Meritz Insurance 1HFY08 Overview - ir.meritzfire.comir.meritzfire.com › ir › upload › FY08_1H_final_eng.pdf · [[[[MeritzMeritzMeritz LT Portfolio] LT Portfolio] [[[[LT Portfolio

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

2222

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


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%


Meritz

Top 4

76.2%

72.8%

76.6%

75.1%

78.5%74.2%

68.1%

78.7%

66.9%

72.6%


Meritz

Top 4

43.5%

48.5%

53.0%

59.8%

53.0%

49.1%

46.9%

54.2% 54.5%

51.0%


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%


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%


Combinedratio

8888

12.5%

13.8%

9.4%8.8%9.2%


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


Note) 1HFY08 cross-selling solicitors (3,632 people) excluded

※ Excluding Lump-sum payment

9999

2,260

2,555

3,000

3,624 3,684


[[[[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%


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%


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


106106106106

430430430430

1111

84848484

2222


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


3.423.423.423.42

9999

12121212

16161616


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


　　　　　　　　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


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


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


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



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



*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



mixmixmixmix

LossLossLossLoss



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


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



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



Thank you!!Thank you!!Thank you!!Thank you!!

Investor Relations Contacts:

Jae-Hyoung Kim (General Manager)

822-3786-1150, [email protected]

Pil-Soo Kim (Manager)


Ji-Yon Park (Manager)


http://ir.meritzfire.com

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