Samsung Life Insurance Annual Report Life Insurance Annual Report Samsung Life Insurance Annual...
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Sam
sung Life Insurance Annual R
eport
Samsung Life InsuranceAnnual Report FY2010 ( April 1, 2010 - March 31, 2011)
This brochure is printed on paper promoting sustainable forest management.
www.samsunglife.comSAMSUNG LIFE INSURANCE Co., Ltd 150, Taepyeongno 2-ga, Jung-gu,Seoul, KoreaTel. 1588-3114
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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.
People & Love
We spread a message of‘caring’ because people protect their loved ones fromtheir deep caring and love.
V i s i o n
C E O ’ s M e s s a g e
K e y E x e c u t i v e s
F i n a n c i a l H i g h l i g h t s
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 Services30 Brands
Love & Love
34 Social
Contributions36 Sports
Sponsorship and
Arts & Cultures
Financial Report
39 Management’s
Discussion and
Analysis
43 Financial
Statements
51 Business Overview 54 Operations
Overview59 Corporate
Governance61 Audit Reports
0 2 0 3
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.
To be Respected as the World’s Premier
Provider of Financial Freedom
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 decision-
making and practice rational
management.
We ensure stable corporate
growth through the
establishment of efficient
management systems.
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.
V i s i o n
0 4 0 5
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.
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.
C E O ’ s M e s s a g e
Keun-hee Park
President and Chief Executive Officer
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
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.
0 6 0 7
Jong-yun Han Executive vice presidentCorporate insurance business division head
Stephan Rajotte Executive vice presidentInternational business division head
Woo-jung Suh Executive vice presidentCorporate governance division head
Sang-yong Kwak Executive vice presidentCorporate planning division head
Sang-hang Kim PresidentAsset Management business
Tae-gon Moon Standing member of audit committee Audit committee
Jae-ho Shim Senior vice presidentOverseas business division head
Young-soo Cha Senior vice presidentAsset management division head
Sang-yong Lee Senior vice presidentIndividual insurance business division head
See-hoon Cho Senior vice president Product strategy division head
Gwang-il ChoiSenior vice president Corporate business department 1 head
Sang-mook LeeSenior vice president Research institute of insurance & finance
Young-jae KangSenior vice president Gangbuk regional headquarters head
Je-hoon Yeon Senior vice presidentHuman resources division head
Young-june Park Senior vice presidentManagement 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
Jong-jung Youn Senior vice presidentBusan regional headquarters head
Chang-woo ByunSenior vice president Marketing division head
Jeong-soo HanSenior vice president Overseas business planning
Byung-soo ChoiSenior vice president IT Strategy division head
Donald CardenSenior vice president The president of siam samsung
Hong-joo KwakSenior vice president Internal audit division head
We will grow as a global financial institution based on
an effective and responsible management system that
incorporates creative change and innovation.
K e y E x e c u t i v e s
0 8 0 9
2008
121,000,000
2009
25,695,200
2008205%
2010
26,177,800 1.9%
2010
146,000,000 10%
2010 332%
52%
Net Income
Operating revenues
2008 113,000
Total assets
2009 133,000,000
2009
280%
2009
906,100
F i n a n c i a l H i g h l i g h t s
RBC ratio (Risk-based Capital Ratio)
2010
1,924,900 112.4%
2008
25,288,600
Unit : million won
Unit : million won
Unit : million won
Innovation & Value
Samsung Life offers custom management Through Innovative management philosophy and customers values.
L o v e M a n a g e m e n t
V i r t u o u s M a n a g e m e n t
C o m m u n i c a t i v e M a n a g e m e n t
1 2 1 3
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 seg-
ment on Korea’s National Customer Satisfaction
Index for seven consecutive years. Moreover,
the company has provided customers with
more systematic and advanced services includ-
ing our program ‘With Partner Service’ that
offers our business know-how of customer ser-
vice and the online consulting service ‘Web &
Call’ service.
Throughout 2011, Samsung Life will more ac-
tively 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 volun-
teer 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
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.
1 4 1 5
feedback
using various
feedback channels
Fevaluation
offering fair evalu-
ation and compen-
sation
Elistening
listening to various
opinions
Lidentification
identifying sound standards for
judgment
I
Samsung Life pursues management practices
that are pursuant to its core principles. We try
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 com-
mittee 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 sponta-
neously participate in our ethical management
through an internal whistle blowing system and
campaigns on customer information protection
and incomplete sales prevention to expand vir-
tuous management to the corporate level.
Samsung Life has adopted strict rules and
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 mar-
ket environment.
Companies faithful to
undamental principles of
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
1 6 1 7
We can understand each
other and develop through
effective communications.
Samsung Life grows through
listening to various opinions
of customers, society and
employees and reflecting
them to management.
Samsung Life practices ‘Communicative Man-
agement‘ for understanding and development
of its customers and services. We have promot-
ed reasonable development based on commu-
nications with our employees, customers and
society.
To promote communications between head-
quarters 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 commu-
nications with our customers for the first time in
the industry, thus maintaining diverse commu-
nications channels with society through various
and systematic social contribution activities.
Samsung Life will continue to diversify commu-
nications channels for more effective commu-
nications and reflect these valuable opinions to
management.
Communicative Management
Passion & Life
Passion for customers and their life, Samsung Life endeavors to secure customers’ happiness.
R e s e a r c h & B u s i n e s s
O p e r a t i o n s
G l o b a l O p e r a t i o n s
A s s e t M a n a g e m e n t
P r o d u c t s
C u s t o m e r S e r v i c e s
B r a n d s
2 0 2 1
R e s e a r c h & B u s i n e s s O p e r a t i o n s
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.
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
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 inancia l consul tants, wi th 1,562 hav ing obta ined
membership in the Million Dollar Round Table, a renowned
international association of life insurance professionals.
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
magazine in 2010 for its differentiated competence and
brilliant performance.
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.
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G l o b a l O p e r a t i o n s
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
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.
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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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.
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.
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
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.
A s s e t M a n a g e m e n t 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
2 4
2 6
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.
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.
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 (non-
discretionary, discretionary and money markets) to suit each
individual’s long-term investment goals.
P r o d u c t s 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.
2 7
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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.
