Fubon Financial Holding Co., Ltd. · TWSE:2881
Fubon Financial — Q1 2016 Earnings Presentation
65 slides from Fubon Financial's earnings presentation, May 11, 2016
Slide 1: Fubon Financial 2016 Q1 Interim Results and 2015 Embedded Value of Fubon Life
Fubon Financial 2016 Q1 Interim Results and 2015 Embedded Value of Fubon Life 2016.05.11
Slide 2: Disclaimer
Disclaimer This meeting may contain forward-looking statements with respect to the financial condition, results of operations and business of the company. These forward-looking statements represent the company’s expectations or beliefs concerning future events and involve known and unknown risks and
Slide 3: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 3
Slide 4: Fubon Financial Holdings: Operation highlights
Fubon Financial Holdings: Operation highlights Net profits NT$8,774 million 3M16, up 61% QoQ. 56.3% yoy drop due to lower investment income and higher first year strain on the back of strong premium growth as regular-paid policies increase Net interest revenue and net fee revenue maintain steady g
Slide 5: Fubon Financial Holdings: Profitability
Fubon Financial Holdings: Profitability Net profits NT$bn 60.2 63.6 20.1 38.5 8.8 5.5 1Q15 4Q15 1Q16 2013 2014 2015 Earning per share (EPS) NT$ 6.21 5.89 1.96 3.90 0.86 0.53 1Q15 4Q15 1Q16 2013 2014 2015 Note: Fubon adopted fair value method for investment property evaluation since September 2014. 5
Slide 6: Fubon Financial Holdings: Net profits from major subsidiaries
Fubon Financial Holdings: Net profits from major subsidiaries Net profits from major subsidiaries Profit contribution from major subsidiaries NT$bn 1Q15 4Q15 1Q16 NT$bn Fubon Bank Fubon (HK), 0.7 , Securities, 7.8% 13.3 0.4 , 4.2% Fubon P&C, 0.5 , 6.0% Fubon Life, 4.9 4.9 2.1 , 24.8% Taipei Fubon 2.
Slide 7: Fubon Financial Holdings: Asset and net worth
Fubon Financial Holdings: Asset and net worth Total assets NT$bn 5,987 5,985 5,438 5,554 4,597 3M15 3M16 2013 2014 2015 Equity attributable to parent company NT$bn 408 440 368 399 342 3M15 3M16 2013 2014 2015 Note: Fubon adopted fair value method for investment property evaluation since September 20
Slide 8: Fubon Financial Holdings: ROA & ROE
Fubon Financial Holdings: ROA & ROE ROA 1.47% 1.21% 1.12% 0.88% 0.59% 0.38% 1Q15 4Q15 1Q16 2013 2014 2015 ROE 18.96% 16.07% 16.40% 11.54% 9.16% 5.62% 1Q15 4Q15 1Q16 2013 2014 2015 Note: Fubon adopted fair value method for investment property evaluation since September 2014. 8
Slide 9: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 9
Slide 10: Taipei Fubon Bank: Revenue
Taipei Fubon Bank: Revenue Steadily growth from net interest income and net fees Revenue composition of Taipei Fubon Bank NT$bn Fubon Bank (China) Treasury & others Net fee income 44.1 42.4 Net interest income 5.2 11.7% 6.0 14.1% 33.7 11.0 25.0% 11.5 7.4 17.5% 10.3 9.5 28.2% 1.8 15.3% 1.0 10.1% 10
Slide 11: Taipei Fubon Bank: Fee and wealth management revenue
Taipei Fubon Bank: Fee and wealth management revenue Sources of fee revenue(1) Wealth management fee(2) NT$mn NT$mn 3,239 +16.5% 2,690 2,957 4.0% 3.7% 3.5% 4.3% 2,309 9.2% 13.6% 7.3% 10.3% Others 11.8% 5.4% SN and others Syndication Mutual funds loan 40.3% Credit card Custodian and 83.0% 7.3% 77.6%
Slide 12: Taipei Fubon Bank: Loan composition
