Meritz Insurance FY08 Review & FY09 Guidanceir.meritzfire.com/ir/upload/Meritz_FY08Earnings.pdf · Profit2. Profit FY07 FY07 + ordinary change Cat. reserve reversal C/R efficiency

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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

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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


SecuritiesSecuritiesSecuritiesSecurities


InvestmentInvestmentInvestmentInvestment

BankBankBankBank


AssetAssetAssetAsset

ManagementManagementManagementManagement

MeritzMeritzMeritzMeritzFinancialFinancialFinancialFinancial

InformationInformationInformationInformationServicesServicesServicesServices

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







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

9.8%9.8%9.8%9.8%

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%

8.2%8.2%8.2%8.2% 9.5%9.5%9.5%9.5%

14.5%14.5%14.5%14.5%14.8%14.8%14.8%14.8%

10.6%10.6%10.6%10.6%

Premium,Premium,Premium,Premium,

market sharemarket sharemarket sharemarket share

10101010

2 2 2 2 ---- 1. Asset1. Asset1. Asset1. Asset

FY07FY05 FY06

3,110.0bn3,110.0bn3,110.0bn3,110.0bn

7.4%7.4%7.4%7.4%

3,747.8bn3,747.8bn3,747.8bn3,747.8bn

7.8%7.8%7.8%7.8%

4,564.5bn4,564.5bn4,564.5bn4,564.5bn

8.1%8.1%8.1%8.1%


2,676.1bn2,676.1bn2,676.1bn2,676.1bn

7.2%7.2%7.2%7.2%

5,265.5bn5,265.5bn5,265.5bn5,265.5bn

8.5%8.5%8.5%8.5%

� FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)�� FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)FY08 total assets exceed W5t (invested assets W4.1t)

Total assets,Total assets,Total assets,Total assets,


Invested assetsInvested assetsInvested assetsInvested assets 2,260.3bn2,260.3bn2,260.3bn2,260.3bn

7.2%7.2%7.2%7.2%

2,554.6bn2,554.6bn2,554.6bn2,554.6bn

7.3%7.3%7.3%7.3%

3,000.4bn3,000.4bn3,000.4bn3,000.4bn

7.6%7.6%7.6%7.6%

3,624.0bn3,624.0bn3,624.0bn3,624.0bn

7.9%7.9%7.9%7.9%

4,138.3bn4,138.3bn4,138.3bn4,138.3bn

8.1%8.1%8.1%8.1%

12.3%12.3%12.3%12.3% 13.4%13.4%13.4%13.4%

14.6%14.6%14.6%14.6%

17.0%17.0%17.0%17.0%

11.8%11.8%11.8%11.8%

14.8%14.8%14.8%14.8%

16.2%16.2%16.2%16.2%

20.5%20.5%20.5%20.5%

21.8%21.8%21.8%21.8%

15.4%15.4%15.4%15.4%

Note: FY08 market share and industry growth are based on Feb 2009 (accumulated)

Total assets, M/S

Total asset growth (Meritz)

Total asset growth (industry)

Invested assets, M/S

11111111

2 2 2 2 ---- 1. Market Capitalization1. Market Capitalization1. Market Capitalization1. Market Capitalization

FY07FY05 FY06

423.4bn423.4bn423.4bn423.4bn

4.0%4.0%4.0%4.0%

556.7bn556.7bn556.7bn556.7bn

4.2%4.2%4.2%4.2%

1,208.3bn1,208.3bn1,208.3bn1,208.3bn

6.4%6.4%6.4%6.4%

Market cap, M/S

Growth rate (Meritz)

Growth rate (industry)


160.8bn160.8bn160.8bn160.8bn

2.9%2.9%2.9%2.9%

437.2bn437.2bn437.2bn437.2bn

3.5%3.5%3.5%3.5%

� Uncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, price rebounding graduallyce rebounding graduallyce rebounding graduallyce rebounding gradually�� Uncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, priUncertainties (RG, overseas investments) cleaned up in FY08, price rebounding graduallyce rebounding graduallyce rebounding graduallyce rebounding graduallyce rebounding graduallyce rebounding graduallyce rebounding graduallyce rebounding gradually

May 12, 2009May 12, 2009May 12, 2009May 12, 2009

768.8bn768.8bn768.8bn768.8bn

5.0%5.0%5.0%5.0%

10.0%10.0%10.0%10.0%

163.3%163.3%163.3%163.3%

117.0%117.0%117.0%117.0%

△△△△63.8%63.8%63.8%63.8%

78.4%78.4%78.4%78.4%

31.5%31.5%31.5%31.5%

12.3%12.3%12.3%12.3%

89.6%89.6%89.6%89.6%

24.0%24.0%24.0%24.0%

43.7%43.7%43.7%43.7%

△△△△ 33.8%33.8%33.8%33.8%

23.5%23.5%23.5%23.5%

Market cap,Market cap,Market cap,Market cap,


12121212

2 2 2 2 ---- 1. Organization1. Organization1. Organization1. Organization

FY07FY05 FY06 FY08FY08FY08FY08FY08FY08FY08FY08FY04

■■■■■■■■ Distribution Distribution Distribution Distribution Distribution Distribution Distribution Distribution

■■■■■■■■ EmployeesEmployeesEmployeesEmployeesEmployeesEmployeesEmployeesEmployees

FY07FY05 FY06 FY08FY08FY08FY08FY08FY08FY08FY08FY04

1,993

persons

10.0%

2,012

10.5%

2,000

10.7%

2,036

10.4%1,9171,9171,9171,917

9.7%9.7%9.7%9.7%

8,405

persons

8.0%

9,459

8.2%

9,081

7.9%

10,579

9.5%

18,47018,47018,47018,470

9.6%9.6%9.6%9.6%

△△△△2.2%2.2%2.2%2.2%

△△△△0.9%0.9%0.9%0.9%

12.5%12.5%12.5%12.5%

9.9%9.9%9.9%9.9%

△△△△4.0%4.0%4.0%4.0%

0.1%0.1%0.1%0.1%

△△△△ 3.5 %3.5 %3.5 %3.5 %

16.5%16.5%16.5%16.5%

74.6%74.6%74.6%74.6%

73.5%73.5%73.5%73.5%

Distribution, M/S

2.4%2.4%2.4%2.4%

2.5%2.5%2.5%2.5%

1.0%1.0%1.0%1.0%

△△△△ 3.6%3.6%3.6%3.6%

△△△△0.6%0.6%0.6%0.6%

△△△△2.5%2.5%2.5%2.5%

1.8%1.8%1.8%1.8%

3.4 %3.4 %3.4 %3.4 %

△△△△6.1%6.1%6.1%6.1%

1.0 %1.0 %1.0 %1.0 %

Growth (Meritz)

Growth (industry)

Employees, M/S

Growth (Meritz)

Growth (industry)

13131313

71.171.171.171.1

99.699.699.699.6

58.5

12.0

----58.858.858.858.8

-30.2

-42.0

57.4

56.3

(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)

FY08FY08

-181.7

2 2 2 2 ---- 2. Profit2. Profit2. Profit2. Profit

FY07FY07 FY07FY07

++

ordinary ordinary

changechange

Cat. reserve

reversalC/R

efficiencyLow

investment

yield

Organicgrowtheffect

RG lossRG lossRG lossRG lossRG lossRG lossRG lossRG loss Bad asset

write-off

Additional

DAC

amortization

Tax

Ordinary businessOrdinary businessOrdinary businessOrdinary business OneOneOneOne----off itemsoff itemsoff itemsoff items

[Net income change from FY07 to FY08][Net income change from FY07 to FY08][Net income change from FY07 to FY08][Net income change from FY07 to FY08]

-60.2

Overseas investmentOverseas investmentOverseas investmentOverseas investment

redemption 7.8redemption 7.8redemption 7.8redemption 7.8

writewritewritewrite----off 38.6off 38.6off 38.6off 38.6

credit enhancement 4.9credit enhancement 4.9credit enhancement 4.9credit enhancement 4.9

Asset revaluation 8.9Asset revaluation 8.9Asset revaluation 8.9Asset revaluation 8.9

14141414

2 2 2 2 ---- 2. Profit2. Profit2. Profit2. Profit

FY07FY07FY07FY07FY07FY07FY07FY07 FY08FY08FY08FY08FY08FY08FY08FY08 Change

Long-term underwriting profit

Auto underwriting profit

Investment

General administrati

on, etc

Commercial

underwriting profit

RG lossRG lossRG lossRG lossRG lossRG lossRG lossRG loss


71.171.171.171.1

+15.3+15.3+15.3+15.3

+22.1+22.1+22.1+22.1+7.2+7.2+7.2+7.2 ----73.073.073.073.0

--------58.858.858.858.858.858.858.858.8

+23.9+23.9+23.9+23.9----129.9129.9129.9129.9

--------125.4125.4125.4125.4125.4125.4125.4125.4

Non-operating income +2.8

tax 49.5General admin -

28.4

RG loss RG loss RG loss RG loss RG loss RG loss RG loss RG loss --------181.7181.7181.7181.7181.7181.7181.7181.7

Catastrophe reserve Catastrophe reserve Catastrophe reserve Catastrophe reserve Catastrophe reserve Catastrophe reserve Catastrophe reserve Catastrophe reserve

reversal 56.3reversal 56.3reversal 56.3reversal 56.3reversal 56.3reversal 56.3reversal 56.3reversal 56.3

Bad asset Bad asset Bad asset Bad asset

writewritewritewrite----off ,off ,off ,off ,

Etc.Etc.Etc.Etc.

