meritzfire & marine 1q.fy2010 financial resultsir.meritzfire.com/ir/upload/fy2010...

MERITZMERITZMERITZMERITZMERITZMERITZMERITZMERITZ Fire & MarineFire & MarineFire & MarineFire & MarineFire & MarineFire & MarineFire & MarineFire & Marine

1Q.FY2010 Financial Results1Q.FY2010 Financial Results1Q.FY2010 Financial Results1Q.FY2010 Financial Results1Q.FY2010 Financial Results1Q.FY2010 Financial Results1Q.FY2010 Financial Results1Q.FY2010 Financial Results

Aug 2010Aug 2010Aug 2010Aug 2010Aug 2010Aug 2010Aug 2010Aug 2010

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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 FY2010 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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1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review

ContentsContentsContentsContents

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FY2010 GuidanceFY2010 GuidanceFY2010 GuidanceFY2010 GuidanceFY2010 GuidanceFY2010 GuidanceFY2010 GuidanceFY2010 Guidance3333

AppendixAppendixAppendixAppendixAppendixAppendixAppendixAppendix (1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)※※※※

FY2009 Embedded ValueFY2009 Embedded ValueFY2009 Embedded ValueFY2009 Embedded ValueFY2009 Embedded ValueFY2009 Embedded ValueFY2009 Embedded ValueFY2009 Embedded Value4444

About Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&M1111

Conversion to Meritz financial group Conversion to Meritz financial group Conversion to Meritz financial group Conversion to Meritz financial group Conversion to Meritz financial group Conversion to Meritz financial group Conversion to Meritz financial group Conversion to Meritz financial group holding companyholding companyholding companyholding companyholding companyholding companyholding companyholding company5555

3333HistoryHistoryHistoryHistory

Era of Growth

(1983~2004)

Second rebirth

(2005~ )

Rebirth

(1950~1982)

Era of foundation & exploration(1922~1949)

� 1996.05 Total assets exceed W1t

� 1983.12 Head office relocated to Yeoido

� 2010.04 Founding of ‘Meritz Securities’ (Merger of Meritz Securities and Meritz Investment Bank)

� 2010.03 Total assets exceeded W6t

� 2009.12 Founding of Ritz Partners (Sales Subsidiary)

� 2008.07 Founding of Meritz Asset Management

� 2008.04 Founding of Meritz Financial Information Service

� 2007.08 Share offering (W225.7b)

� 2006.11 Acquisition of Meritz Investment Bank as subsidiary

� 2006.02 Stock split 10:1 (W5,000 →W500)

� 2005.11 Acquisition of Meritz Securities as subsidiary

� 2005.10 Head office relocated to new building in Kangnam

� 2005.10 Rechristened Meritz Fire & Marine Insurance

� 2005.03 Disaffiliates from Hanjin Group

� 1976.12 Sales exceed W10b, a first among Korean insurers

� 1967.07 Hanjin Group acquires Oriental Fire & Marine Insurance

� 1956.07 IPO on KSE, becoming Korea’s first listed insurer

� 1950.05 Rechristened Oriental Fire & Marine Insurance

� 1922.10 Founding of Chosun Fire & Marine Insurance

(Korea’s first non-life insurance company)

4444

AffiliatesAffiliatesAffiliatesAffiliatesShareholders (June 30, 2010)Shareholders (June 30, 2010)Shareholders (June 30, 2010)Shareholders (June 30, 2010)

� Major shareholderMajor shareholderMajor shareholderMajor shareholder’’’’s stakes stakes stakes stake : 22.4%: 22.4%: 22.4%: 22.4%

� Jung-Ho Cho: 21.4% (26,500,725 shares), etc

� FreeFreeFreeFree----float : 56.0% float : 56.0% float : 56.0% float : 56.0%

� � Foreign investors :14.4%, domestic : 41.6%

� KB Asset Mgmt. 12.6%, NPS 7.90%

22.4%22.4%22.4%22.4%

4.7%4.7%4.7%4.7%

3.0%3.0%3.0%3.0%

13.9%13.9%13.9%13.9%

14.4%14.4%14.4%14.4%

41.6%41.6%41.6%41.6%

Shareholder StructureShareholder StructureShareholder StructureShareholder Structure

• ForeignersForeignersForeignersForeigners

• Major shareholdersMajor shareholdersMajor shareholdersMajor shareholders

• ESOPESOPESOPESOP

• Related Related Related Related companiescompaniescompaniescompanies

• DomesticDomesticDomesticDomestic

• TreasuryTreasuryTreasuryTreasury

Note) 2010/04/01 Merger of Meritz Securities and Meritz Investment Bank

MeritzMeritzMeritzMeritzF&MF&MF&MF&M

Meritz

Securities

Ritz

Partners

Meritz

Financial

Serivce

Meritz

Asset

Management

30.71% 100% 100% 100%

MBS

100%

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(Unit: KRW Won)(Unit: KRW Won)(Unit: KRW Won)(Unit: KRW Won) 07.03.31 08.03.31 09.03.31 2010.3.31 10.6.3010.6.3010.6.3010.6.30

AdjAdjAdjAdj EPSEPSEPSEPS 601 684 -800 1,244 1,4331,4331,4331,433

AdjAdjAdjAdj PERPERPERPER 12.65 13.17 - 5.90 5.435.435.435.43

AdjAdjAdjAdj BPSBPSBPSBPS 4,575 4,864 4,293 7,994 8,0228,0228,0228,022

AdjAdjAdjAdj PBRPBRPBRPBR 1.66 1.85 0.90 1.10 1.201.201.201.20

Share Price PerformanceShare Price PerformanceShare Price PerformanceShare Price Performance

Note) Yearly converted value

Relative price trend (Mar. 31, 09~ )Relative price trend (Mar. 31, 09~ )Relative price trend (Mar. 31, 09~ )Relative price trend (Mar. 31, 09~ )

100.0%100.0%100.0%100.0%

KOSPIKOSPIKOSPIKOSPI

100.3%100.3%100.3%100.3%

MeritzMeritzMeritzMeritz

106.0%106.0%106.0%106.0%

Top 4Top 4Top 4Top 4

110.2%110.2%110.2%110.2%

2010/3/312010/3/312010/3/312010/3/31 2010/4/302010/4/302010/4/302010/4/30 2010/5/302010/5/302010/5/302010/5/30 2010/6/292010/6/292010/6/292010/6/29

Meritz

KOSPI

Insurance Industry

Top 4

6666DividendsDividendsDividendsDividends

Dividend Net income Dividend ratio Payout ratio

FY04 W 1,000 W 21.1 4.9% 36.7%

FY05 W 100 W 26.4 2.4% 29.6%

FY06 W100 W 35.8 1.4% 22.2%

FY07

Interim W 100 (11.8 bn) W 56.9 1.1% 20.7%

Year-end W 125 (14.2 bn) W 71.1 1.4% 20.0%

Total W 225 (26.0 bn) W 71.1 2.5% 36.6%

FY08

Interim W 50 (5.3 bn) W 42.3 0.6% 12.6%

Year-end - W -58.8 - -

Total W 50 (5.3 bn) W -58.8 0.6% -

FY09FY09FY09FY09

Interim - W 71.5 - -

Year-end W 300 (32.0 bn) W 140.4 4.0% 22.8%

Total W 300 (32.0 bn) W 140.4 4.0% 22.8%

Samsung Hyundai Dongbu LIG

Payout ratio 24.9% 30.5% 19.8% 21.1%

Dividend yield 1.6% 3.7% 2.3% 2.7%

[Dividend History][Dividend History][Dividend History][Dividend History] � The first insurance company to pay an interim dividend (Sep 2007)

[FY09 Industry Dividend][FY09 Industry Dividend][FY09 Industry Dividend][FY09 Industry Dividend]

Note: Implemented 10:1 stock split in Feb 2006

7777Our ManagementOur ManagementOur ManagementOur Management

- CEO since June 2005

- Chief Operations Officer at PCA Life

- Chief Information Officer at Samsung Fire & Marine

- 26 yrs of experience at US P&C insurers (General Accident, Harleysville Insurance Group)

� Vice Chairman & CEO: Vice Chairman & CEO: Vice Chairman & CEO: Vice Chairman & CEO: MyungMyungMyungMyung SooSooSooSoo Michael Michael Michael Michael WohnWohnWohnWohn

� Chairman: Jung Ho Chairman: Jung Ho Chairman: Jung Ho Chairman: Jung Ho ChoChoChoCho

� CFO: Jin CFO: Jin CFO: Jin CFO: Jin KyuKyuKyuKyu SongSongSongSong

- Chairman of Meritz Insurance since 2003

- Chairman & CEO of Meritz Securities (2003)

- Vice Chairman & CEO of Hanjin Securities (1999)

- Swiss International Institute for Management Development (MBA)

- CFO of Meritz Insurance since May 2005, head of strategic planning division

- Current member of Korean Actuarial Association

- More than 20 years in the non-life insurance industry

- Actuary and risk management manager of Samsung Fire & Marine (2005)

8888

About Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&MAbout Meritz F&M


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AppendixAppendixAppendixAppendixAppendixAppendixAppendixAppendix (1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)※※※※



1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review1Q.FY2010 Review2222

9999SalesSalesSalesSales

FY2008FY2006 FY2007

1,876.9 1,876.9 1,876.9 1,876.9 bnbnbnbn

(8.0%)(8.0%)(8.0%)(8.0%)

2,180.2 2,180.2 2,180.2 2,180.2 bnbnbnbn

(8.0%)(8.0%)(8.0%)(8.0%)

2,534.02,534.02,534.02,534.0 bnbnbnbn

(8.1%)(8.1%)(8.1%)(8.1%)

Sales (M/S)

G/R (Meritz)

G/R (Top 4)

FY2009FY2005

916.9 916.9 916.9 916.9 bnbnbnbn

(8.2%)(8.2%)(8.2%)(8.2%)

2,896.4 2,896.4 2,896.4 2,896.4 bnbnbnbn

(8.3%)(8.3%)(8.3%)(8.3%)

17.6%17.6%17.6%17.6%

10.7%10.7%10.7%10.7%

16.2%16.2%16.2%16.2% 16.2%16.2%16.2%16.2%

14.3%14.3%14.3%14.3%

19.9%19.9%19.9%19.9%

10.4%10.4%10.4%10.4%

15.1%15.1%15.1%15.1%

13.0%13.0%13.0%13.0%

8.2%8.2%8.2%8.2%

1Q.FY20101Q.FY20101Q.FY20101Q.FY20101Q.FY20101Q.FY20101Q.FY20101Q.FY2010

3,288.0 3,288.0 3,288.0 3,288.0 bnbnbnbn

(8.2%)(8.2%)(8.2%)(8.2%)

13.5%13.5%13.5%13.5%

15.3%15.3%15.3%15.3%

Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%Maintain sustainable and stabilized growth above 10%

Top 4 avg

New Premium

Gross Premium MixGross Premium MixGross Premium MixGross Premium Mix

55.4%55.4%55.4%55.4% 57.0%57.0%57.0%57.0% 58.8%58.8%58.8%58.8% 62.9%62.9%62.9%62.9% 63.6%63.6%63.6%63.6%

33.8%33.8%33.8%33.8% 32.4%32.4%32.4%32.4% 31.7%31.7%31.7%31.7% 29.3%29.3%29.3%29.3%26.7%26.7%26.7%26.7% 24.5%24.5%24.5%24.5%

11.9%11.9%11.9%11.9%

53.4%53.4%53.4%53.4%

11.9%11.9%11.9%11.9%12.8%12.8%12.8%12.8% 12.2%12.2%12.2%12.2% 11.3%11.3%11.3%11.3%

F Y 2 0 0 5F Y 2 0 0 5F Y 2 0 0 5F Y 2 0 0 5 F Y 2 0 0 6F Y 2 0 0 6F Y 2 0 0 6F Y 2 0 0 6 F Y 2 0 0 7F Y 2 0 0 7F Y 2 0 0 7F Y 2 0 0 7 F Y 2 0 0 8F Y 2 0 0 8F Y 2 0 0 8F Y 2 0 0 8 F Y 2 0 0 9F Y 2 0 0 9F Y 2 0 0 9F Y 2 0 0 9 1 Q F Y 1 01 Q F Y 1 01 Q F Y 1 01 Q F Y 1 0

49.6%49.6%49.6%49.6%56.6%56.6%56.6%56.6% 61.3%61.3%61.3%61.3% 63.9%63.9%63.9%63.9% 69.2%69.2%69.2%69.2%

34.0%34.0%34.0%34.0%30.8%30.8%30.8%30.8% 27.0%27.0%27.0%27.0% 25.1%25.1%25.1%25.1%

21.0%21.0%21.0%21.0%

73.5%73.5%73.5%73.5%

18.0%18.0%18.0%18.0%

8.5%8.5%8.5%8.5%9.8%9.8%9.8%9.8%11.0%11.0%11.0%11.0%11.7%11.7%11.7%11.7%16.4%16.4%16.4%16.4% 12.6%12.6%12.6%12.6%

F Y 2 0 0 5F Y 2 0 0 5F Y 2 0 0 5F Y 2 0 0 5 F Y 2 0 0 6F Y 2 0 0 6F Y 2 0 0 6F Y 2 0 0 6 F Y 2 0 0 7F Y 2 0 0 7F Y 2 0 0 7F Y 2 0 0 7 F Y 2 0 0 8F Y 2 0 0 8F Y 2 0 0 8F Y 2 0 0 8 F Y 2 0 0 9F Y 2 0 0 9F Y 2 0 0 9F Y 2 0 0 9 1 Q . F Y 1 01 Q . F Y 1 01 Q . F Y 1 01 Q . F Y 1 0

FY2005 FY2008FY2007FY2006

11.3%11.3%11.3%11.3%

59.2%

80.7%

83.6% 85.8% 83.3%76.7%

47.5%

78.1%

72.0%70.2% 70.4%

60.0%

LT Protection LT Protection LT Protection LT Protection

New Premium MixNew Premium MixNew Premium MixNew Premium Mix

FY2009

Note1) LT Protection New Premium M/S and Mix : Excludes lump sum payment

Note1)Meritz

LT Protection LT Protection LT Protection LT Protection

New premium M/SNew premium M/SNew premium M/SNew premium M/S 10.7%

10.7%10.6%

11.4%

9.1%

10.2%

F Y 2 0 0 4F Y 2 0 0 4F Y 2 0 0 4F Y 2 0 0 4

메리츠메리츠메리츠메리츠 상위상위상위상위4444사사사사

CommCommCommComm

AutoAutoAutoAuto

LTLTLTLT

1Q.FY2010

Maintain ProtectionMaintain ProtectionMaintain ProtectionMaintain ProtectionMaintain ProtectionMaintain ProtectionMaintain ProtectionMaintain Protection--------type driven sales type driven sales type driven sales type driven sales type driven sales type driven sales type driven sales type driven sales →→→→→→→→ Long term line sales mix reaching 60%Long term line sales mix reaching 60%Long term line sales mix reaching 60%Long term line sales mix reaching 60%Long term line sales mix reaching 60%Long term line sales mix reaching 60%Long term line sales mix reaching 60%Long term line sales mix reaching 60%

LT New Premium & Sales PortfolioLT New Premium & Sales PortfolioLT New Premium & Sales PortfolioLT New Premium & Sales Portfolio 10101010

11111111

CategoryCategoryCategoryCategory MeritzMeritzMeritzMeritz AAAA BBBB CCCC DDDD TopTopTopTop----4 4 4 4 AvgAvgAvgAvg Industry Industry Industry Industry AvgAvgAvgAvg

