Investor Relations 2019

4Q 2018 Earnings Results

This presentation has been prepared by Orange Life Insurance, Ltd. (the “Company”) solely for informational

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134

116

2017 2018

Growth

-14.0%

5,330

5,578

2017 2018

RoEV

8.8%*

* RoEV before dividend outgo

5,799 Dividend outgo

308 327

2017 2018

6.3%

Profitability

428

351

2017 2018

-1.1%*

340

311

2017 2018

7.1%* 364*

8.4%

8.7%

9.8%

2017 2018

1.1%p*

*

Reported

basis

* Adjusted for one-off expenses (Rebranding, Stock option vesting, and Employee special bonus)

424*

Capital Management

2017 2018

Interim Final

2,600 2,400

8.3% 455% 425%

2017 2018

-30%p

1,600

1,000

* 2018 final dividend to be approved at AGM

*

1,700

700

68.5%

58.0% 58.5%

2017 2018

*

Reported

basis

* Adjusted for one-off expenses

(Rebranding, Stock option vesting, and Employee special bonus)

01. Key Financial Highlights

02. New Business Growth

03. VNB (Value of New Business) Growth

04. VNB (Value of New Business) Margin

05. Premium Income & Profits

06. Source of Earnings

07. Investment Results

08. Reserves / Crediting Rate

09. Efficiency

10. Capital Adequacy

11. Embedded Value

12. Strategic Direction Towards 2021

13. 2019 Growth Targets

14. Next Reporting Due Date

(Unit: KRW bln)

4Q 2018 4Q 2017 yoy 2018 2017 yoy

Annualized Premium Equivalent (APE) 179.7 157.6 14.1% 718.0 684.3 4.9%

Protection APE 80.7 85.1 -5.3% 327.3 307.9 6.3%

Value of New Business (VNB) 24.9 31.3 -20.3% 115.7 134.5 -14.0%

Premium Income 1) 1,199.3 1,014.6 18.2% 4,664.7 4,113.3 13.4%

Operating Result Before Tax 2) 36.3 92.1 -60.6% 351.3 428.4 -18.0%

ORBT excluding one-offs 2) & 3) 100.0 92.1 8.6% 423.7 428.4 -1.1%

Profit After Tax (PAT) 46.2 66.7 -30.7% 311.3 340.2 -8.5%

PAT excluding one-offs 3) 92.8 66.7 39.2% 364.4 340.2 7.1%

Total Assets 32,744.1 31,455.4 4.1% 32,744.1 31,455.4 4.1%

Invested Assets 26,319.3 24,558.2 7.2% 26,319.3 24,558.2 7.2%

Investment Yield 4) 4.0% 4.0% 0.0%p n/m n/m n/m

Shareholders' Equity 3,772.4 3,668.6 2.8% 3,772.4 3,668.6 2.8%

RBC Ratio 425% 455% -30%p 425% 455% -30%p

Note 1) Includes premium income from variable business

Note 2) Operating Result Before Tax is Profit Before Tax excluding market variance (Realized capital & FX gains, losses/impairments)

Note 3) One-off costs for 2018 include Rebranding to Orange Life, Stock Option vesting, and Employee special bonus

Note 4) Adjusted investment yield & 12-month rolling basis: Net Investment Income/Invested Asset (Excludes Unrealized Gains and Losses)

Stock market volatility has weakened demand for Variable products, while

lower market interest rates supported sales of BA Savings

Total APE rose 14.1% on high BA volumes, while Protection APE was 5.3%

lower as FC and GA channels face temporary headwinds from rebranding

Value of New Business was 20.3% lower, largely due to a pause in

Protection growth, and falling interest rates

Profits lower after one-off costs including rebranding to Orange Life, stock

option vesting, and employee special bonus

Total Assets and Invested Assets up 4.1% and 7.2%, respectively

Shareholders’ Equity 2.8% higher, as lower interest rates lift bond values

RBC ratio remains very strong at 425%, after the 2018 final dividend

Note: Dotted lines represent brokers’ 2018 KTB 5yr and 10yr quarterly projection

consensus at start of the year

Note: Brokers’ 2018 KOSPI band projection at start of the year

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

BOK Base rateKTB 5yrKTB 10yr

BOK base rate hike(30 Nov 2017)

↑

BOK base rate hike(30 Nov 2018)

↑

1,800

2,000

2,200

2,400

2,600

2,800

3,000

Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

KOSPI

2,041.04P(28 Dec 2018)