Note: Underwriting profit includes sales-related expenses (acquisition, reinsurance commission)

[Net income change from FY07 to FY08][Net income change from FY07 to FY08][Net income change from FY07 to FY08][Net income change from FY07 to FY08]

15151515

2 2 2 2 ---- 3. Long3. Long3. Long3. Long----term Insurance (1)term Insurance (1)term Insurance (1)term Insurance (1)

53.5%

25.7%

18.7%

24.0% 23.3%

-0.9%

25.1%

16.3%

20.7%20.7%

FY2004 FY2005 FY2006 FY2007 FY2008

Meritz Top4

28.1%25.8% 25.7%

12.5%

15.9%

19.4%

16.3%

11.8%

19.1%

21.2%

FY2004 FY2005 FY2006 FY2007 FY2008

Meritz Top4

� Stable growth compared to topStable growth compared to topStable growth compared to topStable growth compared to top----4 average4 average4 average4 average�� Stable growth compared to topStable growth compared to topStable growth compared to topStable growth compared to topStable growth compared to topStable growth compared to topStable growth compared to topStable growth compared to top--------4 average4 average4 average4 average4 average4 average4 average4 average � 7777% edge vs top% edge vs top% edge vs top% edge vs top----4 4 4 4 for more than 5 years for more than 5 years for more than 5 years for more than 5 years �� 77777777% edge vs top% edge vs top% edge vs top% edge vs top% edge vs top% edge vs top% edge vs top% edge vs top--------4 4 4 4 4 4 4 4 for more than 5 years for more than 5 years for more than 5 years for more than 5 years for more than 5 years for more than 5 years for more than 5 years for more than 5 years

[LT initial premium growth][LT initial premium growth][LT initial premium growth][LT initial premium growth] [LT premium growth][LT premium growth][LT premium growth][LT premium growth]

16161616


[Long[Long[Long[Long----term combined ratio]term combined ratio]term combined ratio]term combined ratio]

� Combined ratio outperforming industry peers since FY06Combined ratio outperforming industry peers since FY06Combined ratio outperforming industry peers since FY06Combined ratio outperforming industry peers since FY06

� C/R 2.7%p lower than top 4 in FY08 due to lower burden from higC/R 2.7%p lower than top 4 in FY08 due to lower burden from higC/R 2.7%p lower than top 4 in FY08 due to lower burden from higC/R 2.7%p lower than top 4 in FY08 due to lower burden from highhhh----yield legacy products, yield legacy products, yield legacy products, yield legacy products,

sales sales sales sales focus on protectionfocus on protectionfocus on protectionfocus on protection----type products (lower loss ratio)type products (lower loss ratio)type products (lower loss ratio)type products (lower loss ratio)

� ProtectionProtectionProtectionProtection----type insurance: slightly higher expense ratio, but lower loss ratype insurance: slightly higher expense ratio, but lower loss ratype insurance: slightly higher expense ratio, but lower loss ratype insurance: slightly higher expense ratio, but lower loss ratiotiotiotio

� Combined ratio outperforming industry peers since FY06Combined ratio outperforming industry peers since FY06Combined ratio outperforming industry peers since FY06Combined ratio outperforming industry peers since FY06

� C/R 2.7%p lower than top 4 in FY08 due to lower burden from higC/R 2.7%p lower than top 4 in FY08 due to lower burden from higC/R 2.7%p lower than top 4 in FY08 due to lower burden from higC/R 2.7%p lower than top 4 in FY08 due to lower burden from highhhh----yield legacy products, yield legacy products, yield legacy products, yield legacy products,

sales sales sales sales focus on protectionfocus on protectionfocus on protectionfocus on protection----type products (lower loss ratio)type products (lower loss ratio)type products (lower loss ratio)type products (lower loss ratio)

� ProtectionProtectionProtectionProtection----type insurance: slightly higher expense ratio, but lower loss ratype insurance: slightly higher expense ratio, but lower loss ratype insurance: slightly higher expense ratio, but lower loss ratype insurance: slightly higher expense ratio, but lower loss ratiotiotiotio

92.2%92.2%92.2%92.2% 89.6%89.6%89.6%89.6% 85.0%85.0%85.0%85.0% 82.5%82.5%82.5%82.5% 79.1%79.1%79.1%79.1%

14.3%14.3%14.3%14.3% 17.4%17.4%17.4%17.4% 18.7%18.7%18.7%18.7% 18.8%18.8%18.8%18.8% 20.8%20.8%20.8%20.8%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Expense

ratio

Loss ratio90.4%90.4%90.4%90.4% 88.8%88.8%88.8%88.8% 86.6%86.6%86.6%86.6% 84.4%84.4%84.4%84.4% 82.5%82.5%82.5%82.5%

14.9%14.9%14.9%14.9% 15.7%15.7%15.7%15.7% 17.2%17.2%17.2%17.2% 17.3%17.3%17.3%17.3% 20.1%20.1%20.1%20.1%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Expense

ratio

Loss

ratio

[[[[MeritzMeritzMeritzMeritz]]]] [Top 4][Top 4][Top 4][Top 4]

106.5%106.5%106.5%106.5% 107.0%107.0%107.0%107.0%

99.9%99.9%99.9%99.9%

105.3%104.5% 103.7%103.7%103.7%103.7%

101.3%101.3%101.3%101.3%

102.6%

103.8%

101.7%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Meritz Top4

17171717


[Risk premium mix, by underwriting year][Risk premium mix, by underwriting year][Risk premium mix, by underwriting year][Risk premium mix, by underwriting year]

[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 fiscal year][Loss ratio, by fiscal year][Loss ratio, by fiscal year][Loss ratio, by fiscal year]

[Unit: %]

FY05 FY08FY07FY06

27.8

29.9

17.8

24.5

22.1

32.6

18.7

26.6

16.3

34.9

20.7

28.2164.5bn

229.9bn

308.4bn

395.6bn

40.733.6

113.7106.4 109.7

78.676.5

44.644.2

52.451.247.464.3

108.7

94.0

68.568.2 76.2

73.6

70.6

FY05 FY06 FY07 FY08

(Unit : %)

Death Liabilities Life(g) Life(ng) Total

36.5

23.5

30.7

9.3

54.2

[Unit: %]

UY05 UY08UY07UY06

37.237.237.237.2

22.822.822.822.8

19.319.319.319.3

20.720.720.720.7

33.433.433.433.4

24.024.024.024.0

18.118.118.118.1

24.524.524.524.5

26.526.526.526.5

31.231.231.231.2

18.218.218.218.2

24.024.024.024.0

24.324.324.324.3

31.931.931.931.9

21.421.421.421.4

22.422.422.422.4

37.4bn37.4bn37.4bn37.4bn

55.3bn55.3bn55.3bn55.3bn

67.2bn67.2bn67.2bn67.2bn

90.7bn90.7bn90.7bn90.7bn

Life (non-guaranteed)

Life (guaranteed)

Liabilities/property

Death

43.8

42.2

42.6

40.0

48.9

45.3

42.3Life(none-guaranteed)Life(guaranteed)Liabilities/property

Death

18181818


Total 100.00%Total 100.00%Total 100.00%Total 100.00%

Savings 17.68%Savings 17.68%Savings 17.68%Savings 17.68%

Accident 63.52%Accident 63.52%Accident 63.52%Accident 63.52%

Property 6.51%Property 6.51%Property 6.51%Property 6.51%

Drivers 10.53%Drivers 10.53%Drivers 10.53%Drivers 10.53%

Disease 0.01%Disease 0.01%Disease 0.01%Disease 0.01%

Pension 1.76%Pension 1.76%Pension 1.76%Pension 1.76%

AssumptionAssumptionAssumptionAssumption

□□□□ Project period: 30 yearsProject period: 30 yearsProject period: 30 yearsProject period: 30 years

□□□□ Discount rate: 11.5 %Discount rate: 11.5 %Discount rate: 11.5 %Discount rate: 11.5 %

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

□□□□ Tax rate: 27.5%Tax rate: 27.5%Tax rate: 27.5%Tax rate: 27.5%

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

□□□□ Required capital: 150% of solvency guidelineRequired capital: 150% of solvency guidelineRequired capital: 150% of solvency guidelineRequired capital: 150% of solvency guideline

[Profit margin by coverage][Profit margin by coverage][Profit margin by coverage][Profit margin by coverage]

Coverage

Agency 30.0%Agency 30.0%Agency 30.0%Agency 30.0%

Other channel 70.0%

10.6%10.6%10.6%10.6%

9.9%9.9%9.9%9.9%

10.4%10.4%10.4%10.4%

7.2%7.2%7.2%7.2%

11.2%11.2%11.2%11.2%

10.7%10.7%10.7%10.7%

10.4%10.4%10.4%10.4%

11.6%11.6%11.6%11.6%

1.5%1.5%1.5%1.5%

New contract %

Profit MarginProfit MarginProfit MarginProfit Margin

19191919

2 2 2 2 ---- 3. Auto Insurance3. Auto Insurance3. Auto Insurance3. Auto Insurance

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

� Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since FY07FY07FY07FY07

---- Rising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratio

---- Rapid improvement in Rapid improvement in Rapid improvement in Rapid improvement in ““““loss cost,loss cost,loss cost,loss cost,”””” lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio →→→→ suggests further improvementsuggests further improvementsuggests further improvementsuggests further improvement

�� Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since Loss ratio shrinking since FY07FY07FY07FY07FY07FY07FY07FY07

-------- Rising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratioRising average premium leads to improvement in FY07 loss ratio

-------- Rapid improvement in Rapid improvement in Rapid improvement in Rapid improvement in Rapid improvement in Rapid improvement in Rapid improvement in Rapid improvement in ““““““““loss cost,loss cost,loss cost,loss cost,loss cost,loss cost,loss cost,loss cost,”””””””” lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio lower FY08 loss ratio →→→→→→→→ suggests further improvementsuggests further improvementsuggests further improvementsuggests further improvementsuggests further improvementsuggests further improvementsuggests further improvementsuggests further improvement

