighbors through various volunteer activities as well as creating a welcoming and pleasant living environment via our support for sports, culture and the arts. Samsung Life will spread true happiness and caring for all in the world.

Love Management

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Samsung Life pursues management practices that are pursuant to its core principles. We try

Companies faithful to undamental principles of

to secure management stability and growth by sticking to fundamental values such as integrity, sincerity and observance of laws. Under our firm belief that we should be faithful to the company's fundamentals and principles, even in the midst of the global financial crisis that started in 2009, we proclaimed virtuous management and established an ethics committee based on core action plans. Along with an intensified monitoring system and fair trade compliance program, we provide education on virtuous management to our executives and employees on a regular basis. In addition, we allow our executives and employees to spontaneously participate in our ethical management through an internal whistle blowing system and campaigns on customer information protection and incomplete sales prevention to expand virtuous management to the corporate level. Samsung Life has adopted strict rules and

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listening listening to various opinions

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identification identifying sound standards for judgment

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feedback using various feedback channels

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evaluation offering fair evaluation and compensation

doing business deserve to be respected by ustomers. Samsung Life has maintained its status as a reliable and valuable corporation through its `Virtuous anagement' for customers and society.

Virtuous Management

regulations in order to enhance its overall level of corporate transparency and reliability as a publically listed company. We will continuously pursue right-path management without being swayed by the rapidly changing insurance market environment.

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We can understand each other and develop through effective communications.

Samsung Life practices `Communicative Management` for understanding and development of its customers and services. We have promoted reasonable development based on communications with our employees, customers and society. To promote communications between headquarters and field sites sites, our executives regularly visit operating sites to reflect on changing customers' needs and management issues. Also, we listen to various opinions of our employees by regularly posting the CEO's message on the corporate intranet to facilitate more effective communications between our executives and employees. We introduced and operate a customer panel system for communications with our customers for the first time in the industry, thus maintaining diverse communications channels with society through various and systematic social contribution activities. Samsung Life will continue to diversify communications channels for more effective communications and reflect these valuable opinions to management.

Samsung Life grows through listening to various opinions of customers, society and employees and reflecting them to management.

Communicative Management

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Passion & Life

Passion for customers and their life, Samsung Life endeavors to secure customers' happiness.

Research & Business Operations Global Operations Asset Management Products Customer Services Brands

Research & Business Operations

R&D to drive insurance advancement Samsung Life established a scientific and systematic R&D system to promote advancements in insurance services in an effort to provide world-class insurance products and services. The Retirement Research Center, established in February in 2011, was designed to enhance greater public awareness on retirement and offer systematic retirement plans to customers through a variety of comprehensive retirement and financial planning schemes which are assisted by the largest force of specialized agents. As a think tank to support advanced retirement planning models, Samsung Life offers customized retirement solutions and is taking the lead creating a healthy retirement culture. The Insurance & Financial Research Institute, founded in April 2011, consists of a financial industrial team, policy research team and global strategy team. Moreover, the entire research manpower is comprised of researchers with Master's or Doctoral degrees concentrating on future-oriented research. Based on preemptive forecasts on changes in the insurance and financial environment, it will secure mid to long-term competitive edges of the company and advance the development of insurance industry. The Life Care Research Center, established in October 2010, contributes to the overall improvement of public health and quality of life through its research into the health and diseases of the public. This singular focus helps to create trends in applicable insurance products. In collaboration with various related institutions, it shares valuable information including life-cycle health enhancement programs. Samsung Life will continue its differentiated research and development efforts and take a leading role in the insurance and financial industry based on its specialized research centers. These centers include the Retirement Research Center, Insurance & Financial Research Institute and the Life Care Research Center.

assets of customers through the state-of-the-art financial planning tools and various financial products. These agents are divided into various categories by target customer and sales channels, thus ensuring the most professional and efficient financial consulting services available. The categories include: Financial Consultants (FCs) who provide financial planning to individual customers; Samsunglife Advisors (SAs), who offer integrated financial consulting services; Group Financial Consultants (GFCs) who serve corporate customers; Financial Advisors (FAs) who mainly sell variable universal insurance policies and beneficiary certificates; Special Financial Planners (SFPs) who are young university graduates in their 20s and 30s; and Total Consultants (TCs) who provide financial service telemarketing tools. Samsung Life developed and operates its own consultant education program and for the first time in Korea, obtained the much-vaunted ISO 9001 certification related to education program development and operating systems. In addition, it continuously enhances its specialty in consulting services through operating academy-industry and MBA programs. About 75 percent of the 40,000 consultants are authorized f ina ncia l c onsul t a n t s, w i th 1,56 2 ha v ing ob t aine d membership in the Million Dollar Round Table, a renowned international association of life insurance professionals.

Leveraging our methodical R&D system, we take a leading role in the insurance and financial industry. We offer best-in-class financial planning services to our customers through experienced 40,000 of financial consultant channel. Our FP center delivers scientific and comprehensive asset management services based on long-term perspectives.

Scientific and systematic Financial Planning Center Samsung Life Financial Planning Center is a Wealth Management group that offers wide-ranging scientific and systematic financial planning services including investment, taxation and real estate advice as well as consulting on relevant laws, inheritance, donations and risk management to VIP customers based on long-term perspectives. Samsung Life has operated its FP center since 2002 and provides effective comprehensive financial planning services through asset management experts and financial analysis system (SAPS), according to various customers' financial situations. Samsung Life FP Center has been selected as the `Best PB' in the life insurance category by Hankyung Business

Samsung Life consultants, experts in financial planning Samsung Life consultants, consisting of the largest force of agents in Korea (over 40,000), is made up of a group of comprehensive financial planning experts who offer consulting services for protection-type and retirement

magazine in 2010 for its differentiated competence and brilliant performance.

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Global Operations

Steady growth through localization strategy Samsung Life has realized aggressive global management through consistently exploring overseas financial markets while diversifying our revenue resources by pursuing new growth opportunities. Siam Samsung Life Insurance Company, a joint venture in Thailand (established in 1997), has maintained sound and stable management practices through realistic localization strategies by expanding the recruitments of local employees as well as developing products suitable to local situations. Samsung Air-China Life Insurance, a joint venture in China, has also diversified its sales channels and enhanced its overall product competitiveness to increase sales while expanding its sales scope by opening branches in Tianjin in March 2009 and Qingdao in July 2010. We have opened branch offices in Mumbai in India and Hanoi in Vietnam, attempting to make inroads into new overseas financial markets. Additionally, Samsung Life operates representative offices in New York, London, Tokyo and Beijing to research advanced insurance markets and systems. Through the aggressive expansion of our overseas business divisions, we will reinforce our status as a global financial service provider.

Samsung Life's Current Overseas Business 12 overseas branches in 8 countries (Insurance 2, Asset management 3, offices 7) Insurance China (2005) Title : Samsung Air China Life Insurance Co., Ltd. Local partner : Air China (5 : 5 joint venture) Sales : 63.6 billion won (2010) Thailand (1997) Local partner Saha Pathanapibul Group (37.5 percent) Siam City Bank (25 percent) Sales : 44.0 billion won (2010) Investment UK (1991) · US (1993) · Hong Kong (1996) Investment scale : 3.5 trillion won Third party consignment : 0.2 trillion won Representative offices U.S.(2), UK, Japan, China, India, Vietnam

Stable overseas asset management Samsung Life has been expanding its overseas investment portfolio as part of its strategy to sustain continuous growth. We have established subsidiaries in London in 1991 and New York in 1993 to stay tuned to local financial markets. We have accumulated investment experience in various areas including overseas bonds, equities and funds, by exchanging information with internationally renowned financial institutions. We have partially reduced our overseas investment in the aftermath of the global financial crisis, but plan to gradually expand our overseas investment in consideration of the current domestic investment market conditions and increases in our invested assets in the future. We are enhancing our risk management capacity for overseas investment including intensifying self-screening capacity and promoting the diversification of investment areas and products.

We realize stable overseas asset management based on our strong risk management capacity. Through a successful implementation of localization strategy, we solidify our presence in the global market.

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Our efficient strategic asset management portfolio in consideration of the market conditions ensures sable profits for our customers Our top-class asset management specialists offer scientific and systematic risk management

Asset Management

Effective asset management philosophy and investment strategy Samsung Life has taken a stable and value-oriented asset management approach that guarantees long-term results. We are fully aware that stable asset management is the foremost concern among our customers. To that end, we have established a clearly defined management philosophy, investment principles and guidelines. Our strategic asset allocation (SAA) method allows us to build a portfolio from a long-term perspective. Meanwhile we follow a tactical asset allocation (TAA) strategy to respond flexibly to short-term market fluctuations.

