Post on 29-Jun-2020
MeritzMeritzMeritzMeritzMeritzMeritzMeritzMeritz Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance
1HFY08 Overview1HFY08 Overview1HFY08 Overview1HFY08 Overview1HFY08 Overview1HFY08 Overview1HFY08 Overview1HFY08 Overview
Nov. 2008Nov. 2008Nov. 2008Nov. 2008Nov. 2008Nov. 2008Nov. 2008Nov. 2008
1111
This material has been prepared based on internally audited
figures and final figures may change due to the results of
an independent audit without notice.
This presentation includes forward-looking statements
regarding the company’s outlook for FY08 and beyond,
including projected premium and net income. These
forecasts are subject to unknown risks and uncertainties
that may cause actual figures to differ from those stated or
implied by such statements. We have no obligation or
responsibility regarding investment made based on such
forward-looking statements.
DisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimer
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1111
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※※※※
ContentsContentsContentsContentsContentsContentsContentsContents
11111111HFY08 Financial HighlightsHFY08 Financial HighlightsHFY08 Financial HighlightsHFY08 Financial HighlightsHFY08 Financial HighlightsHFY08 Financial HighlightsHFY08 Financial HighlightsHFY08 Financial Highlights
2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook
Appendix (1Appendix (1Appendix (1Appendix (1Appendix (1Appendix (1Appendix (1Appendix (1HHHHHHHHFY08 Financials)FY08 Financials)FY08 Financials)FY08 Financials)FY08 Financials)FY08 Financials)FY08 Financials)FY08 Financials)
3333
P&LP&LP&LP&LP&LP&LP&LP&L
10.4%
3,816
33
21
-12
126
-87
1,695
1,392
FY04FY04FY04FY04
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
0.9%p
-
18.2%
25.0%
-
19.0%
-
10.7%
15.3%
1.7%p
22.7%
22.7%
35.6%
-
6.5%
-
16.2%
18.2%
4.9%p
23.5%
78.3%
98.7%
-
12.5%
-
16.2%
19.6%
18.6%
684
85
71
-1
179
-77
2,534
2,267
FY07FY07FY07FY07
13.7%
554
48
36
1
159
-116
2,180
1,896
FY06FY06FY06FY06
11.3%
451
39
26
-3
150
-114
1,877
1,604
FY05FY05FY05FY05
----6.4%6.4%6.4%6.4%pppp19.4%19.4%19.4%19.4%Adjusted ROE Note)
----21.5%21.5%21.5%21.5%802802802802Adjusted EPS Note)
----21.5%21.5%21.5%21.5%50505050Adjusted net income
----25.6%25.6%25.6%25.6%42424242Net income
--------0.40.40.40.4Non-operating profit
----34.0%34.0%34.0%34.0%71717171Investment profit
--------12121212Operating profit
16.2%16.2%16.2%16.2%1,4031,4031,4031,403Gross premium written
16.4%16.4%16.4%16.4%1,2641,2641,2641,264Earned premium
G/RG/RG/RG/R
1111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
Note) Annualized figure, 10:1 stock split in February 2006
4444
SalesSalesSalesSalesSalesSalesSalesSales
※ New contract : excluding lump-sum payment
----8.2%8.2%8.2%8.2%0.1%p8.2%0.1%p8.1%0.1%p8.0%7.9%Market Share
1,695
269
660
36
766
FY04FY04FY04FY04
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
10.7%
1.9%
-5.8%
16.3%
28.1%
16.2%
0.1%
8.0%
25.7%
25.8%
16.2%
8.0%
2.1%
18.7%
25.7%
2,534
296
686
63
1,553
FY07FY07FY07FY07
2,180
274
672
53
1,235
FY06FY06FY06FY06
1,877
274
622
42
981
FY05FY05FY05FY05
16.2%16.2%16.2%16.2%1,4031,4031,4031,403Total
6.6%6.6%6.6%6.6%149149149149Commercial
7.3%7.3%7.3%7.3%358358358358Auto
11.9%11.9%11.9%11.9%35353535New contract
22.1%22.1%22.1%22.1%895895895895Long-term
G/RG/RG/RG/R
1111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
[[[[LongLongLongLong----term average premium per month]term average premium per month]term average premium per month]term average premium per month]
