Fubon Financial Holding Co., Ltd. · TWSE:2881
Fubon Financial — Q1 2017 Earnings Presentation
65 slides from Fubon Financial's earnings presentation, May 15, 2017
Slide 1: Fubon Financial 2017 Q1 Interim Results and 2016 Embedded Value of Fubon Life
Fubon Financial 2017 Q1 Interim Results and 2016 Embedded Value of Fubon Life 2017.05.15
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) 2016 Embedded value of Fubon Life 3
Slide 4: Fubon Financial Holdings: Operation highlights
Fubon Financial Holdings: Operation highlights Net profits reached NT$9,879 million in 3M17, up 12.6% yoy. Net interest revenue and net fee revenue maintain steady growth Taipei Fubon Bank NIM gradually recovering Renewal premium continues to grow, up 27% yoy Pre-hedge investment performance
Slide 5: Fubon Financial Holdings: Profitability
Fubon Financial Holdings: Profitability Net profits NT$bn 63.6 9.9 60.2 8.8 48.4 1Q16 1Q17 2014 2015 2016 Earning per share (EPS) NT$ 6.21 0.97 5.89 0.86 4.73 1Q16 1Q17 2014 2015 2016 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$bn 1Q16 1Q17 NT$bn Fubon Fubon Bank (HK), Securities, 0.7 , 7.3% 9.9 0.3 , 3.4% Fubon 8.8 P&C, 0.6 , 6.3% Taipei Fubon Bank, 4.3 , 43.1% 4.9 4.3 4.0 2.1 Fu
Slide 7: Fubon Financial Holdings: Asset and net worth
Fubon Financial Holdings: Asset and net worth Total assets NT$bn 6,361 5,985 6,351 5,987 5,438 1Q16 1Q17 2014 2015 2016 Equity attributable to parent company NT$bn 436 399 408 427 368 1Q16 1Q17 2014 2015 2016 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 0.62% 1.21% 0.59% 1.12% 0.79% 1Q16 1Q17 2014 2015 2016 ROE 9.16% 9.16% 16.07% 16.40% 12.19% 1Q16 1Q17 2014 2015 2016 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) 2016 Embedded value of Fubon Life 9
Slide 10: Taipei Fubon Bank: Revenue
Taipei Fubon Bank: Revenue Steady growth from net interest income and net fees Revenue composition of Taipei Fubon Bank NT$bn Fubon Bank (China) Treasury & others 44.1 42.4 Net fee income 40.7 Net interest income 11.7% 14.1% 13.9% 11.5 25.0% 17.5% 13.6% 10.4 15.3% 9.4% 17.9% 14.1% 26.3% 28.3% 24.0
Slide 11: Taipei Fubon Bank: Fee and wealth management revenue
Taipei Fubon Bank: Fee and wealth management revenue Fee income growth along with sound credit card and syndication business Investment type of products fee income increase with higher contribution Sources of fee revenue Wealth management fee NT$mn NT$mn 3,239 3,307 4.6% 2,690 4.0% 3.7% 9.4% 2,5
Slide 12: Taipei Fubon Bank: Loan composition
Taipei Fubon Bank: Loan composition Mortgages growth outperformed industry Consumer loans contribution increase Loans by type NT$bn 1,160 1,125 1,136 QoQ +0.9% YoY -2.1% 0.5% 0.5% 0.6% 3.8% 4.1% 4.2% Credit card revolving QoQ -6.1% YoY -8.5% 38.4% 42.4% 42.8% Other consumer QoQ +0.6% YoY +7.4% l
Slide 13: Taipei Fubon Bank: Corporate credit
Taipei Fubon Bank: Corporate credit Foreign currency loans recovered Contributions from SME credit continues increasing, reaching 41.1% Corporate loan by currency SME credit and as % of corporate credit NT$bn NT$bn NTD Non-NTD SME SME as % of corporate credit 357.4 348.5 222 346.8 344.6 336.8 21
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% 1.32% 1.34% 1.34% 1.28% 1.30% 1.10% 1.08% 1.04% 1.01% 1.01% 1.03% 1.00% 0.97% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Loan yield and deposit yield Loan rate Deposit rate 2.05% 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$bn 1,103 1,126 47.1% 46.3% Time Demand 83.8% 83.6% 52.9% 53.7% Mar-16 Mar-17 Mar-16 Mar-17 Deposit mix in foreign currency Foreign currency LDR NT$bn 483 531 52.3% 55.6% Time Demand 53.5% 47.7% 36.4% 44.4% M
