For the attention of our Shareholders / Investors / Analysts Aioi Insurance Company Presentation (including FY2003 Interim Earnings) 5 December 2003 Aioi Insurance Co., Ltd.
CONTENTS I. FY2003 Interim Earnings Summary 1. Key Points P1 2. Premium Income P2 3. Claims P3 4. Operating Expenses P4 5. Asset Management P5 6. Capital P6 Ref: Fortress Re aviation reinsurance data P7 II. FY2003 Earnings Forecast 1. Key Points P8 III. 2H Progress in Key Areas 1. Measures to raise income P9 (1) Accelerated development of Toyota market P10 (2) Promotion of dealer introductions and shift to large repair shops P11 (3) Reform of pro channel activities P12 (4) Expanded selling of platform products P13 (5) Expanded selling of personal insurance products P14 (6) Development of household fire insurance market P15 2. Drastic enhancement of efficiency through business model reform P16 3. Overseas strategy P17 IV. Aioi Life Interim Earnings Summary P18 Data FY2003 (Sep) Interim Earnings Data
I. FY2003 Interim Earnings Summary
I. FY2003 Interim Earnings Summary 1. Key Points Unit: Yen bn ◆ Net Premium Income +0.6% (excl. special factors: -2.1%) Sep 2002 Sep 2003 Interim Interim Change +/- % Net Premiums 416.6 419.2 +2.5 +0.6% Fortress Re -¥7.9bn, domestic direct (facultative) -¥6.8bn (of which motor -¥4.3bn) Net Claims 214.9 222.3 +7.3 +3.4% Loss Ratio 56.3% 57.5% +1.2P ◆ Net Claims Paid +3.4% (excl. special factors: -1.6%) Net Operating Expenses 148.5 138.0 -10.4 -7.0% Net Expense Ratio 35.6% 32.9% - 2.7P Combined Ratio 91.9% 90.4% - 1.5P Fortress Re +¥5.8bn, domestic direct motor -¥4.7bn Underwriting Profit 9.1 13.2 +4.0 +44.6% Marginal increase in loss ratio on decline in income (excl. special factors +0.2P) Asset Management Profit/Loss 9.8 14.0 +4.2 +43.0% ◆ Net Operating Expenses –7.0% (excl. special factors: –6.3%) Ordinary Profit 11.0 23.0 +12.0 +108.8% Interim Net Profit 3.7 9.0 +5.2 +141.1% * Loss Ratio includes loss adjustment expenses Personnel -¥3.5bn, non-personnel -¥1.5bn; improvement in expense ratio thanks to continued enhancement of efficiencies, offsetting fall in income [Extraordinary Factors (abolition of CALI reinsurance scheme, Fortress Re impact)] (excl. special factors –1.6P) Sep 2002 Sep 2003 (Note: including loss adjusting expenses: personnel -¥3.9bn, non-personnel -¥1.8bn) Interim Interim Change +/- % Net Premiums 25.8 36.7 +10.8 +42.2% ◆ Underwriting Profit ¥13.2bn Abolition of CALI R/I 15.0 33.9 +18.8 +125.0% Fortress Re 10.7 2.7 -7.9 -74.0% Net Claims 11.3 21.9 +10.6 +93.5% +¥4.0bn due to cost savings (+44.6%) Abolition of CALI R/I 0.0 4.7 +4.7 - Fortress Re 11.3 17.2 +5.8 +51.6% ◆ Profit on assets under management ¥14.0bn Net Operating Expenses 1.3 0.1 -1.2 -86.3% Abolition of CALI R/I - - - - Fortress Re 1.3 0.1 -1.2 -86.3% Loss on revaluation of securities ¥1.1bn (-¥4.2bn) [Excluding Special Factors] ◆ Ordinary Profit ¥23.0bn Sep 2002 Sep 2003 Interim Interim Change +/- % Net Premiums 390.8 382.5 -83 -2.1% + ¥12.0bn (+108.8%) – a significant increase in profit Net Claims 203.6 200.3 -33 - 1.6% Loss Ratio 57.1% 57.3% +0.2P ◆ Interim Net Profit ¥9.0bn Net Operating Expenses 147.1 137.8 -9.2 -6.3% Net Expense Ratio 37.6% 36.0% - 1.6P Combined Ratio 94.7% 93.3% - 1.4P +¥5.2bn (+141.1%) 1