Systematic scientific risk management Samsung Life employs a phased approach to managing all potential risks throughout the asset management process. Risk management policy is first decided; risk is then managed and measures are taken to stem any potential loss. We begin by managing assets in consideration of their individual liability characteristics, managing risks preemptively and balancing risks and returns. Our approaches are both qualitative and quantitative. We have proprietary VaR measuring and stress testing instruments along with early warning and response tools through risk monitoring. In addition, our highly experienced underwriters and

Efficient asset management portfolio Samsung Life, with an AUM of approximately 146 trillion won (General account 125 trillion won, Separate account 21 trillion won), is one of the largest asset managers in Korea. We have invested these assets mainly in equities and bonds, along with various additional investment products including alternative investments and properties. In Korea, our portfolio extends to various loan products for retail and corporate borrowers. In the process, we have served as a source of capital for various industries, contributing to the nation's economic development. We began investing in other countries starting in 1996 and our overseas investments today are worth a total of 12.7 trillion won. As such, our asset management capabilities are recognized as being one of the best in Korea.

advanced credit risk management system allow us to filter out toxic assets while strengthening our capabilities to analyze the quality of new financial instruments. We will reinforce our risk management skills to ensure a stable return on our customers' valued assets.

Topnotch experts and system in asset management Samsung Life ensures effective asset management by employing the largest team (more than 480) of specialists in the domestic industry. They include PhD holders in financial engineering, graduates from the top MBA programs, Certified Public Accountants, Chartered Financial Analysts, Certified Commercial Investment Members, Financial Risk Managers and employees with experience at some of the world's top financial institutions. They are our valued, unique assets. Moreover, we have established a unified investment management system that systematically handles the transaction, status and evaluation data for all assets, providing customers with an effective range of comprehensive services.

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Products

We satisfy our customers' diverse needs with outstanding insurance plans. Our differentiated retirement products and corporate pensions, loans, funds and investment trusts contribute to creating a convenient and abundant life for customers.

Advanced insurance products Our product lines include combination life insurance, variable life insurance, whole-life insurance, health/critical illness (CI) insurance, accident insurance and annuity products. The combination life insurance product, which was developed for the first time in the insurance industry, offers various protection benefits under the umbrella of a single insurance policy, while the variable life insurance increases or reduces contractors' contributions according to the overall fund management performance. The whole-life insurance offers various selective items and benefits in accordance with customers' specific needs and the health/critical illness (CI) insurance guarantees benefits in the event of critical illness or death. Additionally, annuity products promise financial stability after retirement. In particular, "Perfect Combination Life Insurance," which we first introduced in September 2008, is a new product that combines whole-life, CI and medical indemnity into a single insurance policy. So far, more than 1.27 million of these plans have been sold to date as of the end of April 2011.

Convenient and quick Loan services We offer effective loan products to suit customers' financial convenience. All policyholders can borrow money against their policy without actually having to visit us in person. Our credit loans are available over the phone or online, eliminating the need to visit our branch offices. In addition, borrowers do not have to provide any collateral. Finally, our mortgage loans offer various options with regard to specific interest rates and terms. These include long term rates for customers who need money to purchase or lease a house through consulting services via the call center or loan consultants.

Funds and investment trusts for asset augmentation Samsung Life fund products stand clearly apart from those offered by brokerage houses or banks. We take advantage of our strengths as an insurer, applying our extensive expertise in managing a massive volume of long-term assets to our fund management business for maximum customer satisfaction. In addition, our investment trusts provide customers with the best opportunities to augment their asset portfolios. We individually design optimal asset portfolio for our customers and recommend ideal trust instruments (nondiscretionary, discretionary and money markets) to suit each individual's long-term investment goals.

Differentiated pension services for security in old age Samsung Life leads Korea's retirement insurance market with 30 years' experience in the business and offers the best corporate pension specialists in the country. In 2009, we launched the Total Solution service brand to even further strengthen our position. Total Solution is Korea's first corporate pension-related service available both online and offline. With the introduction of the Total Solution service brand, we continue to provide a wide range of services that cover individual living benefits, annuity products, management consulting and lifestyle design.

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We make customer convenience as a top priority, and listen carefully to our customers' feedback as we continue innovation for quality and rewarding services.

Customer Services

With partner service sharing CS know-how Samsung Life has set its priority on management centered on caring and compassion and tried to share customer services know-how with both customers and local communities. As part of this outreach effort, we began offering `With Partner Service,' a free customer service consulting program in 2008. As of 2010, the program has been conducted 1,822 times for 1,438 companies. The `With Partner Service' is a free training customer service program for volunteer groups, government offices and small businesses that find it hard to perform an objective evaluation for their customer service as well as systematic CS education of their employees.

Business continuity plan to secure seamless operation in crisis Samsung Life has established a Business Continuity Plan that guarantees smooth business management in the event of a crisis. Based on core business areas that should be immediately restored in emergency situations including natural disasters, terrorism, fire or occupational hazards, we established an extensive backup system, alternative areas of business as well as an emergency manpower system. By maintaining thorough preparations against emergencies, we have obtained an international certificate from the British Standards Institution for the first time in the domestic financial industry in 2008. With our unyielding belief that customer service should be seamlessly provided under any circumstances, we will continue to develop our Business Continuity Plan.

Ongoing efforts to raise customer satisfaction We carefully listen to customer feedback at all times. Our Call Center and service windows are standing by to answer customers' questions and to check on their policy status and other financial matters. Our new Customer Complaint Management System (CCMS) allows our staff to take the initiative in resolving problems and is part of our efforts to provide preventative responses that are up to global standards. Our Voice-of-the-Customer (VoC) program is another channel for customers allowing them to convey their dissatisfaction, give advice or make demands. We take their comments and feedback seriously and adapt them as much as possible into the details of our operations. We also run an online/offline customer panel as a way to collect customer suggestions and requests for improving our overall service quality. In addition, our relentless efforts to improve customer satisfaction have been recognized by our top position on Korea's leading indices for customer service.

From one-stop to insurance consulting services Samsung Life continues to develop various services to ensure customer convenience. `Web & Call System,' which allows consultants to provide customers with a full range of consulting services via the Internet, suggested a new paradigm of insurance sales. We were first to adopt mobile system in the domestic insurance industry to provide customers with optimal financial consulting services and introduced an Internet-based Insurance Service to allow customers to browse account or produce information and buy insurance policies through a one-stop process on the Internet. In addition, we ensure customer convenience by offering a specialized consulting service program in which our consultants make visits to customers in person to provide information on specific benefits and insurance policies that customers have purchased.

2010 ~2011

Ranked 1st on the National Customer Satisfaction Index (NCSI) for seven consecutive years ('04~'10) Ranked 1st on the Korean Customer Satisfaction Index (KCSI) for six years in a row ('05~'10) Ranked 1st on the Korea Standard Service Quality Index (KS-SQI) for the past eight years straight ('03~'10) Ranked 1st on Korea's Most Admired Companies for eight consecutive years ('04~'11) : ranked 10th among the 30 Most Admired All Star Companies (ranked 1st among financial institutions) Ranked 1st on the Korea Service Grand Prix for the past six years in a row ('04~'09) : Inducted in the Hall of Fame in 2010 (first in the financial sector)

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Brands

A new advertising campaign stressing values of insurance The new `People, Compassion' campaign, launched in 2011, has been well received by the public. The advertising campaign is based on the fundamental values of insurance that Samsung Life believes in, namely `Insurance is Love.' Thus, the key message promotes the basic values that life insurance provides to customers such as people, love, family and life. We have partnered up with swimming gold medalist Park Tae-hwan to appeal to a wide demographic range. Through this campaign, we try to deliver our will to establish new standards in the insurance business by actively expressing our promise to secure `compassion' for `loved ones' along with values of compassion and caring as the nature of the insurance industry. We maintain the fundamental values of insurance, keeping it in mind and acting as a trusted partner for our customers to return the caring and support we received.

Human beings are made to love each other including family and themselves. Samsung Life helps customers to protect their loved ones.

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Love & Love

Through sharing for tomorrow and increasing compassion for others, Samsung Life contributes to making the world a better place for all.

Social Contributions Sports Sponsorship and Arts & Cultures

Social Contributions

Various CSR programs Samsung Life is engaged in various CSR activities as a good global corporate citizen. To fulfill our responsibilities toward society, we established the Samsung Life Public Service Foundation in May 1982 and later on, the Samsung Life Volunteer Corps in March 1995. Also, we have contributed to raising public awareness on life insurance and spreading insurance culture through the establishment of the Life Insurance Social Contribution Fund in 2007. Our systematic CSR programs for women, the environment and individuals as well as local communities will continue to help make a better world.

Project to fund trips back home for immigrant women married to Korean men

CSR programs for women Samsung Life has continued to support women as an integral part of its corporate social contribution programs. Since 2002, we have offered seed money and business consulting services to help low-income single mothers, either divorced or widowed, start their own businesses. Our employees have even started to donate funds to a Mothers' Hope Camp, giving children plagued by poverty or illness the necessary opportunities to realize their dreams. In addition, Samsung Life promotes various activities including providing funds to trips back for immigrant women married to Korean men and establishing a multi-culture community.

CSR programs as a partner for life The various CSR programs at Samsung Life reflect elements that characterize the life of the insurance business. Currently, 23 childcare centers are operating nationwide under the Samsung Life Public Welfare Foundation, helping to support working mothers and finding solutions for issues related to early childhood development. The Samsung Medical Center offers state-of-the-art medical systems that are used to elevate the quality of medical care facilities and equipment available in Korea. In an effort to address Korea's rapidly aging society, we operate Noble County, an advanced retirement community with residential accommodations and medical care facilities, along with cultural, sports and recreational programs that ensure a comfortable life for the elderly.

