fy2009 2h review - meritzir.meritzfire.com/ir/eng/upload/fy2008_ev_material_eng.pdf · fy2009 2h...

37
FY2009 2H Review FY2009 2H Review FY2009 2H Review FY2009 2H Review FY2009 2H Review FY2009 2H Review FY2009 2H Review FY2009 2H Review September 24, September 24, September 24, September 24, September 24, September 24, September 24, September 24, 2009 2009 2009 2009 2009 2009 2009 2009 FY2008 Embedded Value FY2009.April~August Review RG Insurance Update

Upload: others

Post on 17-Jul-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

FY2009 2H ReviewFY2009 2H ReviewFY2009 2H ReviewFY2009 2H ReviewFY2009 2H ReviewFY2009 2H ReviewFY2009 2H ReviewFY2009 2H Review

September 24, September 24, September 24, September 24, September 24, September 24, September 24, September 24,

20092009200920092009200920092009

� FY2008 Embedded Value

� FY2009.April~August Review

� RG Insurance Update

Page 2: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

1111

� FY2008 Embedded Value

Page 3: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

2222

Certain of the statements contained herein are statements of future expectations

and other forward looking statements that are based on management's current views and

assumptions and involve known and unknown risks and uncertainties. In addition,

expressions and words which are forward-looking by reason of context identify forward-

looking statements. Actual results, performance or events may differ materially from those

in such statements due to (i) general economic conditions, (ii) performance of financial

markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity

levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) general competitive

factors, (viii) changes in laws and regulations, (ix) changes in the policies of governments

and/or regulatory authorities. Meritz Insurance assumes no obligation to update any

forward-looking information contained in this report. We also have no obligation or

responsibility to investment made based on such forward looking statements.

DisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimerDisclaimer

Page 4: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

3333

1. Adjusted Net Worth1. Adjusted Net Worth1. Adjusted Net Worth1. Adjusted Net Worth

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

----2,7332,7332,7332,733

142

-6

-24

-1,881

7

-352

-22

-292

----2,4282,4282,4282,428

----305305305305

YoYYoYYoYYoY

• Accounting change (Real estate

revaluation) : 1,905

• reduced retained earnings : - 784

• Treasury share buy-back : - 617

• valuation loss of investment : -796

• others : -13

-1420Cash dividend payable

4,5614,5614,5614,5614,2564,2564,2564,256ShareholderShareholderShareholderShareholder’’’’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))))

Accounting change1,8810Real estate

-64-88Intangible asset

FY2008 closing price : 3,870837815Treasury share

Meritz Securities:975, Meritz

Investment Bank:735-58-410Equity-method stock

2330Bad debt allowance for

normal/precautionary

8,0828,0828,0828,082

-15

1,059

3,5213,5213,5213,521

FY2007FY2007FY2007FY2007

1,0931,0931,0931,093

Catastrophe reserve resersal 563767Catastrophe reserve

5,3495,3495,3495,349

-21Prepaid

RemarkRemarkRemarkRemarkFY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory

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

Page 5: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

4444

2. Value of In2. Value of In2. Value of In2. Value of In----force Business force Business force Business force Business ---- AssumptionsAssumptionsAssumptionsAssumptions

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

---- Categorized fixed/floating, floating type is applied by existinCategorized fixed/floating, floating type is applied by existinCategorized fixed/floating, floating type is applied by existinCategorized fixed/floating, floating type is applied by existing standardg standardg standardg standardAssumed interest Assumed interest Assumed interest Assumed interest

raterateraterate

---- Sales cost : applied existing sales commission schemeSales cost : applied existing sales commission schemeSales cost : applied existing sales commission schemeSales cost : applied existing sales commission scheme

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

buy conservatively appliedbuy conservatively appliedbuy conservatively appliedbuy conservatively applied FY08 resultFY08 resultFY08 resultFY08 result

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

ExpensesExpensesExpensesExpenses

- Empirical data of past 6 years by 16Empirical data of past 6 years by 16Empirical data of past 6 years by 16Empirical data of past 6 years by 16 CategoryCategoryCategoryCategory

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

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

Page 6: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

5555

2. Value of In2. Value of In2. Value of In2. Value of In----force Business force Business force Business force Business ---- AssumptionsAssumptionsAssumptionsAssumptions

▶▶▶▶▶▶▶▶ 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%

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

□□□□ Required CapitalRequired CapitalRequired CapitalRequired Capital

- 150% of existing solvency margin requirement

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

-0.25%p5.255.00Investment yield

YoYYoYYoYYoYFY07FY07FY07FY07FY08FY08FY08FY08(Unit : %)

- Calculated by CAPM(Capital Asset Pricing Model)

Page 7: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

6666

2. Value of In2. Value of In2. Value of In2. Value of In----force Businessforce Businessforce Businessforce 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 = 5,562Cost of Capital = 5,562Cost of Capital = 5,562Cost of Capital = 5,562Cost of Capital = 5,562Cost of Capital = 5,562Cost of Capital = 5,562Cost of Capital = 5,562

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

33.6%33.6%33.6%33.6%1,3981,3981,3981,3984,1644,1644,1644,1645,5625,5625,5625,562Value 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)

-365

1,763

13,210

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%-1,501-1,866Cost of Capital (c)

31.1%5,6657,428PV of Future Profit (b)

22.6%58,34271,552PV of Future Premium (a)

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory

Page 8: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

7777

2. Value of In2. Value of In2. Value of In2. Value of In----force Businessforce Businessforce Businessforce Business

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

FY2007FY2007FY2007FY2007 FY2008FY2008FY2008FY2008

4,1644,1644,1644,164

ModelModelModelModel

ChangeChangeChangeChange

Risk Discount Risk Discount Risk Discount Risk Discount

RateRateRateRate

UnwindingUnwindingUnwindingUnwinding

131131131131

733733733733

ProfitProfitProfitProfit

On InOn InOn InOn In----forceforceforceforce

----1,3401,3401,3401,340

▶▶▶▶▶▶▶▶ Movement of VIBMovement of VIBMovement of VIBMovement of VIBMovement of VIBMovement of VIBMovement of VIBMovement of VIB

5,5625,5625,5625,562

OperationalOperationalOperationalOperational

AssumptionAssumptionAssumptionAssumptionEconomicEconomicEconomicEconomic

AssumptionAssumptionAssumptionAssumption

New BusinessNew BusinessNew BusinessNew Business

ImpactImpactImpactImpact

----480480480480

----37373737

2,3942,3942,3942,394

OthersOthersOthersOthers

----2222

【 Operational Assumption】

ㅁ Persistency ratio : slight drop of ratio (- 104)

ㅁ L/R : 87% → 90% (- 427)

ㅁ E/R : Unit Cost of maintenance cost decreased (62)

【 Economic Assumption】ㅁ Investment yield : 5.25% → 5.0% (- 384)

ㅁ Tax : tax rate deduction (346)

Page 9: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

8888

3. Value of 13. Value of 13. Value of 13. Value of 1----year New Businessyear New Businessyear New Businessyear New Business