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
1.1%1.1%1.1%1.1%
1.8%1.8%1.8%1.8%
11.9%11.9%11.9%11.9%
16.1%
22.5%
18.7%
27.6%
30.4%
25.7%
34.0%
29.7%
16.3%
4.14.14.14.14.03.42.72.0Protection type
monthly payment
4.64.64.64.64.63.82.92.2protection type
FY05FY05FY05FY05 1111HFY08HFY08HFY08HFY08FY06FY06FY06FY06
4.43.5 5.85.85.85.85.23.0New contract
FY07FY07FY07FY07FY04FY04FY04FY04((((KRW KRW KRW KRW bnbnbnbn))))
※ Excluding lump-sum payment
5555
17.6%18.6%20.2%19.4%
11.6%12.7%14.3%17.4%9.4%9.8%
10.8%12.4%16.3%15.8%
17.1%21.5%
23.2%21.4%16.9%9.3%
21.7%20.5%20.0% 21.6%
FY08 1HFY07FY06FY05
Savings
Bundle
Disease
Property
Drivers
Accident
43.8%36.8%
25.8%17.6%
16.1%17.9%
20.5%22.5%
9.3%10.5%
13.2%16.1%
9.8%12.6%
16.2%18.0%
2.8%2.1%
14.6%19.3%21.3%23.8%2.7%
2.9%
FY08 1HFY07FY06FY05
Savings
Bundle
Disease
Property
Drivers
Accident
Sales PortfolioSales PortfolioSales PortfolioSales PortfolioSales PortfolioSales PortfolioSales PortfolioSales Portfolio
[[[[MeritzMeritzMeritzMeritz Sales Portfolio]Sales Portfolio]Sales Portfolio]Sales Portfolio]
[[[[Sales Portfolio Comparison Sales Portfolio Comparison Sales Portfolio Comparison Sales Portfolio Comparison ---- 1HFY08]1HFY08]1HFY08]1HFY08]
[[[[MeritzMeritzMeritzMeritz LT Portfolio]LT Portfolio]LT Portfolio]LT Portfolio]
[[[[LT Portfolio ComparisonLT Portfolio ComparisonLT Portfolio ComparisonLT Portfolio Comparison----Top 4]Top 4]Top 4]Top 4]
85.4%
78.3%
52.3% 56.6% 61.3% 63.8%
33.1%30.8% 27.1% 25.5%
12.6% 11.7% 10.6%14.6%
FY05 FY06 FY07 FY08 1H
Commercial
Auto
LT
57.6%
30.3% 31.4%
11.0%
58.0%
11.7%
Top 4 Industry
6666
Loss RatioLoss RatioLoss RatioLoss Ratio
[[[[LongLongLongLong----term Loss Ratio]term Loss Ratio]term Loss Ratio]term Loss Ratio]
[[[[Auto Loss Ratio]Auto Loss Ratio]Auto Loss Ratio]Auto Loss Ratio] [[[[Commercial Loss Ratio]Commercial Loss Ratio]Commercial Loss Ratio]Commercial Loss Ratio]
[[[[LongLongLongLong----term Risk Premium Loss Ratio]term Risk Premium Loss Ratio]term Risk Premium Loss Ratio]term Risk Premium Loss Ratio]
92.2%
86.6%
83.9%83.1%
89.4%
84.9%
82.6% 80.5%
88.8%
90.3%
FY04 FY05 FY06 FY07 FY08 1H
Meritz
Top 4
81.0% 81.5%
83.4%
78.3%79.2%
77.1%78.2%
82.2%
78.5%77.0%
FY04 FY05 FY06 FY07 FY08 1H
Meritz
Top 4
76.2%
72.8%
76.6%
75.1%
78.5%74.2%
68.1%
78.7%
66.9%
72.6%
FY04 FY05 FY06 FY07 FY08 1H
Meritz
Top 4
43.5%
48.5%
53.0%
59.8%
53.0%
49.1%
46.9%
54.2% 54.5%
51.0%
FY04 FY05 FY06 FY07 FY08 1H
Meritz
Top 4
7777
23.1%24.4% 24.3% 23.9% 24.6%
13.1% 13.1% 13.7%
7.2% 7.1% 7.0% 6.5% 6.3%
12.6%
6.9% 6.6% 6.6%
-3.9% -3.3% -2.6% -2.3% -2.0%
7.9%
10.1%
9.7%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
28.0%
FY04 FY05 FY06 FY07 FY08 1H
ExpenseRatio
Salesrelatedexpenses
Wages
BusinessAdministration
Expensesrecovered
Expense / Combined RatioExpense / Combined RatioExpense / Combined RatioExpense / Combined Ratio
※ Other expenses are included in business administrations, FY08 monthly allocated cost is KRW 3.3bn
[[[[Expense Ratio]Expense Ratio]Expense Ratio]Expense Ratio]
[[[[Combined Ratio]Combined Ratio]Combined Ratio]Combined Ratio]
105.3%106.3%
105.4%
102.8%
100.4%
100.0%
104.0%
108.0%
FY04 FY05 FY06 FY07 FY08 1H
Combinedratio
8888
12.5%
13.8%
9.4%8.8%9.2%
FY04 FY05 FY06 FY07 FY08 1H
Distribution ChannelDistribution ChannelDistribution ChannelDistribution Channel
[[[[Number of Channels]Number of Channels]Number of Channels]Number of Channels]
(KRW bn, %)