Farming volunteer work for local communities

Volunteer work in local communities Samsung Life remains committed to helping Korea's rural areas across the country, thus alleviating regional disparities. We established partnerships with 110 rural areas to promote exchanges between urban and rural areas through offering a helping hand during farming seasons, the purchase of farming products as well as cultural exchanges. In addition, we established a working dog training center in 2001. These dogs have played a pivotal role in emergency rescues, drug and explosives detection, infectious disease prevention and cultural property preservation. Moreover, we have continued to buy sporting equipment and other gears for the national Paralympics team since 2000.

Continuous and systematic CSR programs help to make a better world for all. We try to fulfill our responsibilities and roles as a global citizen.

Environmental protection as a global citizen Samsung Life has endeavored to fulfill its responsibility and roles as a responsible global citizen. In an effort to preserve the environment for succeeding generations, we continue to be involved in tree planting campaigns across many regions including the World Peace Forest in Incheon. These efforts are conducted in conjunction with a planting project

Planting program of mangrove trees in Thailand

CSR programs for children and youth We have continued to help children and youth to grow up healthy and happy. In order to resolve the recent low-birth rate issue, we implemented the `Three-Year Old Village Project' which provides for total care from childbirth to nurture, along with various programs to encourage childbirth and early childhood education programs. In addition, we offer opportunities for youth to express their emotions and improve their social skills through the `Samsung Life Serotonin Drum Club Program.'

of mangrove trees in Thailand in 2010 to reduce greenhouse gas emissions.

The opening ceremony of store No.192 in the entrepreneurship support program for low-income single mothers

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Sports Sponsorship and Arts & Cultures

Art contest for youths We have been organizing an annual art contest for children and teenagers since 1981. Now in its 31st year in 2011, this is the largest contest of its kind in Korea. The aggregate number of participants exceeds 5.15 million and many up and coming artistic talents have been identified and nurtured though this inspiring event. We will ensure that the competition continues to serve as a leading promoter of art education in Korea.

The annual art competition for youth

Samsung Life Wrestling Team Samsung Life established a wrestling team back in 1983 as one of several programs for supporting amateur sports in Korea. Through hard work, the wrestling team has significantly contributed to strengthening Korea's stature in international wrestling competitions. We have continued with our sponsorship of this lesser-known spor t and many members of our team have represented Korea in international competitions. Team members have earned a total of 11 medals (4 Gold, 6 Silver and 1 Bronze) in the Olympics since the 1988 Seoul Summer Olympics Games.

Ji-hyeon Jeong, Samsung Life Wrestling Team

HOAM Art Hall HOAM Art Hall, which marks its 26th anniversary in 2010, has helped to develop culture and nurture the arts in Korea by showcasing both domestic and foreign quality performances. In 2002, Korea's cultural service specialist Credia was entrusted with managing the center. The Hall has re-established itself as an arts center specialized in classical music and dance performances, becoming one of the most successful cultural venues in the country. The HOAM Art Hall remains committed to leading Korea's performing arts segment by taking on creative challenges while preserving its unique tradition and dignified character.

Samsung Life Women's Basketball Team Bichumi, the women's basketball team sponsored by Samsung Life, was established in 1977 and remained a dominant force in the game, winning eight championships at the Korea Basketball Festival (Amateur League) and five more in the Professional Women's Basketball League. Their superb playing skills have earned them great popularity among local basketball fans. Many team members have also played on the Korea National Women's Basketball Team, which earned a silver medal during the 1984 LA Summer Olympics, reached the semifinals at the 2000 Sydney Summer Olympics and the semifinals at the 2002 International Women's Basketball Championship Games.

Plateau The Rodin Gallery, which opened in 1999 and remains increasingly popular as a place where the public can appreciate the quintessence of modern art, reopened under the new title of "Plateau" in May 2011. Plateau will become a cherished artistic venue for the public through various cultural and artistic events and performances.

Plateau, a cultural and resting space for the public

Samsung Life Table Tennis Team The Men's and Women's Table Tennis Teams sponsored by Samsung Life have helped to make Korea internationally known in this sport. The teams were created in 1978 and Samsung Life began managing them in 1999. They have produced many world-class players, winning a Gold in the Men's Singles event and a Silver in the Women's Doubles event at the 2004 Athens Summer Olympics. Going

Bichumi Women's Awards The Bichumi Women's Awards, established in 2001, recognize those who have contributed to expanding women's social roles and to building women-friendly practices in Korean society. They seek out next-generation female leaders and work toward empowering them. Awards are given to women in the workforce in the following four categories: "Sun Awards," for contributions in improving the social status of women and in expanding women's rights; "Moon Awards," for outstanding achievements in the cultural, journalistic and social service fields; "Star Awards," for outcomes in the educational and R&D sectors; and Special Awards.

Se-hyeok Ju, Samsung Life Table Tennis Team

Various cultures and elegant arts create a pleasant atmosphere and enrich our lives. We share the spirit of hope through sports participation.

forward, we remain committed to developing Korean table tennis and cultivating excellent players at the professional

Jeong-eun Park, Samsung Life Women's Basket Ball Team

level.

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Financial Report

Management's Discussion and Analysis

39 Overview of Financial Results

Management's Discussion and Analysis

Overview of Financial Results

. Largest Net Profit, Strong Growth in Assets, Capital, and EV

FY2010 Premium Income (excluding Corporate Pension) 18,787 3,526 1,925 146,354 118,656 15,390 332% 21,325 1,021 29.0% FY2009 17,913 3,659 906 133,045 107,229 12,133 280% 17,599 1,074 29.2%

Unit : KRW billions

Financial Statements

43 Balance Sheet 47 Income Statement 50 Statements of Appropriations of Retained Earnings

YoY 4.9% ­ 3.6% 112.4% 10.0% 10.7% 26.8% 52%p 21.2% ­ 5.0% ­ 0.2%p

Business Overview

51 Business Developments 52 Corporate Developments

I/S Summary

APE Net Profit Total Assets

B/S Summary

Invested Assets * Shareholders' Equity RBC Ratio Embedded Value

Operations Overview

54 Operating Performance Review 57 Operation Results and Financial Condition of the Recent Three Years 58 Mergers and Acquisitions 58 Challenges

EV Summary

Value of New Business New Business Margin

* General Account Assets only. Excludes Separate Account Assets (21.5 trn) and Unamortized Deferred Acquisition Expense (3.8 trn).

Corporate Governance

59 Major Shareholders 59 Board of Directors and Audit Committee

Samsung Life's total premium income for 2010, excluding corporate pension and retirement insurance, reached 18 trillion and 787 billion Won, which is a 4.9% increase from 2009. Including corporate pension and retirement insurance, the figure is 21 trillion 573 billion won. Our net income grew 112% this year to a record 1 trillion 925 billion won. Our total assets increased 10% and our shareholders' equity by 27% to end the year at 146 trillion 354 billion and 15 trillion 390 billion won respectively. Our RBC ratio, which gauges the insurer's financial strength, also jumped by 52 percentage points to end the year at 332%. Meanwhile our embedded value at the end of 2010 increased by 21% over the year to record 21 trillion 325 billion won.

Audit Reports

60 Audit Committee's Audit Report 61 Report of Independent Auditors

38

39

. 4Q APE, Up 23% Over 1~3Q Average

. Continued Improvement in Expense and Claims Management 85.3%

3,526

15.3%

Savings

833

Protection

Unit : KRW billions FY2009 FY2010

Unit : KRW billions FY10 1Q~3Q(Avg.) FY10 4Q(Avg.) FY2009 FY2010 FY2009 FY2010

Our 2010 APE was 3.6% lower than our 2009 APE at 3 trillion 526 billion won. This drop is largely due to a high base effect, stemming from an exceptional boost to our 2009 APE booked just before the October 2009 regulatory standardization of indemnity health insurance products, and the January 2010 change to the experience life table. In addition, our companywide campaigns to improve policy persistency and eradicate mis-selling practices during the 2nd and 3rd quarters also temporarily affected our new business sales. That said, as you can see on the right side, our 4th quarter APE of 1 trillion 27 billion won is 23% higher than the average APE for the first three quarters of this year. Breaking down the quarterly APEs by product, you can see that our growth was well-balanced and achieved growth across all our product lines, namely Protection, Annuity and Savings. Such a rebound in our APE from January is a result of our new growth strategy and a new field oriented management focus. We are confident that our sales force's strong rebound in generating new business will continue going forward.

The improving profitability of the company is also visible in our expense and loss ratios. Our operating expense ratio decreased by 0.1 percentage point to 15.2% this year, when excluding one-off organizational restructuring expenses. Our loss ratio is also stable, having decreased by 1 percentage point to record 84.3% for the entire year. Both of those figures reflect the company's tight cost discipline and claims management efforts. We will continue to improve the company's profitability in both areas going forward.