Range of outlooks for KOSPI

Bond yields continue to fall, despite US

Fed rate rises

Against market expectations, KTB yields

declined through 3Q and 4Q18

Where KTB 10yr yields were expected to

rise towards 2.7%, they have instead

fallen to 1.95% at end-2018

These low bond yields depress the Net

Investment Earnings Rate (NIER) used to

evaluate 2018 VNB, and can delay the

release of GMxB reserves to profits

Korean equities’ performance disappoints

Despite a bright outlook at the start of the

year, the Korean equity market dropped

17.3% over the year, leading to higher

GMxB reserves on in-force Variable

policies, and reduced customer demand

for new variable policies

The 2019 outlook for equities remains

uncertain, and our 2020 SAA equity

allocation has been reduced to 2% (from

3%)

APE: Annualized Premium Equivalent

FC: Financial Consultant, BA: Bancassurance, GA: General Agency

83.0 61.4

39.2 84.3

35.3

34.0 157.6

179.7

4Q 2017 4Q 2018

FC BA GA

369.2 308.4

204.9 280.4

110.2 129.2

684.3 718.0

YTD 2017 YTD 2018

85.1

307.9

80.7

327.3

4Q YTD

14.1%

-5.3%

4.9% 6.3%

4Q

2017

2Q 2018 YTD 2017 2Q 2018 4Q

2018

YTD

2017

YTD

2018

4Q

2017

4Q

2018

YTD

2017

YTD

2018

Total APE rose 14.1% (KRW +22.2 bln)

FC channel increased Protection mix to

76.1% of APE (from 61.2%) but steep

declines in Savings and Variable APE

pulled the channel’s total APE lower

Demand for Variable products was

already depressed as we entered 2018,

but this year’s stock market volatility has

made the market even more challenging

BA channel continued the recovery

started in 3Q, and lifted their 2018 APE

by 36.9%. APE is now overweight on BA

channel, and will be reduced in 2019 by

targeting less single premium sales

GA reduced 3.8% with 99.8% Protection

mix with the balance being Variable

Protection APE fell 5.3% (KRW -4.5 bln)

The slower FC productivity experienced

in 3Q18, following the announcements of

rebranding to OrangeLife, and the

‘change of control’ to Shinhan Group,

continued through 4Q18. We expect

momentum to pick up again from 1Q19

The nationwide rebranding campaign ran

from early September through to late

November, culminating in the successful

title sponsorship of the Orange Life

Champions Trophy – a widely watched

KLPGA golf tournament

39.6 30.9

35.7

30.8

34.0

29.0

24.9

1-3Q2018

Reported

YTD2018

Restated

YTD2017

4Q2017

4Q2018

VNB: Value of New business

4Q

2017

4Q

2018

YTD

2017

115.7

134.5

24.9 31.3

4Q

2Q

1Q

3Q

109.3

98.0 (1-3Q)

19.7%

16.1%

0.0%p -0.6%p

-1.0%p

-1.9%p

YTD2017

Volume Product &Business

Mix

BEAs Market YTD2018

BEA: Best Estimate Assumption

-20.3%

-14.0%

Note 1) NIER: Net Investment Earnings Rate

YTD VNB margin declined -3.5%p to 16.1%

Lower KTB yields pushed NIER1) down a

further 25bps this quarter to 2.90% (or

35bps below the end-2017 rate), which cut

1.9%p from the full-year VNB margin

[Historical NIERs: 2.90% (1Q17), 3.00%

(2Q17), 3.15% (3Q17), 3.25% (4Q17),

3.35% (1Q18), 3.30% (2Q18) , 3.15%

(3Q18) and 2.90% (4Q18)]

Significant volumes of low margin Savings

products in 3Q and 4Q18 have diluted the

company-level VNB margin, but still

generated positive value

Negative impact from BEA changes largely

reflects higher expenses in 2018

KRW 6.3 bln lower VNB

The lower volume of FC sales in 4Q, led

by the decline in Variable APE, resulted in

lower VNB

VNB is calculated independently each

quarter based on the quarter-end NIER.