Taipei Fubon Bank: Loan composition Contribution from mortgage increase Loan growth excluding government loans was 2.2% Loans by type NT$bn 1,170 1,160 YoY -0.9% 0.6% 0.5% 3.6% 3.8% Credit card revolving YoY -4.8% 34.7% 38.4% Other consumer loans YoY +3.1% Mortgage loan YoY +9.6% 50.8% 49.8% Cor
Slide 13: Taipei Fubon Bank: Corporate credit
Taipei Fubon Bank: Corporate credit Foreign currency loan represents 39.9% of corporate loan SME credit accounts for 36% of corporate credit Corporate loan by currency SME credit and as % of corporate credit NT$bn NT$bn NTD Non-NTD Non-NTD loan as % of corporate loan SME SME as % of corporate cr
Slide 14: Taipei Fubon Bank: Interest yield and margin
Taipei Fubon Bank: Interest yield and margin NIM and loan-to-deposit spread NIM Loan-to-deposit spread 1.31% 1.32% 1.31% 1.28% 1.27% 1.28% 1.24% 1.24% 1.10% 1.09% 1.10% 1.07% 1.10% 1.08% 1.04% 1.01% 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Loan yield and deposit yield Loan rate Deposit rate 2.08% 2.0
Slide 15: Taipei Fubon Bank: Deposit mix and LDR
Taipei Fubon Bank: Deposit mix and LDR Deposit mix in NTD NTD loan-to-deposit ratio (LDR) NT$bn 1,039 1,103 44.2% 47.1% Time 88.2% 83.8% Demand 55.8% 52.9% Mar-15 Mar-16 Mar-15 Mar-16 Deposit mix in foreign currency Foreign currency LDR NT$bn 382 438 58.3% 52.3% Time Demand 66.2% 53.5% 41.7% 47.7% M
Slide 16: Taipei Fubon Bank: Asset quality
Taipei Fubon Bank: Asset quality NPL ratio Coverage ratio 0.26% Market average 1095.99% 1113.09% 1033.47% 0.18% 0.15% 816.37% 716.80% 0.11% 0.11% 0.12% Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 NPL ratio by business Net provision NT$mn Corporate loan Mortgage loan 186 0.6
Slide 17: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 17
Slide 18: Fubon Life: Total premium
Fubon Life: Total premium 28% yoy growth in total premium income NT$bn 474.4 425.0 420.1 126.7 269.1 56.7% 207.2 49.3% 55.1% 99.0 234.0 Renewal premium 67.0 52.9% FYP 61.6 62.2% 212.9 50.7% 205.3 43.3% 191.0 44.9% 59.7 47.1% 37.4 37.8% 1Q15 1Q16 2013 2014 2015 18
Slide 19: Fubon Life: First year premium (FYP)
Fubon Life: First year premium (FYP) 60% yoy growth in FYP mainly came from tradition regular-paid policies FYP composition YoY NT$bn 1Q15 % 1Q16 % growth Traditional life: Regular-paid 10.7 28.5% 24.9 41.7% 133.3% Traditional life: Single-paid 20.8 55.7% 22.9 38.3% 9.7% Interest-sensitive annuity
Slide 20: Fubon Life: Value of new business (VNB) & First year premium equivalent (FYPE)
Fubon Life: Value of new business (VNB) & First year premium equivalent (FYPE) FYPE growth 139% yoy led to FYPE improvement in FYPE/FYP ratio 29.4 NT$bn Traditional life: VNB grew 133.5% in 1Q16 yoy Regular-paid 12.3 Traditional life: 81.8% Single-paid Investment-linked VNB 68.3% Interest-sensit
Slide 21: Fubon Life: Composition of investment income
Fubon Life: Composition of investment income Investment income mainly came from recurring revenue NT$bn 1Q15 1Q16 YoY 2013* 2014 2015 Recurring investment income 19.6 23.1 17.8% 75.2 88.7 101.0 Realized gains from fixed income 6.9 3.6 -47.6% 8.0 12.1 9.9 investment Realized gains from equity 11.3
Slide 22: Fubon Life: Investment portfolio
Fubon Life: Investment portfolio Investment assets grew steadily Investment portfolio repositioned in response to market volatility 2015/3/31 2015/12/31 2016/3/31 （NT$bn） Deposit and cash equivalent 133.3 5.1% 168.6 6.0% 195.4 6.8% Domestic fixed income 574.7 21.8% 523.2 18.6% 495.9 17.3% Overse
