Meritz Insurance 1H FY2009 Reviewir.meritzfire.com/ir/upload/1HFY09_eng_final.pdf · regarding the company’s outlook for FY09 and beyond, including projected premium and net income

MeritzMeritzMeritzMeritzMeritzMeritzMeritzMeritz InsuranceInsuranceInsuranceInsuranceInsuranceInsuranceInsuranceInsurance

1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review

November 2009November 2009November 2009November 2009November 2009November 2009November 2009November 2009

1111

DisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimer

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 FY09 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.

2222

■■ Corporate overviewCorporate overviewCorporate overviewCorporate overviewCorporate overviewCorporate overviewCorporate overviewCorporate overview

■■ 1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review1H FY2009 Review

■■ OthersOthersOthersOthersOthersOthersOthersOthers

ContentsContentsContentsContentsContentsContentsContentsContents

3333

HistoryHistoryHistoryHistory

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

� 2009.01 Total assets exceed W5t

� 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 (September 30, 2009)Shareholders (September 30, 2009)Shareholders (September 30, 2009)Shareholders (September 30, 2009)

� Major shareholderMajor shareholderMajor shareholderMajor shareholder’’’’s stakes stakes stakes stake : 22.8%: 22.8%: 22.8%: 22.8%

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

� FreeFreeFreeFree----float : 54.8%float : 54.8%float : 54.8%float : 54.8%

� Foreign investors : 6.5%, domestic : 48.3%

� KB Asset Mgmt. 12.14%(as of Sept 30)

National Pension Service 6.90%(July 13), etc

22.8%22.8%22.8%22.8%

5.5%5.5%5.5%5.5%

3.0%3.0%3.0%3.0%

13.9%13.9%13.9%13.9%

6.5%6.5%6.5%6.5%

48.3%48.3%48.3%48.3%

Shareholder StructureShareholder StructureShareholder StructureShareholder Structure

55.5%

8.4% 100%100%

MeritzMeritzMeritzMeritz

InsuranceInsuranceInsuranceInsurance


SecuritiesSecuritiesSecuritiesSecurities


InvestmentInvestmentInvestmentInvestment

BankBankBankBank


AssetAssetAssetAsset

ManagementManagementManagementManagement

MeritzMeritzMeritzMeritzFinancialFinancialFinancialFinancial

InformationInformationInformationInformationServicesServicesServicesServices

34.6%

• ForeignersForeignersForeignersForeigners

• Major shareholdersMajor shareholdersMajor shareholdersMajor shareholders

• ESOPESOPESOPESOP

• Related Related Related Related companiescompaniescompaniescompanies

• DomesticDomesticDomesticDomestic

• TreasuryTreasuryTreasuryTreasury

5555

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

1.12

4,092

10.13

451

Mar 31, 06

1.46

5,479

6.27

1,276Note)

Sept 31, 09

0.901.851.66adj. PBR

4,2934,8644,575adj. BPS

-13.1712.65adj. PER

601

Mar 31, 07

684

Mar 31, 08

-800adj. EPS

Mar 31, 09(Unit: KRW, x)(Unit: KRW, x)(Unit: KRW, x)(Unit: KRW, x)

Share Price PerformanceShare Price PerformanceShare Price PerformanceShare Price Performance

Note) annualized

100.0

31-Mar 28-Apr 26-May 23-Jun 21-Jul 18-Aug 15-Sep 13-Oct 10-Nov

Meritz

KOSPI

Insurance

Top 4

KOSPI

130.3

Meritz

199.2

Top 4

158.6

30-Jun 30-Sep

6666

Dividend Track RecordDividend Track RecordDividend Track RecordDividend Track Record

� The first insurance company to pay an interim dividend (Sep 2007)

-0.6%-W58.8bnW50 (5.3b)Total

---W58.8b-Year-end

12.6%0.6%W42.3bW50 (5.3b)Interim

FY2008

Total

Year-end

Interim

36.6%2.5%W71.1bW225 (26.0b)

20.0%1.4%W71.1bW125 (14.2b)

22.2%1.4%W35.8bW100FY2006

20.7%1.1%W56.9bW100 (11.8b)

FY2007

29.6%2.4%W26.4b W100FY2005

36.7%4.9%W21.1b W1,000FY2004

Payout ratio Dividend ratioNet incomeDividend

3.60%2.90%3.80%1.80%Dividend yield

22.6%16.4%34.7%23.4%Payout ratio

LIGDongbuHyundaiSamsung

[Dividend history]

[FY08 industry dividend]

Note: Implemented 10:1 stock split in Feb 2006

7777

Our ManagementOur ManagementOur ManagementOur Management

- CEO since June 2005

- Chief Operations Officer at PCA Life (Korea)

- 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 ChoChairman: Jung Ho ChoChairman: Jung Ho ChoChairman: Jung Ho Cho

� 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





9999

Strategy and TargetsStrategy and TargetsStrategy and TargetsStrategy and Targets

� “Solid Underwriting Company”

� Aiming towards to be the best underwriting company, rather than being scale-oriented

Underwriting Company StructureUnderwriting Company Structure

FY08 FY09

EliminateEliminateEliminateEliminateEliminateEliminateEliminateEliminate

uncertaintiesuncertaintiesuncertaintiesuncertaintiesuncertaintiesuncertaintiesuncertaintiesuncertainties

(Risk clearance)(Risk clearance)(Risk clearance)(Risk clearance)(Risk clearance)(Risk clearance)(Risk clearance)(Risk clearance)

Best Best Best Best Best Best Best Best underwritingunderwritingunderwritingunderwritingunderwritingunderwritingunderwritingunderwriting

company company company company company company company company

(Year of new take(Year of new take(Year of new take(Year of new take(Year of new take(Year of new take(Year of new take(Year of new take--------off)off)off)off)off)off)off)off)

StableInvestment

return

StableStableInvestment Investment

returnreturnProfessional

Risk ManagingProfessionalProfessional

Risk ManagingRisk Managing

Combined ratioUnder 100%Combined ratioCombined ratioUnder 100%Under 100%

Establishing Solid Profit BaseEstablishing Solid Profit BaseEstablishing Solid Profit BaseEstablishing Solid Profit BaseEstablishing Solid Profit BaseEstablishing Solid Profit BaseEstablishing Solid Profit BaseEstablishing Solid Profit Base

10101010

193.2

170.4

235.8

189.9

223.4 225.2

252.0

237.9 237.9

197.7

187.8

202.9

192.3

262.3

242.8n.a.