ProtectionProtectionProtectionProtection----type type type type monthly monthly monthly monthly paymentpaymentpaymentpayment

57.8%57.8%57.8%57.8% 42.6% 48.6% 50.4% 48.1% 46.2% 47.3%

ProtectionProtectionProtectionProtection----typetypetypetype 59.2%59.2%59.2%59.2% 44.5% 49.3% 50.6% 49.5% 47.5% 48.5%

SavingsSavingsSavingsSavings----typetypetypetype 40.8% 55.5% 50.7% 49.4% 50.5% 52.5% 51.5%

#1 L/R in industry#1 L/R in industry#1 L/R in industry#1 L/R in industry #1 C/R in industry#1 C/R in industry#1 C/R in industry#1 C/R in industry

LongLongLongLong---- Term line EfficiencyTerm line EfficiencyTerm line EfficiencyTerm line Efficiency

The industryThe industryThe industryThe industryThe industryThe industryThe industryThe industry’’’’’’’’s best Longs best Longs best Longs best Longs best Longs best Longs best Longs best Long--------term line performance term line performance term line performance term line performance term line performance term line performance term line performance term line performance

LT New premium MixLT New premium MixLT New premium MixLT New premium Mix

Note1) LT Protection New premium Mix :Excluding lump-sum pymt

89.6%89.6%89.6%89.6%

88.8%88.8%88.8%88.8%

85.0%85.0%85.0%85.0%

77.5%77.5%77.5%77.5%

80.5%80.5%80.5%80.5%

82.5%82.5%82.5%82.5%

78.8%78.8%78.8%78.8%

86.6%86.6%86.6%86.6%

82.8%82.8%82.8%82.8%82.2%82.2%82.2%82.2%

84.4%84.4%84.4%84.4%

82.4%82.4%82.4%82.4%

FY2005 FY2006 FY2007 FY2008 FY2009 1Q.FY2010

107.0%107.0%107.0%107.0%

103.7%103.7%103.7%103.7%

104.5%104.5%104.5%104.5%103.7%103.7%103.7%103.7%

101.3%101.3%101.3%101.3%101.3%101.3%101.3%101.3%

96.8%96.8%96.8%96.8%99.1%99.1%99.1%99.1%

103.5%103.5%103.5%103.5%

101.6%101.6%101.6%101.6% 101.4%101.4%101.4%101.4%

98.6%98.6%98.6%98.6%

FY2005 FY2006 FY2007 FY2008 FY2009 1Q.FY2010

12121212LongLongLongLong----term Risk premium Mix and L/Rterm Risk premium Mix and L/Rterm Risk premium Mix and L/Rterm Risk premium Mix and L/R

78.676.5

38.538.538.538.534.4

33.6

40.744.644.2

54.754.754.754.756.5

52.451.247.4

64.3

108.4108.4108.4108.4

109.7106.4

113.7

103.8

108.7

101.0

94.0

68.568.2

108.5108.5108.5108.5

83.283.283.283.2

79.1

76.273.6

70.6

FY05 FY06 FY07 FY08 FY09 FY10.6월

(Unit : %)

Death Property, Others

Life guaranteed Life non-guaranteed

Total

[Risk Premium Mix by fiscal year][Risk Premium Mix by fiscal year][Risk Premium Mix by fiscal year][Risk Premium Mix by fiscal year]

36.5% 34.9% 32.6% 29.9% 26.7%

9.3%16.3% 22.1% 27.8% 33.5%

30.7%28.2%

26.6%24.5% 22.3%

23.5% 20.7% 18.7% 17.8% 17.5%

24.7%24.7%24.7%24.7%

35.1%35.1%35.1%35.1%

22.2%22.2%22.2%22.2%

18.0%18.0%18.0%18.0%

FY05 FY06 FY07 FY08 FY09 1Q.FY10

Life GuaranteedLife GuaranteedLife GuaranteedLife Guaranteed Life Non-GuaranteedLife Non-GuaranteedLife Non-GuaranteedLife Non-Guaranteed

DeathDeathDeathDeath Property, OthersProperty, OthersProperty, OthersProperty, Others

FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 FY09FY09FY09FY09 1Q.FY101Q.FY101Q.FY101Q.FY10

Continuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed MixContinuous reduction of Life Guaranteed Mix

※※※※ Renewal date for Life NonRenewal date for Life NonRenewal date for Life NonRenewal date for Life Non----Guaranteed products coming up on Oct 2010Guaranteed products coming up on Oct 2010Guaranteed products coming up on Oct 2010Guaranteed products coming up on Oct 2010 ( 5( 5( 5( 5 yrs (initiated in yrs (initiated in yrs (initiated in yrs (initiated in ‘‘‘‘04), 3 yrs ( initiated in 04), 3 yrs ( initiated in 04), 3 yrs ( initiated in 04), 3 yrs ( initiated in ‘‘‘‘07) )07) )07) )07) )

---- 8.1% of total risk premium will be renewed. Expected renewal ra8.1% of total risk premium will be renewed. Expected renewal ra8.1% of total risk premium will be renewed. Expected renewal ra8.1% of total risk premium will be renewed. Expected renewal rate will increase about 35%te will increase about 35%te will increase about 35%te will increase about 35%

13131313Investment PortfolioInvestment PortfolioInvestment PortfolioInvestment Portfolio

Stabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixedStabilized Investment Profits by increasing fixed--------income assetsincome assetsincome assetsincome assetsincome assetsincome assetsincome assetsincome assets

(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))March 2009 March 2009 March 2009 March 2009 March 2010March 2010March 2010March 2010 June 2010June 2010June 2010June 2010

MixMixMixMix MixMixMixMix MixMixMixMix G/RG/RG/RG/R ProfitsProfitsProfitsProfits YieldYieldYieldYield

FixedFixedFixedFixed----income assetincome assetincome assetincome asset 2,811.9 84.4% 3,169.3 84.1% 3,318.6 83.8% 15.8% 47.4 5.9%

PerformancePerformancePerformancePerformance----based assetbased assetbased assetbased asset 137.9 4.1% 215.8 5.7% 190.3 4.8% -0.8% 4.0 8.0%

StockStockStockStock----type assettype assettype assettype asset 338.9 10.2% 357.6 9.5% 416.2 10.5% 20.0% 3.1 3.2%

OtherOtherOtherOther 43.9 1.3% 27.4 0.7% 37.2 0.9% -15.6% -1.8 -21.3%

SubSubSubSub----totaltotaltotaltotal 3,332.6 100% 3,770.0 100% 3,962.3 100% 14.9% 52.7 5.5%

EquityEquityEquityEquity----method & real estatemethod & real estatemethod & real estatemethod & real estate 805.7 - 857.6 - 861.5 - 6.1% 2.8 2.6%

Total investment assetTotal investment assetTotal investment assetTotal investment asset 4,138.3 - 4,627.6 - 4,823.8 - 13.2% 55.5 4.7%

Note) Fixed income = deposit, AFS bond, overseas bond, loan / performance based = trading bond, alternative investment /Stock = outsourced investment, trading stock, stock-type AI / Other = Non-operating deposit, Property management fees

14141414

(Unit: KRW (Unit: KRW (Unit: KRW (Unit: KRW bnbnbnbn)))) FY2005 FY2006 FY2007 FY2008 FY2009 1Q. FY20101Q. FY20101Q. FY20101Q. FY2010

Direct PremiumDirect PremiumDirect PremiumDirect Premium 1,876.9 2,180.2 2,534.0 2,896.4 3,288.0 916.9916.9916.9916.9

U/W ProfitU/W ProfitU/W ProfitU/W Profit -114.1 -116.0 -77.2 -186.4 -16.4 ----2.72.72.72.7

Combined RatioCombined RatioCombined RatioCombined Ratio 106.3% 105.4% 102.8% 108.7% 100.1% 99.9%99.9%99.9%99.9%

Net Investment ProfitNet Investment ProfitNet Investment ProfitNet Investment Profit 149.5 159.2 179.2 106.2 207.6 555555555555

Investment YieldInvestment YieldInvestment YieldInvestment Yield 6.4% 5.9% 5.6% 2.8% 4.9% 4.7%4.7%4.7%4.7%

Net ProfitNet ProfitNet ProfitNet Profit 26.4 35.8 71.1 -58.8 140.4 41.241.241.241.2

AdjAdjAdjAdj Net ProfitNet ProfitNet ProfitNet Profit 38.7 47.5 84.7 -99.1 154.0 44.444.444.444.4

AdjAdjAdjAdj ROEROEROEROE 12.0% 13.7% 18.6% -16.1% 26.2% 22.8%22.8%22.8%22.8%

Solvency RatioSolvency RatioSolvency RatioSolvency Ratio 193.2% 170.4% 235.8% 189.9% 230.9% 234.2%234.2%234.2%234.2%

OverviewOverviewOverviewOverview

15151515



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Appendix Appendix Appendix Appendix Appendix Appendix Appendix Appendix (1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)※※※※




16161616

GrowthGrowthGrowthGrowth

Profitability, ProductivityProfitability, ProductivityProfitability, ProductivityProfitability, Productivity

Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2ndndndnd TierTierTierTierTake off as a Solid 2Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2Take off as a Solid 2ndndndndndndndnd TierTierTierTierTierTierTierTierSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning PowerSecure Earning Power

Strategic Strategic Strategic Strategic Inflection PointInflection PointInflection PointInflection Point

Strategic Strategic Strategic Strategic Strategic Strategic Strategic Strategic Inflection PointInflection PointInflection PointInflection PointInflection PointInflection PointInflection PointInflection Point

Complete Solid U/W Company structural planComplete Solid U/W Company structural planComplete Solid U/W Company structural planComplete Solid U/W Company structural planComplete Solid U/W Company structural planComplete Solid U/W Company structural planComplete Solid U/W Company structural planComplete Solid U/W Company structural plan

C/R rank 6C/R rank 6C/R rank 6C/R rank 6C/R rank 6C/R rank 6C/R rank 6C/R rank 6→→→→→→→→ rank1rank1rank1rank1rank1rank1rank1rank1

ROE rank7 ROE rank7 ROE rank7 ROE rank7 ROE rank7 ROE rank7 ROE rank7 ROE rank7 →→→→→→→→ rank1rank1rank1rank1rank1rank1rank1rank1

FY2005FY2005FY2005FY2005

Extended Business Strategy Guidance Extended Business Strategy Guidance Extended Business Strategy Guidance Extended Business Strategy Guidance

FY2014FY2014FY2014FY2014

Accelerate growth through profitabilityAccelerate growth through profitabilityAccelerate growth through profitabilityAccelerate growth through profitabilityAccelerate growth through profitabilityAccelerate growth through profitabilityAccelerate growth through profitabilityAccelerate growth through profitability

New 5 years Concept :New 5 years Concept :New 5 years Concept :New 5 years Concept :New 5 years Concept :New 5 years Concept :New 5 years Concept :New 5 years Concept :

““““““““Secure Earning Power Secure Earning Power Secure Earning Power Secure Earning Power Secure Earning Power Secure Earning Power Secure Earning Power Secure Earning Power →→→→→→→→ Entry to 2Entry to 2Entry to 2Entry to 2Entry to 2Entry to 2Entry to 2Entry to 2ndndndndndndndnd tiers through sustainable growthtiers through sustainable growthtiers through sustainable growthtiers through sustainable growthtiers through sustainable growthtiers through sustainable growthtiers through sustainable growthtiers through sustainable growth

5 years after rebirth of Meritz Enter into New Meritz Enter into New Meritz Enter into New Meritz Enter into New Meritz Enter into New Meritz Enter into New Meritz Enter into New Meritz Enter into New Meritz

FY2010FY2010FY2010FY2010FY2010FY2010FY2010FY2010

17171717

『『『『『『『『ResourceResourceResourceResourceResourceResourceResourceResourceInvestmentInvestmentInvestmentInvestmentInvestmentInvestmentInvestmentInvestment』』』』』』』』

&&&&&&&&

『『『『『『『『 Secure Secure Secure Secure Secure Secure Secure Secure

Profitability Profitability Profitability Profitability Profitability Profitability Profitability Profitability 』』』』』』』』

Combined Combined Combined Combined Combined Combined Combined Combined StrategyStrategyStrategyStrategyStrategyStrategyStrategyStrategy

Continue to StrengthenContinue to Strengthen

Risk ManagementRisk Management

Solid competitiveness Solid competitiveness Solid competitiveness Solid competitiveness through differentiationthrough differentiationthrough differentiationthrough differentiation

• Provide top customer serviceProvide top customer serviceProvide top customer serviceProvide top customer service

• Continue to pursuit Continue to pursuit Continue to pursuit Continue to pursuit

profitprofitprofitprofit----driven strategydriven strategydriven strategydriven strategy

ProfitProfitProfitProfitProfitProfitProfitProfit--------oriented with oriented with oriented with oriented with oriented with oriented with oriented with oriented with Customer CompetitivenessCustomer CompetitivenessCustomer CompetitivenessCustomer CompetitivenessCustomer CompetitivenessCustomer CompetitivenessCustomer CompetitivenessCustomer Competitiveness

Infrastructure growthInfrastructure growthInfrastructure growthInfrastructure growthInfrastructure growthInfrastructure growthInfrastructure growthInfrastructure growth

•Expand LT Protection Expand LT Protection Expand LT Protection Expand LT Protection type sales type sales type sales type sales

• Sales growth exceed Sales growth exceed Sales growth exceed Sales growth exceed

top leveltop leveltop leveltop level

Business focus on investment Business focus on investment Business focus on investment Business focus on investment Business focus on investment Business focus on investment Business focus on investment Business focus on investment strategy to secure engines for strategy to secure engines for strategy to secure engines for strategy to secure engines for strategy to secure engines for strategy to secure engines for strategy to secure engines for strategy to secure engines for

future growth future growth future growth future growth future growth future growth future growth future growth

FY2010, TakeFY2010, TakeFY2010, TakeFY2010, TakeFY2010, TakeFY2010, TakeFY2010, TakeFY2010, Take--------off year to innovative growth for next 5 yearsoff year to innovative growth for next 5 yearsoff year to innovative growth for next 5 yearsoff year to innovative growth for next 5 yearsoff year to innovative growth for next 5 yearsoff year to innovative growth for next 5 yearsoff year to innovative growth for next 5 yearsoff year to innovative growth for next 5 years

Complete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural planComplete Solid Underwriting Company Structural plan

→→→→→→→→ Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc Insured, uninsured, Compliance Risk, etc

Extended Business ObjectiveExtended Business ObjectiveExtended Business ObjectiveExtended Business Objective

18181818FY2010 Business ForecastFY2010 Business ForecastFY2010 Business ForecastFY2010 Business Forecast

(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn)))) FY2009FY2009FY2009FY2009 FY2010FY2010FY2010FY2010yoyyoyyoyyoy

Gross PremiumGross PremiumGross PremiumGross Premium 3,288.93,288.93,288.93,288.9 3,781.83,781.83,781.83,781.8 15.0%

CommercialCommercialCommercialCommercial 322.5 350.0 8.5%

AutoAutoAutoAuto 692.1 742.7 7.3%

LongLongLongLong----termtermtermterm 2,274.3 2,689.1 18.2%

Loss RatioLoss RatioLoss RatioLoss Ratio 75.4%75.4%75.4%75.4% 75.1%75.1%75.1%75.1% -0.3%p

CommercialCommercialCommercialCommercial 38.6% 53.0% +14.4%p

AutoAutoAutoAuto 75.5% 74.0% -1.5%p

LongLongLongLong----termtermtermterm(risk L/R)(risk L/R)(risk L/R)(risk L/R)