Slide 23: Fubon Life: Portfolio of overseas fixed income
Fubon Life: Portfolio of overseas fixed income Overseas fixed income by asset type Overseas fixed income by region 4.4% 3.2% 19.9% 26.0% 45.9% 55.2% Others Corporate Asia & Other credit 60.9% North America 52.4% Financial Europe bond Government 45.7% bond 38.8% 21.6% 19.2% 4.0% 2.8% Mar-15 Mar-16 Ma
Slide 24: Fubon Life: Hedging composition
Fubon Life: Hedging composition Hedging cost & FX gain/loss FX position -103bps -101bps Naked Other USD, currencies 1Q15 1Q16 CS cost 8.1% Equities/ , 4.3% mutual -36 -36 funds , FX gain/loss & net 12.9% provision of FX reserve -67 -65 Recurring return 3.35% 3.17% 3.14% Before 2.98% hedge After Curr
Slide 25: Fubon Life: Investment spread
Fubon Life: Investment spread Cost of liability improvement continues Higher breakeven point (net underwriting cost) due to strong FYP growth Investment spread Recurring return and breakeven point Cost of liabilities Investment return Breakeven point Recurring return 5.53% 3.24% 3.14% 2.98% 2.74
Slide 26: Fubon Life: Investment performance
Fubon Life: Investment performance Improvement in unrealized position Unrealized outstanding Movement of unrealized gains from AFS assets NT$bn Dec-15 Mar-16 NT$bn Dividend income & Realized MTM gains 7.4 33.9 3.6 7.4 28.9 (15.6) (15.6) AFS HTM+Inactive* 5.9 Dec-15 Mar-16 Note: *before tax basis N
Slide 27: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 27
Slide 28: Fubon Insurance: Operating snapshot
Fubon Insurance: Operating snapshot Premium growth outperformed industry. Top 1 position in premium market share Net claim ratio increase due to net retained losses from Tainan earthquake Direct written premium by product Net combined ratio NT$bn 8.1 97.4% 88.8% 7.1 10.0% Others 10.2% 15.2% 35.6
Slide 29: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 29
Slide 30: Fubon Securities: Financial highlights
Fubon Securities: Financial highlights Stable market position in major business Market share & ranking lines 2016Q1 Ranking 2015Q1 Ranking Market leader in overseas ETF NAV of overseas 55,700 #1 40,800 #1 ETF (NT$mn) Brokerage per 0.10% #2 0.10% #2 branch* Emerging stock 20.84% #2 20.32% #2 trad
Slide 31: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 31
Slide 32: Fubon Bank (China): Key balance sheet items
Fubon Bank (China): Key balance sheet items Assets Net worth RMB$m RMB$m 67,367 5,033 60,885 4,578 Mar-15 Mar-16 Mar-15 Mar-16 Loans Deposits RMB$m Rediscount Loans (excluding rediscount) RMB$m 43,387 28,237 28,388 37,882 7,567 4,867 20,670 23,522 Mar-15 Mar-16 Mar-15 Mar-16 32
Slide 33: Fubon Bank (China): Financial highlight
Fubon Bank (China): Financial highlight Net Profits NIM RMB$m 1.55% 152 1.36% 84 1Q15 1Q16 1Q15 1Q16 ROAA & ROAE NPL ratio & Coverage ratio ROAA ROAE 12.24% NPL Coverage ratio 230.0% 7.39% 0.86% 157.5% 0.55% 1.91% 1.17% 1Q15 1Q16 Mar-15 Mar-16 33
Slide 34: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2015 Embedded value of Fubon Life 34
Slide 35: Value creation summary
Value creation summary Unit: NTD billion Item 2014 2015 YoY Difference Impact Net Worth (Book Value) 223.6 182.8 -18.3% -40.8 Adjusted Net Worth 196.2 183.2 -6.6% -13.0 Inforce VIF (before CoC) 273.6 306.0 11.8% 32.4 Value Creation Cost of Capital (CoC) (73.8) (84.0) -13.8% -10.2 VIF (After CoC) 199
Slide 36: Movement analysis: Adjusted net worth