At year-end, the VNB for 1Q~3Q is

restated on year-end assumptions (year-

end NIER) and added to the 4Q VNB

As at 3Q18 the sum of quarterly reported

VNBs was KRW 109.3 bln compared to

KRW 98.0 bln for the same 3 quarters of

2017. Because of the drop in NIER to

2.90% at end-2018, the restated 1~3Q18

VNB reduced to KRW 90.7 bln (against

the restated 1~3Q17 VNB of KRW 103.2

bln at NIER 3.25%)

30.8%

4.0%

11.6%

31.0%

3.0%

9.2%

FC BA GA

YTD 2017 YTD 2018

38.1%

5.3% 3.5%

32.3%

3.3%

0.7%

Protection Savings Variable

YTD 2017 YTD 2018

VNB margins lower as interest rates tumble

Protection VNB Margin dropped on lower

NIER (down 35bps from end-2017) and also

from a higher mix of GA business which has

a lower margin than FC Protection

Savings margin remains positive but has

been squeezed by lower interest rates,

leading to lower investment spreads

VNB margins show mixed results

FC channel’s VNB margin rose 0.2%p to

31.0% on the increased mix of Protection

business

BA volumes recovered strongly to exceed

prior year, but revaluing the full-year

volume at year-end NIER led to 1.0%p

lower VNB margin at 3.0%

GA channel increased volumes by almost

20%, but the lower NIER and high cost

base led to lower VNB margin at 9.2%

3,684.6 3,801.9

428.6

862.9 4,113.3

4,664.7

YTD2017

YTD2018

92.1

36.3

4Q 2017 4Q 2018 YTD 2017 YTD 2018

66.7

46.2

4Q 2017 4Q 2018

340.2

311.3

YTD 2017 YTD 2018

904.5 974.6

110.1 224.7

1,014.6 1,199.3

4Q 2017 4Q 2018

Regular Single

Premium income includes variable business

18.2%

13.4%

-1.1%*

4Q

2017

4Q

2018

YTD

2017

YTD

2018

4Q

2017

8.6%*

100.0*

423.7*

92.8**

364.4**

428.4

351.3

Operating Result Before Tax: Profit Before Tax excludes market variance

(Realized capital & FX gains and losses/Impairments)

* ORBT adjusted for one-off costs

(Rebranding to Orange Life, Stock option vesting, and Employee special bonus)

Operating Result Before Tax

Profit After Tax

4Q

2018

YTD

2017

YTD

2018

4Q

2017

4Q

2018

YTD

2017

YTD

2018 ** Profit After Tax adjusted for one-off costs

(Rebranding to Orange Life, Stock option vesting, and Employee special bonus)

39.2%**

7.1%**

Premium Income up 18.2%

Regular premium income climbed 7.8%

on BA volume recovery, with single

premium income up 104.1%

On a YTD basis, regular premium income

is up 3.2%, while single premium income

has more than doubled

After holding back in 1Q and 2Q18, BA

volumes recovered in 3Q and 4Q, but we

plan much lower single premium volumes

(KRW) in 2019

Lower 4Q profits due to one-off costs

Profit figures (ORBT & PAT) are shown

both excluding (‘adjusted’) and including

(‘reported’) one-off 2018 costs,

including Rebranding to Orange Life

(KRW 21.2 bln), Stock Option vesting

(KRW 31.5 bln), and Employee special

bonus (KRW 19.6 bln)

The one-off costs were removed to show

‘adjusted’ profits, and the final 2018

shareholder dividend is based on the

higher ‘adjusted’ results

Adjusted ORBT rose 8.6%, which helped

the YTD figure recover and end the year

down just 1.1%

Adjusted PAT climbed 39.2%, lifting the

adjusted YTD figure 7.1% above prior

year

Loadings +772.6

Risk Premiums

+734.4

Investment Return +955.7

Claims -587.2

Investment

Credited

-849.6

36.0

0.9

42.3

30.0

16.7

22.9

95.0

53.8

4Q 2017 4Q 2018

220.3

159.5

142.2

147.2

89.7

106.1

452.2

412.9

YTD 2017 YTD 2018

InvestmentMargin

Mortality &Morbidity Margin

Expense & OtherMargins

Note 1) Other Margins includes Reserves, Lapses, Surrenders, Policyholders’ Profit Share, and others

Note 2) Expenses: Acquisition and Maintenance Expenses – Other Margins

Note 3) PBT: Profit Before Tax

1)

PBT3)

412.9

159.5

147.2

106.1

Expenses2)

-613.1

4Q

2017

4Q

2018

YTD

2017

YTD

2018

Balanced Source of Earnings with a positive investment margin

Expense & Other margins reduced by KRW 35.1bln, including KRW 63.7 bln of one-off 4Q

