Annual Repor t 2006

LastingLove Forever...

CEO Greeting 04 Financial Highlights 08 Vision & Mission 09 Business & Products 12 Asset Management 14 Social Contribution 18

Table of Contents

� �We try to resemble the sky, filled with stories in its long years while maintainingits blue color remains unchanged. As we have always been with our customers over the past 50 years,

Samsung Life will continue planting unchanging hopes for the next 100 years.

Lasting...

Lasting

Culture & Sports 20 Global Network 24 Key Executives, Organization 28 History 30 Awards 31 Balance Sheet 32 Income Statement 34

Lasting Gratitude to You All

� �This year Samsung Life celebrates its 50th

anniversary. I express my deepestgratitude to our customers and shareholders for your lasting trust and

support towards the advancements of the company.

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Dear Customers and Shareholders,

With the lasting support and affection of our customers and shareholders Samsung Life brought

about significant achievements last year once again. The company recorded KRW 23.4 trillion in

revenue and KRW 514.6 billion in net income in the FY 2006. Thanks to our consistent customer-

serving management, we ranked first in the MDRT (Million Dollar Round Table) membership for two

consecutive years, and we also maintained our top position in the NCSI (National Customer

Satisfaction Index) evaluation for three consecutive years. I would like to emphasize again that the

progress we made last year was powered by the unwavering trust and support of our customers and

shareholders.

Dear Customers and Shareholders!

On May 5th

, 2007, Samsung Life celebrated its 50th

anniversary. Our proud history over the past 50

years is intertwined with the economic growth our country has achieved. Refusing to settle down as

the top domestic company Samsung Life announced a new vision upon reaching the 50-year

anniversary in an effort to become a company respected by its customers and the society, compete

with global insurers, and secure customers’ financial stability. We also set a mid-term goal of

achieving KRW 60 trillion in revenue, KRW 260 trillion in asset size, and ROE of 15% by 2015,

becoming a global leader by being among the global top 15. Being a company that sets right

principles and sticks to the fundamentals for a higher level of customer-service management, we

have also initiated the Way of Serving Customers.

Certainly, the business environment around life insurance industry has not been easygoing. National

borders have already disappeared in the capital market and the financial sector is no longer an

enclosed area. This has rendered meaningless the title of being the largest and most advanced

company in the domestic market. Nevertheless, the executives and employees of Samsung Life are

confident that we’ll prevail through such difficulties, powered by the confidence and support of our

customers and shareholders. We are improving the mid/long-term profit margin through Life

Insurance Awareness Campaign and have built an advanced risk management system. We are also

fostering talents for the global market and refining the corporate culture. We will seek innovation and

new challenges and thus overcome all the obstacles in our way to become a world leader.

Dear Customers and Shareholders!

With over 6,000 employees and 30,000 consultants, I will dedicate all my mind and strength to create

new history of Samsung Life, a company that maximizes shareholder value, while trusted and beloved

by its customers.

I ask for your lasting support and encouragement.

Thank you very much.

2006 An

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Gre

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Lee, Soo Chang, CEO and President

Samsung Life Insurance

Samsung Life stands beside customers with

lasting value

� �Asset size multiplied 1,200 times since the company’s establishment 50 years ago;

Reached KRW 108 trillion in assets with a remarkable growth rate;

Number one financial brand in the 2006 IPS Corporate Value Evaluation.

1995 20062000 2007

20 trillion

1990

10 trillion

50 trillion

108 trillion

108100 trillion

Asset Growth (KRW)

Financial Highlights (Unit: Million KRW)

Classification FY 2005 FY 2006

New Policies 99,180,076 74,710,822

In-Effect Policies 464,353,677 471,075,657

Total Liabilities 91,379,316 100,064,544

Total Shareholders’Equity 8,249,887 8,754,385

Total Assets 99,629,203 108,818,929

99,629,203108,818,929

Total Assets (Unit: Million KRW)

2005 2006

*MDRT (Million Dollar Round Table) : An association of insurance agents with a minimum annual premium income of KRW 160 million.

464,353,677471,075,657

In-Effect Policies (Unit: Million KRW)

2005 2006

626,248514,612

Net Income (Unit: Million KRW)

2005 2006

Thanks to Your Lasting Confidence in Us,

� �

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In FY 2006, Samsung Life recorded KRW 747,108 billion worth of new policies and KRW 471,075 billion worth

of in-effect policies. The number of policies reached was 17,590,000. With KRW 514 billion in net income and KRW 100,818 billion

in total assets, Samsung Life again strengthened its top position in the domestic arena. *Its MDRT membership, the parameter

of life insurers’human resources, is the world’s largest, and ranked 18th among insurers by the Fortune magazine.

VISION

To be Respected (Leadership)�Respected by customers for providing secure and advanced financial insurance solutions.

�Respected by the global insurance industry for building an effective and innovative management system.

�Respected by the financial market for creating shareholder value on a continuing basis

�Respected as the workplace of choice, by offering a clear and forward-looking vision for employees and creating a superiorworking environment.

