Ms&ad Insurance Group Holdings, Inc. · TSE:8725
Ms&ad Insurance — Investor Presentation (November 2020)
33 slides from Ms&ad Insurance's investor presentation, Nov 27, 2020
Slide 1: Fiscal 2020 Second Information Meeting
Fiscal 2020 Second Information Meeting November 27, 2020
Slide 2: Main Points of Today's Presentation
Main Points of Today's Presentation Medium-to-Long Term We will seize on business opportunities and achieve growth based on expected changes in society in the Growth Strategy medium to long term. We aim to become a corporate group that supports a resilient and sustainable society on a global scale.
Slide 3: Ⅰ. Medium-to-Long-Term Growth Strategy
Ⅰ. Medium-to-Long-Term Growth Strategy ~Growth for the next 10 years~ 1. World in the Medium to Long Term 2. MS&AD’s Features 3. MS&AD’s Aspirations 4. Medium-to-Long-Term Growth Strategy MS&AD Insurance Group Holdings, Inc.
Slide 4: 1. World in the Medium to Long Term
1. World in the Medium to Long Term ～Risks and opportunities born in the rapidly changing society～ Shift in the center Population in Asia*1 Demographic of the world economy change 2015: 4.39 billion Aging population Widening regional inequalities Domestic consumption Budget for regional 2030: 4.92 b
Slide 5: 2. MS&AD's Features: Pioneer in New Business Areas
2. MS&AD’s Features: Pioneer in New Business Areas Leveraging the Group's Diversity to Lead the Industry in opening New Business Areas 「Risk」 ×「Technology」 ＝ RisTech Telematics Mobility Insurance 2019 Mitsui Sumitomo Primary Life Insurance New Business 2004 2018 Model to Foreign Currency Annuity Ins
Slide 6: 3. MS&AD's Aspirations
3. MS&AD’s Aspirations A corporate group that supports a resilient and sustainable society on a global scale Our products and services will be incorporated into people’s lives and business activities. When risks are about to occur, proactive warnings and risk avoidance advice will be issued, and o
Slide 7: Earnings Growth
Earnings Growth (¥bn) 10.0% CSV × DX 7.9% 8.0% 6.8% 6.1% 300.0 5.9% 5.2% 5.0% 4.5% 3.7% 233.1 213.7 210.0 189.8 155.7 147.5 0.8% 94.8 105.1 87.4 14.5 -5.6% Vision 2021 Next Plan After Next Plan -87.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 - 2025 - 202x - 203x (Forecast) (Target)
Slide 8: CSV x DX
4. Medium-to-Long-Term Growth Strategy CSV × DX ～In Japan, Asia and across the world ～ Seven Key Issues For Resilient and Digital Technology Sustainable Society Create a Deal new Safer mobility risks Society Support Strive for Contribute to “good health resilient Climate change Big Data AI and commu
Slide 9: CSV x DX Growth Strategy
CSV× DX Growth Strategy MS&AD’s Strengths CSV × DX Growth Strategy Broader partnerships Innovative products and Largest domestic network Diverse services of agents needs Largest domestic Channels and sales methods CSV × DX Various customer base transformation data Diverse Group Synergies (various Gr
Slide 10: Innovative Products and Services: Overview
CSV× DX Growth Strategy: (1) Innovative Products and Services (i) Overview Shifting from insurance that involves simply receiving a claim and paying benefits to a form of insurance where we find and convey risks, prevent risks from occurring, minimize impact when risks do occur, and support a swift
Slide 11: Innovative Products and Services: Examples of Implementation
CSV× DX Growth Strategy : (1) Innovative Products and Services (ii) Examples of Implementation Telematics-based automobile insurance encourages safe driving and reduces accidents. When an accident does occur, the driving data and AI can be utilized to quickly, accurately and seamlessly provide servi
Slide 12: Transformation of Sales Channels and Methods: Sales Channels
CSV× DX Growth Strategy : (2) Transformation of Sales Channels and Methods (i) Sales Channels We will provide products and services that suit each individual customer and strengthen the management foundations of agents. Conventional sales channels Propose and sell highly versatile Insurance Examples
Slide 13: Transformation of Sales Channels and Methods: Sales Methods
CSV× DX Growth Strategy : (2) Transformation of Sales Channels and Methods (ii) Sales Methods Tie-up with new market holders emerging with the evolution of digitalization to seamlessly support customers’ daily lives and corporate activities. Examples of implementation (Built-in Connect) Tie-up with
Slide 14: Creation of New Businesses: Expanding Fields of Business
CSV× DX Growth Strategy : (3) Creation of New Businesses (i) Expanding Fields of Business We will expand into new fields of business that achieve CSV×DX in step with social changes. The advance of new automotive technologies <Example> TIMS-type data business in coordination with Toyota’s mobility
Slide 15: Creation of New Businesses: Examples of Implementation
CSV× DX Growth Strategy : (3) Creation of New Businesses (ii) Examples of Implementation RisTech Telematics Data Business in the USA Smart mobility We will combine MS&AD’s automobile accident data with Telematics Data Analysis 1 automobile data accumulated by digital tachographs Storage of all DCM
Slide 16: Enhancing Digital-Savvy Human Assets
