This presentation has been prepared by ING Life Insurance Korea, Ltd. (the “Company”) solely for informational

purposes in its presentation to current and prospective investors of the Company and should not be construed to be,

directly or indirectly, in whole or in part, an offer to buy or sell and/or recommendation and/or a solicitation of an offer

to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it

form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities

or otherwise.

The information contained in this presentation has not been independently verified. No representation or warranty

expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or

correctness of the information or any opinion contained herein. The information contained in this presentation should

be considered in the context of the circumstances prevailing at the time and will not be updated to reflect material

developments that may occur after the date of the presentation. Neither the Company nor any of its affiliates,

officers, directors or advisors shall have any liability whatsoever (in negligence or otherwise) for any loss arising

from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This document is not intended for access or use by any person or entity in any jurisdiction where such access or use

would be contrary to applicable laws or regulations. By reviewing this document each recipient is deemed to

represent that it is a person who may lawfully access this document in accordance with the laws and regulations of

the jurisdiction in which it is located. Other persons should not rely or act upon this presentation or any of its

contents.

On 7 September, the Company (079440.KS) paid an interim dividend of KRW 700 per

share (based on Record Date of 31 July 2017)

Profitable New Business – Protection new business volume grew +8.8% (+11.5% YTD)

Double Digit Earnings Growth – Operating Result Before Tax +14.1% to KRW 112 bln

(+14.4% YTD), and Profit After Tax +22.4% to KRW 92 bln (+19.8% YTD)

Superior Capital Position – RBC at 502%

Salesforce Growth – number of FCs increased +2% against an estimated -4% decline in

the overall FC market

01. Key Financial Highlights

02. New Business Growth

03. VNB (Value of New Business) Growth

04. VNB (Value of New Business) Margin

05. Premium Income & Profits

06. Source of Earnings

07. Investment Results

08. Reserves / Crediting Rate

09. Efficiency

10. Capital Adequacy

11. Next Reporting Due Date

Note 1) Includes premium income from variable business

Note 2) Operating Result Before Tax: Profit Before Tax excludes past suicide claims and market variance (Realized capital & FX gains and losses/Impairments)

Note 3) 2016 Profit After Tax excludes past suicide claims

Note 4) Adjusted investment yield & 12-month rolling basis: Net Investment Income/Invested Asset (Excludes Unrealized Gains and Losses)

(Unit: KRW bln)

Q3 2017 Q3 2016 YTD 2017 YTD 2016

Annualized Premium Equivalent (APE) 200.0 230.0 -13.0% 526.7 521.9 0.9%

Protection APE 80.2 73.7 8.8% 222.7 199.8 11.5%

Value of New Business (VNB) 37.6 33.0 13.9% 98.0 68.6 42.8%

Premium Income 1) 1,049.7 1,063.4 -1.3% 3,098.7 3,027.8 2.3%

Operating Result Before Tax 2) 112.4 98.5 14.1% 336.3 294.0 14.4%

Profit After Tax 3) 92.2 75.3 22.4% 273.6 228.3 19.8%

Total Asset 31,257.0 31,798.5 -1.7% 31,257.0 31,798.5 -1.7%

Invested Asset 24,483.7 24,952.7 -1.9% 24,483.7 24,952.7 -1.9%

Investment Yield 4) 4.1% 4.2% -0.2%p n/a n/a n/a

Shareholders' Equity 3,798.2 5,046.9 -24.7% 3,798.2 5,046.9 -24.7%

RBC Ratio 502% 346% 155%p 502% 346% 155%p

yoy yoy

Note 1) Operating Result Before Tax: Profit Before Tax excludes market variance (Realized capital & FX gains and losses/Impairments)

Note 2) Profit After Tax

APE fell due to lower BA Savings, while Protection APE increased 9%

Value of New Business rose 14%, held back by the drop in total APE

Premium Income was 1% lower

ORBT1)

and PAT2)

each showed double-digit growth

Total Assets and Invested Assets both reduced slightly

Shareholders’ Equity 24.7% lower yoy, largely due to rising interest rates

RBC Ratio improved 155%p to 502%

123.1 121.0

81.5 51.1

25.4

27.9

230.0

200.0

Q3 2016 Q3 2017

FC BA GA

284.8 286.2

166.5 165.7

70.6 74.9

521.9 526.7

YTD2016

YTD2017

APE: Annualized Premium Equivalent

FC: Financial Consultant, BA: Bancassurance, GA: General Agency

73.7

199.8

80.2

222.7

Q3

2016

Q3

2017

YTD

2016

YTD

2017 Q3

2016

Q3

2017

9%

11% -13% 1%

Total APE reduced by 13% (KRW -30 bln)