World's Premier (Global)�To develop and maintain core competencies that meet global standards.

�To establish our status as a globally competitive insurer.

�To expand into new business areas targeting global markets.

Provider of Financial Freedom (Financial)�To safeguard customers against financial uncertainties by providing financial security and alleviating the uncertainties such as

- The uncertainty of securing a reliable source of funds to meet future financialneeeds

- The uncertainty of augmenting wealth on a stable footing

- The uncertainty of protecting life from possible accidents, and other risks in the future.

�To provide customers with financial freedom

2006 An

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To be Respected

World’sPremier

Provider ofFinancial Freedom

Lasting Dream for Tomorrow

� �Samsung Life has established the Way of Serving Customers

in order to practice the ultimate value of life insurance,

which is to guarantee customers’financial stability, as well as

to practice advanced customer-serving management.

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‘Management Framework Refinement’to become a global top-tier company

Samsung Life is in constant process of building and renovating its management

framework. As a result, we have successfully adopted a customer-oriented corporate

culture, and laid the foundation to become the most trustworthy company for customers.

Direction for 2015

In terms of growth, the 2015 goal of Samsung Life is to be among the global top 15 by

improving our corporate value. This will be achieved through securing a global premier

level of financial scale (revenue and assets), and ROE (efficient management system).

� �We will be like the sunflowers that dearly love the broiling sun in the midsummer.With the remarkable achievements resulting from our love for customers, Samsung Life

will bring about even greater satisfaction of our customers.

With Love...

With Love

Stepping ahead with love

� �Samsung Life is always ahead of others in customer satisfaction service.

Our services include high quality human resources, refined customized asset

management service, one on one consulting service for customers,

and Life Insurance Awareness Campaign with the promise of a happy family.

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464,353,677471,075,657

Unit: KRW Million

2005 2006

99,180,07674,710,822

New policies

2005 2006In-effect policies

Life Insurance Awareness Campaign

Samsung Life’s Life Insurance Awareness Campaign is designed to educate the public of the

ultimate value of life insurance. Samsung Life marked the 50-year anniversary in May 2007,

and the promotion one of many efforts to advance the life insurance industry.

Establishment of the Way of Serving Customers

Samsung Life’s customer-serving management is the company’s long tradition and the

management philosophy that will continue with the company, aspiring to write the 100 years of

history of customer service. Thus Samsung Life has established the way of serving customers

in order to put into practice a higher level of customer-serving management.

FP Center for comprehensive financial planning service

Samsung Life’s FP Center provides a more extensive and long-term asset management

services of Samsung Advisors with their best expertise and know-how, in not only insurance

but also in investment, inheritance, tax, and real estates.

Customer opinion reflected in business management

We are operating a Good Morning VOC system to hear our customers’ opinions and turn them

into managerial assets. We don’t just simply handle customer complaints, but now have a

system in place to reflect customers’ opinion in our business management decision making.

Life Power Planning program

Life Power Planning, only available at Samsung Life, is a comprehensive one on one financial

consulting service, offering constant support for customers in financial planning and executing

plans in line with the life cycle of one’s family in anticipation of changing future income and

spending, as well as possible illnesses and aging.

Keeping the top position in the corporate pension market

Samsung Life maintained its top position in the retirement pension market this year, with our

unmatched competencies in corporate pension consulting, differentiated customer service and

asset management capabilities, product development expertise, and independent computing

system.

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The total marketing brand Future 30+, unprecedented in the life insurance industry

In April 2007, Samsung Life acquired a patent for its coverage diagnosis system to

systematically analyze coverage assets and has developed Future 30+, the highest quality

coverage asset product brand, offering upgraded customer satisfaction products.

91100

Assets growth Unit: KRW Trillion

FY 2005 FY 2006

108

FY 2007

Today, becoming more abundant with love

� �Last year, Samsung Life, in addition to recording KRW 100 trillion in total assets,

was recognized as the number one brand in the financial sector, with KRW 3.9 trillion

in corporate brand value in the

IPS (the Institute for Industrial Policy Studies) Corporate Brand Value Evaluation.

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KRW 100 trillion in assets

In April 2006, Samsung Life became the first company outside of the banking sector to record a

monumental KRW 100 trillion in assets. Samsung Life will strive harder to maximize the

stability and the profitability of our asset management. We will regard the KRW 100 trillion

assets as not only our strengthened presence, but also a heavier responsibility laid on us

towards our customers and shareholders.

Precision asset-liability management techniques

Samsung Life’s SAA (Strategic Asset Allocation) is a long-term, macro level perspective based

plan, which is followed by TAA (Tactical Asset Allocation), flexibly reflecting the short-term

market conditions, while pursuing long-term, stable profit suitable for insurance assets

through ALM (Asset Liability Management).

Partnership with domestic/foreign investors contributing to national industrial

development

We provide services meeting customer needs with diverse and advanced financial techniques

including project financing for SOC and development projects, LBO* financing for corporate

M&A, construction financing for real estate development, ABS*, ABL*, and acquisition of

leasing bonds.