209.0n.a.

12.9

23.518.5

18.6

-16.1

27.8 27.9

17.910.8

n.a.13.712.0

FY2005 FY2006 FY2007 FY2008 FY2009 (e) 1H FY2009

OverviewOverviewOverviewOverview

Top 4 average

[Solvency ratio]

Meritz

Top 4 average

[Adjusted ROE]

Meritz

(Unit:%)

2nd tier average

11111111

5.1%4.6%2.8%5.6%5.9%6.4%Investment yieldInvestment yieldInvestment yieldInvestment yield

71.5138.8-58.871.135.826.4Net incomeNet incomeNet incomeNet income

79.0155.9-99.184.747.538.7Adjusted net incomeAdjusted net incomeAdjusted net incomeAdjusted net income

27.9%27.8%-16.1%18.6%13.7%12.0%ROEROEROEROE

225.2%223.4%189.9%235.8%170.4%193.2%Solvency ratioSolvency ratioSolvency ratioSolvency ratio

105.6198.8106.2179.2159.2149.5Investment profitInvestment profitInvestment profitInvestment profit

100.1%99.8%108.7%102.8%105.4%106.3%Combined ratioCombined ratioCombined ratioCombined ratio

-9.2-12.0-186.4-77.2-116.0-114.1Underwriting profitUnderwriting profitUnderwriting profitUnderwriting profit

1,598.6

1H FY20091H FY20091H FY20091H FY2009

2,180.2

FY2006FY2006FY2006FY2006

3,236.22,896.42,534.01,876.9Gross premiumGross premiumGross premiumGross premium

FY2009 (e)FY2009 (e)FY2009 (e)FY2009 (e)FY2008FY2008FY2008FY2008FY2007FY2007FY2007FY2007FY2005FY2005FY2005FY2005(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

OverviewOverviewOverviewOverview

12121212

SalesSalesSalesSales

8.0% 8.1% 8.2% 8.5% 8.7% 8.4%8.5% 8.9%9.8% 9.4%

10.0%9.1%

FY2005 FY2006 FY2007 FY2008 FY2009(e) 1H FY2009

Gross premium

Long-term initial

Top 4 average

[Gross premium growth rate]

Meritz

Top 4 average

[LT new contract growth rate]

Meritz

[Meritz market share]

10.7%

16.2% 16.2%

14.3%

11.7%

14.0%

13.0%12.0%

10.4%

15.1%

8.2%n.a.

16.3%

25.7%18.7% 20.8%

12.5%

35.1%

52.1%

n.a.26.4%

-0.9%

20.7%

23.3%

13131313


58.9%51.2%34.022.5Protection typeProtection typeProtection typeProtection type




100.0%57.1%57.836.8New contract New contract New contract New contract



Protection type Protection type Protection type Protection type

monthly paymentmonthly paymentmonthly paymentmonthly payment





New contract New contract New contract New contract



100.0%40.0%52.937.8

56.6%52.8%32.721.4

Industry Industry Industry Industry averageaverageaverageaverage

56.2%60.4%60.837.9

Top 4 Top 4 Top 4 Top 4 averageaverageaverageaverage

2222ndndndnd tier tier tier tier averageaverageaverageaverage

59.4%73.9%57.032.7

39.1

1H FY20091H FY20091H FY20091H FY2009

74.1%63.0%24.0


mixmixmixmixGrowth rateGrowth rateGrowth rateGrowth rate1H FY20081H FY20081H FY20081H FY2008(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

[Long[Long[Long[Long----term new contract premium details]term new contract premium details]term new contract premium details]term new contract premium details]

14141414

67.3%66.6%63.9%61.3%56.6%52.3%Premium portionPremium portionPremium portionPremium portion



35.1%12.5%20.8%18.7%25.7%16.3%Growth rateGrowth rateGrowth rateGrowth rate


2.2%1.8%6.0%2.1%8.0%-5.8%Growth rateGrowth rateGrowth rateGrowth rate



Market shareMarket shareMarket shareMarket share

New contract premiumNew contract premiumNew contract premiumNew contract premium(excluding lump-sum

payment)


LongLongLongLong----term line term line term line term line


Auto lineAuto lineAuto lineAuto line


Commercial lineCommercial lineCommercial lineCommercial line


9.1%10.0%9.4%9.8%8.9%8.5%

8.4%8.7 %8.5%8.2%8.1%8.0%

9.2%9.6 %9.2%9.0%8.6%7.9%

7.0%7.1 %7.0%6.6%7.2%7.3%

7.5%8.8 %8.4%8.7%8.5%9.3%

47.985.075.562.552.741.9

1,076.62,156.21,849.61,552.81,234.9981.3

366.0

156.1

1,598.6

1H FY2009

671.5

273.8

2,180.2

FY2006FY2006FY2006FY2006

740.0726.7685.5622.0

340.0320.0295.8273.6

3,236.22,896.42,534.01,876.9Gross premiumGross premiumGross premiumGross premium

FY2009 (e)FY2008FY2008FY2008FY2008FY2007FY2007FY2007FY2007FY2005FY2005FY2005FY2005(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))


15151515

GAGAGAGA(Independent

general agency)

ChannelChannelChannelChannel

44.8%34.0% 30.3%

21.8% 17.5%

18.6%

22.4%23.6%

31.0% 34.8% 39.3%

12.2%14.6% 17.0% 19.1%

18.1%

24.4% 28.9% 29.1% 28.0% 25.0%

FY2005 FY2006 FY2007 FY2008 FY2009(e) 1H FY2009

FC

TC

GA

Others

[New contract premium portfolio by channel][New contract premium portfolio by channel][New contract premium portfolio by channel][New contract premium portfolio by channel]

[Sales force qualification exam market share][Sales force qualification exam market share][Sales force qualification exam market share][Sales force qualification exam market share][Channel mix][Channel mix][Channel mix][Channel mix]

ExclusiveExclusiveExclusiveExclusive

channelchannelchannelchannel

MultiMultiMultiMulti----channel,channel,channel,channel,

NewNewNewNew----channelchannelchannelchannel

FC

TC

Others

Employed

sales

HomeHomeHomeHome----shopping, crossshopping, crossshopping, crossshopping, cross----selling, selling, selling, selling,

onononon----line direct, etc.line direct, etc.line direct, etc.line direct, etc.