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

▶▶▶▶▶▶▶▶ Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1Value of 1--------year New Business : 1,849year New Business : 1,849year New Business : 1,849year New Business : 1,849year New Business : 1,849year New Business : 1,849year New Business : 1,849year New Business : 1,849

28.7%28.7%28.7%28.7%

28.4%

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

4124124124121,4371,4371,4371,4371,8491,8491,8491,849Value of 1Value of 1Value of 1Value of 1----year New Businessyear New Businessyear New Businessyear New Business

5101,7932,3031st year result & PV of Future Profit

-98

1,590

5,072

YoYYoYYoYYoY

1.2%p ↑19.3%20.5%Profit Margin on ANP

27.5%-356-454Cost of Capital

21.3%7,4489,038Annualized Premiums equivalent

23.5%21,56926,641PV of Future Premium

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory

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

ANP : Annualized premiums equivalent

Page 10: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

9999

3. Value of 13. Value of 13. Value of 13. Value of 1----year New Businessyear New Businessyear New Businessyear New Business

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

▶▶▶▶▶▶▶▶ Movement of VNBMovement of VNBMovement of VNBMovement of VNBMovement of VNBMovement of VNBMovement of VNBMovement of VNB

28.7%

Value of 1-year

New Business

Future Value

Value of 1-year

New Business

Future Value

1st year result

0.9%p ↑8.2%9.1%

Profit Margin

31.4%5721,8222,394Value

0.2%p ↑6.7%6.9%

4121,4371,849

-160

YoYYoYYoYYoY

41.6%-385-545

FY2007FY2007FY2007FY2007FY2008FY2008FY2008FY2008CategoryCategoryCategoryCategory

* 1st year result : new business of the year’s realized profit in the corresponding year

Future Value : new business of the year’s expected value after the year

Page 11: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

10101010

4. Embedded Value4. Embedded Value4. Embedded Value4. Embedded Value

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

▶▶▶▶▶▶▶▶ FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911FY2008 Embedded Value : 10,911

ShareholderShareholderShareholderShareholder’’’’ssss

EquityEquityEquityEquity

Adjusted

Capital

Value of

In-force Biz

EmbeddedEmbeddedEmbeddedEmbedded

ValueValueValueValue

4,2564,2564,2564,256

1,0931,0931,0931,093

5,5625,5625,5625,562 10,91110,91110,91110,911

Value ofValue of

InforceInforce BizBiz

5,5625,562

AdjustedAdjusted

Net WorthNet Worth

5,3495,349

4,2564,2564,2564,256

5,3495,3495,3495,349

10,91110,91110,91110,911

Page 12: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

11111111

4. Embedded Value4. Embedded Value4. Embedded Value4. Embedded Value

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

FY2007FY2007FY2007FY2007

Increase of VIBIncrease of VIBIncrease of VIBIncrease of VIB

1,3981,3981,3981,398

12,24612,24612,24612,246

Value ofValue ofValue ofValue ofValue ofValue ofValue ofValue of

InInInInInInInIn--------force Bizforce Bizforce Bizforce Bizforce Bizforce Bizforce Bizforce Biz

5,5625,5625,5625,5625,5625,5625,5625,562

AdjustedAdjustedAdjustedAdjusted

Net WorthNet WorthNet WorthNet Worth

8,0828,0828,0828,082

Value ofValue ofValue ofValue of

InInInIn----force Bizforce Bizforce Bizforce Biz

4,1644,1644,1644,164

FY2008FY2008FY2008FY2008

Decrease of Decrease of Decrease of Decrease of

AdjustedAdjustedAdjustedAdjusted

Net WorthNet WorthNet WorthNet Worth

---- 2,7332,7332,7332,733

10,91110,91110,91110,911

AdjustedAdjustedAdjustedAdjustedAdjustedAdjustedAdjustedAdjusted

Net WorthNet WorthNet WorthNet WorthNet WorthNet WorthNet WorthNet Worth

5,3495,3495,3495,3495,3495,3495,3495,349

---- Valuation gain/loss of Valuation gain/loss of Valuation gain/loss of Valuation gain/loss of

investment investment investment investment : : : : ---- 796796796796

- Reduced retained earningsReduced retained earningsReduced retained earningsReduced retained earnings::::

---- 784784784784

---- Treasury repurchaseTreasury repurchaseTreasury repurchaseTreasury repurchase : : : : ---- 617617617617

---- EquityEquityEquityEquity----method stock : method stock : method stock : method stock : ----352, 352, 352, 352,

etc.etc.etc.etc.

---- Model changeModel changeModel changeModel change : 131: 131: 131: 131

---- Assumption changeAssumption changeAssumption changeAssumption change : : : : ---- 518518518518

---- Roll Forwarding : Roll Forwarding : Roll Forwarding : Roll Forwarding : ---- 607607607607

---- New contract effect : 2,394, etc.New contract effect : 2,394, etc.New contract effect : 2,394, etc.New contract effect : 2,394, etc.

▶▶▶▶▶▶▶▶ Movement of EVMovement of EVMovement of EVMovement of EVMovement of EVMovement of EVMovement of EVMovement of EV

Page 13: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

12121212

4. Embedded Value4. Embedded Value4. Embedded Value4. Embedded Value

FY2007FY2007FY2007FY2007 FY2008FY2008FY2008FY2008

0.910.910.910.91

PricePricePricePrice PricePricePricePriceEVPSEVPSEVPSEVPS EVPSEVPSEVPSEVPS

9,8929,8929,8929,892

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

3,8703,8703,8703,870

0.440.440.440.44

P/ EVP/ EVP/ EVP/ EV

▶▶▶▶▶▶▶▶ Share price, Share price, Share price, Share price, Share price, Share price, Share price, Share price, EV per share, Price to EVEV per share, Price to EVEV per share, Price to EVEV per share, Price to EVEV per share, Price to EVEV per share, Price to EVEV per share, Price to EVEV per share, Price to 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

0.920.920.920.92

※※※※ 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

Page 14: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

13131313

4. Embedded Value4. Embedded Value4. Embedded Value4. Embedded Value

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

10,28310,28310,28310,28310,91110,91110,91110,91111,64611,64611,64611,646Embedded ValueEmbedded ValueEmbedded ValueEmbedded Value

-2,003-1,866-1,699Cost of holding required capital

6,9377,4287,996Present Value of future profit

4,9344,9344,9344,9345,5625,5625,5625,5626,2976,2976,2976,297Value of InValue of InValue of InValue of In----force Businessforce Businessforce Businessforce Business

1,093Adjusted Capital

4,256Shareholder’s Equity

5,3495,3495,3495,349Adjusted 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

-472-454-428Cost of holding required capital

2,0982,3032,543Present Value of future profit

1,6261,6261,6261,6261,8491,8491,8491,8492,1152,1152,1152,115Value of 1Value of 1Value of 1Value of 1----year New Businessyear New Businessyear New Businessyear New Business

▶▶▶▶▶▶▶▶ EV per Risk Discount RateEV per Risk Discount RateEV per Risk Discount RateEV per Risk Discount RateEV per Risk Discount RateEV per Risk Discount RateEV per Risk Discount RateEV per Risk Discount Rate