Risk management in asset management

Samsung Life sets policies, monitors and provides follow-up services by phase, in order to

manage possible risks throughout the asset management process, both in advance and

afterwards.

Faithful partner for life offering various loan products

Samsung Life is faithfully playing the role of a true partner for life and at the same time

securing longterm, stable income stream by offering diverse loan products designed to fit

different needs of customers, including long-term mortgage loans, loans secured by

commercial property and personal credit loans.

Financial IT infrastructure facilitating sophisticated & global asset management

Samsung Life provides various information customers need in a timely manner with its

comprehensive asset management control system that seamlessly manages all information

on asset transactions, holding, and evaluations.

Separate accounts for asset management for variable insurance, retirement

insurance/pension, and new pension for individuals

In managing customers’ retirement benefits through retirement insurance/pension products,

we are securing reliable income with bond-oriented portfolio for stable management and high

profitability of retirement benefits.

* LBO (Leveraged buyout):Buying a company mostly funded by loans

secured by the assets of the company to be

purchased.

* ABS (Asset-backed securities):A special purpose company (SPC) separates

assets from the owner, then securitizes and

sells the securities backed by the assets.

* ABL (Asset-backed loan):The SPC acquires loans from investors

instead of securitizing assets under the ABS

structure.

Total asset makeup (unit: %)

Domestic securities

Loans

Overseas securities

Separate accounts

Cash, deposits

Real estates

Other

4518

11

12 8 4 1

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Total 108,818,929(Unit: KRW Million)

For our customers, Samsung Life is working

even today with love

� �Future 30+, the total marketing brand for coverage assets, the first of its kind in the life insurance industry

Patented coverage diagnosis system for structured analysis of coverage assets

Comprehensive Life Plan Insurance, nation’s first custom-made product to fit individual customer’s conditions

� �Samsung Life sees social contribution as the third arm of business management and

actively participates in various social services and supports projects for women,

fishing and farming communities, conducts scholarship programs, disabled support programs,

medical services and child care services.

Love makes the world beautiful●

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Bichumi Volunteers Club

Samsung Life’s Bichumi Volunteers Club is systematically operating in 240 service teams of

about 6,000 employees and 30,000 consultants, making constant efforts to create a society

caring for isolated neighbors’.

Providing after-childbirth care for low-income mothers

Samsung Life provides trained after-childbirth caregivers free of charge to 3,000 low-income

family mothers every year, in an effort to offer financial and physical help to raise the

decreasing birth rate.

Support for women household heads to start own business

For low-income women, in charge of supporting their families due to death or disability of

husbands or divorce, Samsung Life offers KRW 15 million of seed money to start their own

businesses. The fund is a contribution by our consultants, and around 100 businesses have

been launched successfully so far.

Sisterhood relationship with fishing and farming communities

To support fishing and farming communities suffering from changes in economic environment

and exodus of people to cities, Samsung Life has forged sisterhood relationships with 120 rural

communities and supports rebuilding of these villages, offering helping hands in farming

seasons, purchasing farm/marine products, improving facilities, and supporting community

activities.

Support for college students’ voluntary service program

Samsung Life selects around 150 outstanding college student service groups each year, and

so far financed KRW 1,450 million to 1,726 programs from 202 universities in the past 12 years.

Other social contribution projects

For the first time in Korea, Samsung Life operates a school of lifeguard dogs and search dogs,

and donates the trained dogs to government institutions. We also sponsor physically

challenged athletes, including the national teams of disabled ski, archery, shooting, and

hockey.

Samsung Life Public Service Foundation

Samsung Life Public Service Foundation was established to carry out meaningful public

contributions from the company. The foundation sponsors Samsung Seoul Hospital in

providing the best quality medical service for public health, Samsung Childcare Center for

working parents and low-income families, Noble County, a quality silver town for the aging

population, Bichumi Women’s Award to recognize those devoted for women’s rights

improvement, and Community Mental Health Research Center to resolve social issues caused

by rapid industrialization.

2006 Social Projects (unit: KRW million)

Social welfare 29,163

Medical service 13,675

Culture and sports 12,536

Education 8,868

Total KRW 64 billion

2007 Social Projects (unit: KRW million)

Social welfare 20,274

Medical service 19,675

Culture and sports 19,400

Education 8,428

Total KRW 67 billion

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� �Significant results have been achieved in various areas from the Bichumi Drawing Festival,

a gateway for young painters, Rodin Gallery, a comprehensive culture hall,

Hoam Art Hall, incubating creative arts, and the ongoing activities of Samsung sports teams.

Love makes the joy of life blossom●

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Bichumi Drawing Festival

The festival began in 1981 as part of the culture and scholarship project for the children and

students all over Korea. The festival has become a gateway for talented students to be

recognized and motivated. More and more students and parents are participating every year.

Each year about 2,000 outstanding students are recognized and some are awarded

opportunities to visit European art galleries and participate in training programs.