The reduction in the tax benefit ceiling,

which became effective from April,

continues to impact volumes of low-

margin Savings products, with BA

channel producing KRW 30 bln lower

APE in the quarter

3Q is typically the strongest quarter for

FC volumes, being almost double 2Q

volume

Protection APE Growth

Protection volume grew 9%, driving VNB

higher

Protection sales in FC channel were 1.6%

lower (but up 1.0% YTD) as the summer

sales campaign drove the mix of Variable

business up to just over 50% in the

quarter (39% YTD)

GA channel increased Protection sales

38% yoy (up 44% YTD) focusing on

Perfect UWL1) and VUWL2), while Non-

Par Living Benefit VUWL (launched in Q1

2017) generated 5.8% of GA new

business this quarter

Note 1) Universal Whole Life

Note 2) Variable Universal Whole Life

33.0

68.6

37.6

98.0

Q3 YTD

2016 2017

VNB: Value of New business

14%

YTD

2016

YTD

2017

Q3

2016

Q3

2017

YTD

2017

YTD

2016

43%

Volume Product &

Business

Mix

Market Expenses

13.2%

18.6%

0.6%p

4.5%p 0.3%p 0.1%p

14% growth in VNB following 9% growth

in Protection APE

VNB increased by 14% yoy from a high

base in 3Q16, driven by increased

Protection volumes

Further VNB growth was held back by the

drop in total APE, causing average policy

costs to be higher than prior year

While BA channel only sells low-margin

Savings products, larger BA volumes help

to absorb overhead expenses and to

manage unit costs

VNB margin rose 5.4%p to 18.6% (YTD)

driven by product & business mix

The continued shift towards more

Protection mix in FC and GA channels led

to improved VNB margin, while new

product launches and repricing supported

margin growth

NIER1)

increased from 2.90% to 3.15% in

3Q, driven by the rise in market interest

rates, lifting VNB margin by 0.3%p

Non-economic assumptions will be

reflected in 4Q

Note 1) Net Investment Earned Rate

28.7%

2.3%

5.3%

37.9%

3.9% 5.4%

Protection Savings Variable

YTD 2016 YTD 2017

21.8%

1.2%

6.3%

29.3%

2.9%

12.4%

FC BA GA

YTD 2016 YTD 2017

VNB margins improved on a YTD basis

Margins improved for all 3 product groups

on a YTD basis

Variable margins are under pressure from

limitations on expense loadings

VNB margins are higher for each channel

FC channel VNB margin remains strong

BA channel margin is slowly improving

with the introduction of ING VIP USD

Savings and Non-Par ING Good Start VL,

but margins will remain low due to the

nature of this channel

GA channel almost doubled VNB margin

with 94% Protection mix (YTD) and the

balance in Variable (vs. same period 2016

with 70% Protection and 30% Variable)

970.7 917.8

92.8 131.9

1,063.4 1,049.7

Regular Single

2,777.4 2,780.1

250.4 318.5

3,027.8 3,098.7

98.5

112.4

75.3

92.2

Operating Result Before Tax (excl. past suicide claims)

Profit After Tax (excl. past suicide claims)

294.0

336.3

228.3

273.6

Premium income includes variable business Operating Result Before Tax: Profit Before Tax excludes past suicide claims and

market variance (Realized capital & FX gains and losses/Impairments)

-1%

Q3

2016

Q3

2017

YTD

2017

YTD

2016

Q3

2016

Q3

2017

2%

14%

14% ORBT

ORBT

YTD

2017

YTD

2016

Premium Income marginally lower from

regular premium Savings

Regular premium income fell slightly

driven by lower volumes of Savings

products, while premium income from

Protection and Variable products both

increased

Single premium income grew 42%, and

now represents 12.5% of quarterly

premium income

Profit growth remains strong with

improved GMxB release and improved

expense margins

Excluding suicide claims, ORBT rose

14%, supported by higher release of

GMxB reserve and increased expense

margins, offset by marginally higher

morbidity claims and IBNR reserves

PAT increased 22%, reflecting lower

impairments in Q3 2017 compared to the

prior year

4Q profits will be impacted by year-end

reserve adjustments, including GMxB

release

Proposed increase in Corporate Income

Tax rates for 2018 will cause an increase

in 2017 year-end DTL and will reduce 4Q

PAT by an estimated KRW 7~8 bln

Loadings +563.6

Risk Premiums

+531.6

Investment Return +670.1

-379.3

Claims -431.6

-597.1

Expenses2)

122.8

184.3

100.9

100.0

77.0

73.0 300.7

357.2

YTD2016

YTD2017

Investment Margin

Mortality & MorbidityMargin

Expense & OtherMargins

Note 1) Other Margins includes Reserves, Lapses, Surrenders, Policyholders’ Profit Share, and others

