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The global economy was still affected by COVID-19 pandemic in 2021. With economy recovering situation varies among countries, the overall economy growth rate is projected to be 5.9%. During the first and second quarter when the pandemic was ebbing in Taiwan, export performed well and therefore the economic growth rate improved. However, the rebound of COVID-19 in the third and fourth quarter caused the growth rate to decline. Directorate-General of Budget Accounting and Statistics of Executive Yuan released the economic growth rate of 2021 to be 6.45%. Total amount of domestic gross premium income in 2021 reaches NT$20.74 billion, increases NT$19.3 billion and 10.3% higher than that of last year. Motor insurance increases by NT$7.3 billion and 7.2% higher than that of last year. Among the Health insurance products, the best seller in 2021 was the pandemic-related products which brought NT$8.7 billion and over 90% growth to the market.
The claim payments of the property insurance industry in 2021 amounted to NT$95 billion, increased 5.7% comparing to the previous year. Most of the claim payment increase was for Fire insurance and Miscellaneous insurance. Motor insurance improved slightly by 0.6% due to less travel made during the COVID-19 pandemic period.
For 2021, our income before tax was NT$1.45 billion, net income was NT$1.29 billion, and direct written premiums were NT$9.124 billion, 9.0% higher than the previous year. Our outstanding car dealers, sales representatives, and banking channels contributed a 9.1% increase in the voluntary motor insurance business. Property and liability insurance, consisting of commercial fire insurance, engineering insurance and liability insurance, including large scale underwriting cases and expanding mid-to-small business, was increasing 4.5% in total. Health and accident insurance grew 30.7% since the pandemic-related products have been sold well. Residential insurance grew 2.2% due to the lack of new business. Marine and cargo insurance grew 10.8% due to the prosperous exports and increasing cargo charges. Loss ratio of personal line business remained stable. Loss ratio of commercial line business was affected by the increased payments of fire insurance and transportation insurance, as well as claims related to Taroko Train Derailment. As a result, combined ratio increased from 90.69% in 2020 to 92.3%. Net underwriting income before tax amounted to NT$322 million.
Business results and management strategies are explained below:
I. Gross premium income of all lines
Amounts in Thousands NTD
Lines 2021 2020 Growth+(-) Change in %
Voluntary Motor 4,433,693 4,063,461 370,232 +9.1%
Compulsory Motor 860,902 813,839 47,063 +5.8%
Residential Ins 333,022 325,838 7,184 +2.2%
A&H (PA & Health) 758,652 580,625 178,027 +30.7%
Property & Liability 2,114,002 2,023,011 90,991 +4.5%
Marine Ins. 624,386 563,607 60,779 +10.8%
Total 9,124,657 8,370,381 754,276 +9.0%
Lines 2021
Voluntary Motor 4,433,693
Compulsory Motor 860,902
Residential Ins 333,022
A&H (PA & Health) 758,652
Property & Liability 2,114,002
Marine Ins. 624,386
Total 9,124,657
Lines 2020
Voluntary Motor 4,063,461
Compulsory Motor 813,839
Residential Ins 325,838
A&H (PA & Health) 580,625
Property & Liability 2,023,011
Marine Ins. 563,607
Total 8,370,381
Lines Growth+(-)
Voluntary Motor 370,232
Compulsory Motor 47,063
Residential Ins 7,184
A&H (PA & Health) 178,027
Property & Liability 90,991
Marine Ins. 60,779
Total 754,276
Lines Change in %
Voluntary Motor +9.1%
Compulsory Motor +5.8%
Residential Ins +2.2%
A&H (PA & Health) +30.7%
Property & Liability +4.5%
Marine Ins. +10.8%
Total +9.0%
Classification:
  • Motor insurance is related to “motor” as a subject matter insured, including voluntary motor insurance, allied personal accident endorsement and compulsory motor insurance.
  • Residential insurance is related to “household” as a subject matter insured, including residential fire insurance, comprehensive household insurance, residential earthquake insurance, long-term fire insurance and comprehensive pet insurance.
  • A&H insurance is related to “person” as a subject matter insured, including personal accident insurance, health insurance and comprehensive personal insurance.
  • Residential insurance is related to “household” as a subject matter insured, including residential fire insurance, comprehensive household insurance, residential earthquake insurance, long-term fire insurance and comprehensive pet insurance.
  • Property and liability insurance is related to “corporate” as a subject matter insured, including commercial & industrial fire insurance, liability insurance, engineering insurance and others insurance.
  • Marine insurance is related to “transportation vehicle or commodity” as a subject matter insured, including cargo insurance, marine hull insurance, aviation insurance and fishing vessel insurance.
II. Budget implementation: not applicable since the official financial budget was not released
III. Income and Expenditure in 2021:
Operating RevenuesNT$7,750,423,000
Operating Costs and ExpensesNT$6,293,075,000
Operating IncomeNT$7,750,423,000
Operating Costs and ExpensesNT$1,457,348,000
Non-Operating LossNT$7,750,423,000
Profit before Income TaxNT$1,455,196,000
Net ProfitNT$1,292,664,000
IV. Profitability in 2021:
Return on Assets6.08%
Return on Equity16.68%
Profit before Tax to Capital48.93%
Earnings per ShareNT$4.35
V.Business Management Strategies
Adhering to our corporate philosophy of positive and sustainable management, two main strategic objectives for 2022 business budget are stated as below:

1.Solid Profitability
We always pursue stable profits. In 2022, we will continue to improve our earning quality and profit level by strengthening company fundamentals. Our targeted profit before income tax for 2022 is NT$812 million and targeted net profit is NT$705 million.

2.Growth in Quality Business
Under the goal of profiting from quality business, we aim to expand our business scale and promote our market ranking in the industry at the same time. Considering the internal and external business factors, we budgeted our gross premium income to increase by 9.21% for 2022 to NT$9,965 million.