November 13, 2002
Revised Forecast of
Financial Results for the First Half of Fiscal 2002
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 the first half of fiscal 2002 (from
April 1, 2002 to September 30, 2002), published on May 20, 2002, and its forecast of
consolidated financial results for the same period, published on May 29, 2002.
(1) Revision of Forecast of Non-consolidated Financial Results for the First Half of
Fiscal 2002 (From April 1, 2002 to September 30, 2002)
Note:
Figures for fiscal 2001 are the combined total of those of NIPPONKOA Insurance Co., Ltd.
and Taiyo Fire & Marine Insurance Co., Ltd. This note also applies to the following
tables.
<Reason for Revision of Forecast of Non-consolidated Financial
Results >
Ordinary profit is expected to increase as a result of increase in underwriting profit due
to decrease in paid losses, etc. In addition, special income is expected to increase due
to the reversal of price fluctuation reserve and the reversal of bad debt reserve.
Consequently, in spite of aggravating factors such as revaluation loss on securities
caused by the slumping stock market, the Company has revised upward its forecast of net
income for the first half of fiscal 2002.
(2) Revision of Forecast of Consolidated Financial Results for the First Half of
Fiscal 2002 (From April 1, 2002 to September 30, 2002)
<Reason for Revision of Forecast of Consolidated Financial Results
>
Primarily due to the revision of forecast of non-consolidated financial results as
described above in (1), the Company has revised its forecast of consolidated financial
results accordingly.
(Reference)
The Company has also reviewed its forecast for the full fiscal year. As a result, it has
altered its forecast of non-consolidated financial results for fiscal 2002 (from April 1,
2002 to March 31, 2003) published on May 20, 2002, as follows:
(1) Forecast of Non-consolidated Financial Results for Fiscal 2002
(From April 1, 2002 to March 31, 2003)
(2) Forecast of Consolidated Financial Results for Fiscal 2002 (From April 1,
2002 to March 31, 2003)
The forecast of consolidated financial results for fiscal 2002 is now
under review. The Company plans to announce the new forecast when it releases its
consolidated financial results for the first half of fiscal 2002.
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, using the full
direct equity method.
(*) "Other securities" are defined as securities other than trading
securities, held-to-maturity debt securities and equity investments in subsidiaries and
affiliates. Net unrealized gains(losses) on "other securities" are recognized, net of
applicable taxes, as a component of shareholders' equity.
Revaluation loss on securities resulting from write-down due to
impairment as of September 30, 2002 is shown as follows:
| Notes: |
1. |
In judging the materiality of revaluation loss on securities, the Company
uses the average ordinary profit and average net income for the last five fiscal years.
This is because the Company recorded ordinary loss and net loss for fiscal 2001, for which
period the ordinary profit and the net income are regarded as zero in this calculation). |
2. |
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 their book value. As for 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.
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