中央再保險公司 (2851) 2023Q2 法說會簡報

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Company Overview

基本資訊

• 公司名稱: 中央再保險公司 (Central Re)
• 股票代號: 2851
• 法人說明會日期: Oct. 27, 2023
• 標語: Your reliable partner
• 實收資本額: 新台幣80億389萬元
• 員工人數: 179人
• 營運地點: 台北市南京東路二段53號12樓

重要紀事

• 1968年10月31日: 設立,國內唯一國營之專業再保險公司。
• 2000年7月: 股票正式掛牌上市。
• 2002年7月: 國營轉為民營,長榮集團為最大股東。
• 2016年1月1日: 國際保險業務分公司正式開業。

股東結構 (2023年4月2日,股東常會停止過戶日)

信用評等

Business Segments

營業內容 承受國內、外保險業之財產及人身再保險業務。

經營險種 | 類別 | 險種 Central Re (中央再保險公司) is a prominent player in the reinsurance sector, established on October 31, 1968, as Taiwan's sole state-owned professional reinsurance company. It transitioned to private ownership in July 2002, with the Evergreen Group becoming its largest shareholder. The company's shares were officially listed in July 2000, and it further expanded its operations by opening an International Insurance Business Branch on January 1, 2016.

As of October 27, 2023, Central Re has a paid-in capital of NT$8.0389 billion and a workforce of 179 employees. Its operating location is at 12F, No. 53, Sec. 2, Nanjing E. Rd., Taipei City. The company maintains strong credit ratings, with an "A" rating and a "Stable" outlook from both A.M. Best (confirmed August 10, 2023) and S&P Global (confirmed February 20, 2023), and a "twAA+" rating with a "Stable" outlook from Taiwan Ratings (confirmed January 18, 2023).

Shareholding Structure (as of April 2, 2023)

Market Position (2022)

Central Re holds a significant market share in Taiwan's reinsurance market.

Financial Highlights

Operating Performance (Unit: NT$ 100 million)

*Underwriting profit = Operating Revenue - Net Investment Income/Loss - Operating Costs - Operating Expenses.

Capital Base (Unit: NT$ 100 million)

*Special reserves under liabilities, excluding compulsory motor insurance.

Asset Scale (Unit: NT$ 100 million)

Asset Allocation (as of 2023/6/30)

*Cash and cash equivalents: In addition to the corresponding items in the financial statements, also include time deposits of other financial assets and margin for futures transactions of other assets.

Key Financial Performance Indicators

*EPS is calculated retrospectively adjusted for capital increases over the years.

Dividend Policy

• General Policy: According to the company's articles of incorporation, if there is a surplus in the annual settlement, after deducting taxes, it shall first be used to cover previous years' losses. Then, 20% of the remaining amount shall be set aside as legal reserve, and special reserve shall be appropriated or reversed as stipulated. After adding the accumulated undistributed earnings from previous periods, the board of directors shall propose an earnings distribution plan, which will be distributed after being approved by the shareholders' meeting.
• Distribution Method: Shareholder dividends are distributed through a combination of cash dividends and stock dividends, with cash dividends accounting for at least 50% of the total dividends.

Dividend Distribution (NT$/share) for the Past Five Years

Products & Technologies

Reinsurance Premium Income by Type (as of Q2 2023)

Reinsurance Premium Income by Domestic/Foreign (as of Q2 2023)

Clients & Markets

Industry Status and Development

• Domestic Insurance Market:
  • There are 52 domestic insurance companies: 23 P&C insurers, 26 life insurers, and 3 reinsurers.
  • Besides Central Re, the domestic reinsurance market also includes two foreign reinsurers: Cologne Re and American Re, along with major global reinsurers.
  • Reinsurance is an international industry.
• Global Reinsurance Market:
  • Transitioned to a seller's market due to:
    • Decreased capital level (from USD 570B in 2021 to USD 530B in 2022).
    • Inflation pushing up premium rates, rising interest rates, and capital market volatility affecting reinsurers' net worth and profitability.
    • Climate change risks and higher-than-average catastrophe losses impacting many large international reinsurers' operating performance.
  • Property insurance contract terms and rates are favorable to reinsurers.
  • Non-property insurance contract terms have tightened, but rate adjustments are relatively smaller.
  • Global market renewals in June 2023 maintained the seller's market trend from the end of last year.

Product Development Trends

• Domestic P&C Insurance Market:
  • As of June 2023, overall written premiums increased by 7.9% year-on-year, mainly driven by motor insurance. Fire, catastrophe, and liability insurance also contributed significantly to market growth.
  • The trend of P&C insurance companies increasing their retention remains unchanged.
• Domestic Life Insurance Market:
  • Demand for protection-type life insurance products and elderly care/pension insurance products is gradually increasing, driven by regulatory authorities' promotion of insurance protection policies and demographic trends (aging population, declining birth rates).