Rodin Gallery, a space for diverse cultural activities

Since its opening in 1999, Rodin Gallery hosts various cultural events such as contemporary art

exhibitions and musical performances of prestigious artists from home and abroad.

Hoam Art Hall, home to classic music

As a strong supporter of Korean classic music and the incubator for creative arts from 1985,

Hoam Art Hall is staging classic music performances and dances. Since 2002, its management

has been delegated to CREDIA, a cultural service group.

Samsung Life Bichumi Women’s Basketball Team

Bichumi Women’s Basketball Team, established in 1977, has the proud history as an eight

time champion of the Korean Professional Basketball League, and is the first women’s

basketball team to record five championships. In 2003, the team recorded 15 consecutive

victories in a single season, and they will continue to return their fan’s support with

outstanding plays.

Samsung Life Wrestling Team

Since the team was launched in 1983, Jeong, Ji Hyeon won a gold medal and Moon, Eui Jae

won a silver medal in the 2004 Athens Olympics. In the 2006 Doha Asian Games, Baek, Jin Kuk

and Kim,Jung Sub won gold medals and Kim, Hyo Seop won a bronze medal, raising the status

of Korean wrestling in the world arena.

Samsung Life Table Tennis Team

Samsung Life Table Tennis Team is recording ongoing victories and enhancing the national

glory in sports events. In the 2004 Athens Olympics, Yoo, Seung Min won a gold medal in men’s

singles, and Lee, Eun Sil won a silver medal in women’s doubles. In the 2006 World

Championships, the team won the second prize in team competition for the first time, powered

by the outstanding play of Yoo, Seung Min and Joo, Se Hyeok.

Support for disabled sports teams

Samsung Life provides sports equipments for disabled athletes and supports disabled sports

teams to foster strategic sports, in order to bring hope and courage to the disabled and

promote their sports activities.

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� �We will be like the vast ocean, making a new promise at the end of the world.Samsung Life will venture into the bigger world for our customers,

for your lasting joy, happiness, and hope for the future.

Forever...

Forever

Secured foundations as a global premier company

Since entering Thailand in 1997, Samsung Life has established a

firm foundation in the local market. The joint venture in China

launched in 2005 has also taken root in the early stage, providing

the grounds to emerge as a global premier company.

Emerging market research and hiring/

fostering foreign experts

Samsung Life is pitching up its overseas business, opening

branches in the US, Japan, China, UK, and India for market

research and business preparation. In addition to hiring foreign

professionals to enhance global competence of our home business

we fostered around 400 global talents with MBA, local expert

knowledge, or overseas business experience.

Investment branches in New York and London

To strengthen our global asset management competences, we are

making direct investments through our local branches in New York,

London and other cities, as well as accumulating advanced

financial expertise.

� �Samsung Life is a world’s top-tier financial company

with a global presence of local investment branches in New York,

London and other cities. We also hold some 400 global talents,

including MBAs, local experts, and dispatched employees.

Hope that foreverlights up the world

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Samsung Air-China Life Insurance Company Beijing Representative Office

Tokyo Representative Office

Siam Samsung Life Insurance Company

India Representative Office

Samsung Life investment( U.K.)Ltd.London Representative Office

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Samsung Life Investment (U.S.A) Ltd. U.S. Representative Office New York Representative Office

Samsung Life will always be the number one

for customers.

� �World’s largest MDRT membership of 2,649, the measure of human resources of insurers

The nation’s largest asset management experts group of 530 Around 30,000 financial

consultants, differentiated by strict selection and systematic training programs

1,505 persons

2,098 persons

2,649 persons

2004

2005

2006

MDRT membership

2,649

� �Though we look different and come from different backgrounds,

our hearts are in unison in valuing customers’happiness as our top priority.

All of Samsung Life executives have gathered into a single-heart.

Forever single-hearted forour customers

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General Meeting of Shareholders

Board of Directors

President

Human ResourcesDivision

Product MarketingDivision

Audit

Internal Transaction Committee

Customer ServiceManagement Division

Bureau of BOD

Corporate Planning and BusinessAdministration Division

Chief of CorporatePlanning

Chief of BusinessAdministration in Finance

Risk ManagementCommittee

Evaluation & CompensationCommittee

Outside Director CandidatesRecommendation Committee

AuditCommittee

ManagementCommittee

Organization

Key executives

Park, Chun HyeonExecutive Vice President

Head of Corporate Planning and Business Administration Division

Cho, Moon SungExecutive Vice President

Head of Asset Management Division

Yoon, Jong ManManaging Director

Head of Human Resources Division

Kwak, Sang YongManaging Director

Chief of Corporate Planning

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Individual InsuranceBusiness Division

Strategic DistributionChannel Division

Group InsuranceBusiness Division

Asset ManagementDivision

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Kwon, Sang YeolExecutive Vice President