Slide 16: Taipei Fubon Bank: Asset quality
Taipei Fubon Bank: Asset quality NPL ratio Coverage ratio 0.30% Market 716.80% 678.90% average 663.16% 652.12% 641.81% 0.18% 0.19% 0.20% 0.20% 0.18% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 NPL ratio by business Net provision NT$mn Corporate loan Mortgage loan 204 0.8% 1
Slide 17: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2016 Embedded value of Fubon Life 17
Slide 18: Fubon Life: Total premium
Fubon Life: Total premium 5% yoy growth in total premium income and 27% growth in renewal premium NT$bn 493.6 474.4 425.0 133.2 126.7 269.1 289.3 58.6% 55.1% 56.7% 234.0 67.0 58.9% 84.8 Renewal premium 63.7% FYP 191.0 205.3 43.3% 204.3 41.4% 59.7 47.1% 36.3% 44.9% 48.4 1Q16 1Q17 2014 2015 2016 18
Slide 19: Fubon Life: First year premium (FYP)
Fubon Life: First year premium (FYP) Contributions from traditional policies sales reached 83.7% FYP composition YoY NT$bn 1Q16 % 1Q17 % growth Traditional life: Regular-paid 24.9 41.7% 20.5 42.4% -17.7% Traditional life: Single-paid 22.9 38.3% 20.0 41.3% -12.7% Interest-sensitive annuity 7.4 12.4
Slide 20: Fubon Life: Value of new business (VNB) & FYPE
Fubon Life: Value of new business (VNB) & First year premium equivalent (FYPE) FYPE reached NT$20.9 billion in 1Q17, FYPE with balanced distribution channel NT$bn 29.4 VNB/FYPE ratio improved thanks to Traditional life: Regular-paid stable contributions from traditional 20.9 Traditional life: re
Slide 21: Fubon Life: Composition of investment income
Fubon Life: Composition of investment income Investment income mainly came from recurring revenue Capital gains performance decent NT$bn 1Q16 1Q17 YoY 2014 2015 2016 Recurring investment income 23.1 23.2 0.4% 88.7 101.0 106.1 Cash dividend income from equity investment 0.4 0.1 -72.3% 12.6 16.5 1
Slide 22: Fubon Life: Investment portfolio
Fubon Life: Investment portfolio Investment portfolio repositioned in response to market volatility Stabilizing recurring return by increasing overseas fixed income investment 2016/3/31 2016/12/31 2017/3/31 （NT$bn） Deposit and cash equivalent 195.4 6.8% 165.3 5.3% 142.8 4.6% Domestic fixed incom
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 3.2% 3.2% 19.9% 19.4% 55.2% 52.5% Others Corporate Asia & Other credit 57.6% 60.8% North America Financial Europe bond Government bond 38.8% 40.3% 19.3% 23.0% 2.8% 4.0% Mar-16 Mar-17 Ma
Slide 24: Fubon Life: Hedging composition
Fubon Life: Hedging composition Hedging cost & FX gain/loss FX position -101bps -203bps Naked 1Q16 1Q17 USD, Other CS+NDF cost 3.2% currencies, -36 1.3% -87 -65 Equities/ FX gain/loss & mutual net provision of funds , -116 11.0% FX reserve Recurring return 3.35% 3.14% 3.01% 2.47% Before hedge Curren
Slide 25: Fubon Life: Cost of liability & Breakeven point
Fubon Life: Cost of liability & Breakeven point Cost of liability improvement continues Breakeven point improvement due to improving cost structure Cost of liability Breakeven point 3.82% 3.80% 3.25% 3.24% 3.79% 3.19% 3.19% 3.78% 2.98% 3.76% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-1
Slide 26: Fubon Life: Investment performance
Fubon Life: Investment performance Improvement in unrealized position Unrealized outstanding Movement of unrealized gains from AFS assets NT$bn NT$bn AFS HTM+Inactive* Realized Dividend income & Dec-16 gains MTM Mar-17 0 (3.2) (3.2) (6.4) (6.4) (3.2) 15.8 12.6 Dec-16 Mar-17 Note: *before tax basis