ESG / Sustainability

The Company has continuously ranked in the top 20% of corporate governance evaluations for listed companies since the 1st session.

Corporate Governance

• Protecting Shareholder Rights:
  • Early disclosure of shareholder meeting materials (Chinese and English meeting notices, handbooks, and annual reports).
  • Early convening of shareholder meetings.
  • Directors' participation in shareholder meetings.
  • Implementation of e-voting.
  • Establishment of a stakeholder communication platform.
• Strengthening Board Operations:
  • Board diversity.
  • Independence of board members.
  • Establishment of functional committees.
  • Board performance evaluation.
  • Regular training for directors.
• Enhancing Information Transparency:
  • Holding investor conferences.
  • Early announcement of periodic financial reports.
  • Company website disclosure of relevant information (financial, business, corporate governance).
  • English information disclosure.
• Implementing Sustainable Development:
  • Preparation of sustainability reports and obtaining third-party verification.
  • Establishment of a Sustainable Development Committee as a dedicated promotion unit.
  • Promotion of a dedicated unit for ethical management.
  • Employee welfare and human rights protection.
  • Climate change risks and responses.

Sustainable Development

• Environmental (E):
  • Referencing TCFD to incorporate climate change risks and response measures into operational strategy planning and decision-making processes.
  • Ad-hoc business will generally not undertake high-pollution, high-carbon emission enterprises such as coal-fired power plants.
  • Treaty business is also gradually adjusting its business structure in the portfolio to align with ESG trends.
  • Implementation of ISO14064-1:2018 greenhouse gas inventory and verification operations.
• Social (S):
  • Support for policy-based insurance operations.
  • Emphasis on responsible investment, diligent governance.
  • Responding to public welfare, giving back to society.
  • Focus on talent development and employee welfare.
• Governance (G):
  • Implementing corporate governance.
  • Establishment of a Sustainable Development Committee under the Board of Directors.
  • Practicing ethical management.
  • Rigorous risk management.
  • Regulatory compliance.
  • Respecting stakeholder rights.
  • Emphasis on information security and personal data protection.
  • Cooperating with the promotion of the first Sustainable Finance Evaluation.
  • Preparation of Chinese and English versions of sustainability reports.

Outlook & Strategy

Competitive Advantages

• A.M. Best (A Stable):
  • Good operating performance, with positive underwriting profit and investment income.
  • Stable market position in Taiwan and diversified business portfolio.
  • Strong risk-adjusted capital.
  • Adequate risk management capabilities and control mechanisms.
• S&P Global, Taiwan Ratings (A Stable):
  • Stable domestic market position.
  • Very strong capital strength.
  • Diversified and prudent investment structure.
  • Adequate enterprise risk management and strong risk control.
  • Strong liquidity structure.

Development Strategies Goal: To build an overall business portfolio that combines risk management with stable profitability.

Operating Principles:

• Promoting Sustainable Development
• Emphasizing Regulatory Compliance
• Strengthening Talent Development
• Deepening Risk Management
• Implementing Corporate Governance

Detailed Strategies:

• Domestic Reinsurance Business:
  • Consolidate market position, deepen cooperation with the market.
  • Optimize property insurance underwriting conditions, strengthen the development of non-catastrophe insurance types.
  • Prudently allocate underwriting capacity, control accumulated exposure, optimize retrocession arrangements, and improve capital utilization efficiency.
• International Reinsurance Business:
  • Profit-oriented, continuously improve business quality, carefully select business with adequate risk-return trade-offs.
  • Enhance transparency of business risks, strictly control accumulated exposure and catastrophe risks in various regions.
  • Pricing will adequately reflect risk costs from inflation and climate change factors.
• Fund Utilization Business:
  • Continuously adhere to a stable investment strategy, supplemented by rigorous risk control, to pursue safe and balanced stable returns, supporting the sustainable development of reinsurance business.

Additional Data

Market Sales & Marketing Overview - Company's Reinsurance Premium Income (Unit: NT$ 100 million)

Contact Information

• Spokesperson:
  • Name: 鍾志宏 (Chung Chih-Hung)
  • Title: 總經理 (President)
  • Phone: (02) 2541-5156
  • Email: peterchung@centralre.com
• Acting Spokesperson:
  • Name: 張允寧 (Chang Yun-Ning)
  • Title: 財務本部 副總經理 (VP, Finance Department)
  • Phone: (02) 2511-5211 Ext. 250
  • Email: catherinechang@centralre.com
• Investor Relations:
  • Contact Person: 許自成 (Hsu Tzu-Cheng)
  • Title: 監理本部 協理 (Associate VP, Supervisory Department)
  • Phone: (02) 2511-5211 Ext. 215
  • Email: allenhsu@centralre.com