. Net Profit Up 112% due to Stable Insurance Profit and One-offs

. Continued Persistency Improvement through Emphasis on Sales Efficiency

Annual Persistency Rate

13 th 25 th

1,925

ROE Operating ROE

23.2%

Net Profit

ROE

15.2%

Annuity

1,027

FY10 Persistency Rate by Quarter

13th 25 th

84.3%

3,659

APE

4Q APE Over 1~3Q Average

Operating Expense Ratio

Loss Ratio

15.3%

82.4% 81.3% 81.4% 81.9%

14.0%

81.8%

906

9.3%

77.8% 62.5% 60.8% 60.8%

FY2010 1Q10

61.2%

2Q10

63.4%

64.8%

Unit : KRW billions FY2009 FY2010 FY2009 FY2010 FY2009 3Q10 4Q10

Our net profit more than doubled this year to 1 trillion 925 billion won. The main contributing factors are number one, the recovery of our Seoul Guarantee ABS loan loss provisions, and number two, the gain on disposal of beneficiary certificates realized ahead of the introduction of IFRS Phase I, which add up to approximately 900 billion won in one-off profits for the year. However, I would also like to note that even without these one-off items, our net profit for the year is 13% higher than last year. This fulfills the promise we made at our IPO to deliver 10% earnings growth every year. As a result of this performance, our stated ROE jumped from 9% to 14% this year, and our operating ROE, which adjusts for our unrealized gains on affiliate holdings, jumped 8 percentage points to record 23%.

Our persistency rate for the fiscal year was 81.8% and 62.5% for the 13th month and 25th month respectively. That translates to a 4 percentage point and 1.7 percentage point improvement year on year. Breaking down those improvements quarterly, you can see there was a steady upward trend over the quarters. The standalone 4th quarter persistency is the highest at 82.4% and 64.8% respectively. Such improvements in persistencies is a direct result of the company's efforts to instill sales practices focused on achieving efficiency while pursuing new business growth. Because of such efforts, we expect further persistency improvement going forward.

40

41

. Continued Growth in Invested Assets & Capital Position

Financial Statement

332% 280%

Total Assets & Invested Assets

RBC ratio

146

Invested Assets

133

Total Assets

Balance Sheets

Samsung Life Insurance

FY 2010 : The year ended March 31, 2011 FY 2009 : The year ended March 31, 2010 Unit : KRW

107

119

Account Assets . Cash and deposits

Unit : KRW billion FY2009 FY2010 FY2009 FY2010

FY2010

FY2009

4,466,756,254,342 933,996,509,519 226,295,200 5,351,887,421 193,094,726,668 7,863,110,940 257,979,000,000 469,481,489,290 3,532,759,744,823 3,511,809,600,000 20,045,555,371 904,589,452 84,790,273,347,545 706,611,367,813 101,252,155,600 209,595,993,900 50,314,012,100 94,395,111,080 11,939,027,433 239,115,067,700 80,909,444,533,295 13,453,414,164,505 27,041,575,364,745 20,284,043,356,496 1,883,952,935,338 3,016,643,847,358 2,698,512,937,851 11,482,278,079,732 21,341,331,061,257 15,644,356,211,606 1,922,394,553,288 2,735,266,572,494 3,407,862,661,460 92,949,595,800 51,622,642,800 203,554,459,823 30,887,802,000 1,618,780,338,301 421,729,919,208 4,842,573,266 272,810,319 4,330,041,065 216,620,561,413 8,936,410,325 825,670,505,056 443,558,856,989 -

3,544,742,015,942 1,499,389,185,167

1. Cash and deposits Cash Checking accounts

Total assets grew 10% to 146 trillion won at the year end while our investment assets grew 11% to 119 trillion won. In particular, our total asset growth rate grew 8.2% per year, not including gains on equity valuation. At this rate, our total assets will reach 200 trillion won by the year 2015. As for our RBC ratio, which completely replaces the Solvency I regime starting from FY2011, we recorded 332% at the year end, jumping 52% percentage points year on year. This is because our risk amount or required capital increased by only 3% to 6 trillion 663 billion won while our available capital grew by 22% to 22 trillion 116 billion won due to increase in net profit which flowed into our retained earnings.

Savings accounts Overseas savings accounts Term deposits Other bank deposits Other deposits 2. Deposits Term deposits Other bank deposits Deposits in future margin accounts Other deposits

2,045,352,830,775

. Continued Asset Liability Matching Strategy; Improved Investment Yield

. Securities 1. Trading Securities

74,086,845,239,422 379,014,500,423

Investment Portfolio Composition

Bonds 56% Loans 20% Stocks 13% Investment Properties 4% Beneficiary Certificates 3% Cash and Deposits 4%

Investment Yield

6.4% 7.4%

5.5% 6.2%

Investment Yield Adjusted Investment Yield

Government and public bonds Special bonds Financial bonds Corporate bonds Income securities International securities Other securities

FY2009

FY2010

2. Available-for-sale securities Equities

69,930,601,740,977

As with other years, we continued our steadfast adherence to our asset liability matching investment strategy. In doing this, we saw the proportion of bonds growing by 3 percentage points to make up 56% of our investment assets. Together with our loan book, the total share of interest bearing assets as a percentage of total investment assets is over 80%. Meanwhile, our investment yield increased by 90 basis points to 6.4%, due to the sale of our privately placed beneficiary certificates ahead of the implementation of IFRS Phase I from April 1st, 2011. The sale also helped our adjusted investment yield, which adjusts for unrealized valuation gains on our AFS securities, to increase by 120 basis points to 7.4%.

Investment in other companies Government and public bonds Special bonds Financial bonds Corporate bonds Income securities

42

43

Unit : KRW

Unit : KRW

Account International securities Other securities 3. Held-to-maturity securities Government and public bonds Special bonds 4. Equity-method investment securities Equities Investment in affiliates Non-listed international equities Other securities . Loans (Reserves for doubtful accounts) (Additional income in deferred loans) 1. Call loans 2. Policy loans 3. Loans secured by securities 4. Loans secured by real estate 5. Unsecured loans 6. Loans secured by third party guarantee 7. Other loans . Investment Properties 1. Land 2. Buildings (Accumulated depreciation) 3. Other structures (Accumulated depreciation) 4. Assets under construction . Tangible assets 1. Land 2. Buildings (Accumulated depreciation) 3. Structures (Accumulated depreciation) 4. Assets under construction 5. Vehicles and transportation equipment (Accumulated depreciation) 6. Tools and equipment

FY2010 12,296,012,129,916 235,289,797,086 1,228,480,500,374 1,088,482,675,928 139,997,824,446 1,945,736,946,063 1,762,340,470,056 57,925,034,490 102,849,396,576 22,622,044,941 24,200,854,920,562 (256,034,593,619) 5,816,364,090 13,720,000,000 12,503,049,249,880 20,179,000,000 7,371,377,965,506 3,803,474,861,567 88,243,716,292 651,028,356,846 719,899,664,658 431,155,437,638 322,442,636,687 (37,159,492,459) 940,924,690 (804,549,924) 3,324,708,026 4,541,708,645,641 1,625,148,146,963 3,533,741,213,557 2,705,419,822,210 (828,321,391,347) 47,167,077,222 (39,256,976,250) 139,670,931,409 6,596,135,770 (3,264,474,742) 386,289,301,157 51,364,801,162 3,331,661,028 7,910,100,972 136,374,766 285,283,144,228

FY2009 12,512,666,001,950 884,446,599,190 2,261,192,703,611 2,061,113,484,633 200,079,218,978 1,516,036,294,411 1,350,458,811,800 39,626,364,901 98,655,664,516 27,295,453,194 24,530,227,455,000 (708,116,775,655) 1,629,536,732 26,604,000,000 12,020,428,123,888 20,000,000,000 7,941,726,462,354 3,981,700,728,234 84,520,189,725 1,161,735,189,722 725,924,183,331 435,501,737,015 319,535,204,683 (29,936,957,931) 1,236,494,590 (1,136,526,377) 724,231,351 4,397,673,296,098 1,556,302,717,769 3,396,363,180,451 (762,425,824,280) 48,156,503,054 (38,998,861,562) 141,391,162,412 5,130,966,264 (1,947,654,488) 393,431,884,577 45,144,595,981 3,183,311,776 9,157,641,492 2,633,937,356,171 99,968,213 289,598,246,752

Account (Accumulated depreciation) 7. Other tangible assets . Other assets 1. Insurance receivables Reserves for doubtful accounts 2. Other receivables Reserves for doubtful accounts 3. Leasehold and other deposits 4. Accrued income Reserves for doubtful accounts 5. Prepaid expenses 6. Prepaid income taxes 7. Advanced payments 8. Deferred acquisition cost 9. Financial derivatives assets 10. Intangible assets Development cost Software Other intangible assets 11. Other assets . Special account assets Total assets

FY2010 (334,924,499,995) 8,863,181,897 6,167,174,691,027 53,208,013,263 (84,801,602) 130,882,608,729 (46,515,426,722) 179,755,827,986 1,435,310,160,556 (1,495,433,302) 13,584,699,011 1,433,814,727,254 84,367,182,007 53,123,211,661

