HYUNDAI MARINE&FIRE INSURANCE

HYUNDAI MARINE&FIRE INSURANCE 2013 INSURANCE ANNUAL REPORT 2013 ANNUAL REPORT HYUNDAI MARINE&FIRE INSURANCE 2013 ANNUAL REPORT Hyundai Marine & Fire Insurance Co., Ltd. 163 Sejong-daero, Jongno-gu, Seoul, Korea Tel: (82)1588-5656 www.hi.co.kr

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results Financial Highlights FY2010 FY2011 FY2012 Reliable Hyundai Insurance Financial Highlights 03 Future Vision 04 Company Overview and Management Philosophy 10 Chairman s Letter 12 Message from the CEO 14 Business & Financial Summary 16 Direct Premium FY2008 FY2009 FY2010 FY2011 FY2012 5,539,606 6,466,633 7,610,424 9,316,657 10,157,664 Classification (KRW million) (KRW million) (KRW million) (USD 1,000) Direct Premium 7,610,424 9,316,657 10,157,664 9,109,461 Net Premium 6,786,492 8,421,672 9,232,199 8,279,498 Earned Premium 6,634,219 8,357,856 9,212,849 8,262,144 Underwriting Income -204,486 30,465-212,672-190,726 Investment Income 440,670 520,718 684,884 614,209 Total Operating Income 236,184 551,183 472,212 423,483 Net Income 159,485 392,756 333,381 298,979 (Adj. Net Income) 205,418 Vision Hi 2015 Total Assets 13,005,845 17,571,242 20,867,758 18,714,345 Vision Hi 2015 18 Sustainability report Sustainability Management 20 (Adj.) Net Income Invested Assets 10,313,054 13,422,220 16,290,616 14,609,534 Total Shareholders Equities 1,152,819 1,744,234 2,101,924 1,885,019 Ethics Management 22 Environment Management 24 Social Contribution Activities 26 Activities for Customer Satisfaction 28 FY2008 FY2009 FY2010 155,421 224,983 205,418 (Adj. Total Shareholders Equities) 1,557,248 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07 : U$1 / BS basic rate 1,112.10 : U$1 Note 2) K-IFRS was applied from FY2011 on a non-consolidation basis. Note 3) Adjusted net income: Net income + Increase of Catastrophe Reserves / Adjusted shareholders equities: Total shareholders equities + Catastrophe Reserves Risk Management Activities 30 FY2011 392,756 FY2012 Management News for Hyundai Insurance 32 FY2012 333,381 Financial Issues FY2012 Detailed Management Result Report 34 Financial Statements 45 Note) Figures refer to adjusted net income for FY2010 or before and to net income for FY2011 or after. Total Assets FY2008 9,487,404 (Adj.) Total Shareholders Equities FY2010 FY2011 1,744,234 FY2012 2,101,924 About Hyundai Marine & Fire Insurance FY2009 11,093,772 FY2009 1,557,248 Board of Directors/Executive Directors 108 Organization Chart 110 FY2010 FY2011 13,005,845 17,571,242 FY2008 1,423,800 Subsidiary Companies 112 Company History 113 Global Networks 114 FY2012 20,867,758 1,153,595 Note) Figures refer to adjusted shareholders equities for FY2010 or before and to total shareholders equities for FY2011 and after. (Unit: KRW Million) Hyundai Marine & Fire Insurance 03

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results Righteous management The leading insurance company creating best service for customers by righteous management. We always follow the right path and strive to grow with our customers by providing them with a first-rate service. We trust in following the right path and believe that it is the best way to repay our customers for putting their trust in us. We have built up a solid tradition of excellence since our establishment in 1955 and are refreshing our resolve to provide satisfactory services to all our customers for the next 100 years based on such a tradition. 04 2013 Annual Report Hyundai Marine & Fire Insurance 05

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results Customer satisfaction Customers trust and satisfaction Our most valuable assets Hyundai Marine & Fire Insurance will always act as your trusted partner for life. We conduct first-rate management that leave our customers satisfied by developing creative products suited to customers needs, planning exemplary insurance aimed at securing our customers a prosperous future, and providing positive and differentiated compensation. 06 2013 Annual Report Hyundai Marine & Fire Insurance 07

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results Social contribution Hyundai Insurance leads hope with hearty challenge for a better tomorrow! We at Hyundai Marine & Fire Insurance do all we can to give hope to the less privileged. We engage in social contribution activities to repay our customers for putting their trust in us. We return a given portion of our profit to the community in an effort to build a society where everyone is happy. Hyundai Insurance dreams of a respectable company stepping forward for the happy future That is how we envision ourselves. 08 2013 Annual Report Hyundai Marine & Fire Insurance 09

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results Creative Will Fervent Passion Leading Korean Non-life Insurance Industry Enterprising Spirit of Challenge Hyundai Marine & Fire Insurance Unwavering Love of Customers Since the company s establishment in 1955 as the country s first company dedicated to marine insurance, we have grown into a leader in the non-life insurance industry. We have been able to accomplish such a feat through indomitable earnestness, creative will, a daring spirit of challenge, and our customers trust. We regard customer satisfaction as our highest value and have always striven to realize our customers happiness. We aim to be a world-class insurance company that grows with its customers based on our solid tradition of excellence. We will help build a hopeful future by contributing to society. Management Philosophy We will play a leading role in the financial industry with creativity and powerful driving force, place priority on customers satisfaction, and contribute to the making of a more affluent society and the development of the national economy. 10 2013 Annual Report Hyundai Marine & Fire Insurance 11

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results In 2013, we will cement our status as a leading non-life insurance company that stays on the right path by implementing customer centered Chairman s Letter management and an efficient growth strategy. My dear customers and investors! I am pleased to present this FY 2012 Annual Report and would like to express my gratitude for your fullhearted support and trust in us. In 2012, there was yet another global recession which started with the financial crisis in the southern European countries. Domestic economy also went through a hard time, and the GDP growth rate stood at an anemic level of 2.0% amid sluggish private consumption. The insurance industry shared this gloomy fate. Auto insurance, for example, recorded negative growth. Under the prevalent trend of low interest rates, the investment business environment displayed unfavorable prospects. In 2012, we recorded 342.3 billion won in net income and more than 10 trillion won in direct premium despite the difficult circumstances. We also achieved a significant management result, including more than 20 trillion won in total assets and more than 2 trillion won in total shareholders equities. Such a remarkable result is attributable to the deep interest and strong support of our customers and investors as well as our employees unremittingly hard work. In 2013, the worldwide economic situation is expected to remain uncertain amid generally low interest rates. As for the insurance industry, competition among players will intensify further still amid the slowdown in market growth. The current situation requires players to make profound efforts to strengthen their financial soundness, including strengthening the RBC scheme and customer protection. Dear customers and investors, We always appreciate your encouraging comments. We will continue to listen to your advice as we have always done, keeping in mind that we can make better progress by doing so. We will do what we can to obtain good results and make our customers satisfied by reflecting your opinions in our operations I wish you and your family members great health and happiness. In 2013, we will concentrate our efforts on cementing our status in the non-life insurance industry by pursuing customer centered management, staying on the right path, and attaining our mid- and long-term vision of growing with our customers through first-rate services. Chairman Mong-Yoon Chung 12 2013 Annual Report Hyundai Marine & Fire Insurance 13

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results CEO Message Dear customers and investors, I am pleased to be able to present the management results for FY2012 to you all. The amount of direct premiums in FY2012 stood at KRW 10,157.7 billion, a 9.0% y-o-y increase. By line, general insurance grew by 8.3%, while long-term insurance grew by 12.9% on the back of the stable inflow of recurring premium and an increase of new business premium. As for auto insurance, it recorded negative growth of 2.6% due to the impact of the primium cut and the expansion of the direct market. We recorded 342.3 billion won in net income on a consolidation basis, representing a 15.6% y-o-y decrease. It is attributable to an increase in the loss ratio in auto insurance and the occurrence of excess amortization of the long-term insurance acquisition cost, which resulted in combined ratio of 102.3%, i.e. a 2.7%p y-o-y increase. Looking at the financial results, total assets and invested assets stood at 20,867.8 billion won and 16,290.6 billion won, respectively, an 18.8% and 21.4% y-o-y increase. Total shareholders equities stood at 2,101.9 billion won, a 20.5% y-o-y increase. The RBC ratio fell by 2.2%p y-o-y to 207.2% due to the impact of the the RBC regime changes. Overall, in 2012 we posted significant management results, exceeding the 10 trillion won and 20 trillion won in revenue and total assets, respectively, although we posted a decrease in net income due to the unfavorable business environment. Dear customers and investors, We expect to see diverse changes in FY2013. Uncertainty both in and out of the country will continue to prevail amid the southern European financial crisis and the economic slowdown of the United States and China. Low growth and low interest rates will continue for the time being. It appears that we should take preemptive steps in conjunction with forthcoming changes in the relevant systems, such as reducing customer complaints and strengthening the RBC scheme. To deal with such changes, we will adopt the three following management guidelines in 2013: First, we will carry out business based on principle and rules. Second, we will strengthen our sales capability with the focus on efficiency and profit. We will ensure that a profit-oriented sales structure takes root. We will also strive to execute distribution expenses and run the organization more efficiently. Third, we will push ahead with the innovation of products and services in a customer centered way. We will continue to establish a more convenient business process for customers and enhance the level of customers satisfaction with differentiated products and our claims service. Please rest assured that we will do our best to obtain better management results by carrying out the said management guidelines thoroughly in 2013. Thank you. CEOs Cheol-Young Lee and Chan-Jong Park President & CEO Cheol-Young Lee Vice President & CEO Chan-Jong Park 14 2013 Annual Report Hyundai Marine & Fire Insurance 15

Reliable Hyundai Insurance Financial Highlights Future Vision Company Overview and Management Philosophy Chairman s Letter Message from the CEO Report on Major Management Results Business & Financial Summary In FY2012, the non-life insurance industry collected direct premium of about KRW 63 trillion with growth of about 12% compared to the previous year. Commercial insurance grew 12%, thanks to a consistent increase of group accident insurance and casualty insurance. As for auto insurance, it recorded negative growth of 1.5% due to the impact of a premium cut and the expansion of the online market. Long-term insurance posted robust y-o-y growth of 17% on the back of a strong rise of the initial premium, particularly in the healthcare types amid a stable inflow of recurring premiums. Looking at our performance in 2012, we posted 10,157.7 billion won in direct premiums, showing a 9.0% y-o-y increase, with long-term insurance playing a central role. By line, we recorded an 8.3% y-o-y increase in general insurance as a result of positive efforts made to attract new customers. Auto insurance recorded negative growth of 2.6%. We posted a monthly average of initial premium of 24.8 billion won, a 17.8% y-o-y increase and 16 billion won in monthly converted new business premiums, a 3.7% increase over the preceding year. As for recurring premiums, we posted 6,752.3 billion won, a 19% y-o-y increase, as a result of our efforts to improve the persistency rate. In long-term healthcare type insurance with a high profit margin, we recorded a 41.7% y-o-y increase in terms of monthly converted average initial premiums with 45.3% of proportion in our long-term portfolio. As regards profit and loss, we recorded a combined ratio of 102.3% with a loss of 212.7 billion won in the underwriting. The loss is attributable to the expense ratio of 19.2%, a 1.8%p y-o-y increase, associated with an excess amortization of the long-term insurance acquisition cost. As regards the loss ratio, we posted 83.1%, a 0.9%p y-o-y increase. In general insurance, our loss ratio stood at 69.8% due to various factors including claims caused by typhoon and other natural disasters. In auto insurance, our loss ratio stood at 83.4%, i.e.a 2.7%p y-o-y increase, which resulted from a decrease in per-unit earned premiums associated with premium cut and heavy snow. For long-term insurance, our loss ratio stood at 83.7%, showing a modest increase over the preceding year, due to an increase in the risk loss ratio In the investment sector, we maintained the level of 77% concerning the composition ratio of interestbearing assets in invested assets. We held on to the investment strategy of putting priority on risk management by minimizing risky assets. As of the end of March 2013, our invested assets stood at 16,290.6 billion won, i.e. an increase of 3 trillion won over the same period of the preceding year. In investment income, we posted 684.9 billion won, which was mainly attributable to an increase in gain on the valuation/ disposition of marketable securities. We also posted a 4.7% return on investment. As a result of the aforesaid, we posted 342.3 billion won in net profit on a consolidation basis (or 333.4 billion won on a separate basis) and 19% in ROE. We recorded 2,101.9 billion won in total shareholders equities. As for the RBC ratio, we recorded 207.2%, i.e. a 2.2%p decrease, due to the strengthening of the RBC scheme. In FY2012, the non-life insurance industry posted direct premium of about KRW 63 trillion with growth of about 12% compared to the previous year. Commercial insurance grew 12%, thanks to a consistent increase of group accident insurance and casualty insurance. As for auto insurance, it recorded negative growth of 1.5% due to the impact of a drop in the premium rate and the expansion of the online market. Non-life insurance posted robust y-o-y growth of 17% on the back of a strong rise in the number of new contracts, particularly those in personal insurance amid a stable inflow of recurring premiums. We accredited the credit rating of A stable, an upgrade from the A-Positive of the preceding year, from A.M. Best, a world-class credit rating agency specializing in insurance businesses, apparently in recognition of the continuous improvements we have made in terms of business performance, our investment strategy s focus on risk management and a sufficient solvency margin. Most observers predict that the world economic environment will remain uncertain in 2013. Insurance industry is in a difficult situation due to the forthcoming change in the RBC scheme which is designed to strengthen the qualitative aspect of capital and reduce the customer complaints. Under such circumstances, we at Hyundai Marine & Fire Insurance will deal with such changes with maintaining enthusiastic attitude and differentiated competitiveness in business, and set up effective strategies to boost profitability and growth at the same time. 16 2013 Annual Report Hyundai Marine & Fire Insurance 17

Vision Hi 2015 Report on Sustainability Activities for Customer Satisfaction Risk Management Activities FY2012 Management News 12 key strategies to realize 4 major mid- and long-term management strategy directions New Vision and Management Strategy of Hyundai Insurance VISION Hi 2015 New Vision and Management Strategy 01 Development of products leading the market and consolidation of UW/contract management competence 02 Bolstering sales competitiveness in the open-type, multi-channel structure 03 Maintaining top-level claim competiveness in the industry 04 Consolidation of assets management competence to realize long-term, stable investment returns 05 Establishment of Hyundai Insurance s own new culture and nurturing of talented people 06 Risk management competences strengthening suitable for business portfolio and assets increase 07 IT infrastructure enhancement to make the business process efficient 08 Consolidation of brand image to enhance customer trust and loyalty 09 Enhancing of total customer services to offer values beyond risk security 10 Reinforcing of social responsibility management as the leading insurer 11 Boosting of global business on a step-by-step basis to overcome the domestic market limitations 12 Consolidation of response to secure new growth opportunities The leading insurance company creating best service for customers We at Hyundai Insurance established our mid and long-term vision, Hi 2010, Insurer with Korea s Top Competitiveness and have been doing our best in all sectors. As a result, we have grown remarkably in business revenue and other fields. Nonetheless, the future is uncertain because of changes in the business environment including the saturation of the insurance market, entry of new insurers into the insurance market, continuous sales channel diversification, and consumer protection consolidation trend. These present new challenges and tasks that we must overcome. We have established a new mid and long-term vision dubbed Hi 2015, proclaiming it both internally and externally in April 2011 to proactively cope with the upcoming environmental changes and to continuously grow as a company. Under the newly adopted vision, namely, the leading insurance company creating best service for customers, we will provide high-quality insurance products and services, faithfully holding on to our role of contributing to customers happiness and social security as an insurance business, and continuing to grow accordingly. To that end, we have set the following mid-and long-term management strategies: strengthening core business competitiveness, improving business infrastructure, maximizing customer value, and preparing new growth engines. Under these strategies, we will strive to remain at the top in terms of overall sales, profitability, and competitiveness, push forward with business more efficiently, and continue to provide services in a way that will enhance the quality of our customers lives. We will also strive to continue to grow by strengthening the basis for new growth and overcoming the limitations of the insurance market. To realize our new vision, Hyundai Insurance has chosen mid and long-term strategic tasks for each business division in line with our 4 major management strategy directions and 12 key strategies. Based on the momentum gathered through the promotion of 47 strategic measures in the preceding year, we selected and pushed ahead with 45 strategic measures in 2012 in consideration of their importance and urgency among those to be promoted by each division by 2015. We successfully concluded the one-year-long FY2012 mid- and long-term strategic measures, in which a total of 200-plus employees took part, through the kickoff in April 2012, interim checks and progress appraisals, and the final report session in March 2013. The ongoing mid- and long-term strategic measures, which were implemented for successful accomplishment of the company s Vision Hi 2015, may reap good results thanks to the positive efforts made by the relevant director and project members in 2012, the second year of the project, despite the many difficulties, including rapidly changing external conditions. We will continue to push forward with these measures, positively using our accumulated know-how and reflecting changes in the relevant environment. We shall bolster basic competitiveness as an insurer to achieve our Vision Hi 2015 and become a Leading insurance company creating the best services for customers by concentrating all our capabilities on maximizing customer values along with internally solid growth. 18 2013 Annual Report Hyundai Marine & Fire Insurance 19

Vision Hi 2015 Report on Sustainability Sustainability Management Activities for Customer Satisfaction Risk Management Activities FY2012 Management News Sustainability Report Management philosophy A perpetual concept Sustainability Management We place priority on customer satisfaction, fulfill our economic, social, and environmental responsibilities toward stakeholders and the country, and pursue balanced development among economic, social, and environmental aspects through corporate activities and the creation of values. Our sustainable management is focused on efforts to promote practical methods with a view to attaining our mid- and long-term visions based on our management philosophy. Vision Mid- and long-term objectives For Tomorrow Sustainable management strategy Concrete methods of execution righteous management Risk management Ethical management Efficient management Innovative management Shareholder value enhancement System for promoting sustainable management First, we will focus on staying on the right path. Sustainable management strategy Customer management Customer satisfaction Righteous management Efficient management As a business dedicated to ensuring security in the future, we stress mid- and long-term risk management rather than short-term results, which requires a sound ethical mindset and behavior on the part of our employees. Second, we will put priority on the efficiency of our operation. Employees will be reminded to innovate themselves so as not to fall into the trap of inefficiency and carelessness in order that the company will continue to grow. This is also an effective way of enhancing shareholder value. Human resources management Win-win management Partners Society Environment Customer management Third, customer satisfactions comes to our priority. The most basic element of sustainable management is to provide ultimate satisfaction to customers, who are our most important stakeholders, and to develop diverse products Employees Hi planners and services that reflect customers needs. Win-win management Human resources management Fourth, win-win management comes next. A business takes root in the community and grows on the nutrition provided by it. A business can achieve sustainable development when striving for joint prosperity with the community by adopting the latter as an important stakeholder. Such an effort includes paying attention to our surroundings and providing them with protective support. Fifth, the management of human resources is no less important. It goes without saying that efforts should be made to strengthen employees capabilities in order for a business to engage in creative management activities. Training talented employees with earnestness and an ownership mindset is the most basic thing that a business must do. 20 2013 Annual Report Hyundai Marine & Fire Insurance 21

Vision Hi 2015 Report on Sustainability Ethics Management Activities for Customer Satisfaction Risk Management Activities FY2012 Management News Sustainability Report Compliance and ethics management activities Ethics Management Under the motto of ethical management, we carry out management activities in a way that engenders a sense of trust in our customers and put customer satisfaction, which is a core element of our management philosophy, into practice through the transparent and fair handling of business. We are committed to developing a corporate culture focusing on fair and free competition. Our business ethics require that we provide customers and society with affluence and stability. We are building the base for sustainable management through ethical management. Trust of Hi We have done our best to practice ethical management, fulfilling all our responsibilities and obligations toward customers, employees, shareholders, subcontractors, country and society based on our Ethics Charter and Code of Conduct. Our Compliance Officer, appointed by the Board of Directors, deals with matters relating to compliance and internal control so that our ethical management may be conducted concretely and effectively. Our Ethics Charter We at Hyundai Marine & Fire Insurance have set the criteria for ethical decision making and behavior as follows based on our management philosophy and ethical management-related values and hereby resolve to put them into practice at all times: We shall deal with all our customers honestly, respect their opinions, put priority on customer satisfaction, and enhance customer value. We shall disclose Company-related information to our shareholders transparently and fairly. We shall protect our shareholders rights and interests through sound management. We shall develop the corporate culture in such a way as to recognize human dignity and values based on mutual trust, and adhere firmly to the basics and principles. We shall engage in fair and free competition with other businesses and conduct reasonable business transactions for mutual development and coexistence. We shall provide abundance and stability to the community and contribute to the development of society and the country s economy by creating jobs and faithfully paying our taxes. Within the Company, matters relating to ethical management are controlled by the Compliance Department under the instructions of the Compliance Officer, with a team composed of 139 compliance managers charged with carrying out matters relating to compliancerelated internal control activities. Compliance programs Periodic campaigns are conducted for the continued promotion of ethical management. Voluntary programs are adopted to ensure fair transactions with the aim of achieving effective management results through fair and free competition. We observe the competition laws and execute self-regulated fair transaction rules under the control of the Compliance Officer. We observe The Personal Information Protection Act by enacting the relevant in-house rules and carrying out activities for checking and improving the relevant system under the control of the Compliance Officer. We have also established a system to prevent money laundering involving through financial companies. We regularly carry out company-wide activities relating to ethics, compliance, and accident prevention through Hi-Compliance Day (a departmental-level internal control activity) events and operate a system for the evaluation of self-regulated internal control. Each department is required to designate an employee in charge of compliance so that ethics and compliance-related matters may be reflected properly in our overall operation. We also strive to enhance the level of employees awareness of ethical and compliance-related issues through educational sessions. 22 2013 Annual Report Hyundai Marine & Fire Insurance 23