77.5%(84.2%)

76.5%(85.3%)

-0.1%p(1.1%p)

Expense RatioExpense RatioExpense RatioExpense Ratio 24.7%24.7%24.7%24.7% 25.2%25.2%25.2%25.2% 0.5%p

Combined RatioCombined RatioCombined RatioCombined Ratio 100.1%100.1%100.1%100.1% 100.3%100.3%100.3%100.3% 0.2%p

Underwriting IncomeUnderwriting IncomeUnderwriting IncomeUnderwriting Income -16.4 ----26.5 26.5 26.5 26.5 -

Investment IncomeInvestment IncomeInvestment IncomeInvestment Income(Yield)(Yield)(Yield)(Yield)

207.6207.6207.6207.6(4.9%)(4.9%)(4.9%)(4.9%)

2,41.32,41.32,41.32,41.3

(4.8%) (4.8%) (4.8%) (4.8%)

16.2%(-0.1%p)

Net IncomeNet IncomeNet IncomeNet Income 140.4140.4140.4140.4 1,57.01,57.01,57.01,57.0 11.8%

Increase in Catastrophe Increase in Catastrophe Increase in Catastrophe Increase in Catastrophe

ReservesReservesReservesReserves13.6 16.6 22.1%

Adjusted net incomeAdjusted net incomeAdjusted net incomeAdjusted net income 154.0 173.6 12.7%

Adjusted ROEAdjusted ROEAdjusted ROEAdjusted ROE 26.2% 22.5% -3.7%p

(Unit: W bn) FY2009FY2010FY2010FY2010FY2010

yoy

Total AssetsTotal AssetsTotal AssetsTotal Assets 6,035.06,035.06,035.06,035.0 7,332.57,332.57,332.57,332.5 21.5%21.5%21.5%21.5%

Investment Investment Investment Investment

AssetsAssetsAssetsAssets4,627.6 5,506.4 19.0%

NonNonNonNon----investment investment investment investment

AssetsAssetsAssetsAssets1,407.4 1,461.3 3.8%

Total LiabilitiesTotal LiabilitiesTotal LiabilitiesTotal Liabilities 5,355.05,355.05,355.05,355.0 6,545.66,545.66,545.66,545.6 22.2%22.2%22.2%22.2%

Catastrophe Catastrophe Catastrophe Catastrophe

ReserveReserveReserveReserve119.4 136.0 13.9%

Total ShareholderTotal ShareholderTotal ShareholderTotal Shareholder’’’’s s s s

equityequityequityequity680.0680.0680.0680.0 786.9786.9786.9786.9 15.7%15.7%15.7%15.7%

SolvencySolvencySolvencySolvency 230.9%230.9%230.9%230.9% 235.0%235.0%235.0%235.0% 4.1%p4.1%p4.1%p4.1%p

Solvency Solvency Solvency Solvency

AmountAmountAmountAmount866.4 1,020.1 17.7%

Solvency RatioSolvency RatioSolvency RatioSolvency Ratio 375.3 434.1 15.7%

Net Profit 157.0bn, Net Profit 157.0bn, Net Profit 157.0bn, Net Profit 157.0bn, Net Profit 157.0bn, Net Profit 157.0bn, Net Profit 157.0bn, Net Profit 157.0bn, AdjAdjAdjAdjAdjAdjAdjAdj Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% Net Profit 173.6bn, C/R 100.3%, ROE 22.5% ◆ Investment on new and potential market growth to secure profit-oriented, 22.1bn (Earned 22.1bn (Earned PremPrem 0.6%)0.6%)

19191919

Adj

ROE

Solvency RatioSolvency RatioSolvency RatioSolvency RatioNote1) Meritz FY2008 Adj ROE: Before RG Loss effect

TARGETTARGETTARGETTARGETTARGETTARGETTARGETTARGETZONEZONEZONEZONEZONEZONEZONEZONE

200%200%

15%15%

FY08FY08FY08FY08

FY08FY08

• AdjAdjAdjAdj ROE : 9.2%ROE : 9.2%ROE : 9.2%ROE : 9.2%

• Solvency Ratio : 189.9%Solvency Ratio : 189.9%Solvency Ratio : 189.9%Solvency Ratio : 189.9%

• AdjAdjAdjAdj ROE : 26.2%ROE : 26.2%ROE : 26.2%ROE : 26.2%

•Solvency Ratio : 230.9%Solvency Ratio : 230.9%Solvency Ratio : 230.9%Solvency Ratio : 230.9%

MeritzMeritzMeritzMeritz 2222ndndndnd TiersTiersTiersTiers

FY09FY09

FY07FY07

• AdjAdjAdjAdj ROE 27.4%ROE 27.4%ROE 27.4%ROE 27.4%

• Solvency Ratio 201.1%Solvency Ratio 201.1%Solvency Ratio 201.1%Solvency Ratio 201.1%


•Solvency Ratio 192.3%Solvency Ratio 192.3%Solvency Ratio 192.3%Solvency Ratio 192.3%

• AdjAdjAdjAdj ROE : ROE : ROE : ROE : 22.5%22.5%22.5%22.5%

• Solvency Ratio : Solvency Ratio : Solvency Ratio : Solvency Ratio : 235.0%235.0%235.0%235.0%

Risk & Return Balance TargetRisk & Return Balance TargetRisk & Return Balance TargetRisk & Return Balance Target

FY10FY10FY10FY10FY10FY10FY10FY10

FY09FY09FY09FY09


• Solvency Ratio 217.0%Solvency Ratio 217.0%Solvency Ratio 217.0%Solvency Ratio 217.0%

20202020

About F&MAbout F&MAbout F&MAbout F&MAbout F&MAbout F&MAbout F&MAbout F&M


1111


AppendixAppendixAppendixAppendixAppendixAppendixAppendixAppendix (1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)(1Q.FY2010 Financial results)※※※※




21212121Embedded Value resultsEmbedded Value resultsEmbedded Value resultsEmbedded Value results

Unit : KRW Unit : KRW Unit : KRW Unit : KRW bnbnbnbn

FY2008FY2008FY2008FY2008 FY2009FY2009FY2009FY2009

556.2556.2556.2556.2556.2556.2556.2556.2

534.9534.9534.9534.9534.9534.9534.9534.9

1,091.11,091.11,091.11,091.11,091.11,091.11,091.11,091.1

1,599.11,599.11,599.11,599.11,599.11,599.11,599.11,599.1

753.7753.7753.7753.7753.7753.7753.7753.7

845.4845.4845.4845.4845.4845.4845.4845.4

EmbeddedEmbeddedEmbeddedEmbeddedValueValueValueValue

AdjustedNet Worth

Value ofIn-force＝＝＝＝＋＋＋＋

FY2007FY2007FY2007FY2007

416.4416.4416.4416.4416.4416.4416.4416.4

808.2808.2808.2808.2808.2808.2808.2808.2

1,224.61,224.61,224.61,224.61,224.61,224.61,224.61,224.6

Value of Value of Value of Value of inininin----force businessforce businessforce businessforce business

AdjustedAdjustedAdjustedAdjustedNet WorthNet WorthNet WorthNet Worth

EmbeddedEmbeddedEmbeddedEmbeddedValueValueValueValue

139.7139.7139.7139.733.5% 33.5% 33.5% 33.5% ↑↑↑↑

----273.3273.3273.3273.333.8% 33.8% 33.8% 33.8% ↓↓↓↓

197.5197.5197.5197.535.5% 35.5% 35.5% 35.5% ↑↑↑↑

310.5310.5310.5310.558.0% 58.0% 58.0% 58.0% ↑↑↑↑

----133.5133.5133.5133.511.0% 11.0% 11.0% 11.0% ↓↓↓↓

508.0508.0508.0508.046.6% 46.6% 46.6% 46.6% ↑↑↑↑

FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 FY2009 EV: KRW 1,599.1 bnbnbnbnbnbnbnbn (KRW 508.0 (KRW 508.0 (KRW 508.0 (KRW 508.0 (KRW 508.0 (KRW 508.0 (KRW 508.0 (KRW 508.0 bnbnbnbnbnbnbnbn (46.6%) increase (46.6%) increase (46.6%) increase (46.6%) increase (46.6%) increase (46.6%) increase (46.6%) increase (46.6%) increase YoYYoYYoYYoYYoYYoYYoYYoY))))))))

22222222Value of inValue of inValue of inValue of in----force businessforce businessforce businessforce business

▶▶▶▶▶▶▶▶ Operational AssumptionOperational AssumptionOperational AssumptionOperational AssumptionOperational AssumptionOperational AssumptionOperational AssumptionOperational Assumption

Persistency ratioPersistency ratioPersistency ratioPersistency ratio ---- Applied preceding 3 years data Applied preceding 3 years data Applied preceding 3 years data Applied preceding 3 years data →→→→ detailed by each product type and channeldetailed by each product type and channeldetailed by each product type and channeldetailed by each product type and channel

Risk premium L/RRisk premium L/RRisk premium L/RRisk premium L/R

- Empirical data of past 6 years Empirical data of past 6 years Empirical data of past 6 years Empirical data of past 6 years →→→→ applied in 17 categoriesapplied in 17 categoriesapplied in 17 categoriesapplied in 17 categories

---- PV of accumulated L/R of InPV of accumulated L/R of InPV of accumulated L/R of InPV of accumulated L/R of In----force Business : FY2008 90.1%, FY2009 89.3%force Business : FY2008 90.1%, FY2009 89.3%force Business : FY2008 90.1%, FY2009 89.3%force Business : FY2008 90.1%, FY2009 89.3%

�� Due to increase in superior coverage ratio (FY2008 47.7% Due to increase in superior coverage ratio (FY2008 47.7% Due to increase in superior coverage ratio (FY2008 47.7% Due to increase in superior coverage ratio (FY2008 47.7% →→→→ FY2009 49.0%)FY2009 49.0%)FY2009 49.0%)FY2009 49.0%)

ExpensesExpensesExpensesExpenses

---- Commission cost : Applied existing sales commission schemeCommission cost : Applied existing sales commission schemeCommission cost : Applied existing sales commission schemeCommission cost : Applied existing sales commission scheme

- Other expenses : Other expenses : Other expenses : Other expenses : Empirical data of past Empirical data of past Empirical data of past Empirical data of past 1111 year year year year

- PV of accumulated E/R of InPV of accumulated E/R of InPV of accumulated E/R of InPV of accumulated E/R of In----force Business : force Business : force Business : force Business : FY2008 79.4%, FY2009 79.2%FY2008 79.4%, FY2009 79.2%FY2008 79.4%, FY2009 79.2%FY2008 79.4%, FY2009 79.2%

Assumed interest rateAssumed interest rateAssumed interest rateAssumed interest rate- Categorized fixed/floatingCategorized fixed/floatingCategorized fixed/floatingCategorized fixed/floating, , , , floating type is applied by floating type is applied by floating type is applied by floating type is applied by according to type of interaccording to type of interaccording to type of interaccording to type of intereeeest rate such as insurance st rate such as insurance st rate such as insurance st rate such as insurance

business loan ratebusiness loan ratebusiness loan ratebusiness loan rate

EmbeddedValue

AdjustedNet Worth

Value ofValue ofValue ofValue ofInInInIn----forceforceforceforce＝＝＝＝＋＋＋＋

▶▶▶▶▶▶▶▶ Economic AssumptionEconomic AssumptionEconomic AssumptionEconomic AssumptionEconomic AssumptionEconomic AssumptionEconomic AssumptionEconomic Assumption

□□□□ Investment yield : 5.1%Investment yield : 5.1%Investment yield : 5.1%Investment yield : 5.1%

(Unit : %)(Unit : %)(Unit : %)(Unit : %) FY2009FY2009FY2009FY2009 FY2008FY2008FY2008FY2008 YoYYoYYoYYoY

Investment yieldInvestment yieldInvestment yieldInvestment yield 5.105.105.105.10 5.005.005.005.00 0.10%p0.10%p0.10%p0.10%p

□□□□ Risk Discount Rate : 11.5%Risk Discount Rate : 11.5%Risk Discount Rate : 11.5%Risk Discount Rate : 11.5%

□□□□ Inflation Rate : 3.0%Inflation Rate : 3.0%Inflation Rate : 3.0%Inflation Rate : 3.0%

□□□□ Tax Tax Tax Tax ---- Tax rate deduction applied by stages (FY10 ~ FY11 : 24.2%, afteTax rate deduction applied by stages (FY10 ~ FY11 : 24.2%, afteTax rate deduction applied by stages (FY10 ~ FY11 : 24.2%, afteTax rate deduction applied by stages (FY10 ~ FY11 : 24.2%, after FY12 : 22.0%)r FY12 : 22.0%)r FY12 : 22.0%)r FY12 : 22.0%)

□□□□ Required CapitalRequired CapitalRequired CapitalRequired Capital

---- 150% of existing solvency margin requirement150% of existing solvency margin requirement150% of existing solvency margin requirement150% of existing solvency margin requirement

---- Calculated by Calculated by Calculated by Calculated by CAPM(CapitalCAPM(CapitalCAPM(CapitalCAPM(Capital Asset Pricing Model)Asset Pricing Model)Asset Pricing Model)Asset Pricing Model)

23232323Value of inValue of inValue of inValue of in----force businessforce businessforce businessforce business


CategoryCategoryCategoryCategory FY2009FY2009FY2009FY2009 FY2008FY2008FY2008FY2008 YoYYoYYoYYoY

PV of Future Premium (a) 8,816.1 7,155.2 1,660.9 23.2%

PV of Future Profit (b) 972.7 742.8 229.9 31.0%

Margin (b/a) 11.0% 10.4% +0.6%p

Cost of Capital (c) 219.0 186.6 32.4 17.4%

(c/a) 2.5% 2.6% -0.1%p

Value of InValue of InValue of InValue of In----force Business force Business force Business force Business (d = b (d = b (d = b (d = b ---- c)c)c)c)

753.7753.7753.7753.7 556.2556.2556.2556.2 197.5197.5197.5197.5 35.5%35.5%35.5%35.5%

Profit Margin (d/a)Profit Margin (d/a)Profit Margin (d/a)Profit Margin (d/a) 8.5%8.5%8.5%8.5% 7.8 %7.8 %7.8 %7.8 % 0.7%p 0.7%p 0.7%p 0.7%p ↑↑↑↑

EmbeddedValue

AdjustedNet Worth

Value ofValue ofValue ofValue ofInInInIn----forceforceforceforce＝＝＝＝＋＋＋＋

VIB = Present Value of Future Profit VIB = Present Value of Future Profit VIB = Present Value of Future Profit VIB = Present Value of Future Profit VIB = Present Value of Future Profit VIB = Present Value of Future Profit VIB = Present Value of Future Profit VIB = Present Value of Future Profit –––––––– Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 Cost of Capital = KRW 753.7 bnbnbnbnbnbnbnbn

24242424Value of new businessValue of new businessValue of new businessValue of new business


CategoryCategoryCategoryCategory FY2009FY2009FY2009FY2009 FY2008FY2008FY2008FY2008 YoYYoYYoYYoY

PV of Future Premium (a) 3,161.2 2,664.1 497.1 18.7%

Annualized Premiums equivalent (b) 1,101.9 903.8 198.1 21.9%

PV of Future Profit (c) 279.2 230.3 48.9 21.2%

Margin (c/a) 8.8% 8.6% +0.2%p

Cost of Capital 49.2 45.4 3.8 8.4%

Value of 1Value of 1Value of 1Value of 1----year New Business (d)year New Business (d)year New Business (d)year New Business (d) 229.9229.9229.9229.9 184.9184.9184.9184.9 45.045.045.045.0 24.3%24.3%24.3%24.3%