FY2009 (348,287,288,596) 8,556,510,497 6,223,279,874,714 57,463,748,152 (52,016,157) 65,555,918,249 (7,612,213,491) 170,918,730,205 1,548,142,290,756 (40,308,749,554) 16,684,697,129 17,858,445,588 1,521,483,061 1,870,973,592 3,907,108,534,897 373,724,628,807 86,415,886,541 60,647,266,222 23,447,429,326 2,321,190,993 25,450,000,000 25,509,000,000 19,536,380,885,879 133,045,072,950,386 1,507,833,541,202 57,943,704,758 57,411,731,995

3,849,666,862,579 420,347,977,044 105,542,720,424 75,860,071,637 27,754,564,843 1,928,083,944

21,466,951,335,493 146,353,618,859,268

Liabilities and shareholders' equity . Policy reserves (Reserve adjustment account for reinsurance ceded) 1. Premium reserves 2. Unearned premium reserves 3. Reserves for outstanding claims Guaranteed minimum accumulation benefits Guaranteed minimum death benefits Others 4. Reserves for benefit payments 5. Reserves for participating policyholder dividends Interest rate difference guarantee reserves Mortality gains reserve Interest gains reserve 215,917,680,811 480,689,954,270 440,512,447,059 137,011,136,061 103,421,169,740 332,041,200,772 2,190,318,714,782 1,419,567,568,775 230,914,121,097 484,045,430,875 329,369,723,114 99,133,436,390,357 (13,412,945,946) 94,794,270,031,756 17,300,821,105 572,473,506,573 92,172,414,126 17,096,226,303 221,975,163,008 2,186,938,476,677 1,335,451,108,499 92,024,917,919,895 (14,434,527,253) 88,118,767,795,089 21,598,158,216 331,243,803,437

44

45

Unit : KRW

Unit : KRW

Account Expense gains reserve Long-term duration dividend reserves Reserves for asset revaluation 6. Excess participating policyholder dividend reserves 7. Reserves for assumed reinsurance premium . Policyholders' equity adjustment 1. Reserves for policyholder dividend stabilization 2. Fund for public projects 3. Gains (losses) on valuation of available-for-sale securities 4. Gains (losses) on valuation of held-to-maturity securities 5. Gains (losses) on valuation of equity-method investment . Other liabilities 1. Unpaid claims 2. Other accounts payable 3. Accrued expenses 4. Accrued income taxes 5. Advance receipt 6. Unearned revenue 7. Withholdings 8. Accrued VAT 9. Unearned insurance premium 10. Leasehold deposits received 11. Reserves for severance benefits (National Pension Fund Payment) (Corporate pension plan asset) 12. Deferred income tax credits 13. Financial derivatives liabilities 14. Other trust accounts payable 15. Other liabilities . Separate account liabilities Total liabilities

FY2010 273,419,679,491 8,737,801,405 290,005,739 146,559,763,161 6,358,930,151 5,213,858,993,823 113,824,607,586 44,000,060,898 4,973,127,015,504 1,731,988,326 81,175,321,509 4,972,055,704,410 9,561,617,396 55,820,255,663 468,932,467,216 146,709,613,670 61,880,800 1,403,201,152 32,631,031,484

FY2009 280,626,753,361 10,169,626,067 325,453,985 38,501,692,780 6,851,412,450 4,739,854,792,927 113,824,607,586 44,000,060,898 4,533,084,906,397 2,304,858,186 46,640,359,860 4,510,073,140,217 12,717,271,985 97,014,254,436 379,097,935,906

Account 1. Other capital adjustment . Accumulated other comprehensive income 1. Gains (losses) on valuation of available-for-sale securities 2. Gains (losses) on valuation of held-to-maturity securities 3. Gains (losses) on valuation of equity-method investment 4. Gains (losses) on valuation of derivatives 5. Separate account capital adjustment . Retained earnings 1. Legal reserves 2. Other legal reserves Reserves for business improvement 3. Unappropriated retained earnings (Net income) Total shareholders' equity Total liabilities and shareholders' equity

FY2010 13,493,452,365 7,461,164,091,242 8,203,393,094,668 2,861,814,883 135,884,217,436 (908,290,985,249) 27,315,949,504 7,809,191,450,803 50,000,000,000 2,327,741,074 2,327,741,074 7,756,863,709,729 (1,924,853,105,490) 15,389,980,423,488 146,353,618,859,268

FY2009 0 5,948,767,137,032 7,041,126,770,664 3,599,114,252 74,648,216,540 (1,193,949,259,896) 23,342,295,472 6,077,921,906,833 50,000,000,000 2,327,741,074 2,327,741,074 6,025,594,165,759 (906,095,135,663) 12,132,820,472,943 133,045,072,950,386

596,984,100 431,286,484 31,798,891,779

Samsung Life Insurance

Income Statements

FY 2010 April 1 ­ March 31, 2011 FY 2009 April 1 ­ March 31, 2010 Unit : KRW

172,735,531,403 456,715,909,323 250,222,339,000 (1,409,089,238) (192,602,495,440) 2,337,803,839,333 1,140,828,843,314 3,336,856,853 89,303,902,481 21,644,287,347,190 130,963,638,435,780 56,210,754,322 230,206,920,310 (1,663,537,538) (183,165,991,924)

93,275,155,168 443,256,912,991 45,377,390,848

Account Operating revenue . 1. Premium income Individual premium Group premium

FY2010 26,177,817,021,593 14,589,412,645,073 14,119,956,851,444 469,455,793,629 261,260,142,890 13,938,157,498 201,237,135,689 46,084,849,703 5,069,741,032,484 138,367,580,265 13,357,563,583 2,978,159,697,875 109,274,487,896 1,811,354,683,741 286,398,257 18,940,620,867

FY2009 25,695,232,613,808 14,514,661,423,051 14,024,401,808,069 490,259,614,982 259,984,545,528 16,385,821,362 198,826,267,499 44,772,456,667 4,929,102,366,246 161,894,927,761 9,366,126,805 2,677,061,941,202 156,916,633,191 1,903,369,103,714 799,826,871 19,693,806,702

1,768,382,853,584 1,539,917,967,556 607,522,433 97,598,712,947 19,637,406,624,404 120,912,252,477,443

2. Reinsurance income Assumed reinsurance premium Ceded reinsurance claims recovered Ceded Reinsurance Experience Refund 3. Interest income Interest on bank deposits Interest on trading securities

. Capital stock 1. Common stocks . Capital surplus 1. Asset revaluation reserves . Capital adjustment

100,000,000,000 100,000,000,000 6,131,429,078 6,131,429,078 13,493,452,365

100,000,000,000 100,000,000,000 6,131,429,078 6,131,429,078 0

Interest on available-for-sale securities Interest on held-to-maturity securities Interest on loans Interest on other deposits Other interest income

46

47

Unit : KRW

Unit : KRW

Account 4. Gains on securities trading Gains on valuation of trading securities Gains on disposition of trading securities Gains on disposition of available-for-sale securities Restoration of available-for-sale securities 5. Gains on valuation and disposition of loans Transfer from allowance for credit losses 6. Gains on foreign currency trading Gains on foreign currency translation Gains on foreign currency transaction 7. Commission income 8. Dividend income 9. Rental income 10. Separate account commission received 11. Separate account income 12. Trust account income 13. Other operating income Gains on disposition of derivatives Gains on valuation of derivatives Other operating income . Operating expenses 1. Increase in policy reserves 2. Claim paid Benefit payments Refund Dividend expenses 3. Reinsurance expenses Ceded reinsurance premium Assumed reinsurance claims Assumed reinsurance experience refund 4. Operating expenses (Deferred acquisition expenses) Acquisition expenses Administration expenses 5. Amortization of deferred acquisition cost 6. Property administrative expenses 7. Interest expenses

FY2010 1,092,471,480,326 435,468,980 15,196,658,953 1,076,839,352,393

FY2009 353,266,981,149 5,385,352,659 9,875,528,123 293,168,174,740 44,837,925,627 464,358,781,054 9,279,468,842 9,279,468,842 154,125,352,053 238,226,524,186 97,697 238,226,426,489 50,451,892,676 191,680,695,533 47,608,594,860 160,560,916,989 211,273,492,446 541,597,967,544 3,759,799,223,706 426,875,187 669,444,234,074 414,662,122,979 225,124,804,197 29,657,306,898

Account 8. Gains (losses) in securities trading Losses on valuation of trading securities Losses on disposition of trading securities Losses on disposition of available-for-sale securities Impairment loss on available-for-sale securities 9. Losses on valuation and disposition of loans Bad debt expenses Losses on sale of loans 10. Losses on foreign currency trading Losses on foreign currency translation Losses on foreign currency transaction 11. Amortization expenses of intangible assets 12. Discount expenses 13. Separate account expense 14. Amortization expenses of real estate 15. Other operating expenses Losses on disposition of derivatives Losses on valuation of derivatives Other bad debt expenses Other operating expenses