Vision Hi 2015 Report on Sustainability Environment Management Activities for Customer Satisfaction Risk Management Activities FY2012 Management News Sustainability Report In July 2010, HIRC has established to We obtained a weather management certification from the Korea Meteorological proactively cope with climate change by Administration (KMA), the first of its kind awarded to a financial business, in recognizing it as both a risk and opportunity recognition of the aforementioned activities. Green Finance simultaneously, as well as support the company s realization of its social responsibilities and develop the insurance industry through research regarding traffic safety, a major area of non-life insurance recently. We also strive to contribute to society with the development of diverse products and services designed to realize environmental management. We do what we can to meet the demand for businesses positive environmental management and meet customers eco-friendly service needs by offering Hi Life Power Eco Driver s Insurance, Hi Belief Bicycle Casualty Insurance, and storm and Flood Insurance. Environment Management We started the climate information service in December 2010 to help reduce safety or traffic accidents caused by heavy rainfall, blizzards or cold waves. The service includes periodic provision of detailed climate information to customer businesses via e-mail and SMS-based provision of information on inclement weather, such as downpours, heavy snowfall or cold waves to customers in the affected areas. We developed Hicar Eco Auto Insurance, a product utilizing used car parts, the first of its kind adopted by an insurance business, and won an exclusive license for it. We replaced the printed materials used for insurance contracts related to the Hicar Green Service, such as the terms and conditions and insurance policy, with e-mail and reflected the amount thus saved in the insurance premium charged to customers. As the first Korean insurance company to sign up to the UN Environmental Program Financial Initiative (UNEP FI), we are carrying out environmentally-related activities, including the dissemination of sustainable management. In 1995, we issued a statement on the importance of environmental issues and the role of insurance Our HIRC provides information on the businesses in addressing them in Geneva. impending danger of flooding, using facilities installed in areas frequently affected by floods, on a real-time basis in an effort to prevent accidents and minimize damages. In 2005, we became the first Korean insurance company to announce its support for the Carbon Disclosure Project (CDP) and have since participated in the relevant activities. In 2012, we announced our support for the CDP Water Disclosure and have made efforts to contribute to programs related to climate change and environmental preservation. Green Finance Enhancement of the company s image as an eco-friendly business As corporate that fulfills its social responsibilities, we make concerted efforts to draw attention to environmental issues, enhance our image as an eco-friendly business, and establish our status as a business engaging in sustainable activities. We develop and sell green insurance products to put environmental management into practice, while making diverse efforts to reduce energy consumption in the name of low carbon, green growth. We operate the eco-friendly Management Committee and the Hyundai Insurance Research Center(HIRC) to carry out eco-friendly management positively and be better prepared against environmental risks relating to climate change. Weather Management Certification Contents : Certification concerning the creation of added value through diverse use of weather information by a business (or institution) and ensuring safety from adverse weather disasters. Provider : KMA(Korea Meteorological Administration) Validity of certification : October 26, 2012 - October 25, 2015 (for three years) We are doing our best to save energy wherever possible. We manage energy use in an effort to minimize the environmental burden occasioned by corporate activities, setting the indoor temperature of our buildings no higher than 20 C in winter and taking part in the campaign to reduce power consumption during peak hours. Every year, we distribute energy-saving guidelines throughout the Company as a part of our participation in the nationwide energy-saving campaign in this era of high oil prices. 24 2013 Annual Report Hyundai Marine & Fire Insurance 25

Vision Hi 2015 Report on Sustainability Social Contribution Activities Activities for Customer Satisfaction Risk Management Activities FY2012 Management News Sustainability Report Social Contribution Activities Challenge for tomorrow We at Hyundai Marine & Fire Insurance pursue sustainable and shared growth and do our best to fulfill our social responsibilities. We make a point of returning a given percentage of our profits to society so that all people may live a happier life. We expect that the actions we have taken to help create a more humane society where people share happiness together will blossom into new hope. Heart Plus Support for future generations to follow the path of virtue We work together with experts to assist young people and tackle social issues relating to them through the following programs: [Very Minor Confessions] This program was set up to prevent school violence through the invigoration of communication. It comprises Confessions to Make, which is run online and offline; a session in which celebrities are invited to discuss school violence; and Healing Camp, which is designed to heal victims of school violence or trauma. It is carried out with the positive participation of students, teachers, and parents. [T-um Class] This long-term program (a total of 16 sessions have been conducted so far) aims to develop the personality of children accommodated in special facilities with the help of experts. The program helps young people to improve their sense of pride and sociability and make a plan for a hopeful future. We share hope with neighbors We do our best to help needy neighbors and build a better future. [Hi-Life voluntary activities / Disaster Aid Committee] The Company encourages employees and Hi Planners to engage in voluntary activities and provides support for their activities. Our Hi-Life Volunteers, launched in 2005, carry out activities in more than 30 facilities and national parks nationwide. We also operate the Disaster Aid Committee to provide relief to the needy. [Ashoka Support] Hyundai Marine & Fire Insurance is a founding partner of Ashoka Korea, which is well known for its discovery of and provision of support to social entrepreneurs. We concur with Ashoka s philosophy of pursuing a society in which more and more people take the initiative with a view to changing the world. We carry out activities as a partner of Ashoka Korea based on the belief that our activities will bring about positive changes in our society. [Financial donations] Our employees voluntarily donate part of their monthly salary to provide financial support for children whose parent(s) have lost their lives in a traffic accident. [Charity Bazaar] Every year our employees and Hi Planners donate used articles and sell them at the Charity Bazaar. They spend the proceeds on helping needy neighbors. Traffic/safety accident prevention activities We carry out activities aimed at protecting people from the kinds of accidents that can occur in everyday life. [Hicar women drivers class] We run a class for novice women drivers, teaching them how to prevent traffic accidents and park a car in a small space. [Hi-Mom 119 class] This class aims to teach children how to avoid accidents in their everyday lives and how to act decisively in moments of danger. [Helping children avoid a traffic accident] We run a program aimed at teaching children how to get home safely without a traffic accident after school. We provide a traffic safety map about the areas close to their school in an effort to help children avoid traffic accidents. We also carry out other programs, such as the Children s Traffic Safety Concert, which is designed to raise awareness of the potential dangers posed by road traffic, particularly where children are concerned. 26 2013 Annual Report Hyundai Marine & Fire Insurance 27

Vision Hi 2015 Report on Sustainability Activities for Customer Satisfaction Risk Management Activities FY2012 Management News Meticulous efforts on behalf of our customers In 1996, we became the first insurance business to announce the Customer Satisfaction Management Charter. Since then, our employees and Hi Planners have made concerted efforts to deliver differentiated customer satisfaction management under the motto of Hyundai Marine & Fire Insurance, a company loved by customers for its first-rate service and humane approach. We have adopted the 7 Heart Service as our service identity in an effort to put the principle of better customer service into practice. Under the said service identity, we do our best to convey our readiness to serve our customers at the seven leading contact points: auto compensation, long-term compensation, coming to the client s aid, rushing to the scene, call center, Hi Planners, and counters. As a result of such efforts, our name was admitted to the Hall of Fame, the Korea Management Grand Prize in the category of customer satisfaction management in 2012. 7 Heart Service programs Activities for Customer Satisfaction 7 Heart Service 01 Customer Satisfaction Service 02 Automobile Claims (Family Heart Service) 03 Long-Term Insurance Claims (Smart Heart Service) 04 Emergency Mobilizations (Plus Heart Service) 05 Emergency Claims (Speed Heart Service) 06 Call Center (Sense Heart Service) 07 Risk Management Service 01. Customer Satisfaction Service Hi-Class Service for premium customers Premium Customer s Day Music CD offering to premium customers Free legal/tax service Hicar driving lessons for women Hi mom 119 class Customer consultant Hi-VOC (voice of customers) system Online convenience system via homepage/smart customer center 02. Automobile Claims (Family Heart Service) Smart Hi-UP service (mobile-based compensation handling system, real-time Claim payment) Real-time mobile-based accident inquiry service for customers (transmission of a photo of the accident scene via e-mail and inquiry about employee in charge, etc) Real-time indemnity processing information system from homepage Post-accident care Customized service to inform the client of the end of indemnity (via location message service (LMS), post, email) On-site claim adjustment and payment service for petty car accident claims Zero Complaint Day to solve customer complaints Indemnity consulting on the Internet Education and compensation consulting to prevent accidents for corporations 03. Long-Term Insurance Claims (Smart Heart Service) Smart phone information service (information on documents to be submitted; consent to personal information handling; payment details) Accident acceptance service from homepage (file loading, allocating fax number per insured person) Long-term insurance accident consulting Mobile accident acceptance service LMS informing the client of the required documents Planner touch service for customers with accident experience Post-accident care Customer assurance SMS information service (information on receipt of report; fax number; employee in charge) Customized service to inform the client of the end of indemnity (via SMS, location message service (LMS), post, email) Fax receiving confirmation inquiry of sent document Real-time indemnity processing information system from homepage Mobile-based information system on the real-time compensation handling process Indemnity consulting on the Internet 04. Emergency Mobilization (Plus Heart Service) Hicar service (emergency mobilization and vehicle care service) Free mobile inspection during summer and winter 05. Emergency Claims (Speed Heart Service) Hicar emergency claims System for identification of the customer s location and the team coming to the client s aid Premium partner repair center information service (SMS service for the closest partner company and information on the person mobilized on-site) Customer assurance and information on the accident handling procedure 06. Call Center (Sense Heart Service) Receipt of the report on a car accident and request for coming to the client s aid (all year round) Contract-related counseling and document issuance (documents that a customer needs to prepare, e.g. insurance policy or subscription certificate) Security call service for elderly living alone Call-back service 07. Risk Management Service Risk management seminars Risk assessment services for corporate customers Risk management information offerin 28 2013 Annual Report Hyundai Marine & Fire Insurance 29

Vision Hi 2015 Report on Sustainability Activities for Customer Satisfaction Risk Management Activities FY2012 Management News In consideration of such a need for risk management activities, we strive to operate a risk-based strategic management system, looking for ways to strike a balance between risk and profit and adopting sophisticated risk management organizations, regulations, and systems. To achieve this, we make a point of establishing a basic risk management plan and pushing ahead with specific objectives and measures every year based on a risk management master plan. Risk Management Activities Effective response to financial environment and system changes With the increasingly complicated nature of the financial system, risk management is becoming ever more important amid uncertainty over global financial markets and the world economy and the ongoing problems of domestic savings banks. The situation requires the sophistication and specialization of risk management in conjunction with the need to deal more efficiently with changes in the financial environment and systems, such as compulsory execution of the Risk-based Capital (RBC) system and enactment of the International Financial Reporting Standard (IFRS). Framework Risk Management Strategy Framework Organization Secure independence of risk management. Consolidate specialist manpower. Regulation Establish the risk perceiving, measuring, analyzing, controlling, and monitoring system. Premanagement Consolidate the investment proposal analysis. Pursue earnings considering the risk. Tactical Asset Allocation. Postmanagement Select risk Mgt. indicators. Establish the RAPM system. Mgt. system Advancement of risk Risk Mgt. system Advancement of risk management Consolidation of risk analyzing capability earnings and risks Balance between Analysis Develop analysis indicators. Various sensitivity analyzing and reporting systems Secure model conformance. Accumulate and computerize risk data. System Establish market, credit, interest rate, insurance, and operation risk systems. Build an integrated risk system. 1) RBC : Risk Based Capital 2) IFRS : International Financial Reporting Standards Risk Management System Hyundai Insurance is committed to minimizing losses and enhancing corporate sustainability amid all financial risks (interest rate, insurance, market, credit, liquidity) and non-financial risks (operation, reputation, laws) that may occur in the course of business operation. We have developed risk management systems (ALM system, market risk management system, credit risk management system, and DFA system) to measure and analyze each potential risk and operate the systems. We completed our project of improving the market risk management system in 2010 and laid the foundation for integrated risk management and consolidated market risk management. Especially, in 2012, we established the Self Risk Assessment System in an effort to enhance the efficiency of self-regulatory efforts to diagnose the risk management level and improve vulnerable sectors. We plan to use the said system as the basis for the operation risk management system that we are about to establish. Hyundai Insurance is committed to continually improving and upgrading the risk management system, coping with the risk-concentrated supervision system, and consolidating the enterprise risk management base. Risk-Oriented Management System Hyundai Insurance has bolstered the risk Mgt. system, risk analysis and control competence. The Risk Mgt. Committee affiliated with the board of directors establishes a enterprise risk Mgt. strategy each year, deliberates on the company s key management strategy including risk-based business plans, asset Mgt. plans, and reinsurance special terms and conditions revision. Thus, a riskconcentrated management system has been built. The Committee is regularly reported the risk status each quarter; when key issues occur, a provisional meeting of the Committee is held. The Committee consists of at least 2 directors or more nominated by the board, including the CEO. The Risk Management Operation Committee affiliated with the Risk Management Committee carries out the establishment of detailed policies on the decisions of the Risk Management Committee, prior negotiation on the agenda, postmanagement and inspection of action results, and review of risks in investment proposals. The Risk Management Operation Committee consists of officer from the department exclusively in charge of risk management and officers in underwriting, and asset management divisions; in principle the meeting is held prior to the Risk Management Committee meeting. For efficient and practical risk management, Hyundai Insurance nominates risk management departments per risk to manage the relevant risks. The former cyclically inspects company-wide risks and reports the results to the Committee. Furthermore, the department measures and analyzes the entire company s risk extent and that of each division and regularly carries out the stress test. The department is also equipped with a system to measure, report, and cope with the risk volatility early in case the management or environment rapidly changes. In addition, the department continually conducts education and seminars on the risk system, environmental changes, and risk management and makes an effort to promote a risk-concentrated management culture. While we at Hyundai Insurance constantly endeavor for risk-based management culture promotion, we shall strengthen the risk system response and internal risk management and enhance capital appropriateness by consolidating risk-based insurance and asset portfolio management. At the same time, Hyundai Insurance is committed to the solidification of a stable financial company base to cope proactively with the global financial crisis by bolstering crisis situation analysis. 30 2013 Annual Report Hyundai Marine & Fire Insurance 31

Vision Hi 2015 Report on Sustainability Activities for Customer Satisfaction Risk Management Activities FY2012 Management News 2013 yundai Marine & Fire Insurance FY2012 NEWS Apr Hold on opening ceremony of the Qingdao Branch of Hyundai Insurance (China) Co., Ltd. Awarded the excellent call center certification for 5 consecutive years in the call center sector of non-life insurance by 2012 Korea Service Quality Index May Hold on agreement ceremony for <Very Minor Confession>, a project for the prevention of school violence Jun Hold the 1st customer consultant organization ceremony Conducted 2012 internship program Jul Ranked No.1 in the long-term insurance sector for 4 consecutive years and in the automobile insurance sector for 8 consecutive years by 2012 Global Customer Satisfaction Index Awarded the Grand Prize in the product development and marketing support sectors by 2012 Seoul Economy Daily Aug Hosted the first counseling concert of <Very Minor Confession> to make Sept Launched the claim service team for the 2012 World Conservation Congress Oct Supported the campaign, 2012 Zero Injuries to Children in Traffic Accidents Awarded 2012 Korea 100 Best Companies to Work for (for 5 consecutive years, 10 times) Awarded Grand Prize in 2012 Global Excellent Awards in Customer Satisfaction sector (7 times) Ranked No.1 in the non-life insurance sector of Korea Rated A (stable) by A.M. Best Chosen as the first certified weather management company in a financial business Nov Inducted to the Hall of Fame in 2012 Korea Management Grand Awards in Customer Satisfaction sector Awarded the 2012 Harald Economy Insurance Grand Prize in innovative social contribution sector Awarded the 2012 Money Today Financial Innovation Grand Prize Rated BBB+ (Positive) by S&P Sustainability Index for 3 consecutive years 32 2013 Annual Report Hyundai Marine & Fire Insurance 33 Dec Agreement ceremony for <T-um Class>, a social contribution activity Chosen as 2012 excellent financial product by Financial Supervisory Service (100 Years Age Nursing Insurance) 2013 Jan Hold a completion ceremony for Bupyeong building Feb Hold a inauguration of the new CEOs Mar Launched Ashoka Korea Launched children s transportation safety certification programs

_Financial Report 1. Financial Highlights Classification FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Direct Premium 7,610,424 9,316,657 10,157,664 9,109,461 Net Premium 6,786,492 8,421,672 9,232,199 8,279,498 Earned Premium 6,634,219 8,357,856 9,212,849 8,262,144 Underwriting Income -204,486 30,465-212,672-190,726 Investment Income 440,670 520,718 684,884 614,209 Total Operating Income 236,184 551,183 472,212 423,483 2. Direct Premium 1) Overall Classification FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Commercial 808,224 910,859 986,170 884,404 Long-term 4,809,361 5,925,248 7,050,401 6,322,846 - Initial Premium 166,065 253,163 298,134 267,369 - In-force (recurring) Premium 4,643,297 5,672,085 6,752,266 6,055,478 Auto 1,925,636 2,040,907 1,988,159 1,782,995 Sub-total 7,543,221 8,877,014 10,024,730 8,990,245 Single Payment 67,203 439,643 132,935 119,217 Total 7,610,424 9,316,657 10,157,664 9,109,461 Note) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Net Income 159,485 392,756 333,381 298,979 (Adj. Net Income) 205,418 M/S Trend Including Hicar Direct Excluding Hicar Direct Total Assets 13,005,845 17,571,242 20,867,758 18,714,345 Invested Assets 10,313,054 13,422,220 16,290,616 14,609,534 17.5% Total Shareholders Equitie 1,152,819 1,744,234 2,101,924 1,885,019 17.3% (Adj. Total Shareholders Equities) 1,557,248 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011 on a non-consolidation basis. Note 3) Adjusted net income: Net income + Increase of Catastrophe reserves / Adjusted shareholders equities: Total shareholders equities + Catastrophe reserves 16.8% 16.9% 16.9% 16.8% 16.6% Direct Premium (Unit: KRW million) (Adj.) Net Income (Unit: KRW million) 15.9% 16.0% 16.1% FY2008 5,539,606 FY2008 155,421 FY2009 6,466,633 FY2009 224,983 FY2010 7,610,424 FY2010 205,418 FY2008 FY2009 FY2010 FY2011 FY2012 FY2011 FY2012 10,157,664 9,316,657 FY2011 FY2012 333,381 392,756 Note) Hicar Direct: Subsidiary where Hyundai Insurance has 100% stake Note) The Adjusted Net Income up to FY2010, Net Income in FY2011 are shown. In FY2012 (up to the end of March 2013), we posted 10,157.7 billion won in direct premiums, representing a 9.0% y-o-y increase. Our market share stood at 16.6% (or 17.3% with Hi Car Direct included), a 0.2%p y-o-y drop. By line, commercial insurance posted Total Asset (Unit: KRW million) (Adj.) Total Shareholders Equities (Unit: KRW million) growth of 8.3%, while long-term insurance, including single payment, posted growth of 12.9% growth, and auto insurance negative growth of 2.6%. FY2008 9,487,404 FY2008 1,153,595 FY2009 11,093,772 FY2009 1,423,800 FY2010 13,005,845 FY2010 1,557,248 FY2011 17,571,242 FY2011 1,744,234 FY2012 20,867,758 FY2012 2,101,924 Note) The Adjusted Total Shareholders Equities up to FY2010 and Total Shareholders Equities in FY2011 are shown. 34 2013 Annual Report Hyundai Marine & Fire Insurance 35

Channel Breakdown 3) Long-Term Details Bancassurance 5.0% Online 5.1% Others 0.9% Employee 7.2% Bancassurance 5.0% Online Others 5.1% 0.8% Employee 7.8% Bancassurance 5.5% Online Others 4.5% 1.1% Employee 7.4% Bancassurance 10% Online Others 3.6% 0.9% Employee 8.9% (Long-Term Total) Classification FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Protection 3,584,463 4,144,788 4,637,823 4,159,231 FY2008 FY2009 FY2010 FY2011 - Accident 1,430,757 1,688,195 1,925,697 1,726,978 - Drivers 345,517 363,905 361,055 323,797 Solicitor & Agency 81.8% Solicitor & Agency 81.3% Solicitor & Agency 81.5% Solicitor & Agency 76.6% - Property 415,575 584,480 670,382 601,203 - Disease 675,542 784,079 966,741 866,980 Bancassurance 7.9% Online Others 3.6% 1.0% Employee 8.1% - Convergence 717,073 724,130 713,948 640,274 Savings 927,225 1,647,140 1,854,286 1,662,936 Individual annuity 364,876 572,963 691,226 619,896 Total 4,876,564 6,364,891 7,183,335 6,442,063 FY2012 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) Single payment is excluded. The Company s sales are mostly derived from traditional channels such as solicitors and agencies. As the sales channels become more diversified, traditional channels are concentrating on the sales of customized products, enhancement of financial consulting capability, etc. when new channels are advancing their entry strategy in consideration of each market situation 2) Commercial details Classification Solicitor & Agency 79.5% Employee Solicitor & Agency Bancassurance Online Others Note1) Online includes Hyundai Insurance s subsidiary, Hicar Direct. Note2) Retirement lnsurance(pension) is included. FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Commercial 808,224 910,859 986,170 884,404 - Fire 31,382 33,775 38,858 34,848 - Marine 169,582 178,557 196,141 175,901 - Engineering 77,752 93,462 66,410 59,557 - Workers Compensation 16,462 19,642 18,938 16,984 - Liability 94,528 104,271 111,858 100,315 - Accident 138,823 149,162 172,988 155,137 - Property All Risk 169,857 175,638 178,548 160,123 - Overseas 66,467 73,305 79,463 71,263 - Others 43,372 83,047 122,965 110,276 (Initial Premium) Classification FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Protection 83,282 108,746 113,134 101,459 - Accident 39,807 37,054 44,843 40,215 - Drivers 9,847 4,404 5,364 4,810 - Property 17,511 46,546 24,997 22,418 - Disease 13,166 18,656 36,305 32,558 - Convergence 2,951 2,086 1,626 1,458 Savings 63,575 121,912 172,916 155,072 Individual annuity 19,208 22,505 12,085 10,838 Total 166,065 253,163 298,134 267,369 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) Single payment is excluded. Note) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 In FY2012, general insurance posted 986.2 billion won in direct premiums, an 8.3% increase. The other categories posted an even growth rate, with the exception of engineering/workers compensation insurance, which had posted a dramatic growth in the preceding year. 36 2013 Annual Report Hyundai Marine & Fire Insurance 37

Product Mix Combined Ratio Trend Individual annuity 6.0% Savings 15.7% Accident 19.4% Individual annuity 6.3% Savings 15.4% Accident 28.5% Individual annuity 7.5% Savings 19.0% Accident 29.3% Loss Ratio FY2008(K-GAAP) 75.8% Expense ratio FY2008 27.0% Combined Ratio FY2008 102.8% Convergence 20.2% Long-term insurance, a driver of sales growth, also posted a high growth rate in FY 2012, 12.9% higher than the previous year. We posted a growth rate of 17.8% for initial premiums. We posted growth of 4.0% and 28.1% in protection type and saving type, including individual annuity, respectively, mainly on the back of briskness of healthcare insurance, which showed a 41.7% y-o-y increase, despite the slowdown in property insurance. Recurring premiums recorded a high growth rate of 19.0% from the previous year due to the improvement in persistency ratio. In regards to the product mix, protection products accounted for 64.6%, savings products for 25.8%, and annuity for 9.6%. The proportion of protection products, who has more profit margin, is still high. Within the protection insurance products, accident insurance including coverage for medical expenses comprised the highest portion. 3. Operating Income 1) Underwriting Efficiency Classification FY2008 Protection 78.3% Disease 17.0% Savings 25.9% Drivers 9.9% Property 11.7% Individual annuity 9.0% FY2011 Protection 65.1% Convergence 11.4% Disease 12.3% Convergence 17.4% Accident 26.5% Property 9.2% Drivers 5.7% FY2009 Disease 15.4% Protection 78.3% Savings 25.8% Drivers 7.6% Property 9.4% Individual annuity 9.6% FY2012 Protection 64.6% Convergence 9.9% Disease 13.5% Convergence 14.7% Accident 26.8% Accident Drivers Property Disease Convergence Savings FY2010 FY2011 FY2012 (K-GAAP) (K-IFRS) (K-IFRS) Loss ratio 79.8% 82.2% 83.1% - Commercial 58.8% 69.2% 69.8% - Long-term 81.2% 83.3% 83.7% - Automobile 79.0% 80.8% 83.4% Expense ratio 22.5% 17.4% 19.2% - Personnel cost 4.3% 2.8% 2.8% - Maintenance cost 5.7% 4.7% 4.7% - Distribution cost 12.6% 11.2% 12.7% - Others 0.1% -1.3% -1.0% Combined ratio 102.4% 99.6% 102.3% Note 1) The figures above are ratios against earned premiums. Sales expense is the amount after the amortization of the acquisition cost. Note 2) K-IFRS was applied from FY2011; its performance is based on a separate standard. Drivers 5.0% Property 9.3% FY2010 Protection 73.5% Disease 13.9% Drivers 7.1% Property 8.5% Individual annuity Protection FY2009(K-GAAP) FY2010(K-GAAP) FY2011(K-IFRS) FY2012(K-IFRS) Our overall combined ratio rose by 2.7%p y-o-y to 102.3%, with a 0.9%p y-o-y increase in the loss ratio and a 1.8%p increase in the expense ratio. The loss ratio in general insurance recorded a 0.6%p y-o-y increase due to the occurrence of high-cost accidents, including typhoons. The loss ratio in long-term insurance recorded a 0.4%p y-o-y increase due to an increase in the risk loss ratio. Auto insurance recorded a 2.7%p y-o-y increase due to a drop in per-unit premium and heavy snow. The expense ratio recorded a 1.8%p y-o-y increase due to an excess amortization of the long-term insurance acquisition cost despite the effort to reduce expenses. 2) Long-Term Risk Loss Ratio Classification 78.2% 79.8% 82.2% 83.1% FY2009 FY2010 FY2011 FY2012 FY2009 FY2010 FY2011 FY2012 FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Risk premium (a) 1,146,242 1,329,543 1,473,764 1,321,681 Amount of loss incurred (b) 948,409 1,066,123 1,214,288 1,088,982 Risk loss ratio (b/a) 82.7% 80.2% 82.4% 82.4% Risk margin (a-b) 197,833 263,420 259,475 232,699 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) Based on the direct premium and including IBNR. Note 3) K-IFRS was applied from FY2011 on a non-consolidation basis. Long-Term Risk Margin 77.6% 159,380 82.9% 163,396 23.3% 22.5% 17.4% 19.2% 82.7% 197,833 80.2% 263,420 Loss Ratio 99.6% 101.5% 102.4% 102.3% (Unit: KRW million) Risk Margin 82.4% 259,475 FY2008 FY2009 FY2010 FY2011 FY2012 38 2013 Annual Report Hyundai Marine & Fire Insurance 39