Profit Margin (d/a)Profit Margin (d/a)Profit Margin (d/a)Profit Margin (d/a) 7.3%7.3%7.3%7.3% 6.9%6.9%6.9%6.9% 0.4%p 0.4%p 0.4%p 0.4%p ↑↑↑↑

Profit Margin on ANP (d/b) 20.9% 20.5% 0.4%p ↑

※ ANP : Annualized premiums equivalent

Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1--------year new business : KRW 229.9 year new business : KRW 229.9 year new business : KRW 229.9 year new business : KRW 229.9 year new business : KRW 229.9 year new business : KRW 229.9 year new business : KRW 229.9 year new business : KRW 229.9 bnbnbnbnbnbnbnbn

25252525MovementMovementMovementMovement

FY2007FY2007FY2007FY2007 FY2008FY2008FY2008FY2008 FY2009FY2009FY2009FY2009

PricePricePricePrice PricePricePricePrice PricePricePricePriceEVPSEVPSEVPSEVPS EVPSEVPSEVPSEVPS EVPSEVPSEVPSEVPS

901.0901.0901.0901.0989.2989.2989.2989.2

3,87.03,87.03,87.03,87.0

8,81.38,81.38,81.38,81.3 735.0735.0735.0735.0

※※※※ EVPS : Issued share (123,800,000) basisEVPS : Issued share (123,800,000) basisEVPS : Issued share (123,800,000) basisEVPS : Issued share (123,800,000) basis

1,291.71,291.71,291.71,291.7

0.91x0.91x0.91x0.91x

0.44x0.44x0.44x0.44x0.57x0.57x0.57x0.57x

P/EVP/EVP/EVP/EV

CurrentCurrentCurrentCurrent(2010.5.13)(2010.5.13)(2010.5.13)(2010.5.13)

PricePricePricePrice EVPSEVPSEVPSEVPS

813.0813.0813.0813.0

1,291.71,291.71,291.71,291.7

0.63x0.63x0.63x0.63x

Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV Current stock price is undervalued compared with P/EV


26262626SensitivitySensitivitySensitivitySensitivity

CategoryCategoryCategoryCategoryRisk Discount RateRisk Discount RateRisk Discount RateRisk Discount Rate RBCRBCRBCRBC

(RDR 11.5%)10.0%10.0%10.0%10.0% 11.5%11.5%11.5%11.5% 13.0%13.0%13.0%13.0%

Adjusted Net WorthAdjusted Net WorthAdjusted Net WorthAdjusted Net Worth 845.4845.4845.4845.4

Shareholder’s Equity 680.0

Adjusted Capital 165.4

Value of InValue of InValue of InValue of In----force Businessforce Businessforce Businessforce Business 856.5856.5856.5856.5 753.7753.7753.7753.7 666.5666.5666.5666.5 786.1786.1786.1786.1

PV of future profit 1,051.3 972.7 904.9 972.7

Cost of Capital 194.8 219.0 238.4 186.6

Embedded ValueEmbedded ValueEmbedded ValueEmbedded Value 1,701.91,701.91,701.91,701.9 1,599.11,599.11,599.11,599.1 1,511.91,511.91,511.91,511.9 1,631.51,631.51,631.51,631.5

Value of 1Value of 1Value of 1Value of 1----year New Businessyear New Businessyear New Businessyear New Business 263.0263.0263.0263.0 229.9229.9229.9229.9 202.2202.2202.2202.2 237.3237.3237.3237.3

PV of future profit 307.5 279.2 254.9 279.2

Cost of Capital 44.5 49.2 52.7 41.9


27272727



1111


AppendixAppendixAppendixAppendixAppendixAppendixAppendixAppendix (1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)(1Q. FY2010 Financial Results)※※※※




2828282828282828AgendaAgendaAgendaAgenda

I. Why do we need to convertI. Why do we need to convertI. Why do we need to convertI. Why do we need to convert

Ⅱ. Conversion Method

Ⅲ. Conversion Effect

Ⅳ. Scheduled Date

2929292929292929The need to create synergy to secure revenueThe need to create synergy to secure revenueThe need to create synergy to secure revenueThe need to create synergy to secure revenue----based business and based business and based business and based business and maintain stable market position maintain stable market position maintain stable market position maintain stable market position under the current group business lineunder the current group business lineunder the current group business lineunder the current group business line

Domestic NonDomestic NonDomestic NonDomestic Non----life insurance, securities, life insurance, securities, life insurance, securities, life insurance, securities,

asset management positioning matrixasset management positioning matrixasset management positioning matrixasset management positioning matrixComparison with other industriesComparison with other industriesComparison with other industriesComparison with other industries

(Source: Financial Statistic Information, FY09 3Q Public data,)

SecuritiesSecuritiesSecuritiesSecurities

(Unit : KRW bn) M/SM/SM/SM/S ShareShareShareShare’’’’s equitys equitys equitys equity AssetsAssetsAssetsAssets

MeritzMeritzMeritzMeritz 1.3% 529.5 1,991.8

Top 5 Top 5 Top 5 Top 5 AvgAvgAvgAvg 7.8% 2,450.2 13,147.8

GAPGAPGAPGAP -6.4% -1,920.6 -11,156.0

Asset ManagementAsset ManagementAsset ManagementAsset Management


MeritzMeritzMeritzMeritz 0.2% 7.8 8.1

Top 5 Top 5 Top 5 Top 5 AvgAvgAvgAvg 8.6% 207.0 247.8

GAPGAPGAPGAP -8.3% -199.1 -239.7

※ Based on 12 non-life insurance (Including Kyobo direct)

LI G

Samsung F&M

DongbuF&M

HyundaiMar i ne

Mer i t zF&M

DaewooSecur i t es

SamsungSecut i es

Kor ea I nves t ment

Mer i t zSecur i t i es

Mi r ae assetManagement

KB Ass etManagement

Mer i t z Ass etmanagement

- 15. 0%

- 5. 0%

5. 0%

15. 0%

25. 0%

35. 0%

- 0. 1% 5. 0% 10. 0% 15. 0% 20. 0% 25. 0% 30. 0%

M/S

ROE

In order to overcome weaknesses of subsidiaries under Meritz groIn order to overcome weaknesses of subsidiaries under Meritz groIn order to overcome weaknesses of subsidiaries under Meritz groIn order to overcome weaknesses of subsidiaries under Meritz group, the creation plan up, the creation plan up, the creation plan up, the creation plan

of recapitalization and synergy consolidation is in need to raisof recapitalization and synergy consolidation is in need to raisof recapitalization and synergy consolidation is in need to raisof recapitalization and synergy consolidation is in need to raise the necessary e the necessary e the necessary e the necessary

conditionsconditionsconditionsconditions

NonNonNonNon----life Insurancelife Insurancelife Insurancelife Insurance


MeritzMeritzMeritzMeritz 8.2% 612.9 5,800.8

Top 5 Top 5 Top 5 Top 5 AvgAvgAvgAvg 18.1% 1,822.2 13,999.6

GAPGAPGAPGAP -9.9% -1,209.3 -8,198.8

(Source: Financial Statistic Information, FY09 3Q Public data)

3030303030303030Need of diversification of financial business line Need of diversification of financial business line Need of diversification of financial business line Need of diversification of financial business line to provide comprehensive financial serviceto provide comprehensive financial serviceto provide comprehensive financial serviceto provide comprehensive financial service

---- Enhance customerEnhance customerEnhance customerEnhance customer’’’’s loyalty through ones loyalty through ones loyalty through ones loyalty through one----stop stop stop stop

comprehensive financial servicecomprehensive financial servicecomprehensive financial servicecomprehensive financial service

---- In order to secure new engines for sustainable growth of In order to secure new engines for sustainable growth of In order to secure new engines for sustainable growth of In order to secure new engines for sustainable growth of

the group, diversification of financial business is needed. the group, diversification of financial business is needed. the group, diversification of financial business is needed. the group, diversification of financial business is needed.

PaymentPaymentPaymentPayment

DepositDepositDepositDeposit

LoanLoanLoanLoan

SecuritySecuritySecuritySecurity

AssetAssetAssetAsset

ManagementManagementManagementManagement

InsuranceInsuranceInsuranceInsurance

VariableVariableVariableVariable

InsuranceInsuranceInsuranceInsurance

Financial Financial Financial Financial

DerivativeDerivativeDerivativeDerivative

Credit Credit Credit Credit

InformationInformationInformationInformation

TrustTrustTrustTrust

Foreign Foreign Foreign Foreign

ExchangeExchangeExchangeExchange

OperatingOperatingOperatingOperating

AssetsAssetsAssetsAssets

ResearchResearchResearchResearch

ConsultingConsultingConsultingConsulting

Function of Financial serviceFunction of Financial serviceFunction of Financial serviceFunction of Financial service

Non-lifeFinancial

Investment

Asset

Management

Sales

professional

bankbankbankbankLife Life Life Life

insuranceinsuranceinsuranceinsurance

Savings Savings Savings Savings

bankbankbankbankLoanLoanLoanLoan

Credit Credit Credit Credit

informationinformationinformationinformation

Operating businessOperating businessOperating businessOperating business

NonNonNonNon----operating businessoperating businessoperating businessoperating business

Function of financial service and business lineFunction of financial service and business lineFunction of financial service and business lineFunction of financial service and business line

Meritz Fire

Securities InvestmentFinancialFinancialFinancialFinancial

Information Information Information Information servservservservRitz Partners

30.5%30.5%30.5%30.5% 100%100%100%100% 100%100%100%100% 100%100%100%100%

• Total Investment affordability : KRW155.7 bn

• Amount invested : KRW143.1 bn

(invested to subsidiaries)

• Remaining amount to invest : KRW 12.6 bn

No affordability to invest

• Investment affordability

- KRW100 bn ~ 150 bn

Corporate governance and investment affordabilityCorporate governance and investment affordabilityCorporate governance and investment affordabilityCorporate governance and investment affordability

Major shareholder

21.4%21.4%21.4%21.4%

(Based on March 2010, excluding foreign subsidiaries and grandson companies)

※ Meritz Securities'special account equity not included (0.2%)

There is limit to provide comprehensive financial service as theThere is limit to provide comprehensive financial service as theThere is limit to provide comprehensive financial service as theThere is limit to provide comprehensive financial service as the

amounts of investment affordability under the current corporateamounts of investment affordability under the current corporateamounts of investment affordability under the current corporateamounts of investment affordability under the current corporate

governance are KRW110 governance are KRW110 governance are KRW110 governance are KRW110 bnbnbnbn ~ 160 ~ 160 ~ 160 ~ 160 bnbnbnbn. . . .

3131313131313131Need of proactive measure for division of manufacturing Need of proactive measure for division of manufacturing Need of proactive measure for division of manufacturing Need of proactive measure for division of manufacturing and sales of financial productsand sales of financial productsand sales of financial productsand sales of financial products

---- In order to proactively respond to introduction of exclusive saIn order to proactively respond to introduction of exclusive saIn order to proactively respond to introduction of exclusive saIn order to proactively respond to introduction of exclusive sales company for the les company for the les company for the les company for the

sales of comprehensive financial products and sales of comprehensive financial products and sales of comprehensive financial products and sales of comprehensive financial products and development of Integrateddevelopment of Integrateddevelopment of Integrateddevelopment of Integrated----type type type type

channel, It needs to strengthen the competitiveness of the grochannel, It needs to strengthen the competitiveness of the grochannel, It needs to strengthen the competitiveness of the grochannel, It needs to strengthen the competitiveness of the groupupupup’’’’s sales company.s sales company.s sales company.s sales company.

---- Financial holding company which can share customer DB will beneFinancial holding company which can share customer DB will beneFinancial holding company which can share customer DB will beneFinancial holding company which can share customer DB will benefit to take off the fit to take off the fit to take off the fit to take off the

sales company.sales company.sales company.sales company.

< Exclusive sales company of financial product < Exclusive sales company of financial product < Exclusive sales company of financial product < Exclusive sales company of financial product

will be introduced iwill be introduced iwill be introduced iwill be introduced in 2010>n 2010>n 2010>n 2010>

☞☞☞☞ Sales of any kind of financial products are possibleSales of any kind of financial products are possibleSales of any kind of financial products are possibleSales of any kind of financial products are possible

☞☞☞☞ Maintain independent status segregated from manufacturerMaintain independent status segregated from manufacturerMaintain independent status segregated from manufacturerMaintain independent status segregated from manufacturer

☞☞☞☞ Provide comprehensive financial service through Provide comprehensive financial service through Provide comprehensive financial service through Provide comprehensive financial service through

visiting solicitor (=financial product sales plaza)visiting solicitor (=financial product sales plaza)visiting solicitor (=financial product sales plaza)visiting solicitor (=financial product sales plaza)

Purpose of new Purpose of new Purpose of new Purpose of new

• Measure to segregation ofMeasure to segregation ofMeasure to segregation ofMeasure to segregation of

manufacture and salesmanufacture and salesmanufacture and salesmanufacture and sales

• Sales of any kind of financial Sales of any kind of financial Sales of any kind of financial Sales of any kind of financial

products are possibleproducts are possibleproducts are possibleproducts are possible

• Comparison among financial Comparison among financial Comparison among financial Comparison among financial

productsproductsproductsproducts

• Reformation of Financial Reformation of Financial Reformation of Financial Reformation of Financial

consumer protection systemconsumer protection systemconsumer protection systemconsumer protection system

bankbankbankbank

NonNonNonNon----

lifelifelifelife

LifeLifeLifeLife

insuranceinsuranceinsuranceinsurance


investmentinvestmentinvestmentinvestment

cardcardcardcard

loanloanloanloan

Asset Asset Asset Asset

ManageManageManageManage----

mentmentmentment

....

....

....

IndividualIndividualIndividualIndividual

customercustomercustomercustomer

CorporateCorporateCorporateCorporate

customercustomercustomercustomer

VIPVIPVIPVIP

....

....

....