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) 2016 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 Outstanding underwriting performance with decreasing net combined ratio Direct written premium by product Net combined ratio NT$bn 9.4 97.4% 8.1 9.6% 86.8% 9.9% 14.5% Others 35.6% 3.2
Slide 29: Agenda
Agenda Performance highlights of Fubon Financial Holdings Performance review by subsidiary • Taipei Fubon Bank • Fubon Life • Fubon Insurance • Fubon Securities • Fubon Bank (China) 2016 Embedded value of Fubon Life 29
Slide 30: Fubon Securities: Financial highlights
Fubon Securities: Financial highlights Franchise optimization to further enhance Market share & ranking market position Growth in wealth management business 2017Q1 Ranking 2016Q1 Ranking with diversified products Brokerage per branch* 0.122% 1 0.096% 2 NAV of ETF (NT$ mn) 65,000 2 55,900 2 Mar
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) 2016 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 5,318 67,367 64,150 5,033 1Q16 1Q17 1Q16 1Q17 Loans Deposits RMB$m Rediscount Loans (excluding rediscount) RMB$m 43,387 28,388 37,960 27,814 27,174 4,867 5,552 3,947 23,521 22,262 23,227 1Q16 1Q17 CASA 16% 21% ratio Mar-16 Dec-
Slide 33: Fubon Bank (China): Financial highlight
Fubon Bank (China): Financial highlight Net Profits NIM and loan-to-deposit spread RMB$m NIM loan-to-deposit spread 152 2.16% 1.77% 52 1.55% 1.39% 1Q16 1Q17 1Q16 1Q17 ROAA & ROAE NPL ratio & Coverage ratio ROAA ROAE NPL Coverage ratio 12.24% 0.86% 157.5% 165.1% 167.1% 3.91% 1.91% 1.60% 1.62% 0.31% 1
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) 2016 Embedded value of Fubon Life 34
Slide 35: Value Creation Summary
Value Creation Summary Unit: NTD billion Item 2015 2016 YoY Difference Impact Net Worth (Book Value) 182.8 213.5 16.8% 30.7 Adjusted Net Worth 183.2 211.7 15.6% 28.6 Inforce VIF (before CoC) 306.0 353.8 15.6% 47.8 Value Creation Cost of Capital (CoC) (84.0) (101.9) -21.3% -17.9 VIF (After CoC) 221.9
Slide 36: Movement Analysis: Adjusted Net Worth
Movement Analysis: Adjusted Net Worth Unit: NTD billion 28.7 5.3 6.9 9.1 (7.1) (14.0) 213.5 211.7 182.8 Statutory Net Unrealized Earning Others Statutory Net Special Reserve Adjust Market RE Appraisal Adjusted Net Worth@Dec. 31, capital gain Worth@Dec. 31, (FX and RE Value of (AFS) Value Worth@Dec.
Slide 37: Movement Analysis: Value of In-Force (before CoC)
Movement Analysis: Value of In-Force (before CoC) Unit: NTD billion 400.0 56.6 350.0 36.5 3.1 300.0 (0.7) (29.3 ) (1.8) 250.0 (16.6) 353.8 200.0 150.0 306.0 100.0 50.0 0.0 2015 VIF (before Model Change Existing Required return Data Change Eco. Assumption Non-eco. 2016 2016 VIF(before -50.0 CoC) busi
Slide 38: Movement Analysis: Value of New Business
Movement Analysis: Value of New Business Unit: NTD billion 60.0 19.8 58.0 56.0 54.0 52.0 50.0 48.0 0.1 46.0 44.0 42.0 (8.1) 40.0 38.0 36.0 34.0 32.0 30.0 28.0 (0.2) 47.3 26.0 24.0 22.0 20.0 18.0 35.6 16.0 14.0 12.0 10.0 Same basis : +55.2% 8.0 6.0 4.0 2.0 0.0 -2 .0 -4 .0 -6 .0 2015 VNB Sales Volume
Slide 39: Economic Assumption
Economic Assumption Year 2015 Year 2016 VIF VIF NTD Traditional Policies : NTD Traditional Policies : Year 2016 to Year 2052 at 3.86%~5.57%(2053+) Year 2017 to Year 2047 at 3.74%~5.57%(2048+) USD Policies : USD Policies : Year 2016 to Year 2040 at 5.15%~5.96%(2041+) Year 2017 to Year 2042 at 4.65%~5
Slide 40: Economic Assumption – VIF Portfolio Return