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.
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.
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.
C u s t o m e r S e r v i c e s
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)
We make customer convenience as a top priority, and
listen carefully to our customers’ feedback as we continue
innovation for quality and rewarding services.
2 8
3 0
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 wil l 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.
B r a n d s
Human beings are
made to love each
other including family
and themselves.
Samsung Life helps
customers to protect
their loved ones.
3 1
S o c i a l C o n t r i b u t i o n s
S p o r t s S p o n s o r s h i p a n d
A r t s & C u l t u r e s
Love & Love
Through sharing for tomorrow and increasing compassion for others, Samsung Life contributes to making the world a better place for all.
3 4 3 5
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.
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.
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
of mangrove trees in Thailand in 2010 to reduce greenhouse
gas emissions.
S o c i a l C o n t r i b u t i o n s
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.
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.
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.
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.’
Planting program of mangrove trees in Thailand
The opening ceremony of store No.192 in the entrepreneurship support program for low-income single mothers
Farming volunteer work for local communities
3 6 3 7
Ji-hyeon Jeong, Samsung Life Wrestling Team
Jeong-eun Park, Samsung Life Women’s Basket Ball Team
Plateau, a cultural and resting space for the public
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.
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.
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.
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.
S p o r t s S p o n s o r s h i p a n d A r t s & C u l t u r e s
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 sport 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.
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.
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
forward, we remain committed to developing Korean table
tennis and cultivating excellent players at the professional
level.
Various cultures and elegant arts create
a pleasant atmosphere and enrich our lives.
We share the spirit of hope through
sports participation.
Se-hyeok Ju, Samsung Life Table Tennis Team
The annual art competition for youth
3 8 3 9
M a n a g e m e n t ’ s D i s c u s s i o n a n d A n a l y s i s
39 Overview of Financial Results
F i n a n c i a l S t a t e m e n t s
43 Balance Sheet
47 Income Statement
50 Statements of Appropriations of Retained Earnings
B u s i n e s s O v e r v i e w
51 Business Developments
52 Corporate Developments
O p e r a t i o n s O v e r v i e w
54 Operating Performance Review
57 Operation Results and Financial Condition of the Recent Three Years
58 Mergers and Acquisitions
58 Challenges
Co r p o r a t e G o v e r n a n c e
59 Major Shareholders
59 Board of Directors and Audit Committee
A u d i t R e p o r t s
60 Audit Committee’s Audit Report
61 Report of Independent Auditors
M a n a g e m e n t ’ s D i s c u s s i o n a n d A n a l y s i s
Overview of Financial Results
Ⅰ. Largest Net Profit, Strong Growth in Assets, Capital, and EV
Unit : KRW billions
FY2010 FY2009 YoY
I/S Summary
Premium Income (excluding Corporate Pension)
18,787 17,913 4.9%
APE 3,526 3,659 – 3.6%
Net Profit 1,925 906 112.4%
B/S Summary
Total Assets 146,354 133,045 10.0%
Invested Assets * 118,656 107,229 10.7%
Shareholders' Equity 15,390 12,133 26.8%
RBC Ratio 332% 280% 52%p
EV Summary
Embedded Value 21,325 17,599 21.2%
Value of New Business 1,021 1,074 – 5.0%
New Business Margin 29.0% 29.2% – 0.2%p
* General Account Assets only. Excludes Separate Account Assets (21.5 trn) and Unamortized Deferred Acquisition Expense (3.8 trn).
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.
Financial Report
4 0 4 1
Annual Persistency Rate
77.8%
60.8%
81.8%
62.5%
FY2010FY2009
81.3%
60.8%
81.4%
61.2%
81.9%
63.4%
82.4%
64.8%
2Q10 3Q10 4Q101Q10
FY10 Persistency Rate by Quarter
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.
Operating Expense Ratio
15.3
%
15.2
%
FY2010FY2009
Loss Ratio
85.3
%
84.3
%
FY2010FY2009
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.
ROE
9.3%
15.3
%
14.0
%
23.2
%
FY2010FY2009
Net Profit
906
1,92
5
FY2010FY2009
Unit : KRW billions
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%.
APE
3,65
9
3,52
6
FY2010FY2009
Unit : KRW billions
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.
4Q APE Over 1~3Q Average
Annuity
Savings
Protection
Ⅱ. 4Q APE, Up 23% Over 1~3Q Average Ⅳ. Continued Improvement in Expense and Claims Management
Ⅲ. Net Profit Up 112% due to Stable Insurance Profit and One-offs Ⅴ. Continued Persistency Improvement through Emphasis on Sales Efficiency
ROE
Operating ROE
13th
25th
13th
25th
833
1,02
7
FY10 4Q(Avg.)FY10 1Q~3Q(Avg.)
Unit : KRW billions
4 2 4 3
F i n a n c i a l S t a t e m e n t
Balance Sheets
Samsung Life Insurance Unit : KRW
Account FY2010 FY2009
Assets
Ⅰ. Cash and deposits 4,466,756,254,342 3,544,742,015,942
1. Cash and deposits 933,996,509,519 1,499,389,185,167
Cash 226,295,200 272,810,319
Checking accounts 5,351,887,421 4,330,041,065
Savings accounts 193,094,726,668 216,620,561,413
Overseas savings accounts 7,863,110,940 8,936,410,325
Term deposits 257,979,000,000 825,670,505,056
Other bank deposits 469,481,489,290 443,558,856,989
Other deposits - -
2. Deposits 3,532,759,744,823 2,045,352,830,775
Term deposits 3,511,809,600,000 1,618,780,338,301
Other bank deposits 20,045,555,371 421,729,919,208
Deposits in future margin accounts 904,589,452 4,842,573,266
Other deposits - -
Ⅱ. Securities 84,790,273,347,545 74,086,845,239,422
1. Trading Securities 706,611,367,813 379,014,500,423
Government and public bonds 101,252,155,600 92,949,595,800
Special bonds 209,595,993,900 51,622,642,800
Financial bonds 50,314,012,100 -
Corporate bonds 94,395,111,080 -
Income securities 11,939,027,433 203,554,459,823
International securities - 30,887,802,000
Other securities 239,115,067,700 -
2. Available-for-sale securities 80,909,444,533,295 69,930,601,740,977
Equities 13,453,414,164,505 11,482,278,079,732
Investment in other companies - -
Government and public bonds 27,041,575,364,745 21,341,331,061,257
Special bonds 20,284,043,356,496 15,644,356,211,606
Financial bonds 1,883,952,935,338 1,922,394,553,288
Corporate bonds 3,016,643,847,358 2,735,266,572,494
Income securities 2,698,512,937,851 3,407,862,661,460
Investment Yield
5.5% 6.