Sales Sales Sales Sales

subsidiarysubsidiarysubsidiarysubsidiary

323232323232323232323232Improvement of efficiency through focusing on core competenceImprovement of efficiency through focusing on core competenceImprovement of efficiency through focusing on core competenceImprovement of efficiency through focusing on core competence

FireFireFireFire


InvestmentInvestmentInvestmentInvestment

Ritz PartnersRitz PartnersRitz PartnersRitz Partners

IT ServiceIT ServiceIT ServiceIT Service

Outsourcing Outsourcing Outsourcing Outsourcing

Core functionCore functionCore functionCore function Common functionCommon functionCommon functionCommon function

• business planbusiness planbusiness planbusiness plan

• HRHRHRHRㆍㆍㆍㆍITITITITㆍㆍㆍㆍCS planCS planCS planCS plan

• MarketingMarketingMarketingMarketingㆍㆍㆍㆍSupportingSupportingSupportingSupporting

• Investment/Loan Investment/Loan Investment/Loan Investment/Loan

• Product Product Product Product

• Risk managementRisk managementRisk managementRisk management

• ActuaryActuaryActuaryActuary

• ComplianceComplianceComplianceCompliance

• AuditAuditAuditAudit

• IRIRIRIR

• Finance management Finance management Finance management Finance management

• AccountingAccountingAccountingAccounting

• Advertising Advertising Advertising Advertising

• System operationSystem operationSystem operationSystem operation

• IT maintenanceIT maintenanceIT maintenanceIT maintenance

• PurchasingPurchasingPurchasingPurchasing

• RentRentRentRent

• Call centerCall centerCall centerCall center

• HRHRHRHR

• SalarySalarySalarySalary

• Legal serviceLegal serviceLegal serviceLegal service

• AccountingAccountingAccountingAccounting

• Real estate Real estate Real estate Real estate

• RecoveryRecoveryRecoveryRecovery

HoldingsHoldingsHoldingsHoldings

---- Brand managingBrand managingBrand managingBrand managing

Shared Service CenterShared Service CenterShared Service CenterShared Service Center

---- Call centerCall centerCall centerCall center

Outsourcing companyOutsourcing companyOutsourcing companyOutsourcing company

-Maintenance, Rent, Maintenance, Rent, Maintenance, Rent, Maintenance, Rent, Purchasing, EducationPurchasing, EducationPurchasing, EducationPurchasing, Education

Improvement of management efficiency by integrating the common rImprovement of management efficiency by integrating the common rImprovement of management efficiency by integrating the common rImprovement of management efficiency by integrating the common roles to relevant oles to relevant oles to relevant oles to relevant

subsidiaries while each company focusing on core competence subsidiaries while each company focusing on core competence subsidiaries while each company focusing on core competence subsidiaries while each company focusing on core competence


Ⅰ. Why do we need to convert

ⅡⅡⅡⅡ. Conversion Method. Conversion Method. Conversion Method. Conversion Method


Ⅳ. Scheduled Date

3434343434343434Meritz Financial CompanyMeritz Financial CompanyMeritz Financial CompanyMeritz Financial Company’’’’s Share Structure (2010. 6.30) s Share Structure (2010. 6.30) s Share Structure (2010. 6.30) s Share Structure (2010. 6.30)

* Meritz Securities stake : includes special account (767,430 shares, 0.2%)

* Market Cap: Based on 2010.6.30

• Capital : 10.0 bn

21.4%21.4%21.4%21.4%

•Treasury: 13.9%

100%100%100%100%

• Financial Co•Financial Co • Non-Financial Co •Financial Co

•Capital: 15.0 bn • Capital: 1.0 bn• Capital : 308.9 bn

• Market Cap : 308.9 bn

• Market Cap : KRW 964.4 bn

* Meritz F&M Treasury : Includes Treasury fund(1,110,550 shares, 0.9%)

•Capital Stocks: KRW61.9 bn

Meritz Meritz Meritz Meritz


Meritz AssetMeritz AssetMeritz AssetMeritz Asset


Meritz Financial Meritz Financial Meritz Financial Meritz Financial

InformationInformationInformationInformationRitz PartnersRitz PartnersRitz PartnersRitz Partners

F&MF&MF&MF&M

Major Major Major Major

ShareholderShareholderShareholderShareholder

30.71%30.71%30.71%30.71% 100%100%100%100% 100%100%100%100% 100%100%100%100%

Meritz Business Meritz Business Meritz Business Meritz Business ServiceServiceServiceService

3535353535353535Transformation and ShareholderTransformation and ShareholderTransformation and ShareholderTransformation and Shareholder’’’’s structures structures structures structure

Splitting part of Meritz F&M subsidiarySplitting part of Meritz F&M subsidiarySplitting part of Meritz F&M subsidiarySplitting part of Meritz F&M subsidiary’’’’s stocks and Treasury, cash assets to establish Holding Company,s stocks and Treasury, cash assets to establish Holding Company,s stocks and Treasury, cash assets to establish Holding Company,s stocks and Treasury, cash assets to establish Holding Company,

and after IPO, Holding Company will buy Meritz and after IPO, Holding Company will buy Meritz and after IPO, Holding Company will buy Meritz and after IPO, Holding Company will buy Meritz F&MF&MF&MF&M’’’’ssss shares through tender offer to meet shareholders shares through tender offer to meet shareholders shares through tender offer to meet shareholders shares through tender offer to meet shareholders

requirements for holding companies (listed 30%, nonrequirements for holding companies (listed 30%, nonrequirements for holding companies (listed 30%, nonrequirements for holding companies (listed 30%, non----listed 50%)listed 50%)listed 50%)listed 50%)

F&MF&MF&MF&M

Asset Asset Asset Asset




Ritz Ritz Ritz Ritz

PartnersPartnersPartnersPartnersSecuritiesSecuritiesSecuritiesSecurities



Holding Holding Holding Holding

CompanyCompanyCompanyCompany

Holding CoHolding CoHolding CoHolding Co

AssetAssetAssetAsset




Ritz Ritz Ritz Ritz

PartnersPartnersPartnersPartnersSecuritiesSecuritiesSecuritiesSecurities



F&MF&MF&MF&M

Investment in kindInvestment in kindInvestment in kindInvestment in kind

(Tender offer (Tender offer (Tender offer (Tender offer

method)method)method)method)

21.4%21.4%21.4%21.4%

21.4%21.4%21.4%21.4%

21.4% + Investment in kind21.4% + Investment in kind21.4% + Investment in kind21.4% + Investment in kind’’’’s exchange sharess exchange sharess exchange sharess exchange shares

1111stststst step : Meritz F&M Investment Division Splitstep : Meritz F&M Investment Division Splitstep : Meritz F&M Investment Division Splitstep : Meritz F&M Investment Division Split 2222ndndndnd step : Tender offer for Meritz F&Mstep : Tender offer for Meritz F&Mstep : Tender offer for Meritz F&Mstep : Tender offer for Meritz F&M

30.5 %30.5 %30.5 %30.5 % 100%100%100%100% 100%100%100%100% 100%100%100%100%

※※※※ Treasury(13.0%), part of cash assetTreasury(13.0%), part of cash assetTreasury(13.0%), part of cash assetTreasury(13.0%), part of cash asset

DivisionDivisionDivisionDivision

30.5%+30.5%+30.5%+30.5%+ββββ 100%100%100%100% 100%100%100%100% 100%100%100%100%34.4%+34.4%+34.4%+34.4%+αααα

αααα : Participation of regular shareholder: Participation of regular shareholder: Participation of regular shareholder: Participation of regular shareholder’’’’s in tender offer s in tender offer s in tender offer s in tender offer

ββββ : Acquisition of Meritz Securities: Acquisition of Meritz Securities: Acquisition of Meritz Securities: Acquisition of Meritz Securities’’’’ transferred cash assets transferred cash assets transferred cash assets transferred cash assets

transferredtransferredtransferredtransferred

※※※※ Spin offs : After the split, distributing holding companySpin offs : After the split, distributing holding companySpin offs : After the split, distributing holding companySpin offs : After the split, distributing holding company’’’’s shares s shares s shares s shares

proportionally to existing shareholders.proportionally to existing shareholders.proportionally to existing shareholders.proportionally to existing shareholders.

ex) Existing 10 shares (1%), Supposedly using 7:3 split metex) Existing 10 shares (1%), Supposedly using 7:3 split metex) Existing 10 shares (1%), Supposedly using 7:3 split metex) Existing 10 shares (1%), Supposedly using 7:3 split method, hod, hod, hod,

= Split to Meritz F&M 7(1%): Holding 3(1%)= Split to Meritz F&M 7(1%): Holding 3(1%)= Split to Meritz F&M 7(1%): Holding 3(1%)= Split to Meritz F&M 7(1%): Holding 3(1%)

MBS

HanjinHanjinHanjinHanjin

KorindoKorindoKorindoKorindo

51%51%51%51%

※※※※ ExceptionExceptionExceptionException

Shin dong bang Shin dong bang Shin dong bang Shin dong bang

LtdLtdLtdLtd

Investment Investment Investment Investment

AdvisoryAdvisoryAdvisoryAdvisory

HanjinHanjinHanjinHanjin

KorindoKorindoKorindoKorindo

100%100%100%100%51%51%51%51%

90%90%90%90%

MBS

100%100%100%100%

100%100%100%100%

3636363636363636Asset ChangesAsset ChangesAsset ChangesAsset Changes

Cash and DepositsCash and DepositsCash and DepositsCash and Deposits 181.2 181.2 181.2 181.2

SecuritiesSecuritiesSecuritiesSecurities 3,290.4 3,290.4 3,290.4 3,290.4

LoansLoansLoansLoans 790.2 790.2 790.2 790.2

Tangible AssetsTangible AssetsTangible AssetsTangible Assets 750.6 750.6 750.6 750.6

Other AssetsOther AssetsOther AssetsOther Assets 1,387.6 1,387.6 1,387.6 1,387.6

Special Accounts Special Accounts Special Accounts Special Accounts

AssetsAssetsAssetsAssets327.3 327.3 327.3 327.3

CashCashCashCash 33.2 33.2 33.2 33.2

SecuritiesSecuritiesSecuritiesSecurities 264.6264.6264.6264.6

Meritz Securities 174.8

Meritz Asset Management 12.0

Meritz Financial Information 3.9

Ritz Partners 7.3

MBS 1.0

Meritz F&M (Existing Co) 65.6

Intangible AssetsIntangible AssetsIntangible AssetsIntangible Assets 6.86.86.86.8

Existing CorporateExisting CorporateExisting CorporateExisting Corporate New CorporateNew CorporateNew CorporateNew Corporate

TotalTotalTotalTotal 6,727.36,727.36,727.36,727.3

TotalTotalTotalTotal 304.6304.6304.6304.6

Meritz F&MMeritz F&MMeritz F&MMeritz F&M

STEP 1 : DivisionSTEP 1 : DivisionSTEP 1 : DivisionSTEP 1 : Division

(expected date: 2010.12.31)(expected date: 2010.12.31)(expected date: 2010.12.31)(expected date: 2010.12.31)

STEP 2 : Investment in KindSTEP 2 : Investment in KindSTEP 2 : Investment in KindSTEP 2 : Investment in Kind

(expected date: 2011.5.18)(expected date: 2011.5.18)(expected date: 2011.5.18)(expected date: 2011.5.18)

Investment In KindInvestment In KindInvestment In KindInvestment In Kind

Meritz Meritz Meritz Meritz F&MF&MF&MF&M’’’’ssss SharesSharesSharesShares 139.6139.6139.6139.6

CashCashCashCash 32.4 32.4 32.4 32.4

SecuritiesSecuritiesSecuritiesSecurities 413.5 413.5 413.5 413.5

Meritz Securities 178.9

Meritz Asset Management 11.9

Meritz Financial

Information4.4

Ritz Partners 7.0

MBS 1.1

Meritz F&M (Existing Co) 210.2

Tangible AssetsTangible AssetsTangible AssetsTangible Assets

Intangible AssetsIntangible AssetsIntangible AssetsIntangible Assets

0.1

6.5

Financial Holdings Financial Holdings Financial Holdings Financial Holdings

TotalTotalTotalTotal 452.5452.5452.5452.5

5 months 5 months 5 months 5 months

of time of time of time of time

Required.Required.Required.Required.

(*) Fluctuation in Subsidiary’s shares are due to Business Guidance’s change in 5 months

(Unit: KRW (Unit: KRW (Unit: KRW (Unit: KRW BnBnBnBn))))

3737373737373737After divisionAfter divisionAfter divisionAfter division---- Capital Adequacy & ROECapital Adequacy & ROECapital Adequacy & ROECapital Adequacy & ROE

* From April 1st 2011, IFRS regulation will be applied: Then only the RBC is used

■■■■ ROEROEROEROE

■■■■ Capital Adequacy Capital Adequacy Capital Adequacy Capital Adequacy

Meritz F&M planMeritz F&M planMeritz F&M planMeritz F&M plan

(FY2010)(FY2010)(FY2010)(FY2010)

After Division (FY2010)After Division (FY2010)After Division (FY2010)After Division (FY2010) FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012


F&MF&MF&MF&MHolding CoHolding CoHolding CoHolding Co

F&M+F&M+F&M+F&M+

Holding CoHolding CoHolding CoHolding CoMeritz F&MMeritz F&MMeritz F&MMeritz F&M Holding CoHolding CoHolding CoHolding Co

F&M+F&M+F&M+F&M+

Holding Holding Holding Holding

CoCoCoCo

Meritz F&MMeritz F&MMeritz F&MMeritz F&MHolding Holding Holding Holding

CoCoCoCo

F&M+F&M+F&M+F&M+

Holding CoHolding CoHolding CoHolding Co

22.5% 25.2% 2.8% 18.2% 33.7% 29.2% 32.1% 30.4% 23.3% 27.6%

Nov.2010 At Division PointNov.2010 At Division PointNov.2010 At Division PointNov.2010 At Division Point March 2011March 2011March 2011March 2011 March 2012March 2012March 2012March 2012

(K(K(K(K----IFRS)IFRS)IFRS)IFRS)

March 2013March 2013March 2013March 2013

(K(K(K(K----IFRS)IFRS)IFRS)IFRS)BeforeBeforeBeforeBefore AfterAfterAfterAfter KKKK----GAAPGAAPGAAPGAAP KKKK----IFRSIFRSIFRSIFRS

Solvency RatioSolvency RatioSolvency RatioSolvency Ratio 228.4% 151.3% 155.9% 145.0% - -

RBCRBCRBCRBC 264.5% 181.7% 180.8% 167.9% 184.2% 200.0%

* Meritz F&M ROE : Adjusted ROE

■■■■ BPSBPSBPSBPS

Meritz F&M original planMeritz F&M original planMeritz F&M original planMeritz F&M original plan

(FY2010)(FY2010)(FY2010)(FY2010)

After (FY2010)After (FY2010)After (FY2010)After (FY2010) FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012


F&MF&MF&MF&MHoldingsHoldingsHoldingsHoldings

F&M + F&M + F&M + F&M +

HoldingsHoldingsHoldingsHoldingsMeritz F&MMeritz F&MMeritz F&MMeritz F&M HoldingsHoldingsHoldingsHoldings

F&M + F&M + F&M + F&M +



F&MF&MF&MF&MHoldingsHoldingsHoldingsHoldings

F&M + F&M + F&M + F&M +


7,445 8,047 7,806 7,972 10,140 9,599 9,922 12,396 11,414 12,001

■■■■ DividendsDividendsDividendsDividends

(KRW bn)Meritz F&M

(FY2010)

After (FY2010) FY2011 FY2012

F&M Holding Co

F&M +Holding

F&M Holding Co

F&M +Holding

F&M Holding Co

F&M +Holding

Total Dividends 479.6 463.6 - 463.6 632.1 209.3 841.4 674.3 261.6 935.9

Dividends per share 450 550 0 550 750 400 1,150 800 500 1,300

Adjusted Dividends 450 385 0 385 525 120 645 560 150 710

* Meritz F&M payout ratio : 30.0% / Holding Co : 20% * Dividends : Meritz F&M: : : : : 0.7 / Holding Co : 0.3

3838383838383838[Reference] Meritz F&M Financial Statement (After)[Reference] Meritz F&M Financial Statement (After)[Reference] Meritz F&M Financial Statement (After)[Reference] Meritz F&M Financial Statement (After)

■■■■ Estimated P/LEstimated P/LEstimated P/LEstimated P/L(Unit : KRW Bn) FY2010FY2010FY2010FY2010 FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012

Earned Premium Earned Premium Earned Premium Earned Premium 3,249.83,249.83,249.83,249.8 3,921.03,921.03,921.03,921.0 4,655.14,655.14,655.14,655.1

Premium Income 3,711.5 4,315.9 5,112.1

Premium paid 273.2 299.7 331.0

Net premium written 3,438.3 4,016.2 4,781.1

Unearned premium carried

forward188.5 95.2 126.0

Incurred loss 105.5 1,215.9 1,361.1

Refund of long-term insurance

policies755.9 914.1 1,125.5

Net operation Expenses 865.3 1,033.8 1,235.7

Increase in premium reserve

for long-term savings-type588.6 725.6 913.3

Net increase in policyholder’s

dividend reserve7.2 82 9.4

Increase in catastrophe

reserve15.7 189 23.3

Underwriting ProfitUnderwriting ProfitUnderwriting ProfitUnderwriting Profit (34.4)(34.4)(34.4)(34.4) 4.54.54.54.5 (13.2)(13.2)(13.2)(13.2)

