TFMI — Interim / Quarterly Report 2021

Jul 29, 2021

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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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TFMI 1H 2021 Operating Result
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 After recognizing selling cost, claim, and reserves related to Communicable
Disease Compensation Insurance; TFMI reported operating loss of NT$265 million
for 1H2021; EPS -0.73; ROA -1.16%; and ROE -2.83%.
 Premium written reached NT$5.3 billion, increased by 58.1% YoY; net premium
written reached NT$3.29 billion, increased by 43% YoY.
 Put CD compensation Insurance aside, profit before tax is NT$462million,
compared to 1H2020, NT$376 million, increase by 22.8% YoY. Underwriting profit
increased as well, as both the net loss paid and expense ratio have reduced.
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Net investment profits in 1H2021 Increased by 8.3% YoY
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 Stock market rised, equity evaluation benefits increased obviously.
 Interest rates kept low, interest income from deposits and bonds droped.
 The COVID-19 caused rental income to decline.
 NTD rosed but exchange losses decreased.
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Maintain strong capital structure and great solvency
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The highest equity capital ratio in the industry.3

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Balance Sheet

Unit: NT thousand	2021/6/30 %	2020/12/31 %	2020/6/30 %	2020/6/30 %
Cash and Cash Equivalents	4,966,463 21.6%	3,684,530 18.8%	3,908,704 20.0%
Receivables	2,119,617 9.2%	665,460 3.4%	728,244 3.7%
Investments	12,363,446 53.9%	12,096,213 61.8%	11,583,308 59.3%
Reinsurance Contract Asset	2,085,385 9.1%	1,919,371 9.8%	2,116,946 10.8%
Property and Equipment, Net	460,619 2.0%	356,406 1.8%	353,752 1.8%
Other Assets	764,014 3.3%	766,248 3.9%	755,654 3.9%
Total Assets	22,943,584 100.0%	19,580,636 100.0%	19,526,199 100.0%
Payables	1,701,186 7.4%	994,378 5.1%	1,347,196 6.9%
Insurance Liabilities	10,554,459 46.0%	8,468,433 43.2%	8,546,047 43.8%
Deferred Income Tax Liabilities	264,150 1.2%	266,669 1.4%	268,604 1.4%
Other Liabilities	919,975 4.0%	77,924 0.4%	82,141 0.4%
Other Liabilities	13,585,577 59.2%	10,000,103 51.1%	10,455,861 53.5%
Common Stock	3,622,004 15.8%	3,622,004 18.5%	3,622,004 18.5%
Capital Surplus	98,962 0.4%	98,962 0.5%	98,962 0.5%
Retained Earnings	5,171,168 22.5%	5,750,823 29.4%	5,389,545 27.6%
Other equity	465,874 2.0%	108,744 0.6%	(40,173) (0.2%)
Total Equity	9,358,007 40.8%	9,580,533 48.9%	9,070,338	46.5%
Net worth per share	25.84	26.45	25.04

Note：2021 Q2 Financial Report (Unaudited)

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Income Statement

Unit: NT thousand	2021/01/01 ~ 2021/06/30	YoY	2020/01/01 ~ 2020/06/30
Direct Insurance Premium Revenues	5,299,568	58.1%	3,352,291
Retained Earned Premium	3,291,309	43.0%	2,301,066
Net Gains on Investments	182,043	8.3%	168,128
Retained claims	1,558,097	36.6%	1,140,785
Commission expenses	873,301	107.0%	421,855
Movement of insurance liability	777,008	2288.1%	32,537
Operating Expenses	745,348	20.5%	618,760
Current net income	(359,322)		376,434
Net Income	(264,983)		331,673
Basic Earnings Per Share	(0.73)		0.92
Comprehensive Income	440,877	3293.5%	12,992
Net Gains on Investments
Interest Income	53,686	(12.6%)	61,422
Gain (loss) on FVTPL financial assets	55,250	92.1%	28,768
OCI-realized gains or loss on FVTOCI financial assets	11,114	(50.8%)	22,582
Share of Loss on Associates	35,879	746.2%	4,240
Exchange Loss	(14,417)		(15,919)
Gain on Investment Properties	40,406	(39.6%)	66,952
Impairment Loss on Investment Assets	125	50.6%	83

Note：2021 Q2 Financial Report (Unaudited)

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Premium Revenues

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簽單保費收入 自留滿期保費收入
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2016 2017 2018 2019 2020 2021Q2
Direct Insurance Premium Revenues 5,563,869 5,894,232 6,003,141 6,226,661 6,512,206 5,299,568
Retained Earned Premium 4,016,403 4,130,752 4,287,054 4,477,228 4,697,513 3,291,309
Note：2021 Q2 Financial Report (Unaudited)
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Business Distribution

2020年

2021 Q2

Personal Accident Marine Insurance & & Health Insurance Aviation Insurance 6.6% 2.2% Liability Insurance Automobile 11.6% Insurance 54.5% Fire Insurance 25.1%

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Liability
Insurance
43.2%
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Marine Insurance & Personal Accident Aviation Insurance & Health Insurance 1.3% 4.0% Automobile Insurance 35.4% Fire Insurance 16.1%

Note：2021 Q2 Financial Report (Unaudited)

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Retained Combined

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Note：2021 Q2 Financial Report (Unaudited)

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ASSET ALLOCATION

2020/12/31

2021/06/30

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Special projects and
Real Estate Securitization products,
Deposit and Short-term
Investment, 3.64%
Transactions
14.26%
Instruments,
Foreign 39.01%
Investment,
6.54%
Fund
Investment,
0.95%
Stock,21.32%
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Special projects and Real Estate Securitization products, Investment, 3.82% Deposit and Short-term 14.08% Transactions Instruments, Foreign 40.98% Investment, 5.91% Fund Investment, 1.69%

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Stock,20.54%
Government
Corporate Bonds,3.80% Financial Bonds, Bonds,3.77%
6.70%
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Government
Corporate Bonds,3.40% Financial Bonds, Bonds,3.32%
6.27%
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Regulatory Capital Ratio

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60%
48.91%
50% 48.12%
46.83% 46.65% 46.45%
45.33%
40%
30%
20%
10%
0%
2018/06 2018/12 2019/06 2019/12 2020/06 2020/12
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RBC

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1069%
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