2% 6.4%
7.4%
FY2010FY2009
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%.
Total Assets & Invested Assets RBC ratio
280%
332%
FY2010FY2009
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.
Ⅵ. Continued Growth in Invested Assets & Capital Position
Investment Portfolio Composition
Total Assets
Invested Assets
Bonds 56%
Loans 20%
Stocks 13%
Investment Properties 4%
Beneficiary Certificates 3%
Cash and Deposits 4%
Investment Yield
Adjusted Investment Yield
Ⅶ. Continued Asset Liability Matching Strategy; Improved Investment Yield
FY 2010 : The year ended March 31, 2011
FY 2009 : The year ended March 31, 2010133
107
146
119
FY2010FY2009
Unit : KRW billion
4 4 4 5
Account FY2010 FY2009
International securities 12,296,012,129,916 12,512,666,001,950
Other securities 235,289,797,086 884,446,599,190
3. Held-to-maturity securities 1,228,480,500,374 2,261,192,703,611
Government and public bonds 1,088,482,675,928 2,061,113,484,633
Special bonds 139,997,824,446 200,079,218,978
4. Equity-method investment securities 1,945,736,946,063 1,516,036,294,411
Equities 1,762,340,470,056 1,350,458,811,800
Investment in affiliates 57,925,034,490 39,626,364,901
Non-listed international equities 102,849,396,576 98,655,664,516
Other securities 22,622,044,941 27,295,453,194
Ⅲ. Loans 24,200,854,920,562 24,530,227,455,000
(Reserves for doubtful accounts) (256,034,593,619) (708,116,775,655)
(Additional income in deferred loans) 5,816,364,090 1,629,536,732
1. Call loans 13,720,000,000 26,604,000,000
2. Policy loans 12,503,049,249,880 12,020,428,123,888
3. Loans secured by securities 20,179,000,000 20,000,000,000
4. Loans secured by real estate 7,371,377,965,506 7,941,726,462,354
5. Unsecured loans 3,803,474,861,567 3,981,700,728,234
6. Loans secured by third party guarantee 88,243,716,292 84,520,189,725
7. Other loans 651,028,356,846 1,161,735,189,722
Ⅳ. Investment Properties 719,899,664,658 725,924,183,331
1. Land 431,155,437,638 435,501,737,015
2. Buildings 322,442,636,687 285,283,144,228 319,535,204,683 289,598,246,752
(Accumulated depreciation) (37,159,492,459) (29,936,957,931)
3. Other structures 940,924,690 136,374,766 1,236,494,590 99,968,213
(Accumulated depreciation) (804,549,924) (1,136,526,377)
4. Assets under construction 3,324,708,026 724,231,351
Ⅴ. Tangible assets 4,541,708,645,641 4,397,673,296,098
1. Land 1,625,148,146,963 1,556,302,717,769
2. Buildings 3,533,741,213,557 2,705,419,822,210 3,396,363,180,451 2,633,937,356,171
(Accumulated depreciation) (828,321,391,347) (762,425,824,280)
3. Structures 47,167,077,222 7,910,100,972 48,156,503,054 9,157,641,492
(Accumulated depreciation) (39,256,976,250) (38,998,861,562)
4. Assets under construction 139,670,931,409 141,391,162,412
5. Vehicles and transportation equipment 6,596,135,770 3,331,661,028 5,130,966,264 3,183,311,776
(Accumulated depreciation) (3,264,474,742) (1,947,654,488)
6. Tools and equipment 386,289,301,157 51,364,801,162 393,431,884,577 45,144,595,981
Account FY2010 FY2009
(Accumulated depreciation) (334,924,499,995) (348,287,288,596)
7. Other tangible assets 8,863,181,897 8,556,510,497
Ⅵ. Other assets 6,167,174,691,027 6,223,279,874,714
1. Insurance receivables 53,208,013,263 53,123,211,661 57,463,748,152 57,411,731,995
Reserves for doubtful accounts (84,801,602) (52,016,157)
2. Other receivables 130,882,608,729 84,367,182,007 65,555,918,249 57,943,704,758
Reserves for doubtful accounts (46,515,426,722) (7,612,213,491)
3. Leasehold and other deposits 179,755,827,986 170,918,730,205
4. Accrued income 1,435,310,160,556 1,433,814,727,254 1,548,142,290,756 1,507,833,541,202
Reserves for doubtful accounts (1,495,433,302) (40,308,749,554)
5. Prepaid expenses 13,584,699,011 16,684,697,129
6. Prepaid income taxes 17,858,445,588
7. Advanced payments 1,521,483,061 1,870,973,592
8. Deferred acquisition cost 3,849,666,862,579 3,907,108,534,897
9. Financial derivatives assets 420,347,977,044 373,724,628,807
10. Intangible assets 105,542,720,424 86,415,886,541
Development cost 75,860,071,637 60,647,266,222
Software 27,754,564,843 23,447,429,326
Other intangible assets 1,928,083,944 2,321,190,993
11. Other assets 25,450,000,000 25,509,000,000
Ⅶ. Special account assets 21,466,951,335,493 19,536,380,885,879
Total assets 146,353,618,859,268 133,045,072,950,386
Liabilities and shareholders’ equity
Ⅰ. Policy reserves 99,133,436,390,357 92,024,917,919,895
(Reserve adjustment account for reinsurance ceded) (13,412,945,946) (14,434,527,253)
1. Premium reserves 94,794,270,031,756 88,118,767,795,089
2. Unearned premium reserves 17,300,821,105 21,598,158,216
3. Reserves for outstanding claims 572,473,506,573 331,243,803,437
Guaranteed minimum accumulation benefits 137,011,136,061 92,172,414,126
Guaranteed minimum death benefits 103,421,169,740 17,096,226,303
Others 332,041,200,772 221,975,163,008
