For the attention of our Investors / Analysts Company Presentation (including FY2004 Interim Earnings) 6 December 2004
CONTENTS I. FY2004 Interim Earnings Summary 1. Key Points P1 2. Premium Income P2 3. Claims P3 4. Catastrophe Reserves P5 5. Operating Expenses P6 6. Asset Management P7 7. Capital P8 Ref: Fortress Re aviation reinsurance data P9 8. Aioi Life - Key Points of Interim Performance P10 II. FY2004 Earnings Forecast P11 1. Key Points III. 2H Initiatives in Key Areas 1. Securing growth P12 2. Enhancing productivity/efficiency P17 3. Expanding group income P18 FY2004 Interim Earnings Data Data (Attachment)
I. FY2004 Interim Earnings Summary I. FY2004 Interim Earnings Summary
I. FY2004 Interim Earnings Summary 1. Key Points 1. Key Points [Lower line excludes special factors] ◆ Net profit posted in first half, offsetting the impact of major natural disasters and the early adoption of fixed asset impairment accounting NB: Excl. special factors = excl. the impact of abolition of the state CALI reinsurance scheme and Fortress Re issue (Billion yen, %) 30 Sep 30 Sep 2003 2004 Change +/- % 419.2 416.3 -2.8 -0.7 Net Premiums 382.5 380.7 -1.8 -0.5 222.3 230.4 8.0 3.6 Net Claims 197.6 -2.6 -1.3 200.3 138.0 134.2 -3.8 -2.8 Net Operating Expenses 137.8 134.2 -3.6 -2.6 Underwriting Profit 13.2 -9.2 -22.5 -170.1 Asset Management Profit/Loss 14.0 19.2 5.1 36.6 Ordinary Profit 23.0 7.2 -15.8 -68.7 Extraordinary Profit/Loss -1.6 1.5 - Extraordinary Profit 0.7 9.4 8.7 - Extraordinary Loss 2.3 9.5 7.1 298.2 Interim Net Profit 9.0 5.1 -3.9 -43.4 57.5 59.6 2.1P Net loss ratio NB: The net loss ratio 57.3 56.6 -0.7P includes loss adjusting 32.9 32.2 -0.7P Net expense ratio expenses 36.0 35.3 -0.7P 90.4 91.9 1.5P Combined ratio 93.3 91.8 -1.5P 1
I. FY2004 Interim Earnings Summary 2. Premium Income (1) Premiums by Class 2. Premium Income (1) Premiums by Class ■ Net Premiums by Class [Excl. special factors] (Billion yen, %) 30-Sep-03 30-Sep-04 Long-term fire +¥900MN Class Reduction in outward Fire Amount +/- % Amount Change +/- % R/I premiums +¥1.7BN Fire 39.4 0.8 41.7 2.3 6.0 Marine 2.5 0.8 2.5 0.0 2.8 3rd Sector +¥900MN P.A. Savings-type P.A. -¥500MN P.A. 24.9 -5.3 25.2 0.2 1.1 Motor 238.7 -2.6 231.4 -7.2 -3.0 Downturn in unit prices -¥5.8BN* CALI 44.0 4.0 44.4 0.4 1.0 Motor Reduction in overseas inward R/I premiums -¥2.4BN Other 32.8 -7.5 35.1 2.3 7.0 +¥1.6BN TOTAL 382.5 -2.1 380.7 -1.8 -0.5 Liability Other (* operating result basis) 2
I. FY2004 Interim Earnings Summary 2. Premium Income (2) Premium Result 2. Premium Income (2) Premium Result ■ Operating Result by Class ■ Operating Result by Channel (Billion yen, %) (Billion yen, %) 30-Sep-03 30-Sep-04 30-Sep-03 30-Sep-04 Channel Class Amount +/- % Amount Change +/- % Amount +/- % Amount Change +/- % Pro 147.3 -2.1 145.1 -2.1 -1.4 Fire 42.2 4.2 43.6 1.4 3.5 Motor 81.6 0.6 82.2 0.7 0.8 Toyota Group 84.2 5.5 86.7 2.5 2.9 Marine 4.3 0.8 4.4 0.1 0.2 Toyota