CommonCommonCommonCommon

channelchannelchannelchannel

Bancassurance

9.9%

10.6%

Total 10.4%

Financial consultant

4,340

Total consultant

3,216

Traditional sales force

1,913

Exclusive for commercial

line corporate clients

84 people

13 banks

5,682 branches

921 agencies921 agencies921 agencies921 agencies

48,000 employees48,000 employees48,000 employees48,000 employees

PV of future

Profit margin

9.5%

11.2%

13.8%

9.4%8.8%

FY2005 FY2006 FY2007 FY2008 1H FY2009

Note) PV of future profit – cost of capital = value of in-force biz

16161616

Underwriting ProfitUnderwriting ProfitUnderwriting ProfitUnderwriting Profit

Top 4 average

[Administration cost ratio]

Meritz

[Combined ratio]

Note)

Note) Administration cost: Administration cost: Administration cost: Administration cost: other than sales-related cost (acquisition cost, reinsurance commission)

Top 4 average

Meritz

106.3%105.4%

102.8%

108.7%

99.8% 100.1%

103.3%103.8%

100.7% 100.9%

101.8%n.a.

14.3%

13.3%

12.5%

11.9%

10.9%

10.1%

13.1%

12.4%12.1%

11.9%n.a. 11.1%

FY2005 FY2006 FY2007 FY2008 FY2009 (e) 1H FY2009

17171717

Administration cost ratioAdministration cost ratioAdministration cost ratioAdministration cost ratio

Sales cost ratioSales cost ratioSales cost ratioSales cost ratio 17.1%14.7%14.3%11.4%11.0%10.1%

10.1%10.9%11.9%12.5%13.3%14.3%

100.1%99.8%108.7%102.8%105.4%106.3%Combined ratioCombined ratioCombined ratioCombined ratio

27.2%25.6%26.2%23.9%24.3%24.4%Expense ratioExpense ratioExpense ratioExpense ratio

Risk premium Risk premium Risk premium Risk premium

(including IBNR)(including IBNR)(including IBNR)(including IBNR)

Risk premium Risk premium Risk premium Risk premium

(excluding IBNR)(excluding IBNR)(excluding IBNR)(excluding IBNR)

LongLongLongLong----term lineterm lineterm lineterm line

Auto lineAuto lineAuto lineAuto line

Commercial lineCommercial lineCommercial lineCommercial line

82.8%

76.8%

76.3%

72.3%

80.6%

75.3%

77.1%

73.3%

78.2%

69.7%

82.2%

75.8%

76.0%76.7%78.8%82.6%84.9%89.4%

73.0%

23.8%

72.9%

1H FY2009

78.5%

53.0%

81.1%

FY2006FY2006FY2006FY2006

70.0%69.9%74.2%75.1%

57.5%189.9%59.8%49.1%

74.2%82.5%78.9%81.9%Loss ratioLoss ratioLoss ratioLoss ratio

FY2009 (e)

FY2008FY2007FY2007FY2007FY2007FY2005FY2005FY2005FY2005

Underwriting ProfitUnderwriting ProfitUnderwriting ProfitUnderwriting Profit

18181818

FY2005 FY2006 FY2007 FY2008 1H FY2009

Property, others

Death

Life(non-guaranteed)

Life(guaranteed)

LongLongLongLong----term Line Loss Ratioterm Line Loss Ratioterm Line Loss Ratioterm Line Loss Ratio

40.7

33.635.6

55.6

113.7

106.4109.7

104.6

78.676.5

78.3

44.2 44.6

64.347.4

51.2 52.4

108.7

68.2

68.5

94.0

97.5

70.6

73.6

76.2

FY2005 FY2006 FY2007 FY2008 1H FY2009

(Unit : %)

23.5%

30.7%

9.3%

36.5%

20.7%

28.2%

16.3%

34.9%

18.7%

26.6%

22.1%

32.6%

17.8%

24.5%

27.8%

29.9%

17.3%

22.5%

32.5%

27.7%

Property,

others

Death

Total

Life

(non-guaranteed)

Life

(guaranteed)

[Risk premium mix, by fiscal year][Risk premium mix, by fiscal year][Risk premium mix, by fiscal year][Risk premium mix, by fiscal year] [Loss ratio, by coverage][Loss ratio, by coverage][Loss ratio, by coverage][Loss ratio, by coverage]

Note) Death coverage: death/disablement (total disablement, disease death)

Life coverage: medical treatment, daily allowance, disease

Property/Other: Driver expenses, liabilities, property loss, fire

* Loss Ratio: As of Gross Premiums Written, excluding IBNR

19191919

LongLongLongLong----term Line, Funding Costterm Line, Funding Costterm Line, Funding Costterm Line, Funding Cost