In calculation of long-term insurance loss ratio, the loss amount includes interest on savings premiums. The interest is offset by the investment income, but the loss ratio does not reflect such investment performance. Therefore, the loss ratio of long-term insurance has some limitation in estimating profitability. Consequently, the risk loss ratio, which is compared to the actual loss amount divided by separated risk premiums from overall long-term insurance premium, is a way of more precisely measuring the true profitability of long-term insurance.the long-term risk-related loss ratio recorded 82.4%, a 2.2%p y-o-y increase. The risk margin (Risk premium minus claims amount) stood at 259.5 billion won, a 1.5% y-o-y decrease. 3) Investment Returns Classification FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Invested assets 10,313,054 13,422,220 16,290,616 14,648,518 Investment income 440,670 520,718 684,884 614,209 (Investment yield) 4.7% 4.5% 4.7% 4.7% - Interest income 404,429 483,024 570,548 511,671 - Dividend income 23,166 30,740 29,874 26,791 - Gain (loss) from trading securities 46,313 30,871 115,124 103,244 - Gain (loss) from derivatives and foreign currency -1,284 5-1,092-979 - Equity method gain (loss) -36,809-36,368-42,115-37,769 Others 4,855 12,446 12,545 11,250 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011 on a non-consolidation basis. Asset Volume & Yield Trend 5.0% 4.7% 4.7% 4.5% Invested yield (Unit: KRW million) Investment assets 4.7% 4. Asset Management 1) Asset Portfolio Classification Mar. 2011 Mar. 2012 Mar. 2013 (KRW million) (KRW million) (KRW million) (USD 1,000) Total assets 13,005,845 17,571,242 20,867,758 18,764,282 Invested assets 10,313,054 13,422,220 16,290,616 14,648,518 Cash & Deposit 337,586 596,418 728,365 654,946 Trading securities (Securities at fair value through profit or loss) 817,508 426,785 510,483 459,027 - Stocks 0 0 20,451 18,390 - Bonds 667,035 270,619 59,365 53,381 - Others 150,473 156,166 430,668 387,256 Available-for-sale securities 4,816,314 6,980,416 8,674,745 7,800,329 - Stocks 136,497 294,607 329,614 296,389 - Bonds 3,948,450 5,855,737 7,325,811 6,587,367 - Others 731,368 830,072 1,019,320 916,573 Held-to-maturity securities 596,359 1,052,536 1,325,255 1,191,669 Equity method securities 263,139 Securities Invested in Affiliates or Subsidiaries 244,434 252,752 227,274 Loans 2,637,617 3,231,876 3,837,551 3,450,725 Real estate 844,530 889,754 961,465 864,549 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011 on a non-consolidation basis. As of the end of March 2013, invested assets posted at KRW 16,290.6 billion. The total assets grew 18.8%, up to KRW 20,867.8 billion, on the basis of IFRS. It is important to match the investment portfolio with the liability structure because a large portion of the invested assets were generated from long-term insurance in which interest-related risks are high. Therefore, based on the ALM principle, invested assets are mostly comprised of interest-bearing assets such as bonds and loans. 16,290,616 13,422,220 10,313,054 8,724,761 7,512,310 FY2008 FY2009 FY2010 FY2011 FY2012 Since K-IFRS was adopted for the first time in FY2011 and some standards of financial data, such as equity method-based valuation on gain or loss of subsidiaries, were changed, it is not correct to directly compare FY2011 and FY2010. Invested assets stood at 16,290.6 billion won, a 21.4% y-o-y increase. Investment income stood at 684.9 billion won, a 29.3% y-o-y increase. We posted in the investment income on the back of an increase in gain on the valuation/disposition of marketable securities. 2) Bonds Detail Classification Mar. 2011 Mar. 2012 Mar. 2013 (KRW million) (KRW million) (KRW million) (USD 1,000) AAA 4,046,518 4,884,620 5,717,542 5,141,212 AA 1,053,641 2,168,483 2,868,470 2,579,328 A 70,989 102,053 102,507 92,175 Subtotal 5,171,148 7,155,156 8,688,520 7,812,714 (Ratio) 99.6% 99.9% 99.9% 99.9% BBB+ 20,190 6,992 7,416 6,668 Total 5,191,338 7,162,148 8,695,935 7,819,383 Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011; its performance is based on a separate standard. As of the end of March 2013, Hyundai Insurance managed KRW 8,695.9 billion in bonds. The credit ratings of these bonds were mostly AA or higher. Likewise, Hyundai Insurance has maintained stable risk management. 40 2013 Annual Report Hyundai Marine & Fire Insurance 41

3) Loan Details As of Mar. 31, 2013 Classification Retail Corporate Total (KRW million) (Ratio) (KRW million) (Ratio) (KRW million) (Ratio) Total 2,856,680 100.0% 978,428 100.0% 3,835,108 100.0% (Ratio) 74.5% 25.5% 100.0% Secured by real estate 2,008,273 70.3% 284,931 29.1% 2,293,204 59.8% Secured by an insurance contract 821,992 28.8% 0 0.0% 821,992 21.4% By 3rd-party guarantee 20,998 0.7% 28,500 2.9% 49,498 1.3% By security 0 0.0% 2,000 0.2% 2,000 0.1% Non-secured 4,266 0.1% 273,907 28.0% 278,173 7.3% Others 1,152 0.0% 389,090 39.8% 390,241 10.2% 5. Long-Term Savings Premium Reserve & Liability rate Classification Mar. 2011 Mar. 2012 Mar. 2013 (KRW million) (KRW million) (KRW million) (USD 1,000) Savings premium reserve 8,331,164 11,024,417 13,618,385 12,245,648 - Fixed 1,698,885 1,721,499 1,759,098 1,581,780 (%) 20.4% 15.6% 12.9% 12.9% - Floating 6,632,279 9,302,918 11,859,287 10,663,868 (%) 79.6% 84.4% 87.1% 87.1% Average liability rate 4.57% 4.59% 4.18% 4.18% - Fixed 6.08% 6.09% 5.99% 5.99% - Floating 4.19% 4.31% 3.91% 3.91% Investment Return of Separate Account 5.47% 5.09% 5.44% 5.44% Note 1) Before deducting bad debt reserves and deferred auxiliary revenue Note 2) K-IFRS was applied from FY2011; its performance is based on a separate standard. Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011 on a non-consolidation basis. Accounting for 23.6% of the invested assets, loans are one of the major investment assets. Within loan assets, 74.5% are for retail customers and 80% or more are secured by real estates and insurance policies. They are therefore safe and profitable. The average LTV (Loan to Value) of real estates-secured loans is about 50% and is strictly regulated by the financial regulator. The reserves of savings premiums to pay back to policyholders in the future are consistently increasing due to the sale boost of savings insurance. As of the end of March 2013, it increased by 23.5% to KRW 13,618.4 billion. The share of fixed savings decreased 2.7% points to 23.5% compared with the previous year. The average interest rate of the reserves is 4.18%. The corresponding investment return of separate accounts is 5.44% with a spread of about 120 bps. 4) Loan Quality Classification Mar. 2011 Mar. 2012 Mar. 2013 (KRW million) (KRW million) (KRW million) (USD 1,000) Total loans 2,660,765 3,227,558 3,835,108 3,448,528 Normal 2,644,652 3,209,446 3,793,793 3,411,377 Precautionary 3,507 4,164 19,627 17,648 Substandard 7,394 5,349 13,246 11,911 Doubtful 184 109 71 63 Estimated loss 5,028 8,490 8,372 7,528 Substandard & below 12,606 13,948 21,689 19,502 (NPL ratio) 0.5% 0.4% 0.6% 0.6% LLR (Loan Loss Reserve) 26,052 32,078 47,758 42,944 (Coverage ratio) 206.7% 230.0% 220.2% 220.2% Pr. & below ratio 0.6% 0.6% 1.1% 1.1% Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL reference rate 1,115.07:U$1 / BS reference rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011; its performance is based on a separate standard. The NPL (Non-Performing Loan) ratio of Hyundai Insurance was less than 0.6%, showing very good asset soundness. The coverage ratio is over 220%, which demonstrates the company s effort to faithfully accumulate sufficient reserves. 6. Capital Position Classification Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL reference rate 1,115.07:U$1 / BS reference rate 1,112.10:U$1 Note 2) Adj. net asset: Total shareholders equities + Catastrophe reserves Note 3) Both solvency ratio and RBC ratio were used in FY2010 but solvency ratio was abolished from FY2011. As of the end of March 2012, total shareholders equities stood at 2,101.9 billion won, a 20.5% y-o-y increase. The RBC ratio stood at 207.2%, showing a 2.2%p y-o-y decrease which is attributable to the bolstering of the capital adequacy system. A.M. Best upgraded the Company s credit rating from the A-Positive rating of the preceding year to that of A stable in recognition of our asset operating strategy focused on risk management and our ability to create profit. Standard and Poor s upgraded our credit rating from BBB+ Stable of the preceding year to BBB+ Positive. These ratings show that we maintain stable capital availability, which means we are capable of fulfilling our liabilities toward insurance contractors. Mar. 2011 Mar. 2012 Mar. 2013 (KRW million) (KRW million) (KRW million) (USD 1,000) Total shareholders equities 1,152,819 1,744,234 2,101,924 1,890,049 Catastrophe reserves 404,430 0 0 0 Adj. shareholders equities 1,557,248 1,744,234 2,101,924 1,890,049 Solvency ratio (RBC based) 204.3% 209.4% 207.2% 207.2% A.M. Best rating A- Stable A- Positive A Stable S&P rating BBB+ Stable BBB+ Stable BBB+ Positive 42 2013 Annual Report Hyundai Marine & Fire Insurance 43

7. Shareholders Dividend Classification FY2010 FY2011 FY2012 (KRW million) (KRW million) (KRW million) (USD 1,000) Net income 159,485 392,756 333,381 298,979 Total dividend 56,290 108,560 84,435 75,722 Dividend per share (KRW) 700 1,350 1,050 Dividend rate per par value 140.0% 270.0% 210.0% Payout ratio 35.3% 27.6% 25.3% Dividend yield 2.4% 4.0% 3.3% Note 1) Based on the exchange rates used for accounting settlement in FY2012: PL basic rate 1,115.07:U$1 / BS basic rate 1,112.10:U$1 Note 2) K-IFRS was applied from FY2011; its performance is based on a separate standard. Dividend Report of Independent Auditors To the Board of Directors and Shareholders of Hyundai Marine & Fire Insurance Co., Ltd. We have audited the accompanying separate statements of financial position of Hyundai Marine & Fire Insurance Co., Ltd. the Company as of March 31, 2013 and 2012, and the related separate statements of comprehensive income, changes in 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 audits. Dividend per share (Unit: KRW) Dividend per par value We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the FY2008 FY2009 FY2010 FY2011 500 700 700 1,350 FY2008 FY2009 FY2010 FY2011 100.0% 140.0% 140.0% 270.0% financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the 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 separate financial statements, referred to above, present fairly, in all material respects, FY2012 1,050 FY2012 210.0% the financial position of Hyundai Marine & Fire Insurance Co., Ltd. as of March 31, 2013 and 2012, and its financial performance and cash flows for the years then ended, in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ( Korean IFRS ). Pay Out Ratio Auditing standards and their application in practice vary among countries. The procedures and practices Total dividend (Unit: KRW million) Payout ratio used in the Republic of Korea to audit such financial statements may differ from those generally accepted and FY2008 FY2009 39,996 56,290 FY2008 FY2009 30.5% 34.7% applied in other countries. Accordingly, this report is for use by those who are informed about Korean auditing standards and their application in practice. FY2010 56,290 FY2010 35.3% Samil PricewaterhouseCoopers FY2011 108,560 FY2011 27.6% Seoul, Korea May 30, 2013 FY2012 84,435 FY2012 25.3% In FY2012, we posted net income of 333.4 billion won, a 15.2% y-o-y decrease. Dividend per share stood at 1,050 won, a 22% decrease from the 1,350 won of the preceding year due to the decrease in net profits. Total amount of dividend paid came to 84.4 billion won. Dividend payout ratio stood at 25.3%. This report is effective as of May 30, 2013, 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 separate financial statements and notes thereto. 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. 44 2013 Annual Report Hyundai Marine & Fire Insurance 45

Separate Statements of Financial Position March 31, 2013 and 2012 2013 2012 Assets. Cash and cash equivalents(note 4) 718,489,101 403,440,255. Financial assets 1. Financial assets at fair value through profit or loss(note 5,6,7) 140,895,607 272,033,800 2. Available-for-sale financial assets(note 5,7,32) 8,674,745,368 6,980,415,845 3. Held-to-maturity investments(note 5,32) 1,325,254,616 1,052,536,434 4. Derivatives held for hedging(note 6,7) 17,926,251 10,177,443 5. Loans receivable(note 5) 3,837,550,958 3,231,875,836 6. Other receivables(note 5,17,32) 928,391,912 826,142,591. Investments in subsidiaries and associates(note 7,8) 252,751,584 244,434,451. Property and equipment(note 9) 537,625,859 482,459,820. Investment property(note 10) 463,159,542 447,232,070. Intangible assets(note 11) 64,235,231 76,116,296. Other assets 1.Reinsurance assets(note 12) 777,925,112 793,288,015 2.Compensation receivables(note 13) 28,674,058 26,780,356 3.Deferred acquisition costs(note 14) 2,008,597,413 1,833,181,044 4.Others(Note 15) 13,020,376 13,007,190. Special accounts assets(note 24) 1,078,514,867 878,120,935 Total assets 20,867,757,855 17,571,242,381 Liabilities. Insurance liabilities(note16) 16,600,904,004 13,894,958,918. Financial liabilities 1. Financial liabilities at fair value through profit or loss(note 6,7,18) - 2,636,425 2. Other financial liabilities measured at amortized cost(note 17,18,32) 456,287,828 419,761,382 3. Derivatives held for hedging(note 6,7,18) 5,507,888 3,634,822 4. Other financial liabilities(note 18) 71,188,488 71,752,904. Other liabilities 1. Provisions for restoration costs(note 19) 1,580,151 1,544,993 2. Income taxes payable 29,952,100 59,960,021 3. Deferred income tax liabilities(note 23) 220,192,286 181,540,411 4. Retirement benefit obligations(note 20) 49,410,351 44,343,792 5. Others(Note 21) 270,822,934 247,917,268. Special accounts liabilities(note 24) 1,059,988,284 898,957,874 Total liabilities 18,765,834,314 15,827,008,810 Equity. Capital stock(note 22) 44,700,000 44,700,000. Capital surplus(note 22) 114,222,845 114,222,845. Capital adjustment(note 22) (20,044,215) (20,044,215). Accumulated other comprehensive income(note 22) 383,115,384 250,247,050 V. Retained earnings(note 22) 1,579,929,527 1,355,107,891 Total equity 2,101,923,541 1,744,233,571 Total liabilities and equity 20,867,757,855 17,571,242,381 The accompanying notes are an integral part of these separate financial statements. 46 2013 Annual Report Hyundai Marine & Fire Insurance 47

Separate Statements of Comprehensive Income Years Ended March 31, 2013 and 2012 2013 2012. Operating Income 1. Insurance income 1) Premium income(note 25,26,36,38) 10,183,658,108 9,319,291,236 2) Reinsurance income(note 26) 652,041,584 574,729,759 3) Changes in reinsurance assets 9,802,239 164,193,350 4) Expenses recovered 138,773,877 149,826,085 5) Gain on foreign currency transactions(note 27,32) 9,351,861 7,966,833 6) Income from compensation receivables(note 13) 1,893,702-7) Reversal of allowance for bad debts - 738,192 8) Others 2,196,265 1,641,704 10,997,717,636 10,218,387,159 2. Investment Income 1) Interest income(note 27) 575,500,311 485,730,666 2) Gain on valuation on financial assets(note 27) 1,267,841 9,771 3) Gain on financial assets transactions(note 27) 177,339,391 67,689,623 4) Gain on valuation of financial derivatives(note 6,27) 13,143,241 913,002 5) Gain on financial derivatives transactions(note 27) 6,264,179 6,768,003 6) Gain on foreign currency transactions(note 27,32) 9,756,971 11,169,804 7) Dividend income(note 27) 29,874,101 30,740,444 8) Fee income 178,690 3,364,305 9) Rental income(note 10) 28,389,209 28,306,130 10) Others 4,354,873 3,249,479 846,068,807 637,941,227 3. Special accounts income(note 24) 44,286,231 53,646,708 4. Fees from special accounts(note 24) 3,565,937 2,440,835 11,891,638,611 10,912,415,929. Operating expenses 1. Insurance expenses 1) Increase in insurance liabilities 2,733,527,777 2,966,715,154 2) Insurance claims paid(note 25,26) 3,256,059,796 2,953,919,693 3) Claim survey expenses(note 28) 227,054,779 206,794,282 4) Dividends received 2,713,243 3,239,936 5) Refunds 2,122,413,583 1,543,843,348 6) Reinsurance expenses(note 26) 951,459,345 897,619,598 7) Management expenses(note 29,36) 1,066,973,319 1,007,536,675 8) Amortization of deferred acquisition costs(note 14) 858,212,328 615,761,381 9) Loss on foreign currency transactions(note 27,32) 8,301,561 8,997,102 10) Loss from compensation receivables(note 13) - 1,698,153 11) Others 3,482,049 3,008,126 11,230,197,780 10,209,133,448 2. Investment expenses 1) Interest expense(note 27) 4,681,770 2,598,826 2) Loss on valuation on financial assets(note 27) 44,969,827 29,047,765 3) Loss on financial assets transactions(note 27) 10,631,515 10,540,356 4) Loss on valuation of financial derivatives(note 6,27) 5,732,858 8,802,578 5) Loss on financial derivatives transactions(note 27) 8,670,107 5,600,559 6) Loss on foreign currency transactions(note 27,32) 15,853,217 4,442,604 7) Asset management expenses(note 30) 42,114,709 36,368,348 8) Maintenance expenses on property(note 30) 12,233,758 11,612,024 9) Depreciation expenses on investment property(note 10,30) 7,344,667 7,051,342 10) Others 799,674 3,246,296 153,032,102 119,310,698 3. Special accounts expenses(note 24) 44,286,231 53,646,708 4. Fees paid on special accounts 152,604 587,284 11,427,668,717 10,382,678,138. Operating profit 463,969,894 529,737,791. Non-operating income 1. Gain on disposal of securities of subsidiaries and associates - 2,651,673 2. Gain on disposal of property and equipment 105,849 34,828 3. Gain on insurance settlements - 17,853 4. Miscellaneous gains 2,171,183 2,674,767 2,277,032 5,379,121. Non-operating expenses 1. Impairment loss on investments in subsidiaries and associates(note 8) 8,152,501-2. Loss on disposal of property and equipment 239,217 588,182 3. Impairment loss on intangible assets(note 11) 1,449,917 326,800 4. Donations and contributions 3,321,302 1,652,138 5. Miscellaneous loss 10,678,428 5,381,822 23,841,365 7,948,942. Profit before income tax expense 442,405,561 527,167,970. Income tax expense(note 23) 109,024,350 134,412,276. Profit for the year(note 22) 333,381,211 392,755,694. Other comprehensive income (loss) 1. Change in value of available-for-sale financial assets(note 5) 116,324,739 7,898,640 2. Change in value of investment in subsidiaries and associates(note 8) (78,350) (1,273,209) 3. Currency translation differences(note 32) (3,635,270) 34,435 4. Cash flow hedges(note 6) 4,662,067 2,218,194 5. Special accounts(note 24) 15,595,148 1,001,317 6. Revaluation surplus - (4,126,463) 132,868,334 5,752,914. Total comprehensive income for the year 466,249,545 398,508,608 I. Earnings per share (in Korean won)(note 33) 1. Basic earnings per share 4,146 4,884 2. Diluted earnings per share 4,146 4,884 The accompanying notes are an integral part of these separate financial statements. 48 2013 Annual Report Hyundai Marine & Fire Insurance 49