Page 15: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

14141414

5. Sensitivities5. Sensitivities5. Sensitivities5. Sensitivities

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

InterestInterestInterestInterest※※※※ Loss ratioLoss ratioLoss ratioLoss ratio

Persistency ratioPersistency ratioPersistency ratioPersistency ratio Expense ratioExpense ratioExpense ratioExpense ratio

※※※※ Market interest rateMarket interest rateMarket interest rateMarket interest rate’’’’s impact on investment yield and funding costs impact on investment yield and funding costs impact on investment yield and funding costs impact on investment yield and funding cost

+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

334 (6%)334 (6%)334 (6%)334 (6%)

----311 (311 (311 (311 (----6%)6%)6%)6%)

164 (3%)164 (3%)164 (3%)164 (3%)

----164 (164 (164 (164 (----3%)3%)3%)3%)

807 (15%)807 (15%)807 (15%)807 (15%)

----801 (801 (801 (801 (----14%)14%)14%)14%)

1,399 (25%)1,399 (25%)1,399 (25%)1,399 (25%)

----1,394 (1,394 (1,394 (1,394 (----25%)25%)25%)25%)

▶▶▶▶▶▶▶▶ 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

Page 16: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

15151515

5. Sensitivities5. Sensitivities5. Sensitivities5. Sensitivities

KRWKRWKRWKRW 100,000,000100,000,000100,000,000100,000,000

InterestInterestInterestInterest 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

193 (10%)193 (10%)193 (10%)193 (10%)

----177 (177 (177 (177 (----10%)10%)10%)10%)

140 (8%)140 (8%)140 (8%)140 (8%)

----140 (140 (140 (140 (----8%)8%)8%)8%)

168 (9%)168 (9%)168 (9%)168 (9%)

----164 (164 (164 (164 (----9%)9%)9%)9%)

478 (26%)478 (26%)478 (26%)478 (26%)

----477 (477 (477 (477 (----26%)26%)26%)26%)

▶▶▶▶▶▶▶▶ 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

Page 17: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

16161616

6. Review Statement 6. Review Statement 6. Review Statement 6. Review Statement ---- TowersperrinTowersperrinTowersperrinTowersperrin

� Towers Perrin has reviewed the methodology, assumptions and results of the Meritz Insurance Co., Ltd. (“Meritz”) Embedded Value as at 31 March 2009 and value of new business in respect of business written in the 12 months to 31 March 2009 for Long Term Insurance. Our review excluded the derivation of the new business multiplier and appraisal value.

� Towers Perrin has concluded that the methodology used is consistent with recent industry practice for traditional deterministic embedded value reporting in Asia. In particular:

� The values have been based on deterministic projections of future profits, with allowance for risk through the use of a risk discount rate specified by Meritz and an explicit adjustment for the cost of holding an amount of solvency capital;

� The operating assumptions have been set with appropriate regard to past, current and expected future experience;

� The economic assumptions used have made allowance for the company's current and future asset mix and investment strategy, are internally consistent and consistent with observable market data.

� Towers Perrin has reviewed the calculations made by Meritz, including a number of checks of the models and processes, and has verified that the results have been determined in a manner consistent with the methodology and assumptions described in this report and has confirmed that any issues discovered do not have a material impact on the disclosed embedded value as at 31 March 2009 or the disclosed value of new business in respect of business written in the 12 months to 31 March 2009 for Long Term Insurance.

� In arriving at these conclusions, Towers Perrin relied on data and information provided by Meritz. This opinion is made solely to Meritz in accordance with the terms of Towers Perrin's engagement letter. To the fullest extent permitted by applicable law, Towers Perrin does not accept or assume any responsibility, duty of care or liability to anyone other than Meritz for or in connection with its review work, the opinions it has formed, or for any statement set forth in this opinion.

Page 18: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

17171717

[Reference] In[Reference] In[Reference] In[Reference] In----Force Business profitability comparisonForce Business profitability comparisonForce Business profitability comparisonForce Business profitability comparison

□□□□ Profit MarginProfit MarginProfit MarginProfit Margin

PV of Future PremiumPV of Future PremiumPV of Future PremiumPV of Future Premium

PV of Distributable EarningPV of Distributable EarningPV of Distributable EarningPV of Distributable Earning� Profit Margin =Profit Margin =Profit Margin =Profit Margin =

□□□□ Data for factors constituting Profit MarginData for factors constituting Profit MarginData for factors constituting Profit MarginData for factors constituting Profit Margin

①①①① L/R : Incurred losses of LT lineL/R : Incurred losses of LT lineL/R : Incurred losses of LT lineL/R : Incurred losses of LT line ÷÷÷÷ earned premium of LT lineearned premium of LT lineearned premium of LT lineearned premium of LT line

PremiumPremiumPremiumPremium====

� LT loss ratio trendLT loss ratio trendLT loss ratio trendLT loss ratio trend (data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)

79.8%81.3%83.9%86.3%86.7%DDDD

79.4%81.6%83.4%84.8%87.2%CCCC

79.6%81.4%84.8%88.2%90.9%BBBB

83.5%83.8%84.9%86.8%89.5%AAAA

75.8%75.8%75.8%75.8%78.8%78.8%78.8%78.8%82.5%82.5%82.5%82.5%85.0%85.0%85.0%85.0%89.6%89.6%89.6%89.6%MeritzMeritzMeritzMeritz

FY2009.7FY2009.7FY2009.7FY2009.7FY2008FY2008FY2008FY2008FY2007FY2007FY2007FY2007FY2006FY2006FY2006FY2006FY2005FY2005FY2005FY2005CompaniesCompaniesCompaniesCompanies

====

Tip. Companies with higher concentration on selling savings typeTip. Companies with higher concentration on selling savings typeTip. Companies with higher concentration on selling savings typeTip. Companies with higher concentration on selling savings type have higher loss ratiohave higher loss ratiohave higher loss ratiohave higher loss ratio

Premium Premium Premium Premium –––– Incurred lossesIncurred lossesIncurred lossesIncurred losses ---- Sales cost Sales cost Sales cost Sales cost –––– Administration costAdministration costAdministration costAdministration cost + Investment profit+ Investment profit+ Investment profit+ Investment profit ---- TaxTaxTaxTax –––– Cost of capitalCost of capitalCost of capitalCost of capital

1 1 1 1 –––– L/R L/R L/R L/R –––– Sales cost ratioSales cost ratioSales cost ratioSales cost ratio –––– Administration ratioAdministration ratioAdministration ratioAdministration ratio + Investment yield+ Investment yield+ Investment yield+ Investment yield –––– Tax rateTax rateTax rateTax rate –––– Cost of capital ratioCost of capital ratioCost of capital ratioCost of capital ratio

Page 19: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

18181818

②②②② Sales cost ratioSales cost ratioSales cost ratioSales cost ratio : assumed acquisition cost: assumed acquisition cost: assumed acquisition cost: assumed acquisition cost ÷÷÷÷ gross premiumgross premiumgross premiumgross premium ×××× 85%85%85%85%

