central reinsurance corporation · percentage 21.92% 0.01% 59.98% 16.07% 2.02% 100% year 2016...

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Your reliable partner

Central Re

CENTRAL REINSURANCE

CORPORATION

July 10, 2017

中央再保險公司 Central Re 2

Disclaimer This document is provided by Central Reinsurance Corp. (the "Company"). Except for the

numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountant or independent expert. The Company makes no express or implied representations or warranties as to the fairness, accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. The Company, its affiliates and their representatives do not accept any responsibility or liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any loss or damages arising from the use of this document or the information contained herein or anything related to this document.

This document may contain forward-looking statements, including but not limited to all statements that address activities, events or developments that the Company expects or anticipates to take place in the future based on the projections of the Company toward the future, and various factors and uncertainness beyond the Company's control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer.

This document may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose.

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Outline

Introduction

Performance Overview

Future Prospect


Introduction

Historical Review

Basic Information

Business Overview

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Historical Review

Time Company History

October 31, 1968 Central Re was established by the Ministry of Finance (MOF).

July , 2000 Central Re became publicly listed company.

July , 2002 Central Re completed its privatization process. Meanwhile, Evergreen Group is Central Re’s largest shareholder.

January 1, 2016 Central Re was approved to set up Offshore Insurance Unit (OIU) in September 2015 and started doing business on January 1, 2016.

中央再保險公司 Central Re

Paid up Capital：TWD 5.62 Billion

No. of Employee：129

Address：12F, 53, Sec. 2, Nanjing East Rd., Taipei, Taiwan

Credit Ratings：

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Basic Information

Rating Agency Rating Outlook A.M. Best A Stable

S&P A Stable Taiwan Ratings twAA+ Stable

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Shareholders’ Structure

Market Share

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Basic Information

As of April 2, 2017

Structure Government Agencies

Financial Institutions

Other Juridical Person

Domestic Natural Persons

Foreign Institutions &

Natural Persons

Total

Percentage 21.92% 0.01% 59.98% 16.07% 2.02% 100%

Year 2016 P&C Insurance Life Insurance

Gross Prem. Written in Taiwan 1,459.6 31,333.6

Ceded Premium 466.1 187.2

Retro Share (%) 31.9 0.6

Central Re’s Premium 87.5 38.8

Market Share in Taiwan 18.8 20.8

Unit：TWD 100M；%


Scope：Domestic and International P&C and Life Reinsurance.

Line of Business：

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Business Overview

P&C

Fire, Residential earthquake, Marine Hull, Marine Cargo, Aviation, Fishing Vessel, Automobile, Compulsory Automobile Liability, Engineering and Casualty Insurance

Life Life, PA and Health Insurance

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Business Overview

Domestic P&C 62% Domestic Life

28%

International P&C 9%

Internation Life 1%

, 1.32 B

, 0.09 B

8.75 B

2016 Premium Income

Domestic VS. International

3.88 B

Unit: TWD


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Business Overview

26%

17%

16%

12%

10%

7%

5% 5%

2% Auto.

CompulsoryAutomobile LiabilityLife

Fire

Casualty

Health

Marine Related

PA

Engineering

2016 Premium

Income By Line of Business

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Outline

Introduction


Future Prospect


Performance Overview Unit：TWD 100M

* Underwriting profit excludes Compulsory Automobile Liability Insurance (CALI) and Operating Expense.

8.7

7.7 7.7

4.6 4.2

1.7

9.6 9.1

10.6

0

2

4

6

8

10

12

2014 2015 2016

Net Income Investment Income Underwriting Profit*

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13

Gross Premium Written

0

50

100

150

200

2012 2013 2014 2015 2016

Domestic International

156 163 142

140 144

Unit：TWD 100M


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Capital Structure

* Equalization Reserve excludes CALI.

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016

Capital Surplus, Retained Earnings & Other Equity Interest Equalization Reserve* Paid-up Capital

118.1 122.3 121.2 122.7

107.7

Unit：TWD 100M

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Total Assets

321

329

340

333 336

300

310

320

330

340

350

2012 2013 2014 2015 2016

Unit：TWD 100M


Asset Allocation

2016/12/31

Cash & Cash Equivalents

Equity & Fund

Fixed Income

159 45 91

Fixed Income 30.8%

Cash & Cash Equivalents 53.9%

Equity & Fund 15.3% Unit：TWD 100M

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2012 2013 2014 2015 2016

Combined Ratio* (%)

97.5 92.9 93.6 91.9 90.1

ROA (%) 2.16 2.25 2.60 2.28 2.29

ROE (%) 8.98 8.60 9.42 8.14 8.13

Net Profit Margin (%)

4.73 4.76 5.35 5.44 5.70

EPS (TWD) 1.21 1.30 1.55 1.36 1.36

17 * Combined Ratio excludes CALI and Operating Expense.

Profitability Analysis


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Dividend Policy

Year 2013 2014 2015 2016 2017

Cash Dividends

0.5 1.2 1.2 0.7 0.5

Stock Dividends

0.2 0 0 0 0

Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 20% of the remaining amount shall be set aside as legal reserve. Afterwards, the Company shall recognize or reverse special reserve in accordance with regulations, and accumulated unappropriated earnings of the prior period. Appropriation of the remainder shall be proposed by the Board of Directors and resolved by the stockholders.

The Company’s dividends are distributed in the form of cash dividends and stock dividends in a coordinated way, among which, the cash dividends shall account for at least 50% of the total dividends distributed.

Past 5 years：

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Outline

Introduction

Future Prospect



Sole domestic commercial reinsurer in Taiwan’s reinsurance market

Stable and positive underwriting results

Strong risk-adjusted capitalization

A.M. Best

Strong market position

Diversified premium streams from P/C and life reinsurance businesses

Very strong capital and earnings

Diversified and prudent investment portfolio

Adequate enterprise risk management with strong risk controls

Strong liquidity profile

S&P

Future Prospect

Competitive

Advantage

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Implement good corporate governance

Enhance compliance

Devote to talent development

Strengthen risk Management

Fulfill corporate social responsibilities

Future Prospect

Business Strategies


Future Prospect Domestic Business

Focus on better customer service

Actively participate in new business development

International business

Keep prudent underwriting strategy(Focus on bottom line more than top line)

Increase direct business and Fac. business

Investment Business Control portfolio risk to enhance assets quality and investment efficiency

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Q＆A

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