Separate Statements of Changes in Equity Separate Statements of Cash Flows Capital Stock Capital Surplus Capital adjustments Accumulated Other Comprehensive Income Retained Earnings Balance at April 1, 2011 44,700,000 114,685,621 (20,044,215) 226,453,831 1,036,682,652 1,402,477,889 Cumulative effect on correction of accounting process(note 39) - - - 18,040,305 (18,040,305) - Adjusted Balance 44,700,000 114,685,621 (20,044,215) 244,494,136 1,018,642,347 1,402,477,889 Comprehensive income Profit for the year - - - - 392,755,694 392,755,694 Change in value of available-for-sale financial assets - - - 7,898,640-7,898,640 Change in value of investment in subsidiaries and associates - - - (1,273,209) - (1,273,209) Currency translation differences - - - 34,435-34,435 Gains on valuation of cash flow hedge - - - 2,218,194-2,218,194 Other comprehensive income in special accounts - - - 1,001,317-1,001,317 Revaluation surplus due to the change in the korean tax rate - - - (4,126,463) - (4,126,463) Total comprehensive income - - - 5,752,914 392,755,694 398,508,608 Transactions with equity holders of the company Annual dividends - - - - (56,290,150) (56,290,150) Change in value due to the change in the korean tax rate Revaluation surplus - (462,776) - - - (462,776) Balance at March 31, 2012 44,700,000 114,222,845 (20,044,215) 250,247,050 1,355,107,891 1,744,233,571 Balance at April 1, 2012 44,700,000 114,222,845 (20,044,215) 250,247,050 1,355,107,891 1,744,233,571 Comprehensive income Profit for the year - - - - 333,381,211 333,381,211 Change in value of available-for-sale financial assets - - - 116,324,739-116,324,739 Change in value of investment in subsidiaries and associates - - - (78,350) - (78,350) Currency translation differences - - - (3,635,270) - (3,635,270) Gains on valuation of cash flow hedge - - - 4,662,067-4,662,067 Other comprehensive income in special accounts - - - 15,595,148-15,595,148 Total comprehensive income - - - 132,868,334 333,381,211 466,249,545 Transactions with equity holders of the company Annual dividends - - - - (108,559,575) (108,559,575) Balance at March 31, 2013 44,700,000 114,222,845 (20,044,215) 383,115,384 1,579,929,527 2,101,923,541 The accompanying notes are an integral part of these separate financial statements. Years ended March 31, 2013 and 2012 Total Years ended March 31, 2013 and 2012 2013 2012 I. Cash flows from operating activities 1. Cash generated from operations(note 34) 1,862,212,540 2,491,987,192 2. Interests received 564,203,908 479,391,543 3. Interests paid (28,014) (402,077) 4. Dividends received 27,461,362 30,080,880 5. Income tax paid (138,786,734) (53,822,683) Net cash generated from operating activities 2,315,063,062 2,947,234,855 II. Cash flows from investing activities 1. Disposal of investment in subsidiaries and associates 10,000,000 22,651,673 2. Disposal of available-for-sale financial assets 2,689,425,608 1,135,068,054 3. Disposal of held-to-maturity investments 272,734,146 20,071,128 4. Disposal of financial derivatives 6,390,831 8,372,727 5. Disposal of property and equipment 195,151 541,498 6. Disposal of investment property - 677,258 7. Disposal of intangible assets 358,000-8. Decrease in guaranteed deposits 5,548,439 5,079,616 9. Decrease in deposited money 3,921,646-10. Increase in deposits, net (36,084,736) (180,773,370) 11. Acquisition of investments in subsidiaries and associates (26,573,000) - 12. Acquisition of available-for-sale financial assets (4,148,786,696) (3,281,491,494) 13. Acquisition of held-to-maturity investments (546,341,232) (479,926,575) 14. Acquisition of property and equipment (100,451,522) (44,983,570) 15. Acquisition of investment property - (153,977) 16. Increase in intangible assets (10,244,259) (12,261,646) 17. Increase in guaranteed deposits (4,648,326) (2,103,975) 18. Increase in deposited money (3,532,665) (2,203,015) Net cash used in investing activities (1,888,088,615) (2,811,435,668). Cash flows from financing activities 1. Increase in leasehold deposits received 19,263,929 1,383,986 2. Decrease in leasehold deposits received (16,768,778) (1,015,061) 3. Payment of dividends (108,559,575) (56,290,150) Net cash used in financing activities (106,064,424) (55,921,225). Exchange gains on cash and cash equivalents (5,861,177) 658,029. Net increase in cash and cash equivalents 315,048,846 80,535,991. Cash and cash equivalents at beginning of year 403,440,255 322,904,264. Cash and cash equivalents at the end of year 718,489,101 403,440,255 The accompanying notes are an integral part of these separate financial statements. 50 2013 Annual Report Hyundai Marine & Fire Insurance 51

Notes to Separate Financial Statements 2.1.1 Changes in Accounting Policy and Disclosures (1) New and amended standards early adopted by the Company March 31, 2013 and 2012 The Company early applied the following amended and enacted standards for the annual period beginning on January 1, 2013: 1. General Information Hyundai Marine & Fire Insurance Co., Ltd. ( the Company ) was incorporated on March 5, 1955, under the laws of the Republic of Korea to engage in providing non-life insurance services and other related insurance services. As approved by the shareholders on October 17, 1985, the Company changed its name from Dongbang Fire & Marine Insurance Co., Ltd. to Hyundai Marine & Fire Insurance Co., Ltd. The Company s capital stock was offered for public ownership on August 24, 1989, and all of its issued and outstanding shares are listed on the Korea Exchange. - Amendment of Korean IFRS 1001, Presentation of Financial Statements: Change in accounting policy, retrospective restatement or reclassification Korean IFRS 1001, Presentation of Financial Statements, requires the Company to present a statement of financial position at the beginning of the preceding period if: (a) it applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements or reclassifies items in its financial statements; and (b) the retrospective application, retrospective restatement or the reclassification has a material impact on the information in the statement of financial position at the beginning of the preceding period. The comparative statement of financial position at the beginning of the preceding period was not presented since the retrospective restatement of items in its financial statements does not have a material impact on the statement of financial position at the beginning of the preceding period. As of March 31, 2013, the Company s major shareholder and his percentage of ownership are as follows: Name of Shareholder Number of Shares Percentage of Ownership(%) Chung Mong-Yoon 19,487,100 21.8 2. Significant Accounting Policies The principal accounting policies applied in the preparation of these separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of Presentation The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with the International Financial Reporting Standards as adopted by the Republic of Korea ( Korean IFRS ). The accompanying separate financial statements have been condensed, restructured and translated into English from the Korean language financial statements. Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Company s financial position, financial performance or cash flows, is not presented in the accompanying separate financial statements. The Company s financial statements for the annual period beginning on April 1, 2011, have been prepared in accordance with Korean IFRS. These are the standards, subsequent amendments and related interpretations issued by the International Accounting Standards Board ( IASB ) that have been adopted by the Republic of Korea. The preparation of the separate financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Company s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the separate financial statements are disclosed in Note 3. (2) New and amended standards adopted by the Company - Amendment of Korean IFRS 1001, Presentation of Financial Statements In accordance with amendment to Korean IFRS 1001, Presentation of Financial Statements, the Company changed its accounting policy to present operating income and expenses as operating income which occurred from the Company s major operating activities less operating expenses. The Company applies the accounting policy retroactively in accordance with the amended standards and the comparative separate statement of the comprehensive income is restated by reflecting adjustments resulting from the retrospective application. Effects of changes in accounting policies are as follows: There are no impacts on profit for the year, basic earnings per share and diluted earnings per share for the years ended March 31, 2013 and 2012. Non-adjusted amount Adjustment(*1) Adjusted amount Operating income 442,405,561 21,564,334 463,969,895 Non-adjusted amount Adjustment(*1) Adjusted amount Operating income 527,167,970 2,569,821 529,737,791 (*1) Details of changed amounts that were classified as operating income or expense before the amendment, but are now excluded from operating income or expense, are as follows: 52 2013 Annual Report Hyundai Marine & Fire Insurance 53

Non-operating income Gain on disposal of securities of subsidiaries and associates - 2,651,673 Gain on disposal of property and equipment 105,849 34,828 Gain on insurance settlement - 17,853 Miscellaneous non-operating gains 2,171,183 2,674,767 Total 2,277,032 5,379,121 Non-operating expense : Impairment of securities of subsidiaries and associates 8,152,501 - Loss on disposal of property and equipment 239,217 588,182 Impairment of intangible assets 1,449,917 326,800 Donations and contributions 3,321,302 1,652,138 Miscellneous non-operating losses 10,678,429 5,381,822 Total 23,841,366 7,948,942 2.2 Subsidiaries and Associates The financial statements of the Company are separate financial statements based on Korean IFRS 1027, Consolidated and Separate Financial Statements. Investments in subsidiaries and associates are recognised at cost under the direct equity method. Management applied the carrying amounts under the previous Korean GAAP at the time of first adoption of the Korean IFRS as deemed cost of investments. The Company recognizes dividend income from subsidiaries and associates in profit or loss when its right to receive dividend is established. 2.3 Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker (Note 38). The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board of directors that makes strategic decisions. (3) New standards and interpretations not yet adopted New standards, amendments and interpretations issued but not effective for the financial year beginning April 1, 2012, and not early adopted by the Company are as follows: - Amendment of Korean IFRS 1001, Presentation of Financial Statements Korean IFRS 1001, Presentation of Financial Statements, requires other comprehensive income items to be presented into two groups on the basis of whether they are potentially reclassifiable to profit or loss subsequently. This is effective for annual periods beginning on or after July 1, 2012, with early adoption permitted. Company is assessing the impact of application of the amendments to Korean IFRS 1001 on its financial statements. - Amendments to Korean IFRS 1019, Employee Benefits According to the amendments to Korean IFRS 1019, Employee Benefits, the use of a corridor approach is no longer permitted, and therefore all actuarial gains and losses incurred are immediately recognized in other comprehensive income. All past service costs incurred from changes in pension plan are immediately recognized, and expected returns on interest costs and plan assets that used to be separately calculated are now changed to calculating net interest expense (income) by applying discount rate used in measuring defined benefit obligation in net defined benefit liabilities (assets). This amendment will be effective for annual periods beginning on or after January 1, 2013, and the Company is assessing the impact of application of the amended Korean IFRS 1019 on its separate financial statements. - Enactment of Korean IFRS 1113, Fair Value Measurement Korean IFRS 1113, Fair Value Measurement, aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across Korean IFRSs. Korean IFRS 1113 does not extend the use of fair value accounting but provides guidance on how it should be applied where its use is already required or permitted by other standards within the Korean IFRSs. This amendment will be effective for annual periods beginning on or after January 1, 2013, and the Company is assessing the impact of application of the amended Korean IFRS on its separate financial statements. - Amendment to Korean IFRS 1032, Financial Instruments: Presentation Amendment to Korean IFRS 1032, Financial Instruments: Presentation, clarifies the facts that; a right to offset must not be contingent on a future event and legally enforceable in all of circumstances; and if an entity can settle amounts in a manner such that outcome is, in effect, equivalent to net settlement, the entity will meet the net settlement criterion. This amendment will be effective for annual periods beginning on or after January 1, 2014, with early adoption permitted. The Company expects that the application of this amendment would not have a material impact on its separate financial statements. 2.4 Foreign Currency Translation (1) Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates the functional currency. The separate financial statements are presented in Korean won, which is the Company s functional and presentation currency. (2) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses are presented in the income statement within operating income and expenses. Changes in the fair value of monetary securities denominated in foreign currency classified as available-for-sale are analyzed between translation differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in profit or loss, and other changes in carrying amount are recognized in other comprehensive income. Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets, such as equities classified as available-for-sale, are included in other comprehensive income. 2.5 Cash and Cash Equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less. 2.6 Financial Instruments 54 2013 Annual Report Hyundai Marine & Fire Insurance 55

2.6.1 Classification The Company classifies its financial instruments in the following categories: financial assets and liabilities at fair value through profit or loss, loans and receivables, available-for-sale financial assets, held-to-maturity investments, and other financial liabilities at amortized cost. The classification depends on the purpose for which the financial assets and liabilities were acquired. Management determines the classification of financial instruments at initial recognition. (1) Financial assets and liabilities at fair value through profit or loss Financial assets and liabilities at fair value through profit or loss are financial instruments held for trading. Financial assets and liabilities are classified in this category if acquired or incurred principally for the purpose of selling or repurchasing it in the short term. Derivatives that are not subject to hedge accounting and financial instruments having embedded derivatives are also included in this category. (2) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The Company s loans and receivables consist of cash and deposits, loans receivable and other receivables. Gains or losses arising from changes in the fair value of the financial assets carried at fair value through profit or loss are presented in the income statement within operating income and expenses in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognized in income when the Company s right to receive dividend payments is established. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognized in other comprehensive income. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognized in equity are reported in the statement of income as operating income and expenses. Interest on available-for-sale and held-to-maturity investments calculated using the effective interest method is recognized in the statement of income as part of operating income. Dividends on available-for-sale equity instruments are recognized in the statement of income as part of operating income when the Company s right to receive dividend payments is established. 2.6.3 Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. (3) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Company intends and is able to hold to maturity and are classified as Held-to-maturity securities in the statements of financial position. If the Company were to sell other than an insignificant amounts of held-to-maturity investments, the whole category would be tainted and reclassified as available-for-sale. 2.6.4 Derecognition Financial assets are derecognized when the contractual rights to receive cash from the investments have expired or have been transferred, and the Company has substantially transferred all risks and rewards of ownership or when the risk and rewards of ownership of transferred assets have not been substantially retained or transferred and the Company has not retained control over these assets. (4) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. (5) Financial liabilities measured at amortized cost The Company classifies non-derivative financial liabilities as financial liabilities carried at amortized cost, except for financial liabilities at fair value through profit or loss or financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition. In this case, the transferred asset continues to be recognized and a financial liability is measured as the consideration received. 2.6.2 Recognition and measurement Regular purchases and sales of financial assets are recognized on the trade date. Investments are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the statement of comprehensive income. Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables are subsequently carried at amortized cost using the effective interest rate method. 2.7 Impairment of Financial Assets (1) Assets carried at amortized cost The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a loss event ) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or a group of financial assets that can be reliably estimated. The criteria that the Company uses to determine that there is objective evidence of an impairment loss include: - Significant financial difficulty of the issuer or obligor; - Delinquency in interest or principal payments for more than three months; - For economic or legal reasons relating to the borrower s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; - It becomes probable that the borrower will enter bankruptcy or other financial reorganization; - The disappearance of an active market for that financial asset because of financial difficulties; or - Observable data suggesting that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, even though the decrease cannot be identified with respect to individual financial assets in the portfolio, such as: 1) adverse changes in the payment status of borrowers in the portfolio; 2) national or local economic conditions that correlate with defaults on the assets in the portfolio. 56 2013 Annual Report Hyundai Marine & Fire Insurance 57

Impairment loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted using the initial effective interest rate. The carrying amount of the asset is reduced by the impairment loss amount and the amount of the loss is recognized in the statement of comprehensive income. In practice, the Company may measure impairment loss based on the fair value of financial asset using an observable market price. If, in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (for example, an improvement in debtor s credit rating), the reversal of the previously recognized impairment loss is recognized in the statement of income. (2) Assets classified as available-for-sale The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. For debt securities, the Company uses the criteria refer to in (a) above. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost, for example decrease in fair value of the investments by more than 30% from its cost for more than six months, is also evidence that the asset is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss is removed from equity and recognized in the income statement. Impairment losses recognized in the separate statement of comprehensive income on equity instruments are not reversed through the statement of comprehensive income. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed through the statement of income. (2) Cash flow hedges The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognized directly in other comprehensive income and the ineffective portion of the gain or loss on the hedging instrument is recognized in profit or loss. The associated gains or losses that were previously recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the same period or periods during which the hedged forecast cash flows affects profit or loss. Cash flow hedge accounting is discontinued prospectively if the hedging instrument expires or sold, terminated or exercised, or the hedge no longer meets the criteria for hedge accounting or the Company revokes the designation. When the cash flow hedge accounting is discontinued, the cumulative gains or losses on the hedging instrument that have been recognized in other comprehensive income are reclassified to profit or loss over the period in which the forecast transaction occurs. If the forecast transaction is no longer expected to occur, the cumulative gains or losses that had been recognized in other comprehensive income are immediately reclassified to profit or loss. 2.9 Property and Equipment All property and equipment are stated at historical cost or deemed cost less accumulated depreciation and accumulated impairment loss. When the deemed cost is applied, the revaluation amount of property and equipment is considered as fair value at the date of transition to Korean IFRS and as fair value at the date of the revaluation under the previous standard. Subsequent costs are included in the asset s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate the difference between their cost and their residual values over their estimated useful lives, as follows: 2.8 Derivative Financial Instruments and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The resulting gain or loss is recognized in operating income or expenses. Description Buildings Overseas real estate Vehicles Furniture and fixtures Estimated useful life 26-52 years 31 years 5 years 5 years The Company designates certain derivatives as either: (1) hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedge); (2) hedges of a particular risk associated with a recognized asset or liability or a highly probable forecast transaction (cash flow hedge); The Company documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The fair values of various derivative instruments used for hedging purposes are disclosed in Note 6. Movements on the hedging reserve in other comprehensive income are shown in Note 6. (1) Fair value hedge Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the statement of income, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The gain or loss is recognized in the statement of income within operating income or expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the period to maturity. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. Gain and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within operating income and expenses in the statement of comprehensive income. 2.10 Investment Property Investment property is held to earn rentals or for capital appreciation or both. Investment property also includes property that is being constructed or developed for future use as investment property. Investment property is measured initially at its cost including transaction costs incurred in acquiring the asset. After recognition as an asset, investment property is carried at cost less accumulated depreciation and impairment losses. Subsequent costs are include in the asset s carrying amount or recognized as a separate asset, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. 58 2013 Annual Report Hyundai Marine & Fire Insurance 59

Land held for investment is not depreciated. Investment property, except for land, is depreciated using straight-line method over their useful lives from 26 to 52 years. The depreciation method, the residual value and the useful life of an asset are reviewed at the end of each financial year and, if management judges that previous estimates should be adjusted, the change is accounted for as a change in an accounting estimate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within operating income and expenses in the statement of comprehensive income. The fair value of investment property disclosed in Note 10 reflects market conditions at the end of the reporting period, with adjustment that reflects specific asset s characteristics, condition and location. The book value for financial reporting purpose is determined based on the evaluation of the investment property by an independent valuer, who holds a recognized and relevant professional qualification and has recent experience in the location and category of the investment property being valued. 2.11 Intangible Assets (1) Computer software Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company are recognized as intangible assets when the following criteria are met: - it is technically feasible to complete the software product so that it will be available for use; - management intends to complete the software product and use or sell it; - there is an ability to use or sell the software product; - it can be demonstrated how the software product will generate probable future economic benefits; adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and - the expenditure attributable to the software product during its development can be reliably measured. Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads. Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Computer software development costs recognized as assets are amortized over their estimated useful lives, which does not exceed five years. (2) Membership rights Membership rights are regarded as intangible assets with indefinite useful life and not amortized because there is no foreseeable limit to the period over which the asset is expected be utilized. 2.12 Impairment of Non-financial Assets Intangible assets with indefinite useful lives are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets, other than goodwill, that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. 2.13 Lease Leases of property, plant and equipment where the Company has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance charges, are included in borrowings. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor are charged to the statement of comprehensive income on a straight-line basis over the period of the lease. 2.14 Deferred Acquisition Cost In accordance with Article 31 of Accounting Standards for Insurance Industry and the Article 6-3 of Regulations on Supervision of Insurance Business ( RSIB ), initial costs arising from long-term insurance contracts sold, excluding any excess amount over estimated acquisition costs, are deferred and amortized over the term of contracts or seven years, whichever is shorter. For cancellations, any unamortized portion is written off immediately. 2.15 Classification of Insurance and Investment Contract The Company classifies a contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder as an insurance contract until all rights and obligations are extinguished or expire. After classifying contract by quantitative basis, Korean IFRS 1104, Insurance Contracts, is applied to insurance contract and financial instruments that it issues with a discretionary participation feature and Korean IFRS 1039, Financial Instruments : Recognition and Measurement, is applied to financial instruments that it issues without a discretionary participation feature. (3) Other intangible assets Separately acquired trademarks and licenses are shown at historical cost. Trademarks and licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of trademarks and licenses over their estimated useful lives of five years. 60 2013 Annual Report Hyundai Marine & Fire Insurance 61

2.16 Insurance Liabilities In accordance with Recognitions on Supervision of Insurance Business ( RSIB ), the Company is required to maintain insurance liabilities at an amount determined as follows: (1) Premium Reserves Premium reserves represent the difference between the present value of claims payable to policyholders and the present value of net premiums to be collected after the end of reporting period for long-term insurance contracts in effect as of the end of reporting period. (2) Reserves for Outstanding Claims Reserves for outstanding claims represent estimated claims payable for accidents covered by insurance which occurred befor the end of reporting period and for which the amount of claims payable is not yet determined. The expenses incurred in the course of settlement of insured events, such as lawsuits, are added to and the claims to be reimbursed through sale of pledged assets or exercise of reimbursement rights, which are obtained in the course of settlement of the insured event, are deducted from the reserves. (3) Unearned Premium Reserves 2.19 Compensation Receivables Compensation receivables represent recoverable claims arising from accidents. These claims are deducted from insurance reserves. Compensation receivables are calculated by multiplying the average recovery ratio (recovery amount/net claims) for the last three years from the prior year s reporting period date to the amount of net claims for the last year in accordance with RSIB. 2.20 Reinsurance Contract According to Korean IFRS 1104, Insurance Contracts, as a policyholder of reinsurance contracts, the Company shall not offset reinsurance assets against the related insurance liabilities and income or expense from reinsurance contracts against the expense or income from the related insurance contracts. The Company considers whether its reinsurance assets are impaired and if reinsurance assets are impaired, the Company reduces its carrying amount and recognizes that impairment loss in profit or loss. 2.21 Contingency Reserves Non-life insurance companies reserve a portion of net premium written by line of insurance as contingency reserves, up to 40 50% of the current year earned premiums. These reserves can be used against exceptionally large claims in the future. Unearned premium reserves represent premiums due, but whose recognition is deferred. (4) Policyholders Dividend Reserves Policyholders dividend reserves represent amounts payable to policyholders due to mortality gains, interest gains and expense gains. 2.22 Regulatory Reserve for Credit Losses The RSIB requires the Company to appropriate, as a legal reserve, an amount for allowance for doubtful accounts which should be established according to the regulation. The reserve is not available for the payment of cash dividends. (5) Policyholders Profit Dividend Reserves Pursuant to relevant laws and contracts, the Company may establish policyholders profit dividend reserves in accordance with the operating results of related insurance products. The reserve may be used to pay the participating policyholder dividend or additional dividend. 2.23 Special Account Assets and Liabilities In accordance with Article No. 108 of the Insurance Business Law and Article No. 52 of its implementing ordinance, all assets and liabilities related to retirement benefit insurance are managed and accounted for separately. According to RSIB, the Company has changed the presentation of special account assets (liabilities). Due from (to) special account has been presented as a deduction from special liabilities (assets). 2.17 Liability Adequacy Test The Company assesses at the end of each reporting period whether its recognized insurance liabilities are adequate, using current estimates of future cash flows under its insurance contracts. The test considers current estimates of all contractual cash flows, and of related cash flows such as claims handling costs, as well as cash flows resulting from embedded options and guarantees. If that assessment shows that the carrying amount of its insurance liabilities is inadequate in the light of the estimated future cash flows, the entire deficiency shall be recognized in profit or loss. 2.18 Claim Adjustment Expenses Claims and loss adjustment expenses are charged to income as incurred based on the estimated liability for compensation owed to contract holders or third parties damaged by the contract holders. They include direct and indirect claims settlement costs and arise from events that have occurred up to the end of the reporting period even if they have not yet been reported to the Company. 2.24 Provisions Provisions are recognized when: the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense. The Company maintains for the corporate pension policies from general accounts in accordance with RSIB. 62 2013 Annual Report Hyundai Marine & Fire Insurance 63