Movement analysis: Adjusted net worth Unit: NTD billion 41.0 8.1 8.3 (8.6) (16.0) (73.3) 223.6 182.8 183.2 Statutory Net Unrealized capital Earning Others Statutory Net Special Reserve Adjust Market RE Appreciation Adjusted Net Worth@Dec. 31, gain Worth@Dec. 31, (FX and RE Value of (AFS) Value Worth
Slide 37: Movement analysis: Value of in-force (before CoC)
Movement analysis: Value of in-force (before CoC) Unit: NTD billion 320 .0 32.0 2.7 270 .0 1.3 41.2 (2.3) (17.2) 220 .0 (25.4) 170 .0 306.0 120 .0 273.6 70.0 20.0 -3 0.0 2014 VIF Model Change Existing Required return Data Change Eco. Non-eco. 2015 2015 VIF(before (before CoC) business - on existing
Slide 38: Movement analysis: Value of new business
Movement analysis: Value of new business Unit: NTD billion 40 .0 38 .0 2.6 1.0 36 .0 34 .0 32 .0 (2.6) (0.3) 30 .0 28 .0 Same basis : +10.4% 26 .0 24 .0 Same basis YoY +14% 22 .0 20 .0 18 .0 34.8 35.6 16 .0 14 .0 12 .0 10 .0 8.0 6.0 4.0 2.0 0.0 2.0 - 4.0 - 2014 VNB Sales Volume Product Mix Econ. Cha
Slide 39: Economic assumptions
Economic assumptions Year 2014 Year 2015 VIF VIF NTD Traditional Policies : NTD Traditional Policies : Year 2015 to Year 2052 at 3.98%~5.43%(2053+) Year 2016 to Year 2052 at 3.86%~5.57%(2053+) USD Policies : USD Policies : Year 2015 to Year 2030 at 5.16%~5.96%(2031+) Year 2016 to Year 2040 at 5.15%~
Slide 40: Economic assumptions: VIF portfolio return
Economic assumptions: VIF portfolio return In-force Portfolio Return: NTD Traditional Policies 6.00% (excludes Interest Sensitive Annuity) 5.57% 5.50% 5.00% 5.43% 3.98% 4.50% 4.00% 3.50% 3.86% 2015IF 2014IF 3.00% 1 5 9 13 17 21 25 29 33 37 41 45 49 In-force Portfolio Return: USD Policies 6.50% 5.96%
Slide 41: Economic assumptions: V1NB portfolio return
Economic assumptions: V1NB portfolio return NB Portfolio Return: NTD Traditional Policies 6.00% (excludes Interest Sensitive Annuity) 5.55% 5.50% 5.00% 5.43% 4.50% 3.89% 4.00% 2015NB 2014NB 3.50% 3.46% 3.00% 1 5 9 13 17 21 25 29 33 37 41 45 49 NB Portfolio Return: USD Policies 6.50% 5.96% 6.00% 5.50
Slide 42: Economic assumptions: Discount rate
Economic assumptions: Discount rate Fubon Life 2014/12/31 2015/12/31 Risk Free Rate 1.64%~3.50% 1.16%~3.50% Equity plus Country Risk Premium 6.50% 6.50% Beta 1.2 1.2 Calculated RDR 9.44%~11.30% 8.96%~11.30% VIF:11.0% VIF:11.0% RDR used in the valuation VNB:10.5% VNB:10.5% • RDR: According to CAPM (C
Slide 43: Cost of capital
Cost of capital Cost of Capital projection Maintain the regulatory minimum RBC level of 200% with consideration of following factors: 1) Add 30% C3 risk capital of previous year for all traditional products every year (excludes investment-linked product)； 2) Reflect current business operation and
Slide 44: Sensitivity summary: Portfolio return
Sensitivity summary：Portfolio return Unit: NTD billion VIF (before CoC) VIF -17.8% 17.8% -25.6% 25.6% 306.0 221.9 (54.4) 54.4 (56.8) 56.8 Return - 0.25% Base Return + 0.25% Return - 0.25% Base Return + 0.25% EV VNB -14.0% 14.0% -19.9% 19.9% 405.1 56.8 (56.8) 35.6 (7.1) 7.1 Return - 0.25% Base Return
Slide 45: Sensitivity summary: Risk discount rate
Sensitivity summary：Risk discount rate Unit: NTD billion VIF (before CoC) VIF 9.9% -8.2% 16.1% -13.3% 306.0 221.9 30.3 35.8 (25.0) (29.6) RDR - 1% Base RDR + 1% RDR - 1% Base RDR + 1% EV VNB 8.8% -7.3% 18.2% -15.0% 405.1 35.8 35.6 (29.6) 6.5 (5.3) RDR - 1% Base RDR + 1% RDR - 1% Base RDR + 1% Note:
