 |
| May 29, 2003 |
|
| Mitsui Sumitomo Insurance Group |
Financial Targets
Set
For Medium-Term Strategic
Business Plan "MS WAVE II" |
|
| Mitsui Sumitomo Insurance Co., Ltd. (MSI / President,
Hiroyuki Uemura) formulated the medium-term strategic business plan,
"MS WAVE II" for fiscal 2003 and 2004 in April 2003. We
have finished a financial projection that represents the strategic
objectives set in the plan as below. |
| Note: |
When the summary of the plan was announced on April 14 beforehand,
a specific financial projection was suspended, awaiting finalizing
settlement of accounts for fiscal 2002, and now we hereby announce
the projection, which has been formulated based on these results.
|
|
| <Financial Targets set
in MS WAVE II> |
 |
| (Notes) |
*1. |
Hypothetical net income of Mitsui Sumitomo Kirameki Life Insurance
Co., Ltd before extra reserve for Net level premium method of
valuation provided |
| |
2. |
The consolidated net income does not reconcile with the sum
of those from the businesses because of partial double counting
in the overseas and financial services business, where each
net income stated above is the sum of that at the subsidiaries
in charge of relevant business and portion of net income corresponding
to relevant business at the parent company. |
|
| [Major Targets Set and Background] |
|
1. |
Consolidation |
|
|
At the non-life
insurance companies in Japan, non-life insurance business account
largely for revenues. We, MSI, started "diversification of sources
of revenues" ahead of the peers by expanding our business dynamically
into five areas such as "non-life insurance," "life
insurance" and "overseas" businesses. And now we are
aiming at sustainable growth under our consolidation-oriented management. |
|
2. |
Non-life Insurance Business |
|
|
To move toward
realization of "becoming No.1 in total corporate group power,"
we, MSI, have focused on "consolidated net premiums written from
non-life insurance " as a key benchmark to measure it by size,
and will strive to achieve it.
Specifically
speaking, we are aiming at "No.2 in consolidated net premiums
from non-life insurance, including those from overseas" among
the Japanese peers by increasing 64 billion yen in the net premiums
compared to fiscal 2002 through expansion of the overseas business
in addition to reinforcement in the domestic business. |
|
|
| (1) |
Net Premiums Written |
| |
We will
also reinforce the non-life insurance business steadily in Japan
for realization of "No.2 in consolidated net premiums written."
In the midst of harsh circumstances under the lingering deflation,
we will allocate management resources concentratedly to retail
marketing and promote bankassurance sales and marketing of our
new "third-sector" products. By these actions, we
will increase premium income by 1.9% p.a. on an annual average,
and become "No.1 in increasing ratio of net premiums written
from domestic non-life insurance." |
| (2) |
Combined Ratio |
| |
After
consideration of possible natural disasters into loss ratio,
we will make further efforts to decrease expense ratio under
the 34%-level, following the achievement of 35.3% for fiscal
2002 down from 37.3% for fiscal 2000, and achieve our target,
"No.1 combined ratio" in our industry. |
| (3) |
Net Income |
| |
Although
the market conditions remains difficult for asset investment,
we will extend our record of "No.1 in the rate of investment
return" for eight straight years, and drive ahead toward
the goal of net income of the 50-billion-yen level on the wheels
of premiums and investments.
Note:
We marked about 32.4 billion yen in net income for fiscal 2002 |
|
|
3. |
Overseas Business |
|
|
We, MSI, are
aiming further expansion in Asia where we are at the top place among
the Japanese peers in both size of premium income and office network.
And simultaneously, we will deploy resources strategically, focusing
on China, India and Korea. At the reinsurance subsidiaries overseas,
we will expand reinsurance activities for more premiums from acceptances.
Totaling these revenues, the overseas business will account for about
9% of the planned overall net premiums written compared to 7.5% for
fiscal 2002 and achieve the net income of 6.6 billion yen. |
|
4. |
Life Insurance Business |
|
|
Through reinforcing
the sales force at Mitsui Sumitomo Kirameki Life Insurance Co., Ltd.
and further promotion of our two core items, "Shunyu Hosho"
income protection policy and "MS Shushin" whole life insurance,
we will add a net increase of 1,900 billion yen in amount in-force
to the basis of fiscal 2002. By reaching it, we will achieve "No.2
in the amount of life insuance in-force among subsidiaries of non-life
insurers."
Mitsui Sumitomo
CitiInsurance Life Insurance Co., Ltd. ("MSICiti") will
continue to offer its innovative products of variable annuity, and
expand its sales channels, extending its well-organized support to
these channels. MSICiti will build a solid basis in the rapidly growing
variable annuity market on the foundation of these activities.
|
|
5. |
Financial Services and Risk-related Businesses |
|
|
While, in
the financial services business, we will aggressively develop a business
model to employ our high credit rating and highly advanced financial
technology, we will strengthen our operations such as risk management
service, long-term and medical care related services, emergency assistance,
and appraisal. We are aiming at realizing an adequate scale of these
businesses to contribute to consolidated results. |
Appendix: summary of "MS WAVE II"
|
