2. Business and Income Structure

2.1 Company Development

The company commenced in 1948. Then, the company changed its name to Nam
Seng Insurance Public Company Limited in 1993 and was granted to be
listed on the Stock Exchange of Thailand in 1995.

At present, the company has the authorized share capital of Baht 200
million. The major shareholders are classified as: NS Alliance Company
Limited (28.75%), HIH Overseas Holdings Limited (24.46%), Pokkim Company
Limited (17.25%) and IFCT (14.78%)

Major change in shareholding structure of over 10 % from the past

+---------------------+---------+-----+---------+-----+---------+----+
| Shareholders' Name  | March   |     | April   |     | April   |    |
|                     | 12,     |     | 10,     |     | 10,     |    |
|                     | 1998    |     | 2000    |     | 2001    |    |
+---------------------+---------+-----+---------+-----+---------+----+
|                     | No. of  | %   | No. of  | %   | No. of  | %  |
|                     | Share   |     | Share   |     | Share   |    |
|                     | held    |     | held    |     | held    |    |
|                     | (       |     | (       |     | (       |    |
|                     | Shares) |     | Shares) |     | Shares) |    |
+---------------------+---------+-----+---------+-----+---------+----+
| 1.  N.S.Alliance    | 3,      | 28  | 3,      | 28  | 3,      | 2  |
|     Co., Ltd.       | 996,710 | .75 | 996,710 | .75 | 996,710 | 8. |
|                     |         |     |         |     |         | 75 |
+---------------------+---------+-----+---------+-----+---------+----+
| 2.  HIH Overseas    | 3,      | 24  | 3,      | 24  | 3,      | 2  |
|     Holdings        | 400,000 | .46 | 400,000 | .46 | 400,000 | 4. |
|                     |         |     |         |     |         | 46 |
| Limited1/           |         |     |         |     |         |    |
+---------------------+---------+-----+---------+-----+---------+----+
| 3.  Pokkim Co.,Ltd  | 2,      | 17  | 2,      | 17  | 2,      | 1  |
|                     | 398,027 | .25 | 398,027 | .25 | 398,027 | 7. |
|                     |         |     |         |     |         | 25 |
+---------------------+---------+-----+---------+-----+---------+----+
| 4.  IFCT            | 2,      | 15  | 2,      | 14  | 2,      | 1  |
|                     | 132,463 | .34 | 054,963 | .81 | 054,563 | 4. |
|                     |         |     |         |     |         | 78 |
+---------------------+---------+-----+---------+-----+---------+----+
| Total               | 11,     | 85  | 11,     | 85  | 11,     | 8  |
|                     | 927,200 | .80 | 849,300 | .27 | 849,300 | 5. |
|                     |         |     |         |     |         | 24 |
+---------------------+---------+-----+---------+-----+---------+----+

Note: 1/ HIH Overseas Holdings Ltd. was previously named HIH Winterthur
Overseas Holdings Ltd.

2/ From 12 March 1998 until 10 April 2000, there is no significant
change of the shareholder

structure.

2.2 Company, its subsidiaries and affiliates company

There is no subsidiary or affiliate company

2.3 Income structure

Total gross written premiums in 2001 totalled Baht 691.44 million, an
decrease of 19.19% over 2000, preliminary profit amounted to Baht 130.02
million, a decrease of 16.45% over 2000, and income on investment
amounted to Baht 49.29 million, a decrease of 0.55% over 2000. The net
profit increased from Baht –10.71 million in 2000 to Baht 1.24 million
in 2001.

Results of The Individual Classes of Business

Motor

Total gross written premiums in 2001 amounted to Baht 532.20 million, a
decrease

of 27.72% over 2000, losses incurred and losses adjustment expenses
amounted to Baht 426.93 million, a decrease of 10.91% over 2000, and
income on underwriting amounted to Baht 93.45 million, a decrease of
23.84% over 2000.

Fire

Total gross written premiums in 2001 amounted to Baht 67.22 million, an
increase of 0.83% over 2000, losses incurred and losses adjustment
expenses amounted to Baht 4.57 million, an increase of 41.97% over 2000,
and income on underwriting amounted to Baht 22.71 million, a decrease of
7.10 over 2000.

Miscellaneous

Total gross written premiums in 2001 amounted to Baht 88.43 million, an
increase of 78.99% over 2000, losses incurred and losses adjustment
expenses amounted to Baht 12.64 million, an increase of 92.79% over
2000, and income on underwriting amounted to Baht 13.15 million, an
increase of 62.33% over 2000.

Marine 

Total gross written premiums in 2001 amounted to Baht 3.59 million, an
increase of 11.39% over 2000, losses incurred and losses adjustment
expenses amounted to Baht 0.52 million, a decrease of 36.33% over 2000,
and income on underwriting amounted to Baht 0.71 million, an increase of
96.67% over 2000.

Investment

The Company’s investment funds were attributable to investment in
securities amounting Baht to 650.41 million, cash and deposits at
financial institutions amounting to Baht 144.75 million, and net loan
amounting to Baht 94.54 million. The income on investment amounted to
Baht 49.29 million, an increase of 0.55% over 2000.

Income Structure of Nam Seng Insurance Plc.

(Unit: Million Baht)

+-----------------------+------+-------+------+-------+------+------+
| Item                  | 2001 | %     | 2000 | %     | 1999 | %    |
+-----------------------+------+-------+------+-------+------+------+
| Gross written premium |      |       |      |       |      |      |
| :                     |      |       |      |       |      |      |
+-----------------------+------+-------+------+-------+------+------+
| - Fire                | 6    | 8.94  | 6    | 7.32  | 7    | 8.24 |
|                       | 7.22 |       | 6.66 |       | 0.35 |      |
+-----------------------+------+-------+------+-------+------+------+
| - Motor               | 53   | 70.75 | 73   | 80.88 | 69   | 8    |
|                       | 2.20 |       | 6.31 |       | 1.19 | 0.91 |
+-----------------------+------+-------+------+-------+------+------+
| - Marine              | 3.59 | 0.48  | 3.22 | 0.35  | 1.55 | 0.18 |
+-----------------------+------+-------+------+-------+------+------+
| - Miscellaneous       | 8    | 11.75 | 4    | 5.43  | 3    | 4.30 |
|                       | 8.43 |       | 9.41 |       | 6.70 |      |
+-----------------------+------+-------+------+-------+------+------+
| Subtotal              | 69   | 91.91 | 85   | 93.98 | 79   | 9    |
|                       | 1.44 |       | 5.59 |       | 9.79 | 3.62 |
+-----------------------+------+-------+------+-------+------+------+
| Income on investment  | 4    | 6.63  | 4    | 5.40  | 5    | 6.25 |
|                       | 9.86 |       | 9.14 |       | 3.37 |      |
+-----------------------+------+-------+------+-------+------+------+
| Others incomes        | 1    | 1.46  | 5.63 | 0.62  | 1.10 | 0.14 |
|                       | 0.98 |       |      |       |      |      |
+-----------------------+------+-------+------+-------+------+------+
| Total                 | 75   | 1     | 91   | 1     | 85   | 10   |
|                       | 2.27 | 00.00 | 0.36 | 00.00 | 4.26 | 0.00 |
+-----------------------+------+-------+------+-------+------+------+

.