Economic Assumption – VIF Portfolio Return NTD Traditional 6.00% (Excluded ISA) 5.57% 5.50% 5.57% 5.00% 4.50% 3.86% 4.00% 3.50% 2016IF 2015IF 3.74% 3.00% 1 5 9 13 17 21 25 29 33 37 41 45 49 USD 6.50% 5.96% 6.00% 5.50% 5.15% 5.96% 5.00% 4.50% 4.65% 2016IF 2015IF 4.00% 3.50% 1 5 9 13 17 21 25 29 33 37
Slide 41: Economic Assumption – V1NB Portfolio Return
Economic Assumption – V1NB Portfolio Return NTD Traditional (Excluded ISA) 6.00% 5.56% 5.50% 5.55% 5.00% 4.50% 3.46% 4.00% 2016NB 2015NB 3.50% 3.30% 3.00% 1 5 9 13 17 21 25 29 33 37 41 45 49 USD 6.50% 5.96% 6.00% 5.50% 5.96% 5.00% 4.37% 4.50% 2016NB 2015NB 4.00% 4.01% 3.50% 1 5 9 13 17 21 25 29 33 3
Slide 42: Economic Assumption: Discount Rate
Economic Assumption: Discount Rate Fubon Life 2015/12/31 2016/12/31 Risk Free Rate 1.16%~3.5% 1.51%~3.5% Equity plus Country Risk Premium 6.50% 6.50% Beta 1.2 1.2 Calculated RDR 8.96%~11.30% 9.31%~11.30% VIF:11.0% VIF:11.0% RDR used in the valuation VNB:10.5% VNB:10.5% • RDR: According to CAPM (Capi
Slide 43: Cost of Capital
Cost of Capital Cost of Capital projection Project future cost of capital is based on future capital requirement maintaining regulatory minimum RBC level of 200% considering following factors: 1) Add 40% C3 risk capital of previous year for all traditional products every year (excludes investment-
Slide 44: Sensitivity Summary: Portfolio Return
Sensitivity Summary：Portfolio Return Unit: NTD billion VIF (before CoC) VIF -17.4% 17.1% -26.1% 25.8% 353.8 251.9 64.9 60.7 (61.5) (65.8) Return - 0.25% Base Return + 0.25% Return - 0.25% Base Return + 0.25% EV VNB -14.2% 14.0% -20.1% 19.5% 463.6 64.9 47.3 (65.8) (9.5) 9.2 Return - 0.25% Base Return
Slide 45: Sensitivity Summary: Risk Discount Rate
Sensitivity Summary：Risk Discount Rate Unit: NTD billion VIF (before CoC) VIF 10.5% -8.7% 17.4% -14.4% 353.8 251.9 37.3 43.8 (30.9) (36.2) RDR - 1% Base RDR + 1% RDR - 1% Base RDR + 1% EV VNB 9.4% -7.8% 21.4% -17.5% 463.6 43.8 47.3 (36.2) 10.1 (8.3) RDR - 1% Base RDR + 1% RDR - 1% Base RDR + 1% Note
Slide 46: Track record of Fubon Life's Value Creation
2016 Summary: Track record of Fubon Life’s Value Creation 單位: 新台幣十億元 Unit: NTD billion Value of New Business NB Margin (VNB / FYP) CAGR = 19% (4.0x) CAGR = 16% (3.2x) Value of In-Force Embedded Value CAGR = 26% (6.5x) CAGR = 25% (6.0x) 46
Slide 47: Investment Return: Assumption vs. Actual
Investment Return: Assumption vs. Actual 4.97 4.74 4.42 4.30 4.06 4.14 4.10 3.91 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 EV2016/2017 Note: 1.Track record shows higher actual return than EV assumption in general. 2.The inv
Slide 48: Independent Review by Deloitte Consulting
Independent Review by Deloitte Consulting Deloitte Consulting The Engagement • Deloitte Advisory (Hong Kong) Limited (“Deloitte Consulting”) were retained by Fubon Life to perform an independent review of the Embedded Value (EV) as at 31 December 2016 and the Value of One Year’s New Business (V1NB)
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 on the Risk Adjusted Discount Rates
Comments on the 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
Slide 51: Comments on Investment Return (1)
Comments on 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
Slide 52: Comments on Investment Return (2)
Comments on 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 r
Slide 53: Comments on Non-Economic Assumptions
Comments on 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 on EV and V1NB Results
Comments on 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