75.1%

78.5%

74.2%

69.9%

0.5%

13.3%

3.1%

5.7%

6.8%8.2%9.3%

1.6%

FY2005 FY2006 FY2007 FY2008

L/R Average rate G/R Loss Cost G/R

76.2%76.2%76.2%76.2%75.1%75.1%75.1%75.1% 74.2%74.2%74.2%74.2%

69.9%69.9%69.9%69.9%71.9%71.9%71.9%71.9%

77.5%77.5%77.5%77.5%

71.4%71.4%71.4%71.4%

68.3%68.3%68.3%68.3%

78.5%78.5%78.5%78.5%

76.0%76.0%76.0%76.0%

4.3%4.3%4.3%4.3%

2.8%2.8%2.8%2.8%

1.6%1.6%1.6%1.6%

1.0%1.0%1.0%1.0%

-0 .9%-0 .9%-0 .9%-0 .9%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Meritz Top 4 Gap

[Industry loss ratio][Industry loss ratio][Industry loss ratio][Industry loss ratio]

20202020

2 2 2 2 ---- 3. Commercial Insurance3. Commercial Insurance3. Commercial Insurance3. Commercial Insurance

[Commercial loss ratio trend][Commercial loss ratio trend][Commercial loss ratio trend][Commercial loss ratio trend]

� Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4�� Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained Even without captive market, commercial loss ratio has remained at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4at only 2%p higher than top 4

43.5%43.5%43.5%43.5%

49.1%49.1%49.1%49.1%

53.0%53.0%53.0%53.0%

59.8%59.8%59.8%59.8% 60.2%60.2%60.2%60.2%

48.5%48.5%48.5%48.5%47.0%47.0%47.0%47.0%

50.9%50.9%50.9%50.9%

54.2%54.2%54.2%54.2%

58.4%58.4%58.4%58.4%

-5.0%-5.0%-5.0%-5.0%

1.8%1.8%1.8%1.8%

5.6%5.6%5.6%5.6%

2.1%2.1%2.1%2.1%2.1%2.1%2.1%2.1%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Meritz Top 4 Gap

43.5%49.1%

53.0%59.8%

189.9%

61.1%

FY2004 FY2005 FY2006 FY2007 FY2008 (Before RG)

[Industry loss ratio][Industry loss ratio][Industry loss ratio][Industry loss ratio]

21212121

2 2 2 2 ---- 3. Administration Cost Efficiency3. Administration Cost Efficiency3. Administration Cost Efficiency3. Administration Cost Efficiency

� Wage reduction, laborWage reduction, laborWage reduction, laborWage reduction, labor----management collaboration management collaboration management collaboration management collaboration

→→→→ Administration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses top----4 companies 4 companies 4 companies 4 companies

�� Wage reduction, laborWage reduction, laborWage reduction, laborWage reduction, laborWage reduction, laborWage reduction, laborWage reduction, laborWage reduction, labor--------management collaboration management collaboration management collaboration management collaboration management collaboration management collaboration management collaboration management collaboration

→→→→→→→→ Administration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses topAdministration cost efficiency surpasses top--------4 companies 4 companies 4 companies 4 companies 4 companies 4 companies 4 companies 4 companies

11.8%11.8%11.8%11.8%

14.5%14.5%14.5%14.5% 14.3%14.3%14.3%14.3%

13.3%13.3%13.3%13.3%

12.5%12.5%12.5%12.5%

12.9%

12.1%

12.4%12.0%

13.6%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Meritz Top 4

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

22222222

2 2 2 2 ---- 3. Underwriting Profit 3. Underwriting Profit 3. Underwriting Profit 3. Underwriting Profit ---- OverallOverallOverallOverall

-14.8bn

-77.2bn

-116.0bn-114.1bn

-87.2bn

105.4%106.3%

105.5%

100.6%

102.8%

FY2004 FY2005 FY2006 FY2007 FY2008

U/W Profit/Loss C/R

105.4%

106.3%105.5%

102.8%

100.8%102.3%

103.3%103.9%

100.7% 100.4%

FY2004 FY2005 FY2006 FY2007 FY2008.2

Meritz Top 4

[Underwriting profit & C/R][Underwriting profit & C/R][Underwriting profit & C/R][Underwriting profit & C/R] [Industry Combined Ratio][Industry Combined Ratio][Industry Combined Ratio][Industry Combined Ratio]

[Premium Mix by Line][Premium Mix by Line][Premium Mix by Line][Premium Mix by Line]

45.3%52.3% 56.6% 61.2% 63.9%

38.9%33.1%

30.8% 27.1% 25.1%

15.8% 14.6% 12.6% 11.7% 11.0%

FY2004 FY2005 FY2006 FY2007 FY2008

Commercial

Auto

Long-term

Note: Before catastrophe reserve

FY08 excludes RG loss, non-deferrable additional acquisition cost (W30.2bn)

23232323

2 2 2 2 ---- 3. Investment3. Investment3. Investment3. Investment

2.82.82.82.8106.2106.2106.2106.2----100.0%100.0%100.0%100.0%14.2%14.2%14.2%14.2%4,138.34,138.34,138.34,138.3Investment assetsInvestment assetsInvestment assetsInvestment assets

-0.3-1.44.9%p16.0%64.7%662.4Real estateReal estateReal estateReal estate

6.430.72.0%p13.7%33.3%568.8LoansLoansLoansLoans

-3.2-2.40.5%p2.2%48.0%89.8OtherOtherOtherOther

-8.8-32.22.7%p10.3%54.8%427.4Overseas securitiesOverseas securitiesOverseas securitiesOverseas securities

2.914.8-1.8%p12.5%-0.3%516.6Investment fundsInvestment fundsInvestment fundsInvestment funds

2.6%6.70.6%p6.9%24.9%285.7StockStockStockStock

5.7%79.6-9.1%p32.6%-10.7%1,349.3Domestic bondDomestic bondDomestic bondDomestic bond

4.8%10.40.2%p5.8%18.6%238.3Cash & equivalentsCash & equivalentsCash & equivalentsCash & equivalents

yoyyoyYieldYieldYieldYieldIncomeIncomeIncomeIncome

% in portfolio% in portfolio% in portfolio% in portfolioAssetAssetAssetAsset(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)

[Investment income excluding one[Investment income excluding one[Investment income excluding one[Investment income excluding one----off items]off items]off items]off items]

166.4

4.4%-60.2bn-8.9bn-4.9bn-38.6bn-7.8bn

106.2bn

2.8%

SubSubSubSub----totaltotaltotaltotalAsset Asset Asset Asset

revaluationrevaluationrevaluationrevaluation

Credit Credit Credit Credit

enhancementenhancementenhancementenhancementWriteWriteWriteWrite----offoffoffoffRedemptionRedemptionRedemptionRedemption

Before Before Before Before

oneoneoneone----off off off off

itemitemitemitem

OneOneOneOne----off itemoff itemoff itemoff item

FY08FY08FY08FY08

liquidity managementliquidity managementliquidity managementliquidity management

lowlowlowlow----risk assets W285.4bnrisk assets W285.4bnrisk assets W285.4bnrisk assets W285.4bn

(principal protected notes, etc)(principal protected notes, etc)(principal protected notes, etc)(principal protected notes, etc)

Asset revaluation W235.4bnAsset revaluation W235.4bnAsset revaluation W235.4bnAsset revaluation W235.4bn

[FY08 Investment][FY08 Investment][FY08 Investment][FY08 Investment]

24242424

2 2 2 2 ---- 3. Investment (1)3. Investment (1)3. Investment (1)3. Investment (1)

[Investment [Investment [Investment [Investment –––– Movement Analysis]Movement Analysis]Movement Analysis]Movement Analysis]

----60.2 60.2 60.2 60.2 bnbnbnbn

179.2

5.6%

106.2106.2106.2106.2

2.8%2.8%2.8%2.8%

-38.6

-7.8-4.9

-8.9

29.2 -42.0

average

asset

W569bn↑

without

one-off items

1.2%p↓ yoy

FY07FY07FY07FY07 OverseasOverseasOverseasOverseas

investmentinvestmentinvestmentinvestment

writewritewritewrite----offoffoffoff

OverseasOverseasOverseasOverseasinvestmentinvestmentinvestmentinvestment

credit credit credit credit enhancementenhancementenhancementenhancement

AssetAssetAssetAsset

revaluationrevaluationrevaluationrevaluationSize effectSize effectSize effectSize effect Yield dropYield dropYield dropYield drop FY08FY08FY08FY08OverseasOverseasOverseasOverseas


redemptionredemptionredemptionredemption

25252525


[Investment: peer group analysis][Investment: peer group analysis][Investment: peer group analysis][Investment: peer group analysis]

5.3%

6.3%6.0%

6.4%

5.9%5.6%

4.7%

5.4%

5.9%

5.3% 5.4% 5.4%5.0%

3.0%

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008.2

Meritz Top 4 1.2

0.4

MeritzMeritzMeritzMeritz Top 4Top 4Top 4Top 4

[FY02~FY08 Average Investment Yield][FY02~FY08 Average Investment Yield][FY02~FY08 Average Investment Yield][FY02~FY08 Average Investment Yield]

[FY02~FY08 Volatility of Investment Yield][FY02~FY08 Volatility of Investment Yield][FY02~FY08 Volatility of Investment Yield][FY02~FY08 Volatility of Investment Yield]

Note: FY08 = Apr 2008~Feb 2009 data; volatility is standard deviation

5.5 5.3

MeritzMeritzMeritzMeritz Top 4Top 4Top 4Top 4

Note: Figures for FY08 are cumulative data over Apr 2008~Feb 2009

26262626


� FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:�� FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:FY08 investment yield plummets due to:

-2.9%4.5%Top 4

-9.5%7.6%Meritz

FY08

yield

FY08

starting balance

[Overseas investment][Overseas investment][Overseas investment][Overseas investment]

6.6%1.2%Top 4

0.8%9.4%Meritz

FY08

yield

FY08

starting balance

[Trading securities excluding overseas investment][Trading securities excluding overseas investment][Trading securities excluding overseas investment][Trading securities excluding overseas investment]

1) high concentration of overseas investment1) high concentration of overseas investment1) high concentration of overseas investment1) high concentration of overseas investment

