Highlights of the financial results for Highlights of the financial - - PowerPoint PPT Presentation

1 1 1 1

Highlights of the financial results for Highlights of the financial results for FY2003 and results forecast for FY2004 FY2003 and results forecast for FY2004

May 31, 2004

・ ・ ・ ・Amounts shown herein are basically rounded off. ・ ・ ・ ・Amounts related to FY2001 are the total of Sumitomo Marine’s 1st half and Mitsui Sumitomo’s full year. ・ ・ ・ ・Amounts related to FY2000 and before are the total of Sumitomo Marine and Mitsui Marine. ・ ・ ・ ・Amounts are shown after excluding refundable premium of our original automobile insurance “ “ “ “Modo-rich.” ” ” ”

2 2 2 2

1,135.7 1,184.5 1202.6 1,161.7 1,175.7

• 1.6

1.5 1.5 1.5 1.5

0.8 2.3 1.2 1,100 1,120 1,140 1,160 1,180 1,200 1,220 1999 2000 2001 2002 2003

• 2.0
• 1.5
• 1.0
• 0.5

0.0 0.5 1.0 1.5 2.0 2.5 Net premiums written Increase rate

Net premiums written Net premiums written

(excluding the effect of abolition of reinsurance to government related to CALI (excluding the effect of abolition of reinsurance to government related to CALI*

*)

)

Increased by 1.5% from previous year. All lines of insurance except automobile secured premium increase.

(bil yen) (%)

* *CALI=Compulsory Automobile Liability Insurance CALI=Compulsory Automobile Liability Insurance

3 3 3 3

Net loss ratio Net loss ratio*

*

(excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI)

57.2 57.2 57.2 57.8 53.4 58.4 58.8 54.8 52 54 56 58 60

1996 1997 1998 1999 2000 2001

(%)

Maintained the same level as of FY2002, owing to the effect of premium increase.

2002

* *Net loss ratio=(Net claims paid+Loss adjustment expenses)/Net premiums written Net loss ratio=(Net claims paid+Loss adjustment expenses)/Net premiums written

2003

4 4 4 4

34.6 35.3 36.4 37.3 39.0 39.1 38.7 39.5 34 35 36 37 38 39 40

(%)

Improved vastly by 0.7pt from FY2002 due to reduction in personnel and non-personnel expenses.

Net operating expense ratio* Net operating expense ratio*

(excluding the effect of abolition of reinsurance to government related to CALI

(excluding the effect of abolition of reinsurance to government related to CALI） ）

* *Net operating expense ratio=Underwriting expenses/Net premiums written Net operating expense ratio=Underwriting expenses/Net premiums written

1996 1997 1998 1999 2000 2001 2002 2003

5 5 5 5

96.3 91.8 95.7 97.8 92.8 93.5 92.5 94.2 90 92 94 96 98 (%)

Improved by 0.7pt from FY2002, due to improvement of net operating expense ratio.

Combined ratio Combined ratio*

*

(excluding the effect of abolition of reinsurance to government related to CALI)

(excluding the effect of abolition of reinsurance to government related to CALI)

* *Combined ratio=Net loss ratio + Net operating expense ratio Combined ratio=Net loss ratio + Net operating expense ratio

1996 1997 1998 1999 2000 2001 2002 2003

6 6 6 6

• 0.3

3.3 10.2 37.0 45.3

• 10

10 20 30 40 50

1999 2000 2001 2002 2003

Underwriting profit Underwriting profit

Increased by Yen 45.3bil due mainly to premium increase and improvement of net operating expense ratio.

(bil yen)

2.33 2.92 2.58 2.54 2.37 50 100 150 200 1999 2000 2001 2002 2003 0.00 0.50 1.00 1.50 2.00 2.50 3.00

Investment income credited to investment deposits by policyholders Net interest and dividend income Yield on investment assets (income yield)

7 7 7 7

154.0 132.7 129.2 116.8

88.4 88.4 78.3 78.3 71.2 71.2 65.4 65.4 51.4 58.0 54.3 65.6 59.8 59.8 54.5

114.3

Interest and dividend income Interest and dividend income

Gross interest and dividend income decreased by Yen 2.5bil. Net interest and dividend income increased by Yen 3.1bil.