2.25 Current and Deferred Income Tax The tax expense for the period comprises current and deferred tax. Tax is recognized in the statement of comprehensive income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the separate financial statements. However, deferred tax assets and liabilities are not recognized if they arise from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. 2.26 Employee Benefits (1) Defined benefit liability The Company operates pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Company has defined benefit plans. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, together with adjustments for unrecognized past-service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in profit or loss in the period in which they arise. Past-service costs are recognized immediately in income, while costs are amortized over the vesting period. 2.27 Share Capital Where the Company purchases its own equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs is deducted from equity attributable to the Company s equity holders until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received is included in equity attributable to the Company s equity holders. 2.28 Revenue Recognition The Company recognizes premium income at the due date. However, the revenues from the automobile insurance and longterm and annuities contracts are recognized at the time of receipt. 2.29 Interest income Interest income is recognized using the effective interest method according to the time passed. When a loan and receivable is impaired, the Company reduces the carrying amount to its recoverable amount and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is recognized using the original effective interest rate. 2.30 Dividend income Dividend income is recognized when the right to receive payment is established. 2.31 Dividend Distribution Dividend distribution to the Company s shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Company s shareholders. 2.32 Approval of Issuance of the Financial Statements The issuance of the March 31, 2013 separate financial statements of the Company was approved by the Board of Directors on May 15, 2013. (2) Long-term employee benefits The Company provides long-term employee benefits, which are entitled to employees with service period for ten years and above. The expected costs of these benefits are accrued over the period of employment using the same accounting methodology as used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in profit or loss in the period in which they arise. These obligations are valued annually by independent qualified actuaries. 64 2013 Annual Report Hyundai Marine & Fire Insurance 65

3. Critical Accounting Estimates and Judgments The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimations and assumptions are continuously evaluated with consideration to factors such as events reasonably predictable in the foreseeable future within the present circumstance according to historical experience. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (1) Income taxes The Company recorded, based on its best estimate, current taxes and deferred taxes that the Company will be liable in the future for the operating results as of the financial year end. However, the final tax outcome in the future may be different from the amounts that were initially recorded. Such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. (2) Fair value of financial instruments The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. (3) Defined benefit liability The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the defined benefit liability. The Company determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit liability. In determining the appropriate discount rate, the Company considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the pension benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Other key assumptions for defined benefit liability are based in part on current market conditions. Additional information is disclosed in Note 20. 4. Cash and Cash Equivalents 5. Financial Assets 5.1 Financial Assets at Fair Value through Profit or Loss Financial assets at fair value through profit or loss as of March 31, 2013 and 2012, are as follows: Financial assets held for trading: (2) Debt securities in financial assets at fair value through profit or loss as of March 31, 2013 and 2012, are as follows: (3) Beneficiary certificates in financial assets at fair value through profit or loss as of March 31, 2013 and 2012, are as follows: Debt Securities 59,364,703 270,619,429 Beneficiary certificates 230,012 273,340 Securities in foreign currency 158,472 784,490 Derivatives 683,008 356,540 Other Securities(ELS) 60,008,220 - Financial assets designated at fair value through profit or loss: Equity Securities 20,451,191 - Total 140,895,606 272,033,799 Par value Acquisition cost Book value Par value Acquisition cost Book value Special bonds 60,000,000 59,359,178 59,364,703 273,000,000 270,635,227 270,619,429 Acquisition cost Book value Acquisition cost Book value Type of debt 155,552 202,468 183,053 238,336 Others 27,544 27,544 35,004 35,004 Total 183,096 230,012 218,057 273,340 Cash and cash equivalents as of March 31, 2013 and 2012, are as follows: Current deposits 1,420,977 672,141 Deposits on demand 21,699,835 61,824,260 Notes discounted 216,338,628 145,833,494 Other deposits foreign currencies 22,704,406 18,865,385 MMF 370,270,868 155,108,062 Other 86,054,387 21,136,913 Total 718,489,101 403,440,255 (4) Securities in foreign currency and other securities in financial assets at fair value through profit or loss as of March 31, 2013 and 2012, are as follows: Acquisition cost Book value Acquisition cost Book value Securities in foreign currency 158,472 158,472 784,490 784,490 Other Securities(ELS) 60,000,000 60,008,221 - - Total 60,158,472 60,166,693 784,490 784,490 66 2013 Annual Report Hyundai Marine & Fire Insurance 67

(5) Details of financial assets at fair value through profit or loss as of March 31, 2013 and 2012, are as follows: Financial assets designated at fair value through 5.2 Available-for-sale financial assets (1) Available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: Acquisition cost Book value Acquisition cost Book value profit or loss: Equity Securities 20,118,000 20,451,191 - - Acquisition cost Book value Acquisition cost Book value Equity securities 414,471,322 402,148,000 348,484,130 351,464,357 Debt securities 7,093,541,511 7,325,810,684 5,771,072,055 5,855,736,662 Beneficiary certificates 419,815,179 418,388,587 395,624,106 384,223,608 Securities in foreign currencies 529,398,497 467,963,965 417,184,146 354,578,182 Other securities 60,461,622 60,434,132 33,746,003 34,413,036 Total 8,517,688,131 8,674,745,368 6,966,110,440 6,980,415,845 (3) Debt securities in available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: As of March 31, 2013, special bonds amounting to 25,957 million are pledged as collateral to Industrial Bank of Korea for currency swap contracts. (4) Beneficiary certificates in available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: Par value Acquisition cost Book value Par value Acquisition cost Book value Government and public bonds 262,337,790 234,164,623 250,209,277 312,337,790 275,177,118 287,349,993 Special bonds 2,602,000,000 2,646,480,574 2,732,934,737 2,201,230,000 2,220,303,804 2,256,829,507 Finance debentures 475,000,000 478,095,100 498,427,984 495,000,000 496,712,009 502,571,064 Corporate bonds 3,711,026,950 3,734,801,214 3,844,238,686 2,772,026,950 2,778,879,124 2,808,986,098 Total 7,050,364,740 7,093,541,511 7,325,810,684 5,780,594,740 5,771,072,055 5,855,736,662 Acquisition cost Book value Acquisition cost Book value Type of equity 249,550,840 243,528,588 280,435,856 267,902,692 Type of debt 170,264,339 174,859,999 115,188,250 116,320,916 Total 419,815,179 418,388,587 395,624,106 384,223,608 (2) Equity securities in available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: Certain equity securities above that are not traded in an active market and their fair value cannot be reliably measured at cost. For the year ended March 31, 2013, the Company recorded 7,230 million as impairment loss for the listed stocks of LG Electronics Co., Ltd. and 19 other companies, and 3,648 million for the unlisted stocks of Hyundai Venture Investment Corp. due to a significant or prolonged decline in the fair value of equity securities. In addition, the Company recorded 16,667 million as impairment loss related to equities of TStone Fund II and three other investments due to a significant or prolonged decline in their fair values. Acquisition cost Book value Acquisition cost Book value Stocks in listed companies 249,863,486 239,671,150 220,683,001 210,778,376 Stocks in unlisted companies(*1) 72,985,992 89,943,071 67,385,992 83,828,974 Investments in partnerships(*2) 91,621,844 72,533,779 60,415,137 56,857,007 Total 414,471,322 402,148,000 348,484,130 351,464,357 For the year ended March 31, 2013, the Company recorded 16,617 million as impairment loss related to beneficiary certificates of Heungkuk high-class private placement No.2 and ten other beneficiary certificates due to a significant or prolonged decline in the fair value. (5) Securities in foreign currencies in available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: Acquisition cost Book value Acquisition cost Book value Stock 1,207,273 309,239 1,412,497 361,806 Bond 406,588,500 389,618,112 327,188,485 309,308,906 Beneficiary certificates - - 18,581,000 19,437,940 Others 121,602,724 78,036,614 70,002,164 25,469,530 Total 529,398,497 467,963,965 417,184,146 354,578,182 As of March 31, 2013, securities in foreign currency amounting to 38,221 million and 33,651 million are pledged as collateral to ANZ Bank and Shinhan Bank, respectively, for the currency swap contracts. In addition, the securities of the Company s branches in the US amounting to 8,113 million and 14,120 million are also pledged to the Insurance Department of the U.S. government in the State of California and four other states, as well as AIG, respectively, as collaterals for insurance contracts. For the year ended March 31, 2013, the Company recorded 777 million as impairment loss related to MS Japan Core Property Fund and three other securities due to a significant or prolonged decline in the fair value. 68 2013 Annual Report Hyundai Marine & Fire Insurance 69

(6) Other securities in available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: Acquisition cost Book value Acquisition cost Book value Mutual fund(*1) 29,461,622 29,422,321 31,746,003 31,833,225 Others 31,000,000 31,011,811 2,000,000 2,579,810 Total 60,461,622 60,434,132 33,746,003 34,413,035 5.3 Held-to-maturity investments (1) Held-to-maturity investments as of March 31, 2013 and 2012, are as follows: Par value Book value Fair value Par value Book value Fair value Debt securities 1,310,000,000 1,310,760,016 1,401,320,551 1,035,000,000 1,035,791,746 1,081,016,735 Securities in foreign currencies 15,097,431 14,494,600 15,380,200 17,108,528 16,744,688 17,860,830 Total 1,325,097,431 1,325,254,616 1,416,700,751 1,052,108,528 1,052,536,434 1,098,877,565 (7) Maturities of available-for-sale financial assets as of March 31, 2013 and 2012, are as follows: Debt securities and bonds of securities in foreign currency are included in the above available-for-sale financial assets. (8) Changes in unrealized gains and losses on valuation of available-for-sale financial assets for the years ended March 31, 2013 and 2012, are as follows: Acquisition cost Book value Acquisition cost Book value Within 1 year 385,218,275 384,311,470 608,469,537 594,404,799 1 to 5 years 4,239,156,953 4,401,325,481 3,829,133,597 3,860,689,824 5 to 10 years 2,599,340,192 2,723,738,052 1,583,817,739 1,605,154,463 Over 10 years 231,885,976 206,053,793 166,835,327 150,065,759 Total 7,455,601,396 7,715,428,796 6,188,256,200 6,210,314,845 Beginning balance Reclassification Increasedue to valuation Currency translation Ending balance Change in value of availablefor-sale financial assets 108,732,030 (39,314,890) 155,650,618 (10,989) 225,056,769 (2) Debt securities in held-to-maturity investments as of March 31, 2013 and 2012, are as follows: As of March 31, 2013, government and public bonds amounting to 6,003 million and 15,171 million among the debt securities above are pledged as collaterals to Woori Bank and Industrial Bank of Korea, respectively, for currency swap contracts. (3) Securities in foreign currencies in held-to-maturity investments as of March 31, 2013 and 2012, are as follows: Par value Book value Fair value Par value Book value Fair value Government and public bonds 70,000,000 70,550,818 80,392,789 90,000,000 90,505,083 97,137,547 Special bonds 1,005,000,000 1,005,270,578 1,068,822,334 535,000,000 535,391,162 564,806,274 Finance debentures 150,000,000 150,000,000 157,611,591 320,000,000 320,000,000 326,441,920 Corporate bonds 85,000,000 84,938,620 94,493,837 90,000,000 89,895,501 92,630,994 Total 1,310,000,000 1,310,760,016 1,401,320,551 1,035,000,000 1,035,791,746 1,081,016,735 Par value Book value Fair value Par value Book value Fair value Overseas debt securities 15,097,431 14,494,600 15,380,200 17,108,528 16,744,688 17,860,830 Beginning balance Reclassification Increasedue to valuation Currency translation Ending balance Change in value of availablefor-sale financial assets 100,833,389 (32,660,546) 40,544,283 14,904 108,732,030 The Company changed the impairment recognition criteria for available-for-sale equity securities from a decrease in fair value of the investments by more than 50% of cost or decrease below its cost for more than 12 months to a decrease in fair value of the investments by more than 30% of its cost or decrease below its cost for more than six months. This change in estimates is to reflect more precise economic facts through appropriate valuation of available-for-sale equity securities in the financial statements. As a result of this change, impairment loss on available-for-sale securities is higher by 32,140 million as compared to the amount under the previous criteria. As of March 31, 2013, overseas debt securities amounting to 334 million and 613 million are pledged as collaterals to the Insurance Department of the U.S. government, and AIG and Lexington, respectively. In addition, overseas debt securities of Japan branch amounting to 2,350 million are also pledged to the Bank of Japan as collaterals for insurance contracts. (4) Maturities of held-to-maturity investments as of March 31, 2013 and 2012, are as follows: Par value Book value Fair value Par value Book value Fair value Within 1 year 40,222,420 40,224,814 40,843,919 91,608,300 91,442,149 92,751,963 1 to 5 years 362,091,247 361,952,493 380,539,682 241,989,675 242,223,122 251,990,041 5 to 10 years 656,463,073 656,785,527 712,270,626 607,726,895 608,112,630 639,002,495 Over 10 years 266,320,691 266,291,782 283,046,524 110,783,658 110,758,533 115,133,066 Total 1,325,097,431 1,325,254,616 1,416,700,751 1,052,108,528 1,052,536,434 1,098,877,565 70 2013 Annual Report Hyundai Marine & Fire Insurance 71

5.4 Loans receivable (1) Loans receivable as of March 31, 2013 and 2012, are as follows: Policy loans 821,991,740 617,860,809 Loans secured by securities 2,000,000 - Loans secured by real estate 2,312,927,693 1,990,687,669 Unsecured loans 277,847,934 318,783,129 Loans secured by third-party guarantee 48,333,502 52,379,850 Other loans 389,761,329 265,032,182 Sub-Total 3,852,862,198 3,244,743,639 Allowance for loan losses (15,311,240) (12,867,803) Total 3,837,550,958 3,231,875,836 Fair value 3,868,923,046 3,234,682,884 (2) Changes in allowance for loan losses for the years ended March 31, 2013 and 2012, are as follows: 5.5 Other receivables (1) Other receivables as of March 31, 2013 and 2012, are as follows: Book value Fair value Deposits 380,146,887 411,975,403 Insurance receivables 259,867,320 259,867,320 Other accounts receivable 120,102,959 120,102,959 Accrued income 131,489,602 131,489,602 Notes receivable 477,037 477,037 Dishonored bill 47,701 47,701 Leasehold deposits 37,297,000 36,905,839 Others 6,485,350 6,485,349 Sub-Total 935,913,856 967,351,210 Allowance for other receivables (7,521,944) (7,521,944) Total 928,391,912 959,829,266 Beginning balance Provision Written-off Recoveries from written-off Other change Ending balance Personal loan losses 4,787,275 1,111,074 (23,261) 48,961 (1,631,237) 4,292,812 Corporate loan losses 8,080,528 2,962,280 - - (24,380) 11,018,428 Total 12,867,803 4,073,354 (23,261) 48,961 (1,655,617) 15,311,240 Beginning balance Provision Written-off Recoveries from written-off Other change Ending balance Personal loan losses 3,930,755 1,650,808 (17,052) 98,262 (875,498) 4,787,275 Corporate loan losses 6,320,284 1,920,611 - - (160,367) 8,080,528 Total 10,251,039 3,571,419 (17,052) 98,262 (1,035,865) 12,867,803 Book value Fair value Deposits 348,085,657 360,471,112 Insurance receivables 260,168,703 260,168,703 Other accounts receivable 68,082,175 68,082,175 Accrued income 111,429,280 111,429,280 Notes receivable 801,104 801,104 Dishonored bill 47,701 47,701 Leasehold deposits 38,163,106 37,448,129 Others 6,760,027 6,760,027 Sub-Total 833,537,753 845,208,231 Allowance for other receivables (7,395,162) (7,395,162) Total 826,142,591 837,813,069 (3) Interest income from impaired loans for the year ended March 31, 2013, is 1,655,617 thousand (2012: 1,035,865 thousand). (2) Restricted deposits as of March 31, 2013 and 2012, are as follows: Guarantee deposits for checking account 10,000 10,000 Pledged as collateral for L/C transaction 9,346,760 2,722,771 Regarding derivatives 33,363,000 - Total 42,719,760 2,732,771 72 2013 Annual Report Hyundai Marine & Fire Insurance 73

(3) Changes in allowance for other receivables for the years ended March 31, 2013 and 2012, are as follows: 6. Derivatives As of March 31, 2012, the Company has currency swap and currency forward contracts with Standard Chartered Bank and other financial institutions to manage the exposure to changes in exchange rates and has option-linked stock price index for trading. (1) Derivatives as of March 31, 2013 and 2012, are as follows: Beginning balance Provision Written-off Recoveries from written-off receivables Other changes Ending balance Insurance receivables 6,701,511 (178,446) - - (14,913) 6,508,152 Other accounts receivable 619,947 261,932 - - - 881,879 Accrued income 16,071 2,191 - - - 18,262 Notes receivable 4,006 (1,620) - - - 2,386 Dishonored bill 47,701 - - - - 47,701 Others 5,926 57,638 - - - 63,564 Total 7,395,162 141,695 - - (14,913) 7,521,944 Beginning balance Provision Written-off Recoveries from written-off receivables Other changes Ending balance Insurance receivables 6,356,701 (699,449) - 1,040,618 3,641 6,701,511 Other accounts receivable 660,897 (40,950) - - - 619,947 Accrued income 12,137 3,934 - - - 16,071 Notes receivable 1,799 2,207 - - - 4,006 Dishonored bill 47,701 - - - - 47,701 Others 18,943 (13,017) - - - 5,926 Total 7,098,178 (747,275) - 1,040,618 3,641 7,395,162 Non-hedge accounting instruments Derivatives assets Fair value hedging instruments Cash flow hedging instruments Total Non-hedge accounting instruments Derivatives liabilities Fair value hedging instruments Cash flow hedging instruments Option 612,959 - - 612,959 - - - - Swap 70,049-17,926,251 17,996,300-1,816,377 3,691,511 5,507,888 Total 683,008-17,926,251 18,609,259-1,816,377 3,691,511 5,507,888 Total (2) Gain (loss) on valuation of derivatives for the years ended March 31, 2013 and 2012, are as follows: (3) Gain (loss) on valuation of cash flow hedging derivatives which are recognized as other comprehensive income as of March 31, 2013 and 2012, are as follows: (4) Contract amounts of derivatives as of March 31, 2013 and 2012, are as follows: Trading Fair value hedging instruments Cash flow hedging instruments Gain on valuation Loss on valuation Gain on valuation Loss on valuation Gain on valuation Loss on valuation Option - 487,375 - - - - Swap - 1,924,475 3,418 258,978 909,583 5,611,859 Other - 519,890 - - - - Total - 2,931,740 3,418 258,978 909,583 5,611,859 Currency derivation Non-hedge accounting instruments Derivatives assets Fair value hedging instruments Cash flow hedging instruments Total Non-hedge accounting instruments Derivatives liabilities Fair value hedging instruments Cash flow hedging instruments Option 356,540 - - 356,540 - - - - Swap - 3,418 10,174,025 10,177,443 2,116,534 258,978 3,375,844 5,751,356 Other - - - - 519,890 - - 519,890 Total 356,540 3,418 10,174,025 10,533,983 2,636,424 258,978 3,375,844 6,271,246 Trading Fair value hedging instruments Cash flow hedging instruments Gain on valuation Loss on valuation Gain on valuation Loss on valuation Gain on valuation Loss on valuation Option 4,727 275,368 - - - - Swap 427,666 - - 1,816,377 12,710,848 3,641,113 Total 432,393 275,368-1,816,377 12,710,848 3,641,113 Gain on valuation Loss on valuation Gain on valuation Loss on valuation Swap 1,901,373 2,937,917 1,233,525 8,420,554 Non-hedge accounting instruments Fair value hedging instruments Cash flow hedging instruments Option 34,166,648 - - Swap 11,121,000 87,699,264 617,549,130 Total 45,287,648 87,699,264 617,549,130 Total 74 2013 Annual Report Hyundai Marine & Fire Insurance 75

Non-hedge accounting instruments Fair value hedging instruments Cash flow hedging instruments Option 30,739,892 - - Swap 57,445,505 29,781,468 273,637,145 Other 19,342,600 - - Total 107,527,997 29,781,468 273,637,145 (5) Changes in gain and loss on valuation of derivatives recognized as other comprehensive income for the years ended March 31, 2013 and 2012, are as follows: Beginning balances Increase(decrease) Ending balances Gain on valuation of financial derivatives 1,233,525 667,848 1,901,373 Tax effect (298,513) (161,620) (460,133) Total 935,012 506,228 1,441,240 Loss on valuation of financial derivatives (8,420,554) 5,482,637 (2,937,917) Tax effect 2,037,774 (1,326,798) 710,976 Total (6,382,780) 4,155,839 (2,226,941) Beginning balances Increase(decrease) Ending balances Gain on valuation of financial derivatives 362,545 870,980 1,233,525 Tax effect (90,961) (207,551) (298,512) Total 271,584 663,429 935,013 Loss on valuation of financial derivatives (10,176,341) 1,755,787 (8,420,554) Tax effect 2,238,795 (201,021) 2,037,774 Total (7,937,546) 1,554,766 (6,382,780) (6) The ineffective portion recognized in the profit or loss that arises from cash flow hedges for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Currency derivation(*) 1,948,868 28,586 The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, an entity within the same industry, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm s length basis. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 consist primarily of KOSPI and KOSDAQ equity investments classified as trading securities or available for sale. The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Specific valuation techniques used to value financial instruments include: - Securities Securities are measured at fair value using a quoted market price in an active market. If a quoted market price is not available, they are measured by using a price quoted by a third party, such as a pricing service or broker. Considering the characteristics of securities, one or more of the following valuation techniques are used in fair value measurement by such third party: Discounted Cash Flow ( DCF ) model, Imputed Market Value ( IMV ) model, Free Cash Flow to Equity ( FCFE ) model, dividend discount model, risk adjusted discounted rate model and net asset valuation. - Loan receivables Discounted Cash Flow Model is used to determine the fair value of loans. Fair value is determined by discounting the expected cash flow, which are contractual cash flows adjusted by prepayment rate, at appropriate discount rate. For those loans with residual maturities of less than three months as of the reporting date and the ones with interest rate reset period of less than three months, carrying amount is regarded as fair value. - Derivatives For exchange traded derivatives, quoted price in an active market is used to determine fair value and for OTC derivatives, fair value is determined by independent third-party pricing services. Pricing services use internally developed valuation models that are widely used by market participants to determine fair values of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using valuation results from independent third-party pricing services. (1) The following tables present the Company s financial assets and financial liabilities that are measured at fair value as of March 31, 2013 and 2012, are as follows: (*) Recognized as foreign exchange gain or loss on statements of comprehensive income. Level 1 Level 2 Level 3 Total 7. Fair Value Measurement of Financial Instruments The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Quoted prices in active markets for identical assets or liabilities (Level 1). Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (Level 2). Inputs for the asset or liability that are not based on observable market data (Level 3). Financial assets at fair value through profit or loss: Financial assets designated at fair value through profit or loss - - 20,451,191 20,451,191 Financial assets held for trading 49,836,233 69,925,174-119,761,407 Derivatives assets held for trading - 683,008-683,008 Sub-Total 49,836,233 70,608,182 20,451,191 140,895,606 Available-for-sale financial assets 430,661,379 7,759,549,694 376,020,963 8,566,232,036 Investment in subsidiaries and associates - - 17,369,634 17,369,634 Derivatives assets held for hedging - 17,926,251-17,926,251 Derivatives liabilities for hedging - 5,507,888-5,507,888 76 2013 Annual Report Hyundai Marine & Fire Insurance 77