2018 costs (Rebranding to Orange Life, Stock Option vesting, and Employee special

bonus). Including Rebranding costs of KRW 8.4 bln in 3Q18, KRW 0.3 bln in 1~2Q18, the

full year one-off costs totaled KRW 72.4 bln

Mortality margin improved, while morbidity margin reduced further due to carcinoid tumor

payment (KRW 2.4 bln) which was imposed by the regulator across the industry, leading to

a net decrease in mortality & morbidity margin of KRW -12.2 bln

Investment margin increased by KRW 6.1 bln and remains ahead on a YTD basis by KRW

16.4 bln

Excluding one-off 2018 costs, 2018 total PBT increased by KRW 33.1 bln to KRW 485.3 bln

4.5% 4.4%

4.2% 4.2% 4.1% 4.1% 4.1%

4.0% 4.0% 4.0%

4.0% 4.0%

4.2% 4.1% 4.1%

3.9% 3.9% 3.9% 3.8%

3.8% 3.7%

3.9%

3.8% 4.0%

3.8% 3.8% 3.7% 3.7% 3.7% 3.7%

3.5% 3.6% 3.6% 3.5%

1Q2016

2Q 3Q 4Q 1Q2017

2Q 3Q 4Q 1Q2018

2Q 3Q 4Q

Orange Life

Industry Average(Weighted)

Industry Average(Simple)

85.8%

81.3%

8.7%

9.8%

2.3%

2.0%

1.2%

3.1%

1.5% 3.2%

0.5% 0.5% 0.0% 0.0%

4Q 2017 4Q 2018

Other Securities

Domestic Stock

Investment Funds

Overseas Securities

Cash & Cash Equivalent

Loans

Domestic Bonds

Note 1) Adjusted investment yield & 12-month rolling basis: Net Investment Income/Invested Asset (Excludes Unrealized Gains and Losses)

Note 2) Weighted mean of 24 life insurance companies(including Orange Life). 4Q 2018 results not yet available

Note 3) Arithmetic mean of 24 life insurance companies(including Orange Life). 4Q 2018 results not yet available

Yield-enhancing

Investments 6.8%

4Q

2017

4Q

2018

Investment return remains above industry

average

Interest rates dropped sharply lower during

the quarter with the KTB10 falling 41 bps to

1.95% (4Q18)

Investment of new cash is a challenge as

equity markets and domestic bond yields

both decline, while hedging costs for

overseas assets remain stubbornly high

Asset portfolio remains low-risk

Domestic bond allocation reduced by 4.5%p

to 81.3% of total Invested Assets

A large proportion of net new money is

being invested in yield-enhancing assets

which increased from 3.2% (4Q17) to 6.8%

(4Q18) of the Investment Portfolio

• KRW 45.2 bln into US & EU real estate

funds

• Investment in foreign bonds has been

suspended for the quarter due to high

hedging cost back to Korean won

ALM duration gap reduced to 0.61 years

(from 0.81 at 4Q17) from longer asset

duration and shorter liability duration

Loans increased to 9.8% and are largely

policy loans

20,522 22,170

4.0% 3.9%

4Q 2017 4Q 2018

Reserves Crediting Rate

49.3% 49.2%

50.7% 50.8%

10.1% 9.8%

4Q 2017 4Q 2018

Floating Crediting RateFixed Crediting RateFixed Crediting Rate 6% or More

4Q

2017

4Q

2018

4Q

2017

4Q

2018

Crediting rate has been managed lower

Fixed rate guarantees decreased by

4bps from 4.96% to 4.92% as new

business continues to dilute the

portfolio

Floating crediting rate on Savings and

Annuities was reduced from 3.04% to

2.96%

Floating crediting rates are driven by

market interest rates and competition

for Savings APE

Maintaining a sound reserve composition

Fixed reserve portion remains close to

50% while the share of reserves with high

guarantees is below 10%

The mix of floating crediting rate reserves

increased slightly (by 0.1%p) as a result of

high new business volumes from BA, but

is expected to reduce in 2019 on lower

planned volumes of BA Savings

1,232 1,217

80.2% 80.2%

70.8%

61.0%

4Q 2017 4Q 2018

Number of In-force CustomersPersistency - 13th monthPersistency - 25th month

4Q 2017 4Q 2018 YTD 2017 YTD 2018

Expense Ratio (Maintenance Cost / Premium Income)

Loss Ratio (Claims/Risk Premium)