31.8% 29.3%23.4% 19.3% 16.1% 17.2%

68.2% 70.7%76.6% 80.7% 83.9% 82.8%

5.07%4.87% 4.81%

4.50% 4.37% 4.32%

5.9% 6.0%

5.6%

3.6%

5.2%

5.8%

FY2005 FY2006 FY2007 FY2008 FY2009(e) Aug FY2009

Fixed %

Variable %

Variable mixVariable mixVariable mixVariable mix

Fixed mixFixed mixFixed mixFixed mix

VariableVariableVariableVariable

FixedFixedFixedFixed

82.8%83.9%80.7%76.6%70.7%68.2%

17.2%16.1%19.3%23.4%29.3%31.8%

5.47%5.26%5.63%5.95%6.53%6.87%

4.08%4.20%4.23%4.45%4.18%4.23%

1.4%p0.8%p-0.9%p0.8%p1.1%p0.8%pSpreadSpreadSpreadSpread

Investment yieldInvestment yieldInvestment yieldInvestment yield 5.8%

4.32%

1H FY2009

6.0%

4.87%

FY2006FY2006FY2006FY2006

5.2%3.6%5.6%5.9%

4.37%4.50%4.81%5.07%Funding costFunding costFunding costFunding cost

FY2009 (e)FY2008FY2007FY2007FY2007FY2007FY2005FY2005FY2005FY2005

Funding cost

Investment yield

20202020

Auto Line Loss RatioAuto Line Loss RatioAuto Line Loss RatioAuto Line Loss Ratio

75.1%

78.5%

69.9% 70.0%

73.0%

74.2%

5.7%

13.3%

6.8%

-1.3%

9.3%

0.5% 2.8%

3.1% 3.2%2.9%

8.2%

1.6%

FY2005 FY2006 FY2007 FY2008 FY2009(e) 1H FY2009

Loss ratio

Average rate growth rate

Loss cost growth rate

[Auto business present state][Auto business present state][Auto business present state][Auto business present state]

[Auto loss ratio trend][Auto loss ratio trend][Auto loss ratio trend][Auto loss ratio trend]

� Differentiate product for target clientele : develop and launch

product designed for intelligent safe driving vehicle, first in the

industry

� Optimize regional portfolio, focused on quality region

� Upgrade underwriting profile, focused on quality contracts

� Raise premium 2.5% for personal auto product (1.5% for company)

StrategyStrategyStrategyStrategy

� Stagnant growth of car sales, slow

growth due to economic condition

� Loss cost rising, average rate still in (-)

growth

� Premium per vehicle growth slower than

expected

Premium, loss ratioPremium, loss ratioPremium, loss ratioPremium, loss ratio

21212121

13.0%

17.5%

20.8%

14.2%

15.5%

17.6%

12.2%13.0%

16.2%

10.5%

13.3%

n.a.

6.4%5.9% 5.6%

2.8%

4.6%5.1%

5.3% 5.4% 5.4%

4.9%

n.a.5.3%

FY2005 FY2006 FY2007 FY2008 FY2009 (e) 1H FY2009

Investment ProfitInvestment ProfitInvestment ProfitInvestment Profit

Top 4 average

[Investment profit]

Meritz

[Investment asset growth]

Top 4 average

Meritz

22222222

YieldYieldYieldYieldProfitProfitProfitProfitYieldYieldYieldYieldProfitProfitProfitProfitYieldYieldYieldYieldProfitProfitProfitProfitYieldYieldYieldYieldProfitProfitProfitProfitYieldYieldYieldYieldProfitProfitProfitProfitYieldYieldYieldYieldProfitProfitProfitProfit

2.8% 5.1%4.6%5.6%5.9%6.4%

1.8%

-19.9%

6.2%

0.7%

6.4%

1.6%

-10.1

%

1.3%

1.5%

6.0%

1.0%

-17.4

%

0.2%

-1.7%

4.9%

3.2%

6.1%

9.4%

6.5%

5.2%

2.0%

-5.1%

13.5%

8.4%

6.1%

5.0%

2.3%

14.9%

5.9%

5.9%

814515820Equity-method & real estate

-4-6-164-21Others

1141241721Stock-type

12-6252113Performance-based

9118412211111695Fixed-income

106

1H FY20091H FY20091H FY20091H FY2009

159

FY2006FY2006FY2006FY2006

199106179150Investment assetsInvestment assetsInvestment assetsInvestment assets

FY2009 (e)FY2009 (e)FY2009 (e)FY2009 (e)FY2008FY2008FY2008FY2008FY2007FY2007FY2007FY2007FY2005FY2005FY2005FY2005(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

Investment ProfitInvestment ProfitInvestment ProfitInvestment Profit

15.3%66315.8%75416.0%66211.1%40212.5%37614.5%370Real estate

16.5%71413.7%65513.7%56911.8%42716.3%48915.7%401Loans

1.7%734.3%20422.2%901.7%610.7%211.5%37Others

10.3%4459.4%45110.3%4277.6%27612.1%3635.8%147Overseas

13.0%5647.4%35312.5%51714.3%5189.4%2818.6%219Investment funds

31.4%1,36234.7%1,65832.6%1,34941.7%1,51035.5%1,06538.0%972Domestic bond

4.0%1733.2%1533.5%1433.6%1322.7%802.3%58Equity-method

3.1%1345.3%2533.4%1422.7%971.4%432.3%59Stock

4.7%2056.2%2995.8%2385.5%2019.4%28311.4%292Cash

100%4,332100%4,779100%4,138100%3,624100%3,000100%2,525Investment assetsInvestment assetsInvestment assetsInvestment assets

%%%%AssetAssetAssetAsset%%%%AssetAssetAssetAsset%%%%AssetAssetAssetAsset%%%%AssetAssetAssetAsset%%%%AssetAssetAssetAsset%%%%AssetAssetAssetAsset

1H FY20091H FY20091H FY20091H FY2009FY2009 (e)FY2009 (e)FY2009 (e)FY2009 (e)FY2008FY2008FY2008FY2008FY2007FY2007FY2007FY2007FY2006FY2006FY2006FY2006FY2005FY2005FY2005FY2005(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

Note: Fixed income = deposit, AFS bond, overseas bond, loan; performance base = trading bond, alternative investment; stock = outsourced investment, trading stock, stock

[Investment profit][Investment profit][Investment profit][Investment profit]

[Investment asset][Investment asset][Investment asset][Investment asset]

23232323

Loan QualityLoan QualityLoan QualityLoan Quality

CorporateCorporateCorporateCorporate

RetailRetailRetailRetail

0.801.924.132.440.68NPL ratioNPL ratioNPL ratioNPL ratio

98976ProvisionsProvisionsProvisionsProvisions

146.1%74.9%48.3%59.2%203.1%Provisions/substandard & belowProvisions/substandard & belowProvisions/substandard & belowProvisions/substandard & below

(Coverage ratio)(Coverage ratio)(Coverage ratio)(Coverage ratio)

0.8%2.0%4.3%2.4%2.9%Delinquency ratioDelinquency ratioDelinquency ratioDelinquency ratio