(bil yen) (%)

Gross interest and dividend income

• 1.5

74.6 35.1 29.9 32.6

• 50.3
• 14.4
• 27.1

13,000 11,025 7,973 11,715

• 80

80 7,000 14,000 21,000 Net realized gain Devaluation loss Nikkei 225

8 8 8 8

2000 2001 2003 2002

Net realized gain and devaluation loss of securities Net realized gain and devaluation loss of securities

Net realized gain was Yen 74.6 bil including ETF related profit, devaluation loss decreased to Yen 1.5bil.

(bil yen) (yen)

9 9 9 9

FY2002 FY2003

Additional provision for Housing Loan Guarantee Insurance Net gain / loss on sales of real estate Extraordinary income / losses total

Yen -41.1 bil Yen -2.6 bil Yen -57.4 bil

Reversal / Provision for price fluctuation reserves

Yen -6.5 bil － － － － Yen 1.9 bil Yen 6.3 bil Yen 13.9 bil

Expenses for integration

Yen -7.6 bil － － － －

Others

Yen -7.3 bil Yen -5.7 bil

Reversal of other provisions

Yen 3.7 bil Yen 0 bil

Extraordinary income / losses Extraordinary income / losses

Large amounts of extraordinary loss was due to change in calculation method of underwriting reserve related to Housing Loan Guarantee Insurance and provision for price fluctuation reserves.

1 1 1 1

Ordinary profit Ordinary profit ・ ・ ・ ・ ・ ・ ・ ・ Net income Net income

Ordinary profit was Yen 166.6bil, 249.4% growth due to increase of underwriting profit and net realized gain of securities. Net income was Yen 73.0bil reflecting additional provision for Housing Loan Guarantee Insurance. 75.1 22.5 56.4 27.1 62.6 23.6 47.7 32.4 166.6 73.0 60 120 180 1999 2000 2001 2002 2003 Ordinary profit Net income

(bil yen)

1 1 1 1 1 1 1 1

Mitsui Sumitomo Mitsui Sumitomo Kirameki Kirameki Life Insurance Life Insurance

Record-high amount of new business. Amount of in-force business increased in double digit for two consecutive years. Proforma net income increased by Yen 2.1bil to Yen 3.6bil.

Amount of new business

FY2003

Change from the previous year(%)

Yen 1,387.6bil

23.6％ ％ ％ ％

Net income

Yen 0.01bil

Amount of in-force business

Yen 5,779.2bil

14.7％ ％ ％ ％

Proforma net income*

Yen 3.6bil

Previous year result : Yen 1.5bil （The above is total sum of individual insurance and individual annuity）

Premiums income

Yen 164.0bil

8.8％ ％ ％ ％

Previous year result : Yen 0.09bil

＊Hypothetical net income before additional reserve for Net level premium method of valuation provided and extraordinary expense related to software development.

Yen 389.1 bil Yen -3.5 bil Yen 477.5 bil Yen 423.8 bil

1 2 1 2 1 2 1 2

10.2 times of previous year 12.2 times of previous year 10.1 times of previous year Previous year result : Yen -0.9bil

Mitsui Sumitomo Mitsui Sumitomo CitiInsurance CitiInsurance Life Life

Amount in-force surged up to Yen 477.5bil, or 12 times of previous year. Premiums income expanded powerfully to Yen 423.8bil, or 10 times of previous year.