4. Reserves for benefit payments 2,190,318,714,782 2,186,938,476,677
5. Reserves for participating policyholder dividends 1,419,567,568,775 1,335,451,108,499
Interest rate difference guarantee reserves 215,917,680,811 230,914,121,097
Mortality gains reserve 480,689,954,270 484,045,430,875
Interest gains reserve 440,512,447,059 329,369,723,114
Unit : KRW Unit : KRW
4 6 4 7
Income Statements
Samsung Life Insurance Unit : KRW
Account FY2010 FY2009
Ⅰ. Operating revenue 26,177,817,021,593 25,695,232,613,808
1. Premium income 14,589,412,645,073 14,514,661,423,051
Individual premium 14,119,956,851,444 14,024,401,808,069
Group premium 469,455,793,629 490,259,614,982
2. Reinsurance income 261,260,142,890 259,984,545,528
Assumed reinsurance premium 13,938,157,498 16,385,821,362
Ceded reinsurance claims recovered 201,237,135,689 198,826,267,499
Ceded Reinsurance Experience Refund 46,084,849,703 44,772,456,667
3. Interest income 5,069,741,032,484 4,929,102,366,246
Interest on bank deposits 138,367,580,265 161,894,927,761
Interest on trading securities 13,357,563,583 9,366,126,805
Interest on available-for-sale securities 2,978,159,697,875 2,677,061,941,202
Interest on held-to-maturity securities 109,274,487,896 156,916,633,191
Interest on loans 1,811,354,683,741 1,903,369,103,714
Interest on other deposits 286,398,257 799,826,871
Other interest income 18,940,620,867 19,693,806,702
Account FY2010 FY2009
Expense gains reserve 273,419,679,491 280,626,753,361
Long-term duration dividend reserves 8,737,801,405 10,169,626,067
Reserves for asset revaluation 290,005,739 325,453,985
6. Excess participating policyholder dividend reserves 146,559,763,161 38,501,692,780
7. Reserves for assumed reinsurance premium 6,358,930,151 6,851,412,450
Ⅱ. Policyholders’ equity adjustment 5,213,858,993,823 4,739,854,792,927
1. Reserves for policyholder dividend stabilization 113,824,607,586 113,824,607,586
2. Fund for public projects 44,000,060,898 44,000,060,898
3. Gains (losses) on valuation of available-for-sale securities 4,973,127,015,504 4,533,084,906,397
4. Gains (losses) on valuation of held-to-maturity securities 1,731,988,326 2,304,858,186
5. Gains (losses) on valuation of equity-method investment 81,175,321,509 46,640,359,860
Ⅲ. Other liabilities 4,972,055,704,410 4,510,073,140,217
1. Unpaid claims 9,561,617,396 12,717,271,985
2. Other accounts payable 55,820,255,663 97,014,254,436
3. Accrued expenses 468,932,467,216 379,097,935,906
4. Accrued income taxes 146,709,613,670
5. Advance receipt 61,880,800 596,984,100
6. Unearned revenue 1,403,201,152 431,286,484
7. Withholdings 32,631,031,484 31,798,891,779
8. Accrued VAT
9. Unearned insurance premium 172,735,531,403 93,275,155,168
10. Leasehold deposits received 456,715,909,323 443,256,912,991
11. Reserves for severance benefits 250,222,339,000 56,210,754,322 230,206,920,310 45,377,390,848
(National Pension Fund Payment) (1,409,089,238) (1,663,537,538)
(Corporate pension plan asset) (192,602,495,440) (183,165,991,924)
12. Deferred income tax credits 2,337,803,839,333 1,768,382,853,584
13. Financial derivatives liabilities 1,140,828,843,314 1,539,917,967,556
14. Other trust accounts payable 3,336,856,853 607,522,433
15. Other liabilities 89,303,902,481 97,598,712,947
Ⅳ. Separate account liabilities 21,644,287,347,190 19,637,406,624,404
Total liabilities 130,963,638,435,780 120,912,252,477,443
Ⅰ. Capital stock 100,000,000,000 100,000,000,000
1. Common stocks 100,000,000,000 100,000,000,000
Ⅱ. Capital surplus 6,131,429,078 6,131,429,078
1. Asset revaluation reserves 6,131,429,078 6,131,429,078
Ⅲ. Capital adjustment 13,493,452,365 0
Account FY2010 FY2009
1. Other capital adjustment 13,493,452,365 0
Ⅳ. Accumulated other comprehensive income 7,461,164,091,242 5,948,767,137,032
1. Gains (losses) on valuation of available-for-sale securities 8,203,393,094,668 7,041,126,770,664
2. Gains (losses) on valuation of held-to-maturity securities 2,861,814,883 3,599,114,252
3. Gains (losses) on valuation of equity-method investment 135,884,217,436 74,648,216,540
4. Gains (losses) on valuation of derivatives (908,290,985,249) (1,193,949,259,896)
5. Separate account capital adjustment 27,315,949,504 23,342,295,472
Ⅴ. Retained earnings 7,809,191,450,803 6,077,921,906,833
1. Legal reserves 50,000,000,000 50,000,000,000
2. Other legal reserves 2,327,741,074 2,327,741,074
Reserves for business improvement 2,327,741,074 2,327,741,074
3. Unappropriated retained earnings 7,756,863,709,729 6,025,594,165,759
(Net income) (1,924,853,105,490) (906,095,135,663)
Total shareholders’ equity 15,389,980,423,488 12,132,820,472,943
Total liabilities and shareholders’ equity 146,353,618,859,268 133,045,072,950,386
FY 2010 April 1 – March 31, 2011
FY 2009 April 1 – March 31, 2010
Unit : KRW Unit : KRW
4 8 4 9
Account FY2010 FY2009
8. Gains (losses) in securities trading 51,069,550,502 209,579,406,821