1.0%1.7%4.8%4.0%4.2%

0.6%2.5%3.2%0.6%0.9%

406

0

149

11

160

149

95

3

247

FY2005FY2005FY2005FY2005

496

56

167

10

233

184

77

2

264

FY2006FY2006FY2006FY2006

435

72

63

1

137

220

77

2

299

FY2007FY2007FY2007FY2007

723

89

80

78

247

264

212

0.1

476

1H FY20091H FY20091H FY20091H FY2009

577

54

55

78

187

261

129

0.2

390

FY2008 FY2008 FY2008 FY2008

TotalTotalTotalTotal (before provisions)(before provisions)(before provisions)(before provisions)

PFPFPFPF

SecuredSecuredSecuredSecured

CreditCreditCreditCredit

PolicyholderPolicyholderPolicyholderPolicyholder

SecuredSecuredSecuredSecured

CreditCreditCreditCredit

Corporate loanCorporate loanCorporate loanCorporate loan

Retail loanRetail loanRetail loanRetail loan

(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

Note: Corporate credit: unsecured, private bond without collateral, etc

Corporate secured: private bonds (Walkerhill, etc)

Delinquency: delinquent principal more than 30 days, excluding policyholder loan

24242424

Overseas Securities Exposure Overseas Securities Exposure Overseas Securities Exposure Overseas Securities Exposure (As of September 2009)(As of September 2009)(As of September 2009)(As of September 2009)

KEXIM, KDB, Kepco, Posco, SKT12.82011-6-212009-1-31CLN 11

3i Group plc, Credit Suisse Group AG and 256 entities10.62010-9-302008-10-27SCDO 1

Shinhan Bank, Hana Bank, Woori Bank, Samsung Electronics, SKT, GS Caltex

12.82015-9-202008-7-30CLN 10

KEXIM, KB, Woori Bank, Kepco, GS Caltex12.82015-9-202008-7-21CLN 9

Republic of Korea12.82014-9-202007-4-26CLN 8



GECC, Republic of Korea, JP Morgan, Posco, KB, Korea Deposit Insurance Corp.

12.82010-9-302005-7-29CLN 5

Citi Group, Deutsche, Merrill Lynch, Shinhan Bank, Hana Bank, GS Caltex, SK

12.82014-3-202007-3-20CLN 4

KDB, Posco, SK, GS Caltex, Hyundai Motors12.82013-12-202006-11-20CLN 3

LG Electronics, Hyundai Motors, SK, Morgan Stanley, Goldman Sachs

12.82013-9-202006-8-21CLN 2

Woori Bank, GECC, Posco, MBIA Insurance, KT, Merrill Lynch, KB

12.82010-9-202005-6-23CLN 1

Underlying referenceUnderlying referenceUnderlying referenceUnderlying referenceFace Face Face Face

amountamountamountamountMaturityMaturityMaturityMaturityAcquisitionAcquisitionAcquisitionAcquisition

17.5 (4.1%)

444.9

427.4

TotalTotalTotalTotal

-3.9 (-6.7%)1.4 (0.5%)21.6 (20.2%)-1.6 (-43.2%)Difference

54.6259.9128.32.1September 09

58.5258.5106.73.7Mar 09

OthersOthersOthersOthersKorean paperKorean paperKorean paperKorean paperCLNCLNCLNCLNCDO/CLOCDO/CLOCDO/CLOCDO/CLO(Unit: (Unit: (Unit: (Unit: WbnWbnWbnWbn))))

[[[[CLN(CreditCLN(CreditCLN(CreditCLN(Credit Linked Note)]Linked Note)]Linked Note)]Linked Note)] (Unit: W bn)

Note) Others : Fund, plain bond, PEF, etc.

25252525

Risk and Return BalanceRisk and Return BalanceRisk and Return BalanceRisk and Return Balance

Note) Meritz FY08 adjusted ROE: excluding RG Loss

adjusted

ROE

Solvency Solvency Solvency Solvency ratioratioratioratio

200%200%

20%20%

FY08FY08FY08FY08

FY07

FY08FY08

• adj. ROE : 9.2%adj. ROE : 9.2%adj. ROE : 9.2%adj. ROE : 9.2%

• solvency : 189.9%solvency : 189.9%solvency : 189.9%solvency : 189.9%

• adj. ROE : 18.6%adj. ROE : 18.6%adj. ROE : 18.6%adj. ROE : 18.6%

• solvency : 235.3%solvency : 235.3%solvency : 235.3%solvency : 235.3%

MeritzMeritzMeritzMeritz 2222ndndndnd tiertiertiertier

FY07FY07• adj. ROE 27.0%adj. ROE 27.0%adj. ROE 27.0%adj. ROE 27.0%

• solvency 202.9%solvency 202.9%solvency 202.9%solvency 202.9%

• adj. ROE 19.5%adj. ROE 19.5%adj. ROE 19.5%adj. ROE 19.5%


250%250% 300%300%

1H1H1H1H1H1H1H1H

FY09 FY09 FY09 FY09 FY09 FY09 FY09 FY09

•• adj. ROE : 27.8%adj. ROE : 27.8%adj. ROE : 27.8%adj. ROE : 27.8%adj. ROE : 27.8%adj. ROE : 27.8%adj. ROE : 27.8%adj. ROE : 27.8%

•• solvency : 225.2%solvency : 225.2%solvency : 225.2%solvency : 225.2%solvency : 225.2%solvency : 225.2%solvency : 225.2%solvency : 225.2%

1H1H1H1H1H1H1H1H

FY09FY09FY09FY09FY09FY09FY09FY09

11111111stststststststst TargetTargetTargetTargetTargetTargetTargetTarget

250%250%250%250%250%250%250%250%↑↑↑↑↑↑↑↑ by 2010by 2010by 2010by 2010by 2010by 2010by 2010by 2010

22222222ndndndndndndndnd TargetTargetTargetTargetTargetTargetTargetTarget

300%300%300%300%300%300%300%300%↑↑↑↑↑↑↑↑ by 2011by 2011by 2011by 2011by 2011by 2011by 2011by 2011