Note 2) Expenses: Acquisition and Maintenance Expenses – Other Margins

Note 3) PBT: Profit Before Tax

Mortality Margin 38.2

Morbidity Margin

4.0

IBNR Moveme

nt & Reinsur

ance Margin -

9.0

Investment

Margin 21.5

Other Margins

7.7

Source of Earnings

(KRW bln) 118.4

Expense Margin 54.8

9.3%

82

-

ROE Number of Shares (mln) Adjusted Net Worth

1)

42.3 63.7

36.3

33.2 20.7

21.5 99.3

118.4

Q32016

Q32017

PBT

357.2

3)

184.3

100.0

73.0

Investment

Credited

Balanced Source of Earnings with a positive investment margin

The growth in Expense & Other margins this quarter is largely driven by a higher release of

GMxB reserves (+KRW 13 bln) on our Living Benefit VUWL product where GMDB1) and

GMSB2) reserves have been combined to match market practice – previously they were

maintained independently. Expense margin improved (+KRW 7 bln) from collecting more

expense loadings while actual expenses reduced

Mortality margin increased KRW 3 bln while Morbidity margin reduced by KRW 3 bln.

However, an increase in monthly claims volatility drove IBNR to increase by KRW 3 bln,

leading to a net KRW -3 bln reduction in Mortality & Morbidity Margin

Investment Margin increased slightly as higher amounts credited were covered by an

increase in investment return

Note 1) Guaranteed Minimum Death Benefit

Note 2) Guaranteed Minimum Surrender Benefit

86.6% 85.6%

8.9% 9.3%

2.6% 2.4%

0.8% 1.0% 0.6% 1.3%

0.4% 0.4% 0.1% 0.0%

Other Securities

Domestic Stock

Investment Funds

OverseasSecurities

Cash & CashEquivalent

Loans

Domestic Bonds

Note 1) Adjusted investment yield & 12-month rolling basis: Net Investment Income/Invested Asset (Excludes Unrealized Gains and Losses)

Note 2) Arithmetic mean of 25 life insurance companies. Q3 2017 results are not yet available

Alternative

Investments 2.7%

Q3

2016

Q3

2017

4.5% 4.4%

4.2% 4.2% 4.1% 4.1% 4.1%

4.0% 3.8% 3.8%

3.7% 3.7% 3.7%

Q12016

Q2 Q3 Q4 Q12017

Q2 Q3

ING Life Industry Average

Investment return remains above

industry average

Asset duration increased by 0.2 years

during the quarter due to bond

purchases, but commitments were also

made to new alternative investments

including EUR 50 mln to a European

Infrastructure Fund and KRW 86 bln into

Domestic High Dividend Equity Funds

Asset portfolio remains low-risk

Domestic Bonds reduced by 1%p while

more new money was allocated to

alternative investment classes, including

overseas securities

Loans increased by 0.4%p to 9.3% of our

asset portfolio including policy loans

which increased to 8.2% and provide a

higher risk-free yield than from domestic

bonds

175 328

512

921

495

938

413 628

923 625

218 153 222

571

993

97

40

873

266

786

236

239

89 69

131

1,644

711

1,686

966

1,050

217

60

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Maturity of bonds in each year

KRW in billions

Equities/

Alternative

Investments

Fixed

Income

Asset1)

Etc2)

KRW

21,451

bln

KRW

2,002

bln

KRW

493 bln

Q3

2017

KRW

24,484

bln

Policy

Loans

KRW

538

bln

4% and above Below 4%

2.37%

4.77%

3.60%

3.65%

3.48%

4.67%

5.17%

3.11% 2.59%

4.15%

3.35%

3.76%

4.52% 3.41%

3.70%

3.10%

*Maturity of bonds between Oct. and Dec.

2017

*

Note 1) including bonds and time deposits

Note 2) including short-term deposit, RP, mortgage loans, etc

Assets are managed under ALM principle in line with European practices

Our investment approach is primarily focused on ALM, and yet investment return is above

the industry average

Decomposing the interest earning assets by maturity year shows that a large proportion of

our high interest bonds and time deposits mature after 2025, providing a strong underlying

base for future investment income

This is a pro-forma presentation based solely on assets held on the balance sheet as at

3Q17 and is not a forecast or projection

12,119 11,944 11,616 11,104 10,183 9,688 8,750 8,338 7,709 6,787 6,162 5,944 5,791 5,569 4,999 4,005

9,333 9,292 8,419 8,153

7,367 7,131 6,892 6,803 6,734

6,603 4,959 4,247

2,561 1,596

546 328

594 594 594

594 594

594 594 594 594

594

594 594

594 594

594 594

1,408 1,408 1,408

1,408 1,408

1,408 1,408 1,408 1,408

1,408

1,408 1,408

1,408 1,408

1,408 1,408

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Bonds (Below 4%) Bonds (4% and Above)

Policy Loan (Below 4%) Policy Loan (4% and Above)