(lower investment yield)(lower investment yield)(lower investment yield)(lower investment yield)

1) high concentration of overseas investment1) high concentration of overseas investment1) high concentration of overseas investment1) high concentration of overseas investment

(lower investment yield)(lower investment yield)(lower investment yield)(lower investment yield)

2) securities classified into trading securities,2) securities classified into trading securities,2) securities classified into trading securities,2) securities classified into trading securities,

where profit directly related to bottom linewhere profit directly related to bottom linewhere profit directly related to bottom linewhere profit directly related to bottom line

2) securities classified into trading securities,2) securities classified into trading securities,2) securities classified into trading securities,2) securities classified into trading securities,

where profit directly related to bottom linewhere profit directly related to bottom linewhere profit directly related to bottom linewhere profit directly related to bottom line

Note: yield: Feb 2009

27272727


[FY08 bad asset clearance][FY08 bad asset clearance][FY08 bad asset clearance][FY08 bad asset clearance]

●●●● HighHighHighHigh----risk overseas securities: redemption, writerisk overseas securities: redemption, writerisk overseas securities: redemption, writerisk overseas securities: redemption, write----off, and credit enhancementoff, and credit enhancementoff, and credit enhancementoff, and credit enhancement

151.4

203.4

-3.3

-47.6

3.4

-43.9

34.3

7.4

-2.3

ChangeChangeChangeChange

-427.4276.1Total

98.6%203.40Korean Paper

97.7%60.163.3Simple

structured

85.7%23.471.0Note

100.0%8.45.0PEF

98.1%34.778.6Fund

74.8%71.036.7CLN-FTD

64.7%22.815.4CLN-SCDO

125.5%3.76.0CDO/CLO

NAVNAVNAVNAVMar Mar Mar Mar ’’’’09090909Mar Mar Mar Mar ’’’’08080808

AssetAssetAssetAsset(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)

Note) NAV : net asset value

40.9

60.4

94.9

59.5

67.9

36.4

66.9

77.1

Mar 08 Sep Dec Nov Dec Jan 09 Feb Mar

AFS valuation loss

Write-off : CDO/CLO 20.5bn,

CLN-SCDO 15.9bn,

CLN-FTD 5bn credit change,

Fund 6.7, Note 1.1 redemption

Purchase collateral

bond of CLN-FTD

(CLN-SCDO 9.9bn↑)

Purchase

CLN-SCDO

21.9bn

28282828


[FY08 bad asset clearance][FY08 bad asset clearance][FY08 bad asset clearance][FY08 bad asset clearance]

●●●● Trading securities

●●●● Fixed income asset

-220.5249.1469.6TotalTotalTotalTotal

3.364.060.7OthersOthersOthersOthers

Mar Mar Mar Mar ’’’’09090909

BondBondBondBond

-119.09.6128.6OverseasOverseasOverseasOverseas

-94.6175.5270.1Investment

funds

-0.500.5StockStockStockStock

-9.709.7

ChangeChangeChangeChangeMar Mar Mar Mar ’’’’08080808(Wbn)(Wbn)(Wbn)(Wbn)A.I. : 63.2bn

MMF : 112.3bn

Redemption completed : 10.6bn

Maturity schedule: May09 : 6.7 / June : 7.2 / July : 10

Aug : 10 / Dec : 5

Jul 2010 : 14.4

Redemption completed : 27.4bnAug 09 maturity: 10.7bn

Jan 12 maturity : 19.2bn

In the process : 5.8bn

-

-

-

-

-

6.06%

yieldyieldyieldyield(Unit: KRW (Unit: KRW (Unit: KRW (Unit: KRW bnbnbnbn))))

Total investment assetTotal investment assetTotal investment assetTotal investment asset

Equity-method & real estate

SubSubSubSub----totaltotaltotaltotal

-

-

-

100%

-

100%

0.1%p

0.9%p

-5.6%p

4.6%p

MixMixMixMix

1.3%

10.2%

4.1%

84.4%

MixMixMixMix

1.2%

9.3%

9.7%

79.8%

MixMixMixMix

StockStockStockStock----type assettype assettype assettype asset

Performance-based asset

FixedFixedFixedFixed----income assetincome assetincome assetincome asset

OtherOtherOtherOther

-805.7534.4

244.03,332.63,089.6

6.943.938.3

50.0338.9287.6

-161.0137.9298.9

347.1


4,138.3

2,811.9


3,624.0

2,464.8


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

Income Income Income Income

volatilityvolatilityvolatilityvolatility↓↓↓↓

29292929

� FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2%

---- Deserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2nd----tier average: 190.7%) tier average: 190.7%) tier average: 190.7%) tier average: 190.7%)

�� FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2% FY08 solvency ratio: 190.2%

-------- Deserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2ndDeserves its place in 2nd tier, even with RG loss (2nd--------tier average: 190.7%) tier average: 190.7%) tier average: 190.7%) tier average: 190.7%) tier average: 190.7%) tier average: 190.7%) tier average: 190.7%) tier average: 190.7%)

-19.3%p

-24.9%p

+70.9%p

-45.1%p

-23.1%p

--48.7%p48.7%p235.3%235.3%235.3%235.3%

190.2% 190.2% 190.2% 190.2%

238.9% 238.9% 238.9% 238.9%

2 2 2 2 ---- 4. Solvency4. Solvency4. Solvency4. Solvency

FY07FY07FY07FY07FY07FY07FY07FY07

Share Share Share Share

buybuybuybuy----backbackbackback

Asset Asset Asset Asset

revaluationrevaluationrevaluationrevaluation


(after RG)(after RG)(after RG)(after RG)(after RG)(after RG)(after RG)(after RG)

AFS/derivativesAFS/derivativesAFS/derivativesAFS/derivatives

valuationvaluationvaluationvaluation

Solvency ratio Solvency ratio Solvency ratio Solvency ratio

excluding RG lossexcluding RG lossexcluding RG lossexcluding RG loss

ㆍㆍㆍㆍㆍㆍㆍㆍSolvency: 662.5bnSolvency: 662.5bnSolvency: 662.5bnSolvency: 662.5bnSolvency: 662.5bnSolvency: 662.5bnSolvency: 662.5bnSolvency: 662.5bn

ㆍㆍㆍㆍㆍㆍㆍㆍSolvency guidance: 281.6bnSolvency guidance: 281.6bnSolvency guidance: 281.6bnSolvency guidance: 281.6bnSolvency guidance: 281.6bnSolvency guidance: 281.6bnSolvency guidance: 281.6bnSolvency guidance: 281.6bn

ㆍㆍㆍㆍㆍㆍㆍㆍSolvency : 614.9 Solvency : 614.9 Solvency : 614.9 Solvency : 614.9 Solvency : 614.9 Solvency : 614.9 Solvency : 614.9 Solvency : 614.9 bnbnbnbnbnbnbnbn

ㆍㆍㆍㆍㆍㆍㆍㆍSolvency guideline : 323.3 Solvency guideline : 323.3 Solvency guideline : 323.3 Solvency guideline : 323.3 Solvency guideline : 323.3 Solvency guideline : 323.3 Solvency guideline : 323.3 Solvency guideline : 323.3 bnbnbnbnbnbnbnbn

yoyyoyyoyyoyyoyyoyyoyyoy

OrganicOrganicOrganicOrganic

growthgrowthgrowthgrowth

effecteffecteffecteffect


30303030







1111

2222

3333

※※※※

4444

31313131

3 3 3 3 ---- 1. Strategy and Targets1. Strategy and Targets1. Strategy and Targets1. Strategy and Targets

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

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

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

� Newly organized as “solid underwriting company”

⇒ Aiming to be the best underwriting company, rather than “sales at any cost”

� Newly organized as “solid underwriting company”

⇒ Aiming to be the best underwriting company, rather than “sales at any cost”

32323232

3 3 3 3 ---- 2. Sales2. Sales2. Sales2. Sales

0.4%p8.7%11.7%3,2366.5%37,055Total

-3.3%p3.0%-46.1%313.1%100Lump-sum payment

0.4%p9.6%16.8%2,15312.1%22,400

0.4%p9.6%16.9%2,06812.4%21,550Recurring

New contract 0.7%p10.0%12.6%855.3%850LongLongLongLongtermtermtermterm

0.3%p6.9%1.8%740-2.3%10,680AutoAutoAutoAuto

6.2%

G/RG/RG/RG/R

8.8%

M/SM/SM/SM/S

-0.3%p3402.5%3,875CommercialCommercialCommercialCommercial

M/S M/S M/S M/S yoyyoyyoyyoyG/RG/RG/RG/R

MeritzMeritzMeritzMeritzMarketMarketMarketMarket(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)

fire, cargo, engineering: shrinking global trade and capex, severe price competition

aviation, casualty/liability: demand from low-end airlines, boost in product liability market

Downside

• Life insurers refocus on protection insurance from financial type

• Falling bancassurance market, burdensome high growth in FY08Downside

• Reallocation of marketing resources from commercial/auto to long-term

• Smoother solicitor recruitment due to recession and unemploymentUpside

LongLongLongLong----termtermtermterm

new contractnew contractnew contractnew contract

• Recession → stagnant car sales

• On-line market expansion Zero or negative growth

• Contribution from ‘hit-and-run’ accident relief fund will be reduced

AutoAutoAutoAuto

UpsideCommercialCommercialCommercialCommercial

Market outlookMarket outlookMarket outlookMarket outlook

33333333

3 3 3 3 ---- 3. Long3. Long3. Long3. Long----term Insurance Loss Ratio (1)term Insurance Loss Ratio (1)term Insurance Loss Ratio (1)term Insurance Loss Ratio (1)

[Long[Long[Long[Long----term premium mix, L/R trend and forecast]term premium mix, L/R trend and forecast]term premium mix, L/R trend and forecast]term premium mix, L/R trend and forecast]