Head of Individual Insurance Business Division

Park, Sang HoExecutive Vice President

Head of Group Insurance Business Division

Park, Hyun MoonExecutive Vice President

Head of Product Marketing Division

Choi, Young JinStanding Auditor

Shin, Heung ChulManaging Director

Head of Legal Affairs

Han, Jong YunManaging Director

Chief of Business Administration in Finance

Ahn, Min SooManaging Director

Head of Asset Portfolio Management

Kang, Og GyuManaging Director

Head of the Joint Venture in China

Park, Won TaekManaging Director

Head of Group Insurance Section 1

Shim, Jae HoManaging Director

Head of Strategic Distribution Channels Division

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2007.05

2007.03

2007.01

2006.10

2006.06

2006.01

2005.12

2005.11

2005.07

2005.03

2004.12

2004.05

2003.07

2003.04

2003.01

2002.10

2002.02

2001.12

2001.11

2000.09

2000.08

2000.02

Celebration for the 50th year anniversary

Launched marketing brand, Future 30+

Life insurance Awareness Campaign launched

Samsung Lifecare Institute opened

Reached number 1 in the number of MDRT members (2,649)

‘A Partner for Life’ slogan announced

Rated ‘AAA’, unprecedented in the industry

Won the Korea Advertising Awards grand prize in the Korea

Advertising Congress (‘Life by the Road’)

Joint venture in China Junghang Samsung Insurance Company opened

Selected number 1 in the life insurance sector’s brand power

Selected number 1 in the NCSI from the life insurance industry

The Year of Customer Service announced

Presidential Award for the 8th Women’s Week

US office opened

Shared Value of Samsung Life announced

London office opened

2010’Global Comprehensive Financial Service Company’vision announced

5th Corporate IT Award Grand Prize

Bichumi Women’s Award launched

Ranked first in life insurance area of 2000 KCSI

Home delivery of insurance benefit service launched, unprecedented

in the industry

Bichumi character and slogan announced

1999.10

1999.05

1999.02

1998.11

1998.08

1997.11

1997.08

1996.10

1996.09

1995.04

1994.05

1993.12

1993.11

1991.02

1991.01

1989.07

1986.09

1984.10

1982.05

1963.07

1957.05

Ranked 13th in the world’s most respected life insurers by Fortune

Human Center training facility opened

Certified for comprehensive solution for Y2K, for the first time in Korea

Presidential Award for the 5th Corporate Innovation Award (KMA)

Acquired policies of Gukje Life

Joint venture life insurance company Siam Samsung in Thailand launched

Call center, first in domestic life insurance industry, opened

ISO 9002 certification, first in the financial industry

3rd Presidential Award for Corporate Culture

Beijing office opened

Insurance Quality Assurance System, first in the financial industry

New York investment office opened

Insurance Management Institute (current Financial Research Institute) opened

Samsung Life Insurance Service Co., Ltd. Established

London investment office opened

Renamed as Samsung Life Insurance Co., Ltd.

Tokyo office opened

Construction of the company head office began

Dongbang Social Welfare Foundation

(Current Samsung Life Public Service Foundation) established

Included as a subsidiary of Samsung Group

Dongbang Life Insurance established

History

� �In order to transform itself from the domestic number one company to a global

premier company, Samsung Life is building an innovative customer-centered

system and cultivating a future-oriented corporate culture. The world will soon

witness the remarkable advancements made by Samsung Life.

100 years of promise that shines forever

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Aw

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Awards in 2006 and 2007

2006 Ranked first in life insurance area of NCSI, for threeconsecutive years

National Customer Satisfaction Index

2006 FSC (Financial Supervisory Commission) Chairman’s Award ofHerald Business Insurance Award

Herald Business

2006 Forbes Management Quality Award for KnowledgeManagement

JoongAng Ilbo, Forbes Korea, Korean Society for Quality Management

2006 Ranked first in the life insurance area of KCSI, for twoconsecutive years

KMA Consulting

2006 Ranked first, customer complaints handling evaluation by theFSS

(Financial Supervisory Service)

2006 Grand prize for customer satisfaction, 2006 Korea FinancialCulture Award

Asia Economy newspaper

2006 Ranked first in the Korea Service Quality Index, for fourconsecutive year2006 Grand Prize for Korea Service Award in life insurance area, forthree consecutive years

Korea Standards Association

2006 The 3rd Korea Advertising Ethics Prize, Advertising Ethics Prize

Korea Advertising Review Board

2006/2007 First place winner of 2006 Respected

Company/Businessman Award for companies

Second place winner of 2007 Respected Company/Businessman

Award

The Federation of Korean Industries, Seoul Business

2007 Korea Web Awards, grand prize for financial service area

(samsunglife.com)

Hankook Ilbo

2007 The Most Respected Company in Korea, for four consecutive

years

KMA Consulting

Assets

Ⅰ.Cash and Deposits

1.Cash and Bank Deposits

2.Deposits of Futures Exchange

Ⅱ.Securities

1.Trading Securities

2.Available-For-Sale Securities

3.Held-To-Maturity Securities

4.Equity-Method Investment

Ⅲ.Loans

(Reserve for Doubtful Account)