� Acquisition cost ratio trendAcquisition cost ratio trendAcquisition cost ratio trendAcquisition cost ratio trend (data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)

?6.9%8.1%2,25727,813DDDD

?6.6%7.8%2,48731,832CCCC

?6.8%8.0%2,53431,577BBBB

8.7%6.5%7.6%4,25455,755AAAA

8.5%8.5%8.5%8.5%7.9%7.9%7.9%7.9%9.3%9.3%9.3%9.3%1,7171,7171,7171,71718,49318,49318,49318,493MeritzMeritzMeritzMeritz

Assumed acquisition Assumed acquisition Assumed acquisition Assumed acquisition costcostcostcost÷÷÷÷

InInInIn----force Biz Premiumforce Biz Premiumforce Biz Premiumforce Biz Premium

Sales cost Sales cost Sales cost Sales cost ratioratioratioratio

(c(c(c(c××××0.85)0.85)0.85)0.85)

RatioRatioRatioRatio(c=b/a)(c=b/a)(c=b/a)(c=b/a)

Assumed Assumed Assumed Assumed acquisition costacquisition costacquisition costacquisition cost

(b)(b)(b)(b)

Gross premiumGross premiumGross premiumGross premium(a)(a)(a)(a)

CompanyCompanyCompanyCompany

(Unit : KRW 100mn)

③③③③ Administration cost ratio : Administration cost Administration cost ratio : Administration cost Administration cost ratio : Administration cost Administration cost ratio : Administration cost ÷÷÷÷ net premium writtennet premium writtennet premium writtennet premium written

� Administration costAdministration costAdministration costAdministration cost : Net expenses : Net expenses : Net expenses : Net expenses ---- Sales costSales costSales costSales cost

12.5%13.5%13.1%13.8%14.1%DDDD

9.7%10.0%10.6%10.5%11.1%CCCC

10.7%12.1%12.2%12.0%14.4%BBBB

11.4%12.3%12.1%12.3%12.1%AAAA

9.8%9.8%9.8%9.8%11.8%11.8%11.8%11.8%12.4%12.4%12.4%12.4%13.0%13.0%13.0%13.0%14.4%14.4%14.4%14.4%MeritzMeritzMeritzMeritz

FY2009.7FY2009.7FY2009.7FY2009.7FY2008FY2008FY2008FY2008FY2007FY2007FY2007FY2007FY2006FY2006FY2006FY2006FY2005FY2005FY2005FY2005CompanyCompanyCompanyCompany

※※※※ Most of administration cost is allocated to each line of businMost of administration cost is allocated to each line of businMost of administration cost is allocated to each line of businMost of administration cost is allocated to each line of business by # of policies or premium size. ess by # of policies or premium size. ess by # of policies or premium size. ess by # of policies or premium size. So longSo longSo longSo long----term administration ratio is adopted the companyterm administration ratio is adopted the companyterm administration ratio is adopted the companyterm administration ratio is adopted the company’’’’s ratios ratios ratios ratio

� Administration cost ratio trendAdministration cost ratio trendAdministration cost ratio trendAdministration cost ratio trend (data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)

� 85% means actual to assumed acquisition cost ratio. If portion o85% means actual to assumed acquisition cost ratio. If portion o85% means actual to assumed acquisition cost ratio. If portion o85% means actual to assumed acquisition cost ratio. If portion of GA sales cost higher in the company, the ratio becomes lowerf GA sales cost higher in the company, the ratio becomes lowerf GA sales cost higher in the company, the ratio becomes lowerf GA sales cost higher in the company, the ratio becomes lower

→→→→ Early execution of UpEarly execution of UpEarly execution of UpEarly execution of Up----front cost will lower future expenses in the coming yearfront cost will lower future expenses in the coming yearfront cost will lower future expenses in the coming yearfront cost will lower future expenses in the coming year

[Reference] In[Reference] In[Reference] In[Reference] In----Force Business profitability comparisonForce Business profitability comparisonForce Business profitability comparisonForce Business profitability comparison

Page 20: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

19191919

④④④④ Investment yield : (LT savings reserveInvestment yield : (LT savings reserveInvestment yield : (LT savings reserveInvestment yield : (LT savings reserve×××× 5%) 5%) 5%) 5%) ÷÷÷÷ earned premium of LTearned premium of LTearned premium of LTearned premium of LT

� Assumed investment yield to be 5% of savings reserve, then transAssumed investment yield to be 5% of savings reserve, then transAssumed investment yield to be 5% of savings reserve, then transAssumed investment yield to be 5% of savings reserve, then translated it to earned premium basis yieldlated it to earned premium basis yieldlated it to earned premium basis yieldlated it to earned premium basis yield

8.7%2,409173%27,82248,185DDDD

8.7%2,771174%31,83455,427CCCC

8.9%2,812178%31,58556,230BBBB

11.4%6,332227%55,768126,643AAAA

8.8%8.8%8.8%8.8%1,6311,6311,6311,631176%176%176%176%18,49618,49618,49618,49632,62732,62732,62732,627MeritzMeritzMeritzMeritz

Investment yieldInvestment yieldInvestment yieldInvestment yieldInvestment profitInvestment profitInvestment profitInvestment profitReserve Reserve Reserve Reserve ÷÷÷÷ PremiumPremiumPremiumPremiumPremiumPremiumPremiumPremiumLT savings reserveLT savings reserveLT savings reserveLT savings reserveCompanyCompanyCompanyCompany

(Unit : KRW 100mn)

Tip. The greater reserve size is, the bigger the yieldTip. The greater reserve size is, the bigger the yieldTip. The greater reserve size is, the bigger the yieldTip. The greater reserve size is, the bigger the yield

⑤⑤⑤⑤ Discount Rate : Discount Rate : Discount Rate : Discount Rate : CAPM(CapitalCAPM(CapitalCAPM(CapitalCAPM(Capital Asset Pricing Model) methodAsset Pricing Model) methodAsset Pricing Model) methodAsset Pricing Model) method

� Discount Rate = Risk free rate + Risk premiumDiscount Rate = Risk free rate + Risk premiumDiscount Rate = Risk free rate + Risk premiumDiscount Rate = Risk free rate + Risk premium

10.0%6.5%0.98AAAA

12.4%8.9%1.35BBBB

12.8%9.3%1.41CCCC

11.5%11.5%11.5%11.5%8.0%8.0%8.0%8.0%1.211.211.211.21

6.6%6.6%6.6%6.6%3.5%3.5%3.5%3.5%

MeritzMeritzMeritzMeritz

11.8%8.3%1.26DDDD

Discount rateDiscount rateDiscount rateDiscount rateRisk premiumRisk premiumRisk premiumRisk premiumBetaBetaBetaBetaMarket risk premiumMarket risk premiumMarket risk premiumMarket risk premiumRisk free rateRisk free rateRisk free rateRisk free rateCompanyCompanyCompanyCompany

→→→→ Risk premium = Market risk premium Risk premium = Market risk premium Risk premium = Market risk premium Risk premium = Market risk premium ×××× volatility of each company compared to volatility of each company compared to volatility of each company compared to volatility of each company compared to market(market(market(market(ββββ) ) ) )

� Investment yield trend Investment yield trend Investment yield trend Investment yield trend (data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)(data available from monthly report provided by each company)

� Discount rate of companiesDiscount rate of companiesDiscount rate of companiesDiscount rate of companies

[Reference] In[Reference] In[Reference] In[Reference] In----Force Business profitability comparisonForce Business profitability comparisonForce Business profitability comparisonForce Business profitability comparison

Page 21: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

20202020

� FY2009.April~August

Review

Page 22: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

21212121

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.

