Mirae Asset Life Insurance Investor Relations 2016 1H
BUILDING ON PRINCIPLES (As of Jun, 2016) Total Assets 27.7 tn KRW Shareholder s Equity 2.1 tn KRW Employees 1,295 Headquarter 507 Teheran-ro, Gangnam-gu, Seoul, Korea 1988 Mar Establishment 2005 Jun Acquired by Mirae Asset Group Nov Dec First to open financial consulting center in Korea First to be authorized as retirement pension provider in Korea First to establish Retirement Research Institute in Korea 2006 Jul First to sell mutual funds through insurance FCs in Korea 2007 Sep First to provide trust services in Korea 2009 Feb Recognized as a superior retirement plan provider 2010 Jun First to establish smart mobile insurance system in Korea 2011 Oct First to be authorized by ISO for Education System for Retirement Pension Plan Experts 2012 Apr Recognized as the Top Call Center by KSQI 2013 Dec Top new products award by FSS for Variable Insurance 2014 Apr First to provide variable insurance products through online channel in Korea 2015 Jul Listed on Korea Stock Exchange (KOSPI) Market 2016 Mar Good brand award for MVP Fund (Hankyung Business) Mar Grand award for retirement pension plans (Maeil Economy),... Not an offer for sale, or solicitation of any offer to buy any securities. Any investment decision must be made solely based on the information contained in the prospectus. The forward-looking statements, based on our current expectations or estimates, involve substantial risks and uncertainties and speak only as of the date of this presentation. Mirae Asset Life Insurance Co., Ltd. -01-201609-006
Shareholder Structure (As of Apr. 18, 2016) Etc. 46.4% 1.2% Treasury Stock 6.3% ESOP 7.2% Mirae Asset Securities 19.9% 19.0% Mirae Asset Capital Other Related Parties & Group Affiliates Shareholders Shares % Stake Mirae Asset Securities 28,843,450 19.9% Mirae Asset Capital 27,601,633 19.0% Mirae Asset Global Investment 8,958,493 6.2% Mirae Asset Fund Service 771,568 0.5% Mirae Asset Consulting 155,910 0.1% Other Related Parties 617,852 0.4% Major Shareholders & Related Parties 66,948,906 46.1% ESOP 9,504,546 6.3% Treasury Stock 1,700,000 1.2% Etc. 67,026,548 46.4% Total Floating Shares (KRX KOSPI) 145,180,000 100.0% Life Insurance Total Assets (tn KRW) 19.4 20.9 16.5 14.1 12.2 8.4 9.6 6.5 24.1 26.8 27.7 CPS : 21,126,760 shares (Portfolio C) RCPS : 7,042,253 shares (Redeemed & closed fully on Jun. 2016) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016.06 Total Assets : Unconsolidated basis 3
Why Mirae Asset Life? (Strong Points) 1 Two-Track Strategy : Pursuing Profitability and Stability Together Improving profitability by expanding sales of protection type insurance. Stabilizing income structure by growing up the fee-based business. 2 3 Quick Improvement in Negative Spread Margin Global portfolio distribution backed by risk management to overcome low interest rate. Expanding reserves for floating rate insurance, along with market-lowest crediting interest rate. Proactive Preparation for the Adoption of IFRS4-II Diversifying asset portfolio under ALM. Market valuation friendly reserve structure. Minimizing required capital and strengthening financials by Fee-Biz. 4
Protection Type Insurance Two-Track Strategy Growth of Protection APE continues due to high performance of exclusive sales channels. Loss ratio is improving due to the intensive pricing policy and better underwriting. Top level policy persistency by systematic CRM. Protection APE (KRW) +7.1% Loss Ratio Persistency Ratio 2014.06 2015.06 2016.06 93.4bn 100.0bn 96.5% 84% 87% 79.2bn 85.8% 86.8% 70% 72% 37% 45% 2014 1H 2015 1H 2016 1H 2014 1H 2015 1H 2016 1H 13th 25th 60th Payment 5
Fee-Biz : Variable Insurance Two-Track Strategy Increasing needs for variable insurance which is tax-exemptive under low growth economy. Variable APE growth with solid brand, distinguishing fund products, and competitive consulting. Growth in the commission revenue that is the long term source of stable income. Variable APE (KRW) Variable Reserve (KRW) Variable Commission (KRW) +38.8% 90.2bn 5.7tn 6.0tn 5.8tn 11.3bn 11.3bn 65.0bn 10.5bn 43.8bn 2014 1H 2015 1H 2016 1H 2014.06 2015.06 2016.06 2014 1H 2015 1H 2016 1H 6
Fee-Biz : Retirement Pension Two-Track Strategy The market size of retirement pension is expected to grow due to the continuous growth in private pension sector in the aging society. Reserves and the commission income continues to grow driven by in-house operation unit. Retirement Pension Reserve (KRW) 2.9tn Commission from Retirement Pension Reserve (KRW) 4.0bn 2.4tn 2.8bn 2.9bn 1.7tn 2014.06 2015.06 2016.06 2014 1H 2015 1H 2016 1H Retirement pension reserve is based on asset management contracts 7
