Outline of the interim settlement and result forecast for FY2005 - PowerPoint PPT Presentation

Outline of the interim settlement and result forecast for FY2005 December 2, 2005 ・ Amounts shown herein are basically rounded off. ・ Amounts are shown after excluding refundable premium of our original automobile insurance “Modo-rich.” 1 1 1 1

Net premiums written Net premiums written Increased by 2.5 ％ ％ ％ ％ from previous year. All lines except CALI secured premium increase. *CALI = Compulsory Automobile Liability Insurance (bil yen) (%) 6.6 6.6 6.6 6.6 680 680 680 680 7.0 7.0 7.0 7.0 674 674 674 674 6.0 6.0 6.0 6.0 658 658 658 658 660 660 660 660 5.0 5.0 5.0 5.0 651 651 651 651 4.0 4.0 4.0 4.0 640 640 640 640 2.5 2.5 2.5 2.5 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 1.0 1.0 620 620 620 620 1.0 1.0 1.0 1.0 1.0 1.0 600 600 0.0 0.0 600 600 0.0 0.0 (FY)03interim 04interim 05interim Net Premiums Written Increase Rate 2 2 2 2

* Net loss ratio * Net loss ratio Rose by 2.8pt. to 57.6% due to increased payment for CALI and Auto. *Net loss ratio=(Net claims paid+Loss adjustment expenses)/Net pr * Net loss ratio=(Net claims paid+Loss adjustment expenses)/Net premiums written emiums written 59 59 59 59 (%) 57.6 57.6 57.6 57.6 56 56 56 56 55.2 55.2 55.2 55.2 56.4 56.4 56.4 56.4 55.0 55.0 55.0 55.0 54.7 54.7 54.7 54.7 54.8 54.8 54.8 54.8 53 53 53 53 53.1 53.1 53.1 53.1 51.8 51.8 51.8 51.8 50 50 50 50 02interim 03interim 04interim 05interim including the effect of abolition of reinsurance to government related to CALI including the effect of abolition of reinsurance to government r elated to CALI 3 3 3 3 excluding the effect of abolition of reinsurance to government related to CALI excluding the effect of abolition of reinsurance to government r elated to CALI

Net operating expense ratio* Net operating expense ratio* Improved by 0.6pt. due to increase on premiums and reduced in personnel expenses. *Net operating expense ratio = Underwriting expenses/Net premiums written 36 36 36 36 (%) 35.3 35.3 35.3 35.3 34.5 34.5 34.5 34.5 34 34 34 34 33.5 33.5 33.5 33.5 34.1 34.1 34.1 34.1 32.7 32.7 32.7 32.7 32 32 32 32 32.0 32.0 32.0 32.0 31.1 31.1 31.1 31.1 30.5 30.5 30.5 30.5 30 30 30 30 02interim 03interim 04interim 05interim including the effect of abolition of reinsurance to government related to CALI including the effect of abolition of reinsurance to government r elated to CALI 4 4 4 4 excluding the effect of abolition of reinsurance to government related to CALI excluding the effect of abolition of reinsurance to government r elated to CALI

Combined ratio* Combined ratio* Rose by 2.2pt. from the previous year due to an increase in net loss ratio. *Combined ratio = Net loss ratio + Net operating expense ratio 93 93 93 93 (%) 90.3 90.3 90.3 90.3 90 90 90 90 89.2 89.2 89.2 89.2 89.1 89.1 89.1 89.1 88.7 88.7 88.7 88.7 88.1 88.1 88.1 88.1 87 87 87 87 87.2 87.2 87.2 87.2 85.9 85.9 85.9 85.9 84 84 84 84 83.8 83.8 83.8 83.8 81 81 81 81 02interim 03interim 04interim 05interim including the effect of abolition of reinsurance to government related to CALI including the effect of abolition of reinsurance to government r elated to CALI 5 5 5 5 excluding the effect of abolition of reinsurance to government related to CALI excluding the effect of abolition of reinsurance to government r elated to CALI