Page 23: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

22222222

Net Income TrendNet Income TrendNet Income TrendNet Income TrendNet Income TrendNet Income TrendNet Income TrendNet Income Trend

173

60

394

525

557

FY05 August FY06 August FY07 August FY08 August FY09 August

☞☞☞☞☞☞☞☞ Produced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceedProduced the biggest scale of profit since its founding (exceeds FY07)s FY07)s FY07)s FY07)s FY07)s FY07)s FY07)s FY07)

1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income

Produced the biggest Produced the biggest Produced the biggest Produced the biggest Produced the biggest Produced the biggest Produced the biggest Produced the biggest scale of profit scale of profit scale of profit scale of profit scale of profit scale of profit scale of profit scale of profit

(Unit: KRW 100 mn)

Page 24: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

23232323

Achievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to plan

1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income1. Net Income

521521521521

PlanPlanPlanPlanPlanPlanPlanPlan

557557557557(+36(+36(+36(+36↑↑↑↑ compared to compared to compared to compared to

plan)plan)plan)plan)

Net IncomeNet IncomeNet IncomeNet IncomeNet IncomeNet IncomeNet IncomeNet Income

(Report)(Report)(Report)(Report)(Report)(Report)(Report)(Report)

731731731731(+210(+210(+210(+210↑↑↑↑ compared to compared to compared to compared to

plan)plan)plan)plan)

Practical profitPractical profitPractical profitPractical profitPractical profitPractical profitPractical profitPractical profit

(excluding one(excluding one(excluding one(excluding one(excluding one(excluding one(excluding one(excluding one--------off)off)off)off)off)off)off)off)

174174174174

OneOneOneOneOneOneOneOne--------off itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff items

RGRGRGRGRGRGRGRGAdditional Additional Additional Additional Additional Additional Additional Additional

amortization of DACamortization of DACamortization of DACamortization of DACamortization of DACamortization of DACamortization of DACamortization of DAC

--------403403403403403403403403

+174+174+174+174+174+174+174+174

NetNetNetNetNetNetNetNet

--------174174174174174174174174

OthersOthersOthersOthersOthersOthersOthersOthers

+55+55+55+55+55+55+55+55

Note) April~ August FY09 figures

(Unit: KRW 100 mn)

Page 25: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

24242424

98.8%

103.4%

125.9%

104.4% 102.9%

Total LT new LT Auto Commercial

Achievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to plan

ResultResultResultResultResultResultResultResult 406406406406406406406406 8,8688,8688,8688,8688,8688,8688,8688,868 3,0503,0503,0503,0503,0503,0503,0503,050 1,3181,3181,3181,3181,3181,3181,3181,31813,23613,23613,23613,23613,23613,23613,23613,236

PlanPlanPlanPlanPlanPlanPlanPlan 322322322322322322322322 8,4988,4988,4988,4988,4988,4988,4988,498 2,9632,9632,9632,9632,9632,9632,9632,963 1,3351,3351,3351,3351,3351,3351,3351,33512,79512,79512,79512,79512,79512,79512,79512,795

7,622

8,731

13,236

11,635

10,069

8.3%

8.2%

7.9%

8.0%

8.0%

FY05 Aug FY06 Aug FY07 Aug FY08 Aug FY09 Aug

Gross premium

Market share

Peer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparison

☞☞☞☞☞☞☞☞ Sales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previSales exceeded business plan, market share improved to the previous yearous yearous yearous yearous yearous yearous yearous year

2. Sales2. Sales2. Sales2. Sales2. Sales2. Sales2. Sales2. Sales

G/RG/RG/RG/RG/RG/RG/RG/R 14.6%14.6%14.6%14.6%14.6%14.6%14.6%14.6% 15.3%15.3%15.3%15.3%15.3%15.3%15.3%15.3% 15.6%15.6%15.6%15.6%15.6%15.6%15.6%15.6% 13.8%13.8%13.8%13.8%13.8%13.8%13.8%13.8%11.9%11.9%11.9%11.9%11.9%11.9%11.9%11.9%

Industry G/RIndustry G/RIndustry G/RIndustry G/RIndustry G/RIndustry G/RIndustry G/RIndustry G/R 13.5%13.5%13.5%13.5%13.5%13.5%13.5%13.5% 16.9%16.9%16.9%16.9%16.9%16.9%16.9%16.9% 11.7%11.7%11.7%11.7%11.7%11.7%11.7%11.7% 12.8%12.8%12.8%12.8%12.8%12.8%12.8%12.8%8.9%8.9%8.9%8.9%8.9%8.9%8.9%8.9%

Note) April~August FY09 Result

(Unit: KRW 100mn)(Unit: KRW 100mn)

Page 26: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

25252525

82.0%

81.2% 78.9%

75.5%

71.8%

81.5%

81.8%

78.7%76.5%

76.0%

FY2005 FY2006 FY2007 FY2008 April~July

FY2009

Meritz Top 4

(74.0%)

74.3%

60.1%

69.4%

77.1%

72.2%72.7%

29.2%

75.8%

Total LT Auto Commercial

Plan ResultAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to plan

※ FY2008 excludes RG losses, number in the ( ) excludes RG effect-------- -------- 63.5%63.5%63.5%63.5%63.5%63.5%63.5%63.5%74.4%74.4%74.4%74.4%74.4%74.4%74.4%74.4%

Excluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding one--------

off itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff items

3. Loss Ratio3. Loss Ratio3. Loss Ratio3. Loss Ratio3. Loss Ratio3. Loss Ratio3. Loss Ratio3. Loss Ratio

Peer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparison

☞☞☞☞☞☞☞☞ Loss ratio improved Loss ratio improved Loss ratio improved Loss ratio improved Loss ratio improved Loss ratio improved Loss ratio improved Loss ratio improved --------1.6%p, compared to plan1.6%p, compared to plan1.6%p, compared to plan1.6%p, compared to plan1.6%p, compared to plan1.6%p, compared to plan1.6%p, compared to plan1.6%p, compared to plan (without one(without one(without one(without one(without one(without one(without one(without one--------off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)off items, 0.1%p higher than plan)

-------- Better result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than toBetter result compared to industry average, 2.0%p lower than top 4 average even without RGp 4 average even without RGp 4 average even without RGp 4 average even without RGp 4 average even without RGp 4 average even without RGp 4 average even without RGp 4 average even without RG