Bonds and Policy Loans (AUM)

KRW in billions

Dividend

Income

Interest

Income

Capital

Gain, etc

Expense

0.06%

3.48%

0.17%

(0.17%)

Q3

2017

4.06%

Policy

Loans

Income 0.52%

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

YTM 3.84% 3.78% 3.79% 3.80% 3.81% 3.86% 3.88% 3.91% 4.01% 3.99% 3.94% 3.75% 3.66% 3.66% 3.70% 3.70%

Weighted average book yield of bonds, policy

loans and time deposits at the end of the year

(at the end of Sep. 2017)

Assets are managed under ALM principle in line with European practices

Removing the maturing bonds from our portfolio each year, illustrates an AuM run-off for our

interest earnings assets (including policy loans) which reduces each year, as expected

This AuM profile for interest earnings assets – ignoring new investments and reinvestment

– provides a stable base for future investment income with year-end weighted average book

yields of bonds, policy loans and time deposits ranging between 3.66% and 4.01%

This is a pro-forma presentation based solely on assets held on the balance sheet as at

3Q17 and is not a forecast or projection

48.2% 49.0%

51.8% 51.0%

10.2% 10.1%

Floating Crediting RateFixed Crediting RateFixed Crediting Rate 6% or More

18,889

20,231

4.1% 4.0%

Reserves Crediting Rate

Q3

2016

Q3

2017

Q3

2016

Q3

2017

Crediting rate continues to be managed

lower

Fixed rate guarantees decreased by 5 bps

from 5.02% to 4.97% as new business

continues to dilute the portfolio

Floating crediting rate on Savings

products was reduced from 3.18% to

3.04% following a 20 bps reduction in the

main crediting rate since end-Q3 2016.

Competitive pressure limits further

significant reduction in crediting rates

Maintaining a sound reserve composition

Fixed reserve proportion increased

slightly but the split remains around 50:50

Note 1) Excludes past suicide claims

74.8% 78.8%

76.3%

90.6% 77.5%

5.0% 5.5% 5.0% 5.3%

Q3 YTD

Expense Ratio (Maintenance Cost / Premium Income)

Loss Ratio (Claims/Risk Premium)

Q3

2016

Q3

2017

YTD

2017

YTD

2016

Q3

2016

Q3

2017 YTD

2017

YTD

2016

YTD

2017

YTD

2016

1,237 1,234

83.4% 79.9%

67.4% 69.9%

Number of In-force Customers

Persistency - 13th month

Persistency - 25th month

-3.5%p

2.5%p

1)

1)

Expense/Loss ratio

Expense ratio remained flat for the

quarter, with a slight reduction on a YTD

basis

Morbidity claims increased by more than

Morbidity Risk Premiums, thus moving

the loss ratio up by 4.0%p for the quarter,

despite a partial offset from lower

mortality claims

Persistency/Number of in-force

policyholders

Whilst 25th month persistency improved,

the 13th month persistency dropped to

just below 80%

GA channel exhibits lower persistency

and has an increasing weight in our new

business portfolio, thus diluting the

company-level persistency

FC channel’s 13th month persistency

reduced slightly due to a high-CSV

variable product sold in 2016 which

altered customer behaviour and resulted

in higher early surrenders, especially

given the high stock market returns in

1H17 – the product was repriced in 1H17

to address the issue

5,047

3,798

+333 -1,358

-224

Q3 2016 PAT OCI Dividend Q3 2017

5,375

3,936

1,553

785

346%

502%

Available Capital Required Capital RBC Ratio

RBC Ratio: Risk Based Capital Ratio OCI: Other Comprehensive Income

Q3

2016

Q3

2017

Q3

2016

Q3

2017

Shareholders’ Equity reduced following

dividend payout and interest rate rise

Rising interest rates are good for life

insurers, but they have a negative impact

on Unrealized Capital Gains within OCI

Interim Dividend of KRW 57.4 bln was

paid out in the quarter

Bond portfolio is currently booked as

AFS, which means it is quite sensitive to

interest rate movements

Combination of lower Shareholders’

Equity and strong PAT enabled ROE to

rise to 9.3% in Q3 2017 (from 6.4% in Q3

2016)

RBC rises to 502%, including impact from

regulation changes

RBC increased by 156%p as the effect of

lower Required Capital (favourable

regulation changes) more than offset the

reduction in Available Capital

RBC regulation changes announced by

the FSS were largely adopted early and

reflected in our 2Q17 and 3Q17 RBC

Strong RBC supports growth in capital-

intensive Protection sales and

diversification of the asset portfolio to

more higher-yielding alternative assets

BIR: Base Interest Rate

Full Year 2017 Earnings Results will be released in February

Until then …… we will be working hard to close 2017

and make a strong start for 2018!