[[[[Certificate/License Exam Share]Certificate/License Exam Share]Certificate/License Exam Share]Certificate/License Exam Share]
63
18
15
11
19
FY07FY07FY07FY07
18.7
0.4
28.9
39.3
21.3
G/RG/RG/RG/R
-
28.4
23.9
17.6
30.1
mIxmIxmIxmIx
----
22.722.722.722.7
27.327.327.327.3
19.819.819.819.8
30.230.230.230.2
mIxmIxmIxmIx
16.116.116.116.1
----11.511.511.511.5
26.826.826.826.8
24.824.824.824.8
11.511.511.511.5
G/RG/RG/RG/R
35353535
8888
10101010
7777
11111111
1111HFY08HFY08HFY08HFY08
14.951.7812.478.153TC
29.549.41624.838.4108FC
mIxmIxmIxmIxG/RG/RG/RG/RmIxmIxmIxmIxG/RG/RG/RG/R
-
33.5
22.1
25.7
-6.9
58.0
-
45.3
17.6
16.3
-14.3
111.0
534236Total
181922Others
1274GA
FY06FY06FY06FY06FY05FY05FY05FY05FY04FY04FY04FY04
2,623 5,177 4,0524,298 3,892
people
[[[[LT New Contract Sales per Channel]LT New Contract Sales per Channel]LT New Contract Sales per Channel]LT New Contract Sales per Channel]
2,470
3,337
1,489
137 198 165
2,057
1,569
FC, 3,9003,525
1,484
899
TC, 2,980
2,469
1,884
Solicitor, 1,6201,709
2,367
2,624
Agency, 1,9051,728
1,831
2,234
2,538
GA, 336331
1,993
Internal
Employee,
1,928
2,100
2,080
FY04 FY05 FY06 FY07 FY08 1H
Note) 1HFY08 cross-selling solicitors (3,632 people) excluded
※ Excluding Lump-sum payment
9999
2,260
2,555
3,000
3,624 3,684
FY04 FY05 FY06 FY07 FY08 1H
[[[[Asset Portfolio]Asset Portfolio]Asset Portfolio]Asset Portfolio]
Investment PortfolioInvestment PortfolioInvestment PortfolioInvestment Portfolio
5.1%5.1%5.1%5.1%
----34.0%34.0%34.0%34.0%
71717171
3.9%3.9%3.9%3.9%
1111HFY08HFY08HFY08HFY08
5.9%
5.1%
126
6.0%
FY04FY04FY04FY04
5.4%
6.5%
159
5.9%
FY06FY06FY06FY06
5.3%
19.0%
150
6.4%
FY05FY05FY05FY05
G/R
5.4%Top 4’s average
12.5%
179
5.6%
FY07FY07FY07FY07
Investment Profit
Investment yield
((((KRW KRW KRW KRW bnbnbnbn))))
17.5%
13.0%
20.8%
Asset G/R
Asset (KRW bn)
[[[[Investment Asset]Investment Asset]Investment Asset]Investment Asset]
11.5%
7.6%
Note)1HFY08 : CDO write-down 4.8 bn, Trading equity-type fund 22 bn, available-for-sale equity-type fund 195bn
10.5% 11.4% 9.4% 5.5% 6.0%
4.1% 4.6%6.3%
43.2% 38.0%35.5% 41.7% 40.2%
10.5%8.6%
9.4%
14.3% 12.3%
3.5%5.8% 12.1%
7.6% 6.9%2.0%
1.5% 0.7%1.7%
13.1%15.7% 16.3%
11.8% 11.4%
13.2% 14.5% 12.5% 11.1% 11.3%
8.2%4.1%
3.7%
FY04 FY05 FY06 FY07 FY08 1H
Real estate
Loan
Others
Overseas
InvestmentFunds
Bond
Stock
Cash
10101010
Loan QualityLoan QualityLoan QualityLoan Quality
496
56
167
10
233
184
77
2
264
FY06FY06FY06FY06
6161616172PFPFPFPF
SecuredSecuredSecuredSecured
CreditCreditCreditCredit
PolicyholderPolicyholderPolicyholderPolicyholder
SecuredSecuredSecuredSecured
CreditCreditCreditCredit
435
63
1
137
220
77
2
299
FY07FY07FY07FY07
TotalTotalTotalTotal
Corporate loanCorporate loanCorporate loanCorporate loan
44444444
324324324324Retail loanRetail loanRetail loanRetail loan
238238238238
((((KRW KRW KRW KRW bnbnbnbn))))
106106106106
430430430430
1111
84848484
2222
1111HFY08HFY08HFY08HFY08
0.6%
4.0%
2.4%
59.2%
7
2.44
496
0
1
11
10
474
FY06FY06FY06FY06
SubstandardSubstandardSubstandardSubstandard
CorporateCorporateCorporateCorporate
RetailRetailRetailRetail
59.8%59.8%59.8%59.8%48.3%Coverage ratioCoverage ratioCoverage ratioCoverage ratio
(Provisions(Provisions(Provisions(Provisions/Substandard & below)/Substandard & below)/Substandard & below)/Substandard & below)
15.4%15.4%15.4%15.4%3.2%
4.1%4.1%4.1%4.1%4.8%
430430430430435TotalTotalTotalTotal
6.9%6.9%6.9%6.9%4.3%Delinquency ratioDelinquency ratioDelinquency ratioDelinquency ratio
11111DoubtfulDoubtfulDoubtfulDoubtful