Losses on valuation of trading securities 853,487,987 240,762,856
Losses on disposition of trading securities 2,550,529,961 953,306,869
Losses on disposition of available-for-sale securities 34,670,502,956 166,565,207,532
Impairment loss on available-for-sale securities 12,995,029,598 41,820,129,564
9. Losses on valuation and disposition of loans 520,749,528
Bad debt expenses
Losses on sale of loans 520,749,528
10. Losses on foreign currency trading 54,736,484,581 373,058,921,042
Losses on foreign currency translation 11,336,969,928 118,821,473,393
Losses on foreign currency transaction 43,399,514,653 254,237,447,649
11. Amortization expenses of intangible assets 33,474,953,071 18,855,064,605
12. Discount expenses 3,100,980,644 1,151,422,124
13. Separate account expense 3,179,885,849,390 3,759,799,223,706
14. Amortization expenses of real estate 52,572,138,197 54,951,763,398
15. Other operating expenses 260,235,687,795 443,802,757,305
Losses on disposition of derivatives 193,870,709,934 346,455,911,992
Losses on valuation of derivatives 12,586,364,503 38,821,412,044
Other bad debt expenses 555,054,749 718,841,461
Other operating expenses 53,223,558,609 57,806,591,808
Ⅲ. Operating income 1,947,198,409,240 848,748,759,940
Ⅳ. Non-operating income 775,557,702,084 430,576,583,336
1. Gains on valuation of equity method 322,270,249,946 236,264,225,515
2. Gains on disposition of equity-method investments 340,273,570 -
3. Gains on disposition of investment properties 1,324,597,568 82,334,903,270
4. Gains on disposition of tangible assets 8,390,790,304 67,084,575,325
5. Miscellaneous non-operating income 443,231,790,696 44,892,879,226
Ⅴ. Non-operating expenses 113,115,130,005 110,407,375,895
1. Losses on valuation of equity method 9,216,930,672 6,542,736,467
2. Losses on disposition of equity-method investments 4,969,617,183
3. Losses on disposition of investment properties 13,947,940,572
4. Losses on disposition of tangible assets 4,265,704,634 19,492,398,471
5. Donations 76,604,985,083 32,379,417,038
6. Miscellaneous losses 23,027,509,616 33,075,266,164
Ⅵ. Net income before income taxes 2,609,640,981,319 1,168,917,967,381
Ⅶ. Income taxes expenses 684,787,875,829 262,822,831,718
Ⅷ. Net income 1,924,853,105,490 906,095,135,663
Account FY2010 FY2009
4. Gains on securities trading 1,092,471,480,326 353,266,981,149
Gains on valuation of trading securities 435,468,980 5,385,352,659
Gains on disposition of trading securities 15,196,658,953 9,875,528,123
Gains on disposition of available-for-sale securities 1,076,839,352,393 293,168,174,740
Restoration of available-for-sale securities 44,837,925,627
5. Gains on valuation and disposition of loans 464,358,781,054 9,279,468,842
Transfer from allowance for credit losses 464,358,781,054 9,279,468,842
6. Gains on foreign currency trading 154,125,352,053 238,226,524,186
Gains on foreign currency translation 2,524,365,894 97,697
Gains on foreign currency transaction 151,600,986,159 238,226,426,489
7. Commission income 50,451,892,676 47,608,594,860
8. Dividend income 191,680,695,533 160,560,916,989
9. Rental income 255,064,717,746 211,273,492,446
10. Separate account commission received 633,214,740,452 541,597,967,544
11. Separate account income 3,179,885,849,390 3,759,799,223,706
12. Trust account income 1,191,169,675 426,875,187
13. Other operating income 234,958,522,241 669,444,234,074
Gains on disposition of derivatives 95,245,897,537 414,662,122,979
Gains on valuation of derivatives 79,486,617,805 225,124,804,197
Other operating income 60,226,006,899 29,657,306,898
Ⅱ. Operating expenses 24,230,618,612,353 24,846,483,853,868
1. Increase in policy reserves 7,009,440,905,400 4,485,012,224,692
2. Claim paid 9,505,249,576,570 11,585,814,898,277
Benefit payments 1,655,022,315,195 1,319,641,431,025
Refund 7,736,204,826,349 10,136,392,659,835
Dividend expenses 114,022,435,026 129,780,807,417
3. Reinsurance expenses 283,057,288,015 280,713,238,080
Ceded reinsurance premium 269,763,561,556 269,084,278,753
Assumed reinsurance claims 10,675,320,568 7,775,758,318
Assumed reinsurance experience refund 2,618,405,891 3,853,201,009
4. Operating expenses 1,531,797,214,422 1,339,510,086,007
(Deferred acquisition expenses) (1,799,029,735,360) (1,890,722,523,388)
Acquisition expenses 1,807,685,076,565 1,930,792,004,656
Administration expenses 1,523,141,873,217 1,299,440,604,739
5. Amortization of deferred acquisition cost 1,856,471,407,678 1,903,278,320,419
6. Property administrative expenses 394,682,406,775 377,481,447,572
7. Interest expenses 14,323,419,785 13,475,079,820
Unit : KRW Unit : KRW
5 0 5 1
B u s i n e s s O v e r v i e w
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.
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
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.