Note: Based on net premium written

L/RL/RL/RL/RMixMixMixMix

RiskRiskRiskRiskLoadingLoadingLoadingLoading SavingsSavingsSavingsSavings

89.5%84.8%

82.3%78.6%

FY2005FY2005FY2005FY2005 FY2006FY2006FY2006FY2006 FY2007FY2007FY2007FY2007 FY2008FY2008FY2008FY2008 FY2009FY2009FY2009FY2009

82.2%

80.6%80.6%80.6%80.6%

78.2%77.1%

80.5%

108.8% 101.5%101.5%101.5%101.5%106.8% 106.7% 102.9%

14.4%

13.4%

72.2%

16.3%

15.7%

68.0%

18.1%

16.9%

64.9%

19.5%

19.0%

61.5%

20.1%

20.9%

59.0%

76.7%76.7%76.7%76.7%

34343434


[Long[Long[Long[Long----term risk premium loss ratio trend and forecast]term risk premium loss ratio trend and forecast]term risk premium loss ratio trend and forecast]term risk premium loss ratio trend and forecast]

80.6%80.5%77.1%78.2%82.2%Loss ratioNet premium written

81.0%80.8%77.6%78.8%82.7%Loss ratioGross premium total

3.1%4.6%3.8%8.1%6.2%Loss ratioIBNR

4.0%3.5%4.3%5.2%9.7%Loss ratioHigh claim

73.9%72.7%69.6%65.5%66.8%Loss ratioSub-total

83.1%81.0%78.2%75.0%74.0%Loss ratioRecurring

(2nd year~)

53.8%54.5%55.1%51.2%54.5%Loss ratio

31.4%33.8%37.3%40.0%37.0%Premium

portion1st year

Ordinary

claim

Gross

premium

FY09FY09FY09FY09FY08FY08FY08FY08FY07FY07FY07FY07FY06FY06FY06FY06FY05FY05FY05FY05

35353535

[Long[Long[Long[Long----term savings premium loss ratio trend and forecast]term savings premium loss ratio trend and forecast]term savings premium loss ratio trend and forecast]term savings premium loss ratio trend and forecast]

Funding Funding Funding Funding

costcostcostcost

ReserveReserveReserveReserve

mixmixmixmixReserveReserveReserveReserve


costcostcostcost




costcostcostcost



4.97%

4.50%

4.23%

5.63%

7.32%

3.90%

----

100.0%

83.9%

16.1%

6.8%

9.3%

----

100.0%

76.6%

23.4%

13.6%

9.8%

FY07FY07FY07FY07

FixedFixedFixedFixed

~ 4.5%

Average rateAverage rateAverage rateAverage rate


4.44%------------4.81%----

4.37%3,858.2100.0%3,262.74.80%2,797.1TotalTotalTotalTotal

4.20%3,237.080.7%2,633.54.45%2,141.4FloatingFloatingFloatingFloating

5.26%621.219.3%629.15.95%655.6Sub-total

7.25%263.19.8%318.17.44%381.0Over

4.5%

3.80%358.09.5%311.03.88%274.6


� Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% →→→→ 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : ----0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% →→→→ 4.44%)4.44%)4.44%)4.44%)

� Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps →→→→ interest cost savings interest cost savings interest cost savings interest cost savings 19bn 19bn 19bn 19bn →→→→ change in change in change in change in L/R: L/R: L/R: L/R: ----1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% →→→→ 101.5%)101.5%)101.5%)101.5%)

�� Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% Floating portion: +3.2%p ( 80.7% →→→→→→→→ 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : 83.9%) / average rate : --------0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% 0.53%p ( 4.97% →→→→→→→→ 4.44%)4.44%)4.44%)4.44%)4.44%)4.44%)4.44%)4.44%)

�� Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps Average rate drop 53bps →→→→→→→→ interest cost savings interest cost savings interest cost savings interest cost savings 19bn 19bn 19bn 19bn 19bn 19bn 19bn 19bn →→→→→→→→ change in change in change in change in L/R: L/R: L/R: L/R: L/R: L/R: L/R: L/R: --------1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% 1.4%p ( 102.9% →→→→→→→→ 101.5%)101.5%)101.5%)101.5%)101.5%)101.5%)101.5%)101.5%)


36363636

3 3 3 3 ---- 3. Auto Loss Ratio 3. Auto Loss Ratio 3. Auto Loss Ratio 3. Auto Loss Ratio

6.0%

10.7%

4.0%

1.5%

6.8%

2.8%

5.7%

13.3%

FY2006 FY2007 FY2008 FY2009

Average rate G/ R(gross premium)

Average rate G/ R(earned premium)75.1%

78.5%

69.9% 70.0%

74.2%

5.7%

13.3%

6.8%

9.3%

0.5% 2.8%

3.1%2.9%

8.2%

1.6%

FY2005 FY2006 FY2007 FY2008 FY2009

L/R

Average rate

Loss cost

1.5%4.0%10.7%6.0%Average Average Average Average

premium premium premium premium

-1.0%---Auto

accident relief fund

2.5%3.0%1.7%0.4%OthersOthersOthersOthers

-1.0%8.9%5.6%

Rate adjustme

nt

FY09FY09FY09FY09FY08FY08FY08FY08FY07FY07FY07FY07FY06FY06FY06FY06FactorsFactorsFactorsFactors

� Loss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scale

� 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio

→→→→ Target for Target for Target for Target for MeritzMeritzMeritzMeritz at the same timeat the same timeat the same timeat the same time

�� Loss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scaleLoss cost not expected to change in big scale

�� 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio 70% or less is achievable loss ratio

→→→→→→→→ Target for Target for Target for Target for Target for Target for Target for Target for MeritzMeritzMeritzMeritzMeritzMeritzMeritzMeritz at the same timeat the same timeat the same timeat the same timeat the same timeat the same timeat the same timeat the same time

[Premium rate per unit: 1.5% up][Premium rate per unit: 1.5% up][Premium rate per unit: 1.5% up][Premium rate per unit: 1.5% up]

[Average rate : 2.8% up][Average rate : 2.8% up][Average rate : 2.8% up][Average rate : 2.8% up]

37373737


Commercial L/RCommercial L/RCommercial L/RCommercial L/R

61.1%

57.5%57.5%57.5%57.5%

3.6%p3.6%p3.6%p3.6%p↓↓↓↓

※ FY08: excluding RG loss

3 3 3 3 ---- 3. Commercial Insurance Loss Ratio3. Commercial Insurance Loss Ratio3. Commercial Insurance Loss Ratio3. Commercial Insurance Loss Ratio

� Stable casualty line loss ratioStable casualty line loss ratioStable casualty line loss ratioStable casualty line loss ratio

� Stabilizing forex ratesStabilizing forex ratesStabilizing forex ratesStabilizing forex rates

� Stop underwriting overseas Stop underwriting overseas Stop underwriting overseas Stop underwriting overseas inwardinwardinwardinward treatytreatytreatytreaty

� Portfolio review for group casualty linePortfolio review for group casualty linePortfolio review for group casualty linePortfolio review for group casualty line

Reasons for lower commercial loss ratioReasons for lower commercial loss ratioReasons for lower commercial loss ratioReasons for lower commercial loss ratioReasons for lower commercial loss ratioReasons for lower commercial loss ratioReasons for lower commercial loss ratioReasons for lower commercial loss ratio

38383838

3 3 3 3 ---- 3. Sales Cost3. Sales Cost3. Sales Cost3. Sales Cost

45.3%33.5% 28.4%

21.5%

17.6%

22.1%23.9%

30.9% 34.8%

12.4%14.9% 17.6% 19.4%

24.8% 29.5% 30.1% 28.2%

FY2005 FY2006 FY2007 FY2008 FY2009

FC

TC

GA

Other

s

h=g-e

g

f

e=d-c

d

c=a-b

b

a

25.930.20Overflow

464.3408.4317.9Acquisition cost to be

deferred

467.1410.7319.0Acquisition cost incurred

438.3378.1325.5Deferrable amount

515.4

189.9

166.1

356.0

FY07FY07FY07FY07

347.0267.5After amortization DAC

785.3

298.6

645.6

FY09(e)FY09(e)FY09(e)FY09(e)

Limit to defer

Amortization (excluding overflow amount)

Starting unamortized DAC


645.6

234.7

502.2

FY08FY08FY08FY08

Net premium method reserve – cancellation method reserve

Term amortization from normal contract

Lump-sum amortization from cancellation

CommentCommentCommentComment

[LT sales cost (overflow[LT sales cost (overflow[LT sales cost (overflow[LT sales cost (overflow----amortization)]amortization)]amortization)]amortization)]

[New contract [New contract [New contract [New contract mixmixmixmix by line]by line]by line]by line]

47.1%

18.1%

39393939

3 3 3 3 ---- 3. Administration Cost3. Administration Cost3. Administration Cost3. Administration Cost

+9.1

+4.8

+16.3

-12.5


-1.0%10.9%11.9%2.9%320.5311.5AdministrationAdministrationAdministrationAdministration

+0.1%0.6%0.5%37.5%17.512.7Other

-0.1%5.4%5.5%11.3%160.3144.0General admin

-1.1%4.9%6.0%-8.0%142.7155.2Wages

GapGapGapGapG/RG/RG/RG/R



Expense ratioExpense ratioExpense ratioExpense ratioExpenseExpenseExpenseExpense

( Unit: Wbn )( Unit: Wbn )( Unit: Wbn )( Unit: Wbn )

� Wages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (freeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, change

in severance scheme (progressivein severance scheme (progressivein severance scheme (progressivein severance scheme (progressive→→→→ single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% ↓↓↓↓))))

� General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs

�� Wages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (frWages: to be reduced via cooperation of management and labor (freeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, changeeeze on FY09 salaries, change

in severance scheme (progressivein severance scheme (progressivein severance scheme (progressivein severance scheme (progressivein severance scheme (progressivein severance scheme (progressivein severance scheme (progressivein severance scheme (progressive→→→→→→→→ single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% single), expense ratio 1.1% ↓↓↓↓↓↓↓↓))))))))

�� General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1General administration: gen admin expense ratio to decrease 0.1%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs%p on lower fixed costs

[FY09 administration costs][FY09 administration costs][FY09 administration costs][FY09 administration costs]

40404040

3 3 3 3 ---- 3. Investment3. Investment3. Investment3. Investment

� Focus on fixedFocus on fixedFocus on fixedFocus on fixed----income asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment income

� PerforPerforPerforPerformance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudently invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economy

�� Focus on fixedFocus on fixedFocus on fixedFocus on fixedFocus on fixedFocus on fixedFocus on fixedFocus on fixed--------income asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment incomeincome asset for stable investment income

�� PerforPerforPerforPerforPerforPerforPerforPerformance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudenmance based, stock asset prudently invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economytly invested according to 2H macro economy

→→→→16.6bn/month

→→→→ conservative approach

→→→→ 15.4bn/month

198.84.56%4,779.1Ending bal.