ProvisionsProvisionsProvisionsProvisions
Estimated lossEstimated lossEstimated lossEstimated loss
PrecautionaryPrecautionaryPrecautionaryPrecautionary
9
4.13
1
16
2
415
FY07FY07FY07FY07
NPL ratioNPL ratioNPL ratioNPL ratio
400400400400NormalNormalNormalNormal
1111
((((KRW KRW KRW KRW bnbnbnbn))))
3.423.423.423.42
9999
12121212
16161616
1111HFY08HFY08HFY08HFY08
Note) Delinquency ratio: Delinquent principal more than 30 days, excluding policyholder loan
1HFY08 retail: Bucheon shopping center (store owner mortgage loan) 12.1bn
corporate: Hyundae R&C Construction PF loan 12bn
Note) Retail credit loan: Employee loan
Corporate credit loan: Seoul Guarantee Insurance, Meritz’ agencies
11111111
Construction Industry ExposureConstruction Industry ExposureConstruction Industry ExposureConstruction Industry Exposure
49.6
10
55.3
61.3
2.9
1111HFY08HFY08HFY08HFY08
179.1179.1179.1179.1 TotalTotalTotalTotal
2009-08-1210 GS Contruction
2009-07-0710 GS Construction
2008-11-289 Kye Ryong Construction
2009-04-1710.6 Doosan Heavy Industries
2008-12-1210Hyundai Engineering
PF
ABCP
Other
securities
Redeemed at Dec 102009-04-1010 Korea DevelopmentPF ABSCorporate
bond
2009-04-2820.5 Posco Engineering
2011-01-316.2 Hyundai Development
2010-05-105Kukdong Engineering
2010-01-256.6 LOTTE Engineering
2009-05-0710Shin Myung Construction
0.68 at the end of Oct2009-08-081.4 C&Woobang Construction
2009-03-085.6 Hyedong Construction
Real
estate
fund
Investment
Fund
Normal2010-05-195.5Korea Development
Normal2010-03-2510Kumho Industrial
Normal2012-04-0910Dongah Construction
Normal2011-04-0510Ssangyong Engineering
Normal2010-10-193.8Sungwon Corporation
NormalFeb 27, 201110Shindongah, NamKwang, Chonggu
Overdue, allowance 0.2Feb 08, 200912Hyundai RNC
PF loan
Overdue, allowance 0.6Dec 29, 20072.8Kyungbang
NormalMay 17, 20090.1New PrinceMortgage
Loan
RemarksRemarksRemarksRemarksMaturityMaturityMaturityMaturityCompaniesCompaniesCompaniesCompaniesCategoryCategoryCategoryCategory
(KRW bn)
12121212
LT Funding CostLT Funding CostLT Funding CostLT Funding Cost
0.3%p
0.1%p
-0.19%p
2.5%p
-2.5%p
-0.05%p
-0.34%p
-0.19%p
G/RG/RG/RG/R
1.1%p
6.0%
4.92%
70.7%
29.3%
4.18%
6.53%
4.92%
FY06FY06FY06FY06
Floating
Fixed
----1.7%1.7%1.7%1.7%pppp----0.4%0.4%0.4%0.4%pppp-0.3%p0.8%pSpread
----1.5%1.5%1.5%1.5%pppp4.6%4.6%4.6%4.6%-0.4%p5.6%Investment yield
0.21%0.21%0.21%0.21%pppp5.04%5.04%5.04%5.04%-0.11%p4.81%Average rate
4.7%4.7%4.7%4.7%pppp78.7%78.7%78.7%78.7%5.9%p76.6%
----4.7%4.7%4.7%4.7%pppp21.3%21.3%21.3%21.3%-5.9%p23.4%
Savings premium reserve portion
0.54%0.54%0.54%0.54%pppp4.84%4.84%4.84%4.84%0.27%p4.45%Floating
----0.42%0.42%0.42%0.42%pppp5.77%5.77%5.77%5.77%-0.58%p5.95%Fixed
0.21%0.21%0.21%0.21%pppp5.04%5.04%5.04%5.04%-0.11%p4.81%Funding cost
G/RG/RG/RG/RG/RG/RG/RG/R
1111HFY08HFY08HFY08HFY08FY07FY07FY07FY07
13131313
2222
1111
※※※※
ContentsContentsContentsContents
1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights
2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook
Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)
14141414
FY08 GuidelinesFY08 GuidelinesFY08 GuidelinesFY08 Guidelines
3,6243,6844,06212.1%12.1%12.1%12.1%4,0624,0624,0624,062Investment Assets
4,755
19.4%
50
7
42
71
3.9%
-12
24.6%
80.5%
68.1%
53.0%
75.8%
895
358
149
1,403
1111HHHHG/RG/RG/RG/R
14.5%14.5%14.5%14.5%
----0.1%0.1%0.1%0.1%pppp
17.6%17.6%17.6%17.6%
14.0%14.0%14.0%14.0%
18.1%18.1%18.1%18.1%
----17.4%17.4%17.4%17.4%
----1.7%1.7%1.7%1.7%pppp
n.a.n.a.n.a.n.a.