Note) April~August FY09 Result

Page 27: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

26262626

10.1%11.0%

11.4%

14.3%

19.2%

9.6%10.5% 10.2%

13.3%

15.9%

FY2005 FY2006 FY2007 FY2008 April~July

FY2009

Meritz 2nd tier

14.6%

4.5%

14.2%

15.4%14.2%

17.7%

4.8%

19.7%

Total LT Auto Commercial

Plan ResultAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to plan

※ 2nd tier : Hyundai, Dongbu, LIG15.0%15.0%15.0%15.0%15.0%15.0%15.0%15.0% -------- --------14.4%14.4%14.4%14.4%14.4%14.4%14.4%14.4%

4. Sales Cost Ratio4. Sales Cost Ratio4. Sales Cost Ratio4. Sales Cost Ratio4. Sales Cost Ratio4. Sales Cost Ratio4. Sales Cost Ratio4. Sales Cost Ratio

Peer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparison

☞☞☞☞☞☞☞☞ Sales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher thanSales cost ratio is 3.1%p higher than planplanplanplanplanplanplanplan ((((((((--------0.2%p without one0.2%p without one0.2%p without one0.2%p without one0.2%p without one0.2%p without one0.2%p without one0.2%p without one--------off item)off item)off item)off item)off item)off item)off item)off item)

-------- Additional acquisition cost incurred in Additional acquisition cost incurred in Additional acquisition cost incurred in Additional acquisition cost incurred in Additional acquisition cost incurred in Additional acquisition cost incurred in Additional acquisition cost incurred in Additional acquisition cost incurred in April~AugustApril~AugustApril~AugustApril~AugustApril~AugustApril~AugustApril~AugustApril~August is 403 higher than planis 403 higher than planis 403 higher than planis 403 higher than planis 403 higher than planis 403 higher than planis 403 higher than planis 403 higher than plan →→→→→→→→ LT Sales cost ratioLT Sales cost ratioLT Sales cost ratioLT Sales cost ratioLT Sales cost ratioLT Sales cost ratioLT Sales cost ratioLT Sales cost ratio +4.6%p+4.6%p+4.6%p+4.6%p+4.6%p+4.6%p+4.6%p+4.6%p

Note) April~August FY09 Result

Excluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding one--------

off itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff items

Page 28: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

27272727

Note1) April~August FY09 Result

Note2) Administration cost : other than sales cost (acquisition cost and reinsurance commission)

5. Administration Cost Ratio5. Administration Cost Ratio5. Administration Cost Ratio5. Administration Cost Ratio5. Administration Cost Ratio5. Administration Cost Ratio5. Administration Cost Ratio5. Administration Cost Ratio

9.9%

11.9%

12.5%

13.3%

14.3%

11.1%12.1%12.4%

13.1%

FY2005 FY2006 FY2007 FY2008 April~July

FY2009

Meritz Top 4

※※※※ DongbuDongbuDongbuDongbu : 9.7%: 9.7%: 9.7%: 9.7%

☞☞☞☞☞☞☞☞ Constant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted heaConstant effort to gain productivity and efficiency resulted healthy administration cost ratiolthy administration cost ratiolthy administration cost ratiolthy administration cost ratiolthy administration cost ratiolthy administration cost ratiolthy administration cost ratiolthy administration cost ratio

-------- Administration cost decreased 75 compared to Administration cost decreased 75 compared to Administration cost decreased 75 compared to Administration cost decreased 75 compared to Administration cost decreased 75 compared to Administration cost decreased 75 compared to Administration cost decreased 75 compared to Administration cost decreased 75 compared to plan(ratioplan(ratioplan(ratioplan(ratioplan(ratioplan(ratioplan(ratioplan(ratio --------1.0%p)1.0%p)1.0%p)1.0%p)1.0%p)1.0%p)1.0%p)1.0%p)

660

633617

602

1,293

1,218

Wages General administrative Total administration

Plan Result

Administration ratioAdministration ratioAdministration ratioAdministration ratioAdministration ratioAdministration ratioAdministration ratioAdministration ratio

(compared to plan)(compared to plan)(compared to plan)(compared to plan)(compared to plan)(compared to plan)(compared to plan)(compared to plan)10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%

((((((((--------1.0%p1.0%p1.0%p1.0%p1.0%p1.0%p1.0%p1.0%p↓↓↓↓↓↓↓↓))))))))

Achievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to plan Peer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparison

(Unit: KRW 100mn)

Page 29: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

28282828

106.3%105.5%

102.8%

101.7%

101.0%

103.7%

104.4%

100.9%

101.4%

102.4%

FY2005 FY2006 FY2007 FY2008 April~July

FY2009

Meritz Top 4

(99.0%)

99.9%

25.5%

74.3%

27.7%

100.4%

72.7%

Combinded ratio Loss ratio Expense ratio

PlanResult

Combined ratioCombined ratioCombined ratioCombined ratioCombined ratioCombined ratioCombined ratioCombined ratio

74.4%74.4%74.4%74.4%74.4%74.4%74.4%74.4% 24.4%24.4%24.4%24.4%24.4%24.4%24.4%24.4%98.7%98.7%98.7%98.7%98.7%98.7%98.7%98.7%

6. Underwriting Overview6. Underwriting Overview6. Underwriting Overview6. Underwriting Overview6. Underwriting Overview6. Underwriting Overview6. Underwriting Overview6. Underwriting Overview

☞☞☞☞☞☞☞☞ Combined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without oneCombined ratio beat plan by 0.5%p (without one--------off item, off item, off item, off item, off item, off item, off item, off item, --------1.2%p improvement)1.2%p improvement)1.2%p improvement)1.2%p improvement)1.2%p improvement)1.2%p improvement)1.2%p improvement)1.2%p improvement)

-------- Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4Underwriting profitability improved further, compared to top 4

Peer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparison

Excluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding oneExcluding one--------

off itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff itemsoff items

Note) April~August FY09 Result

※ FY2008 excludes RG losses, number in the ( ) excludes RG effect

Page 30: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

29292929

Plan Result

749749749749749749749749

+68+68+68+68

883883883883883883883883

+43+43+43+43+19+19+19+19 +4+4+4+4

Yield: 4.3%Yield: 4.3%Yield: 4.3%Yield: 4.3%Yield: 4.3%Yield: 4.3%Yield: 4.3%Yield: 4.3%

StockStockStockStockStockStockStockStock

Overseas Overseas Overseas Overseas Overseas Overseas Overseas Overseas securitiessecuritiessecuritiessecuritiessecuritiessecuritiessecuritiessecurities

Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic bond, etcbond, etcbond, etcbond, etcbond, etcbond, etcbond, etcbond, etc

OthersOthersOthersOthersOthersOthersOthersOthers

yield : 5.1%yield : 5.1%yield : 5.1%yield : 5.1%yield : 5.1%yield : 5.1%yield : 5.1%yield : 5.1%