FY2003

Change from the previous year(%)

Amount of new business Net loss Amount of in-force business

（The above is individual annuity）

Premiums income

• Net premiums

written increase amount increase rate

Parent

1,202.6 1,202.6 1,202.6 1,202.6 18.1 18.1 18.1 18.1 1.5 1.5 1.5 1.5

Sub- sidiaries

89.5 89.5 89.5 89.5 20.8 20.8 20.8 20.8 30.3 30.3 30.3 30.3

Group

1,292.1 1,292.1 1,292.1 1,292.1 38.9 38.9 38.9 38.9 3.1 3.1 3.1 3.1

1 3 1 3 1 3 1 3

< <Excl

• Excl. refundable premium of

. refundable premium of “ “Modo-rich Modo-rich” ” and the effect of abolition of reinsurance to and the effect of abolition of reinsurance to government related to CALI> government related to CALI>

< < < < < < < <Excl

• Excl. refundable premium of

. refundable premium of “ “Modo-rich Modo-rich” ”>

> > > > > > >

Net premiums written increase amount increase rate

Group

1,382.5 63.4 4.8

Net premiums written increase amount increase rate

North America

26.4 26.4 26.4 26.4 8.4 8.4 8.4 8.4 46.4 46.4 46.4 46.4

Europe

41.5 41.5 41.5 41.5 11.3 11.3 11.3 11.3 37.3 37.3 37.3 37.3

Asia

11.7 11.7 11.7 11.7 0.7 0.7 0.7 0.7 6.7 6.7 6.7 6.7

South America

4.3 4.3 4.3 4.3

• 1.3
• 1.3
• 1.3
• 1.3
• 23.2
• 23.2
• 23.2
• 23.2

Reinsurance subsidiaries

6.0 6.0 6.0 6.0 2.2 2.2 2.2 2.2 57.2 57.2 57.2 57.2

（ （ （ （bil yen,％） ％） ％） ％）

Consolidated net premiums written Consolidated net premiums written

Increased by 3.1% from previous year. Overseas insurance subsidiaries posted big premium increase (30.3%), mainly in U.S.A. and Europe. In Europe, Lloyd’s direct underwriting business shown strong performance.

*Above amounts include inter-segment transactions （ （ （ （bil yen,％） ％） ％） ％） （ （ （ （bil yen,％） ％） ％） ％）

1 4 1 4 1 4 1 4

Consolidated net income Consolidated net income

Consolidated ordinary profit increased by 253.0% to Yen 174.9bil. Consolidated net income increased by 137.1% to Yen 77.8bil. Group-to-parent ratio improved from 1.01 (FY2002) to 1.07.

(bil yen)

61.3 29.9 19.0 32.8 77.8 174.9 49.6 62.6 1.07 1.01 0.80 1.10 50 100 150 200 2000 2001 2002 2003 0.00 0.20 0.40 0.60 0.80 1.00

Consolidated ordinary profit Consolidated net income Group-to-parent ratio

1 5 1 5 1 5 1 5

Results forecast by the end of FY2004 Results forecast by the end of FY2004 ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Precondition Precondition◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

Exchange rate (Yen／USD）

Yen 105.7 FY2003

Interest rate （10 years JGB）

1.13％ ％ ％ ％

Stock price （Nikkei 225）

Yen 11,715

Exchange rate, Stock price : As at March 31, 2004 and 2005.

Yen 105.0 1.40％ ％ ％ ％ Yen 12,000 FY2004 (est.)

Interest rate : Average during each term. The figure in parenthesis is as of March 31, 2004.

（ （ （ （1.44％） ％） ％） ％）

1 6 1 6 1 6 1 6

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Net Net premiums premiums written written◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

(excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI)

Forecast 0.6% increase, growing for 5 consecutive years.

1,210.0 1,202.6 1,184.5 1,175.7 1.5 0.8 0.6 0.6 0.6 0.6 1.2 1,150 1,160 1,170 1,180 1,190 1,200 1,210 1,220 2001 2002 2003 2004(est.) 0.0 0.5 1.0 1.5 2.0 Net premiums written Increase rate

(bil yen) (%)

1 7 1 7 1 7 1 7

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Net Net loss loss ratio ratio◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

(excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI)

Forecast 1.9pt rise to 59.1%. 0.8pt rise, if excluding natural disasters.