0.9%0.9%0.9%0.9%pppp
----2.9%2.9%2.9%2.9%pppp
----4.9%4.9%4.9%4.9%pppp
----5.4%5.4%5.4%5.4%pppp
----3.2%3.2%3.2%3.2%pppp
20.1%20.1%20.1%20.1%
9.5%9.5%9.5%9.5%
7.5%7.5%7.5%7.5%
15.8%15.8%15.8%15.8%
4,5655,2255,2255,2255,2255,225Total Assets
18.6%20.1%18.5%18.5%18.5%18.5%Adjusted ROE
8550100100100100Adjusted Income
14816161616Inc. in Catastrophe reserves
714284848484Net Income
179
5.6%
77
4.0%
148148148148
3.9%3.9%3.9%3.9%
Investment Income
Investment Yield
Long-Term
Auto
Commercial
-77-16----28282828Underwriting Income
23.9%25.0%24.8%24.8%24.8%24.8%Expense Ratio
82.6%79.0%79.7%79.7%79.7%79.7%
74.2%70.5%69.3%69.3%69.3%69.3%
59.8%55.8%54.4%54.4%54.4%54.4%
78.9%75.6%75.7%75.7%75.7%75.7%Loss Ratio
1,5539701,8651,8651,8651,865Long-Term
686392750750750750Auto
296169318318318318Commercial
2,534 1,5312,9342,9342,9342,934Gross Premiums
FY07FY07FY07FY072222H(e)H(e)H(e)H(e)FY08(e)FY08(e)FY08(e)FY08(e)((((KRW KRW KRW KRW bnbnbnbn))))
Note) Adjusted ROE: Annualized figure
15151515
※※※※
1111
2222
ContentsContentsContentsContents
1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights1HFY08 Financial Highlights
2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook2HFY08 Outlook
Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)Appendix (1HFY08 Financials)
16161616
Appendix : 1HFY08 Sales Appendix : 1HFY08 Sales Appendix : 1HFY08 Sales Appendix : 1HFY08 Sales
16.2%2,18016.2%2,53416.2%16.2%16.2%16.2%100.0%100.0%100.0%100.0%1,4031,4031,4031,403Total
-47.1%11-30.4%8----10.7%10.7%10.7%10.7%0.2%0.2%0.2%0.2%3333Lump-sum payment
27.5%1,17126.6%1,48322.7%22.7%22.7%22.7%61.1%61.1%61.1%61.1%857857857857Recurring
25.7%5318.7%6311.9%11.9%11.9%11.9%2.5%2.5%2.5%2.5%35353535New
27.4%1,22426.2%1,54522.3%22.3%22.3%22.3%63.6%63.6%63.6%63.6%892892892892Long-term
8.0%6722.1%6867.3%7.3%7.3%7.3%25.5%25.5%25.5%25.5%358358358358Auto
0.1%2748.0%2966.6%6.6%6.6%6.6%10.6%10.6%10.6%10.6%149149149149Commercial
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/Rmixmixmixmix
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
0.1%p8.9%0.9%p9.8%----0.3%0.3%0.3%0.3%pppp9.8%9.8%9.8%9.8%New
0.1%p8.1%0.1%p8.2%0.3%0.3%0.3%0.3%pppp8.4%8.4%8.4%8.4%Total
-11.8%p7.1%-1.3%p5.8%0.7%0.7%0.7%0.7%pppp6.1%6.1%6.1%6.1%Lump-sum payment
0.5%p8.6%0.4%p9.0%0.4%0.4%0.4%0.4%pppp9.3%9.3%9.3%9.3%Recurring
0.7%p8.6%0.4%p9.0%0.4%0.4%0.4%0.4%pppp9.3%9.3%9.3%9.3%Long-term
-7.3%-0.7%p6.6%0.2%0.2%0.2%0.2%pppp6.8%6.8%6.8%6.8%Auto
-0.8%p8.5%0.2%p8.7%----0.3%0.3%0.3%0.3%pppp8.0%8.0%8.0%8.0%Commercial
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08 HFY08 HFY08 HFY08 M / SM / SM / SM / S
17171717
Appendix : 1HFY08 Loss RatioAppendix : 1HFY08 Loss RatioAppendix : 1HFY08 Loss RatioAppendix : 1HFY08 Loss Ratio
-0.8%p81.1%-2.2%p78.9%----2.9%2.9%2.9%2.9%pppp75.8%75.8%75.8%75.8%Loss Ratio
18.2%1,89619.6%2,26716.4%16.4%16.4%16.4%1,2641,2641,2641,264Earned Premiums
17.1%1,53816.3%1,78812.0%12.0%12.0%12.0%958958958958Losses
Total
-7.9%p69.8%3.0%p72.8%3.9%3.9%3.9%3.9%pppp74.8%74.8%74.8%74.8%LT Risk L/R (excluding IBNR)
-4.9%p78.2%-1.1%p77.1%4.9%4.9%4.9%4.9%pppp79.2%79.2%79.2%79.2%LT Risk L/R (including IBNR)
-4.5%p84.9%-2.3%p82.6%----1.1%1.1%1.1%1.1%pppp80.5%80.5%80.5%80.5%Loss Ratio