4,138.3Starting bal.Total Total Total Total


14.61.06%1,442.1Ending bal.

1,326.4Starting bal.OtherOtherOtherOther

184.23,337.0Total

13.85.00%525.1New investment

170.46.06%2,811.9Starting balance

Fixed Fixed Fixed Fixed

income income income income

assetassetassetasset

IncomeIncomeIncomeIncomeYieldYieldYieldYieldAssetAssetAssetAsset

41414141

3 3 3 3 ---- 3. P&L3. P&L3. P&L3. P&L

yoyyoyyoyyoy

43.9%p

n.a.

n.a.

n.a.

87.2%

1.8%p

n.a.

-0.6%p

-2.1%p

0.1%p

-132.4%p

-8.3%p

16.6%(0.4%p)

1.8 %(0.3%p)

6.2 %(0.3%p)

11.7 %(0.4%p)

-16.1%27.8%Adjusted ROE

-99.1155.9Adjusted net income

-40.217.1Increase in Catastrophe Reserves

-58.8138.8138.8138.8138.8Net incomeNet incomeNet incomeNet income

106.2

2.8%

198.8

4.6%

Investment income

Yield

Long-term

Auto

Commercial

-186.4-12.0Underwriting income

26.2%25.6%Expense ratio

78.8%76.7%

69.9%70.0%

189.9%57.5%

82.5%74.2%Loss ratio

1,849.6 (9.2%)2,156.2 (9.6 %)Long-term (market share)

726.7 (6.6%)740.0 (6.9 %)Auto (market share)

320.0 (8.5%)340.0 (8.8 %)Commercial (market share)

2,896.4 (8.3%)3,236.2 (8.7 %)Gross premiums (market share)

FY08FY08FY08FY08FY09FY09FY09FY09(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)

42424242

3 3 3 3 ---- 3. Balance Sheet3. Balance Sheet3. Balance Sheet3. Balance Sheet

323.311.0%358.8Solvency guideline

614.930.4%801.6Solvency amount

190.2%33.2%p223.4%Solvency margin ratio

-281--32.1Capital adjustment

157.489.3%298.0Retained earnings

234.40.2%234.9Capital surplus

61.90.0%61.9Capital

425.632.2%562.7Total shareholders’ equity

537.48.2%581.6Other liabilities

105.818.6%125.5Catastrophe reserves

4,196.612.1%4,702.4Policy reserves

4,839.811.8%5,409.5Total liabilities

1,127.15.9%1,193.1Non-invested asset

4,138.315.5%4,779.1Investment asset

5,265.513.4%5,972.2Total asset

G/RG/RG/RG/R

FY08FY08FY08FY08FY09 FY09 FY09 FY09 (Unit: Wbn)(Unit: Wbn)(Unit: Wbn)(Unit: Wbn)

43434343

3 3 3 3 ---- 3. Profit 3. Profit 3. Profit 3. Profit

[Net income change from FY08 to FY09 ][Net income change from FY08 to FY09 ][Net income change from FY08 to FY09 ][Net income change from FY08 to FY09 ]

FY08FY08FY08FY08FY08FY08FY08FY08 FY09FY09FY09FY09FY09FY09FY09FY09 ChangeChangeChangeChangeLongLongLongLong----term term term term underwriting underwriting underwriting underwriting

profitprofitprofitprofit

Auto Auto Auto Auto

underwriting underwriting underwriting underwriting


InvestmentInvestmentInvestmentInvestment Administration Administration Administration Administration

cost, etc.cost, etc.cost, etc.cost, etc.

Commercial Commercial Commercial Commercial underwriting underwriting underwriting underwriting





----58.858.858.858.8

+49.2+49.2+49.2+49.2 +3.1+3.1+3.1+3.1 +5.8+5.8+5.8+5.8

+92.7+92.7+92.7+92.7 ----78.678.678.678.6

138.8138.8138.8138.8138.8138.8138.8138.8 +197.6+197.6+197.6+197.6

Admin cost -9.1Non-operating -5.6Tax -63.9

+125.4+125.4+125.4+125.4+125.4+125.4+125.4+125.4

Note: Underwriting profit includes sales-related costs

44444444

3 3 3 3 ---- 4. Risk / Return Balance4. Risk / Return Balance4. Risk / Return Balance4. Risk / Return Balance

AdjustedAdjustedAdjustedAdjusted

ROEROEROEROE

Solvency ratioSolvency ratioSolvency ratioSolvency ratioNote: Meritz FY08 adjusted ROE: excluding RG Loss

2nd-tier group FY08 solvency ratio: Dec 08

TARGETTARGETTARGETTARGETTARGETTARGETTARGETTARGET

ZONEZONEZONEZONEZONEZONEZONEZONE

200%200%

15%15%

FY08FY08FY08FY08

FY07

FY08.2FY08.2

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

•Solvency ratio : 190.2%Solvency ratio : 190.2%Solvency ratio : 190.2%Solvency ratio : 190.2%

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

•Solvency ratio : 235.8%Solvency ratio : 235.8%Solvency ratio : 235.8%Solvency ratio : 235.8%

MeritzMeritzMeritzMeritz 2nd2nd2nd2nd----tier grouptier grouptier grouptier group

FY06FY06

•adj. ROE 11.5%adj. ROE 11.5%adj. ROE 11.5%adj. ROE 11.5%

•Solvency ratio 187.1%Solvency ratio 187.1%Solvency ratio 187.1%Solvency ratio 187.1%

FY07FY07






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

•Solvency ratio : Solvency ratio : Solvency ratio : Solvency ratio : 223.4%223.4%223.4%223.4%

45454545







1111

2222

3333

※※※※

4444

46464646

3 insolvent

companies

3 normal

companies

� C& Heavy: 8 ships (RG exposure: US$28.2 mn)

� Jinse: 6 ships (RG exposure: US$86.6mn)

� Asia Heavy: 3 ships (RG exposure: US$15.9mn)

� Sekwang Heavy: 13 ships (RG exposure US$34.1mn)

� Sekwang Shipbuilding : 6 ships (RG exposure US$52.3mn)

� Orient: 3 ships (RG exposure US$4.2mn)

OurOurOurOur

RG ExposureRG ExposureRG ExposureRG Exposure

““““6 ship builders6 ship builders6 ship builders6 ship builders

US$215.7mn US$215.7mn US$215.7mn US$215.7mn ””””

☞☞☞☞ 6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according to their risk levelo their risk levelo their risk levelo their risk level☞☞☞☞☞☞☞☞ 6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according t6 shipbuilders holding RG insurance, closely managed according to their risk levelo their risk levelo their risk levelo their risk levelo their risk levelo their risk levelo their risk levelo their risk level

“Insolvent 3” total: 17 ships (RG exposure: US$130.7mn)

“Normal 3” total : 22 ships (RG Exposure : US$90.6mn)

☞☞☞☞ As of Mar 09, insolvent 3 recorded as losses As of Mar 09, insolvent 3 recorded as losses As of Mar 09, insolvent 3 recorded as losses As of Mar 09, insolvent 3 recorded as losses (W181.7bn)(W181.7bn)(W181.7bn)(W181.7bn) assuming total claimassuming total claimassuming total claimassuming total claim

Refund GuaranteeRefund GuaranteeRefund GuaranteeRefund Guarantee

47474747

105.2Paid installment

14.6Escrow account balance

90.6Total Exposure

Launched

Keel-laid

15.215.215.215.2

33.2

42.2

Risk exposure

Actual exposureActual exposureActual exposureActual exposure

(as of Mar 2009, US$mn)

Risk exposure by construction stagesRisk exposure by construction stagesRisk exposure by construction stages

Normal 3 companiesNormal 3 companies’’ RG exposure and forecastRG exposure and forecast

Risk exposure forecastRisk exposure forecastRisk exposure forecast

(Unit: USD mn)

154.1154.1154.1154.1

130.7130.7130.7130.7141.3141.3141.3141.3

105.2105.2105.2105.2111.3111.3111.3111.3 113.4113.4113.4113.4

81.381.381.381.3

64.664.664.664.6

28.928.928.928.9

'08.12 '09.01 '09.02 '09.03 '09.04 '09.05 '09.06 '09.09 '09.12 '10.03

Refund GuaranteeRefund GuaranteeRefund GuaranteeRefund Guarantee

204.3

172.9

186.8

152.7

159.6

151.9

101.7

77.1

33.88.0

1.6

Total exposure

Paid installment

48484848

Q & AQ & AQ & AQ & A

49494949





IssuesIssuesIssuesIssuesIssuesIssuesIssuesIssues


1111

2222

3333

※※※※

4444

50505050

16.2%2,18016.2%2,53414.3%14.3%14.3%14.3%100.0%100.0%100.0%100.0%2,8962,8962,8962,896Total

-47.1%11-30.4%8----26.7%26.7%26.7%26.7%0.2%0.2%0.2%0.2%6666Lump-sum payment

27.5%1,17126.6%1,48319.3%19.3%19.3%19.3%61.1%61.1%61.1%61.1%1,7691,7691,7691,769Recurring