Statements of Appropriations of Retained Earnings
Samsung Life Insurance Unit : KRW
Account FY2010 FY2009
Ⅰ. Retained earnings before appropriations 7,756,863,709,729 6,025,594,165,759
1. Unappropriated retained earnings carried forward from prior years
5,800,594,165,759 5,119,499,030,096
2. Cumulative Effect of the Equity Method 31,416,438,480 0
3. Net income 1,924,853,105,490 906,095,135,663
Ⅱ. Appropriations of retained earnings 400,000,000,000 225,000,000,000
1. Dividends
Cash dividends 400,000,000,000 225,000,000,000
(Dividend rate as of Par Value) (400%) (225%)
Ⅲ. Unappropriated retained earnings carried over to subsequent year
7,356,863,709,729 5,800,594,165,759
Expected date of appropriation in FY 2010 June 3
Settlement date of appropriation in FY 2009 June 1
5 2 5 3
Ⅴ. Shares 1. Types and Numbers of Shares Issued Unit: KRW
Type The volume of stocks Amount Proportion (percent) Remark
Registered common shares 200,000,000 100,000,000,000 100% -
2. Changes in Capital Stock Unit: KRW
Date Type The volume
of stocksChange in the
Shareholders’ Equity Total Shareholders’
EquityDetail
’63. 1. 28 Registered common shares 50,000 25,000,000 50,000,000 Capitalization of revaluation reserves
’71. 4. 26 Registered common shares 300,000 150,000,000 200,000,000 Capital increase with consideration
’77. 9. 23 Registered common shares 600,000 300,000,000 500,000,000 Capital increase with consideration
’79. 9. 17 Registered common shares 1,000,000 500,000,000 1,000,000,000 Capital increase with consideration
’83. 12. 30 Registered common shares 4,000,000 2,000,000,000 3,000,000,000 Capitalization of revaluation reserves
’86. 12. 14 Registered common shares (600,000) 3,000,000,000 Stock consolidation
’88. 9. 24 Registered common shares 600,000 3,000,000,000 6,000,000,000 Capital increase with consideration
’90. 12. 11 Registered common shares 3,600,000 18,000,000,000 24,000,000,000 Capitalization of revaluation reserves
’90. 12. 26 Registered common shares 13,920,000 69,600,000,000 93,600,000,000 Capitalization of revaluation reserves
’99. 9. 15 Registered common shares 1,280,000 6,400,000,000 100,000,000,000 Capital increase with consideration
’10. 2. 22 Registered common shares 180,000,000 100,000,000,000 Stock split
Ⅵ. Shareholders’ Meetings The 54th Annual Shareholders’ Meeting
Time : Tuesday, June 1, 2010 at 9:00 a.m.
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
Corporate Developments
Ⅰ. Purposes of the Company1. 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
Ⅱ. Important Business IssuesSee the Business Developments Section
Ⅲ. Regional Centers and Branch Offices
Classification Seoul Busan Daegu Incheon Gwangju Daejeon Ulsan Gyeonggi
Regional Centers 25 8 7 5 5 5 2 15
Branch Offices 228 66 48 39 30 24 20 146
Total 253 74 55 44 35 29 22 161
Gangwon North
ChungcheongSouth
ChungcheongNorth Jeolla South Jeolla
North Gyeongsang
South Gyengsang
Jeju Total
2 2 2 3 3 3 5 1 93
22 26 28 29 29 33 47 12 827
24 28 30 32 32 36 52 13 920
* The Head Office is classified as one of the regional centers in Seoul
Ⅳ. Sales Agencies
Classification Seoul Busan Daegu Incheon Gwangju Daejeon Ulsan Gyeonggi
Regional Centers 926 45 26 25 11 0 0 0
Branch Offices 575 77 85 46 25 80 19 189
Total 1,501 122 111 71 36 80 19 189
GangwonNorth
ChungcheongSouth
ChungcheongNorth Jeolla South Jeolla
North Gyeongsang
South Gyengsang
Jeju Total
1 0 19 12 4 0 0 0 1,069
24 46 45 24 18 40 44 6 1,343
25 46 64 36 22 40 44 6 2,412
5 4 5 5
Ⅱ. Assets Unit : KRW in millions
Classification Fiscal Year Change
2010 (As of Mar. 31, 2011) 2009 (As of Mar. 31, 2010) Amount Proportion (percent)
Cash and deposits 4,466,756 3,544,742 922,014 26,0
Securities 84,790,273 74,086,845 10,703,428 14.4
Loans 24,200,855 24,530,227 – 329,372 –1.3
Real estate 719,900 725,924 – 6,024 – 0.8
Tangible assets 4,541,709 4,397,673 144,036 3.3
Other assets 6,167,175 6,223,281 – 56,106 – 0.9
Special account assets 21,466,951 19,536,381 1,930,570 9.9
Total assets 146,353,619 133,045,073 13,308,546 10.0
Ⅲ. Revenues and Expenses Unit : KRW in millions
Classification Fiscal Year Change
2010 (As of Mar. 31, 2011) 2009 (As of Mar. 31, 2010) Amount Proportion (percent)
Operating revenues
Insurance business income 14,850,673 14,774,646 76,027 0.5
Investment business income 8,147,258 7,160,788 986,470 13.8
Separate account income 3,179,886 3,759,799 – 579,913 –15.4
Sub Total 26,177,817 25,695,233 482,584 1.9
Operating expenses
Insurance business expenses 13,179,677 15,110,468 –1,930,791 –12.8
Investment business expenses 7,871,056 5,976,217 1,894,839 31.7
Separate account expenses 3,179,886 3,759,799 – 579,913 –15.4
Sub Total 24,230,619 24,846,484 – 615,865 – 2.5
Operating income 1,947,198 848,749 1,098,449 129.4
Non-operating income 775,558 430,576 344,982 80.1
Non-operating expenses 113,115 110,407 2,708 2.5
Net income before income taxes 2,609,641 1,168,918 1,440,723 123.3
O p e r a t i o n s O v e r v i e w
Operating Performance Review
Ⅰ. Insurance Contracts and Workforce 1. Insurance Contracts
ClassificationFiscal Year
Change 2010 (April 1, 2010 ~ March 31, 2011) 2009 (April 1, 2009 ~ March 31, 2010)
New Contracts
Individual 67,046,816 69,634,343 – 2,587,527
Group 8,913,564 8,356,934 556,630
Retirement 922,738 1,518,450 – 595,712
Total 76,883,118 79,509,727 – 2,626,609
Policies in force
Individual 485,985,698 468,298,936 17,686,762
Group 24,463,585 22,993,162 1,470,423
Retirement 7,757,428 8,642,895 – 885,468
Total 518,206,711 499,934,993 18,271,717
2. Workforce
Classification Fiscal Year
Change2010 (As of Mar. 31, 2011) 2009 (As of Mar. 31, 2010)
Financial Consultants (FCs)
Male 6,578 9,621 – 3,034