26.4%1,19325.8%1,50122.4%22.4%22.4%22.4%867867867867Earned Premiums
20.1%1,01322.2%1,23820.8%20.8%20.8%20.8%698698698698Losses
Long-term
3.4%p78.5%-4.3%p74.2%----7.4%7.4%7.4%7.4%pppp68.1%68.1%68.1%68.1%Loss Ratio
6.7%5977.5%6412.2%2.2%2.2%2.2%329329329329Earned Premiums
11.5%4681.6%476----7.8%7.8%7.8%7.8%224224224224Losses
Auto
3.9%p53.0%6.8%p59.8%----8.5%8.5%8.5%8.5%pppp53.0%53.0%53.0%53.0%Loss Ratio
4.8%10617.4%12521.4%21.4%21.4%21.4%68686868Earned Premiums
13.3%5632.5%754.6%4.6%4.6%4.6%36363636Losses
Commercial
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
18181818
Appendix : 1HFY08 Expense RatioAppendix : 1HFY08 Expense RatioAppendix : 1HFY08 Expense RatioAppendix : 1HFY08 Expense Ratio
-0.9%p105.4%-2.6%p102.8%----1.2%1.2%1.2%1.2%pppp100.4%100.4%100.4%100.4%Combined Ratio
-0.1%p24.3%-0.4%p23.9%1.8%1.8%1.8%1.8%pppp24.6%24.6%24.6%24.6%Expense Ratio
22.0%1,94317.9%2,29117.5%17.5%17.5%17.5%1,2741,2741,2741,274Net Premiums Written
18.2%1,89619.6%2,26716.4%16.4%16.4%16.4%1,2641,2641,2641,264Gross Premiums Earned
18.0%46117.5%54225.1%25.1%25.1%25.1%311311311311Net Expenses
-6.1%495.0%5221.7%21.7%21.7%21.7%25252525Expenses Recovered
22.8%1921.8%2418.9%18.9%18.9%18.9%12121212Other Expenses
20.9%24719.9%29726.1%26.1%26.1%26.1%173173173173Sales-related
3.1%11212.5%12623.9%23.9%23.9%23.9%71717171Administrative
15.2%13212.0%14823.9%23.9%23.9%23.9%79797979Wages & Benefits
15.2%51016.3%59424.8%24.8%24.8%24.8%336336336336Expenses
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
*Sales related expenses : acquisition cost/collection fees, commissions paid to agencies, acquisition cost, amortization, deferred acquisition cost, etc.
*Other expenses: loss adjustment expenses, co-insurance paid, reinsurance commission paid, etc.
*Expenses recovered: claim service fee recovered, R/I commission received, etc.
19191919
Appendix : 1HFY08 LT Product PortfolioAppendix : 1HFY08 LT Product PortfolioAppendix : 1HFY08 LT Product PortfolioAppendix : 1HFY08 LT Product Portfolio
100.0%1,235100.0%1,553100.0%100.0%100.0%100.0%895895895895Total
16.8%20815.4%23914.6%14.6%14.6%14.6%131131131131Savings
0.0%0.40.0%0.40.0%0.0%0.0%0.0%0000Corporate Pension
4.5%563.9%613.7%3.7%3.7%3.7%33333333Personal Annuities
2.9%352.8%442.7%2.7%2.7%2.7%24242424Bundle
16.2%20012.6%1969.8%9.8%9.8%9.8%88888888Disease
13.2%16310.5%1639.3%9.3%9.3%9.3%83838383Property
20.5%25317.9%27816.1%16.1%16.1%16.1%144144144144Drivers
25.8%31936.8%57143.8%43.8%43.8%43.8%393393393393Accident
78.6%97180.7%1,25381.7%81.7%81.7%81.7%731731731731Protection-type
mixmixmixmixFY06FY06FY06FY06mixmixmixmixFY07FY07FY07FY07mixmixmixmix1111HFY08 HFY08 HFY08 HFY08 ((((KRW KRW KRW KRW bnbnbnbn))))
63.3%63.2%63.1%63.1%63.1%63.1%25th month persistency
76.4%79.2%78.6%78.6%78.6%78.6%13th month persistency
65.6%81062.7%97360.7%60.7%60.7%60.7%543543543543Savings Premiums
34.4%42537.3%58039.3%39.3%39.3%39.3%352352352352Risk+Loading Premiums
*Including lump-sum payment
2020202020
Appendix : 1HFY08 LT Coverage PortfolioAppendix : 1HFY08 LT Coverage PortfolioAppendix : 1HFY08 LT Coverage PortfolioAppendix : 1HFY08 LT Coverage Portfolio
G/RG/RG/RG/R G/RG/RG/RG/R
CategoryCategoryCategoryCategory
1111HFY08HFY08HFY08HFY08 FY07FY07FY07FY07 FY06FY06FY06FY06