25.7%5318.7%6320.7%20.7%20.7%20.7%2.6%2.6%2.6%2.6%76767676New

27.4%1,22426.2%1,54519.3%19.3%19.3%19.3%63.7%63.7%63.7%63.7%1,8441,8441,8441,844Long-term

8.0%6722.1%6866.0%6.0%6.0%6.0%25.1%25.1%25.1%25.1%727727727727Auto

0.1%2748.0%2968.2%8.2%8.2%8.2%11.0%11.0%11.0%11.0%320320320320Commercial

G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/Rmixmixmixmix

FY06FY06FY06FY06FY07FY07FY07FY07FY08FY08FY08FY08(Wbn)(Wbn)(Wbn)(Wbn)

0.1%p8.9%0.9%p9.8%----0.5%p0.5%p0.5%p0.5%p9.3%9.3%9.3%9.3%New

0.1%p8.1%0.1%p8.2%0.1%p0.1%p0.1%p0.1%p8.3%8.3%8.3%8.3%Total

-11.8%p7.1%-1.3%p5.8%0.5%p0.5%p0.5%p0.5%p6.3%6.3%6.3%6.3%Lump-sum payment

0.5%p8.6%0.4%p9.0%0.2%p0.2%p0.2%p0.2%p9.2%9.2%9.2%9.2%Recurring

0.7%p8.6%0.4%p9.0%0.2%p0.2%p0.2%p0.2%p9.2%9.2%9.2%9.2%Long-term

-7.3%-0.7%p6.6%----6.6%6.6%6.6%6.6%Auto

-0.8%p8.5%0.2%p8.7%----0.2%p0.2%p0.2%p0.2%p8.5%8.5%8.5%8.5%Commercial

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

FY06FY06FY06FY06FY07FY07FY07FY07FY08FY08FY08FY08Market shareMarket shareMarket shareMarket share

* FY08 market share: preliminary figure

Appendix: sales Appendix: sales Appendix: sales Appendix: sales

51515151

----3.4%p3.4%p3.4%p3.4%p

15.1%15.1%15.1%15.1%

10.2%10.2%10.2%10.2%

2.5%p2.5%p2.5%p2.5%p

3.5%p3.5%p3.5%p3.5%p

----3.8%p3.8%p3.8%p3.8%p

19.7%19.7%19.7%19.7%

14.2%14.2%14.2%14.2%

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

5.0%5.0%5.0%5.0%

----1.1%1.1%1.1%1.1%

1.3%p1.3%p1.3%p1.3%p

11.6%11.6%11.6%11.6%

15.1%15.1%15.1%15.1%

G/RG/RG/RG/R

75.5%75.5%75.5%75.5%

2,6102,6102,6102,610

1,9711,9711,9711,971

75.3%75.3%75.3%75.3%

80.6%80.6%80.6%80.6%

78.8%78.8%78.8%78.8%

1,7961,7961,7961,796

1,4151,4151,4151,415

69.9%69.9%69.9%69.9%

673673673673

470470470470

61.1%61.1%61.1%61.1%

141141141141

86868686

(before (before (before (before RG)RG)RG)RG)

-0.8%p81.1%-2.2%p78.9%3.6%p3.6%p3.6%p3.6%p82.5%82.5%82.5%82.5%Loss ratio

18.2%1,89619.6%2,26715.1%15.1%15.1%15.1%2,6102,6102,6102,610Earned premium

17.1%1,53816.3%1,78820.3%20.3%20.3%20.3%2,1532,1532,1532,153Losses

Total

-7.9%p69.8%3.0%p72.8%2.5%p2.5%p2.5%p2.5%p75.3%75.3%75.3%75.3%LT risk L/R (excluding IBNR)

-4.9%p78.2%-1.1%p77.1%3.5%p3.5%p3.5%p3.5%p80.6%80.6%80.6%80.6%LT risk L/R (including IBNR)

-4.5%p84.9%-2.3%p82.6%----3.8%p3.8%p3.8%p3.8%p78.8%78.8%78.8%78.8%Loss ratio

26.4%1,19325.8%1,50119.7%19.7%19.7%19.7%1,7961,7961,7961,796Earned premium

20.1%1,01322.2%1,23814.2%14.2%14.2%14.2%1,4151,4151,4151,415Losses

Long-term

3.4%p78.5%-4.3%p74.2%----4.3%p4.3%p4.3%p4.3%p69.9%69.9%69.9%69.9%Loss ratio

6.7%5977.5%6415.0%5.0%5.0%5.0%673673673673Earned premium

11.5%4681.6%476----1.1%1.1%1.1%1.1%470470470470Losses

Auto

3.9%p53.0%6.8%p59.8%131.1%p131.1%p131.1%p131.1%p189.9%189.9%189.9%189.9%Loss ratio

4.8%10617.4%12511.6%11.6%11.6%11.6%141141141141Earned premium

13.3%5632.5%75258.0%258.0%258.0%258.0%268268268268Losses

Commercial

G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R(after RG)(after RG)(after RG)(after RG)

FY06FY06FY06FY06FY07FY07FY07FY07FY08FY08FY08FY08

(Wbn)(Wbn)(Wbn)(Wbn)

Appendix: loss ratioAppendix: loss ratioAppendix: loss ratioAppendix: loss ratio

52525252

-0.9%p105.4%-2.6%p102.8%5.9%p5.9%p5.9%p5.9%p108.7%108.7%108.7%108.7%Combined ratio

-0.1%p24.3%-0.4%p23.9%2.3%p2.3%p2.3%p2.3%p26.2%26.2%26.2%26.2%Expense ratio

22.0%1,94317.9%2,29114.9%14.9%14.9%14.9%2,6312,6312,6312,631Net premium written

18.2%1,89619.6%2,26715.1%15.1%15.1%15.1%2,6102,6102,6102,610Gross premium earned

18.0%46117.5%54226.1%26.1%26.1%26.1%684684684684Net expenses

-6.1%495.0%523.1%3.1%3.1%3.1%53535353Expenses recovered

22.8%1921.8%2412.7%12.7%12.7%12.7%27272727Other expenses

20.9%24719.9%29738.7%38.7%38.7%38.7%411411411411Sales-related

3.1%11212.5%12614.3%14.3%14.3%14.3%144144144144Administrative

15.2%13212.0%1484.9%4.9%4.9%4.9%155155155155Wages & benefits

15.2%51016.3%59424.1%24.1%24.1%24.1%737737737737Expenses



Appendix: 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

53535353

100.0%1,235100.0%1,553100.0%100.0%100.0%100.0%1,8501,8501,8501,850Total

16.8%20815.4%23913.8%13.8%13.8%13.8%256256256256Savings

0.0%0.40.0%0.40.0%0.0%0.0%0.0%0.30.30.30.3Corporate pension

4.5%563.9%613.6%3.6%3.6%3.6%66666666Personal annuities

2.9%352.8%442.5%2.5%2.5%2.5%47474747Bundle

16.2%20012.6%1969.0%9.0%9.0%9.0%167167167167Disease

13.2%16310.5%1638.7%8.7%8.7%8.7%162162162162Property

20.5%25317.9%27815.8%15.8%15.8%15.8%292292292292Drivers

25.8%31936.8%57146.5%46.5%46.5%46.5%859859859859Accident

78.6%97180.7%1,25382.6%82.6%82.6%82.6%1,5271,5271,5271,527Protection-type

mixmixmixmixFY06FY06FY06FY06mixmixmixmixFY07FY07FY07FY07mixmixmixmixFY08 FY08 FY08 FY08 (Wbn)(Wbn)(Wbn)(Wbn)

2.8%p63.3%-0.1%p63.2%----0.9%p0.9%p0.9%p0.9%p62.3%62.3%62.3%62.3%25th month persistency

0.2%p76.4%2.8%p79.2%----4.4%p4.4%p4.4%p4.4%p74.8%74.8%74.8%74.8%13th month persistency

65.6%81062.7%97359.7%59.7%59.7%59.7%1,1041,1041,1041,104Savings premiums

34.4%42537.3%58040.3%40.3%40.3%40.3%746746746746Risk+loading premiums

Appendix: longAppendix: longAppendix: longAppendix: long----term product portfolioterm product portfolioterm product portfolioterm product portfolio

* Including lump-sum payment, FY08 persistency is based on Feb 09 data

54545454

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

CategoryCategoryCategoryCategory

FY08FY08FY08FY08 FY07FY07FY07FY07 FY06FY06FY06FY06

LossLossLossLoss

ratioratioratioratio

PremiumPremiumPremiumPremium

mixmixmixmix

LossLossLossLoss



mixmixmixmix

LossLossLossLoss



mixmixmixmix

Death coverage 33.7%33.7%33.7%33.7% ----6.9%p6.9%p6.9%p6.9%p 24.5%24.5%24.5%24.5% ----2.1%p2.1%p2.1%p2.1%p 40.6% 26.6% 44.6% 28.2%

Life benefits 101.6%101.6%101.6%101.6% 4.4%p4.4%p4.4%p4.4%p 57.7%57.7%57.7%57.7% 3.0%p3.0%p3.0%p3.0%p 97.2% 54.7% 94.4% 51.2%

Medical treatment 107.1%107.1%107.1%107.1% 9.3%p9.3%p9.3%p9.3%p 31.7%31.7%31.7%31.7% 2.5%p2.5%p2.5%p2.5%p 97.8% 29.2% 98.6% 26.6%

Daily allowance 94.1%94.1%94.1%94.1% 2.9%p2.9%p2.9%p2.9%p 13.5%13.5%13.5%13.5% 0.6%p0.6%p0.6%p0.6%p 91.2% 12.9% 93.9% 11.6%

Disease 98.6%98.6%98.6%98.6% ----4.8%p4.8%p4.8%p4.8%p 8.5%8.5%8.5%8.5% ----0.2%p0.2%p0.2%p0.2%p 103.4% 8.7% 91.4% 9.8%