Financial assets at fair value through profit or loss: Level 1 Level 2 Level 3 Total (*3) As of March 31, 2013, mutual funds consist of BALHAE Infrastructure Fund amounting to 8,121 million (2012: 8,373 million) and Korea BTL Fund I amounting to 15,729 million (2012: 16,954 million). Assets in these mutual funds are loans receivable and unlisted stocks related to social overhead capital and are measured at costs since the variability of the estimated cash flows of each asset is significant and the probabilities of the various estimates cannot be reasonably assessed. Financial assets held for trading 179,588,130 92,089,129-271,677,259 Derivatives assets held for trading - 356,540-356,540 Sub-Total 179,588,130 92,445,669-272,033,799 Available-for-sale financial assets 475,753,801 6,117,131,290 299,691,937 6,892,577,028 Investment in subsidiaries and associates- - 10,177,443-10,177,443 3Derivatives assets held for hedging - 2,636,425-2,636,425 Derivatives liabilities for hedging - 3,634,822-3,634,822 8. Investments in subsidiaries and associates (1) Details of investments in subsidiaries and associates as of March 31, 2013 and 2012, are as follows: Investments in subsidiaries 216,396,878 224,549,379 (2) The following tables present the changes in Level 3 instruments: Beginning balance Purchase Sales& Settlements Gain and losses of valuation Transfers into Level3 Ending balance Financial assets designated at fair value through profit or loss - 20,118,000-333,191-20,451,191 Available-for-sale financial assets 299,691,937 75,997,199 (27,554,580) 2,725,787 25,160,620 376,020,963 Investment in subsidiaries and associates - 17,473,000 - (103,366) - 17,369,634 Beginning balance Purchase Sales& Settlements Gain and losses of valuation Transfers into Level3 Ending balance Available-for-sale financial assets 214,777,375 38,442,391 (44,878,555) 12,590,380 78,760,346 299,691,937 Investments in associates 18,985,072 19,885,072 Other investment securities 17,369,634 - Total 252,751,584 244,434,451 (2) Details of investments in subsidiaries as of March 31, 2013 and 2012, are as follows: Subsidiaries March 31, 2013 Percentage of ownership(%) Book value March 31, 2012 Hyundai C&R Co., Ltd. 100 25,228,989 25,228,989 Hyundai Hicar Claims Service Co., Ltd. 100 29,092,480 29,092,480 Hyundai Investment Co., Ltd. 100 35,496,087 35,496,087 Hyundai Hilife Claims Service Co., Ltd. 100 7,752,145 7,752,145 Hyundai Hicar Direct Co., Ltd.(*) 100 49,299,315 57,451,816 Hyundai U.K. Underwriting Ltd. 100 1,959,710 1,959,710 Hyundai Investment (America) Ltd. 100 28,246,983 28,246,983 Hyundai Insurance (China) Company Limited 100 39,321,169 39,321,169 (3) Details of financial assets at fair value measured at cost as of March 31, 2013 and 2012, are as follows: Total 216,396,878 224,549,379 (*) For the year ended March 31, 2013, the Company recognized 8,152 million as impairment loss of investments in subsidiaries, whose net asset values declined significantly and are not expected to recover. Unlisted stocks(*1) 20,614,880 20,614,880 Other equity investments(*2) 64,048,473 41,896,940 Mutual fund(*3) 23,849,979 25,326,997 Total 108,513,332 87,838,817 (*1) As of March 31, 2013, unlisted stocks consist of Pyeongtaek Energy Service Co., Ltd. amounting to 15,000 million (2012: 15,000 million), KORAIL Airport Railroad amounting to 3,543 million (2012: 3,543 million), Yongin Clean Co., Ltd. amounting to 1,966 million (2012: 1,966 million) and other unlisted stocks. These equity securities are measured at cost because it is practically difficult to quantify the intrinsic values of the equity securities issued by unlisted public and non-profit entities. In addition, probabilities and range of estimated cash flows of the unlisted equity securities cannot be reasonably assessed. Therefore, these equity securities are measured at cost. The Company has no plan to sell these instruments in a short period of time, and is expected to measure their fair value upon further progress of the invested companies projects. (*2) Equity investments consist of Shinhan-Stonebridge Petro Private Equity Fund amounting to 30,000 million, Macquarie Korea Opportunities Fund amounting to 22,411 million (2012: 22,411 million), IMM Investment 3rd Private Equity Inc. amounting to 4,000 million (2012: 4,000 million) and other share capitals. These equity investments are measured at cost since the variability of the estimated cash flows of each investment held by the investee companies is significant and the probabilities of the various estimates cannot be reasonably assessed. (3) Details of investments in associates and other investment securities as of March 31, 2013 and 2012, are as follows: (1) Investment in associates Shares Percentage of ownership(%) Acquisition cost Book value KOCREF CR-REIT 6(*) 91,000 7.66 9,100,000 9,100,000 KOCREF CR-REIT 11(*) 500,000 10.00 9,500,000 9,340,094 Cosmos Risk Solutions Asia Pte. Ltd. 490,000 49.00 544,978 544,978 Sub-Total 19,144,978 18,985,072 (2) Other investment securities Hyundai PE-REIT 6-97.85 11,400,000 11,153,190 Eujin Dream Squar PE-REIT 3-97.95 6,073,000 6,216,444 Sub-Total 17,473,000 17,369,634 Total 36,617,978 36,354,706 78 2013 Annual Report Hyundai Marine & Fire Insurance 79

(1) Investment in associates Shares Percentage of ownership(%) Acquisition cost Book value KOCREF CR-REIT 6(*) 2,000,000 7.66 10,000,000 10,000,000 KOCREF CR-REIT 11(*) 500,000 10.00 9,500,000 9,340,094 Cosmos Risk Solutions Asia Pte. Ltd. 490,000 49.00 544,978 544,978 Sub-Total 20,044,978 19,885,072 Total 20,044,978 19,885,072 (2) Associates KOCREF CR-REIT 6 221,088,792 157,010,300 19,964,074 15,496,506 KOCREF CR-REIT 11 216,649,591 129,889,628 24,646,630 19,994,853 Cosmos Risk Solutions Asia Pte. Ltd. 1,800,721 719,037 833,773 62,245 (3) Others Hyundai PE-REIT 6 17,915,181 6,368,442 114,804 (103,261) Eujin Dream Square PE-REIT 3 6,354,789 1,965 550,085 543,358 (*) KOCREF CR-REIT 6 and KOCREF CR-REIT 11, over which the Company exercises a significant influence, are classified as investment in associates even though the percentage of ownership is less than 20%. (4) Changes in investments in subsidiaries and associates for the years ended March 31, 2013 and 2012, are as follows: Beginning balance Acquisition Valuation Impairment Disposal Ending balance Investments in subsidiaries 224,549,379 - - (8,152,501) - 216,396,878 Investments in associates 19,885,072 9,100,000 - - (10,000,000) 18,985,072 Other investment securities - 17,473,000 (103,366) - - 17,369,634 Total 244,434,451 26,573,000 (103,366) (8,152,501) (10,000,000) 252,751,584 Beginning balance Acquisition Valuation Disposal Ending balance Investments in subsidiaries 224,549,379 - - - 224,549,379 Investments in associates 19,885,072 - - - 19,885,072 Other investment securities 21,632,320 - - (21,632,320) - Total 266,066,771 - - (21,632,320) 244,434,451 (5) Details of financial information of subsidiaries, associates and other investment securities as of, and for the years ended March 31, 2013 and 2012, are as follows: Total assets Total liabilities Revenues Net income (loss) (1) Subsidiaries Hyundai C&R Co., Ltd. 50,262,147 17,736,653 113,853,117 3,985,665 Hyundai Hicar Claims Service Co., Ltd. 52,555,170 26,481,398 69,492,537 414,582 Hyundai Investment Co., Ltd. 36,801,797 416,562 6,812,628 145,747 Hyundai Hilife Claims Service Co., Ltd. 21,017,548 9,406,204 58,787,438 2,299,874 Hyundai Hicar Direct Co., Ltd. 414,126,968 353,831,345 481,549,170 2,354,928 Hyundai HDS Co., Ltd. 40,864,704 353,831,345 89,632,955 452,651 Hicapital Co., Ltd. 168,362,049 130,858,244 48,645,643 6,219,035 Hyundai U.K. Underwriting Ltd. 2,652,879 465,267 18,449 77,688 Hyundai Investment (America) Ltd. 29,758,341 763,900 2,993,294 381,792 Hyundai Insurance (China) Company Limited 89,759,911 49,571,488 49,967,842 (1,535,854) (2) Associates KOCREF CR-REIT 6 280,868,905 163,100,499 25,500,717 9,232,207 KOCREF CR-REIT 11 218,707,354 129,732,194 23,928,410 9,647,460 Cosmos Risk Solutions Asia Pte. Ltd. 2,599,813 1,556,646 1,010,913 83,640 9. Property and Equipment (1) Changes in property and equipment for the years ended March 31, 2013 and 2012, are as follows: Total assets Total liabilities Revenues Net income (loss) (1) Subsidiaries Hyundai C&R Co., Ltd. 51,624,419 14,497,580 128,374,227 4,601,345 Hyundai Hicar Claims Service Co., Ltd. 52,925,871 28,644,609 72,752,727 (1,792,510) Hyundai Investment Co., Ltd. 37,906,011 804,719 7,150,131 679,085 Hyundai Hilife Claims Service Co., Ltd. 25,625,357 10,004,879 64,334,044 4,009,134 Hyundai Hicar Direct Co., Ltd. 418,375,582 369,076,267 509,026,695 (11,291,807) Hyundai HDS Co., Ltd. 40,176,744 26,536,027 100,493,026 1,481,466 Hicapital Co., Ltd. 156,641,899 114,270,843 45,217,894 4,867,252 Hyundai U.K. Underwriting Ltd. 2,048,770-23,563 12,748 Hyundai Investment (America) Ltd. 29,763,689 828,945 3,006,929 376,972 Hyundai Insurance (China) Company Limited 130,275,701 90,645,957 81,268,460 (224,754) Land Buildings and structures Furniture and fixtures Overseas real estate Vehicles Financial lease assets Construction in progress Beginning balance 222,714,533 205,792,571 38,409,279 683,856 1,528,381 1 13,331,199 482,459,820 Acquisition 4,865,304 17,205,120 15,613,885-828,402-64,510,813 103,023,524 Disposal - - (178,874) - (149,643) - - (328,517) Transfer from investment property (transfer to investment property) 6,512,620 (38,360,065) - - - - 8,575,306 (23,272,139) Depreciation - (7,518,542) (16,164,861) (7,014) (555,033) - - (24,245,450) Currency translation differences - - (3,336) - (8,043) - - (11,379) Other - 69,016,358 - - - - (69,016,358) - Ending balance 234,092,457 246,135,442 37,676,093 676,842 1,644,064 1 17,400,960 537,625,859 Total 80 2013 Annual Report Hyundai Marine & Fire Insurance 81

Land Buildings and structures Furniture and fixtures Overseas real estate Vehicles Financial lease assets Construction in progress Beginning balance 222,578,448 208,452,264 47,847,483 690,871 1,371,054 1 1,544,052 482,484,173 Acquisition - 166,747 6,376,817-673,668-37,766,338 44,983,570 Disposal (606,165) (82,965) (16,174) - (57,212) - - (762,516) Transfer from investment property (transfer to investment property) 742,250 3,938,800 - - - - (25,735,550) (21,054,500) Depreciation - (6,925,916) (15,804,197) (7,015) (462,356) - - (23,199,484) Currency translation differences - - 5,350-3,227 - - 8,577 Other - 243,641 - - - - (243,641) - Ending balance 222,714,533 205,792,571 38,409,279 683,856 1,528,381 1 13,331,199 482,459,820 Total (2) Rental income from investment property for the year ended March 31, 2013, amounts to 28,389,209 thousand (2012: 28,306,130 thousand). (3) As of March 31, 2013, fair value of the investment property amounts to 472,999 million (2012: 494,343 million). The investment property is valued by qualified independent appraisers with experience in valuing similar properties in the same location. 11. Intangible Assets Changes in intangible assets for the years ended March 31, 2013 and 2012, are as follows:. Property and equipment insured as of March 31, 2013, are as follows: Type Assets insured Covered amount Insurance company Property All Risks Insurance Buildings 573,299,980 Samsung Fire &Marine Furniture and Fixtures 77,715,937 InsuranceCo., Ltd. 10. Investment Property (1) Changes in investment property for the years ended March 31, 2013 and 2012, are as follows: Land Buildings and structures Construction in progress Total Beginning balance 206,382,895 211,730,175 29,119,000 447,232,070 Acquisition - - - - Disposal - - - - Transfer from property and equipment (transfer to property and equipment) (6,512,620) 38,360,065 8,575,306) 23,272,139 Depreciation - (7,344,667) - (7,344,667) Other - - - - Ending balance 199,870,275 242,745,573 20,543,694 463,159,542 Land Buildings and structures Construction in progress Total Beginning balance 208,015,673 222,316,658 3,755,629 434,087,960 Acquisition - 153,977-153,977 Disposal (890,528) (122,497) - (1,013,025) Transfer from property and equipment (transfer to property and equipment) (742,250) (3,938,800) 25,735,550 21,054,500 Depreciation - (7,051,342) - (7,051,342) Other - 372,179 (372,179) - Ending balance 206,382,895 211,730,175 29,119,000 447,232,070 Development costs Memberships Other intangibles Total Beginning balance 34,280,725 21,329,115 20,506,457 76,116,297 Acquisition 5,565,645 955,000 4,317,914 10,838,559 Disposal - (358,000) - (358,000) Reversal of impairment(impairment) - (1,449,917) - (1,449,917) Amortization (13,083,403) - (7,775,047) (20,858,450) Currency translation differences (39,117) (8,755) (5,386) (53,258) Ending balance 26,723,850 20,467,443 17,043,938 64,235,231 Development costs Memberships Other intangibles Total Beginning balance 41,297,211 19,894,373 23,167,098 84,358,682 Acquisition 6,049,090 1,758,000 4,454,556 12,261,646 Reversal of impairment(impairment) - (326,800) - (326,800) Amortization (13,065,576) - (7,115,198) (20,180,774) Currency translation differences - 3,542-3,542 Ending balance 34,280,725 21,329,115 20,506,456 76,116,296 12. Reinsurance Assets Changes in reinsurance assets for the years ended March 31, 2013 and 2012, are as follows: Commercial Automobile Long term Annuities Total Beginning balance 726,418,538 15,950,333 50,711,652 207,492 793,288,015 Unearned reinsurance premium ceded 5,465,167 (6,442,160) - - (976,993) Reserve for reinsurance payment ceded 58,680,949 (697,141) 11,579,146 111,081 69,674,035 Impairment losses on reinsurance assets (9,976) - - - (9,976) Overseas insurance (84,049,969) - - - (84,049,969) Ending balance 706,504,709 8,811,032 62,290,798 318,573 777,925,112 82 2013 Annual Report Hyundai Marine & Fire Insurance 83

Commercial Automobile Long term Annuities Total Beginning balance 567,410,740 16,355,834 41,165,296 265,371 625,197,241 Unearned reinsurance premium ceded 19,168,551 2,025,193 - - 21,193,744 Reserve for reinsurance payment ceded 33,043,008 (2,430,694) 9,546,356 (57,879) 40,100,791 Overseas insurance 106,796,239 - - - 106,796,239 Ending balance 726,418,538 15,950,333 50,711,652 207,492 793,288,015 15. Other Assets Details of other assets as of March 31, 2013 and 2012, are as follows: Prepaid expenses 7,586,771 7,172,594 Advance payments 5,213,296 5,681,921 Prepaid value added tax 220,309 152,675 Total 13,020,376 13,007,190 13. Compensation Receivables Changes in compensation receivables for the years ended March 31, 2013 and 2012, are as follows: Fire Marine Automobile Guarantee Long term Other Total Beginning balance 321,060 1,983,045 23,571,532 142,852 420,807 341,060 26,780,356 Increase (decrease) (93,521) 472,469 1,086,401 (3,232) 275,940 155,645 1,893,702 Ending balance 227,539 2,455,514 24,657,933 139,620 696,747 496,705 28,674,058 Fire Marine Automobile Guarantee Long term Other Total Beginning balance 338,882 2,116,881 25,040,493 143,064 311,044 528,145 28,478,509 Increase (decrease) (17,822) (133,836) (1,468,961) (212) 109,763 (187,085) (1,698,153) Ending balance 321,060 1,983,045 23,571,532 142,852 420,807 341,060 26,780,356 16. Insurance liabilities (1) Details of insurance liabilities as of March 31, 2013 and 2012, are as follows: Commercial Automobile Long term Annuities Total Premium reserves - - 10,939,199,188 2,607,997,303 13,547,196,491 Reserves for outstanding claims 595,685,163 388,508,206 522,633,045 50,569,113 1,557,395,527 Unearned premium reserves 465,673,007 921,678,637 52,511,534 100,855 1,439,964,033 Policyholders dividend reserves - - - 54,744,262 54,744,262 Policyholders profit dividend reserves - - 12,939 1,590,752 1,603,691 Reserves for loss compensation on dividend - - - - - Total 1,061,358,170 1,310,186,843 11,514,356,706 2,715,002,285 16,600,904,004 Commercial Automobile Long term Annuities Total 14. Deferred Acquisition Costs Changes in deferred acquisition costs for the years ended March 31, 2013 and 2012, are as follows: Long term without dividends Annuities Asset related Total Beginning balance 1,652,172,004 180,242,331 766,709 1,833,181,044 Deferred 965,499,754 68,123,134 5,809 1,033,628,697 Amortization (792,715,387) (65,042,025) (454,916) (858,212,328) Ending balance 1,824,956,371 183,323,440 317,602 2,008,597,413 Premium reserves - - 8,903,262,298 2,049,402,023 10,952,664,321 Reserves for outstanding claims 605,628,856 377,259,356 439,319,821 34,433,652 1,456,641,685 Unearned premium reserves 439,596,070 950,491,242 36,233,799 109,379 1,426,430,490 Policyholders dividend reserves - - 997,928 52,410,214 53,408,142 Policyholders profit dividend reserves - - 11,904 3,875,146 3,887,050 Reserves for loss compensation on dividend - - - 1,927,230 1,927,230 Total 1,045,224,926 1,327,750,598 9,379,825,750 2,142,157,644 13,894,958,918 (2) Changes in premium reserves for the years ended March 31, 2013 and 2012, are as follows: Long term without dividends Annuities Asset related Total Beginning balance 1,400,719,603 120,128,966 1,957,203 1,522,805,772 Deferred 814,552,945 111,568,940 14,768 926,136,653 Amortization (563,100,544) (51,455,575) (1,205,262) (615,761,381) Ending balance 1,652,172,004 180,242,331 766,709 1,833,181,044 Long term Annuities Total Beginning balance 8,903,262,298 2,049,402,023 10,952,664,321 Increase 2,035,936,890 558,595,280 2,594,532,170 Ending balance 10,939,199,188 2,607,997,303 13,547,196,491 84 2013 Annual Report Hyundai Marine & Fire Insurance 85

Long term Annuities Total Beginning balance 6,757,552,825 1,573,611,085 8,331,163,910 Increase 2,145,709,473 475,790,938 2,621,500,411 Ending balance 8,903,262,298 2,049,402,023 10,952,664,321 Long term Annuities Total Beginning balance 997,928 52,410,214 53,408,142 Increase (997,928) 2,334,048 1,336,120 Ending balance - 54,744,262 54,744,262 (3) Changes in reserves for outstanding claims for the years ended March 31, 2013 and 2012, are as follows: Commercial Automobile Long term Annuities Total Beginning balance 605,628,856 377,259,356 439,319,821 34,433,652 1,456,641,685 Increase (9,943,693) 11,248,850 83,313,224 16,135,461 100,753,842 Ending balance 595,685,163 388,508,206 522,633,045 50,569,113 1,557,395,527 Long term Annuities Total Beginning balance 2,303,281 49,427,718 51,730,999 Increase (1,305,353) 2,982,496 1,677,143 Ending balance 997,928 52,410,214 53,408,142 (6) Changes in policyholders profit dividend reserves for the years ended March 31, 2013 and 2012, are as follows: Commercial Automobile Long term Annuities Total Beginning balance 442,196,977 352,967,710 372,756,458 22,981,891 1,190,903,036 Increase 163,431,879 24,291,646 66,563,363 11,451,761 265,738,649 Ending balance 605,628,856 377,259,356 439,319,821 34,433,652 1,456,641,685 Long term Annuities Total Beginning balance 11,904 3,875,146 3,887,050 Increase 1,035 (2,284,394) (2,283,359) Ending balance 12,939 1,590,752 1,603,691 (4) Changes in unearned premium reserves for the years ended March 31, 2013 and 2012, are as follows: Long term Annuities Total Beginning balance 45,575 6,756,319 6,801,894 Increase (33,671) (2,881,173) (2,914,844) Ending balance 11,904 3,875,146 3,887,050 Commercial Automobile Long term Annuities Total Beginning balance 439,596,070 950,491,242 36,233,799 109,379 1,426,430,490 Increase 26,076,937 (28,812,605) 16,277,735 (8,524) 13,533,543 Ending balance 465,673,007 921,678,637 52,511,534 100,855 1,439,964,033 (7) Changes in reserves for loss compensation on dividend for the years ended March 31, 2013 and 2012, are as follows: Commercial Automobile Long term Annuities Total Beginning balance 391,725,110 924,352,305 24,884,257 74,399 1,341,036,071 Increase 47,870,960 26,138,937 11,349,542 34,980 85,394,419 Ending balance 439,596,070 950,491,242 36,233,799 109,379 1,426,430,490 Annuities Beginning balance 1,927,230 Increase (1,927,230) Ending balance - (5) Changes in policyholders dividend reserves for the years ended March 31, 2013 and 2012, are as follows: Annuities Beginning balance 1,811,371 Increase 115,859 Ending balance 1,927,230 86 2013 Annual Report Hyundai Marine & Fire Insurance 87

(8) Details of liability adequacy test (LAT) for insurance liabilities as of March 31, 2013, are as follows: March 31, 2013 Long term withoutdividends Annuities Asset related2013 LAT estimations 8,789,341,157 2,268,666,101 51,316,909 LAT requirements 5,175,298,380 2,865,414,253 49,660,188 Deficiency recognized in profit or loss - - - As a result of LAT for premium reserves as of March 31, 2013, there is no premium deficiency. Summary of experience rate and basis for liability adequacy test are as follows: Basis Discount rate Weighted-average yield from asset management based on the past performance and future expectations. Expense ratio The ratio of expense based on historical data from April 1, 2011 to March 31, 2012. Payment ratio The ratio of insurance claims per risks premium on insurance contract groups from April 1, 2007 to March 31, 2012 Maintenance ratio The ratio based on historical data from April 1, 2007 to March 31, 2012 18. Financial Liabilities Details of financial liabilities as of March 31, 2013 and 2012, are as follows: (1) Other Financial liabilities measured at amortized cost Book value Fair value Book value Fair value Insurance payables 390,976,345 390,976,345 368,711,193 368,711,192 Accounts payable 21,766,954 21,766,954 9,945,396 9,945,396 Leasehold deposits 43,544,529 43,058,396 41,104,793 40,084,467 Sub-Total 456,287,828 455,801,695 419,761,382 418,741,055 (2) Financial liabilities at fair value through profit or loss Derivative financial liabilities - - 2,636,425 2,636,425 (3) Derivatives held for hedging 5,507,888 5,507,888 3,634,822 3,634,822 (4) Other financial liabilities Investment contracts liabilities 71,188,488 71,188,489 71,752,904 71,752,904 As a result of LAT for reserves for outstanding claims and unearned premium reserves, there is no premium deficiency. 17. Insurance Receivables and Insurance Payables (1) Details of insurance receivables as of March 31, 2013 and 2012, are as follows: Premium receivables 23,505,293 42,550,102 Agency receivables 25,040,990 1,239,901 Coinsurance receivables 11,321,106 10,614,000 Receivables related to agency business 28,555,053 31,062,922 Reinsurance receivables 138,022,593 147,576,161 Foreign reinsurance receivables 30,739,803 21,907,991 Deposits on assumed reinsurance treaties 2,682,482 5,217,626 Total 259,867,320 260,168,703 (2) Details of insurance payables as of March 31, 2013 and 2012, are as follows: 19. Provisions for Restoration Costs Changes in provisions for restoration costs for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Beginning balance 1,544,993 1,452,452 Provision 168,666 239,094 Decrease (70,621) (48,823) Reversal (43,770) (43,080) Effects of lapse of time period and changes in foreign exchange rate (19,117) (54,650) Ending balance 1,580,151 1,544,993 The Company recognizes provisions for restoration based on the expenditures expected to be paid for the restoration of the lease properties. The expected expenditures are estimated based on lease period and historical data. Assumptions used in calculation of provisions for restoration costs above are as follows: * Expected costs of restoration: 1,691,275 thousand * Historical average inflation rate: 3.05% * Discount rate based on credit risk: 3.70% Claims payable 15,382,561 13,863,022 Due to agents 95,803,825 96,827,664 Premiums refund payable 17,747,609 9,263,575 Payables related to agency business 24,817,042 31,531,002 Reinsurance payable 164,396,964 155,540,214 Foreign reinsurance payable 37,618,457 32,838,404 Deposits on ceded reinsurance treaties 35,209,887 28,847,311 Total 390,976,345 368,711,192 88 2013 Annual Report Hyundai Marine & Fire Insurance 89