LossLossLossLoss
ratioratioratioratio
PremiumPremiumPremiumPremium
mixmixmixmix
LossLossLossLoss
ratioratioratioratio
PremiumPremiumPremiumPremium
mixmixmixmix
LossLossLossLoss
ratioratioratioratio
PremiumPremiumPremiumPremium
mixmixmixmix
Death Coverage 36.2%36.2%36.2%36.2% ----0.2%0.2%0.2%0.2%pppp 25.1%25.1%25.1%25.1% ----2.0%2.0%2.0%2.0%pppp 40.6% 26.5% 44.6% 28.2%
Life Benefits 100.8%100.8%100.8%100.8% 4.5%4.5%4.5%4.5%pppp 56.9%56.9%56.9%56.9% 3.2%3.2%3.2%3.2%pppp 97.2% 54.6% 94.4% 51.1%
Medical treatment 105.0%105.0%105.0%105.0% 7.7%7.7%7.7%7.7%pppp 31.0%31.0%31.0%31.0% 2.4%2.4%2.4%2.4%pppp 97.8% 29.2% 98.6% 26.6%
Daily allowance 91.1%91.1%91.1%91.1% 0.9%0.9%0.9%0.9%pppp 13.4%13.4%13.4%13.4% 0.7%0.7%0.7%0.7%pppp 91.2% 12.9% 93.9% 11.6%
Disease 102.6%102.6%102.6%102.6% 1.7%1.7%1.7%1.7%pppp 8.6%8.6%8.6%8.6% ----0.2%0.2%0.2%0.2%pppp 103.4% 8.7% 91.4% 9.8%
Others 96.7%96.7%96.7%96.7% ----1.6%1.6%1.6%1.6%pppp 4.0%4.0%4.0%4.0% 0.3%0.3%0.3%0.3%pppp 98.5% 3.8% 70.9% 3.1%
Property/Others 50.0%50.0%50.0%50.0% 0.2%0.2%0.2%0.2%pppp 17.9%17.9%17.9%17.9% ----1.1%1.1%1.1%1.1%pppp 52.1% 18.9% 47.5% 20.7%
Total 75.4%75.4%75.4%75.4% 4.3%4.3%4.3%4.3%pppp 100.0%100.0%100.0%100.0% ---- 73.7% 100.0% 70.7% 100.0%
* Loss Ratio: As of Gross Premiums Written, excluding IBNR
* Death coverage: death/disablement (total disablement, disease death) / Medical treatment: accident treatment, disease treatment
Daily allowance: accident daily allowance, disease daily allowance / Disease: cancer, other diseases, CI
Other: other accident (fracture/burn, etc), other disease (food poisoning, etc)
Property/Other: Driver expenses, liabilities, property loss, fire
21212121
Appendix : 1HFY08 Asset PortfolioAppendix : 1HFY08 Asset PortfolioAppendix : 1HFY08 Asset PortfolioAppendix : 1HFY08 Asset Portfolio
G/RG/RG/RG/R G/RG/RG/RG/R
-5.9%-5.6%--------2.9%2.9%2.9%2.9%pppp3.9%3.9%3.9%3.9%Investment Yield
100.0%3,000100.0%3,624----100.0%100.0%100.0%100.0%7.6%7.6%7.6%7.6%3,6843,6843,6843,684Investment Assets
12.5%37611.1%4020.2%0.2%0.2%0.2%pppp11.3%11.3%11.3%11.3%10.0%10.0%10.0%10.0%417417417417Real Estate
16.3%48911.8%427----1.3%1.3%1.3%1.3%pppp11.4%11.4%11.4%11.4%----3.6%3.6%3.6%3.6%422422422422Loans
0.7%211.7%610.9%0.9%0.9%0.9%pppp3.7%3.7%3.7%3.7%40.0%40.0%40.0%40.0%136136136136Others
12.1%3637.6%276----2.3%2.3%2.3%2.3%pppp6.9%6.9%6.9%6.9%----19.1%19.1%19.1%19.1%255255255255Overseas Securities
9.4%28114.3%518----2.0%2.0%2.0%2.0%pppp12.3%12.3%12.3%12.3%----7.7%7.7%7.7%7.7%452452452452Investment Funds
35.5%1,06541.7%1,5103.6%3.6%3.6%3.6%pppp40.2%40.2%40.2%40.2%18.3%18.3%18.3%18.3%1,4791,4791,4791,479Domestic Bonds
2.7%803.6%1321.0%1.0%1.0%1.0%pppp3.7%3.7%3.7%3.7%48.1%48.1%48.1%48.1%137137137137Equity-method stocks
1.4%422.7%962.4%2.4%2.4%2.4%pppp4.5%4.5%4.5%4.5%130.2%130.2%130.2%130.2%165165165165Available-for-sale
0.0%0.30.0%0.5----0.4%0.4%0.4%0.4%pppp0.0%0.0%0.0%0.0%----100.0%100.0%100.0%100.0%0000Trading
1.4%432.7%972.0%2.0%2.0%2.0%pppp4.5%4.5%4.5%4.5%91.4%91.4%91.4%91.4%165165165165Equities
9.4%2835.5%201----2.0%2.0%2.0%2.0%pppp6.0%6.0%6.0%6.0%----19.5%19.5%19.5%19.5%221221221221Cash & Equivalents
MixMixMixMixMixMixMixMixMixMixMixMix
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