+0.1%p

-9.8%p

42.3% 42.1%

89.0% 101.0%

72.3% 81.3%

4Q 2017 4Q 2018

Mortality Morbidity Total

YTD 2017 YTD 2018

YTD

2017

YTD

2018

4Q

2017

4Q

2018

YTD

2017

YTD

2018

4Q

2017

4Q

2018 YTD

2017

YTD

2018

10.8% 6.4%

5.6%1)

4.9%1)

Note 1) Excluding one-off maintenance costs (Rebranding to Orange Life, Stock option

vesting, Employee special bonus)

6.5%

5.6%

76.1% 76.2%

95.4% 92.9%

41.7% 42.4%

Expense/Loss ratio

Expense Ratio increased to 10.8% (or

5.6% if we exclude KRW 61.8 bln of one-

off maintenance costs)

Loss Ratio hiked to 81.3%, but the YTD

loss ratio was down 0.1%p to 76.1%

•KRW 2.4 bln was paid out on carcinoid

tumor which was imposed by the

regulator across the industry. It

increased morbidity claims for the

quarter

Persistency/Number of in-force policyholders

13th month persistency rose 0.1%p as

management has taken steps to improve the

25th month persistency

25th month persistency dropped 9.8%p to

61.0% and will continue to be influenced by

two historic issues until later in 2019

• In 2016, FC Channel sold a customer-

friendly high-CSV variable product, but

surrender rates were higher than expected,

so the product was redesigned in 1H17

• In 2016, GA channel paid commission over 2

years, creating an opportunity for some GAs

to lapse the business before year 3 – the

commission scheme was revised from 1H17

to lengthen the commission payment period

3,638 3,731

799 878

455%

425%

440%

4Q 2017 4Q 2018

Available Capital Required Capital RBC Ratio

3,669 3,772 +311 -221

+14

4Q 2017 PAT Dividend OCI 4Q 2018

RBC Ratio: Risk Based Capital Ratio OCI: Other Comprehensive Income

Net increase in

Retained Earnings:

+90

4Q

2017

4Q

2018

4Q

2017

4Q

2018

(before year-end dividend)

(after year-end dividend)

Shareholders’ Equity increases as bond

values rise (on lower interest rates)

Reported Shareholders’ Equity reflects

the 2018 interim dividend payment of

KRW 82 bln, in addition to the year-end

2017 final dividend of KRW 139 bln

ROE was 5.0% on reported PAT of KRW

46.2 bln for the quarter (8.4% on a YTD

basis)

Adjusted ROE would be 10.0% on PAT of

KRW 92.8 bln (excluding one-offs) for the

quarter (9.8% on a YTD basis)

RBC reduced slightly to 425%

A regulatory strengthening of GMxB

risk (from CTE85 to CTE90) became

effective from December 2018,

reducing RBC ratio by 7%p

There was no impact from the

regulatory increase in the liability

duration cap from 25 to 30 years (also

effective from December 2018)

because this change was early-

adopted in June 2017 and has already

been reflected in our reported RBC

ratios

Available Capital increased as AFS

bond values increased due to lower

market interest rates

3,743

4,615 4,393

1,587

1,184

1,184

EV Operating Profit: 414

Opening EV

31, Dec. 2017

VNB Unwinding Operating variances

Operating assumption

changes

Changes in market

variances

Other non-operating

variances

Total EV Profit

EV

31, Dec. 2018

(before dividend)

Dividend paid

Closing EV

31, Dec. 2018

5,330

-221

5,799 5,578

VIF

ANW

Note: Yellow and turquoise boxes not to exact scale

RoEV 8.8%

ANW Mvmt 871

Present Value of future premiums: 298

New business strain: -182

Value of new business: 116

321 -9 0 560

116 -15 -8 -37 -513 56

VIF Mvmt -402

EV before dividend outgo stood at KRW 5.8 trn, giving an 8.8% RoEV

2018 EV operating profit was KRW 414 bln, including VNB and Unwinding

Value of New Business was KRW 116 bln, including KRW 182 bln of New Business Strain

Lower market interest rates reduced the Value of In-Force by KRW 513 bln but increased

the Adjusted Net Worth by KRW 560 bln

2018 closing EV stood at KRW 5.578 trn after deducting KRW 221 bln of dividends paid out

during 2018

Target # of Customers Ratio of Multi-contract

holders

1.40Mln

1.22Mln

Create synergies with Shinhan Financial Group

Obtain quality customer DB through strategic

alliances with third-parties

Enter into new markets to capture new

customer segment with purchasing power

Expand utilization of digital platform,

such as Omni Platform

Launch new products to specified

customer segments

Build healthcare platform

Upgrade and newly conceptualize

our existing products

FC: Organic + Inorganic Growth

(Focus on growing active # of FCs)

