Tesh Karen's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q4 2024
Question
Tesh Karen from White Capital asked about the risk to the life insurance subsidiary's income from falling interest rates and inquired whether proprietary trading occurs within the group.
Answer
The Shinhan Life CFO stated that the company has a minimal book of guaranteed yield annuities, so the impact from lower rates is negligible and could even slightly increase earnings as liability costs fall. An executive then addressed the trading question by detailing the group's bond holdings, noting that Shinhan Bank and Shinhan Securities hold about half each of the KRW 37.3 trillion in FPPL bonds, while the bank and life subsidiary are the main holders of the KRW 78.1 trillion in FVOCI bonds.