Slide 46: Life's value creation: 2015 summary track record
2015 summary: Track record of Fubon Life’s value creation Unit: NTD billion 單位: 新台幣十億元 Value of New Business NB Margin (VNB / FYP) CAGR = 13% (2.4x) CAGR = 17% (3.0x) 34.8 35.6 31.7 31.8 28.0 24.8 17.9 11.8 EV2008 EV2009 EV2010 EV2011 EV2012 EV2013 EV2014 EV2015 Value of In-Force Embedded Value 221.
Slide 47: Investment return: Assumption vs. Actual
Investment return: Assumption vs. Actual 4.97 4.74 4.42 4.14 4.06 4.10 3.78 3.87 3.80 3.88 4.01 3.97 3.68 EV2009/2010 EV2010/2011 EV2011/2012 EV2012/2013 EV2013/2014 EV2014/2015 EV2015/2016 Note: 1. Track record shows higher actual return than EV assumption in general. 2. The investment return for 2
Slide 48: Independent review by Deloitte Consulting
Independent review by Deloitte Consulting Deloitte Consulting TheEngagement The Engagement •• Deloitte Deloitte Advisory Advisory (Hong (Hong Kong) Kong) Limited (“Deloitte Consulting”) Limited (“Deloitte Consulting”) were were retained retained by by Fubon Fubon Life Life to to perform perform an a
Slide 49: Risk adjusted discount rates
Risk adjusted discount rates Deloitte Consulting Fubon Life calculated the EV and V1NB at Risk Adjusted Discount Rates (“RDR”) of 11.0% and 10.5% respectively. RFR based on RFR based on Equivalent RFR for Equivalent RFR for current government Company’s long- New Business In-Force Business bond yield
Slide 50: Comments: Risk adjusted discount rates
Comments: Risk adjusted discount rates Deloitte Consulting Deloitte Consulting independently derived a range of RDRs using the CAPM approach: The low end of the RDR is developed based on the current yield on 10-year Taiwan government bonds. The high end of the RDR is developed based on the Compa
Slide 51: Comments: Investment return (1)
Comments: Investment return (1) Deloitte Consulting A set of rising investment return assumption has been used in this valuation which is considered reasonable for the present market conditions. Fubon Life’s derivation of the investment return assumption is featured by the following: • Derivation me
Slide 52: Comments: Investment return (2)
Comments: Investment return (2) Deloitte Consulting It is in Deloitte Consulting’s view that: Methodology • Fubon Life’s derivation methodology for the investment return assumption is reasonable and consistent with the way that the ANW is calculated; Economic Assumptions • The expected long-term ris
Slide 53: Comments: Non-Economic assumptions
Comments: Non-Economic assumptions Deloitte Consulting Non - Economic Assumptions • The non-economic assumptions reflect Fubon Life’s best estimate of future operating experience, and are appropriately supported by the company’s historical operating experience. 53
Slide 54: Comments: EV and V1NB Results
Comments: EV and V1NB Results Deloitte Consulting Deloitte Consulting have reviewed the Embedded Value and Value of One Year’s New Business results at a high-level under the generally accepted method for calculating traditional embedded values in Taiwan: • Review of the changes in the VIF relative t
Slide 55: Thank you
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Slide 56: Fubon Financial - Financial summary