GA: Strengthen relationships to expand

market presence

BA: Focus on Variable, USD Savings,

Asset-linked Products

CUSTOMER

PRODUCT

CHANNEL

2018 2021 2018 2021

50% 30%

Tap Blue

Ocean market

Time to Market

# of Active FCs GA M/S

First in

the market

Fast follow

within

2 month

4,420

3,420

2018 2021 2018 2021

TOP

5 TOP

12

Striking the right balance between 4 drivers (Growth, Profitability, Efficiency, Risk & Capital

Management) whilst aiming for a Quantum leap over the next 3 years

Customer Strategy

- Targets: Increase #of customers from 1.2 million in 2018 to 1.4 million in 2021, while expanding

the ratio of customers holding multiple contracts from 30% in 2018 to 50% in 2021.

· Coordination with Shinhan Financial Group affiliates and utilize outside database through

selective partnerships

· Apply flexible underwriting guidelines to meet new customer needs in untapped markets

· Continue digitalization program (example: Omni Platform)

Product Strategy

· Develop trend setter products that are new to the market

· Fast adapt to new health products to widen the scope of our healthcare platform

· Improve customer demand and loyalty by upgrading existing products and introducing

new concepts

Channel Strategy

· Maintain focus on FC channel: Increasing # of active agents to sell more protection policies

· Strengthen GA market presence via broader alliances (Aiming for Top 5 in GA)

· Strategic focus on profitable products in BA, such as Variable, USD Savings, Asset-linked products

Protection APE

VNB

EV (before dividend outgo)

PAT

15%

8%

-

6%+∆

FC 5%

GA 30%

• Increasing # of active FCs with higher

protection mix

• Quantum Leap in GA channel sales

: Expanding from Corporate to mass market

• Enhancing the health portfolio

• VNB growth to pick up with higher

Protection APE

• Operational and experience improvements

• Investment in digitalization & IFRS17 systems

• New business strain from high growth in

protection new business

• Increase allocation to yield-enhancing assets

amid continuing ALM practice for IFRS17

• Double digit growth in protection

(GA to lead higher growth than FC channel)

• Total APE expected to decline with lower

demand in variable and savings

Ambitions for 2019

Protection APE growth of 15%, while Total APE to be reduced by lower sales in Variable

and Savings

VNB growth of 6%, as higher mix towards protection will offset reduction of sales Volume

(expecting higher protection growth from GA than from FC)

EV growth of 8% through a combination of higher VNB, improving efficiency, and driving

improvements in experience (lapses, claims, etc.)

PAT to remain almost flat, given the current state of financial markets (bonds and equities).

Improved efficiencies will offset increased new business strain from high protection growth.

Expect some equity impairment losses in 2019, given poor stock market performance in

2018, which will be offset by other gains

3,772

4,393 +886

-36 -19 -210

Shareholder'sEquity (2017)

① ② ③ ④ EV ANW

① Fair value adjustment on deposits and derivatives,

and Held to Maturity bonds

② Adjustment on intangible assets

③ Deduct Long-term activity bonus to tied agents

④ Tax on pre-adjustments at 25.3%

Reported stand-alone quarterly VNB

Adjustment to 2.90% NIER

Restated : 30.9 30.8 29.0 24.9

@ NIER

3.35%

Reported : 39.6

@ NIER

3.30%

35.7

@ NIER

3.15%

34.0

@ NIER

2.90%

24.9

Q2 Q3 Q4 Q1

Reported stand-alone quarterly VNB

Adjustment to 2.90% NIER

Total

115.7

499 451

412 385 362 340 320 293 261 238

-

100

200

300

400

500

600

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Total Pre-Tax Income

•

•

•

•

•

Market Interest

Rate

Discount Rate

Lapses

Mortality

/ Morbidity

Maintenance

Expenses

-193

-155

-28

-408

-47

175

179

31

408

47

10

-20

-13

-13

-3

-10

23

14

13

3

1Q 2019 Earnings Results will be released in May 2019

Until then…… we would like to encourage all of our

shareholders to cast their votes at our AGM

(date to be announced)