Gp outlets 74.0 3.9 74.6 0.6 0.8 P.A. 20.7 1.5 22.3 1.6 5.4 o/w Toyota Gp cos 10.1 17.8 12.1 2.0 19.9 Other dealers 15.0 -11.2 13.7 -1.2 -8.2 Motor 237.9 -1.9 233.3 -4.6 -1.9 Corporates 42.6 0.7 42.6 0.0 0.1 CALI 70.2 1.4 70.6 0.4 0.6 Financial 14.8 -7.0 14.9 0.1 0.5 o/w bancassurance 2.4 34.8 2.1 -0.3 -11.7 Other 35.3 -5.0 36.9 1.6 4.3 Other 25.5 -8.9 26.0 0.5 1.8 TOTAL 410.8 -0.8 411.2 0.4 0.0 TOTAL 410.8 -0.8 411.2 0.4 0.0 ◆ Last year’s domestic operating result maintained ◆ Solid increase in Toyota Group and Motor ◆ Higher income in all classes, except motor income ◆ Increase in number of cars insured, but ◆ Smaller reduction in income in the pro channel significant impact from fall in unit prices 3
I. FY2004 Interim Earnings Summary 3. Claims 3. Claims ■ Net Claims / Loss Ratio Trend ■ Natural Disasters (Billion yen) [Excl. special factors] 30-Sep-04 (Billion yen, %) Direct Net 30-Sep-03 30-Sep-04 Incurred Loss 30.7 21.1 Claims paid 6.5 6.3 Claims Paid Loss ratio Claims paid Loss ratio +/- % Outstanding loss reserve 24.1 14.7 ■ Motor E/I Loss Ratio Fire 16.8 44.7 16.8 42.4 - 2.3P (Japan; excl. loss adjusting costs) （ % ） Marine 2.1 90.1 1.2 50.9 -39.2P 60.0 57.6 P.A. 8.5 39.2 8.0 35.5 - 3.7P 58.0 55.8 Motor 125.5 57.2 126.2 59.2 2.0P 56.0 54.8 54.6 54.4 CALI 25.1 65.8 23.6 61.8 - 4.0P 54.8 54.0 Excl. major Other 22.0 73.0 21.5 65.3 -7.7P 52.0 natural disasters TOTAL 200.3 57.3 197.6 56.6 - 0.7P 50.0 30/9/2002 30/9/2003 30/9/2004 FY2002 FY2003 ◆ 1.4-point deterioration due to the impact ◆ 0.7-point improvement in overall loss of major natural disasters, but only a 0.4- ratio due to reduction in overseas point rise excluding this impact, i.e. the inward reinsurance contracts etc. ratio remains stable 4
I. FY2004 Interim Earnings Summary 4. Catastrophe Reserves 4. Catastrophe Reserves ■ Reserves by Class (Billion yen, %) ◆ Rise in reserve ratio across all classes, 31-Mar-04 30-Sep-04 Amount Ratio Amount Ratio +/- % excl. P.A. Fire 65.5 79.7 67.8 82.6 2.9P ◆ Reserve transfer rate for fire amended Marine 3.3 64.2 3.4 66.5 2.3P to 5.8% (raised from 3.8% last FY) P.A. 26.9 54.9 27.7 54.8 -0.1P Motor 84.2 17.9 93.3 20.2 2.3P Other 14.0 19.2 15.4 21.0 1.8P ■ Reserve Ratio by Class: Comparison with Competitors (30/9/2004) 138.6% Fire Motor P.A. 140.0% 140.0% 140.0% 120.0% 120.0% 120.0% 90.7% 88.9% 96.6%100.9% 100.0% 100.0% 100.0% 82.6% 80.0% 80.0% 80.0% 64.2% 59.1% 55.4% 54.8% 60.0% 60.0% 60.0% 43.4% 48.5% 40.0% 40.0% 40.0% 20.2% 24.1% 22.6% 15.4% 21.7% 17.6% 20.0% 20.0% 20.0% 0.0% 0.0% 0.0% IOI Co. A Co. B Co. C Co. D Co. E IOI Co. A Co. B Co. C Co. D Co. E IOI Co. A Co. B Co. C Co. D Co. E ◆ The reserve ratios for fire, motor and P.A. – weighted highly within premium income – stand comparison with the other classes ◆ The outwardly low overall reserve ratio is due to the high weighting of motor 5