Net investment incomeNet investment incomeNet investment incomeNet investment income 237.1 261.4 312.0

Total operating profitTotal operating profitTotal operating profitTotal operating profit 202.7202.7202.7202.7 265.8265.8265.8265.8 298.8298.8298.8298.8

Net-operating income (4.0) (4.0) (4.0)

Net income before income taxNet income before income taxNet income before income taxNet income before income tax 198.7198.7198.7198.7 261.8261.8261.8261.8 294.8294.8294.8294.8

Income Tax 48.1 57.6 64.9

Net profitNet profitNet profitNet profit 150.4150.4150.4150.4 204.2204.2204.2204.2 229.9229.9229.9229.9

(Unit : KRW Bn) FY2010FY2010FY2010FY2010 FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012

Operating AssetsOperating AssetsOperating AssetsOperating Assets 5,077.95,077.95,077.95,077.9 6,050.66,050.66,050.66,050.6 7,172.27,172.27,172.27,172.2

Real estate 739.3 732.9 726.8

Others 438.6 5,317.7 6,445.4

NonNonNonNon----operating Assetsoperating Assetsoperating Assetsoperating Assets 1,467.91,467.91,467.91,467.9 1,744.01,744.01,744.01,744.0 2,009.82,009.82,009.82,009.8

Accrued bonds 183.5 183.5 183.5

Security deposit 102.4 107.2 112.3

Deferred Acquisition

Cost1,043.6 1,281.5 1575.4

Others 138.4 171.8 138.6

Separate Account Separate Account Separate Account Separate Account

AssetsAssetsAssetsAssets364.8364.8364.8364.8 364.8364.8364.8364.8 364.8364.8364.8364.8

Total AssetsTotal AssetsTotal AssetsTotal Assets 6,910.66,910.66,910.66,910.6 8,159.48,159.48,159.48,159.4 9,546.79,546.79,546.79,546.7

Policy Reserve 5,505.8 6,415.5 7,552.4

Catastrophe Reserve 135.1 154.0 177.3

Other liabilities 356.9 518.0 576.5

Separate Account

Liabilities363.5 363.5 363.5

Total LiabilitiesTotal LiabilitiesTotal LiabilitiesTotal Liabilities 6,361.26,361.26,361.26,361.2 7,451.07,451.07,451.07,451.0 8,669.78,669.78,669.78,669.7

Capital stock 42.5 42.5 42.5

Retained Earnings 406.3 565.3 734.0

Other Capital 100.5 100.6 100.5

Total shareholderTotal shareholderTotal shareholderTotal shareholder’’’’s s s s

equityequityequityequity549.3549.3549.3549.3 708.4708.4708.4708.4 877.0877.0877.0877.0

■■■■ Estimated B/SEstimated B/SEstimated B/SEstimated B/S

393939393939393939393939[Appendix][Appendix][Appendix][Appendix] Meritz Financial Holding Co Financial StatementMeritz Financial Holding Co Financial StatementMeritz Financial Holding Co Financial StatementMeritz Financial Holding Co Financial Statement

■■■■ Estimated B/SEstimated B/SEstimated B/SEstimated B/S■■■■ Estimated P/LEstimated P/LEstimated P/LEstimated P/L

(unit: KRW bn) FY2010FY2010FY2010FY2010 FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012

Cash and deposit 32.4 10.0 10.0

Securities 273.8 583.1 679.4

Tangible assets 0.1 0.1 0.1

Intangible assets 6.5 5.1 3.7

Total assetsTotal assetsTotal assetsTotal assets 312.8312.8312.8312.8 598.2598.2598.2598.2 693.2693.2693.2693.2

Loan - 36.4 26.9

Corporate tax payable - 0.8 1.2

Deferred tax liabilities 10.3 10.3 10.3

Total liabilityTotal liabilityTotal liabilityTotal liability 10.310.310.310.3 47.547.547.547.5 38.438.438.438.4

Capital stocks 19.4 28.7 28.7

Capital surplus 313.8 444.1 444.1

Capital adj (50.6) (50.6) (50.6)

other comprehensive

income accumulated 11.8 11.8 11.8

Retained earnings 8.2 116.8 220.8

Total shareholderTotal shareholderTotal shareholderTotal shareholder’’’’s s s s

equityequityequityequity302.5302.5302.5302.5 550.7550.7550.7550.7 654.8654.8654.8654.8

Liability portion 32.4 10.0 10.0

Holdings portion 27.8 583.1 679.4

(unit: KRW bn) FY2010FY2010FY2010FY2010 FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012

Operating incomeOperating incomeOperating incomeOperating income 10.510.510.510.5 119.2119.2119.2119.2 136.9136.9136.9136.9

Equity-method

income9.7 112.6 129.5

Interest income 0.2 0.4 0.2

Earnings in Brand-

usage 0.7 6.2 7.2

Operating expenseOperating expenseOperating expenseOperating expense 2.32.32.32.3 9.99.99.99.9 9.99.99.99.9

Equity-method loss 0.4 1.0 -

Interest expense - 1.0 1.8

Management cost 1.9 7.9 8.2

Total operating Total operating Total operating Total operating

ProfitProfitProfitProfit8.28.28.28.2 109.4109.4109.4109.4 126.9126.9126.9126.9

Profit before taxProfit before taxProfit before taxProfit before tax 8.28.28.28.2 109.4109.4109.4109.4 126.9126.9126.9126.9

Income tax (*) - 7.7 1.2

Net incomeNet incomeNet incomeNet income 8.28.28.28.2 108.6108.6108.6108.6 125.8125.8125.8125.8

(*) Tax may not occur as dividends income may not be included in taxable income




ⅢⅢⅢⅢ. Conversion Effect. Conversion Effect. Conversion Effect. Conversion Effect

Ⅳ. Scheduled Date

414141414141414141414141Advantage in entering new biz in aspect of capital raisingAdvantage in entering new biz in aspect of capital raisingAdvantage in entering new biz in aspect of capital raisingAdvantage in entering new biz in aspect of capital raisingand investment affordability and investment affordability and investment affordability and investment affordability

Group investment affordabilityGroup investment affordabilityGroup investment affordabilityGroup investment affordability

10101010

150150150150

KRW160bnKRW160bnKRW160bnKRW160bn

130130130130

150150150150

70707070

BeforeBeforeBeforeBefore AfterAfterAfterAfter

KRW 350bnKRW 350bnKRW 350bnKRW 350bn

219%219%219%219%Holding sHolding sHolding sHolding s

Investment affordability of KRW350bn by reinstatement of Meritz Investment affordability of KRW350bn by reinstatement of Meritz Investment affordability of KRW350bn by reinstatement of Meritz Investment affordability of KRW350bn by reinstatement of Meritz FireFireFireFire’’’’s investment affordability s investment affordability s investment affordability s investment affordability

and raising capital of holding company. Advantage in aspect of and raising capital of holding company. Advantage in aspect of and raising capital of holding company. Advantage in aspect of and raising capital of holding company. Advantage in aspect of capital raising in the case of capital raising in the case of capital raising in the case of capital raising in the case of

entering into new business through joint venture. entering into new business through joint venture. entering into new business through joint venture. entering into new business through joint venture.

---- opportunity costs : KRW 8.45bn (capital raising by issuing suboopportunity costs : KRW 8.45bn (capital raising by issuing suboopportunity costs : KRW 8.45bn (capital raising by issuing suboopportunity costs : KRW 8.45bn (capital raising by issuing subordinated bonds : KRW 130bn )rdinated bonds : KRW 130bn )rdinated bonds : KRW 130bn )rdinated bonds : KRW 130bn )

En

terin

g in

to N

ew

Biz


FireFireFireFire SecuritiesSecuritiesSecuritiesSecuritiesAnnuityAnnuityAnnuityAnnuity

OnOnOnOn----line ins.line ins.line ins.line ins.

Saving BankSaving BankSaving BankSaving Bank

Domestic CreditDomestic CreditDomestic CreditDomestic CreditDomestic CreditDomestic CreditDomestic CreditDomestic Credit Domestic CreditDomestic CreditDomestic CreditDomestic Credit

J/VJ/VJ/VJ/VJ/VJ/VJ/VJ/V J/VJ/VJ/VJ/V

Direct Investment and J. VentureDirect Investment and J. VentureDirect Investment and J. VentureDirect Investment and J. Venture

- New biz

※ interest for issuing subordinated bonds : 6.5%


FireFireFireFire

424242424242424242424242Opportunity to expand new biz according to the ease regulation Opportunity to expand new biz according to the ease regulation Opportunity to expand new biz according to the ease regulation Opportunity to expand new biz according to the ease regulation

for Ins. Holdings for Ins. Holdings for Ins. Holdings for Ins. Holdings

As Ins. Holdings allowed to have nonAs Ins. Holdings allowed to have nonAs Ins. Holdings allowed to have nonAs Ins. Holdings allowed to have non----financial company , there are opportunities financial company , there are opportunities financial company , there are opportunities financial company , there are opportunities to enter into nonto enter into nonto enter into nonto enter into non----financial business for new business or to establish nonfinancial business for new business or to establish nonfinancial business for new business or to establish nonfinancial business for new business or to establish non----financial financial financial financial company for providing customer services in Group company for providing customer services in Group company for providing customer services in Group company for providing customer services in Group

Insurance HoldingsInsurance HoldingsInsurance HoldingsInsurance Holdings

Insurance CompanyInsurance CompanyInsurance CompanyInsurance Company

Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C.

Financial companyFinancial companyFinancial companyFinancial company Non financial companyNon financial companyNon financial companyNon financial company

(O)(O)(O)(O) (X)(X)(X)(X)

(O)(O)(O)(O)(O)(O)(O)(O)(O)(O)(O)(O)

(O)(O)(O)(O) (O)(O)(O)(O) (O)(O)(O)(O) (O)(O)(O)(O) (O)(O)(O)(O)

(O)(O)(O)(O)(O)(O)(O)(O) (O)(O)(O)(O)

(X)(X)(X)(X) (X)(X)(X)(X) (X)(X)(X)(X)

(X)(X)(X)(X)

30%(50%)

30%(50%)

100%

30%(50%) 20%(40%)

100% 100% 100% 100%

20%(40%)

20%(40%)

Exc. Bank, other ins.

Exc. Bank, ins.

savings, Investment

com., securities

Incl. relevant

company with

financing business

Exc. approved company

by insurance Act.

SubsidiarySubsidiarySubsidiarySubsidiary

GranddaughterGranddaughterGranddaughterGranddaughter

Great GrandGreat GrandGreat GrandGreat Grand

daughterdaughterdaughterdaughter

※※※※ %%%%----listed company, (%)listed company, (%)listed company, (%)listed company, (%)----unlisted company unlisted company unlisted company unlisted company

minimum requirement for retention sharesminimum requirement for retention sharesminimum requirement for retention sharesminimum requirement for retention shares

(particular rules for ins. Holdings(particular rules for ins. Holdings(particular rules for ins. Holdings(particular rules for ins. Holdings’’’’ dominance on subsidiary dominance on subsidiary dominance on subsidiary dominance on subsidiary comapnycomapnycomapnycomapny

(the regulation for Financial holding company (the regulation for Financial holding company (the regulation for Financial holding company (the regulation for Financial holding company §§§§25))25))25))25))

30%(50%)

Exc. Bank, other ins. Exc. Bank, ins.

savings, Investment

com., securities

Incl. relevant

company with

financing business

Incl. relevant

company with

financing business

Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C. Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C.

Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C. Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C. Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C. Financial C.Financial C.Financial C.Financial C. N.FinancialN.FinancialN.FinancialN.Financial C.C.C.C.

434343434343434343434343Estimated Synergy for FY2010 ~ FY2012 Estimated Synergy for FY2010 ~ FY2012 Estimated Synergy for FY2010 ~ FY2012 Estimated Synergy for FY2010 ~ FY2012

SynergySynergySynergySynergy AspectAspectAspectAspect FY2010FY2010FY2010FY2010 FY2011FY2011FY2011FY2011 FY2012FY2012FY2012FY2012 TotalTotalTotalTotal

ProfitProfitProfitProfit

Customer

information

share

0.6 1.3 1.6 3.5

Marketing 2.5 7.6 9.2 19.3

CostCostCostCostResource

redundancy- 1.4 1.7 3.1

소소소소 계계계계 3.13.13.13.1 10.310.310.310.3 12.512.512.512.5 25.925.925.925.9

(Unit : KRW bn)

Synergy by companySynergy by companySynergy by companySynergy by company

SecuritiesSecuritiesSecuritiesSecurities(11.1, 42.8%)(11.1, 42.8%)(11.1, 42.8%)(11.1, 42.8%)FireFireFireFire

(11.7, 45.2%)(11.7, 45.2%)(11.7, 45.2%)(11.7, 45.2%)

Common (3.1,12.0%)Common (3.1,12.0%)Common (3.1,12.0%)Common (3.1,12.0%)

Generating synergy by group joint marketing, increase of cross sGenerating synergy by group joint marketing, increase of cross sGenerating synergy by group joint marketing, increase of cross sGenerating synergy by group joint marketing, increase of cross sales and customer information share ales and customer information share ales and customer information share ales and customer information share

after holding company. Particularly, Fire and Securities are exafter holding company. Particularly, Fire and Securities are exafter holding company. Particularly, Fire and Securities are exafter holding company. Particularly, Fire and Securities are expected to achieve synergy in profit and pected to achieve synergy in profit and pected to achieve synergy in profit and pected to achieve synergy in profit and

cost savings cost savings cost savings cost savings

(Unit : KRW bn)





ⅣⅣⅣⅣ.... Scheduled DateScheduled DateScheduled DateScheduled Date

4545454545454545

Main Task Year/MonMain Task Year/MonMain Task Year/MonMain Task Year/Monthththth2010201020102010 2011201120112011

1111 2222 3333 4444 5555 6666 7777 8888 9999 10101010 11111111 12121212 1111 2222 3333 4444 5555 6666

1111stststst StepStepStepStep

May~AugMay~AugMay~AugMay~Aug

1. Preparation

2. Preparation for division

3. Board resolution of financial holding company

4. Financial holding’s preliminary applicationand approval

2222ndndndnd StepStepStepStep

Oct~MarOct~MarOct~MarOct~Mar

5. Board resolution for division

6. Shareholders’ meeting for division

7. Apply and approval of financial holdings

8. Division

3333rdrdrdrd StepStepStepStep9. Request re-listing of holding company

and IPO

4444thththth StepStepStepStep

May~JuneMay~JuneMay~JuneMay~June

10. Board resolution for tender offer and new shares issued

11. Proceed tender offer

(2010. 5. 19)(2010. 5. 19)(2010. 5. 19)(2010. 5. 19)

Holding companyHolding companyHolding companyHolding company

※ Scheduled may vary depending on application approval time

Schedule dateSchedule dateSchedule dateSchedule date

(2010. 8. 5)(2010. 8. 5)(2010. 8. 5)(2010. 8. 5)

46464646



1111





Appendix Appendix Appendix Appendix Appendix Appendix Appendix Appendix (1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)(1Q.FY2010 Financial Results)※※※※