632.8 659.7 619.9 623.2 57.8 59.1 57.2 57.2 600 610 620 630 640 650 660 670 2001 2002 2003 2004(est.) 52 53 54 55 56 57 58 59 60 Net claims paid Net loss ratio

(bil yen) (%)

1 8 1 8 1 8 1 8

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Net Net

• perating expense
• perating expense

ratio ratio◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

(excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI)

Forecast 0.7pt improvement to 33.9%.

266.1 291.8 277.8 271.5 36.4 33.9 35.3 34.6 240 250 260 270 280 290 300 2001 2002 2003 2004(est.) 33.0 34.0 35.0 36.0 37.0

Operating, general and administrative expenses and loss adjustment expenses Net operating expense ratio

(bil yen) (%)

1 9 1 9 1 9 1 9

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Combined Combined ratio ratio◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

(excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI)

Forecast 1.2pt up due to rise of net loss ratio.

68.2 84.3 89.5 98.4 94.2 93.0 92.5 91.8 60 70 80 90 100 110 2001 2002 2003 2004(est.) 91.0 92.0 93.0 94.0 95.0 Underwriting balance Combined ratio

(bil yen) (%)

10.2 37.0 45.3 37.0

0.0 10.0 20.0 30.0 40.0 50.0 2001 2002 2003 2004(est.)

Forecast Yen 37.0bil.

2 2 2 2

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Underwriting profit Underwriting profit◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

(bil yen)

2 1 2 1 2 1 2 1

58.0 71.2 51.4 65.4 54.5 59.8 46.0 57.6 20 40 60 80 100 120 140

2001 2002 2003 2004(est.)

Investment income credited to investment deposits by policyholders Net interest and dividend income

129.2 116.8

Gross interest and dividend income

114.3

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Interest Interest and dividend and dividend income income◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

Forecast Yen 10.7bil decrease of gross interest and dividend income due to lowered interest rate,etc. Forecast Yen 8.5bil decrease of net interest and dividend income.

(bil yen)

103.6

2 2 2 2 2 2 2 2

Forecast Yen 15.9bil realized gain (net), Yen 2.0bil of devaluation loss.

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Realized Realized gain (net) gain (net)・ ・ ・ ・ ・ ・ ・ ・Devaluation loss of Devaluation loss of securities securities◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

35.1 74.6 15.9 29.9

• 27.1
• 50.3
• 1.5
• 2.0
• 80
• 60
• 40
• 20

20 40 60 80 100 Realized gain (net) Devaluation loss

2001 2002 2004 (est.)

(bil yen)

2003

2 3 2 3 2 3 2 3

Forecast Yen 83.0bil of ordinary profit, Yen 63.0bil of net income.

62.6 23.6 47.7 32.4 166.6 73.0 83.0 63.0

50 100 150 200

2001 2002 2003 2004(est.) Ordinary profit Net income

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Ordinary Ordinary profit profit・ ・ ・ ・ ・ ・ ・ ・Net income Net income◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

(bil yen)

2 4 2 4 2 4 2 4

Results forecast by the end of FY2004 Results forecast by the end of FY2004

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆Consolidated results forecast Consolidated results forecast◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

Forecast Yen 68.0bil of consolidated net income, 1.08 times of group-to-parent ratio.

62.6 97.0 19.0 32.8 77.8 68.0 174.9 49.6 1.08 1.07 1.01 0.80 50 100 150 200 2001 2002 2003 2004(est.) 0.00 0.20 0.40 0.60 0.80 1.00 1.20

Consolidated ordinary profit Consolidated net income Group-to parent ratio

(bil yen)

【 【 【 【Cautionary Statement】 】 】 】 Any statements about Mitsui Sumitomo Insurance Co., Ltd.’s future plans, strategies, and performance contained in this material that are not historical facts are meant as, or should be considered as, forward- looking statements. These forward-looking statements are based on the Company’s assumptions and

• pinions in the light of the information currently available to it. The Company wishes to caution readers

that a number of uncertain factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to, (1) general economic conditions in the Company’s markets, (2) competitive conditions in the insurance business, (3) fluctuations

• f foreign exchange rates, and (4) government regulations, including changes in the tax rates.