TFMI — Interim / Quarterly Report 2020

Nov 26, 2020

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Disclaimer

• This presentation is provided by Taiwan Fire & Marine Insurance Co., Ltd. (TFMI). TFMI makes no guarantees or warranties as to the accuracy, completeness or correctness of all the material contained in this presentation. After this presentation is released to the public, TFMI undertakes no obligations to update any relevant data to reflect any changes hereafter.

• This presentation may contain forward-looking statements. Statements that are not historical facts, including statements relating to the implementation of strategic initiatives, future business development and economic performance are forward-looking statements, and are subject to uncertainties, risks, assumptions and other factors that could cause such statements to differ materially from actual future events or results.

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Business Overview

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2020 Operation Result, up to 3rd quarter
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� Net income for Q1–Q3 of 2020 reached 555M, decreased by
4.1% YoY；EPS 1.53；ROA 2.93%；ROE 6.05% .
� Written premiums grew by 5.3% YoY；Retained earned
premiums grew by 4.8% YoY.
� Higher loss of automobile and fire insurance led to higher
combined ratio of 91.6%.
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Net investment profits decreased by 5.5% YoY.
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� Dividend income increased, but equity evaluation
benefits declined.
� The COVID-19 caused rental income to decline. However,
capital gain from real estate made the overall real estate
income has increased.
� Interest income from deposits and bonds were flat; NTD
.
rose strongly and exchange losses increased
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Maintain strong capital structure and credit rating
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The highest equity capital ratio and Risk-Based Capital in

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Balance Sheet

Unit: NT thousand	2020/9/30 %	2019/12/31 %	2019/9/30	%
Cash and Cash Equivalents	2,829,717 14.9%	3,415,293 18.1%	3,284,162	17.7%
Receivables	668,433 3.5%	612,947 3.2%	595,138	3.2%
Investments	12,273,033 64.6%	11,741,232 62.2%	11,669,819	63.1%
Reinsurance Contract Asset	1,995,434 10.5%	1,919,723 10.2%	1,816,573	9.8%
Property and Equipment, Net	354,712 1.9%	360,689 1.9%	367,421	2.0%
Other Assets	808,119 4.3%	769,169 4.1%	699,011	3.8%
Total Assets	19,011,873 100.0%	18,886,915 100.0%	18,503,593	100.0%
Payables	877,922 4.6%	984,681 5.2%	924,809	5.0%
Insurance Liabilities	8,356,645 44.0%	8,253,100 43.7%	8,075,387	43.6%
Deferred Income Tax Liabilities	266,669 1.4%	274,092 1.5%	274,092	1.5%
Other Liabilities	74,233 0.4%	71,432 0.4%	90,489	0.5%
Other Liabilities	9,744,742 51.3%	9,799,041 51.9%	9,558,341	51.7%
Common Stock	3,622,004 19.1%	3,622,004 19.2%	3,622,004	19.6%
Capital Surplus	98,962 0.5%	98,962 0.5%	98,962	0.5%
Retained Earnings	5,617,145 29.5%	5,413,849 28.7%	5,292,470	28.6%
Total Equity	9,267,131 48.7%	9,087,874 48.1%	8,945,252	48.3%
Net worth per share	25.59	25.09	24.70

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Income Statement

Unit: NT thousand	2020/1/1 ~ 2020/9/30	YoY	2019/1/1 ~ 2019/9/30
Direct Insurance Premium Revenues	4,844,289	5.3%	4,599,004
Retained Earned Premium	3,490,853	4.8%	3,332,321
Net Gains on Investments	348,020	(5.5%)	368,146
Profit Before Income Tax	613,500	(10.5%)	685,852
Net Income	555,070	(4.1%)	578,501
Comprehensive Income	(13,612)	(104.9%)	279,728
Basic Earnings Per Share	1.53	(4.4%)	1.60
Net Gains on Investments
Interest Income	90,726	2.1%	88,849
Gain (loss) on FVTPL financial assets	40,484	(28.0%)	56,218
OCI-realized gains or loss on FVTOCI financial assets	141,258	18.1%	119,562
Share of Loss on Associates	9,419	(58.7%)	22,789
Exchange Loss	(23,642)		(395)
Gain on Investment Properties	89,704	9.9%	81,610
Impairment Loss on Investment Assets	71		(487)

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Premium Revenues

	Premium Revenues	Premium Revenues	Premium Revenues	Premium Revenues	Premium Revenues	Premium Revenues	Premium Revenues
	Direct Insurance Premium Revenues 5,322,126 5,563,869 5,894,232 6,003,141 6,226,661 4,844,289 Retained Earned Premium 3,761,526 4,016,403 4,130,752 4,287,054 4,477,228 3,490,853 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2015 2016 2017 2018 2019 20203Q Direct Insurance Premium Revenues Retained Earned Premium
	Direct Insurance Premium Revenues	5,322,126	5,563,869	5,894,232	6,003,141	6,226,661	4,844,289
	Retained Earned Premium	3,761,526	4,016,403	4,130,752	4,287,054	4,477,228	3,490,853

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Business Distribution

2019

2020Q3

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Retained Combined

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TFMI PORTFOLIO

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Special projects and
Real Estate Securitization products,
Investment, 3.72%
Deposit and Short-term 14.74% Deposit and Short-term
Transactions Instruments, Transactions Instruments,
38.82% 37.15%
Foreign
Investment,
6.50%
Fund
Fund
Investment,
Investment,
0.96%
0.64%
Government
Government Stock,20.90% Bonds,3.89%
Financial Bonds, Bonds,3.88% Financial Bonds,
Corporate Bonds,3.95% Corporate Bonds,3.98%
6.53% 8.17%
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Regulatory Capital Ratio

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RBC

1069%

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