20. Retirement Benefit Obligations (1) The amounts of defined benefit obligations recognized in the statements of financial position are determined as follows: Present value of defined benefit obligations 202,271,114 146,579,965 Fair value of plan assets (152,860,763) (102,236,173) Net defined benefit obligations 49,410,351 44,343,792 (2) Changes in the carrying amount of defined benefit obligations for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Beginning balance 146,579,965 109,428,950 Current service cost 23,204,039 19,760,378 Interest expense 6,906,746 6,206,627 Acturial losses 30,866,093 14,072,772 Benefits paid (5,114,549) (2,926,162) Currency translation differences (171,180) 37,400 Ending balance 202,271,114 146,579,965 (5) Principal actuarial assumptions as of March 31, 2013 and 2012, are as follows: Discount rate 3.12% 4.23% Expected return on plan assets 4.63% 4.46% Future salary increases 7.36% 7.91% (6) Adjustments for the differences between initial assumptions and actual figures as of March 31, 2013, 2012 and 2011, and April 1, 2010, are as follows: March 31, 2011 April 1, 2010 Present value of defined benefit liability 202,271,114 146,579,965 109,428,950 211,225,662 Fair value of plan assets (152,860,763) (102,236,173) (77,182,916) (125,497,020) Deficit(surplus) of the funded plans 49,410,351 44,343,792 32,246,034 85,728,642 Defined benefit obligations adjustments 30,866,093 14,072,772 13,995,656 - Plan assets adjustments 546,112 (118,320) (45,522) - 21. Other Liabilities Other liabilities as of March 31, 2013 and 2012, are as follows: (3) The movement in the fair value of plan assets for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Beginning balance 102,236,173 77,182,916 Expected return on plan assets 4,497,743 3,606,746 Contributions of participants 546,112 (118,320) Benefits paid 49,800,000 23,499,393 Acturial gains (losses) (4,219,265) (1,934,562) Ending balance 152,860,763 102,236,173 Accrued expenses 156,323,716 152,416,481 Advances received 11,453,917 8,114,857 Advance premiums received 4,845,494 6,086,974 Unearned income 777,272 716,264 Withholdings 34,177,040 35,193,484 Other 63,245,495 45,389,208 Total 270,822,934 247,917,268 Actual return of plan assets was 5,044 million for the year ended March 31, 2013 (2012: 3,488 million). (4) The amounts recognized on the statement of comprehensive income for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Current service cost 23,204,039 19,760,378 Interest expenses 6,906,746 6,206,627 Expected return on plan assets (4,497,743) (3,606,746) Acturial losses 30,319,981 14,191,092 Total 55,933,023 36,551,351 22. Equity (1) Details of capital stock as of March 31, 2013 and 2012, are as follows: (in thousands of Korean won, except per share amount) Authorized shares 200,000,000 200,000,000 Issued common shares 89,400,000 89,400,000 Par value per share (in Korean won) 500 500 Capital stock 44,700,000 44,700,000 90 2013 Annual Report Hyundai Marine & Fire Insurance 91

(2) Capital surplus as of March 31, 2013 and 2012, consists of: Capital in excess of par value 84,203,835 84,203,835 Revaluation reserve 22,754,518 22,754,518 Others 7,264,492 7,264,492 Total 114,222,845 114,222,845 (5-1) Contingency Reserves 1) The details of the contingency reserves as of March 31, 2013 and 2012, are as follows: 2013 2012 Amounts estimated to be appropriated 49,698,066 451,708,012 Ending balance 501,406,078 451,708,012 2) The adjustments to the contingency reserves as of March 31, 2013 and 2012, are as follows: (3) Capital adjustment as of March 31, 2013 and 2012, is as follows: Treasury stock (20,044,215) (20,044,215) 2013 2012 Provision of contingency reserves 49,698,066 47,278,292 Adjusted profit after provision of contingency reserves 283,683,145 345,477,402 (4) Accumulated other comprehensive income and expense as of March 31, 2013 and 2012, are as follows: Gain on valuation of available-for-sale financial assets 232,234,074 123,692,603 Loss on valuation of available-for-sale financial assets (7,177,305) (14,960,573) Gain on valuation of investments in subsidiaries and associates 108,731 - Loss on valuation of investments in subsidiaries and associates (187,082) - Currency translation differences (2,329,082) 1,306,187 Gain on valuation of cash flow hedging instruments 1,441,240 935,012 Loss on valuation of cash flow hedging instruments (2,226,941) (6,382,780) Other comprehensive income in special accounts 19,197,982 3,602,834 Revaluation surplus 142,053,767 142,053,767 Total 383,115,384 250,247,050 (5) Retained earnings as of March 31, 2013 and 2012, consist of: Legal reserves(*) 22,350,000 22,350,000 Business rationalization reserves 188,152 188,152 Voluntary reserves 750,000,000 575,000,000 Contingency reserves(*) 451,708,012 - Reserves for credit losses(*) 19,309,496 - Revaluation reserves(*) 21,919,884 - Retained earnings before appropriation 314,453,983 757,569,739 Total 1,579,929,527 1,355,107,891 (*) Limited dividends. (5-2) Reserves for Credit Losses 1) The details of reserves for credit losses as of March 31, 2013 and 2012, are as follows: 2013 2012 Amounts estimated to be appropriated 13,297,441 19,309,496 Ending balance 32,606,937 19,309,496 2) The adjustments to the regulatory reserves for credit losses as of March 31, 2013 and 2012, are as follows: 2013 2012 Provision of regulatory reserve for credit losses 13,297,441 3,428,886 Adjusted profit after provision of regulatory reserve for credit losses 320,083,770 389,326,808 (6) The appropriations of retained earnings for the years ended March 31, 2013 and 2012, are as follows: Dates of appropriation : June 7, 2013 for the year ended March 31, 2013 (2012: June 7, 2012). 2013 2012 Retained earnings before appropriations 1. Unappropriated retained earnings (undisposed deficit) carried over from prior year (18,927,229) 82,854,349 2. Cumulative effect on correction of accounting process - (18,040,305) 3. Net income 333,381,211 392,755,694 314,453,982 757,569,738 Transfers such as discretionary reserves 1. Asset revaluation reserves 718,526 - Appropriation of retained earnings 718,526 1. Contingency reserves 49,698,066 451,708,012 2. Reserves for credit losses 13,297,441 19,309,496 3. Revaluation reserve - 21,919,884 4. Voluntary reserves 160,000,000 175,000,000 Dividends (ratio) for share common stock: 1,050 (210%) in 2013 1,350 (270%) in 2012 84,435,225 108,559,575 307,430,732 776,496,967 Unappropriated retained earnings (undisposed deficit) carried forward to the subsequent year 7,741,776 (18,927,229) 92 2013 Annual Report Hyundai Marine & Fire Insurance 93

23. Income Tax (1) Income tax expense for the years ended March 31, 2013 and 2012, consists of: 2013 2012 Current income taxes 108,529,485 102,402,941 Changes in deferred income taxes 38,651,874 42,198,283 Income taxes allocated directly to equity (38,157,009) (10,188,948) Income Tax 109,024,350 134,412,276 (2) Deferred income taxes charged directly to the equity are as follows: March 31, 2013 March 31,2012 Changes in value of available-for-sale financial assets (37,137,977) (5,412,628) Changes in value of cash flow hedging instruments (1,488,417) (408,572) Revaluation surplus 463,843 (4,126,463) Revaluation reserves - (462,776) Others 5,542 221,491 Total (38,157,009) (10,188,948) (3) The reconciliation between income tax expense and accounting income before income tax expense for the years ended March 31, 2013 and 2012, follows: 2013 2012 Profit before income taxes 442,405,561 527,167,970 Income tax based on applicable statutory tax rate 106,600,146 127,112,649 Tax effects of : 2,424,204 7,299,627 Non taxable income (484,275) (532,987) Expenses not deductible for tax purposes 1,318,168 1,058,271 Unrecognized deferred income tax (2,255,363) 5,090,541 Tax credit (2,020) (35,043) Tax refunds (380,372) - Others 4,228,066 1,718,845 Income tax expense 109,024,350 134,412,276 (4) Changes in temporary differences and deferred tax assets (liabilities) for the years ended March 31, 2013 and 2012, are as follows: Beginning balances Income tax expenses Equity Ending balances Income tax expenses Financial asset at fair value through profit or loss (130,426) (424,105) - (554,531) Investments in subsidiaries and associates 38,697 - - 38,697 Compensation receivables (6,480,846) (458,276) - (6,939,122) Accrued receivable (20,474,505) (3,030,313) - (23,504,818) Allowance for possible loan losses - - - - Dormant claims recovered 5,519,267 2,216,905-7,736,172 Provions for restoration costs 373,888 8,508-382,396 Contingency reserve (109,313,339) (11,889,577) - (121,202,916) Land (4,566,597) - - (4,566,597) Impairment of available-for-sale financial assets 29,629,711 2,550,065-32,179,776 Depreciation 592,135 (3,472,562) - (2,880,427) Gain (loss) on foreign currency (2,068,571) 3,508,803-1,440,232 Deposits insurance premium 2,695,268 951,251-3,646,519 Loss on revaluation of asset 1,240,521 - - 1,240,521 Other long-term employee benefits 5,226,628 1,992,085-7,218,713 Others (5,032,549) 7,552,350-2,519,801 (102,750,718) (494,866) - (103,245,584) Equity Change in value of available- for-sale financial assets (34,713,920) - (37,137,977) (71,851,897) Gain (loss) on valuation of cash flow hedge derivatives 1,739,261 - (1,488,417) 250,844 Revaluation surplus (45,352,258) - 463,843 (44,888,415) Revaluation reserve of asset (462,776) - - (462,776) Others - - 5,542 5,542 (78,789,693) - (38,157,009) (116,946,702) Total (181,540,411) (494,866) (38,157,009) (220,192,286) Not recognized as deferred income tax assets(*1) 5,377,189 3,121,825 Recognized as deferred income tax assets (181,540,411) (220,192,286) (*1) The Company did not recognize the deferred tax assets (liabilities) related to investments in subsidiaries and associates, except KOCREF CR- REIT 6 and 11, since it is not probable that the temporary differences can be realized. 94 2013 Annual Report Hyundai Marine & Fire Insurance 95

Income tax expenses Beginning balances Income tax expenses Equity Ending balances Financial asset at fair value through profit or loss 159,494 (289,920) - (130,426) Investments in subsidiaries and associates 141,133 (102,436) - 38,697 Compensation receivables (6,891,799) 410,953 - (6,480,846) Accrued receivable (12,342,674) (8,131,831) - (20,474,505) Allowance for possible loan losses 43,290 (43,290) - - Dormant claims recovered 4,105,686 1,413,581-5,519,267 Provions for restoration costs - 373,888-373,888 Contingency reserve (88,974,538) (20,338,801) - (109,313,339) Land - (4,566,597) - (4,566,597) Impairment of available-for-sale financial assets 23,164,024 6,465,687-29,629,711 Depreciation 817,623 (225,488) - 592,135 Gain (loss) on foreign currency 900,230 (2,968,801) - (2,068,571) Deposits insurance premium 2,537,416 157,852-2,695,268 Loss on revaluation of asset 1,540,784 (300,263) - 1,240,521 Other long-term employee benefits - 5,226,628-5,226,628 Others 4,057,948 (9,090,497) - (5,032,549) Equity (70,741,383) (32,009,335) - (102,750,718) Change in value of available- for-sale financial assets (29,301,292) - (5,412,628) (34,713,920) Gain (loss) on valuation of cash flow hedge derivatives 2,147,834 - (408,573) 1,739,261 Revaluation surplus (41,225,795) - (4,126,463) (45,352,258) Revaluation reserve of asset - - (462,776) (462,776) Others (221,492) - 221,492 - (68,600,745) - (10,188,948) (78,789,693) Total (139,342,128) (32,009,335) (10,188,948) (181,540,411) Not recognized as deferred income tax assets(*1) 286,648 5,377,189 Recognized as deferred income tax assets (139,342,128) (181,540,411) (*1) The Company did not recognize the deferred tax assets (liabilities) related to investments in subsidiaries and associates, and advanced depreciation of land, except KOCREF CR-REIT 6 and 11, since it is not probable that the temporary differences can be realized. 24. Special Accounts (1) Details of special account assets (liabilities) as of March 31, 2013 and 2012, are as follows: Special account assets 1,085,500,089 902,688,034 Special account credit (6,985,222) (24,567,099) Special account assets, net 1,078,514,867 878,120,935 Special account liabilities and reserve 1,060,172,936 899,085,200 Special account debit (184,652) (127,326) Special account liabilities and reserve, net 1,059,988,284 898,957,874 (2) Statements of financial position of special accounts as of March 31, 2013 and 2012, are as follows: Assets: Cash and deposits 48,568,332 72,349,167 Securities 1,014,628,476 795,166,841 Other assets 15,318,059 10,604,927 General account credit 6,985,222 24,567,099 1,085,500,089 902,688,034 Liabilities: Other liabilities 2,250,518 3,732,399 General account debit 184,652 127,326 2,435,170 3,859,725 Policyholder's reserves 38,472,779 95,380,004 Investment contract liabilities 1,019,264,987 799,845,471 1,057,737,766 895,225,475 1,060,172,936 899,085,200 Accumulated other comprehensive income 25,327,153 3,602,834 Total 1,085,500,089 902,688,034 (5) The analysis of deferred tax liabilities as of March 31, 2013 and 2012, is as follows: Current (18,972,598) (17,909,664) Non-current (201,219,688) (163,630,747) Total (220,192,286) (181,540,411) 96 2013 Annual Report Hyundai Marine & Fire Insurance 97

(3) Statements of comprehensive income on guaranteed principal and interest type special accounts for the years ended March 31, 2013 and 2012, are as follows: 1) Pension 2013 2012 Income Interest income 35,816,026 21,191,501 Gain on disposal of securities 4,263,758 1,908,072 Gain on valuation of securities 11,287 82,416 Foreign exchange gains 6,010 3,772 Gain on valuation of derivatives 1,263,144 321,055 Gain on transactions of derivatives 373,690 - Other income 140 431,715 Total 41,734,055 23,938,531 Expenses Interest expenses of investment contract liabilities 37,154,402 21,278,784 Special accounts commission paid 3,204,026 1,548,969 Commissions and fees 180,252 42,788 Asset management expenses - - Interest expenses 15,491 1,165 Loss on disposal of securities 22,976 736,627 Loss on valuation of securities 5,220 3,698 Foreign exchange losses 1,151,688 326,500 Total 41,734,055 23,938,531 (4) Statements of comprehensive income on performance-based dividend type special accounts for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Income Interest income 79,341 118,529 Dividend income 12,870 18,353 Gain on disposal of securities 54,363 110,554 Gain on valuation of securities 123,088 155,108 Other income 5,924 104,533 Total 275,586 507,077 Expenses Interest expenses of investment contract liabilities 35,586 7,917 Special accounts commission paid 17,572 16,724 Commissions and fees 1,393 2,216 Asset management expenses 10,930 13,790 Loss on disposal of securities 136,870 306,331 Loss on valuation of securities 60,274 145,745 Other expenses 12,961 14,354 Total 275,586 507,077 2) Retirements Insurance 2013 2012 Income Premium income 216,364 22,447,581 Interest income 1,945,316 6,954,161 Gain on disposal of securities 49,907 89,346 Gain on valuation of securities 340,589 157,759 Other income - 59,330 Total 2,552,176 29,708,177 Expenses Provision for policyholders' reserves (56,907,225) (170,916,134) Claims paid 58,813,972 198,454,814 Special accounts commission paid 344,339 875,142 Interest expenses 607 7,749 Loss on disposal of securities 300,483 1,173,582 Loss on valuation of securities - 113,024 Total 2,552,176 29,708,177 98 2013 Annual Report Hyundai Marine & Fire Insurance 99

25. Premium Income and Insurance Claims Paid (1) Premium income for the years ended March 31, 2013 and 2012, is as follows: (2) Insurance claims paid for the years ended March 31, 2013 and 2012, are as follows: Direct premiumwritten by the company Claims paid Reinsurance claims paid Assumed reinsurance premium Refund of claims paid Cancellation refund Refund of reinsuran ceclaims paid Premium income Commercial 986,169,796 123,504,569 (646,017) 1,109,028,348 Automobile 1,988,159,324 - (96,864,777) 1,891,294,547 Long term 6,492,109,409 - - 6,492,109,409 Annuities 691,225,804 - - 691,225,804 Total 10,157,664,333 123,504,569 (97,510,794) 10,183,658,108 Direct premiumwritten by the company Assumed reinsurance premium Cancellation refund Premium income Commercial 910,859,261 108,784,790 (5,775,950) 1,013,868,101 Automobile 2,040,906,927 - (100,375,044) 1,940,531,883 Long term 5,791,928,263 - - 5,791,928,263 Annuities 572,962,989 - - 572,962,989 Total 9,316,657,440 108,784,790 (106,150,994) 9,319,291,236 Insurance claims paid Commercial 555,112,675 110,266,261 (9,184,530) (430,988) 655,763,418 Automobile 1,495,399,839 - (55,040,343) - 1,440,359,496 Long term 1,157,377,749 - (1,688,852) - 1,155,688,897 Annuities 4,247,985 - - - 4,247,985 Total 3,212,138,248 110,266,261 (65,913,725) (430,988) 3,256,059,796 26. Reinsurance (1) Reinsurance ceded transactions for the years ended March 31, 2013 and 2012, are as of follows: Commercial Automobile Long term Annuities Total Reinsurance premium 728,189,459 16,002,206 212,801,729 1,702,532 958,695,926 Refund of return premium (6,283,739) (952,842) - - (7,236,581) Reinsurance claims recovered 436,240,824 19,229,026 202,644,903 1,096,957 659,211,710 Refund of reinsurance claims recovered (5,892,453) (791,695) (485,978) - (7,170,126) Reinsurance commission received 137,185,084 881,124 56,945 3,282 138,126,435 Reinsurance profit commission received 366,044 - - - 366,044 Commercial Automobile Long term Annuities Total Reinsurance premium 687,667,763 35,344,457 179,252,495 1,730,713 903,995,428 Refund of return premium (4,635,316) (1,740,514) - - (6,375,830) Reinsurance claims recovered 386,579,809 31,226,790 161,182,846 1,161,871 580,151,316 Refund of reinsurance claims recovered (4,364,637) (731,861) (325,059) - (5,421,557) Reinsurance commission received 137,439,547 4,759,041 - - 142,198,588 Reinsurance profit commission received 2,111,586 65 4,497,742 636,947 7,246,340 (2) Reinsurance assumed transactions for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Assumed reinsurance premium 123,504,569 108,784,790 Reinsurance claims received 110,266,261 44,529,852 Refund of reinsurance claims paid (430,988) (654,764) Reinsurance commission paid 40,620,111 36,069,720 Reinsurance profit commission paid 82,302 106,981 Claims paid Reinsurance claims paid Refund of claims paid Refund of reinsuran ceclaims paid Insurance claims paid Commercial 517,803,854 44,529,852 (7,489,064) (654,764) 554,189,878 Automobile 1,433,787,263 - (51,975,018) - 1,381,812,245 Long term 1,014,421,013 - (876,603) - 1,013,544,410 Annuities 4,373,160 - - - 4,373,160 Total 2,970,385,290 44,529,852 (60,340,685) (654,764) 2,953,919,693 100 2013 Annual Report Hyundai Marine & Fire Insurance 101

27. Profit and Loss from Financial Instruments Profit and loss from financial instruments for the years ended March 31, 2013 and 2012, are as follows: Financial assets: Interest income Dividend income Commission income Gain (loss)on valuation Gain (loss)on Disposal Impairment Gain (loss)on foreign Gain (loss)on foreign currency transaction currency translation Others Interest expenses Total Financial assets held for trading - 47,895-333,191 - - - - - - 381,086 Financial assets designated 1,903,381 3,102-14,777 4,574,516 - - - - - 6,495,776 Available-for-sale financial assets 301,780,855 27,351,050 - - 162,133,360 (44,049,954) (199,166) (3,187,843) 871,565-444,699,867 Held-to-maturity securities 61,094,029 - - - - - (7,962) (251,575) - - 60,834,492 Loans receivable 185,336,744-20,098 - - (4,073,354) - - 3,207,770-184,491,258 Cash and deposits 24,180,875 - - - - - 1,044,741 (3,494,441) - - 21,731,175 Other receivables 1,204,427 - - - - (141,695) 490,679 274,441 - - 1,827,852 Financial liabilities: Sub-Total 575,500,311 27,402,047 20,098 347,968 166,707,876 (48,265,003) 1,328,292 (6,659,418) 4,079,335-720,461,506 Borrowings - - - - - - - - - (3,934) (3,934) Other financial liabilities - - 8,692 - - - - 285,181 (259,756) (4,659,963) (4,625,846) Sub-Total - - 8,692 - - - - 285,181 (259,756) (4,663,897) (4,629,780) Derivatives - - - 7,410,383 (2,405,928) - - - (264,121) - 4,740,334 Total 575,500,311 27,402,047 28,790 7,758,351 164,301,948 (48,265,003) 1,328,292 (6,374,237) 3,555,458 (4,663,897) 720,572,060 Financial assets: Interest income Dividend income Commission income Gain (loss)on valuation Gain (loss)on Disposal Impairment Gain (loss)on foreign Gain (loss)on foreign currency transaction currency translation Others Interest expenses Total Financial assets held for trading - - - - - - - - - - - Financial assets designated 8,933,817 - - (22,983) 2,972,275 - - - - - 11,883,109 Available-for-sale financial assets 237,078,028 28,875,147 - - 54,166,248 (29,015,012) (31,296) 4,487,156 979-295,561,250 Held-to-maturity securities 50,133,643 - - - 10,744-5,649 305,503 - - 50,455,539 Loans receivable 172,086,366-20,153 - - (3,571,420) - - 2,473,131-171,008,230 Cash and deposits 16,244,324 - - - - - (348,380) 2,308,569 - - 18,204,513 Other receivables 1,254,488 - - - - 747,275 (1,230,416) 208,938 - - 980,285 Financial liabilities: Sub-Total 485,730,666 28,875,147 20,153 (22,983) 57,149,267 (31,839,157) (1,604,443) 7,310,166 2,474,110-548,092,926 Borrowings - - - - - - - - - (4,752) (4,752) Other financial liabilities - - 3,147,346 - - - - (8,791) (2,826,587) (2,550,745) (2,238,777) Sub-Total - - 3,147,346 - - - - (8,791) (2,826,587) (2,555,497) (2,243,529) Derivatives - - - (7,889,576) 1,167,443 - - - 355,176 - (6,366,957) Total 485,730,666 28,875,147 3,167,499 (7,912,559) 58,316,710 (31,839,157) (1,604,443) 7,301,375 2,699 (2,555,497) 539,482,440 102 2013 Annual Report Hyundai Marine & Fire Insurance 103