FY2010 51,069,550,502 853,487,987 2,550,529,961 34,670,502,956 12,995,029,598 520,749,528

FY2009 209,579,406,821 240,762,856 953,306,869 166,565,207,532 41,820,129,564

464,358,781,054

520,749,528 54,736,484,581 11,336,969,928 43,399,514,653 33,474,953,071 3,100,980,644 3,179,885,849,390 52,572,138,197 260,235,687,795 193,870,709,934 12,586,364,503 555,054,749 53,223,558,609 1,947,198,409,240 775,557,702,084 322,270,249,946 340,273,570 1,324,597,568 8,390,790,304 443,231,790,696 113,115,130,005 9,216,930,672 346,455,911,992 38,821,412,044 718,841,461 57,806,591,808 848,748,759,940 430,576,583,336 236,264,225,515 82,334,903,270 67,084,575,325 44,892,879,226 110,407,375,895 6,542,736,467 4,969,617,183 13,947,940,572 4,265,704,634 76,604,985,083 23,027,509,616 2,609,640,981,319 684,787,875,829 1,924,853,105,490 19,492,398,471 32,379,417,038 33,075,266,164 1,168,917,967,381 262,822,831,718 906,095,135,663 118,821,473,393 254,237,447,649 18,855,064,605 1,151,422,124 3,759,799,223,706 54,951,763,398 443,802,757,305 373,058,921,042

2,524,365,894 151,600,986,159

255,064,717,746 633,214,740,452 3,179,885,849,390 1,191,169,675 234,958,522,241 95,245,897,537 79,486,617,805 60,226,006,899 24,230,618,612,353 7,009,440,905,400 9,505,249,576,570 1,655,022,315,195 7,736,204,826,349 114,022,435,026 283,057,288,015 269,763,561,556 10,675,320,568 2,618,405,891 1,531,797,214,422 (1,799,029,735,360) 1,807,685,076,565 1,523,141,873,217 1,856,471,407,678 394,682,406,775 14,323,419,785 (1,890,722,523,388) 1,930,792,004,656 1,299,440,604,739 269,084,278,753 7,775,758,318 3,853,201,009 1,319,641,431,025 10,136,392,659,835 129,780,807,417

24,846,483,853,868 4,485,012,224,692 11,585,814,898,277

. Operating income . Non-operating income 1. Gains on valuation of equity method 2. Gains on disposition of equity-method investments 3. Gains on disposition of investment properties 4. Gains on disposition of tangible assets

280,713,238,080

5. Miscellaneous non-operating income . Non-operating expenses 1. Losses on valuation of equity method 2. Losses on disposition of equity-method investments

1,339,510,086,007

3. Losses on disposition of investment properties 4. Losses on disposition of tangible assets 5. Donations 6. Miscellaneous losses

1,903,278,320,419 377,481,447,572 13,475,079,820

. Net income before income taxes . Income taxes expenses . Net income

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49

Statements of Appropriations of Retained Earnings

Samsung Life Insurance

Expected date of appropriation in FY 2010 June 3 Settlement date of appropriation in FY 2009 June 1 Unit : KRW

Business Overview

Business Developments

Throughout FY 2010, Samsung Life has aggressively pursued three main corporate strategies such as securing solid sources for profitability over the mid-to long-term, building leadership in the market and reinforcing intangible competitiveness through corporate culture innovation. These three goals have been pursued under management's direction to secure profitability and growth for maximum corporate values.

Account Retained earnings before appropriations . 1. Unappropriated retained earnings carried forward from prior years 2. Cumulative Effect of the Equity Method 3. Net income . Appropriations of retained earnings 1. Dividends Cash dividends (Dividend rate as of Par Value) . Unappropriated retained earnings carried over to subsequent year

FY2010 7,756,863,709,729 5,800,594,165,759 31,416,438,480 1,924,853,105,490 400,000,000,000

FY2009 6,025,594,165,759 5,119,499,030,096 0 906,095,135,663 225,000,000,000

To that end, we have established a next-generation system to support a ubiquitous computing-based operating environment to secure differentiated operating competitiveness and introduced an advanced management system for customers and products. In addition, we have endeavored to make qualitative improvements through enhancing persistency ratio as well as simultaneously

400,000,000,000 (400%) 7,356,863,709,729

225,000,000,000 (225%) 5,800,594,165,759

improving our corporate competencies through optimizing work process. Moreover, we have secured an unrivalled competitive edge in human resources by recruiting outstanding new workers as the basis of our growth engine while reinforcing our core manpower resources. As a result, we achieved operating revenues of 26.17 trillion won and a net income of 1.92 trillion won. Our total assets amounted to 146.35 trillion won at the end of FY 2010. Moreover, we still held the highest market share in terms of overall protection, annuity and retirement pension insurance plans. Based on accumulated risk management skills and profitability, we are making full-fledged efforts to secure the innovation of our business structure, improve sound profitability as well as new growth engines in order to sustain continuous growth and secure additional sources of profits. We have made efforts to develop various new products to offer customers a wide range of choices and diversified insurance channels by actively using our advantageous exclusive sales channels as well as general agents and bancassurance schemes. We will establish the largest retirement research center in order to fully prepare for the retirement market which is expected to lead to steady growth stemming from Korea's rapidly aging society. In addition, we will maintain our solid and sound growth momentum by strengthening our efforts to make inroads into wealthier markets. In addition, the establishment of a `comprehensive marketing team' under the direct control of the CEO will allow us to realize the utmost in customer satisfaction management. Our efforts to diversify revenue sources are also accelerating to secure a long-term growth engine. As part of this attempt, we have expanded our existing overseas business department to the overseas business division. Other changes include more aggressively expanding our overseas business through thorough localization efforts in China and Thailand. Samsung Life has reinforced its status as the largest domestic life insurer as it successfully went public on the Korean exchange on May 12, 2010. Without being satisfied with the success that we have achieved, we will make every effort to practice the values of life insurance, enhancing our corporate values as our top management priority which will help us emerge as a global insurance services provider that is trusted and loved by our customers and shareholders throughout the world.

50

51

Corporate Developments

Purposes of the Company .

1. Insurance business pursuant to the Insurance Business Act 2. Asset management business pursuant to the Insurance Business Act or other relevant laws 3. Other businesses pursuant to the Insurance Business Act or other relevant laws 4. Operation of research institutions required to boost the survey and research functions of the businesses specified above 5. Other businesses approved by the Financial Services Commission

. Shares

1. Types and Numbers of Shares Issued

Type Registered common shares The volume of stocks 200,000,000 Amount 100,000,000,000 Proportion (percent) 100%

Unit: KRW

Remark -

2. Changes in Capital Stock

Date '63. 1. 28 '71. 4. 26 Type Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares Registered common shares The volume of stocks 50,000 300,000 600,000 1,000,000 4,000,000 (600,000) 600,000 3,600,000 13,920,000 1,280,000 180,000,000 3,000,000,000 18,000,000,000 69,600,000,000 6,400,000,000 Change in the Shareholders' Equity 25,000,000 150,000,000 300,000,000 500,000,000 2,000,000,000 Total Shareholders' Equity 50,000,000 200,000,000 500,000,000 1,000,000,000 3,000,000,000 3,000,000,000 6,000,000,000 24,000,000,000 93,600,000,000 100,000,000,000 100,000,000,000 Detail

Unit: KRW

. Important Business Issues

See the Business Developments Section

Capitalization of revaluation reserves Capital increase with consideration Capital increase with consideration Capital increase with consideration Capitalization of revaluation reserves Stock consolidation Capital increase with consideration Capitalization of revaluation reserves Capitalization of revaluation reserves Capital increase with consideration Stock split

. Regional Centers and Branch Offices

Classification Regional Centers Branch Offices Total Seoul 25 228 253 Busan 8 66 74 Daegu 7 48 55 Incheon 5 39 44 Gwangju 5 30 35 Daejeon 5 24 29 Ulsan 2 20 22 Gyeonggi 15 146 161

'77. 9. 23 '79. 9. 17 '83. 12. 30 '86. 12. 14 '88. 9. 24 '90. 12. 11 '90. 12. 26 Jeju 1 12 13 Total 93 827 920 '99. 9. 15 '10. 2. 22

Gangwon 2 22 24

North South Chungcheong Chungcheong 2 26 28 2 28 30

North Jeolla 3 29 32

South Jeolla 3 29 32

North Gyeongsang 3 33 36

South Gyengsang 5 47 52

* The Head Office is classified as one of the regional centers in Seoul

. Shareholders' Meetings

The 54th Annual Shareholders' Meeting Time : Tuesday, June 1, 2010 at 9:00 a.m.

. Sales Agencies

Classification Regional Centers Branch Offices Total Seoul 926 575 1,501 Busan 45 77 122 Daegu 26 85 111 Incheon 25 46 71 Gwangju 11 25 36 Daejeon 0 80 80 Ulsan 0 19 19 Gyeonggi 0 189 189

Venue : International Conference Hall, 1st floor of Samsung Life bldg. 150 Taepyeongno-2-ga, Jung-gu, Seoul Agenda : Report on audit and operation results, the appointment of an independent auditor and information on transactions with largest shareholders Item voted on Item 1 : FY 2009 (April 1, 2009 ­ March 31, 2010) Balance Sheet, Income Statement and Statement of Appropriation of Retained Earnings Item 2 : Partial amendment of the Articles of Association Item 3 : Election of directors Item 4 : Election of audit committee members Item 4-1 : Election of audit committee members who are not outside directors Item 4-2 : Election of audit members who are outside directors Item 5 : Approval on directors' pay limits

Gangwon 1 24 25

North South Chungcheong Chungcheong 0 46 46 19 45 64

North Jeolla 12 24 36

South Jeolla 4 18 22

North Gyeongsang 0 40 40

South Gyengsang 0 44 44

Jeju 0 6 6

Total 1,069 1,343 2,412

52

53

Operations Overview

Operating Performance Review

Insurance Contracts and Workforce .

