Meritz Insurance FY08 Review & FY09 Profit2. Profit FY07 FY07 + ordinary change Cat. reserve reversal

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  • MeritzMeritzMeritzMeritzMeritzMeritzMeritzMeritz InsuranceInsuranceInsuranceInsuranceInsuranceInsuranceInsuranceInsurance

    FY08 Review & FY09 GuidanceFY08 Review & FY09 GuidanceFY08 Review & FY09 GuidanceFY08 Review & FY09 GuidanceFY08 Review & FY09 GuidanceFY08 Review & FY09 GuidanceFY08 Review & FY09 GuidanceFY08 Review & FY09 Guidance

    May 2009May 2009May 2009May 2009May 2009May 2009May 2009May 2009

  • 1111

    This material has been prepared based on internally audited

    figures and final figures may change due to the results of an

    independent audit without notice.

    This presentation includes forward-looking statements

    regarding the company’s outlook for 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.

    DisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimer

  • 2222

    Corporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate Overview

    FY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 Review

    FY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & Guidance

    IssueIssueIssueIssueIssueIssueIssueIssue

    Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)

    ContentsContentsContentsContentsContentsContentsContentsContents

    1111

    2222

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  • 3333

    1111----1. History1. History1. History1. History

    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

    Shareholders (Mar 31, 2009)Shareholders (Mar 31, 2009)Shareholders (Mar 31, 2009)Shareholders (Mar 31, 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: 53.8%float: 53.8%float: 53.8%float: 53.8%

    � Foreign investors: 9.6%, domestic : 44.2%

    22.8%22.8%22.8%22.8%

    6.5%6.5%6.5%6.5%

    3.0%3.0%3.0%3.0%

    13.9%13.9%13.9%13.9%

    9.6%9.6%9.6%9.6%

    44.2%44.2%44.2%44.2%

    1111----2.Shareholder Structure2.Shareholder Structure2.Shareholder Structure2.Shareholder Structure

    AffiliatesAffiliatesAffiliatesAffiliates

    57.2%

    5.5% 100%100%

    MeritzMeritzMeritzMeritz

    InsuranceInsuranceInsuranceInsurance

    MeritzMeritzMeritzMeritz

    SecuritiesSecuritiesSecuritiesSecurities

    MeritzMeritzMeritzMeritz

    InvestmentInvestmentInvestmentInvestment

    BankBankBankBank

    MeritzMeritzMeritzMeritz

    AssetAssetAssetAsset

    ManagementManagementManagementManagement

    MeritzMeritzMeritzMeritz FinancialFinancialFinancialFinancial

    InformationInformationInformationInformation ServicesServicesServicesServices

    26.8%

    • ForeignersForeignersForeignersForeigners

    • Major shareholdersMajor shareholdersMajor shareholdersMajor shareholders

    • ESOPESOPESOPESOP

    • Related Related Related Related companiescompaniescompaniescompanies

    • DomesticDomesticDomesticDomestic

    • TreasuryTreasuryTreasuryTreasury

  • 5555

    KOSPI, 88.72

    보험업종, 115.79

    메리츠화재, 97.90

    -

    50

    100

    150

    200

    250

    300

    350

    06-3-31 06-9-30 07-3-31 07-9-30 08-3-31 08-9-30 09-3-31

    [Relative Price Trend (FY[Relative Price Trend (FY[Relative Price Trend (FY[Relative Price Trend (FY’’’’06 ~ FY06 ~ FY06 ~ FY06 ~ FY’’’’08)]08)]08)]08)]

    0.901.851.66P/B

    4,2934,8644,575BPS

    -8.1511.3012.65P/E

    601

    07.03.31

    797

    08.03.31

    -475EPS

    09.03.31(Unit: KRW, x)(Unit: KRW, x)(Unit: KRW, x)(Unit: KRW, x)

    1111----3. Share Price Performance3. Share Price Performance3. Share Price Performance3. Share Price Performance

    Insurance sector 115.79%

    Meritz 97.90%

    KOSPI 88.72%

  • 6666

    � Dividend policy

    • 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

    FY08

    Total

    Year-end

    Interim

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

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

    22.2%1.4%W35.8bW100FY06

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

    FY07

    29.6%2.4%W26.4b W100FY05

    36.7%4.9%W21.1b W1,000FY04

    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

    1111----4. Dividend Track Record 4. Dividend Track Record 4. Dividend Track Record 4. Dividend Track Record

    [Dividend history]

    Note: Implemented 10:1 stock split in Feb 2006

    [FY08 industry dividend]

  • 7777

    1111----5. Our Management5. Our Management5. Our Management5. Our 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

    Corporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate OverviewCorporate Overview

    FY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 ReviewFY08 Review

    FY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & GuidanceFY09 Forecast & Guidance

    IssueIssueIssueIssueIssueIssueIssueIssue

    Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)Appendix (FY08 Financials)

    ContentsContentsContentsContentsContentsContentsContentsContents

    1111

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    ※※※※

    4444

  • 9999

    2 2 2 2 ---- 1. Sales1. Sales1. Sales1. Sales

    FY07FY05 FY06

    1,876.9bn1,876.9bn1,876.9bn1,876.9bn

    8.0%8.0%8.0%8.0%

    2,180.2bn2,180.2bn2,180.2bn2,180.2bn

    8.1%8.1%8.1%8.1%

    2,534.0bn2,534.0bn2,534.0bn2,534.0bn

    8.2%8.2%8.2%8.2%

    Gross premium, M/S

    Growth rate (Meritz)

    Growth rate (industry)

    FY08FY08FY08FY08FY08FY08FY08FY08FY04

    1,694.8bn1,694.8bn1,694.8bn1,694.8bn

    7.9%7.9%7.9%7.9%

    2,896.4bn2,896.4bn2,896.4bn2,896.4bn

    8.3%8.3%8.3%8.3%

    � FY08 premium growth slows, but continues to beat industry averagFY08 premium growth slows, but continues to beat industry averagF