Maintain Maintain Maintain Maintain Maintain Maintain Maintain Maintain

more than 200% more than 200% more than 200% more than 200% more than 200% more than 200% more than 200% more than 200%

in worst scenarioin worst scenarioin worst scenarioin worst scenarioin worst scenarioin worst scenarioin worst scenarioin worst scenario

• adj. ROE 19.3%adj. ROE 19.3%adj. ROE 19.3%adj. ROE 19.3%


26262626





27272727

0

5

10

15

20

25

30

35

40

45

196019

6519

7019

7519

8019

8519

9019

9520

0020

0520

1020

1520

2020

2520

3020

3520

4020

4520

50

LongLongLongLong----term Insurance Growthterm Insurance Growthterm Insurance Growthterm Insurance Growth

� South Korea’s market development � Protection needs for aged people grows

………

2.4Panama25

2.42.42.42.4South KoreaSouth KoreaSouth KoreaSouth Korea

(Excluding savings premium)(Excluding savings premium)(Excluding savings premium)(Excluding savings premium)24242424

2.6Iceland23

2.6Portugal22

2.7Israel21

2.7Belgium20

2.8Denmark19

2.9Australia18

3.7Slovenia7

3.5Germany9

3.2Austria10

3.8Canada6

3.73.73.73.7South KoreaSouth KoreaSouth KoreaSouth Korea8888

4.6United States3

4.4Switzerland4

4.4New Zealand5

…

7.6Bahamas2

8.5Netherlands1

Premiums in % of Premiums in % of Premiums in % of Premiums in % of GDPGDPGDPGDP

CountryCountryCountryCountryRankRankRankRank

P&C penetration for 2008

[Life expectancy][Life expectancy][Life expectancy][Life expectancy]

86.083.181.579.678.676.071.365.762.3

Life expectanc

y

205020302020201020052000199019801971Year

(Unit : year)

Source) KNSO (Korea National Statistical Office) November 2006 ‘Population estimation’

Due to longevity of life and decreasing birth rate, seniors(65+ yrs seniors(65+ yrs seniors(65+ yrs seniors(65+ yrs old)old)old)old) will increase from 9.1% in 2005 to 14.3% in 2018, which is start of aged society, 20.8% in 2026, signaling post-aged society

Life expectancyLife expectancyLife expectancyLife expectancy in 2005 is 78.6, will be augmented to 83.1 in

2030, 86.0 in 2050

[Seniors(65+ yrs old) mix][Seniors(65+ yrs old) mix][Seniors(65+ yrs old) mix][Seniors(65+ yrs old) mix]

7%≤ : aging society

14%≤ : aged society

20%≤ : post-aged society

(Unit : %)

※ Korea life industry’s penetration is 8.0% (5th largest in the world)

28282828

LongLongLongLong----term Insurance Growthterm Insurance Growthterm Insurance Growthterm Insurance Growth

Secure new growth engine, on the ground of P&C core businessSecure new growth engine, on the ground of P&C core businessSecure new growth engine, on the ground of P&C core businessSecure new growth engine, on the ground of P&C core business

Develop new productDevelop new productDevelop new productDevelop new productFamilyFamilyFamilyFamily

MarketingMarketingMarketingMarketingProduct competitivenessProduct competitivenessProduct competitivenessProduct competitiveness

DriverDriverDriverDriver’’’’ssss

KidsKidsKidsKidsWholeWholeWholeWhole----lifelifelifelife

Marketing object of Marketing object of Marketing object of Marketing object of MeritzMeritzMeritzMeritz

� ‘Silver’ product for aging society

market

- Supplementary product for

‘Long-term Care for Seniors’

system, which is launched by

government

� Family marketing for existing

customers

- Whole-life product customers will

be introduced to drivers and kids

insurance

� Open up market for new risk

� Enlarge coverage

� Fully utilizing pricing advantage

29292929

Refund GuaranteeRefund GuaranteeRefund GuaranteeRefund Guarantee

�� 6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, m6 shipbuilders(48 ships as of Sept 2008) holding RG insurance, managed according to their risk levelanaged according to their risk levelanaged according to their risk levelanaged according to their risk levelanaged according to their risk levelanaged according to their risk levelanaged according to their risk levelanaged according to their risk level

90.6

4.2

52.3

34.1

130.7

15.9

86.6

28.2

Exposure

22

3

6

13

17

3

6

8

# of ships

March 2009

-

Normal operation

Normal operation

Normal operation

-

-

Claims paid(2 ships) in Aug~Sep 09

Claim for 1 ship paid in Aug 09

Remark

Normal

Insolvent

Category

58.814147.331Sub-total

2.122.93Orient Heavy

43.5490.610Sekwang

Shipbuilding

13.2853.818Sekwang Heavy

96.514128.217Sub-total

15.1314.23Asia Heavy Industries

54.5484.06Jinse

Shipbuilding

26.9730.08C& Heavy Industries

Exposure# of

shipsExposure

# of ships

Sept 2009Sept 2008Shipbuilder

☞☞☞☞ As of March 2009, assuming total losses on 3 insolvent companiesAs of March 2009, assuming total losses on 3 insolvent companiesAs of March 2009, assuming total losses on 3 insolvent companiesAs of March 2009, assuming total losses on 3 insolvent companies, reserve of , reserve of , reserve of , reserve of W181.7bnW181.7bnW181.7bnW181.7bn is accumulatedis accumulatedis accumulatedis accumulated

(Unit: $ mn)

30303030

Refund GuaranteeRefund GuaranteeRefund GuaranteeRefund Guarantee

� Normal 3 companiesNormal 3 companiesNormal 3 companiesNormal 3 companies’’’’ financial statusfinancial statusfinancial statusfinancial status(Unit: W bn)

4887Capital

Net income

Sales

Liabilities

Asset

CategoryCategoryCategoryCategory

12

184

169

177

SekwangSekwangSekwangSekwang ShipbuildingShipbuildingShipbuildingShipbuilding(2008.12)(2008.12)(2008.12)(2008.12)

-6

88

389

438

Orient ShipbuildingOrient ShipbuildingOrient ShipbuildingOrient Shipbuilding(2008.12)(2008.12)(2008.12)(2008.12)

