December 1, 2003
The effect on our financial results of
the possible revaluation loss on our holding of Ashikaga Financial Group stocks |
NIPPONKOA Insurance Co., Ltd.
President: Ken Matsuzawa
NIPPONKOA Insurance Co., Ltd. (the "Company") announces the effect
on the Company's financial results, following the fact that the Company may record a
revaluation loss on its holding of Ashikaga Financial Group stocks.
1. Outline of the party concerned
(1)Name: Ashikaga Financial Group, Inc.
(2)Address: 1-25, Sakura 4-chome, Utsunomiya-shi, Tochigi Prefecture
(3)Representative: Yoshiaki Higano
(4)Capital: 50,000 million yen (as of September 30, 2003)
(5)Business: Management of its subsidiaries and related business
2. Relevant fact and its date of occurrence
Following recognition by the Prime Minister of Japan on November 29, 2003 of Ashikaga
Bank, Ltd., as being subject to the measure stipulated in Article 102, paragraph 1, item 3
of the Deposit Insurance Law, the decision was taken to activate Special Crisis Management
and effect the acquisition by the Deposit Insurance Corporation of Japan of the equities
of Ashikaga Bank, Ltd. Consequently, the market value of Ashikaga Financial Group stock is
expected to decline substantially.
3. The Company's holding of Ashikaga Financial Group stocks
Number of stocks: 28,561,497 shares
Book value: 3,855 million yen
4. Effect of this fact on the Company's financial results
The Company is expected to record up to 3,855 million yen of revaluation loss on the
above-mentioned stock for the fiscal year ending March 31, 2004. However, the Company's
financial forecast for the fiscal year ending March 31, 2004 is not revised, since the
Company expects an increase in investment income such as gain on sale of equities.
| 0f Net Asset Value as of March 31, 2003 (440,121 million yen) |
0.88% |
| 0f Average Ordinary Profit for the Last Five Fiscal Years (26,965
million yen) |
14.30% |
| 0f Average Net Income for the Last Five Fiscal Years (6,399
million yen) |
60.25% |
Note: 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 2002, for which period the ordinary profit and the net income are regarded as
zero in this calculation.
| (Reference) Forecast for fiscal 2003 (Non-consolidated)
announced on Nov. 7, 2003 |
(Millions of Yen) |
| |
Net Premiums Written |
Ordinary Profit |
Net Income |
| Forecast for fiscal 2003 |
740,000 |
43,000 |
22,000 |
|
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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