5.9%

3.2%

5.7%

6.4%

7.1%

5.8%

5.4%

6.2%

6.3%6.1%

FY2005 FY2006 FY2007 FY2008 April~July

FY2009

Meritz Top 4

※ Excluding real estate and equity-method stock

7. Investment7. Investment7. Investment7. Investment7. Investment7. Investment7. Investment7. Investment

※ Gain & loss from foreign currency for RG(-23.5) excluded

☞☞☞☞☞☞☞☞ Investment incomeInvestment incomeInvestment incomeInvestment incomeInvestment incomeInvestment incomeInvestment incomeInvestment income 883883883883883883883883 (+134 compared to plan) (+134 compared to plan) (+134 compared to plan) (+134 compared to plan) (+134 compared to plan) (+134 compared to plan) (+134 compared to plan) (+134 compared to plan)

-------- investment yield exceeded plan byinvestment yield exceeded plan byinvestment yield exceeded plan byinvestment yield exceeded plan byinvestment yield exceeded plan byinvestment yield exceeded plan byinvestment yield exceeded plan byinvestment yield exceeded plan by 0.8%p0.8%p0.8%p0.8%p0.8%p0.8%p0.8%p0.8%p

Achievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to planAchievement compared to plan Peer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparisonPeer group comparison

(Unit: KRW 100mn)

Note) April~August FY09 Result

Page 31: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

30303030

8. Solvency ratio8. Solvency ratio8. Solvency ratio8. Solvency ratio8. Solvency ratio8. Solvency ratio8. Solvency ratio8. Solvency ratio

☞☞☞☞ August 2009August 2009August 2009August 2009 Solvency ratio is 211.2% (+21.3%p Solvency ratio is 211.2% (+21.3%p Solvency ratio is 211.2% (+21.3%p Solvency ratio is 211.2% (+21.3%p qoqqoqqoqqoq))))

- Valuation loss of available-for-sales securities decreased, net income boosted � solvency margin increased 1,088

4,0034,269

6,6256,139

7,227

3,4223,2332,816

2,5052,072

2006.3 2007.3 2008.3 2009.3 2009.8

Solvency margin

Solvency requirementSolvency ratioSolvency ratioSolvency ratioSolvency ratioSolvency ratioSolvency ratioSolvency ratioSolvency ratio

211.2%

189.9%

235.3%

170.4%

193.1%

IncreasedIncreasedIncreasedIncreasedIncreasedIncreasedIncreasedIncreased 21.3%p 21.3%p 21.3%p 21.3%p 21.3%p 21.3%p 21.3%p 21.3%p qoqqoqqoqqoqqoqqoqqoqqoq

----10.1%p10.1%p10.1%p10.1%p↓↓↓↓OthersOthersOthersOthers

211.2%211.2%211.2%211.2%August 2009 Solvency ratioAugust 2009 Solvency ratioAugust 2009 Solvency ratioAugust 2009 Solvency ratio

IncomeIncomeIncomeIncome

Valuation loss from Valuation loss from Valuation loss from Valuation loss from

availableavailableavailableavailable----forforforfor----sales sales sales sales

securitiessecuritiessecuritiessecurities

189.9%189.9%189.9%189.9%Mar 2009 Solvency ratioMar 2009 Solvency ratioMar 2009 Solvency ratioMar 2009 Solvency ratio

18.2%p18.2%p18.2%p18.2%p↑↑↑↑

13.2%p13.2%p13.2%p13.2%p↑↑↑↑

DifferDifferDifferDiffer----

enceenceenceence

CategoryCategoryCategoryCategory Solvency ratioSolvency ratioSolvency ratioSolvency ratio

(Unit: KRW 100mn)

Page 32: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

31313131

9. FY20099. FY20099. FY20099. FY2009

Page 33: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

32323232

� RG Insurance Update

Page 34: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

33333333

1. RG Exposure 1. RG Exposure 1. RG Exposure 1. RG Exposure

☞☞☞☞ Total guarantee amounts in Sep. 2009 : 205,421(000 US$)Total guarantee amounts in Sep. 2009 : 205,421(000 US$)Total guarantee amounts in Sep. 2009 : 205,421(000 US$)Total guarantee amounts in Sep. 2009 : 205,421(000 US$)

- -323,271(000 US$) reduction compared with Sep. 2008

(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)

* Total Guarantee : Total amounts that we guaranteed irrespective of installment payment

** Incurred Exposure : Our share of actual paid installment

Total guarantee Total guarantee Total guarantee Total guarantee Total guarantee Total guarantee Total guarantee Total guarantee

in Sep. 2008in Sep. 2008in Sep. 2008in Sep. 2008in Sep. 2008in Sep. 2008in Sep. 2008in Sep. 2008

528,692528,692528,692528,692528,692528,692528,692528,692 ----172,425172,425172,425172,425

205,421205,421205,421205,421205,421205,421205,421205,421

Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in

Sep 2009Sep 2009Sep 2009Sep 2009Sep 2009Sep 2009Sep 2009Sep 2009

----48,43248,43248,43248,432

----102,414102,414102,414102,414DeliveredDeliveredDeliveredDeliveredDeliveredDeliveredDeliveredDelivered

(17 vessels)(17 vessels)(17 vessels)(17 vessels)(17 vessels)(17 vessels)(17 vessels)(17 vessels)

3 Insolvent 3 Insolvent 3 Insolvent 3 Insolvent 3 Insolvent 3 Insolvent 3 Insolvent 3 Insolvent

builders :builders :builders :builders :builders :builders :builders :builders :

Exposure FixedExposure FixedExposure FixedExposure FixedExposure FixedExposure FixedExposure FixedExposure Fixed

(Total(Total(Total(Total(Total(Total(Total(Total→→→→→→→→Incurred)Incurred)Incurred)Incurred)Incurred)Incurred)Incurred)Incurred)

Claim paymentClaim paymentClaim paymentClaim paymentClaim paymentClaim paymentClaim paymentClaim payment

(3 vessels)(3 vessels)(3 vessels)(3 vessels)(3 vessels)(3 vessels)(3 vessels)(3 vessels)

Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : Risk changes until Sep FY2009 : --------323,271323,271323,271323,271323,271323,271323,271323,271

(48 (48 (48 (48 (48 (48 (48 (48

vessels)vessels)vessels)vessels)vessels)vessels)vessels)vessels)(28 (28 (28 (28 (28 (28 (28 (28

vessels)vessels)vessels)vessels)vessels)vessels)vessels)vessels)

Page 35: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

34343434

2. RG Risk Changes2. RG Risk Changes2. RG Risk Changes2. RG Risk Changes

☞☞☞☞ The amounts having loss probability of total guarantee : 40,531(The amounts having loss probability of total guarantee : 40,531(The amounts having loss probability of total guarantee : 40,531(The amounts having loss probability of total guarantee : 40,531(000 US$)000 US$)000 US$)000 US$)

- Risk reduction of -164,890(000 US$)

(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)

* RG risks terminates when the vessel is delivered to ship-owner but we can consider the risks terminated when the vessel is launched

Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in Total guarantee in

Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009

205,421205,421205,421205,421205,421205,421205,421205,421 ----110,404110,404110,404110,404