1. Insurance Contracts

Fiscal Year Classification 2010 (April 1, 2010 ~ March 31, 2011) Individual Group New Contracts Retirement Total Individual Group Policies in force Retirement Total 7,757,428 518,206,711 8,642,895 499,934,993 ­ 885,468 18,271,717 922,738 76,883,118 485,985,698 24,463,585 1,518,450 79,509,727 468,298,936 22,993,162 ­ 595,712 ­ 2,626,609 17,686,762 1,470,423 67,046,816 8,913,564 2009 (April 1, 2009 ~ March 31, 2010) 69,634,343 8,356,934 ­ 2,587,527 556,630 Change

. Assets

Fiscal Year Classification 2010 (As of Mar. 31, 2011) Cash and deposits Securities Loans Real estate Tangible assets Other assets Special account assets Total assets 4,466,756 84,790,273 24,200,855 719,900 4,541,709 6,167,175 21,466,951 146,353,619 2009 (As of Mar. 31, 2010) 3,544,742 74,086,845 24,530,227 725,924 4,397,673 6,223,281 19,536,381 133,045,073 Amount 922,014 10,703,428 ­ 329,372 ­ 6,024 144,036 ­ 56,106 1,930,570 13,308,546

Unit : KRW in millions

Change Proportion (percent) 26,0 14.4 ­1.3 ­ 0.8 3.3 ­ 0.9 9.9 10.0

. Revenues and Expenses

Fiscal Year Classification 2010 (As of Mar. 31, 2011) Insurance business income Operating revenues Investment business income Separate account income Sub Total 14,850,673 8,147,258 3,179,886 26,177,817 13,179,677 7,871,056 3,179,886 24,230,619 1,947,198 775,558 113,115 2,609,641 2009 (As of Mar. 31, 2010) 14,774,646 7,160,788 3,759,799 25,695,233 15,110,468 5,976,217 3,759,799 24,846,484 848,749 430,576 110,407 1,168,918

Unit : KRW in millions

Change Amount Proportion (percent) 76,027 986,470 ­ 579,913 482,584 ­1,930,791 1,894,839 ­ 579,913 ­ 615,865 1,098,449 344,982 2,708 1,440,723 0.5 13.8 ­15.4 1.9 ­12.8 31.7 ­15.4 ­ 2.5 129.4 80.1 2.5 123.3

2. Workforce

Fiscal Year Classification 2010 (As of Mar. 31, 2011) Financial Consultants (FCs) Male Female Total Male Other employees Female Total 6,578 27,779 34,366 3,046 2,834 5,880 2009 (As of Mar. 31, 2010) 9,621 34,423 44,044 3,148 3,150 6,298 ­ 3,034 ­ 6,644 ­ 9,678 ­ 102 ­ 316 ­ 418 Change

Insurance business expenses Operating expenses Investment business expenses Separate account expenses Sub Total Operating income Non-operating income Non-operating expenses Net income before income taxes

54

55

. Business Performance

1. Life Insurance Company's Business Performance Table (I) : Insurance

Individual products Classification Beginning balance New contracts New contract rate Increase Reactivation Other Sub Total Death Injury Maturity Decrease Retirement Termination Lapse Other Sub Total Ending balance Net change Contract Amount Group products Contract 1,504,375 1,048,712 2,887 901 1,052,500 734 26 586,823 52 246,512 53,832 3,625 891,604 1,665,271 160,896 Amount 22,993,162 8,913,564 38.8% 88,620 15,928 9,018,112 11,764 613 2,719,024 41 3,378,338 1,371,027 66,882 7,547,689 24,463,585 1,470,423 Retirement products Contract 1,061,946 277,537 64,003 341,540 75,992 273,386 76,915 426,293 977,193 ­ 84,753 Amount 8,642,896 922,738 10.7% 2,824,010 3,746,748 1,766,580 2,243,174 622,462 4,632,216 7,757,428 ­ 885,468

Unit : KRW in millions

Operation Results and Financial Condition of the Recent Three Years

Total Contract Amount

Operation Results .

Summarized Income Statements

Subsidiary Operating revenue Operating expenses Operating income Non-operating revenue Non-operating expenses Net income before income taxes Income tax expenses Net income FY2010 26,177,817 24,230,619 1,947,198 775,558 113,115 2,609,641 684,788 1,924,853 FY2009 25,695,233 24,846,484 848,749 430,576 110,407 1,168,918 262,823 906,095

Unit : KRW in millions

15,873,585 468,298,936 1,174,864 36,911 53,584 1,265,359 17,797 319 230,660 753,599 382,112 65,507 1,449,994 67,046,816 14.3% 1,429,967 3,461,528 71,938,311 393,829 9,570 2,645,690 27,436,205 19,140,639 4,625,616 54,251,549

18,439,906 499,934,994 2,501,113 39,798 118,488 2,659,399 18,531 345 817,483 76,044 1,273,497 435,944 146,047 2,767,891 76,883,118 15.4% 1,518,587 6,301,466 84,703,171 405,593 10,183 5,364,714 1,766,621 33,057,717 20,511,666 5,314,960 66,431,454

FY2008 25,288,687 25,160,845 127,842 301,817 210,384 219,275 106,248 113,027

. Financial Condition

Summarized Balance Sheets

Account Cash and deposits Securities Loans Investment properties FY2010 4,466,756 84,790,273 24,200,855 719,900 4,541,709 6,167,175 21,466,951 146,353,619 99,133,436 5,213,859 4,972,057 21,644,287 130,963,639 100,000 6,131 13,493 7,461,164 7,809,192 15,389,980 146,353,619 FY2009 3,544,742 74,086,845 24,530,227 725,924 4,397,673 6,223,281 19,536,381 133,045,073 92,024,918 4,739,855 4,510,073 19,637,407 120,912,253 100,000 6,131 5,948,767 6,077,922 12,132,820 133,045,073

Unit : KRW in millions

FY2008 5,387,982 64,444,683 24,522,863 817,570 3,922,724 6,040,482 16,531,174 121,667,478 87,486,909 3,589,105 6,515,042 16,645,905 114,236,961 100,000 93,889 2,024,801 5,211,827 7,430,517 121,667,478

15,688,950 485,985,698 ­184,635 17,686,762

18,331,414 518,206,711 ­108,492 18,271,717

2. Life Insurance Company's Business Performance Table (II) : Asset Management

Asset under management Beginning 107,228,528 Ending 118,655,933 Change 11,427,405 Income/Expenses Gross Yield Income 7,817,716 Expenses 835,374 7.17%

Unit : KRW in millions

Tangible assets Other assets

Net Investment Yield 6.38%

Special account assets Total assets Policy reserves Policyholders' equity adjustment Other liabilities Separate account liabilities Total liabilities Capital stock Capital surplus Capital adjustment Accumulated other comprehensive income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity

56

57

Mergers and Acquisitions

Parent Company .

Not applicable

Corporate Governance

Major Shareholders

Shareholders name Share owned 41,519,180 38,688,000 22,144,000 9,503,846 9,360,000 9,360,000 6,394,340 4,591,510 2,050,661 Ownership 20.76% 19.34% 11.07% 4.75% 4.68% 4.68% 3.20% 2.30% 1.03% Transaction with Samsung Life None None None None None None None None None

. Subsidiaries

Subsidiary Name Samsung Life Investment (U.K.) Ltd. Location Capital Business type Securities investment Number of shares owned Relations Ownership stake (percent) Business relations Contracted to manage Samsung Life's investment funds Contracted to manage Samsung Life's investment funds

Kun-hee Lee Samsung Everland Co., Ltd Shinsegae Co., Ltd Employee Stock Ownership Association Samsung Foundation of Culture

London

GBP 10 million

10,000,000

100.0%

Samsung Life Investment New York (America) Ltd. Samsung Properties China, Ltd.

