oriental fire & marine insurance co., ltd. information herein is published on 2004. 11. 11 1...

Oriental Fire & Marine Insurance Co., Ltd.

Information herein is published on www.insuworld.co.kr 2004. 11. 11 1

OFMI Management OverviewOFMI Management Overview

( FY2004 First half )( FY2004 First half )

www.insuworld.co.kr 2

Contents Brief History

Award History

Direct Premiums Written

Profit and Loss Index

Asset Management

Others


Brief History

: Establishment of Chosun Fire & Marine Insurance Co., Ltd.

(1st Ins. Co. In Korea)

: Change Name to Oriental Fire & Marine Insurance Co., Ltd.

: Listed on Korea Stock Exchange

: Became a member company of Hanjin Business Group

: Paid in capital increased to W42.9 billion

: Total assets surpassed W1 trillion mark

: Formed PT. Asuransi Hanjin Korindo, a join venture in Indonesia

: Opened On-line Shopping Mall ‘INSUWORLD’

: Total assets surpassed W2 trillion mark

: Working assets surpassed W2 trillion mark

1922.10

1950. 5

1956. 7

1967. 7

1995. 1

1996. 5

1998.11

1999. 9

2002. 7

2004. 2


Award History: Received Outstanding Award in Finance sectors in 5th Maeil Economy Daily Financial Product Contest: ‘Feel safe product’ Awarded the best Korea marketing Award in service category by KMAC: Ranked No.1 in Non-life Insurance industry and Ranked No.2 in the Whole Industry in Korea Standard-Service Qulity Index: ‘Military Product’ Awarded in excellent New products by FSS: Received ‘The Best Prize in New Corporate Culture’ organized by the Korea Management Association: Received the best Insurance Award(Deputy prime minister & Ministery finance & economy Award by Seoul Economics Daily): Received the best Insurance Award (Korea Insurance development Institute) by Herald Economics Daily: Awarded The Grand Price in Service-Oriented Management Among The Best Service Companies in Korea, Certified by Ministry of Commerce, Industry and Energy of Korean Government.: Awarded the excellent developer for the new-insurance product of Merit Motor Insurance for personal use by FSS (Financial Supervisory Service): Received Outstanding Award for Non-dividend Dr. Care Health & Nursing Insurance Product in Finance sectors in 9th Maeil Economy Daily Financial Product Contest: Conferred 'Grand Prix' for the sector of young generation welfare among the society-contribution companies in 2004 (managed by 'The Korea Economic Daily'): Received the Best Outstanding Award for Customer Service Renovation in Customer Satisfaction Management Contest (managed by KMAC) Awarded the Grand Prix in Marketing (managed by 'The Herald Business')

2000. 3

2001. 6

2001.10

2001.12 2002. 7

2003. 7

2003.10

2003.12

2003.12

2004. 3

2004.10

2004.11


Direct Premiums Written

7.7% in sales growth in FY2004 First half Focusing on sales growth with profitability thru Restructuring LT insurance

portfolio based on monthly payment and enlarging in wide coverage products in auto.

M/S G/R M/S G/R M/S G/R 실적 M/S G/R

Commercial 312.3 14.3 35.4 329.1 13.1 5.4 296.2 11.5 - 10.0 132.1 11.5 - 15.8

Automobile 605.2 8.2 30.6 617.1 8.0 2.0 615.7 7.8 - 0.2 334.3 7.8 11.0

Long- term 562.9 7.7 7.5 527.3 6.6 - 6.3 574.7 6.7 9.0 322.9 6.7 16.9

Pension 57.5 8.6 2.9 56.4 8.3 - 1.7 57.4 8.3 1.6 31.4 8.3 13.1

Total 1,537.9 8.8 20.7 1,529.9 8.1 - 0.5 1,544.0 7.8 0.9 820.7 7.8 7.7

FY2004 First halfC lass

FY2001 FY2002 FY2003

* The ratio of the premiums of risk-basis products in Long-Term insurance : FY2001 75.8% → FY2002 86.4% → FY2003 89.0% → FY2004 First half 88.2%* The ratio of the premiums of high-coverage products in Automobile insurance :

FY2001 9.1% → FY2002 20.1% → FY2003 56.7% → FY2004 First half 59.4%

(Won in billion,%)


Profit

1. Profit

21.1 Billion total profit in FY2004 First half : Net Income 15.0 Billion, Increase in catastrophe reserve 6.0 Billion

9.2 10.1 10.56.0

43.7

15.0

52.8

44.2

30.5

21.1

34.1

20.0

FY2001 FY2002 FY2003 FY2004 First half

Increase in catastrophe reserveNet IncomeTotal Profit

(Won in Billion)


2. Profit Index

FY2004 First half Loss Ratio 80.5%(+0.5%P, compared to FY2003 First half) FY2004 First half Expence ratio 22.8%(-3.1%P,compared to FY2003 First half) FY2004 First half Combined ratio 104.1%(-1.0%P, compared to FY2003 First half) FY2004 First half Investment profit ratio 5.2%(-0.3%P, compared to FY2003 First half)


