April 5, 2002
| Revised Forecast of Financial Results for Fiscal 2001 and Revaluation Loss
on Securities |
NIPPONKOA Insurance Co., Ltd.
President: Ken Matsuzawa
1. Revision of the Forecast of Financial
Results
NIPPONKOA Insurance Co., Ltd. ("the Company") has revised its forecast of
non-consolidated financial results for fiscal 2001 (from April 1, 2001 to March 31, 2002,)
published on November 27, 2001, and its forecast of consolidated financial results for the
same period, published on December 7, 2001.
| (1) |
Revision of Forecast of Non-consolidated Financial
Results for Fiscal 2001 (From April 1, 2001 to March 31, 2002) |
|
(Billions of Yen) |
|
| |
Net Premiums Written |
Ordinary Profit |
Net Income |
| Previous Forecast (A) |
685.0 |
27.0 |
12.5 |
| New Forecast (B) |
670.0 |
-32.0 |
-20.0 |
| Difference
(B-A) |
-15.0 |
-59.0 |
-32.5 |
| Percent Change (%) |
-2.2 |
-218.5 |
-260.0 |
(Reference)
Fiscal 2000 |
677.0 |
47.1 |
13.5 |
|
|
Note: Figures of financial results for fiscal
2000 are, in principle, the combined total of those of The Nippon Fire & Marine
Insurance Co., Ltd. and The Koa Fire & Marine Insurance Co., Ltd. With regard to
ordinary profit, however, an amount for reversal of bad debt reserve included in special
income of The Nippon Fire & Marine Insurance Co., Ltd. is deducted from provision of
bad debt reserve included in ordinary expense of The Koa Fire & Marine Insurance Co.,
Ltd. The resulting amount is regarded as provision of bad debt reserve to be included in
ordinary expense for the combined company. This note also applies to the following charts.
|
| <Reason for Revision of Forecast of Non-consolidated
Financial Results> |
|
The Company has revised its forecast of
ordinary profit and net income downward respectively, because of the revaluation loss on
securities as described below in 2., which is due to the impact of stock market decline.
|
(Reference) |
|
As mentioned above, it is the
revaluation loss on securities, not the impairment of underwriting profit, etc., that has
caused the ordinary loss and the net loss for this fiscal year. Owners" equity excluding net unrealized gain/loss on "other
securities" (*) will be 316.2 billion yen, and the valuation
difference before taxes (market value less cost) on "other
securities" will be maintained at a level of well over 300
billion yen (of which that of domestic equities is 296.9 billion yen). Therefore, the
solidity of owners' equity and the financial soundness of the
Company remain steadfast. Consequently, we do not revise the previous forecast of annual
dividend of 7 yen per share.
(*) "Other securities"
are defined as securities other than trading securities,
held-to-maturity debt securities and equity investments in subsidiaries and affiliates.
Net unrealized gain/loss on "other securities" are recognized, net of applicable taxes, as a component of shareholders'
equity.
|
(2) |
Forecast of Consolidated Financial
Results for the Fiscal 2001 (From April 1, 2001 to March 31, 2002) |
|
(Billions of Yen) |
|
| |
Ordinary Income |
Ordinary Profit |
Net Income |
| Previous Forecast (A) |
1,077.0 |
27.5 |
9.0 |
| New Forecast (B) |
1,064.0 |
-31.0 |
-24.0 |
| Difference
(B-A) |
-13.0 |
-58.5 |
-33.0 |
| Percent Change (%) |
-1.2 |
-212.7 |
-366.7 |
(Reference)
Fiscal 2000 |
1,111.0 |
47.9 |
13.9 |
|
| <Reason for Revision of Forecast of Consolidated Financial
Results> |
|
Following the revision of forecast of
non-consolidated financial results as described above in (1), the Company has revised its
forecast of consolidated financial results as well. |
|
|
2. Revaluation Loss on Securities
The Company records the valuation difference resulting
from application of the mark-to-market method to "other
securities", which are defined under the Article 8, paragraph
21 of Regulations Concerning Financial Statements, as a component of shareholders'
equity, using the full direct equity method.
On the other hand, revaluation loss on securities
resulting from write-down due to impairment as of March 31, 2002 is shown as follows:
| (A) |
Total Revaluation Loss on Securities as of March 31, 2002 |
73.8 billion yen |
| (B) |
Shareholders' Equity as of March 31, 2001
(A/B x 100) |
621.2 billion yen
( 11.9%) |
| (C) |
Ordinary Profit for fiscal 2000 ended March 31, 2001
(A/C x 100) |
47.1 billion yen
(156.7%) |
| (D) |
Net Income for fisical 2000 ended March 31,2001 (A/D x 100) |
13.5 billion yen
( 544.8%) |
Note:
In respect of write-down of securities with a market price due to impairment, the Company
recognizes revaluation loss on all securities the market value of which has declined by
50% or more to the book value. As for the securities whose decline ratio is 30% or more
but less than 50%, the Company recognizes revaluation loss in cases where there is no
possibility of recovery.
Cautionary Statement
Estimates, projections, targets and other statements contained in this material that are
not historical facts are forward-looking statements about the future performance and plans
of NIPPONKOA Insurance Co., Ltd. (the "Company"). Such forward-looking statements are based on the Company's assumptions and beliefs in light of the information currently available to
it. Therefore, those statements do not guarantee future performance, but involve risks and
uncertainties. The Company cautions you that a number of important factors could cause
actual results to differ materially from those contained in the forward-looking
statements. Such factors include, but are not limited to, (1) general economic conditions
in the Company's market, mainly Japan, (2) business conditions
in the insurance industry, especially, increased competition, (3) fluctuation of exchange
rates, and (4) the regulatory environment.
|