Slide 55: Thank you
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Slide 56: Fubon Financial - Financial summary
Fubon Financial - Financial summary NT$ millions, except for percentages 1Q17 4Q16 3Q16 2Q16 1Q16 2016 2015 YoY Income Statement Data Net interest income 27,091 27,293 26,280 26,422 25,781 105,777 94,965 11.4% Insurance income 84,821 60,820 75,704 79,434 78,425 294,382 264,088 11.5% Net gains (losse
Slide 57: Taipei Fubon Bank - Financial summary
Taipei Fubon Bank - Financial summary NT$ millions, except for percentages 1Q17 4Q16 3Q16 2Q16 1Q16 2016 2015 YoY Income statement data Interest income 10,676 10,286 10,382 10,818 11,223 42,709 46,647 -8.4% Interest expense (5,032) (4,758) (4,758) (4,962) (5,377) (19,855) (23,294) -14.8% Net interes
Slide 58: Fubon Life - Financial summary
Fubon Life - Financial summary NT$ millions, except for percentages 1Q17 4Q16 3Q16 2Q16 1Q16 2016 2015 YoY Income statement data First year premium 48,373 45,253 42,966 56,342 59,722 204,283 205,282 -0.5% Retained earned premium 125,882 110,595 114,461 122,708 120,844 468,608 440,297 6.4% Total inve
Slide 59: Fubon Insurance - Financial summary
Fubon Insurance - Financial summary NT$ millions, except for percentages 1Q17 4Q16 3Q16 2Q16 1Q16 2016 2015 YoY Income statement data Direct written premiums 10,541 9,384 9,161 10,330 9,297 38,172 35,016 9.0% Retention of earned premiums 7,884 7,610 7,451 7,286 7,230 29,577 27,139 9.0% Net income fr
Slide 60: Fubon Securities - Financial summary
Fubon Securities - Financial summary NT$ millions, except for percentages 1Q17 4Q16 3Q16 2Q16 1Q16 2016 2015 YoY Income statement data Brokerage commissions 778 659 712 655 701 2,728 3,044 -10.4% Net interest income 242 218 224 244 215 901 942 -4.3% Fee income 145 142 81 74 39 336 298 12.8% Net prin
Slide 61: Fubon Bank (China) - Financial Summary
Fubon Bank (China) - Financial Summary RMB millions, except for percentages 1Q17 4Q16 3Q16 2Q16 1Q16 2016 2015 YoY Income Statement Data Interest income 472 472 492 555 491 2,011 2,232 -9.9% Interest expense (399) (382) (401) (416) (418) (1,618) (1,925) -16.0% Net interest income 73 90 91 139 73 393
Slide 62: Review of Embedded Value as at 31 December 2016 and Value of One Year's New Business
9 May 2017 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 2016 and Value of One Year's New Business of Fubon Li
Slide 63: Definitions of adjusted net worth, VIF, appraisal value and V1NB
balance sheet plus several adjustment items. The purpose of the adjustments is to make the Adjusted Net Worth consistent with the projection of future profits and Cost of Capital; Value of In Force Business ("VIF"): this is equal to the present value as at valuation date of the future statutory pr
Slide 64: Scope of Deloitte review of the Adjusted Net Worth
Review of the approach used to determine the Adjusted Net Worth (“ANW”), in particular, the adjustments made in deriving the ANW, and any other adjustments made outside of the actuarial projection model; Review of the Company's analysis of change in the VIF between 31 December 2015 and 31 Decemb
Slide 65: Deloitte opinion on policy data and assumptions
Over 99% of the policy data has been included in the valuation and a zero value has been assigned to that part which was not included in the valuation; At the aggregate level, the model outputs for each major block of business that we reviewed appear to be consistent with the assumptions applied
Fubon Financial Holding — Q1 2017 Earnings Presentation on 6ix