1.Call Loans

2.Policy Loans

3.Loan Secured by Securities

4.Loan Secured by Real Estate

5.Unsecured Loans

6.Loan Secured by Third Party Guarantee

7.Other Loans

Ⅳ.Fixed Assets

1.Investment Assets

2.Tangible Assets

3.Intangible Assets

Ⅴ.Other Assets

1.Insurance Receivables

(Reserve for Doubtful Account)

2.Other Account Receivables

(Reserve for Doubtful Account)

3.Leasehold & Other Deposits

4.Accrued Income

(Reserve for Doubtful Account)

5.Prepaid Expenses

6.Advanced Payments

7.Deferred Acquisition Cost

8.Financial Derivatives Assets

9.Separate Account Debits

10.Others

11.Separate Account Assets

Total Assets

Liabilities and Shareholders’ Equity

Ⅰ.Policy Reserve

(Reserve Adjustment Account for Reinsurance Ceded)

1.Premium Reserve

2.Reserve for Outstanding Claims

3.Unearned Premium Reserve

4.Reserve for Participating Policyholder’s Dividends

5.Excess Participating Policyholder Dividend Reserve

6.Reserve for Assumed Reinsurance Premium

-893,358,418,367

239,614,001,737

-30,575,302

29,332,050,038

-4,474,007,347

1,464,707,804,674

-40,679,099,516

1,265,572,176,390

1,261,867,873,363

3,704,303,027

61,810,123,956,783

451,588,244,202

55,843,455,830,628

4,319,389,608,970

1,195,690,272,983

19,070,901,736,518

21,054,210,000

9,307,269,564,211

30,000,000,000

5,159,393,291,803

3,778,027,083,153

65,558,910,081

1,602,957,095,637

4,602,149,048,550

594,425,653,447

3,946,764,265,623

60,959,129,480

22,070,181,651,356

239,583,426,435

24,858,042,691

172,439,961,608

1,424,028,705,158

32,247,756,617

8,074,475,421

4,598,662,572,756

1,941,189,335,371

198,896,003,604

25,509,000,000

13,404,692,371,695

108,818,928,569,597

79,538,280,286,798

-11,746,667,280

72,272,807,521,820

5,546,342,561,344

74,430,235,833

1,527,586,671,601

125,029,883,039

3,830,080,441

-955,107,366,600

72,517,669,593

-29,917,804

21,561,578,876

-4,776,034,953

1,351,922,781,832

-41,103,014,022

1,350,893,089,249

1,347,459,463,962

3,433,625,287

56,891,618,274,830

653,307,553,521

51,285,685,673,475

3,857,066,757,227

1,095,558,290,607

18,248,803,328,413

19,287,480,000

8,755,625,603,664

30,000,000,000

4,307,544,333,095

4,372,229,966,949

76,290,095,660

1,642,933,215,645

4,320,701,636,275

480,821,259,979

3,773,648,582,506

66,231,793,790

18,817,186,950,568

72,487,751,789

16,785,543,923

168,032,725,652

1,310,819,767,810

26,111,637,309

11,039,209,155

4,657,886,348,463

1,645,349,937,973

103,988,795,742

25,509,000,000

10,779,176,232,752

99,629,203,279,335

73,616,633,959,209

-6,144,298,810

66,111,289,091,179

5,636,070,333,035

90,458,945,986

1,593,061,934,096

186,891,651,107

5,006,302,616

FY 2006: April 1, 2006 ~ March 31, 2007

FY 2005: April 1, 2005 ~ March 31, 2006

BALLANCE SHEET

(In KRW)

AccountFY 2006 FY 2005

Amount Amount

2006 An

nu

al Rep

ort●

32 / 33B

AL

LA

NC

E S

HE

ET

Ⅱ.Policyholders’Equity Adjustment

1.Reserve for Policyholder Dividend Stabilization

2.Fund for Public Projects

3.Gain(loss) On Valuation of Available-For-Sale Securities

4.Gain(loss) On Valuation of Held-To-Maturity Securities for Sale Securites

5.Gain on Valuation of Equity-Method Investment

6.Loss on Valuation of Equity-Method Investment

Ⅲ.Other Liabilities

1.Unpaid Claims

2.Other Accounts Payable

3.Accrued Expenses

4.Accrued Income Taxes

5.Advance Receipt

6.Unearned Income

7.Withholdings

8.Unearned Insurance Premium

9.Leasehold Deposits Received

10.Reserve for Severance Benefits

(National Pension Fund Payment)

(Deposits for Severance Benefits)

(Retirement Pension Plan Asset)

11.Separate Account Credits

12.Deferred Income Tax Credits

13.Financial Derivatives Liabilities

14.Other Liabilities

15.Separate Account Liabilities

Total Liabilities

Ⅰ.Capital Stock

1.Common Stock

2,000 thousands shares (@＼5,000)

Ⅱ.Capital Surplus

1.Asset Revaluation Reserve

Ⅲ.Retained Earnings

1.Legal Reserve

2.Other Statutory Reserve

3.Retained Earnings before Appropriations

(Net Income for the Year)