Asset Management : General Account Spread Margin Improvement Diversifying domestic and overseas asset portfolio based on risk management. Long term global asset distribution to overcome domestic low interest rate and negative spread. AUM Portfolio (KRW,%) Global Portfolio Distribution (KRW,%) Overseas Securities 24.0% Bonds 45.8% 2016 1H 17.1tn Others 9% KP 6% Equity 2% Real Estate 0.6% Equity 0.7% Cash 1.6% Loans 12.1% Beneficiary Certificates 15.2% Real Estate 11% US Treasury 13% 2016 1H 5.6tn Global Bonds 14% US IG 45% 8
Asset Management : General Account (AI) Spread Margin Improvement Accumulated experiences in global alternative investment (AI) to meet unexpected market changes. Investing in long term basis mainly for gains from dividends and rents. 2006 2006 2012 2013 2013 Mirae Asset Tower (Pudong, Shanghai) Four Seasons Hotel (Seoul, Korea) Rochavera Towers Faria Lima Towers (Sao Paulo) 225 West Wacker (Chicago) Four Seasons Hotel (Sydney) 2014 2015 2015 2015 2016 1801K St. Bldg. (Washington DC) Fairmont Orchid (Hawaii) Fairmont (San Francisco) Cologne City Hall (Germany) Hyatt Regency Waikiki (Hawaii) 9
Asset Management : Variable Account Spread Margin Improvement Realizing long term stable yield rate based on the competitiveness in asset management and various fund line-ups. Dramatic growth in the MVP Fund that features both of profitability and stability backed by in-house global asset portfolio programs. Variable Account Portfolio (KRW,%) Variable Insurance Fund Yield Rate MVP Fund NAV (KRW,%) Overseas Proportion Overseas 25% 2016 1H 5.7tn Domestic 40% Mirae Asset Life Industry Average 12.5% 9.3% +115% YoY 514.7bn 6.8% Overseas & Domestic 35% 4.3% 3.0% 2.5% 239.8bn 0.7% 0.6bn 60% 40% 2014 2015 2016 1H 2014.04 2015.06 2016.06 (Initiation) MVP (Mirae Asset Variable Portfolio) : Mirae Asset Life s exclusive portfolio strategy that in-house experts manages flexible accounts directly for maximizing yield rate of customer s accounts in the long term basis. KLIA : Korea Life Insurance Association 10
Reserve Structure Spread Margin Improvement Continuing to expand reserve proportion for floating interest rates. Reducing reserve proportion for high fixed rates by operating industry-lowest crediting interest rate. Reserve Types Reserve for High-Guarantee Fixed Rate Floating Rate Fixed Rate 3% & Up 6% & Up 41% 39% 37% 41% 39% 38% 50% 59% 61% 63% 22% 19% 18% 2014.06 2015.06 2016.06 2014.06 2015.06 2016.06 11
Asset Liability Management Financial Stability Notwithstanding lowered market interest rate, asset-liability interest gap continues to reduce due to the effects from lowered crediting rate and global asset distribution policy. Weighing priorities on financial stability with ALM. Asset-Liability Interest Gap Asset-Liability Duration Gap (YEARS) 4.82% Crediting Rate for Reserves Yield Rate of Assets Asset Duration Liability Duration Adjusted Gap +0.3-0.5-0.6 4.14% -68bp 4.39% 3.87% -52bp 4.02% 3.81% -21bp 5.9 5.3 5.5 5.6 5.8 6.7 2014.06 2015.06 2016.06 2014.06 2015.06 2016.06 12
RBC Ratio Financial Stability Maintaining RBC ratio consistently higher than market standard. Preparing IFRS4-II proactively by lowering market valuation exposures and high-guarantee fixed rate reserves. RBC Ratio Effect of IFRS4-II Liability At Fair Value Solvency Solvency II Level 289% 263% 278% Reserve Breakdown by Interest Rate Total Reserve General Account Market Standard 200% Regulatory Requirement 100% Market Valuation Exposure 61% General Account 18% 20% 7% Fixed Rate 6% & Up Fixed Rate Under 6% Floating Rate Over 3% 39% Separate Account 55% Floating Rate 3% & Down 2014 1H 2015 1H 2016 1H Lesser exposure to market valuation Lower fixed rate reserves 13
Financial Summary Category 2016 2015 2016 2015 YoY 2Q 2Q 1H 1H YoY Premium Income 847.3 959.3-11.7% 1,700.1 1,879.3-9.5% APE 91.5 143.1-36.0% 200.6 324.7-38.2% Protection APE 44.1 41.8 +5.5% 100.0 93.4 +7.1% Variable APE 45.1 36.1 +25.0% 90.2 65.0 +38.8% Total Assets 27,669 25,167 +9.9% 27,669 25,167 +9.9% Total Liabilities 17,063 15,298 +11.5% 17,063 15,298 +11.5% Shareholder s Equity 2,125 1,592 +33.5% 2,125 1,592 +33.5% EBT 42.8 30.3 +41.1% 50.5 69.5-27.3% NI Unconsolidated 32.0 50.0-36.0% 36.1 79.9-54.8% Consolidated 36.5 14.8 +145.8% 50.2 44.1 +13.9% RBC Ratio 278.1% 262.8% +15.3%p 278.1% 262.8% +15.3%p 14
Memo Contact IR : YJ@miraeasset.com / Tel : +82-2-3271-4852