The Life Insurance Associationof of The Republic of China

    2004 Life Insurance Business in Taiwan



(1)Population
@According to the household registration data, the total population of Taiwan
@ at the end of 2004 amounted to 22.69 million. The crude death rate and the
@crude birth rate stood at 0.60% and 0.96% respectively.

@The population pyramid at the end of 2004 showed that : Aged population
@(65 years and over) accounted for 9.48%, childhood population (under 15 years)
@ 19.34% and the productive age (15-64 years) 71.19%. The dependency ratio was
@40 and the sex ratio was 104.

(2)National Income
@In 2004 the national income amounted to US$279.46 billion in market prices
@or US$277.40 billion in real terms and per capita income reached US$12,381
@in market price.

@The average size per household in 2003 was 3.53 persons, among which 2.60
@persons were adults and 0.93 persons were minors. Average available income
@per household reached US$26,381 and average savings per household was
@US$5,898. The average propensity to saving was 24.42%.

(3)Type of Insurance
@In accordance with the article 13 of Insurance Laws, personal insurance covers
@life, accident, health and annuity insurance. The authority promulgated the
@relative regulation of individual annuity on July 1997.At present, the annuity
@is mainly focused on the immediate and defer annuity products.


(4)Business Results
@In 2004, the total premium income amounted to US$39.2 billion, up 15.52% over
@the preceding year. People spent about 21.32% of their disposable income in 2004
@for personal insurance. Of the total premium income, the share of life insurance
@ was 73.0%, accident 4.4%, health 10.7%,and annuity 11.8%


PREMIUM INCOME
@@@@@@@@@AmountGNT$ million
@ 2004 2003 2004
G.R.%
Individual 1,286,064 1,110,705 15.79
Life 748,119 864,722 9.64
Accident 48,703 52,045 -6.42
Health 134,238 120,321 11.57

Annuity

155,004 73,617 110.56
Group 22,425 21,947 2.18
Life 6,896 6,837 0.86
Accident 9,188 9,509 -3.39
Health 6,341 5,601 13.22

Annuity

Life Total 955,015 871,559 9.58
Accident Total 57,891 61,554 -5.95
Health Total 140,579 125,922 11.64
Annuity Total 155,003 73,617 110.56
Grand Total 1,308,489 1,132,652 15.52

@G.R:Growth Rate

@@@Exchange Rates: 2003:US$1=NT$34.42

                                       2004:US$1=NT$33.42


At year-end of 2004, total life insurance in force registered 33,635 thousand
policyholders. This figure compared with the total population, there were 1,663
persons having individual life policy or covered by group life insurance per
1,000 persons. The ratio of life insurance inforce to national income was 310%.

For the year 2004, benefit payments to policyholders totaled NT$480,584 million
or US$14,380 million. This amount increased by 23.15% over previous year. During
the year 2004, the total number of death payments was 77,398 cases, accounting
for 57.29% of total number of death in Taiwan area, with a sum of NT$51,425
million. The average amount of death payments to beneficiaries was NT$664,423
or US$19,881

@

BENEFIT PAYMENTS TO POLICYHOLDERS
@@@@@@@@@@Amount : NT$ million
@ 2004 2003 2004
G.R. %
Maturity 140,974 108,347 30.11
Death 51,425 48,531 5.96
Disability 4,094 3,953 3.57
Medical Care 45,266 38,548 17.43
Annuity 532 412 29.13
Others 238,293 190,462 25.11
Total 480,584 390,253 23.15

Others includes Surrender, Maternity, Funeral Allowance, Survivor Benefit etc.


Assets of the industry in 2004 had attained NT$5,501,020 million or US$164,603
million. The major items of total assets showed that: Securities accounted for
65.78%, Mortgages 8.89%, Investments 4.19%, Policy Loan 7.80%. At the end
of 2004, policy reserves of the industry amounted to NT$4,864,465 million or
US$145,555 million, accounting for 88.43% of the total assets or 92.60% of the
total liabilities. The total receipts of the industry were NT$2,019,378million or
US$60,424 million and the total expenditures were NT$2,000,498 million or
US$59,859 million.

DISTRIBUTION OF ASSETS
@@@@@@@@@@Amount : NT$ million
@ 2004 2003 2004
G.R. %
Cash & Deposits 201,453 184,857 8.98
Securities 3,618,318 2,871,722 26.00
Mortgages 488,935 506,531 -3.47
Investments 230,368 221,780 3.87
Policy Loans 429,120 430,583 -0.34
Fixed Assets 57,084 56,977 0.19
Other Assets 475,741 355,537 33.81
Total 5,501,020 4,627,987 18.86



SUMMARY OF INCOME AND EXPENDITURE
@@@@@@@@@@@@@Amount : NT$ million
@ 2004 2003 2004
G.R. %
Net Operating Income -114.398 -91,130 -25.53
Operating Revenues 1,770,665 1,529,010 15.80
Operating Expenses 1,885,063 1,620,140 16.35
Net Financial Income 224,072 218,735 2.44
Financial Receipts 227,382 220,436 3.15
Financial Expenses 3,310 1,701 94.63
Net Misc. Income -6,042 9,947 -160.74
Depreciation 9,287 7,940 16.96
Administrative Expenses 75,464 78,283 -3.60
Profit for the year 18,881 51,329 -63.22

@


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