Ⅳ.Capital Adjustment

1.Gain(loss) on Valuation of Available-For-Sale Securities

2.Gain(loss) on Valuation of Held-To-Maturity Securities

3.Gain on Valuation of Equity-Method Investment

4.Loss on Valuation of Equity-Method Investment

5.Gain on Valuation of Derivatives

6.Loss on Valuation of Derivatives

Total Shareholders’ Equity

Total Liabilities and Shareholders’Equity

151,264,062,550

-1,948,232,738

-106,374,950,850

3,201,536,611,077

26,066,762,400

44,000,060,898

3,091,772,855,696

1,470,211,361

42,842,732,592

-4,616,011,870

17,324,726,861,494

23,821,233,069

96,082,877,075

357,272,916,139

97,599,242,171

123,309,190

9,897,003,866

32,603,762,454

110,820,607,168

427,721,971,871

42,940,878,962

442,640,366,346

2,116,297,897,768

54,897,306,838

107,315,116,882

13,404,692,371,695

100,064,543,759,369

100,000,000,000

100,000,000,000

93,889,274,264

93,889,274,264

4,464,220,479,785

50,000,000,000

2,327,741,074

4,411,892,738,711

(514,612,285,763)

4,096,275,056,179

3,479,824,927,418

1,658,142,238

49,342,982,927

-7,171,846,547

613,481,524,105

-40,860,673,962

8,754,384,810,228

108,818,928,569,597

168,733,857,520

-2,854,257,838

-118,564,497,155

3,133,102,492,831

26,066,762,400

44,000,060,898

3,028,875,676,876

6,826,768,928

32,063,927,741

-4,730,704,012

14,629,579,536,505

10,937,517,165

60,547,037,444

317,334,600,754

216,225,153,612

11,720,584,850

9,561,165,354

30,343,522,558

113,063,013,753

402,235,871,321

47,315,102,527

266,641,335,774

2,267,710,933,163

13,582,096,613

83,185,368,865

10,779,176,232,752

91,379,315,988,545

100,000,000,000

100,000,000,000

93,889,274,264

93,889,274,264

3,989,608,194,022

50,000,000,000

2,327,741,074

3,937,280,452,948

(626,247,897,352)

4,066,389,822,504

2,945,696,267,098

6,641,720,569

31,976,534,276

-6,065,062,045

1,094,117,574,667

-5,977,212,061

8,249,887,290,790

99,629,203,279,335

FY 2006: April 1, 2006 ~ March 31, 2007

FY 2005: April 1, 2005 ~ March 31, 2006

BALLANCE SHEET

(In KRW)

AccountFY 2006 FY 2005

Amount Amount

Ⅰ.Operating Income

1.Premium Income

①Individual Premium

②Group Premium

2.Reinsurance Income

①Assumed Reinsurance Premium

②Ceded Reinsurance Claims Recovered

③Ceded Reinsurance Experience Refund

3.Interest Income

①Interest on Bank Deposits

②Interest Income on Trading Securities

③Interest Income on Available-For-Sale Securities

④Interest Income on Held-to-Maturity Securities

⑤Interest Income on Loans

⑥Interest Income on Other Deposits

⑦Other interest income

4.Dividend Income

5.Rental Income

6.Commission Income

7.Gains on Disposition of Trading Securities

8.Gains on Valuation of Trading Securities

9.Gains on Derivatives Transaction

10.Gains on Valuation of Derivatives

11.Gains on Foreign Currency Translation

12.Gains on Foreign Currency Transaction

13.Separate Account Commission Received

14.Separate Account Income

15.Other Operating Income

Ⅱ.Operating Expenses

1.Increase in Policy Reserve

2.Claims Paid

①Benefit Payments

②Refund

③Dividend Expenses

3.Reinsurance Expenses

①Ceded Reinsurance Premium

②Assumed Reinsurance Claims

③Assumed Reinsurance Experience Refund

4.Interest Expenses

5.Losses on Disposition of Trading Securities

6.Losses on Valuation of Trading Securities

7.Losses on Derivatives Transaction

8.Losses on Valuation of Derivatives

9.Losses on Foreign Currency Translation

10.Losses on Foreign Currency Transaction

11.Operating Expenses

(Deferred Acquisition Expenses)