I. FY2004 Interim Earnings Summary 5. Operating Expenses 5. Operating Expenses ■ Operating Expense Reduction Steady fall in expense [Excl. special factors] (Billion yen, %) （ % ） ratio (Billion yen) 30 Sep 30 Sep Non-personnel 80 37.6 38.0 Personnel Change +/- % 2003 2004 Net expense ratio 70 37.5 60 37.0 Personnel 35.1 34.8 -0.2 -0.8 33.3 31.8 30.2 50 36.5 36.0 40 36.0 Non-Personnel 31.8 30.2 -1.5 -4.9 30 35.5 35.3 20 35.0 SG&A expenses relating 38.7 35.1 34.8 66.9 65.1 -1.8 -2.8 10 34.5 to underwriting 0 34.0 Commissions and 30/9/2002 30/9/2003 30/9/2004 70.9 69.1 -1.7 -2.5 collection costs ◆ ¥3.6BN YoY reduction in net operating Net operating costs 137.8 134.2 -3.6 -2.6 expenses thanks to ongoing efforts to achieve efficiencies ◆ Net expense ratio has also steadily fallen Net expense ratio 36.0% 35.3% -0.7P YoY, offsetting the impact of lower premiums NB: Non-personnel expenses include donations/burden charges/taxes 6
I. FY2004 Interim Earnings Summary 6. Asset Management 6. Asset Management ■ Asset Management Profit/Loss (Billion yen) ◆ ¥5.1BN YoY improvement in 30 Sep 30 Sep Change profit on assets managed 2003 2004 ◆ ¥2.4BN improvement in interest/ Asset management profit/loss 14.0 19.2 5.1 dividend income, in spite of Interest and dividend income 19.1 21.5 2.4 continued low-interest environment Gain on sale of marketable securities 3.5 9.9 6.4 ◆ ¥6.4BN increase in realized gains Valuation gain on marketable securities 1.1 1.3 0.2 on marketable securities due to the Other profit/loss on assets managed 3.1 -0.5 -3.7 sale of strategic holdings etc. Transfer to profit, incl. reserve premiums -10.6 -10.3 0.2 ■ Early Adoption of Fixed Asset Impairment Accounting < Impairment losses by asset group > (Billion yen) ◆ Early adoption from this term with Land Buildings Rental assets 4.7 3.2 a view to ensuring asset soundness Idle and other assets 0.2 0.1 ◆ ¥8.4BN in impairment losses posted TOTAL 5.0 3.4 as extraordinary loss 7
I. FY2004 Interim Earnings Summary 7. Capital 7. Capital ■ Solvency Margin (Billion yen) ◆ Solvency margin fell by only 30 Sep 30 Sep FY2003 2003 2004 Change 17.8 points, in spite of lower Total assets 2,569.9 2,597.8 2,564.4 -33.4 Equity capital 375.4 446.8 414.1 -32.6 unrealised stock profits, and Catastrophe reserves 198.0 194.2 207.6 13.4 Solvency margin 798.8% 910.1% 892.3% -17.8P remains at an adequate level ■ Unrealised Gains/Losses on Securities (Billion yen) 30 Sep 30 Sep FY2003 Change 2003 2004 ◆ Lower unrealised profits on Gvt & Corp Bonds 2.4 3.6 2.2 -1.3 strategic shareholdings Shares 139.7 223.8 172.3 -51.5 Overseas securities -16.3 -14.9 -7.4 7.5 Other 0.1 5.7 1.3 -4.3 TOTAL 126.0 218.3 168.5 -49.8 ■ Reduction of Strategic Shareholdings (Book value basis) ◆ Sale of strategic share- (Billion 30 Sep 30 Sep FY2003 yen) 2003 2004 holdings promoted in 2H with Reduction 29.5 96.8 3.7 a view to achieving the target Balance 435.3 368.9 365.2 of ¥40BN in sale value NB: Reduction and Balance figures are after adjustment for impairment 8
Recommend
More recommend