22222222
Appendix : ALMAppendix : ALMAppendix : ALMAppendix : ALM
FY07FY07FY07FY07
92.8%86.5%83.6%83.6%83.6%83.6%Matching ratio
3.903.783.473.473.473.47Liabilities Duration
4.724.494.644.644.644.64Bond Duration
3.263.273.223.223.223.22Asset Duration
FY06FY06FY06FY061111HFY08HFY08HFY08HFY08
23232323
Appendix : 1HFY08 Profit & Loss Appendix : 1HFY08 Profit & Loss Appendix : 1HFY08 Profit & Loss Appendix : 1HFY08 Profit & Loss
35.6%3698.7%71----25.6%25.6%25.6%25.6%42424242Net Income
33.3%8254.5%30----26.2%26.2%26.2%26.2%17171717Incurred Tax Expenses
35.2%44128.3%101----25.7%25.7%25.7%25.7%59595959Ordinary Income
-1--1n.an.an.an.a....----0.40.40.40.4Non-operating Income
6.5%15912.5%179----34.0%34.0%34.0%34.0%71717171Investment Income
--116--77n.an.an.an.a....----12121212Underwriting Income
-4.9%1216.1%1414.6%14.6%14.6%14.6%7777Inc. in Catastrophe Reserves
-3.8%8-22.7%6n.an.an.an.a....2222Net inc. in Policyholders Dividend Reserves
32.6%466-5.3%44236.9%36.9%36.9%36.9%277277277277Inc. in Premium Reserves for LT Savings
18.0%46117.5%54225.1%25.1%25.1%25.1%311311311311Net Operating Expenses
1.4%38952.1%5912.3%2.3%2.3%2.3%293293293293Refund of LT Insurance Polices
18.1%67610.9%7505.3%5.3%5.3%5.3%386386386386Incurred Losses
22.0%1,94317.9%2,29117.5%17.5%17.5%17.5%1,2741,2741,2741,274Net Premiums Written
16.2%2,18016.2%2,53416.2%16.2%16.2%16.2%1,4031,4031,4031,403Gross Premiums Written
18.2%1,89619.6%2,26716.4%16.4%16.4%16.4%1,2641,2641,2641,264Net Premium Earned
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
24242424
Appendix : 1HFY08 Balance Sheet Appendix : 1HFY08 Balance Sheet Appendix : 1HFY08 Balance Sheet Appendix : 1HFY08 Balance Sheet
20.9%25112.6%28216.1%16.1%16.1%16.1%303303303303Solvency Guideline
6.7%42755.8%665----25.9%25.9%25.9%25.9%502502502502Solvency Amount
-22.7%p170.4%65.4%p235.8%----36.2%36.2%36.2%36.2%pppp166.0%166.0%166.0%166.0%Solvency Margin Ratio
--6--79--------247247247247Capital Adjustment
17.4%18924.8%23613.1%13.1%13.1%13.1%264264264264Retained Earnings
2.8%29718.1%237----0.4%0.4%0.4%0.4%236236236236Capital Surplus
0.0%4344.3%620.0%0.0%0.0%0.0%62626262Capital Stock
12.8%26075.4%456----38.4%38.4%38.4%38.4%316316316316Total Shareholders’ Equity
13.5%35430.5%46123.4%23.4%23.4%23.4%489489489489Other Liabilities
9.8%13310.2%14610.5%10.5%10.5%10.5%153153153153Catastrophe Reserves
22.6%3,00216.6%3,50117.8%17.8%17.8%17.8%3,7973,7973,7973,797Policy Reserves
21.1%3,48817.8%4,10818.1%18.1%18.1%18.1%4,4404,4404,4404,440Total Liabilities
34.6%74725.8%94126.4%26.4%26.4%26.4%1,0711,0711,0711,071Non-invested Assets
17.5%3,00020.8%3,6247.6%7.6%7.6%7.6%3,6843,6843,6843,684Investment Assets
20.5%3,74821.8%4,56511.4%11.4%11.4%11.4%4,7554,7554,7554,755Total Assets
G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R
FY06FY06FY06FY06FY07FY07FY07FY071111HFY08HFY08HFY08HFY08((((KRW KRW KRW KRW bnbnbnbn))))
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822-3786-1150, jhkim@meritzfire.com
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822-3786-1155, pillon@meritzfire.com
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822-3786-1156, jiyonpark@meritzfire.com
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