①Acquisition Expenses

②Administration Expenses

③Collection Expenses

12.Amortization of Deferred Acquisition Cost

13.Investment Administrative Expenses

14,806,959,112,249

652,214,184,386

12,691,045,510

125,868,759,567

64,857,476,527

64,630,659,844

22,731,496,595

2,103,002,168,683

249,604,705,434

1,568,235,380,873

236,905,834

10,972,054,744

1,525,374,329,962

8,718,612,571,153

230,236,655,565

205,101,280,823

7,643,131,432

4,472,168,075

-1,908,237,989,553

1,951,115,804,516

1,040,671,379,935

62,734,058,501

23,397,661,783,314

15,459,173,296,635

203,417,281,604

4,019,413,372,007

116,753,408,560

162,779,324,198

29,620,007,910

6,065,941,998

14,851,939,846

145,291,022,641

143,931,818,609

1,514,283,822

2,754,711,702

325,357,431,440

2,740,793,754,103

25,944,188,239

23,263,629,136,207

5,921,657,597,649

10,474,223,556,680

217,216,580,330

7,090,697,967

10,652,679,866

26,906,146,282

12,483,207,361

139,817,053,247

17,663,681,348

1,146,283,253,399

1,967,461,765,260

306,233,913,552

14,786,994,005,480

760,121,393,587

20,026,722,082

112,405,795,456

51,931,104,458

39,599,922,859

22,183,540,726

2,110,998,612,613

1,578,957,754,529

66,828,488

11,557,732,451

2,173,013,201,935

9,210,649,612,766

281,901,651,662

173,763,514,957

13,252,986,039

3,349,841,082

-1,762,077,532,973

1,938,973,244,917

943,529,648,089

67,854,235,459

23,259,769,622,709

15,547,115,399,067

184,363,621,996

3,763,364,391,666

142,306,574,307

144,226,279,582

24,855,547,716

6,310,019,206

25,366,889,147

223,873,829,622

133,117,968,917

314,167,316

93,579,429,763

166,950,068,250

2,768,864,480,272

35,160,955,882

23,129,631,425,128

4,472,434,325,882

11,665,564,466,363

190,366,342,078

6,547,888,861

8,493,424,174

326,000,000

138,494,296,928

42,234,012,175

42,184,733,733

106,153,907,440

1,188,279,595,492

1,867,235,292,556

294,930,822,484

FY 2006: April 1, 2006 ~ March 31, 2007

FY 2005: April 1, 2005 ~ March 31, 2006

INCOME STATEMENT

(In KRW)

AccountFY 2006 FY 2005

Amount Amount

2006 An

nu

al Rep

ort●

34 / 35IN

CO

ME

ST

AT

EM

EN

T

14.Bad Debt Expenses

15.Depreciation Expenses

16.Amortization Cost of Intangible Assets

17.Discount Expenses

18.Separate Account Expenses

19.Other Operating Expenses

Ⅲ.Operating Income

Ⅳ.Non Operating Income

1.Gains on Disposition of Available-For-Sale Securities

2.Reversal of Unrecoverable Valuation Loss on Available-For-Sale Securities

3.Gains on Valuation of Equity-Method

4.Gains on Disposition of Equity-Method Investment

5.Gains on Disposition of Investment Assets

6.Gains on Disposition of Tangible Assets

7.Income Tax Refunds

8.Miscellaneous Income

9.Gains on prior period adjustment

Ⅴ.Non Operating Expenses

1.Losses on Disposition of Available-For-Sale Securities

2.Unrecoverable Valuation Loss on Available-For-Sale Securities

3.Losses on Valuation of Equity-Method

4.Losses on Disposition of Equity-Method Investment

5.Losses on Disposition of Investment Assets

6.Losses on Disposition of Tangible Assets

7.Donations

8.Additional Payment of Income Tax

9.Miscellaneous Losses

Ⅵ.Ordinary Income

Ⅶ.Net Income Before Income Tax

Ⅷ.Income Tax Expense

Ⅸ.Net Income

(Ordinary Income per Share: KRW 25.731)

(Earnings per Share: KRW 25.731)

105,131,595,362

99,777,032,642

31,395,692,715

3,570,952,477

2,740,793,754,103

35,269,975,967

134,032,647,107

668,209,958,527

471,159,879,118

34,224,503,094

4,326,216,893

26,616,996,707

14,938,413,980

18,397,927,261

98,546,021,474

131,670,078,298

39,544,342,664

3,365,207,059

1,663,701,388

167,763,303

50,094,940,339

25,280,265,976

11,553,857,569

670,572,527,336

670,572,527,336

155,960,241,573

514,612,285,763

195,494,111,532

95,627,601,903

31,278,578,865

2,575,312,392

2,768,864,480,272

12,546,231,998

130,138,197,581

740,607,122,391

467,135,131,013

26,399,038,853

27,227,622,250

1,122,862,633

3,868,068

635,058,669

214,065,108,960

4,018,431,945

114,408,678,831

41,614,317,097

8,125,513,044

3,272,546,817

503,764,078

20,295,675

59,879,484

53,857,647,800

6,954,714,836

756,336,641,141

756,336,641,141

130,088,743,789

626,247,897,352

FY 2006: April 1, 2006 ~ March 31, 2007

FY 2005: April 1, 2005 ~ March 31, 2006

INCOME STATEMENT

(In KRW)

AccountFY 2006 FY 2005

Amount Amount

Samsung life Insurance Co., LtdSamsung Life Insurance Bldg., 150, Taepyungro 2-Ga, Jung-Gu, Seoul, Korea, 100-716 Tel: 82-2-1588-3114 www.samsunglife.com