The First Insurance Co., Ltd. 2017 Annual Report
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Stock ID: 2852 The First Insurance Co., Ltd. 2017 Annual Report Market Observation Post System: http://mops.twse.com.tw Company website: http://www.firstins.com.tw Published June 16, 2018 I. Spokesperson Name: C. S. Lin Title: Senior Vice President TEL: (02)2371-7890 (main line) E-mail: [email protected] II. Acting Spokesperson Name: Y. L. Chou Title: Vice President TEL: (02)2391-3271 (main line) E-mail: [email protected] III. Address and contact number of the headquarter, branches and offices (Please refer to page 5) IV. Name, address, and contact number of share administration agency: Name: Share Administration Department, Hua Nan Securities Co., Ltd. Address: 4F, No. 54, Section 4, Minsheng East Road, Taipei City TEL: (02)2718-6425 (main line) Website: http://www.entrust.com.tw V. Name of CPA and the name, address, and contact number of the accounting firm for the latest financial report: CPA: Yung-Fu Liu, Wan-Yi Liao Name of accounting firm: Deloitte Taiwan Address: 12F, No. 156, Section 3, Minsheng East Road, Taipei City TEL: (02)2545-9988 (main line) Website: http://www.deloitte.com.tw VI. Name of overseas exchange where securities are listed, and method of inquiry: None. VII. Company website: http://www.firstins.com.tw 1 Content One. Letter to Shareholders.................................................................................................................... 3 Two. Company Overview I. Date of establishment .................................................................................................................................... 6 II. Address and contact number of the headquarter, branches and offices ........................................................... 6 III. Company history ............................................................................................................................................. 8 Three. Corporate Governance Report I. Organization System: ................................................................................................................................... 114 II. Profiles of the Directors, President, Executive Vice Presidents, Vice Presidents, and the heads of the departments and branches ........................................................................................................................... 177 III. The pursuit of corporate governance ............................................................................................................. 38 IV. Information on auditing fees ..................................................................................................................... 7473 V. Information on replacement of CPA ............................................................................................................ 765 VI. If the Chairman, President, manager in charge of finance or accounting who has been employed by the CPA firm commissioned by the Company for the audit or its affiliates, disclose the names, occupational titles, and the duration of employment with the CPA firm or its affiliates .................................................. 765 VII. Changes in shareholding by Directors, Managers and dominant shareholders in the most recent year to the day this report was printed. ................................................................................................................... 765 VIII. Information on the relations among the top 10 shareholders of the Company by quantity of shareholding.787 IX. The quantity of shares of the same investee held by the business under direct or indirect control of the Company, the Directors, Supervisors, managers of the Company, and shall be included in the overall proportion in shareholding. ......................................................................................................................... 809 Four. Funding Status I. Source of capital ............................................................................................................................................ 80 II. Progress on planned use of capital: ............................................................................................................. 876 Five. Operational Overview I. Business activities ....................................................................................................................................... 898 II. Market and sales overview ............................................................................................................................ 91 III. Employee information in the last 2 years up till the publication date of this annual report ........................ 954 IV. Contribution to environmental protection ................................................................................................... 954 V. Labor-management agreement: ................................................................................................................... 954 VI. Major contracts ............................................................................................................................................ 965 Six. Financial Summary I. Summary balance sheet and statement of comprehensive income for the last 5 years ................................ 976 II. Financial analysis for the last 5 years .......................................................................................................... 987 III. Other information material to understanding the company's financial position, financial performance, cash flow and changes .............................................................................................................................. 1009 IV. Audit Committee's report on the review of the latest financial report: ........................................................ 100 V. Independent Auditor's Report ...................................................................................................................... 101 VI Latest audited consolidated financial statements ......................................................................................19291 VII. Any financial distress experienced by the Company or its affiliated enterprise and impacts on the Company's financial status in the last year up till the publication date of this annual report ..................19291 Seven. Review of financial position, business performance and risk issues I. Comparative analysis of financial position ..............................................................................................19392 II. Analysis of financial performance ...........................................................................................................19493 III. Cash flow variation analysis...................................................................................................................... 1943 IV. Material capital expenditures in the last year and impacts on business performance ................................ 1954 V. Causes of profit or loss incurred on investments in the last year, and any improvements or investments planned for the next year .......................................................................................................................... 1954 VI. Risk management issues in the last year up till the publication date of this annual report that were subject to evaluation: ................................................................................................................................ 1954 VII. Other important disclosures....................................................................................................................... 1976 Eight. Special Remarks I. Affiliated companies ................................................................................................................................. 1976 II. Private placement of securities in the last year up till the publication date of this annual report .............. 1976 III. Holding or disposal of the company's shares by subsidiaries in the last year, up till the publication date of this annual report ........................................................................................................................ 1976 IV. Other supplementary information.............................................................................................................. 1976 Nine. Any occurrence of event defined under Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act in the previous year up till the publication date of this annual report that significantly impacted shareholders’ equity or security prices ............ 1976 2 One. Letter to Shareholders Ladies and gentlemen: Welcome to the annual general meeting of The First Insurance Co., Ltd. In 2017, the global economy outgrew stagnation and increased trade activities that resulted in falling unemployment, rising consumer confidence, and expanding production in world's major economies. With the world's advanced economies leading the recovery throughout the first half, investment, trade and industrial production activities strengthened around the world, which brought transaction volume into the financial market and resulted in growth performance that was higher than what the market had anticipated. In terms of the domestic economy, increased electronics and machinery exports combined with rising international raw material prices had contributed to the significant growth in product and service exports. In the meantime, private spending increased while price