I. FY2003 Interim Earnings Summary 2. Premium Income ■ Net Premiums by Class ◆ Main Factors (* result basis) [Excl. special factors (abolition of CALI R/I scheme, Fortress Re impact] Unit: Yen bn, % Reinsurance Motor Reduction in overseas inwards R/I -¥1.6bn 30 Sep 2002 30 Sep 2003 Class Boost from platform products +¥2.2bn* Amount +/- % Amount +/- % Fire Gvt Housing Loan Corp fire treaty -¥800mn ＋ 0.8 Fire 39.1 -15.0 39.4 Savings-type fire -¥500mn ＋ 0.7 ＋ 0.8 Marine 2.4 2.5 3rd Sector +¥1.3bn General casualty -¥900mn Casualty 26.3 -3.2 24.9 -5.3 Casualty Domestic Savings-type casualty -¥1.1bn ＋ 0.2 Motor 245.0 238.7 -2.6 Direct ＋ 0.7 ＋ 4.0 Toyota Group sales outlets/cos. +¥2.7bn* CALI 42.3 44.0 Motor Non-Toyota Group dealers -¥1.1bn* ＋ 6.1 Other 35.5 32.8 -7.5 Downturn in unit prices -¥4.4bn* TOTAL 390.8 -1.3 382.5 -2.1 Other Reduction in credit insurance -¥1.7bn ■ Operating Result by Channel ◆ Income Trend in Main Channels % Units: Yen bn, % 7 Toyota Gp sales outlets Sep 2002 Sep 2003 6 Channel 6.4 Motor Amount +/- % Amount +/- % 5 Full-time pros 4.2 3.9 Pro 148.5 -2.0 145.5 -2.0 4 ● Toyota sales outlets ＋ 0.4 ＋ 0.5 Motor 81.4 81.9 3 solid ＋ 4.2 ＋ 3.9 2 Toyota outlets 71.4 74.0 0.5 1 0.4 Non-Toyota dealers 16.9 -9.1 15.0 -11.1 ● Motor income rising 0 -1.1 ＋ 2.6 ＋ 1.3 Corporates/Financial 71.5 72.4 -1 ● Pro income falling Other general 24.4 -11.4 22.0 -9.8 -2 -1.8 -2.0 -2.0 TOTAL 414.2 -0.8 410.8 -0.8 -3 30/9/2001 30/9/2002 30/9/2003 2
I. FY2003 Interim Earnings Summary 3. Claims Paid [Excl. special factors (abolition of CALI R/I, Fortress Re impact)] ■ Net Claims by Class ◆ Motor E/I Loss Ratio Trend ％ ％ (excl. domestic loss adjusting Yen bn costs) 62.0 65 63.3 Claims Paid 217.5 220 Overall loss 61.0 63 ratio 60.6 60.0 210 61 S t a b l e t r e n d 59.6 60.1 203.6 continues in FY03 59.0 200.3 59 57.6 200 58.0 57 57.0 57.3 54.8 54.6 190 57.1 Improvement 55 56.0 to -8.7% 180 55.0 53 30/9/2003 30/9/2001 30/9/2002 30/3/2001 30/9/2001 30/3/2002 30/9/2002 30/3/2003 30/9/2003 30/9/2001 30/9/2002 30/9/2003 Class Net Net Net Reduction in claims, but overall loss ratio up Loss Ratio Loss Ratio Loss Ratio Claims Claims Claims yoy 0.2% due to fall in income Fire 22.2 50.6 17.2 46.4 16.8 44.7 - 1.7P Marine 1.9 80.8 1.1 52.2 2.1 90.1 + 37.9P ● Significant improvement in motor loss ratio, Casualty 10.1 42.0 9.4 40.4 8.5 39.2 - 1.2P Motor 137.9 61.4 129.1 57.5 125.5 57.2 - 0.3P stable development continues in FY03 CALI 24.6 68.8 25.5 69.9 25.1 65.8 - 4.1P Other 20.6 65.9 20.9 63.4 22.0 73.0 + 9.6P ● Increase in marine loss ratio due to large loss TOTAL 217.5 60.1 203.6 57.1 200.3 57.3 + 0.2P * Loss Ratio includes loss adjusting expenses 3