SekwangSekwangSekwangSekwang Heavy Heavy Heavy Heavy IndustriesIndustriesIndustriesIndustries(2008.12)(2008.12)(2008.12)(2008.12)

370

364

298

-37

58.8Total Exposure

1.1Escrow account balance

Launched

Keel-laid

15.815.815.815.8

17.3

33.6

59.9

Risk Exposure

Actual exposureActual exposureActual exposureActual exposure

Paid installment

(as of Sept. 2009, US$mn)

[Risk exposure by construction stages][Risk exposure by construction stages] [[Risk exposure forecastRisk exposure forecast]]

5.439.0

59.9

96.5105.2

154.1

'08.12 '09.03 '09.06 '09.09 '09.12 '10.03

(Unit: $ mn)

Installments

31313131

Embedded ValueEmbedded ValueEmbedded ValueEmbedded Value


----273.3273.3273.3273.3

14.2

-0.6

-2.4

-188.1

0.7

-35.2

-2.2

-29.2

----242.8242.8242.8242.8

----30.530.530.530.5

YoYYoYYoYYoY

• Change of accounting standard

(Real estate revaluation) : 1,905

• reduced retained earnings : - 784

• Treasury share buy-back : - 617

• valuation loss of investment : -796

• others : -13

-14.20Cash dividend payable

456.1456.1456.1456.1425.6425.6425.6425.6ShareholderShareholderShareholderShareholder’’’’s Equity (a)s Equity (a)s Equity (a)s Equity (a)

Adjusted Net Worth (Adjusted Net Worth (Adjusted Net Worth (Adjusted Net Worth (a+ba+ba+ba+b))))

Change of accounting standard188.10Real estate

-6.4-8.8Intangible asset

FY2008 closing price : 3,87083.781.5Treasury share

Meritz Securities:975, Meritz

Investment Bank:735-5.8-41.0Equity-method stock

2.33.0Bad debt allowance for

normal/precautionary

808.2808.2808.2808.2

-1.5

105.9

352.1352.1352.1352.1

FY2007FY2007FY2007FY2007

109.3109.3109.3109.3

Catastrophe reserve reversal 56376.7Catastrophe reserve

534.9534.9534.9534.9

-2.1Prepaid

RemarkRemarkRemarkRemarkFY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory

Adjusted Capital (b)Adjusted Capital (b)Adjusted Capital (b)Adjusted Capital (b)

� Adjusted Net Worth

32323232

� Value of In-force Business - Assumptions

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

- Categorized fixed/variable, variable is applied by existing standardAssumed interest Assumed interest Assumed interest Assumed interest

raterateraterate

- Sales cost : applied existing sales commission scheme

- Administration cost : Per unit cost is decreasing due to economies of scale,

but conservatively applied FY08 result

- Accumulated E/R of In-force Business : FY2007 85%, FY2008 79%

ExpensesExpensesExpensesExpenses

- Empirical data of past 6 years by 16 Category

- Accumulated L/R of In-force Business : FY2007 87%, FY2008 90%Risk premium L/RRisk premium L/RRisk premium L/RRisk premium L/R

- Applied data of preceding 3 years → detailed by each product type and channelPersistency ratioPersistency ratioPersistency ratioPersistency ratio

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

□□□□ Risk Discount Rate : 11.5%, Risk Discount Rate : 11.5%, Risk Discount Rate : 11.5%, Risk Discount Rate : 11.5%, calculated by CAPM (Capital Asset Pricing Model)

□□□□ 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 (FY08 : 27.5%, FY09 : 24.2%, after FY10 : 22.0%) (FY08 : 27.5%, FY09 : 24.2%, after FY10 : 22.0%) (FY08 : 27.5%, FY09 : 24.2%, after FY10 : 22.0%) (FY08 : 27.5%, FY09 : 24.2%, after FY10 : 22.0%)

□□□□ Required Capital : Required Capital : Required Capital : Required Capital : 150% of existing solvency margin requirement

□□□□ Investment yield : 5.0%Investment yield : 5.0%Investment yield : 5.0%Investment yield : 5.0%


33333333

� Value of In-force Business

▶▶▶▶▶▶▶▶ 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 = 556.2Cost of Capital = 556.2Cost of Capital = 556.2Cost of Capital = 556.2Cost of Capital = 556.2Cost of Capital = 556.2Cost of Capital = 556.2Cost of Capital = 556.2


33.6%33.6%33.6%33.6%139.8139.8139.8139.8416.4416.4416.4416.4556.2556.2556.2556.2Value of InValue of InValue of InValue of In----force Business (d)force Business (d)force Business (d)force Business (d)

( - )-2.6%-2.6%(c/a)

+0.7%p9.7%10.4%Margin (b/a)

-36.5

176.3

1,321.0

YoYYoYYoYYoY

0.7%p 0.7%p 0.7%p 0.7%p ↑↑↑↑7.1 %7.1 %7.1 %7.1 %7.8%7.8%7.8%7.8%Profit Margin (d/a)Profit Margin (d/a)Profit Margin (d/a)Profit Margin (d/a)

24.3%-150.1-186.6Cost of Capital (c)

31.1%566.5742.8PV of Future Profit (b)

22.6%5,834.27,155.2PV of Future Premium (a)

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory


34343434

� Value of 1-year New Business(Unit: W (Unit: W (Unit: W (Unit: W bnbnbnbn))))

▶▶▶▶▶▶▶▶ Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1--------year New Business : 184.9year New Business : 184.9year New Business : 184.9year New Business : 184.9year New Business : 184.9year New Business : 184.9year New Business : 184.9year New Business : 184.9

28.7%28.7%28.7%28.7%

28.4%

0.2%p ↑6.7%6.9%Profit Margin on PV of Future Premium

41.241.241.241.2143.7143.7143.7143.7184.9184.9184.9184.9Value of 1Value of 1Value of 1Value of 1----year New Businessyear New Businessyear New Businessyear New Business