28. Claims Survey Expenses Claims survey expenses for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Claim survey fee paid: Salaries and wages 50,087,721 44,620,374 Severance benefits 11,218,236 7,262,467 Employee benefits 11,013,202 12,458,883 General administrative expenses 171,568,940 162,973,460 Sub-Total 243,888,099 227,315,184 Claim survey fee received (16,833,320) (20,520,902) Total 227,054,779 206,794,282 30. Asset Management Expenses, Maintenance Expenses on Property and Depreciation Expenses on Investment Property (1) Asset management expenses for the years ended March 31, 2013 and 2012, are as follows: (in thousands of Korean won) 2013 2012 General administration expenses 4,453,074 4,528,693 Salaries and wages 686,938 413,342 Severance benefits 618,648 973,044 Employee fringe benefits 36,356,049 30,453,268 Total 42,114,709 36,368,347 29. Management Expenses Management expenses for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 General administration expenses 217,167,008 205,520,231 Agent commission paid 44,231,267 31,776,317 Salaries and wages 36,795,676 41,237,800 Acquisition expenses and collection expenses 413,198,212 368,910,360 Severance benefits 46,772,242 52,057,338 Reinsurance commission paid 266,605,292 270,152,928 Employee fringe benefits 1,230,356 1,201,028 Co-insurance commission paid 270,372 502,699 Agency business commission paid 40,620,111 36,069,720 Reinsurance profit commission paid 82,302 106,981 Interest expense for deposit on ceded reinsurance treaties 481 1,273 Total 1,066,973,319 1,007,536,675 (2) Maintenance expenses on property and depreciation expenses on investment property for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Maintenance expenses on property Commission 10,151,701 9,003,155 Taxes and other expense 1,685,416 1,904,925 Insurance premium 191,569 196,404 Light, heat and water expense 171,042 174,096 Repairs and maintenance expense 26,114 325,230 Supplies expenses 7,916 8,214 12,233,758 11,612,024 Depreciation on investment property 7,344,666 7,051,342 104 2013 Annual Report Hyundai Marine & Fire Insurance 105

31. Employee Benefit Expense Employee benefit expenses for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Short-term employee benefits 262,857,517 253,985,535 Social security service 15,497,505 15,622,676 Other long-term employee benefits 8,850,285 3,557,688 Severance benefits 56,136,441 36,578,200 Total 343,341,748 309,744,099 32. Foreign Currency Translation (1) Foreign currency translation gain and loss for the years ended March 31, 2013 and 2012, are as follows: Assets Gain on foreign exchange translation Loss on foreign exchange translation Gain on foreign currency transactions Loss on foreign currency transactions Cash and deposits 2,900,255 6,394,696 3,914,181 2,869,440 Available-for-sale financial assets 2,888,817 6,076,660 45,400 244,566 Held-to-maturity investments 4,503 256,078 3,815 11,777 Insurance receivables 775,348 500,907 7,264,709 6,774,030 Liabilities Sub-Total 6,568,923 13,228,341 11,228,104 9,899,813 Insurance payables 1,311,805 1,026,624 - - Total 7,880,728 14,254,965 11,228,104 9,899,813 Assets Gain on foreign exchange translation Loss on foreign exchange translation Gain on foreign currency transactions Loss on foreign currency transactions Cash and deposits 2,402,881 94,312 1,874,274 2,222,654 Available-for-sale financial assets 6,472,828 1,985,672 102,816 134,112 Held-to-maturity investments 305,503-11,502 5,853 Insurance receivables 435,573 226,635 6,151,139 7,381,555 Liabilities Sub-Total 9,616,785 2,306,619 8,139,731 9,744,175 Insurance payables 1,380,121 1,388,912 - - Total 10,996,906 3,695,531 8,139,731 9,744,175 (2) Changes in foreign currencies translation recognized as other comprehensive income for the years ended March 31, 2013 and 2012, are as follows: 2013 2012 Beginning balance 1,306,188 1,271,753 Increase (3,635,270) 34,435 Ending balance (2,329,082) 1,306,188 106 2013 Annual Report Hyundai Marine & Fire Insurance 107

Major Status of the Company The Board of Directors and Executive Directors Organizational Chart Subsidiary Companies / Company History Global Networks The Board of Directors Mong-Yoon Chung Chairman Cheol-Young Lee CEO Chan-Jong Park CEO Myung-Hyun Na Standing Auditor Man-Woo Lee Outside Director Hyun-Myung Cho Outside Director Dong-Hoon Kim Outside Director Eu-Gene Song Outside Director Hi-Dong Kim Outside Director (as of July 1, 2013) Executive Directors CEO Cheol-Young Lee CEO Chan-Jong Park Management Support Group Myung-Hyun Na Standing Auditor Yong-Il Cho Commercial Insurance Marketing Group / Commercial Insurance Marketing Division 1, 2 Gab-Soo Kim Personnel, General Administration Division Deok-Yong Park Marketing Division Sung-Jug Lee Claims Group Yun-Sun Lee Management Support Division Jong-Seon Kim Gyeongin Regional Headquarter Seong-Tae Hong Claims Service Division Seung-Ok Yang Long-Term Insurance Division Young-Ju Kim Long-Term & General Ins. Claims Division Yong-Koo Shim Personal Line Group Jong-Soo Lee Corporate Marketing Unit Soon-Gye Hong Corporate Marketing Strategy Unit Young-Chul Lee Asset Management Division, Loan Business Unit Jung-Dong Yoo Commercial Insurance Marketing Unit 1 Kab-Pil Choi Overseas Business Unit Rak-Hyoung Chung General Insurance Division Byoung-Tae Kwon Bancassurance Business Division Sung-Jae Lee CCO [Chief Customer Officer] Dae-Soon Shin Long-Term Underwriting Unit Su-Sang Han Gangnam Regional Headquarter Moon-Bok Lee Commercial Insurance Marketing Unit 2 Jae-Choon Lee Automobile Claims Division 1 Jae-Jun Ro Gangbuk Regional Headquarter Sung-Il Koh Honam Regional Headquarter Se-Young Jun Compliance Officer Seung-Chan Oh President of Hyundai Insurance (China) Co., Ltd. Sang-Hwa Kim Daegu Gyeongbuk Regional Headquarter Jong-Ho Kim Automobile Claims Division 3 In-Kwan Hwang Investment Unit Yong-Chan Kang Busan Regional Headquarter Ju-Sik Park Automobile Claims Division 2 Jae-Won Han Commercial Insurance Marketing Unit 3 Chul-Sik Choi CISO [Chief Information Security Officer] Sang-Wan Kim Jungbu Regional Headquarter Kyoung-Shik Lee Claims Services Unit Chul-Hyun Baik Commercial Insurance Marketing Unit 4 Kyung-Ho Ahn General Manager of Internal Auditing Dept. Neung-Sik Kim Gyeongnam Regional Headquarter Min-Bong Youn New Channel Marketing Division Du-Cheol Shin Corporate Planning Unit 108 2013 Annual Report Hyundai Marine & Fire Insurance 109

Major Status of the Company The Board of Directors and Executive Directors Organizational Chart Subsidiary Companies / Company History Global Networks Organization Chart The Board of Directors (as of July 1, 2013) Standing Auditor Internal Auditing Dept. Automobile Insurance Dept. Special Investigation Dept. President & CEO Management Support Group Compliance Officer Asset Management Division CISO [Chief Information Security Officer] Long-Term Insurance Division Management Support Division Personnel, General Administration Division CCO [Chief Customer Officer] Compliance Dept. Legal Affairs Dept. Corporate Planning Unit Corporate Planning Dept. Strategy Support Dept. Research Center Finance & Accounts Dept. Actuarial Dept. Risk Management Dept. Personnel Dept. General Affairs Dept. Emergency Planning Dept. Customer Satisfaction Promotion Dept. Customer Support Dept. Public Relations Team Investment Unit Financial Planning Dept. Investment Banking Dept. Retirement Pension Management Team Loan Business Unit Alternative Investment Dept. Personal Loan Dept. Information Strategy Dept. Long-Term Underwriting Unit Long-Term Insurance Dept. Underwriting Center Marketing Actuarial Dept. Long-Term Insurance Management Dept. Claims Service Division Automobile Claims Division 1 Automobile Claims Division 2 Automobile Claims Division 3 Long-Term & General Ins. Claims Division Marketing Division Automobile Claims Support Dept. Automobile Litigation Dept. Jungang Automobile Claims Service Center Gangnam Automobile Claims Service Center Gangseo Automobile Claims Service Center Bukbu Automobile Claims Service Center Suwon Automobile Claims Service Center Incheon Automobile Claims Service Center Busan Automobile Claims Service Center Daegu Automobile Claims Service Center Ulsan Automobile Claims Service Center Gangwon Automobile Claims Service Center Daejeon Automobile Claims Service Center Cheonan Automobile Claims Service Center Gwangju Automobile Claims Service Center Jeonju Automobile Claims Service Center Marketing Planning Dept. Marketing Support Dept. New Channel Marketing Division New Channel Marketing Dept. 1 New Channel Marketing Dept. 2 New Channel Marketing Dept. 3 New Channel Marketing Support Team Bancassurance Business Division Claims Services Unit Long-Term Ins. Claims Support Dept. Property & Casualty Claims Dept. Long-Term Ins. Claims Dept. Bancassurance Business Dept. Gangbuk Bancassurance Marketing Dept. Gangnam Bancassurance Marketing Dept. Gyeongin Bancassurance Marketing Dept. Jungbu Bancassurance Marketing Dept. Yeongnam Bancassurance Marketing Dept. Commercial Insurance Marketing Division 1 Corporate Marketing Strategy Unit Commercial Insurance Marketing Strategy Dept. Retirement Pension Dept. Commercial Insurance Marketing Unit 1 Commercial Insurance Marketing Dept. 1 Commercial Insurance Marketing Dept. 3 Commercial Insurance Marketing Dept. 6 Commercial Insurance Marketing Unit 3 Commercial Insurance Marketing Dept. 2 Commercial Insurance Marketing Dept. 5 Claims Group Personal Line Group Commercial Insurance Marketing Group Certified Senior Actuary General Insurance Division Actuary Support Team Property & Casualty Dept. General Insurance Planning & Development Dept. Marine Dept. Overseas Business Unit Overseas Dept. 2 Overseas Branches, 1 Subsidiary Company and 4 Representative offices Gangbuk Regional Headquarter Gangnam Regional Headquarter Gyeongin Regional Headquarter Jungbu Regional Headquarter Honam Regional Headquarter Busan Regional Headquarter Daegu Gyeongbuk Regional Headquarter Gyeongnam Regional Headquarter Gangbuk Headquarter Support Dept., 10 Regional Business Dept. Gangnam Headquarter Support Dept., 10 Regional Business Dept. Gyeongin Headquarter Support Dept., 9 Regional Business Dept. Jungbu Headquarter Support Dept., 5 Regional Business Dept. Honam Headquarter Support Dept., 7 Regional Business Dept. Busan Headquarter Support Dept., 5 Regional Business Dept. Daegu Gyeongbuk Headquarter Support Dept., 6 Regional Business Dept. Gyeongnam Headquarter Support Dept., 5 Regional Business Dept. Commercial Insurance Marketing Division 2 Commercial Insurance Marketing Unit 4 Commercial Insurance Marketing Dept. 4 Commercial Insurance Marketing Dept. 7 Commercial Insurance Marketing Unit 2 Global Corporate Services Dept. Public Institutions Insurance Dept. Commercial Insurance Marketing Dept. 8 Corporate Marketing Unit Corporate Marketing Dept. 1 Corporate Marketing Dept. 2 Corporate Marketing Dept. 3 110 2013 Annual Report Hyundai Marine & Fire Insurance 111

Major Status of the Company The Board of Directors and Executive Directors Organizational Chart Subsidiary Companies / Company History Global Networks Subsidiary Companies Company History 1 Hyundai C&R Co., Ltd. 5 Hyundai Hicar Direct Auto Insurance Co., Ltd. 1955. 03 Korea s first marine insurance company established 2003. 04 Mid- and long-term development plan Vision Hi 2010 TYPE OF BUSINESS Educational Business, Facility TYPE OF BUSINESS Online Auto Insurance (Company name: Dongbang Marine Insurance Co., Ltd.) declared Management, Call center Management CAPITAL STOCK 1,000 million won INVESTMENT BY HYUNDAI INSURANCE No. of stocks owned - 200,000 shares (100%) 2 Hyundai Hicar Claims Adjustment Service Co., Ltd. TYPE OF BUSINESS Automobile Claims Service, Emergency Road Service CAPITAL STOCK 1,000 million won INVESTMENT BY HYUNDAI INSURANCE No. of stocks owned - 200,000 shares (100%) 3 Hyundai Investments Co., Ltd. CAPITAL STOCK 140,000 million won INVESTMENT BY HYUNDAI INSURANCE No. of stocks owned - 28,000,000 shares (100%) 6 Hyundai U.K. Underwriting Ltd. TYPE OF BUSINESS Insurance CAPITAL STOCK GBP 3,450,000 INVESTMENT BY HYUNDAI INSURANCE No. of stocks owned - Nil (100%) 7 Hyundai Investment (America), Ltd. TYPE OF BUSINESS Investment CAPITAL STOCK USD 25,000,000 1976. 10 1979. 07 1985. 10 1987. 08 1989. 08 1990. 09 1992. 12 1994. 02 1994. 12 Opened the Japan branch Opened the London Representative Office in the U.K. Changed the company name to Hyundai Marine & Fire Insurance Co., Ltd. Opened the New York Representative Office in the U.S. Stocks listed with KOSPI Ranked No.1 in the FY 1989 General Management Assessment for Non-Life Insurers Acquired business authorization in the state of California, US as the first company in Korea s insurance industry to do so Opened the U.S. branch Annual direct premiums sales surpassed 1 trillion won 2003. 05 2004. 09 2005. 10 2005. 11 2005. 12 2006. 09 2007. 03 2007. 12 2008. 04 2009. 02 Ethical management declared Launched online automobile insurance dubbed Hicar Direct Long-term Insurance brand Hi-Life adopted Rated BBB+ in credit by S&P Subsidiary (Hyundai Hicar Direct Auto Insurance Co., Ltd.) established US investment corporation [Hyundai Investment (America), Ltd.] established Established (Hyundai Insurance (China) Co., Ltd.) Subsidiary (Hyundai Investment Co., Ltd.) launched Subsidiary (Hicapital Co., Ltd.) launched Opened the Shanghai Representative Office in China TYPE OF BUSINESS Asset Management INVESTMENT BY HYUNDAI INSURANCE Number of stocks 1996. 11 Acquired insurance business permit from the state 2009. 09 Total assets surpassed 10 trillion won CAPITAL STOCK 30,000 million won owned- 2,500 shares (100%) government of Oregon, US 2010. 01 Next-generation system CIS (Core Insurance System) opened INVESTMENT BY HYUNDAI INSURANCE No. of stocks owned - 6,000,000 shares (100%) 4 Hyundai Hilife Claims Service Co., Ltd. TYPE OF BUSINESS Long-term & Commercial Claims Service, Risk Management Service CAPITAL STOCK 2,500 million won INVESTMENT BY HYUNDAI INSURANCE Number of stocks owned- 500,000 shares (100%) 8 Hyundai Insurance (China) Co., Ltd. TYPE OF BUSINESS Insurance CAPITAL STOCK RMB 300,000,000 INVESTMENT BY HYUNDAI INSURANCE Number of stocks owned- Nil (100%) 9 Cosmos Risk Solutions Asia Pte. Ltd. TYPE OF BUSINESS Reinsurance Broker CAPITAL STOCK USD 1,000,000 INVESTMENT BY HYUNDAI INSURANCE No. of stocks owned 490,000 shares (49%) 1996. 12 1997. 01 1997. 03 1997. 06 1997. 08 1998. 05 1999. 01 2000. 02 2000. 07 Selected as the 40th standing non-life insurer by S&P Acquired ISO 9002 certification for the first time ever in Korea s non-life insurance industry Established the Ho Chi Minh Representative Office in Vietnam Established a Lloyd s subsidiary in London, U.K. Opened the Beijing Representative Office in China Opened the Hyundai Insurance Training Center New CI declared Acquired subsidiaries (Kyungil Industrial Development Co., Ltd., Hyundai Marine Claims Services Co., Ltd.) Established a subsidiary (Hyundai Investment Consulting Co., Ltd.) 2010. 02 2010. 07 2011. 02 2011. 02 2011. 04 2011. 11 2012. 03 2012. 10 2012. 12 Selected as a formal non-life insurer for the Expo 2012 Yeosu Korea Established the Hyundai Insurance Research Center Risk premiums of long-term insurance surpassed 1 trillion won Cosmos Risk Solutions Asia Pte. Ltd., a Singapore joint venture broker, established Declared Vision Hi 2015 Rated A-(Excellent) by A.M. Best for 9 consecutive years Operated the Traffic Accident Claims Service team for the 2012 Seoul Nuclear Security Summit Rated A (Excellent) by A.M. Best Total assets exceeded 20 trillion won 2000. 10 Designated as the official insurer of the 2002 FIFA World Cup 2013. 06 Rated A- stable by S&P 2002. 09 Automobile insurance brand Hicar adopted 112 2013 Annual Report Hyundai Marine & Fire Insurance 113

Major Status of the Company The Board of Directors and Executive Directors Organizational Chart Subsidiary Companies / Company History Global Networks Global Networks Since launching the business in Japan for the first time ever in Korea s insurance industry in October 1976, Hyundai Insurance has been playing a role as a leading company in the globalization of Korea s insurance industry from the start. Currently, Hyundai Insurance has the following global network: China Subsidiary, US Investment Subsidiary, London Subsidiary, Singapore Joint Venture Broker, US Branch, Japan Branch, London Representative Office, Ho Chi Minh Representative Office, Beijing Representative Office, and Shanghai Representative Office. The branch in Japan is the only branch of a Korean non-life insurance company currently operating in Japan. It engages in the sale of insurance products to Japanese businesses based on the know-how and experience it has accumulated over almost 40 years. The branch in the United States, which was established in February 1994, has provided high-quality insurance services to Seoul-based businesses in the world s largest insurance market. It started selling home owners insurance in 2012. In September 2006, the company established a local investment corporation in that country in an effort to learn more advanced investment techniques and enhance the Company s expertise in asset operation. The London Representative Office that opened in July 1979 carries out prompt information collection activities on advanced insurance products and market situation of Lloyd s underwriters, which leads the world insurance industry, with long history and tradition in London, U.K., the mecca for insurance. The Ho Chi Minh Representative Office in Vietnam was set up to offer customer services to Korean companies that entered Vietnam and in response to the need to secure a local bridgehead for business penetration in Southeast Asia. Since March 1997, the office has been operating its business. Currently, the office establishes a close cooperative relationship with the local main insurers like Bao Viet and Bao Minh. It is collecting local information to establish a business office. With the importance of China s insurance market with its unlimited market potential increasing, Hyundai Insurance opened the Beijing Representative Office in August 1997; it has been steadily building the base to penetrate China s insurance market. As a result, in March 2007, Hyundai Insurance (China) Co., Ltd., was established in Beijing. With the opening of the Shanghai Representative Office in February 2009, we have laid the foundation for entry into the central and southern parts of China. - London Representative Office - Hyundai Insurance (China) Company Ltd. - Beijing Representative Office The Chinese subsidiary sells commercial insurance products, such as property insurance and liability insurance, and group accidental insurance. It has started to sell automobile insurance in May 2008. The Chinese subsidiary is doing its best to offer differentiated services including prompt claims service, products meeting customers needs, and expert-level risk management as it actively expands the business in China. To expand its business area, it established its first branch in Qingdao in October 2011 and has begun operations there. Cosmos Risk Solutions Asia Pte. Ltd., which the Company established jointly with Cosmos Service Co. Ltd., a brokerage business in Hong Kong, obtained the approval for its reinsurance brokerage business from the Monetary Authority of Singapore in March 2011, and provides insurance and reinsurance services for customers throughout Asia. Singapore is the reinsurance market hub where world-renowned reinsurance and broker companies such as Lloyd s do business. We expect to provide professional insurance services to Korean companies that have penetrated the Asia and Middle East markets and activate business with local insurers through the establishment of a broker company. - U.S. Branch - Hyundai Investment (America), Ltd. Hyundai Insurance (China) Company Ltd. Room No.508, Hyundai Motor Tower, 38 Xiaoyun Road, Chaoyang District, Beijing, China Tel : 86-10-8442-8100 / Fax : 86-10-8453-9103 Hyundai Investment (America), Ltd. 300 Sylvan Avenue, Englewood Cliffs, NJ 07632, U.S.A. Tel : 1-201-871-8881 / Fax : 1-201-871-8890 Cosmos Risk Solutions Asia Pte. Ltd. #40-01, 9 Raffles Place, Republic Plaza, Singapore 048619 Tel : 65-6317-0320 / Fax : 65-6317-0329 U.S. Branch 300 Sylvan Avenue, Englewood Cliffs, NJ 07632, U.S.A. Tel : 1-201-816-4084 / Fax : 1-201-816-4086 Japan Branch 8F, NBF Hibiya Bldg. 1-1-7, Uchisaiwai-Cho, Chiyoda-Ku, Tokyo, Japan 100-0011 Tel : 81-3-5511-6565 / Fax : 81-3-5511-6566 London Representative Office 7F, 37-39 Lime Street, London EC3M 7AY, United Kingdom Tel : 44-207-929-3822 / Fax : 44-207-929-3826 Hochiminh Representative Office Room 710, 7F, Sun Wah Tower, 115 Nguyen Hue Blvd., Dist.1, Ho Chi Minh City, Vietnam Tel : 84-8-3827-8214 / Fax : 84-8-3827-8212 Beijing Representative Office Room No.518, Hyundai Motor Tower, 38 Xiaoyun Road, Chaoyang District, Beijing, China Tel : 86-10-8453-9071 / Fax : 86-10-8453-9082 Shanghai Representative Office Room No.1402 Part(C) Orient International Plaza, 85 Lou Shan Guan Road, Shanghai, China Tel : 86-21-6278-7740 / Fax : 86-21-6278-7741 Shanghai Representative Office Japan Branch Cosmos Risk Solutions Asia Pte. Ltd. Hochiminh Representative Office 114 2013 Annual Report Hyundai Marine & Fire Insurance 115