Fubon Financial - Financial summary NT$ millions, except for percentages 1Q16 4Q15 3Q15 2Q15 1Q15 2015 2014 YoY Income Statement Data Net interest income 25,781 25,445 24,892 22,271 22,357 94,965 89,315 6.3% Insurance income 78,425 77,347 84,384 56,538 45,819 264,088 230,938 14.4% Net gains (losses)
Slide 57: Taipei Fubon Bank - Financial summary
Taipei Fubon Bank - Financial summary NT$ millions, except for percentages 1Q16 4Q15 3Q15 2Q15 1Q15 2015 2014 YoY Income statement data Interest income 11,223 11,727 11,906 11,572 11,441 46,647 45,231 3.1% Interest expense (5,377) (5,584) (5,830) (5,763) (6,118) (23,294) (22,964) 1.4% Net interest i
Slide 58: Fubon Life - Financial summary
Fubon Life - Financial summary NT$ millions, except for percentages 1Q16 4Q15 3Q15 2Q15 1Q15 2015 2014 YoY Income statement data First year premium 59,722 62,108 62,152 43,604 37,418 205,282 190,974 7.5% Retained earned premium 120,845 122,879 125,791 99,205 92,422 440,297 390,077 12.9% Total invest
Slide 59: Fubon Insurance - Financial summary
Fubon Insurance - Financial summary NT$ millions, except for percentages 1Q16 4Q15 3Q15 2Q15 1Q15 2015 2014 YoY Income statement data Direct written premiums 9,297 8,874 8,452 9,540 8,150 35,016 32,718 7.0% Retention of earned premiums 7,230 6,833 7,024 6,833 6,450 27,139 24,653 10.1% Net income fro
Slide 60: Fubon Securities - Financial summary
Fubon Securities - Financial summary NT$ millions, except for percentages 1Q16 4Q15 3Q15 2Q15 1Q15 2015 2014 YoY Income statement data Brokerage commissions 701 791 771 790 692 3,044 3,204 -5.0% Net interest income 215 219 202 274 247 942 932 1.0% Fee income 39 242 11 26 19 298 157 89.7% Net princip
Slide 61: Fubon Bank (China) - Financial Summary
Fubon Bank (China) - Financial Summary RMB millions, except for percentages 1Q16 4Q15 3Q15 2Q15 1Q15 2015 2014 YoY Income Statement Data Interest income 491 552 550 559 572 2,232 2,425 -7.9% Interest expense (418) (449) (480) (482) (515) (1,925) (1,846) 4.3% Net interest income 73 102 70 77 57 307 5
Slide 62: Deloitte opinion letter on Fubon Life embedded value
6 May 2016 Fubon Life Insurance Company Limited 14F, No. 108, Section 1 Tun Hwa South Road Taipei 10557 Taiwan, R.O.C For the attention of: Mr. Chun-Pan Chen, President Ms. Tsai-Ling Chao, EVP Dear Sirs, Review of Embedded Value as at 31 December 2015 and Value of One Year's New Business of Fubon Li
Slide 63: Embedded value definitions
Embedded Value ("EV"): this is the sum of the Adjusted Net Worth and Value of In Force Business as at the valuation date. It includes no allowance for the value of future business yet to be written; Adjusted Net Worth ("ANW"): this represents the shareholder equity in the enterprise as at the va
Slide 64: Scope of Deloitte review
Review of the Company's analysis of change in the VIF between 31 December 2014 and 31 December 2015. The scope of our review did not include the following aspects: Review of the policy data on the Company’s administration systems; Our review did not cover an audit of the accuracy or completeness
Slide 65: Deloitte opinion on economic assumptions
The economic assumptions, including rate of investment return, risk adjusted discount rate and inflation rate, were set consistently with one another and with the way in which the adjusted net worth was calculated; The economic assumptions represent plausible future outcomes for expected future
Fubon Financial Holding — Q1 2016 Earnings Presentation on 6ix