51.0179.3230.31st year result & PV of Future Profit

-9.8

159.0

507.2

YoYYoYYoYYoY

1.2%p ↑19.3%20.5%Profit Margin on ANP

27.5%-35.6-45.4Cost of Capital

21.3%744.8903.8Annualized Premiums equivalent

23.5%2,156.92,664.1PV of Future Premium

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory

* Profit margin on ANP = Value of 1-year new Business ÷ Annualized premiums equivalent

ANP : Annualized premiums equivalent


35353535


1,028.31,028.31,028.31,028.31,091.11,091.11,091.11,091.11,164.61,164.61,164.61,164.6Embedded ValueEmbedded ValueEmbedded ValueEmbedded Value

-200.3-186.6-169.9Cost of holding required capital

693.7742.8799.6Present Value of future profit

493.4493.4493.4493.4556.2556.2556.2556.2629.7629.7629.7629.7Value of InValue of InValue of InValue of In----force Businessforce Businessforce Businessforce Business

109.3Adjusted Capital

425.6Shareholder’s Equity

534.9534.9534.9534.9Adjusted Net WorthAdjusted Net WorthAdjusted Net WorthAdjusted Net Worth

RDR 13.0%RDR 13.0%RDR 13.0%RDR 13.0%RDR 11.5%RDR 11.5%RDR 11.5%RDR 11.5%RDR 10.0%RDR 10.0%RDR 10.0%RDR 10.0%CategoryCategoryCategoryCategory

※※※※※※※※ RDR : Risk Discount RateRDR : Risk Discount RateRDR : Risk Discount RateRDR : Risk Discount RateRDR : Risk Discount RateRDR : Risk Discount RateRDR : Risk Discount RateRDR : Risk Discount Rate

-47.2-45.4-42.8Cost of holding required capital

209.8230.3254.3Present Value of future profit

162.6162.6162.6162.6184.9184.9184.9184.9211.5211.5211.5211.5Value of 1Value of 1Value of 1Value of 1----year New Businessyear New Businessyear New Businessyear New Business


� EV per Risk Discount Rate

36363636

FY2007FY2007FY2007FY2007 FY2008FY2008FY2008FY2008

0.91 x0.91 x0.91 x0.91 x

PricePricePricePrice PricePricePricePriceEVPSEVPSEVPSEVPS EVPSEVPSEVPSEVPS

9,8929,8929,8929,892

8,8138,8138,8138,8139,0109,0109,0109,010

3,8703,8703,8703,870

0.44 x0.44 x0.44 x0.44 x

P/ EVP/ EVP/ EVP/ EV

CurrentCurrentCurrentCurrent

(2009.9.23)(2009.9.23)(2009.9.23)(2009.9.23)

PricePricePricePrice EVPSEVPSEVPSEVPS

8,8138,8138,8138,813

8,0908,0908,0908,090

0.92 x0.92 x0.92 x0.92 x


� Share price, EV per share, Price to EV

※※※※ 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

(Unit: W)(Unit: W)(Unit: W)(Unit: W)

37373737


▶▶▶▶▶▶▶▶ Value of InValue of InValue of InValue of InValue of InValue of InValue of InValue of In--------Force BusinessForce BusinessForce BusinessForce BusinessForce BusinessForce BusinessForce BusinessForce Business

Interest Interest Interest Interest ※※※※ Loss ratioLoss ratioLoss ratioLoss ratio

Persistency ratioPersistency ratioPersistency ratioPersistency ratio Expense ratioExpense ratioExpense ratioExpense ratio

+10%+10%+10%+10%

----10%10%10%10%

----10%10%10%10%

+10%+10%+10%+10%

----10%10%10%10%

+10%+10%+10%+10%

+50bp+50bp+50bp+50bp

----50bp50bp50bp50bp

33.4 (6%)33.4 (6%)33.4 (6%)33.4 (6%)

----31.1 (31.1 (31.1 (31.1 (----6%)6%)6%)6%)

16.4 (3%)16.4 (3%)16.4 (3%)16.4 (3%)

----16.4 (16.4 (16.4 (16.4 (----3%)3%)3%)3%)

80.7 (15%)80.7 (15%)80.7 (15%)80.7 (15%)

----80.1 (80.1 (80.1 (80.1 (----14%)14%)14%)14%)

139.9 (25%)139.9 (25%)139.9 (25%)139.9 (25%)

----139.4 (139.4 (139.4 (139.4 (----25%)25%)25%)25%)

▶▶▶▶▶▶▶▶ Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1--------year New Businessyear New Businessyear New Businessyear New Businessyear New Businessyear New Businessyear New Businessyear New Business

Interest Interest Interest Interest ※※※※ Loss ratioLoss ratioLoss ratioLoss ratio

Persistency ratioPersistency ratioPersistency ratioPersistency ratio Expense ratioExpense ratioExpense ratioExpense ratio

+10%+10%+10%+10%

----10%10%10%10%

----10%10%10%10%

+10%+10%+10%+10%

----10%10%10%10%

+10%+10%+10%+10%

+50bp+50bp+50bp+50bp

----50bp50bp50bp50bp

19.3 (10%)19.3 (10%)19.3 (10%)19.3 (10%)

----17.7 (17.7 (17.7 (17.7 (----10%)10%)10%)10%)

14.0 (8%)14.0 (8%)14.0 (8%)14.0 (8%)

----14.0 (14.0 (14.0 (14.0 (----8%)8%)8%)8%)

16.8 (9%)16.8 (9%)16.8 (9%)16.8 (9%)

----16.4 (16.4 (16.4 (16.4 (----9%)9%)9%)9%)

47.8 (26%)47.8 (26%)47.8 (26%)47.8 (26%)

----47.7 (47.7 (47.7 (47.7 (----26%)26%)26%)26%)


� Sensitivities

※ Both investment yield and funding cost impacted by fluctuations of market interests are reflected

Thank youThank youThank youThank you

Investor Relations Contacts:

Jae-Hyoung Kim (General Manager)

822-3786-1150, [email protected]

Pil-Soo Kim (Manager)


Ji-Yon Park (Manager)


http://ir.meritzfire.com

Documents

Meritz Insurance 1H FY2009 Reviewir.meritzfire.com/ir/upload/1HFY09_eng_final.pdf · regarding the company’s outlook for FY09 and beyond, including projected premium and net income