Female 27,779 34,423 – 6,644
Total 34,366 44,044 – 9,678
Other employees
Male 3,046 3,148 – 102
Female 2,834 3,150 – 316
Total 5,880 6,298 – 418
5 6 5 7
Operation Results and Financial Condition of the Recent Three Years
Ⅰ. Operation ResultsSummarized Income Statements Unit : KRW in millions
Subsidiary FY2010 FY2009 FY2008
Operating revenue 26,177,817 25,695,233 25,288,687
Operating expenses 24,230,619 24,846,484 25,160,845
Operating income 1,947,198 848,749 127,842
Non-operating revenue 775,558 430,576 301,817
Non-operating expenses 113,115 110,407 210,384
Net income before income taxes 2,609,641 1,168,918 219,275
Income tax expenses 684,788 262,823 106,248
Net income 1,924,853 906,095 113,027
Ⅱ. Financial ConditionSummarized Balance Sheets Unit : KRW in millions
Account FY2010 FY2009 FY2008
Cash and deposits 4,466,756 3,544,742 5,387,982
Securities 84,790,273 74,086,845 64,444,683
Loans 24,200,855 24,530,227 24,522,863
Investment properties 719,900 725,924 817,570
Tangible assets 4,541,709 4,397,673 3,922,724
Other assets 6,167,175 6,223,281 6,040,482
Special account assets 21,466,951 19,536,381 16,531,174
Total assets 146,353,619 133,045,073 121,667,478
Policy reserves 99,133,436 92,024,918 87,486,909
Policyholders’ equity adjustment 5,213,859 4,739,855 3,589,105
Other liabilities 4,972,057 4,510,073 6,515,042
Separate account liabilities 21,644,287 19,637,407 16,645,905
Total liabilities 130,963,639 120,912,253 114,236,961
Capital stock 100,000 100,000 100,000
Capital surplus 6,131 6,131 93,889
Capital adjustment 13,493 - -
Accumulated other comprehensive income 7,461,164 5,948,767 2,024,801
Retained earnings 7,809,192 6,077,922 5,211,827
Total shareholders’ equity 15,389,980 12,132,820 7,430,517
Total liabilities and shareholders’ equity 146,353,619 133,045,073 121,667,478
Ⅳ. Business Performance 1. Life Insurance Company’s Business Performance Table (I) : Insurance Unit : KRW in millions
Classification Individual products Group products Retirement products Total
Contract Amount Contract Amount Contract Amount Contract Amount
Beginning balance 15,873,585 468,298,936 1,504,375 22,993,162 1,061,946 8,642,896 18,439,906 499,934,994
Increase
New contracts 1,174,864 67,046,816 1,048,712 8,913,564 277,537 922,738 2,501,113 76,883,118
New contract rate - 14.3% - 38.8% - 10.7% - 15.4%
Reactivation 36,911 1,429,967 2,887 88,620 - - 39,798 1,518,587
Other 53,584 3,461,528 901 15,928 64,003 2,824,010 118,488 6,301,466
Sub Total 1,265,359 71,938,311 1,052,500 9,018,112 341,540 3,746,748 2,659,399 84,703,171
Decrease
Death 17,797 393,829 734 11,764 - - 18,531 405,593
Injury 319 9,570 26 613 - - 345 10,183
Maturity 230,660 2,645,690 586,823 2,719,024 - - 817,483 5,364,714
Retirement - - 52 41 75,992 1,766,580 76,044 1,766,621
Termination 753,599 27,436,205 246,512 3,378,338 273,386 2,243,174 1,273,497 33,057,717
Lapse 382,112 19,140,639 53,832 1,371,027 - - 435,944 20,511,666
Other 65,507 4,625,616 3,625 66,882 76,915 622,462 146,047 5,314,960
Sub Total 1,449,994 54,251,549 891,604 7,547,689 426,293 4,632,216 2,767,891 66,431,454
Ending balance 15,688,950 485,985,698 1,665,271 24,463,585 977,193 7,757,428 18,331,414 518,206,711
Net change –184,635 17,686,762 160,896 1,470,423 – 84,753 – 885,468 –108,492 18,271,717
2. Life Insurance Company’s Business Performance Table (II) : Asset Management Unit : KRW in millions
Asset under management Income/ExpensesGross Yield
Net Investment YieldBeginning Ending Change Income Expenses
107,228,528 118,655,933 11,427,405 7,817,716 835,374 7.17% 6.38%
5 8 5 9
Mergers and Acquisitions
Ⅰ. Parent CompanyNot applicable
Ⅱ. Subsidiaries
Subsidiary Relations
Name Location Capital Business type Number of shares owned Ownership stake (percent) Business relations
Samsung Life Investment (U.K.) Ltd.
London GBP 10 millionSecurities investment
10,000,000 100.0%Contracted to manageSamsung Life’s investment funds
Samsung Life Investment (America) Ltd.
New York $12 million USDSecurities investment
1,200 100.0%Contracted to manageSamsung Life’sinvestment funds
Samsung PropertiesChina, Ltd.
Hong Kong $40 million USDReal estate investmentand leasing
400,000 100.0% None
Ⅲ. Interlocking Directorates in Subsidiaries Not applicable
Challenges
See the ‘Business Developments’ section
Co r p o r a t e G o v e r n a n c e
Major Shareholders
Shareholders name Share owned Ownership Transaction with Samsung Life
Kun-hee Lee 41,519,180 20.76% None
Samsung Everland Co., Ltd 38,688,000 19.34% None
Shinsegae Co., Ltd 22,144,000 11.07% None
Employee Stock Ownership Association 9,503,846 4.75% None
Samsung Foundation of Culture 9,360,000 4.68% None
Samsung Life Public Welfare Foundation 9,360,000 4.68% None
CJ Co., Ltd 6,394,340 3.20% None
CJ Cheiljedang 4,591,510 2.30% None
Woori Bank(Korea Investment Management Co., Ltd) 2,050,661 1.03% None
Board of Directors and Audit Committee
Category Name Position Duty Transaction with Samsung Life
Note
Standing
Soo-chang Lee President and Chief Executive Officer
Company-wide None
Sang-hang Kim President, Asset Management Division
Asset Management Division
None
Jong-yun Han Executive Vice PresidentCorporate product sales department head
None
Tae-gon Moon Standing AuditorA permanent audit committee member
NoneAudit committee member
Audit committeemember
Soo-woong Hwang director Nonexecutive None the Board of Director chair
Jong-nam Lee director Nonexecutive None the Audit Committee member
Yeong-jin Kim director Nonexecutive None
Keun-oak Lew director Nonexecutive None the Audit Committee chair
Jeong-dong Kim director Nonexecutive None
6 0 6 1
A u d i t R e p o r t s
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.
