Shinhan Life Achieves Top 'AAA' Claims-Paying Ability Rating for 19 Consecutive Years

"Stable Profitability Based on CSM, Proven Strong Capital Soundness"

Shinhan Life announced on May 15 that it has achieved the highest rating of 'AAA·Stable' for insurance claims-paying ability for the 19th consecutive year.

Shinhan Life Headquarters, Jung-gu, Seoul. Shinhan Life

According to Shinhan Life, NICE Investors Service assigned the AAA rating by evaluating the company's protection-oriented insurance portfolio, stable profit generation based on Contractual Service Margin (CSM), strong capital adequacy and regulatory compliance capabilities, and top-tier market position within the life insurance industry.

In particular, it highlighted the company’s ability to maintain an excellent protection-oriented insurance portfolio and deliver robust CSM results. Backed by differentiated sales competitiveness, Shinhan Life achieved new contract CSM of 1.6 trillion won last year, with its CSM at the end of the year reaching 7.6 trillion won—a 4.6% increase compared to the previous year—demonstrating a sustainable profit generation foundation.

As of the end of last year, Shinhan Life's Korean Insurance Capital Standards (K-ICS) ratio before transitional measures stood at 206.0%. Even based on the basic capital K-ICS ratio, which is set to take effect next year, the company maintained a strong capital soundness level of 98.1%. This is significantly higher than the prompt corrective action threshold of 50%.

A Shinhan Life official stated, "Despite volatility in the financial markets and changes in domestic and international environments, our CSM-based mid-to-long-term profits continue to show stable growth. We will further pursue balanced growth in financial soundness and future profitability to enhance value for both our customers and the company."

Meanwhile, Shinhan Life also received the highest rating of 'AAA/Stable' in the insurance claims-paying ability assessment conducted by Korea Ratings·KR the previous day.

This content was produced with the assistance of AI translation services.