I. FY2003 Interim Earnings Summary 4. Operating Expenses [Excl. special factors (abolition of CALI R/I, Fortress Re impact)] ■ Expense Ratio & Operating Expense Reduction ◆ Streamlining ％ Yen bn Offices Non-personnel Personnel Personnel (Total pre-merger basis: Personnel: 9,400 / Offices: 523) 38.0 80 8,500 400 74.4 72.1 8,200 Personnel 66.9 390 70 37.5 Offices 380 7,899 36.9 37.6 60 370 37.0 7,708 50 360 34.0 33.3 36.5 40 7,500 350 31.8 340 350 30 36.0 342 330 36.0 20 320 329 35.5 40.4 10 38.7 310 35.1 35.0 6,500 300 0 30/9/2001 30/9/2002 30/9/2003 30/9/2001 30/9/2002 30/9/2003 ◆ IT Investment Unit: Yen bn Unit: Yen bn FY2001 FY2002 FY2003 Est Change Change % System costs 20.1 21.6 21.1 30/9/2001 30/9/2002 30/9/2003 yoy yoy of which: new administrative/ － 2.0 4.6 (prior year) (prior year) agency systems investment Underwriting related -5.1 -7.2% 74.4 72.1 66.9 （ - 7.5 ） （ - 10.1% ） Improvement in operating expense ratio through and general expenses restructuring, offsetting fall in income -3.5 -9.3% Personnel 40.4 38.7 35.1 （ - 5.3 ） （ - 13.1% ） ● Personnel: review of pay structure, staff cuts, return of pension -1.5 -4.7% Non-personnel 34.0 33.3 31.8 （ - 2.2 ） （ - 6.5% ） assets ( daiko henjo ) etc. Net Operating Expenses 145.8 147.1 137.8 -9.2 -6.3% ● Non-Personnel: reduction in printing/communications costs, Net Operating Ratio 36.9% 37.6% 36.0% - 1.6P systems costs through efficiencies, offsetting new IT investment Note: Non-personnel expenses include donations/burden charges/taxes. ● Recruitment Costs: review of agency fee structure 4
I. FY2003 Interim Earnings Summary 5. Asset Management ■ Asset Management Profit/Loss Unit: Yen bn P/L on Asset Management: improvement 30/9/2002 30/9/2003 Change to + ¥4.2bn Profit/loss on assets managed 9.8 14.0 +4.2 Interest & dividend income 20.7 19.1 -1.6 Profit/loss on sale of securities 11.5 3.5 -8 ● Interest income down ¥1.6bn due to low rates Loss on revaluation of securities 5.4 1.1 -4.2 Other profit/loss -5.4 3.1 +8.5 ● Revaluation loss down due to market rally Transfer to investment profit, -11.6 -10.6 +1.0 ● Significant improvement in Other profit/loss, due to incl. reserve premiums enhanced profits from money trusts etc. ■ Loss on Revaluation of Securities Unit: Yen bn 30/9/2002 30/9/2003 Change Impairment value down due to market rally: － Government bonds 0 0 ¥3.0bn reduction Shares 4.1 1.1 - 3.0 － Overseas securities 0.7 -0.7 － Other 0.4 - 0.4 Note: all issues with price falls over 50% affected. TOTAL 5.4 1.1 - 4.2 Recovery judged to be possible for 30-50%. 5
Recommend
More recommend