Introduction of New Rule of Underwriting Introduction of New Rule of Underwriting Reserves related to natural disaster Reserves related to natural disaster 1. Unearned Premiums Tested adequacy of Unearned Premiums for Fire based on new rule. The amount of Unearned Premiums is sufficient for the level of expected now. 2. Catastrophic Loss Reserve Plan to improve the amount of Catastrophic Loss Reserve for Fire from Yen 113.7 billion, current level, up to Yen 300 billion, sufficient level for the provision against the estimated losses by the natural disaster which incurs once in 70 years. To realize the above for 10 years, we implement following two measures. - Reserve 9% of net premiums for Fire yearly. ( 6.8% in FY2004) - Reserve additional Yen 23.4 bil. this FY recognized as extraordinary losses. 6 6 6 6

Underwriting profit Underwriting profit Increased Yen 44.2 bil. from the previous year due to the decrease of damage caused by natural disasters. (bil yen) 35.9 35.9 35.9 35.9 40 40 40 40 20.4 20.4 20.4 20.4 20 20 20 20 0 0 0 0 ▲ 20 ▲ 20 ▲ 20 ▲ 20 ▲ 23.7 ▲ 23.7 ▲ 23.7 ▲ 23.7 ▲ 40 ▲ 40 ▲ 40 ▲ 40 03interim 04interim 05interim 7 7 7 7

Interest and dividend income Interest and dividend income Gross interest and dividend income raised by 2.6 bil yen. Net interest and dividend income also raised by 2.8 bil yen. (bil yen) 80 5 5 5 5 4 4 4 4 . . . . 9 9 9 9 5 5 5 5 5 5 5 5 . . . . 3 3 3 3 5 5 5 5 2 2 2 2 . . . . 7 7 7 7 60 28.7 28.7 28.7 28.7 30.5 30.5 30.5 30.5 40 28.9 28.9 28.9 28.9 20 26.6 26.6 26.6 26.6 24.4 24.4 24.4 24.4 23.8 23.8 23.8 23.8 0 03interim 04interim 05interim Investment Income Credited to Investment Deposits by Policyholders Net Interest and Dividend Income Gross interest and dividend income 8 8 8 8

Net realized gain and devaluation loss of securities Net realized gain and devaluation loss of securities Net realized gain raised by 14.4 bil. yen from the previous year. Devaluation loss increased by 1.6 bil. Yen. (bil yen) 77.3 77.3 77.3 77.3 Net Realized Gain Net Realized Gain Net Realized Gain Net Realized Gain 80 Devaluation Loss Devaluation Loss Devaluation Loss Devaluation Loss 60 31.1 31.1 31.1 31.1 40 16.7 16.7 16.7 16.7 20 0 ▲ 5 ▲ 5 ▲ 5 ▲ 5 ▲ 6 ▲ 6 ▲ 6 ▲ 6 ▲ 8 ▲ 8 ▲ 8 ▲ 8 ▲ 20 03interim 03interim 03interim 03interim 04interim 04interim 04interim 04interim 05interim 05interim 05interim 05interim 9 9 9 9

Extraordinary Income/Losses Extraordinary Income/Losses Recognized 23.4 bil yen catastrophic loss reserve as an extraordinary loss in accordance with the new rule of Underwriting Reserves related to natural disaster FY 04interim FY 05interim Yen -10.7 bil Yen -0 bil Impairment loss on fixed assets - Yen -23.4 bil Catastrophic loss reserve Shift to the defined contribution - Yen 3.4 bil annuity Gain related to employee Yen 40.5 bil - pension fund liabilities Price fluctuation reserve Yen -3.3 bil Yen -1.4 bil Others Yen 6.4 bil Yen 0.8 bil Extraordinary income / Yen -20.7 bil Yen 32.9 bil losses total 1 1 1 1 0 0 0 0

・ Net Income ・ ・ ・ Ordinary profit ・ ・ ・ ・ Net Income Ordinary profit Both ordinary profit and net income raised due to the decrease of damage caused by natural disasters. (bil yen) 160 129.4 120 79.2 71.1 80 34.9 26.9 40 10.5 0 03interim 04interim 05interim Ordinary Profit Net Income 1 1 1 1 1 1 1 1