$12 million USD

Securities investment

1,200

100.0%

Samsung Life Public Welfare Foundation CJ Co., Ltd CJ Cheiljedang Woori Bank(Korea Investment Management Co., Ltd)

Real estate Hong Kong $40 million USD investment and leasing

400,000

100.0%

None

. Interlocking Directorates in Subsidiaries

Not applicable

Board of Directors and Audit Committee

Transaction with Samsung Life None

Category

Name

Position President and Chief Executive Officer President, Asset Management Division Executive Vice President

Duty

Note

Challenges

Soo-chang Lee

Company-wide Asset Management Division Corporate product sales department head A permanent audit committee member Nonexecutive Nonexecutive Nonexecutive Nonexecutive Nonexecutive

See the `Business Developments' section

Sang-hang Kim Standing Jong-yun Han

None

None Audit committee member

Tae-gon Moon Soo-woong Hwang Audit committee member Jong-nam Lee Yeong-jin Kim Keun-oak Lew Jeong-dong Kim

Standing Auditor director director director director director

None None None None None None

the Board of Director chair the Audit Committee member

the Audit Committee chair

58

59

Audit Reports

Audit Committee's Audit Report

The Audit Committee of Samsung Life Insurance Co., Ltd. carried out auditing on the Company's accounting and business operations from April 1, 2010 to March 31, 2011 and reports the results as following: 1. Overview of Audit Methodology As for the accounting process, ledgers, relevant documents, financial statements and supplementary schedules were closely reviewed. The committee made comparisons, performed due diligence, called on relevant personnel, raised inquiries and took other appropriate audit procedures, if found to be necessary. To audit business operations, audit committee members attended the Board of Directors' meeting and other important meetings, asking directors for an update and if found to be necessary, read and closely reviewed all documents related to key business matters and took other appropriate measures. We have conducted our audits in accordance with the auditing standards generally accepted in the Republic of Korea. Those 2. Balance Sheet, Income Statement and Cash Flow Samsung Life Insurance's assets, P&L and cash flow were accurately recorded in its balance sheet, income statement and cash flow according to relevant laws and Articles of Incorporation. 3. Statements of Appropriations of Retained Earnings The statement of appropriations of retained earnings is in line with relevant laws and the Articles of Incorporation. In addition, it reflects the Company's overall financial status and other conditions. 4. Operating Report Operating report accurately captures the Company's circumstances according to relevant laws and the Articles of Incorporation. 5. Statement Pursuant to the FSS Regulations Samsung Life Insurance executives and employees were subject to the sanctions specified in the Detailed Regulations on Examination & Sanctions against Financial Institutions of the Financial Supervisory Service (FSS) during the fiscal year 2010. 1) Date : May 19, 2010 2) Details

Name Position Reason of imputation ·Incurring losses arising from a failure to perform stop securities losses in a foreign currency ·Incomplete internal controls related to outside research projects ·Obstruction of inspection including failure to submit relevant materials ·Engaging in prohibited activities related to insurance contracts ·Obstruction of inspection including failure to submit relevant materials Sanction

Report of Independent Auditors

To the Board of Directors and Shareholders of Samsung Life Insurance Co., Ltd. We have audited the accompanying non-consolidated statements of the financial position of Samsung Life Insurance Co., Ltd. (the "Company") as of March 31, 2011 and 2010, including related non-consolidated statements of income, appropriation of retained earnings, changes in shareholders' equity and cash flows for the years then ended, expressed in Korean won. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our auditing work.

standards require that we plan and perform the audit to obtain a reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the individual amounts and disclosures in the financial statements. An audit also includes assessing the various accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the non-consolidated financial statements referred to above present fairly, in all material respects, the financial position of Samsung Life Insurance Co., Ltd. as of March 31, 2011 and 2010. The audit discloses the results of its operations, the changes in its retained earnings, the changes in its shareholders' equity and its cash flows for the years then ended in conformity with the accounting principles generally accepted in the Republic of Korea. Accounting principles and auditing standards and their application in practice vary among countries. The accompanying nonconsolidated financial statements are not intended to present the financial position, results of operations, changes in shareholders' equity and cash flows in conformity with accounting principles and practices that are generally accepted in countries and jurisdictions other than the Republic of Korea. In addition, the procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying non-consolidated financial statements are for use by those who are reasonably informed about Korean accounting principles or auditing standards and their application in practice.

Soo-chang Lee

President

Light warning

Seoul, Korea May 25, 2011

Sang-yeol Kwon

Vice President

Light warning

May 12, 2011 Samsung Life Insurance Co. Ltd. Geun-ok Ryu Chairman of Samsung Life Insurance Audit Committee

Jong-nam Lee Standing Auditor

Tae-gon Moon Standing Auditor

This report is effective as of May 25, 2011, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying non-consolidated financial statements and notes within. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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61

Corporate History

Global Network

1950 s

1957 Began operation as Dongbang Life Insurance

2000 s

2000 2001 Introduced "Bichumi" character and related catchphrases Opened Noble County (retirement community) Received Grand Prize in Corporate Became an affiliate of the Samsung Group Policies in force exceeded 20 billion won 2002 Information Literacy Awards Announced the new vision of "Emerge as a Global, Integrated Financial Services Provider by 2010"

UNITED KINGDOM

CHINA JAPAN KOREA HONG KONG VIETNAM THAILAND

USA

1960 s

1963 1966

INDIA

1970 s

1976 Adopted an operational headquarters system

2003

Announced the Shared Values of Samsung Life and Code of Conduct Received a Presidential citation from Korea's Ministry of Women's Affairs

1980 s

1982 Established Dongbang Social Welfare Foundation (Currently Samsung Life Public Service Foundation) Organized a women's basketball team 1983 1984 1986 1989 Organized a wrestling team Completed a new Head Office building (currently Samsung Life Insurance headquarters) Opened the Tokyo and New York offices Renamed the company Samsung Life Insurance Co., Ltd. Opened a London office 2006 2005 2004

Established an American office Assets exceeded 80 trillion won Assets exceeded 90 trillion won Declared the "Year of Customer Service" Opened a Mumbai office Opened Samsung Air China Life Insurance as a joint venture in Beijing Became Korea's first life insurer to receive a "AAA" credit rating Announced the new corporate motto, "A Partner for Life" Ranked 1st in number of MDRT members (2,649) Launched Samsung Lifecare Research Center

Headquarters KOREA

Samsung Life Insurance Co.,Ltd.

150, Taepyeongro 2ga, Junggu, Seoul, Korea T 8215883114

Europe UNITED KINGDOM

Samsung Life Investment (U.K) Ltd.

21st Floor, Tower 42, Old Broad Street, London, EC2N 1HQ, United Kingdom T 442077867811 F 442077867840

Southeast Asia THAILAND

Siam Samsung Life Insurance Company

2922/240241 Charn Issara Tower 2, 15th Floor. New Petchburi Road, Bangkapi, Huaykwang, Bangkok 10320 Thailand T 6623082253 F 6623082269

East Asia CHINA

Samsung Life Insurance Co.,Ltd. Beijing Representative Office

28th Floor, China Merchants Tower, No.118, Jian Guo Lu, Chao Yang Qu, Beijing 100022, china T 861065668100 (Ex)6100 F 861065668142

United States USA

Samsung Life Investment (U.S.A) Ltd.

152 West 57th Street, 7th Floor, New York, NY10019, U.S.A. T 12124216751 F 12124214211

1990 s

1991 Began to offer child-care services (Samsung Daycare Centers). Now 23 centers are in operation nationwide. 1994 1995 1996 1997 1999 Opened Samsung Medical Center. Monthly revenue exceeded one trillion won. Opened a Beijing office Established the Samsung Life Public Contribution Team Opened the Institute of Social and Mental Health Launched Siam Samsung in Thailand as a joint venture Opened the Human Center (employee training facility) 2009 2008 2007

Total assets exceeded 100 trillion won, a first in the non-banking sector Launched the "Life Protection Awareness" campaign Celebrated the 50th anniversary Ranked 1st in Korea's top 3 customer satisfaction indices (NCSI, KSCI and KS SQI) for 4th consecutive years Opened the Hanoi office Launched Perfect Combination Life Insurance Launched the "2009 Samsung Life Family Hope" campaign Opened the W. Leadership Center

Samsung Life Insurance Co.,Ltd. London Representative Office

21st Floor, Tower 42, Old Broad Street, London, EC2N 1HQ, United Kingdom T 442077867823 F 442077867807

VIETNAM

Samsung Life Insurance Co.,Ltd. Hanoi Representative Office

Unit 805, HCO bldg., 44BLy Thuong Kiet st., Hanoi, Vietnam T 84439368855 F 84439369056

Samsung Air-China Life Insurance Co.,Ltd.

28th FIoor, China Merchants Tower, No118, Jian Guo Lu, Chao YangQu, Beijing 1000022, China T 861058201881 F 861058201999

Samsung Life Insurance Co.,Ltd. New York Representative Office

85 Challenger Road, Ridgefield Park, NY 07660, U.S.A. T 12012296030 F 12012296024

South Asia INDIA

Samsung Life Insurance Co.,Ltd. Mumbai Representative Office

552. Solitaire Corporate Park, Andheri Ghatkopar Link Road, Chakala, Andheri (E) Mumbai Maharastra 400093. India T 912222022300 F 912261438383

JAPAN HONG KONG

Samsung Asset Management (Asia) Ltd.

Suite 3306, Two Exchange Square, 8 Connaught Place, Central, Hong Kong T 85221108682 F 85221104220

Samsung Life Insurance Co.,Ltd. Tokyo Representative Office

ROPPONGI TCUBE 311, Roppongi, Minato­ku, Tokyo 1068532, Japan T 81362342219 F 81362342218

2010 s

2010 Launched the Global Experience Project for women employees Initial Public Offering on the Korea Exchange 2011 Opened retirement and insurance financial research and development (R&D) centers Launched `love in us' brands

Samsung Life Insurance Co.,Ltd. U.S. Representative Office (IRO)

152 West 57th street, 20th Floor, New York, NY 10019, U.S.A T 12124212705 F 12124212665

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63

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