Other 90.1%90.1%90.1%90.1% ----8.4%p8.4%p8.4%p8.4%p 4.0%4.0%4.0%4.0% 0.2%p0.2%p0.2%p0.2%p 98.5% 3.8% 70.9% 3.1%

Property/other 52.3%52.3%52.3%52.3% 0.2%p0.2%p0.2%p0.2%p 17.8%17.8%17.8%17.8% ----0.9%p0.9%p0.9%p0.9%p 52.1% 18.7% 47.5% 20.7%

Total 76.2%76.2%76.2%76.2% 2.5%p2.5%p2.5%p2.5%p 100.0%100.0%100.0%100.0% ---- 73.7% 100.0% 70.7% 100.0%

Appendix: 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

55555555

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

-5.9%-5.6%--------2.8%p2.8%p2.8%p2.8%p2.8%2.8%2.8%2.8%Investment yield

100.0%3,000100.0%3,624----100.0%100.0%100.0%100.0%14.2%14.2%14.2%14.2%4,1384,1384,1384,138Investment assets

12.5%37611.1%4024.9%p4.9%p4.9%p4.9%p16.0%16.0%16.0%16.0%64.6%64.6%64.6%64.6%662662662662Real estate

16.3%48911.8%4271.9%p1.9%p1.9%p1.9%p13.7%13.7%13.7%13.7%33.3%33.3%33.3%33.3%569569569569Loans

0.7%211.7%610.5%p0.5%p0.5%p0.5%p2.2%2.2%2.2%2.2%47.9%47.9%47.9%47.9%90909090Other

12.1%3637.6%2762.7%p2.7%p2.7%p2.7%p10.3%10.3%10.3%10.3%54.8%54.8%54.8%54.8%427427427427Overseas securities

9.4%28114.3%518----1.8%p1.8%p1.8%p1.8%p12.5%12.5%12.5%12.5%----0.3%0.3%0.3%0.3%517517517517Investment funds

35.5%1,06541.7%1,510----9.1%p9.1%p9.1%p9.1%p32.6%32.6%32.6%32.6%----10.7%10.7%10.7%10.7%1,3491,3491,3491,349Domestic bonds

2.7%803.6%132----0.1%p0.1%p0.1%p0.1%p3.5%3.5%3.5%3.5%8.5%8.5%8.5%8.5%143143143143Equity-method stakes

1.4%422.7%960.7%p0.7%p0.7%p0.7%p3.4%3.4%3.4%3.4%48.1%48.1%48.1%48.1%142142142142Available-for-sale

0.0%0.30.0%0.50.0%p0.0%p0.0%p0.0%p0.0%0.0%0.0%0.0%----100.0%100.0%100.0%100.0%0000Trading

1.4%432.7%970.7%p0.7%p0.7%p0.7%p3.4%3.4%3.4%3.4%47.4%47.4%47.4%47.4%142142142142Equities

9.4%2835.5%2010.3%p0.3%p0.3%p0.3%p5.8%5.8%5.8%5.8%18.6%18.6%18.6%18.6%238238238238Cash & equivalents

MixMixMixMixMixMixMixMixMixMixMixMix


Appendix: asset portfolioAppendix: asset portfolioAppendix: asset portfolioAppendix: asset portfolio

56565656

569569569569

8888

577577577577

54545454

55555555

78787878

187187187187

261261261261

129129129129

0.20.20.20.2

390390390390

FY08 FY08 FY08 FY08

79Bad debt Bad debt Bad debt Bad debt

allowanceallowanceallowanceallowance

496435TotalTotalTotalTotal

5672PFPFPFPF

SecuredSecuredSecuredSecured

CreditCreditCreditCredit

PolicyholderPolicyholderPolicyholderPolicyholder

SecuredSecuredSecuredSecured

CreditCreditCreditCredit

427

63

1

137

220

77

2

299

FY07FY07FY07FY07

Net loanNet loanNet loanNet loan

Corporate loanCorporate loanCorporate loanCorporate loan

167

264Retail loanRetail loanRetail loanRetail loan

184


233

489

10

77

2

FY06FY06FY06FY06

2.5%2.5%2.5%2.5%

1.7%1.7%1.7%1.7%

2.0%2.0%2.0%2.0%

74.9%74.9%74.9%74.9%

8888

1.921.921.921.92

577577577577

2222

0000

9999

1111

566566566566

FY08 FY08 FY08 FY08

SubstandardSubstandardSubstandardSubstandard

CorporateCorporateCorporateCorporate

RetailRetailRetailRetail

59.2%48.3%Coverage ratioCoverage ratioCoverage ratioCoverage ratio

(Provisions(Provisions(Provisions(Provisions/substandard & below)/substandard & below)/substandard & below)/substandard & below)

0.6%3.2%

4.0%4.8%

496435TotalTotalTotalTotal

2.4%4.3%Delinquency ratioDelinquency ratioDelinquency ratioDelinquency ratio

11DoubtfulDoubtfulDoubtfulDoubtful

ProvisionsProvisionsProvisionsProvisions

Estimated lossEstimated lossEstimated lossEstimated loss

PrecautionaryPrecautionaryPrecautionaryPrecautionary

9

4.13

1

16

2

415

FY07FY07FY07FY07

NPL ratioNPL ratioNPL ratioNPL ratio

474NormalNormalNormalNormal

0


2.44

7

11

10

FY06FY06FY06FY06

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

FY08 retail delinquency: includes W5bn related to Bupyoung shopping center

(mortgage loan for shop owners)

corporate delinquency: includes Hyundae R&C Construction PF loan (W0.5b)

Note: Retail credit loan: loans for employees

corporate credit: unsecured, private bond without collateral, etc

corporate secured: private bonds (Walkerhill, etc)

Appendix: loan qualityAppendix: loan qualityAppendix: loan qualityAppendix: loan quality

57575757

----

----

----

----

----40.8%40.8%40.8%40.8%

----

----

----53.753.753.753.7

5.4%5.4%5.4%5.4%

26.1%26.1%26.1%26.1%

12.2%12.2%12.2%12.2%

36.2%36.2%36.2%36.2%

14.9%14.9%14.9%14.9%

14.3%14.3%14.3%14.3%

15.1%15.1%15.1%15.1%

G/RG/RG/RG/R

----59595959

----20202020

----79797979

2222

106106106106

----186186186186

----40404040

3333

466466466466

684684684684

664664664664

1,0211,0211,0211,021

2,6312,6312,6312,631

2,8962,8962,8962,896

2,6102,6102,6102,610

(After RG)(After RG)(After RG)(After RG)

35.6%3698.7%71----52.5%52.5%52.5%52.5%34343434Net income

33.3%8254.5%30----56.0%56.0%56.0%56.0%13131313Incurred tax expenses

35.2%44128.3%101----53.5%53.5%53.5%53.5%47474747Ordinary income

-1--1----2222Non-operating income

6.5%15912.5%179----40.8%40.8%40.8%40.8%106106106106Investment income

--116--77----251251251251Underwriting income

-4.9%1216.1%1418.4%18.4%18.4%18.4%16161616Incr in catastrophe reserves

-3.8%8-22.7%6----53.753.753.753.73333Net incr in policyholders’ dividend reserves

32.6%466-5.3%4425.4%5.4%5.4%5.4%466466466466Incr in premium reserves for LT savings

18.0%46117.5%54226.1%26.1%26.1%26.1%684684684684Net operating expenses

1.4%38952.1%59112.2%12.2%12.2%12.2%664664664664Refund of LT insurance polices

18.1%67610.9%75012.0%12.0%12.0%12.0%839839839839Incurred losses

22.0%1,94317.9%2,29114.9%14.9%14.9%14.9%2,6312,6312,6312,631Net premium written

16.2%2,18016.2%2,53414.3%14.3%14.3%14.3%2,8962,8962,8962,896Gross premium written

18.2%1,89619.6%2,26715.1%15.1%15.1%15.1%2,6102,6102,6102,610Net premium earned

G/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/RG/R(Before RG)(Before RG)(Before RG)(Before RG)


Appendix: profit & loss Appendix: profit & loss Appendix: profit & loss Appendix: profit & loss

58585858

20.9%25112.6%28214.6%14.6%14.6%14.6%323323323323Solvency guidance

6.7%42755.8%665----7.5%7.5%7.5%7.5%615615615615Solvency amount

-22.7%p170.4%65.4%p235.8%----45.6%p45.6%p45.6%p45.6%p190.2%190.2%190.2%190.2%Solvency margin ratio

--0.6--79--------28282828Capital adjustment

17.4%18924.8%236----33.2%33.2%33.2%33.2%157157157157Retained earnings

2.8%29718.1%237----1.2%1.2%1.2%1.2%234234234234Capital surplus

0.0%4344.3%620.0%0.0%0.0%0.0%62626262Capital stock

12.8%26075.4%456----6.7%6.7%6.7%6.7%426426426426Total shareholders’ equity

13.5%35430.5%46116.5%16.5%16.5%16.5%537537537537Other liabilities

9.8%13310.2%146----27.5%27.5%27.5%27.5%106106106106Catastrophe reserves

22.6%3,00216.6%3,50119.9%19.9%19.9%19.9%4,1974,1974,1974,197Policy reserves

21.1%3,48817.8%4,10817.8%17.8%17.8%17.8%4,8404,8404,8404,840Total liabilities

34.6%74725.8%94119.8%19.8%19.8%19.8%1,1271,1271,1271,127Non-invested assets

17.5%3,00020.8%3,62414.2%14.2%14.2%14.2%4,1384,1384,1384,138Investment assets

20.5%3,74821.8%4,56515.4%15.4%15.4%15.4%5,2665,2665,2665,266Total assets



Appendix : Balance Sheet Appendix : Balance Sheet Appendix : Balance Sheet Appendix : Balance Sheet

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 FY08 Review & FY09 Guidanceir.meritzfire.com/ir/upload/Meritz_FY08Earnings.pdf · Profit2. Profit FY07 FY07 + ordinary change Cat. reserve reversal C/R efficiency