40,53140,53140,53140,53140,53140,53140,53140,531

Maximum probable Maximum probable Maximum probable Maximum probable Maximum probable Maximum probable Maximum probable Maximum probable

losses in Sep. 2009losses in Sep. 2009losses in Sep. 2009losses in Sep. 2009losses in Sep. 2009losses in Sep. 2009losses in Sep. 2009losses in Sep. 2009

(Actual Exposure)(Actual Exposure)(Actual Exposure)(Actual Exposure)(Actual Exposure)(Actual Exposure)(Actual Exposure)(Actual Exposure)

----18,22118,22118,22118,221

----36,26536,26536,26536,2653 insolvent 3 insolvent 3 insolvent 3 insolvent 3 insolvent 3 insolvent 3 insolvent 3 insolvent

builders : builders : builders : builders : builders : builders : builders : builders :

Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding

reservereservereservereservereservereservereservereserve

(14 vessels)(14 vessels)(14 vessels)(14 vessels)(14 vessels)(14 vessels)(14 vessels)(14 vessels)Unpaid Unpaid Unpaid Unpaid Unpaid Unpaid Unpaid Unpaid

installmentsinstallmentsinstallmentsinstallmentsinstallmentsinstallmentsinstallmentsinstallments

Launched vesselLaunched vesselLaunched vesselLaunched vesselLaunched vesselLaunched vesselLaunched vesselLaunched vessel

(2)(2)(2)(2)(2)(2)(2)(2)

Risk reduction : Risk reduction : Risk reduction : Risk reduction : Risk reduction : Risk reduction : Risk reduction : Risk reduction : ----------------164,890164,890164,890164,890164,890164,890164,890164,890

(28 vessels)(28 vessels)(28 vessels)(28 vessels)(28 vessels)(28 vessels)(28 vessels)(28 vessels)(12 vessels)(12 vessels)(12 vessels)(12 vessels)(12 vessels)(12 vessels)(12 vessels)(12 vessels)

Page 36: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

35353535

3. Actual Exposure in FY20093. Actual Exposure in FY20093. Actual Exposure in FY20093. Actual Exposure in FY2009

☞☞☞☞ Actual Exposure of 40,531(000 US$) in Sep. 2009 will be mostly dActual Exposure of 40,531(000 US$) in Sep. 2009 will be mostly dActual Exposure of 40,531(000 US$) in Sep. 2009 will be mostly dActual Exposure of 40,531(000 US$) in Sep. 2009 will be mostly decreased in the end of 2009ecreased in the end of 2009ecreased in the end of 2009ecreased in the end of 2009

- Remaining exposure in the end of 2009 : 2,100(000 US$)

2,1002,1002,1002,1002,1002,1002,1002,100

----54,48654,48654,48654,486----2,1412,1412,1412,141----28,99428,99428,99428,994----23,35123,35123,35123,351TotalTotalTotalTotal

2,1002,1002,1002,1002,1002,1002,1002,1000000000000000000Actual Exposure in the Actual Exposure in the Actual Exposure in the Actual Exposure in the Actual Exposure in the Actual Exposure in the Actual Exposure in the Actual Exposure in the

end of FY2009 end of FY2009 end of FY2009 end of FY2009 end of FY2009 end of FY2009 end of FY2009 end of FY2009

-36,265-2,141-14,498-19,626Unpaid

installment

40,53140,53140,53140,53140,53140,53140,53140,531

-18,221

95,017

TotalTotalTotalTotal

2,1002,1002,1002,1002,1002,1002,1002,10028,99028,99028,99028,99028,99028,99028,99028,9909,4419,4419,4419,4419,4419,4419,4419,441Actual Exposure in Actual Exposure in Actual Exposure in Actual Exposure in Actual Exposure in Actual Exposure in Actual Exposure in Actual Exposure in

Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009

0-14,496-3,725Launched

Risk

reduc

tion

4,24157,98432,792Total Guarantee in

Sep. 2009

OrientOrientOrientOrient

Sekwang Sekwang Sekwang Sekwang

ShipbuildiShipbuildiShipbuildiShipbuildi

ngngngng

Sekwang Sekwang Sekwang Sekwang

HeavyHeavyHeavyHeavy(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)

Risk exposure for 3 Risk exposure for 3 Risk exposure for 3 Risk exposure for 3 Risk exposure for 3 Risk exposure for 3 Risk exposure for 3 Risk exposure for 3 nomalnomalnomalnomalnomalnomalnomalnomal builders builders builders builders builders builders builders builders (Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)(Unit : US$1,000)

Actual exposure in Actual exposure in Actual exposure in Actual exposure in Actual exposure in Actual exposure in Actual exposure in Actual exposure in

Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009Sep. 2009

40,53140,53140,53140,53140,53140,53140,53140,531 ----9,4419,4419,4419,441

Actual exposure in the Actual exposure in the Actual exposure in the Actual exposure in the Actual exposure in the Actual exposure in the Actual exposure in the Actual exposure in the

end of 2009end of 2009end of 2009end of 2009end of 2009end of 2009end of 2009end of 2009

Actual Exposure in FY2009Actual Exposure in FY2009Actual Exposure in FY2009Actual Exposure in FY2009Actual Exposure in FY2009Actual Exposure in FY2009Actual Exposure in FY2009Actual Exposure in FY2009

----28,99028,99028,99028,990

Sekwang Sekwang Sekwang Sekwang Sekwang Sekwang Sekwang Sekwang

HeavyHeavyHeavyHeavyHeavyHeavyHeavyHeavy

(7)(7)(7)(7)(7)(7)(7)(7)

Sekwang Sekwang Sekwang Sekwang Sekwang Sekwang Sekwang Sekwang

ShipbuildingShipbuildingShipbuildingShipbuildingShipbuildingShipbuildingShipbuildingShipbuilding

(3)(3)(3)(3)(3)(3)(3)(3)2,100 (12,100 (12,100 (12,100 (12,100 (12,100 (12,100 (12,100 (1))))))))

Risk reduction in FY2009 : Risk reduction in FY2009 : Risk reduction in FY2009 : Risk reduction in FY2009 : Risk reduction in FY2009 : Risk reduction in FY2009 : Risk reduction in FY2009 : Risk reduction in FY2009 :

--------38,43138,43138,43138,43138,43138,43138,43138,431

(12 (12 (12 (12 (12 (12 (12 (12

Vessels)Vessels)Vessels)Vessels)Vessels)Vessels)Vessels)Vessels)

* Orient Shipyard : 1 of 2 vessel will be delivered

Page 37: FY2009 2H Review - Meritzir.meritzfire.com/ir/eng/upload/FY2008_EV_material_eng.pdf · FY2009 2H Review September 24, 2009 FY2008 Embedded Value FY2009.April~AugustReview RG Insurance

36363636

Thank youThank youThank youThank you

Investor Relations Contacts:

Jae-Hyoung Kim (General Manager)

822-3786-1150, [email protected]

Pil-Soo Kim (Manager)

822-3786-1155, [email protected]

Ji-Yon Park (Manager)

822-3786-1156, [email protected]

http://ir.meritzfire.com