Commerc ial 45.6 44.1 48.1 44.4

Automobile 66.3 69.7 79.2 73.8

Long- term 87.5 87.5 84.5 88.6

Pension 126.2 121.7 124.3 115.8

Total 78.4 78.8 81.5 80.5

22.3 24.8 24.7 22.8

102.5 102.5 106.2 104.1

6.8 5.3 6.3 5.2Investment profit ratio

Combined ratio

C lass

LossRatio

Expense Ratio

(%)

Profit


3. Solvency Margin

183.9% Solvency margin in FY2004 First half (Exceeds the basic solvency margin ￦ 158.0 Billion)

147.4 158.0133.9

94.4

185.5 183.9

163.4

183.4


Surplus amount Solvency magin

(won in Billion,%)

Profit


Asset Management1. Asset Management

Total asset increased 6.8% over FY2003, in amount of ￦ 2,490.4 Billion Working asset increased 5.4% over FY2003, in amount of ￦ 2,135.6 Billion Ensuring high return by increasing loans. Equty in total of ￦ 77.7 Billion is composed of Trading ( ￦ 4.6 Billion), Available For Sale( ￦ 63.4 Billion) , Eputy Method( ￦ 9.8 Billion)

86.6 87.8 86.9 85.8

10.511.2 10.0 11.92.3 2.6 2.3


Working asset Non- Working asset Separate account

8.2 10.0 10.6 12.87.6 12.5 10.4 12.3

56.660.0 66.7 62.3

27.6 17.5 12.3 12.6


Cash & Deposits Loans Securities Real estates

2,150.51,938.5 2,332.0

[ Working asset ][ Total asset ] (Won in Billion,%) (%)

2,490.4


2. Investment profit

Class FY2001 FY2002 FY2003 FY2004 First halfEquity 17.4 - 6.5 9.7 - 5.4Bonds 54.8 76.2 80.3 41.7

Other FI(loans,etc) 30.6 22.0 29.6 17.5Total 102.8 91.7 119.6 53.8

Investment profit ratio 6.8 5.3 6.3 5.2

(Won in Billion,%)

5.2% Investment profit ratio in FY2004 First half

Asset Management


Others

1. Shareholders

Majorstockholders

23.68%

Employeestock1.65%

Others25.62%

Treasury Stocks9.67%

Foreigners39.38%

Foreigners’ Shares : 14.50%(FY2001) → 13.31%(FY2002) 37.30%(FY2003) → 39.38%(FY2004 First half)


Others

2. Stock Related Index

51.6

97.3

41.2 45.950.4

Oriental A B C D

● As of FY2004 First half : ￦ 37,605

● BPS Including Catastrophe Reserve ※ Number of Share : 8,580,000

67,834110,402105,104

37,605

681,268

Oriental A B C D

[ PBR (Price / BPS) ]

[ BPS ]

● As of end of FY2004 First half Ratio is 41.2%

● Stock price as of end of FY2003 : ￦ 17,300

(%)

(Won)


Others3. Treasury Stock

Treasury stock Fund : KITMC 230,010 Treasury Stock : 600,000 Average Price : ￦ 9,649 (97.12.19~98.1.26, 300,000) ￦ 17,423 (99.10.19~11.29, 300,000)

4. Dividend Payout by years

year Dividend Rate Dividend Net IncomeDividend

yieldPayoutRatio

FY96 cashdividend 12% 600 Won 13.9 Billion 3.0% 36.92%




FY2000 cashdividend 5% 250 Won - 19.8 Billion 7.0% -

FY2001 cashdividend 20% 1,000 Won 43.7 Billion 5.4% 17.70%

FY2002 cashdividend 20% 1,000 Won 34.1 Billion 8.6% 22.70%

FY2003 cashdividend 20% 1,000 Won 20.0 Billion 5.5% 38.70% Solely selected among Insurance companies in KODI (2003.7)


Others

5. Dependence on afiliates

Class Equilty bonds Loans Total

Book value 40.3 10.0 50.3

Ratio 1.62% 0.40% 2.02%

Class Bonds Liabilities (reserve)

FY2000 2.4 yrs

FY2001 2.85 yrs

FY2002 2.52 yrs

FY2003 2.93 yrs3.16~3.61yrs(approximately 3.29~3.53yrs whenpersonal pension excepted)

FY2004First half

2.28 yrs3.19yrs(approximately 3.33yrs when personalpension excepted)

6. Bonds & Loans Duration

(Won in Billion)


Others

7. Non-Performing Loans

C lassCoverage (allowancefor bedbebt)amount

to total Loans

NPL(Substandard and below to total loans)

Coverage Ratio

FY2000 1.65 4.60 35.88

FY2001 1.41 3.67 38.37

FY2002 0.40 1.29 31.27

FY2003 0.33 1.44 22.96FY2004First half 0.17 0.73 25.35

(%)

oriental fire & marine insurance co., ltd. information herein is published on 2004. 11. 11 1...

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