47474747Appendix : SalesAppendix : SalesAppendix : SalesAppendix : Sales

* M/S : Accumulated Preliminary Figures as of March 2010

21.3%21.3%21.3%21.3%

1806.3%1806.3%1806.3%1806.3%

31.0%31.0%31.0%31.0%

----13.1%13.1%13.1%13.1%

29.2%29.2%29.2%29.2%

----7.2%7.2%7.2%7.2%

0.2%0.2%0.2%0.2%

G/RG/RG/RG/R

100.0%100.0%100.0%100.0%

3.2%3.2%3.2%3.2%

68.4%68.4%68.4%68.4%

1.9%1.9%1.9%1.9%

70.3%70.3%70.3%70.3%

18.0%18.0%18.0%18.0%

8.5%8.5%8.5%8.5%

MixMixMixMix

947.4947.4947.4947.4

30.530.530.530.5

647.7647.7647.7647.7

18.518.518.518.5

666.2666.2666.2666.2

170.2170.2170.2170.2

80.580.580.580.5

1Q.FY101Q.FY101Q.FY101Q.FY10

16.2%2,534.014.3%2,896.413.5%100.0%3,288.0Total

-30.4%7.6-26.5%5.6298.2%0.7%22.3Lump-sum

payment

26.6%1,482.719.3%1,768.622.3%65.8%2,163.1Recurring

18.7%62.520.8%75.517.7%2.7%88.9New

26.2%1,545.219.3%1,844.122.1%68.5%2,252.0Long-term

2.1%685.56.0%726.7-4.8%21.0%691.8Auto

8.0%295.88.2%320.00.6%9.8%321.9Commercial

G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RMixMixMixMix

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008FY2009FY2009FY2009FY2009(KRW (KRW (KRW (KRW bnbnbnbn))))

----0.1%p0.1%p0.1%p0.1%p

13.7%p13.7%p13.7%p13.7%p

----0.1%p0.1%p0.1%p0.1%p

----0.6%p0.6%p0.6%p0.6%p

----0.1%p0.1%p0.1%p0.1%p

----0.9%p0.9%p0.9%p0.9%p

----0.4%p0.4%p0.4%p0.4%p

G/RG/RG/RG/R


8.2%8.2%8.2%8.2%

16.4%16.4%16.4%16.4%

9.1%9.1%9.1%9.1%

9.0%9.0%9.0%9.0%

9.1%9.1%9.1%9.1%

5.8%5.8%5.8%5.8%

7.2%7.2%7.2%7.2%

0.9%p9.8%-0.4%p9.4%----0.5%p0.5%p0.5%p0.5%p8.9%8.9%8.9%8.9%New

0.1%p8.1%0.2%p8.3%----0.1%p0.1%p0.1%p0.1%p8.2%8.2%8.2%8.2%Total

-1.3%p5.8%0.2%p6.0%3.1%p3.1%p3.1%p3.1%p9.1%9.1%9.1%9.1%Lump-sum

payment

0.4%p9.0%0.2%p9.2%----0.1%p0.1%p0.1%p0.1%p9.1%9.1%9.1%9.1%Recurring

0.4%p9.0%0.2%p9.2%----0.1%p0.1%p0.1%p0.1%p9.1%9.1%9.1%9.1%Long-term

-0.6%p6.4%0.2%p6.6%----0.4%p0.4%p0.4%p0.4%p6.2%6.2%6.2%6.2%Auto

0.2%p8.7%-0.3%p8.4%----0.6%p0.6%p0.6%p0.6%p7.8%7.8%7.8%7.8%Commercial

G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008FY2009FY2009FY2009FY2009M / SM / SM / SM / S

48484848Appendix : Loss RatioAppendix : Loss RatioAppendix : Loss RatioAppendix : Loss Ratio

4.0%p4.0%p4.0%p4.0%p

19.9 %19.9 %19.9 %19.9 %

26.2 %26.2 %26.2 %26.2 %

4.3 %p4.3 %p4.3 %p4.3 %p

4.5 %p4.5 %p4.5 %p4.5 %p

4.3%p4.3%p4.3%p4.3%p

30.2 %30.2 %30.2 %30.2 %

37.6 %37.6 %37.6 %37.6 %

2.3%p2.3%p2.3%p2.3%p

----5.6 %5.6 %5.6 %5.6 %

----2.5 %2.5 %2.5 %2.5 %

----6.7%p6.7%p6.7%p6.7%p

----2.7 %2.7 %2.7 %2.7 %

----13.4%13.4%13.4%13.4%

G/RG/RG/RG/R

78.2%78.2%78.2%78.2%

850.6850.6850.6850.6

664.8664.8664.8664.8

80.5%80.5%80.5%80.5%

87.9%87.9%87.9%87.9%

80.5%80.5%80.5%80.5%

655.8655.8655.8655.8

528.2528.2528.2528.2

73.4%73.4%73.4%73.4%

162.6162.6162.6162.6

119.3119.3119.3119.3

53.8%53.8%53.8%53.8%

32.232.232.232.2

17.417.417.417.4

1Q.20101Q.20101Q.20101Q.2010

-2.2%p78.9%3.6%p82.5%-7.1%p75.4%Loss ratio

19.6%2,266.915.1%2,609.816.7%3,046.4Earned prem

16.3%1,788.420.3%2,152.96.7%2,296.8Losses

Total

3.0%p72.8%2.5%p75.3%2.2%p77.5%LT risk L/R (w/o IBNR)

-1.1%p77.1%3.5%p80.6%3.6%p84.2%LT risk L/R (w/ IBNR)

-2.3%p82.6%-3.8%p78.8%-1.3%p77.5%Loss ratio

25.8%1,500.619.7%1,795.524.1%2,228.1Earned prem

22.2%1,238.014.2%1,414.822.1%1,727.2Losses

Long

term

-4.3%p74.2%-4.3%p69.9%5.6%p75.5%Loss ratio

7.5%641.45.0%673.32.1%687.2Earned prem

1.6%475.7-1.1%470.310.4%519.0Losses

Auto

6.8%p

-

59.8%

-

131.1%p

-

189.9%

(61.1%)

-151.3%p

(-1.8%p)

38.6%

(59.3%)

Loss ratio

( w/o RG)

17.4%124.911.6%141.0-7.0%131.1Earned prem

32.5%74.8258.0%267.8-81.1%50.6Losses

Comm

-ercial



49494949Appendix : Expense RatioAppendix : Expense RatioAppendix : Expense RatioAppendix : Expense Ratio

Note) 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

-0.4%p23.9%2.3%p26.2%----1.5%p1.5%p1.5%p1.5%p24.7%24.7%24.7%24.7%----5.2%p5.2%p5.2%p5.2%p21.8%21.8%21.8%21.8%Expense Ratio

-0.8%p12.5%-0.6%p11.9%----0.8%p0.8%p0.8%p0.8%p11.1%11.1%11.1%11.1%0.7%0.7%0.7%0.7%10.5%10.5%10.5%10.5%Admin Expense

Ratio

----1.4%p1.4%p1.4%p1.4%p

----6.1%6.1%6.1%6.1%

20.0%20.0%20.0%20.0%

----3.3%3.3%3.3%3.3%

----18.1%18.1%18.1%18.1%

26.2%26.2%26.2%26.2%

----22.2%22.2%22.2%22.2%

15.4%15.4%15.4%15.4%

42.9%42.9%42.9%42.9%

----4.3%4.3%4.3%4.3%

G/RG/RG/RG/R

1QFY101QFY101QFY101QFY10

99.9%99.9%99.9%99.9%

11.2%11.2%11.2%11.2%

850.6850.6850.6850.6

185.3185.3185.3185.3

11.311.311.311.3

8.28.28.28.2

102.8102.8102.8102.8

42.042.042.042.0

43.643.643.643.6

196.6196.6196.6196.6

-2.6%p102.8%5.9%p108.7%----8.6%p8.6%p8.6%p8.6%p100.1%100.1%100.1%100.1%Combined Ratio

0.4%p11.4%2.9%p14.3%----0.7%p0.7%p0.7%p0.7%p13.6%13.6%13.6%13.6%Sales Expense Ratio

19.6%2,266.915.1%2,609.816.7%16.7%16.7%16.7%3,046.43,046.43,046.43,046.4Gross premium

earned

17.5%542.126.1%683.510.1%10.1%10.1%10.1%752.4752.4752.4752.4Net expenses

5.0%51.63.1%53.2----10.7%10.7%10.7%10.7%47.547.547.547.5Expenses recovered

21.8%23.612.7%26.615.0%15.0%15.0%15.0%30.630.630.630.6Other expenses

19.9%296.638.7%411.49.7%9.7%9.7%9.7%451.3451.3451.3451.3Sales-related

12.5%125.514.3%143.56.4%6.4%6.4%6.4%152.7152.7152.7152.7Administrative

12.0%147.94.9%155.26.5%6.5%6.5%6.5%165.3165.3165.3165.3Wages & benefits

16.3%593.724.1%736.78.6%8.6%8.6%8.6%799.9799.9799.9799.9Expenses



50505050Appendix: LongAppendix: LongAppendix: LongAppendix: Long----term product portfolioterm product portfolioterm product portfolioterm product portfolio

* Including lump-sum payment, 1Q.FY2010 Persistency: 6 months Average

100.0%100.0%100.0%100.0%

17.2%17.2%17.2%17.2%

----

3.2%3.2%3.2%3.2%

1.5%1.5%1.5%1.5%

4.7%4.7%4.7%4.7%

6.3%6.3%6.3%6.3%

13.0%13.0%13.0%13.0%

54.1%54.1%54.1%54.1%

79.7%79.7%79.7%79.7%

MixMixMixMix

666.2666.2666.2666.2

114.4114.4114.4114.4

----

21.121.121.121.1

10.110.110.110.1

31.531.531.531.5

42.142.142.142.1

86.686.686.686.6

360.5360.5360.5360.5

530.7530.7530.7530.7


100.0%1,552.8100.0%1,849.6100.0%2,274.1Total

15.4%239.013.8%2,56.012.1%2,74.5Savings

0.0%0.40.0%0.3--Corporate pension

3.9%60.93.6%66.33.4%77.5Personal annuities

2.8%44.02.5%47.21.8%41.9Bundle

12.6%196.29.0%167.16.0%136.5Disease

10.5%163.38.7%161.66.9%157.6Property

17.9%278.015.8%291.913.9%316.1Drivers

36.8%571.046.5%859.255.8%1,270.0Accident

80.7%1,252.582.6%1,527.084.5%1,922.1Protection-type

mixmixmixmixFY2007FY2007FY2007FY2007mixmixmixmixFY2008 FY2008 FY2008 FY2008 mixmixmixmixFY2009 FY2009 FY2009 FY2009 (KRW (KRW (KRW (KRW bnbnbnbn))))

----

----

56.4%56.4%56.4%56.4%

43.6%43.6%43.6%43.6%

57.8%57.8%57.8%57.8%

82.1%82.1%82.1%82.1%

375.7375.7375.7375.7

290.5290.5290.5290.5

0.7%p64.0%-1.2%p62.8%-5.3%p57.5%25th month persistency

2.8%p79.2%-5.6%p73.6%6.0%p79.6%13th month persistency

62.7%973.059.7%1,103.755.5%1,262.1Savings premiums

37.3%579.840.3%745.944.5%1,012.0Risk+loading

premiums

51515151Appendix : LongAppendix : LongAppendix : LongAppendix : Long----term coverage portfolioterm coverage portfolioterm coverage portfolioterm coverage portfolio

* 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

100.0%

17.6%

3.9%

8.0%

12.8%

35.4%

60.1%

22.4%

MixMixMixMix

79.1%

56.5%

70.6%

90.4%

101.1%

108.7%

102.2%

34.6%

L/RL/RL/RL/R

FY2009FY2009FY2009FY20091Q.FY101Q.FY101Q.FY101Q.FY10 FY2008FY2008FY2008FY2008 FY2007FY2007FY2007FY2007

L/RL/RL/RL/R MixMixMixMix L/RL/RL/RL/R MixMixMixMix L/RL/RL/RL/R MixMixMixMix

Death coverage 38.5%38.5%38.5%38.5% 22.1 %22.1 %22.1 %22.1 % 33.7% 24.5% 40.6% 26.6%

Life benefits 108.4 %108.4 %108.4 %108.4 % 59.8 %59.8 %59.8 %59.8 % 101.6% 57.7% 97.2% 54.7%

Medical

treatment114.2 %114.2 %114.2 %114.2 % 35.4 %35.4 %35.4 %35.4 % 107.1% 31.7% 97.8% 29.2%

Daily allowance 111.9 %111.9 %111.9 %111.9 % 12.3 %12.3 %12.3 %12.3 % 94.1% 13.5% 91.2% 12.9%

Disease 99.7 %99.7 %99.7 %99.7 % 8.2 %8.2 %8.2 %8.2 % 98.6% 8.5% 103.4% 8.7%

Other 64.0 %64.0 %64.0 %64.0 % 3.9 %3.9 %3.9 %3.9 % 90.1% 4.0% 98.5% 3.8%

Property/other 54.6 %54.6 %54.6 %54.6 % 18.1 %18.1 %18.1 %18.1 % 52.3% 17.8% 52.1% 18.7%

Total 83.2 %83.2 %83.2 %83.2 % 100.0 %100.0 %100.0 %100.0 % 76.2% 100.0% 73.7% 100.0%

52525252Appendix : Appendix : Appendix : Appendix : LongLongLongLong----term Funding Cost & term Funding Cost & term Funding Cost & term Funding Cost & ALMALMALMALM

1.5%p

5.8%

84.7%

15.3%

4.16%

5.36%

4.34%

FY2009FY2009FY2009FY2009

4.45%4.23%4.11%4.11%4.11%4.11%Variable

5.95%5.63%5.32%5.32%5.32%5.32%Fixed

23.4%19.3%14.2%14.2%14.2%14.2%Fixed mix

0.8%p-0.9%p1.0%p1.0%p1.0%p1.0%pSpread

5.6%3.6%5.3%5.3%5.3%5.3%Investment yield

76.6%80.7%85.8%85.8%85.8%85.8%Variable mix

4.81%4.50%4.28%4.28%4.28%4.28%Funding Cost

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY20081Q.FY101Q.FY101Q.FY101Q.FY10LT Funding CostLT Funding CostLT Funding CostLT Funding Cost

81.0%81.0%81.0%81.0%

4.844.844.844.84

5.605.605.605.60

3.923.923.923.92

FY2009FY2009FY2009FY2009

86.5%68.5%80.1 %80.1 %80.1 %80.1 %Matching ratio

3.784.825.125.125.125.12Liability Duration

4.494.705.825.825.825.82Bond Duration

3.273.304.10 4.10 4.10 4.10 Asset Duration

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY20081Q.FY101Q.FY101Q.FY101Q.FY10ALMALMALMALM

※※※※ Duration based on RBC: March 2010Duration based on RBC: March 2010Duration based on RBC: March 2010Duration based on RBC: March 2010 Asset: 4.34, Liability: 4.08, June 2010 Asset: 4.51, LiabilityAsset: 4.34, Liability: 4.08, June 2010 Asset: 4.51, LiabilityAsset: 4.34, Liability: 4.08, June 2010 Asset: 4.51, LiabilityAsset: 4.34, Liability: 4.08, June 2010 Asset: 4.51, Liability: 4.09 : 4.09 : 4.09 : 4.09

53535353Appendix: Investment PortfolioAppendix: Investment PortfolioAppendix: Investment PortfolioAppendix: Investment Portfolio

Note) Fixed income = deposit, AFS bond, overseas bond, loan / performance based = trading bond, alternative investment /stock = outsourced investment, trading stock, stock-type AI / Other = Property management fees