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 Sanction
Soo-chang Lee President
· 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
Light warning
Sang-yeol Kwon Vice President ·Engaging in prohibited activities related to insurance contracts ·Obstruction of inspection including failure to submit relevant materials
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
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.
We have conducted our audits in accordance with the auditing standards generally accepted in the Republic of Korea. Those
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 non-
consolidated 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.
Seoul, Korea
May 25, 2011
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.
6 2 6 3
Corporate History Global Network
Headquarters Europe Southeast Asia East Asia
United States
South Asia
1950 s
1957 Began operation as Dongbang Life Insurance
1960 s
1963 Became an affiliate of the Samsung Group
1966 Policies in force exceeded 20 billion won
1970 s 1976 Adopted an operational headquarters system
1980 s 1982 Established Dongbang Social Welfare Foundation (Currently
Samsung Life Public Service Foundation)
Organized a women's basketball team
1983 Organized a wrestling team
1984 Completed a new Head Office building
(currently Samsung Life Insurance headquarters)
1986 Opened the Tokyo and New York offices
1989 Renamed the company Samsung Life Insurance Co., Ltd.
Opened a London office
1990 s 1991 Began to offer child-care services
(Samsung Daycare Centers).
Now 23 centers are in operation nationwide.
1994 Opened Samsung Medical Center.
Monthly revenue exceeded one trillion won.
1995 Opened a Beijing office
Established the Samsung Life Public Contribution Team
1996 Opened the Institute of Social and Mental Health
1997 Launched Siam Samsung in Thailand as a joint venture
1999 Opened the Human Center (employee training facility)
2000 s
2000 Introduced “Bichumi” character and related catchphrases
2001 Opened Noble County
(retirement community)
Received Grand Prize in Corporate
Information Literacy Awards
2002 Announced the new vision of
“Emerge as a Global, Integrated Financial
Services Provider by 2010”
2003 Announced the Shared Values of Samsung
Life and Code of Conduct
Received a Presidential citation from Korea’s
Ministry of Women’s Affairs
Established an American office
Assets exceeded 80 trillion won
2004 Assets exceeded 90 trillion won
Declared the “Year of Customer Service”
Opened a Mumbai office
2005 Opened Samsung Air China Life Insurance as
a joint venture in Beijing
Became Korea’s first life insurer to receive a
“AAA” credit rating
2006 Announced the new corporate motto, “A Partner for Life”
Ranked 1st in number of MDRT members (2,649)
Launched Samsung Lifecare Research Center
Total assets exceeded 100 trillion won, a first in the
non-banking sector
2007 Launched the “Life Protection Awareness” campaign
Celebrated the 50th anniversary
2008 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
2009 Launched the “2009 Samsung Life Family Hope” campaign
Opened the W. Leadership Center
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
KOREASamsung Life Insurance Co.,Ltd.150, Taepyeong‐ro 2‐ga, Jung‐gu,
Seoul, Korea
T 82‐1588‐3114
USASamsung Life Investment (U.S.A) Ltd.
152 West 57th Street, 7th Floor,
New York, NY10019, U.S.A.
T 1‐212‐421‐6751
F 1‐212‐421‐4211
Samsung Life Insurance Co.,Ltd.New York Representative Office
85 Challenger Road, Ridgefield
Park, NY 07660, U.S.A.
T 1‐201‐229‐6030
F 1‐201‐229‐6024
Samsung Life Insurance Co.,Ltd.U.S. Representative Office (IRO)
152 West 57th street, 20th Floor,
New York, NY 10019, U.S.A
T 1‐212‐421‐2705
F 1‐212‐421‐2665
UNITED KINGDOMSamsung Life Investment (U.K) Ltd.
21st Floor, Tower 42,
Old Broad Street, London, EC2N
1HQ, United Kingdom
T 44‐20‐7786‐7811
F 44‐20‐7786‐7840
Samsung Life Insurance Co.,Ltd.London Representative Office
21st Floor, Tower 42,
Old Broad Street, London,
EC2N 1HQ, United Kingdom
T 44‐20‐7786‐7823
F 44‐20‐7786‐7807
INDIASamsung Life Insurance Co.,Ltd.Mumbai Representative Office
552. Solitaire Corporate Park,
Andheri Ghatkopar Link Road,
Chakala, Andheri (E) Mumbai
Maharastra 400093. India
T 91‐22‐2202‐2300
F 91‐22‐6143‐8383
THAILANDSiam Samsung Life Insurance Company
2922/240‐241 Charn Issara
Tower 2, 15th Floor.
New Petchburi Road, Bangkapi,
Huaykwang, Bangkok 10320
Thailand
T 662‐308‐2253
F 662‐308‐2269
VIETNAMSamsung Life Insurance Co.,Ltd.Hanoi Representative Office
Unit 805, HCO bldg., 44BLy
Thuong Kiet st., Hanoi, Vietnam
T 84‐4‐3936‐8855
F 84‐4‐3936‐9056
HONG KONGSamsung Asset Management (Asia) Ltd.
Suite 3306, Two Exchange
Square, 8 Connaught Place,
Central, Hong Kong
T 852‐2110‐8682
F 852‐2110‐4220
CHINASamsung Life Insurance Co.,Ltd.Beijing Representative Office
28th Floor, China Merchants
Tower, No.118, Jian Guo Lu,
Chao Yang Qu, Beijing 100022,
china
T 86‐10‐6566‐8100 (Ex)6100
F 86‐10‐6566‐8142
Samsung Air-China Life Insurance Co.,Ltd.
28th FIoor, China Merchants
Tower, No118, Jian Guo Lu, Chao
YangQu, Beijing 1000022, China
T 86‐10‐5820‐1881
F 86‐10‐5820‐1999
JAPANSamsung Life Insurance Co.,Ltd.Tokyo Representative Office
ROPPONGI T‐CUBE 3‐1‐1,
Roppongi, Minato–ku,
Tokyo 106‐8532, Japan
T 81‐3‐6234‐2219
F 81‐3‐6234‐2218
KOREA
THAILANDVIETNAM
CHINA JAPAN
HONG KONGINDIA
UNITED KINGDOM
USA