3.0%

-18.9%

3.7%

2.2%

6.5%

4.9%

Yield

12.9

-7.4

12.7

3.8

185.7

207.6

Profit

FY2009FY2009FY2009FY2009

YieldProfitYieldProfitG/RG/RG/RG/RYieldYieldYieldYieldG/RG/RG/RG/RProfitProfitProfitProfit

2.8% 5.6%-0.4%p3.9%

3.2%

6.1%

9.4%

6.5%

5.2%

1.0%

-17.4%

0.2%

-1.7%

4.9%

0.9%p

-12.3%p

-3.9%p

6.6%p

-0.4%p

-17.6%

-

-48.3%

566.7%

6.8%

14.65.42.6%2.8Equity-

method & real estate

4.3-15.5-21.3%-1.8Other

24.40.73.2%3.1Stock-type

25.0-6.38.0%4.0Performanc

e-based

110.8121.85.9%47.4Fixed

Income

55.5 179.2106.24.7%Investment Investment Investment Investment

AsstsAsstsAsstsAssts

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY20081Q.FY101Q.FY101Q.FY101Q.FY10(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

54545454Appendix : Investment Assets PortfolioAppendix : Investment Assets PortfolioAppendix : Investment Assets PortfolioAppendix : Investment Assets Portfolio

-

100.0%

14.4%

17.1%

1.3%

9.6%

11.4%

34.5%

4.1%

2.7%

0.0%

2.7%

4.8%

MixMixMixMix

4.9%

4,627.6

667.3

790.2

62.1

446.1

525.4

1,597.6

190.2

126.3

0

126.3

222.2

FY2009FY2009FY2009FY2009

G/RG/RG/RG/R G/RG/RG/RG/R

-5.6%-2.8%------------0.4%p0.4%p0.4%p0.4%p4.7%4.7%4.7%4.7%Investment yield

100.0%3,624.0100.0%4,138.3----100.0%100.0%100.0%100.0%13.2 %13.2 %13.2 %13.2 %4,823.84,823.84,823.84,823.8Investment assets

11.1%402.316.0%662.4----1.6%p1.6%p1.6%p1.6%p13.9 %13.9 %13.9 %13.9 %1.0 %1.0 %1.0 %1.0 %669.0669.0669.0669.0Real estate

11.8%426.813.7%568.81.9%p1.9%p1.9%p1.9%p16.5 %16.5 %16.5 %16.5 %26.5 %26.5 %26.5 %26.5 %798.3798.3798.3798.3Loans

1.7%60.72.2%89.80.8%p0.8%p0.8%p0.8%p2.6 %2.6 %2.6 %2.6 %35.7 %35.7 %35.7 %35.7 %123.9123.9123.9123.9Other

7.6%276.110.3%427.4----1.0%p1.0%p1.0%p1.0%p10.4 %10.4 %10.4 %10.4 %13.7 %13.7 %13.7 %13.7 %499.6499.6499.6499.6Overseas securities

14.3%518.212.5%516.6----1.8%p1.8%p1.8%p1.8%p9.9 %9.9 %9.9 %9.9 %----5.6 %5.6 %5.6 %5.6 %477.0477.0477.0477.0Investment funds

41.7%1,510.232.6%1.349.32.3%p2.3%p2.3%p2.3%p34.3 %34.3 %34.3 %34.3 %23.8 %23.8 %23.8 %23.8 %1,653.91,653.91,653.91,653.9Domestic bonds

3.6%132.13.5%143.30.4%p0.4%p0.4%p0.4%p3.1 %3.1 %3.1 %3.1 %28.6 %28.6 %28.6 %28.6 %192.5192.5192.5192.5Equity-method

stakes

2.7%96.13.4%142.40.7%p0.7%p0.7%p0.7%p40.6 %40.6 %40.6 %40.6 %17.4 %17.4 %17.4 %17.4 %2,557.22,557.22,557.22,557.2Available-for-

sale

0.0%0.50.0%0----0.2%p0.2%p0.2%p0.2%p2.4 %2.4 %2.4 %2.4 %5.7 %5.7 %5.7 %5.7 %152.0152.0152.0152.0Trading

2.7%96.63.4%142.4----3.1 %3.1 %3.1 %3.1 %3.1%3.1%3.1%3.1%149.3149.3149.3149.3Equities

5.5%201.05.8%238.3----1.3%p1.3%p1.3%p1.3%p5.4 %5.4 %5.4 %5.4 %----13.2%13.2%13.2%13.2%260.5260.5260.5260.5Cash & equivalents

MixMixMixMixMixMixMixMixMixMixMixMix

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY20081Q.FY101Q.FY101Q.FY101Q.FY10(KRW (KRW (KRW (KRW bnbnbnbn))))

55555555Appendix: Loan Appendix: Loan Appendix: Loan Appendix: Loan QuailtyQuailtyQuailtyQuailty

Note1) FSB Standard (including retirement accounts, 30 days Overdue principal and

interest, Delinquency on Policyholder loan

Note2) Including private property 25.5 W bn in commercial mortgage loans

Note3) JID PF loan 10.0 bn (Kumho Industry), Sungwon PF loan 3.8 bn

Note1) Corporate Credit : Including Unsecured private placement bonds

Note 2) Mortgage Companies : Private Equity-backed bonds

Note 3) Corporate PF : Classify as PF ABCP loan as of Dec 2009

798.2798.2798.2798.2

1.21.21.21.2

16.916.916.916.9

816.3816.3816.3816.3

146.1146.1146.1146.1

52.852.852.852.8

69.069.069.069.0

45.245.245.245.2

313.1313.1313.1313.1

277.7277.7277.7277.7

225.5225.5225.5225.5

0000

503.2503.2503.2503.2


568.7

0.2

8.3

577.2

54.3

0

55.0

77.9

1,87.2

260.7

129.1

0.2

390.0

FY2008

790.2790.2790.2790.2

1.11.11.11.1

13.313.313.313.3

804.6804.6804.6804.6

157.9157.9157.9157.9

50.850.850.850.8

44.644.644.644.6

47.547.547.547.5

300.8300.8300.8300.8

275.1275.1275.1275.1

228.6228.6228.6228.6

0.10.10.10.1

503.8503.8503.8503.8

FY2009FY2009FY2009FY2009

63.2Secured

8.7Bad debt

Allowance

435.4Total

0

Additional

deferred loan

income

426.7

72.4

0

1.1

136.7

219.9

76.5

2.3

298.7

FY2007

PF

SOC

related

Credit

Policyhol

der

Secured

Credit

Net Income

Corporate

loan

Retail loan

(KRW (KRW (KRW (KRW bnbnbnbn))))

NoteNoteNoteNote 2)2)2)2)



7.02%7.02%7.02%7.02%

0.95%0.95%0.95%0.95%

3.31%3.31%3.31%3.31%

63.3%63.3%63.3%63.3%

16.916.916.916.9

3.27%3.27%3.27%3.27%

816.3816.3816.3816.3

6.26.26.26.2

1.81.81.81.8

18.718.718.718.7

5.75.75.75.7

783.9783.9783.9783.9


2.5%

1.7%

2.0%

74.9%

8.3

1.92%

577.2

1.8

0

9.3

0.6

565.5

FY2008

4.67%4.67%4.67%4.67%

1.02%1.02%1.02%1.02%

2.45%2.45%2.45%2.45%

144.6%144.6%144.6%144.6%

13.313.313.313.3

1.14%1.14%1.14%1.14%

804.6804.6804.6804.6

2.02.02.02.0

3.83.83.83.8

3.43.43.43.4

11.211.211.211.2

784.2784.2784.2784.2

FY2009FY2009FY2009FY2009

3.2%

4.8%

4.3%

48.3%

8.7

4.13%

435.4

0.9

1.4

15.7

2.1

415.3

FY2007

Substandard

Corporate

Retail

Coverage ratio(Provisions

/substandard & below)

Total

Delinquency ratio

Doubtful

Provisions

Estimated loss

Precautionary

NPL ratio

Normal

(KRW (KRW (KRW (KRW bnbnbnbn))))




Normal‘14-08-2414.4Samsung C&T CorporationChun-ho Dong

Complex(Office&apartement)S.L D&C, Ltd

Choung-guComplex(Office&apartement)

Song-do A3 block apartment

Il-san Sik-sa district PF ABL

Gimpo apartment

Chong-na Complex (Office&apartement) PF ABL

Suwon Shin Dong urban development project

Posco E&C office building

Choung-gu office building

Wonhyo-roComplex(Office&apartement)

Jeju ICC Anchor resort&hotel

Gimpo apartment

Yong-in Complex(Office&apartement)

Yongpyong resort hotel

Site/Project

Normal‘12-10-1610.0POSCO EngineeringPSIB

Normal‘11-04-0510.0Ssangyong EngineeringSIWOOPND

Normal‘12-04-0910.0Prime Construction, Dongah Construction

N-mode House, Co.

27% is reserved in bad debt allowance note2)Pre-cautionary

‘10-03-257.4Kumho IndustrialJeju Investment & Development, Co.

20% is reserved in bad debt allowanceNormal‘11-02-2710.0Shindongah, NamKwang,

ChongguSaenal, Co.

100% is reserved in bad debt allowancenote1)Doubtful‘10-10-193.7SungWon CorporationSol Yeon C&D

2 plot of land is put up for auctionSub-

standard‘09-02-080.1Hyundai RNC ConstructionNano D&C

Normal

Normal

Normal

Normal

Normal

Normal

NPL Remark

146.1146.1146.1146.1Total

‘10-09-172.0Daelim IndustrialHwang-hak Dong Joypia 1,

Ltd

‘13-11-3010.0Lotte Engineering &

ConstructionSong-do Global Complex

Development, Co.

‘11-05-1210.0GS Engineering &

ConstructionNew Star PF 1, Ltd

‘12-05-268.5Samsung C&T CorporationYang Woo Construction

‘13-06-1520.0POSCO EngineeringC-First, Ltd

‘12-09-2830.0Samsung C&T CorporationShin Dong D&I Co.

MaturityLoan

amountConstructorDebtor

Appendix : PF loan details ( As of June 2010)Appendix : PF loan details ( As of June 2010)Appendix : PF loan details ( As of June 2010)Appendix : PF loan details ( As of June 2010)

Note1) Sungwon corp applied for court (March’10.) Note2) Geumho Industry applied for workout (Dec 09)

57575757Appendix : P & LAppendix : P & LAppendix : P & LAppendix : P & L

4.6 %4.6 %4.6 %4.6 %

12.7 %12.7 %12.7 %12.7 %

6.4 %6.4 %6.4 %6.4 %

164.5 %164.5 %164.5 %164.5 %

3.2 %3.2 %3.2 %3.2 %

----

----24.3 %24.3 %24.3 %24.3 %

181.8 %181.8 %181.8 %181.8 %

85.8 %85.8 %85.8 %85.8 %

----3.3 %3.3 %3.3 %3.3 %

3.5 %3.5 %3.5 %3.5 %

26.3 %26.3 %26.3 %26.3 %

18.9 %18.9 %18.9 %18.9 %

17.6%17.6%17.6%17.6%

20.0%20.0%20.0%20.0%

G/RG/RG/RG/R

41.241.241.241.2

13.313.313.313.3

54.554.554.554.5

4.44.44.44.4

55.555.555.555.5

----2.72.72.72.7

3.23.23.23.2

3.13.13.13.1

238.6238.6238.6238.6

185.3185.3185.3185.3

158.6158.6158.6158.6

664.8664.8664.8664.8

848.2848.2848.2848.2

916.9916.9916.9916.9

850.6850.6850.6850.6

1Q. FY101Q. FY101Q. FY101Q. FY10

-

-

-

-

95.5%

-

-

182.1%

37.2%

10.1%

-1.0%

-2.7%

14.8%

13.5%

16.7%

G/RG/RG/RG/R

140.4

46.8

187.2

-4.0

207.6

-16.4

13.6

7.9

638.9

752.4

656.8

993.2

3,020.9

3,288.0

3,046.4

98.7%71.1--58.8Net income

254.5%29.8--19.7Incurred tax expenses

128.3%100.9--78.5Ordinary income

--1.1-1.8Non-operating income

12.5%179.2-40.8%106.2Investment income

--77.2--186.4Underwriting income

16.1%13.6--40.2Incr in catastrophe reserves

-22.7%6.0-53.6%2.8Net incr in policyholders’

dividend reserves

-5.3%441.75.4%465.6Incr in premium reserves

for LT savings

17.5%542.126.1%683.5Net operating expenses

52.1%591.212.2%663.5Refund of LT insurance polices

10.9%749.636.2%1,021.0Incurred losses

17.9%2,291.014.9%2,631.4Net premium written

16.2%2,534.014.3%2,896.4Gross premium written

19.6%2,266.915.1%2,609.8Net premium earned

G/RG/RG/RG/RG/RG/RG/RG/R


58585858Appendix : B/SAppendix : B/SAppendix : B/SAppendix : B/S

16.6%16.6%16.6%16.6%

31.9%31.9%31.9%31.9%

27.2%p27.2%p27.2%p27.2%p

0.4%0.4%0.4%0.4%

56.0%56.0%56.0%56.0%

0.2%0.2%0.2%0.2%

0.0%0.0%0.0%0.0%

35.6%35.6%35.6%35.6%

10.4%10.4%10.4%10.4%

11.511.511.511.5

13.913.913.913.9

13.513.513.513.5

23.423.423.423.4

13.213.213.213.2

15.5%15.5%15.5%15.5%

G/RG/RG/RG/R

389.8389.8389.8389.8

912.8912.8912.8912.8

234.2%234.2%234.2%234.2%

----117.1117.1117.1117.1

307.0307.0307.0307.0

236.2236.2236.2236.2

61.961.961.961.9

679.6679.6679.6679.6

578.1578.1578.1578.1

122.6122.6122.6122.6

4,924.64,924.64,924.64,924.6

5,625.45,625.45,625.45,625.4

1,481.21,481.21,481.21,481.2

4,823.84,823.84,823.84,823.8

6,305.06,305.06,305.06,305.0

1Q.FY20101Q.FY20101Q.FY20101Q.FY2010

12.6%282.114.6%323.316.1%375.3Solvency guidance

55.8%665.1-7.7%613.941.1%866.4Solvency amount

65.4%p235.8%-45.9%p189.9%41.0%p230.9%Solvency margin ratio

--78.7--28.1--116.6Capital adjustment

24.8%235.7-33.2%157.489.2%297.8Retained earnings

718.1%237.2-1.2%234.40.6%235.8Capital surplus

44.3%61.90.0%61.90.0%61.9Capital stock

75.4%456.1-6.7%425.659.8%680.0Total shareholders’

equity

30.5%461.316.5%537.40.2%538.9Other liabilities

10.2%146.0-27.5%105.812.9%119.4Catastrophe

reserves

16.6%3,501.119.9%4,196.611.9%4,697.0Policy reserves

17.8%4,108.417.8%4,839.810.6%5,355.0Total liabilities

25.8%940.519.8%1,127.124.9%1,407.4Non-invested assets

20.8%3,624.014.2%4,138.311.8%4,627.6Investment assets

21.8%4,564.515.4%5,265.514.6%6,035.0Total assets



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

Investor Relations Contacts:Investor Relations Contacts:Investor Relations Contacts:Investor Relations Contacts:

Jae-Hyoung Kim (General Manager)822-3786-1150, [email protected]

Pil- Soo Kim (Manager)

822-3786-1155, [email protected]

Sunny Hong (Associate)

822-3786-1157, skhong @meritzfire.com

http://ir.meritzfire.com

meritzfire & marine 1q.fy2010 financial resultsir.meritzfire.com/ir/upload/fy2010...

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