CSV× DX Growth Strategy : Initiatives Supporting Growth: Enhancing Digital-Savvy Human Assets Digital Innovation Challenge Program Approx. 1,200 ideas Promoting the Digitalization of the MS&AD Group were submitted Group- 18 advanced digital technologies wide building the future × Promising growth ma
Slide 17: Global Expansion: Medium-to-Long-Term Strategies for International Business
Global Expansion: ～ Medium-to-Long-Term Strategies for International Business ～ Earnings outlook for the international Mid- to Long-term aspirations business After overcoming the temporary impacts of COVID-19 Until 2023 Toward further in FY 2020, earnings are expected to recover growth track signifi
Slide 18: Global Expansion: Medium-to-Long-Term Strategies for International Business
Global Expansion: ～ Medium-to-Long-Term Strategies for International Business ～ • We will strengthen and stabilize existing business bases. • We will transform into a growth model based on CSV×DX to get on track for further growth. Business Investment USA Asia Others CSV x DX DX-driven market Collab
Slide 19: Global Expansion: Digitalization Promotion Bases
Global Expansion: Digitalization Promotion Bases UK GDH (London) BIG Mind Foundry MS&AD USA Israel Japan Ventures GDH AIS GDH GDH (Tel Aviv) USA China (Tokyo) (USA) DIFI FinTLV/SOSA ADIC TIMS Singapore GDH （SP） AIS Asia Bases to promote DX/DI solutions by taking advantage of characteristics of each
Slide 20: Global Expansion: Examples of DX Initiatives Overseas (DG)
Global Expansion: Examples of DX Initiatives Overseas (DG) Innovative Transformation of Sales Creation of Products and Services Channels and Methods New Business Example (1) Sophistication of Example (3) Customer Data Example (5) Contributing to Underwriting (MS Amlin) Analysis (Philippines) realiza
Slide 21: Strategic Partnership with Hippo
Global Expansion: ~Example of DX Initiatives：Strategic Partnership with Hippo~ • Forming a strategic partnership with Hippo, the U.S. InsurTech company, to realize solutions to social issues on a global basis utilizing advanced digital technologies. Founded：2015 Creation of advanced (Started insuran
Slide 22: Business Style Reforms
Business Style Reforms Additional expense reductions Cost reductions Cost reduction effects totaling around In addition 70 billion yen Approx. 2-point ¥70.0 billion R&D investment reduction in the equivalent expense ratio for Renovation of online system non-life insurance Improved (equating to 50 bi
Slide 23: Ⅱ. Progress of Vision 2021
Ⅱ. Progress of “Vision 2021” 1. Impact of COVID-19 2. Progress Toward Aspirations 3. Sustainability Initiatives MS&AD Insurance Group Holdings, Inc.
Slide 24: 1. Impact of COVID-19
1. Impact of COVID-19 Incurred losses from COVID-19 MS Amlin (¥bn) (FY2020 forecast) (¥bn) Change Initial Revised from the MSI ADI Overseas subsidiaries forecast forecast initial MS Amlin Buiness Interruption 3.5 8.5 5.0 (Direct, UK and other) Incurred losses associated 48.0 4.0 5.0 39.0 37.5 Other
Slide 25: 2. Progress and Outlook of Numerical Management Targets
2. Progress and Outlook of Numerical Management Targets The full-year forecast for FY2020 of the Group Adjusted Profit is ¥210.0 billion, increased by ¥30.0 billion from the initial forecast. The full-year forecast of net income is ¥140.0 billion, increased by ¥10.0 billion from the initial fore
Slide 26: 2. Progress and Outlook of Numerical Management Targets
2. Progress and Outlook of Numerical Management Targets Group Adjusted Profit and Group Adjusted ROE <Reference> Group Core Profit and Group ROE (¥bn) New Frontier 2013 Next Challenge 2017 Vision 2021 ■ Domestic Non-life Insurance Business ■ Domestic Life Insurance Business Group Adjusted ROE ■ Inte
Slide 27: 3. Overview of MS&AD Sustainability
3. Overview of MS&AD Sustainability Resilient and Image of society in 2030 Sustainable Society Stability in people’s lives Social Issues Dynamic business Diverse risks activities Creating Shared Value surrounding society CSV × DX Provision of safety ■Deal with new risks and peace of mind ■Create mob
Slide 28: 3. Business Activities with Consideration for Sustainability
3. Business Activities with Consideration for Sustainability We have published a statement of business activities with consideration for sustainability. We addressed the direction of insurance underwriting, investment and loan activities in the three areas of climate change, natural capital and
Slide 29: 3. Sustainability Initiatives in Three Priority Issues
3. Sustainability Initiatives in Three Priority Issues Provision of Service and Investigative Research • Climate change impact assessment service for TCFD in partnership with Jupiter Intelligence Climate Change • LaRC-Flood project: Map of forecasted flood frequency change due to climate change • cm
Slide 30: Ⅲ. Capital Strategy
Ⅲ. Capital Strategy 1. MS&AD’s Growth Model 2. ESR 3. Shareholder Return Policy and Shareholder Return for FY2020 MS&AD Insurance Group Holdings, Inc.
Slide 31: 1. The MS&AD Growth Model
1. The MS&AD Growth Model While we secure financial soundness, we increase shareholder’s value through investment for sustainable growth and maintain stable shareholder return Investment in Creation Investment in Enhancement Group Adjusted Profit Group Adjusted ROE Investment in Expansion Life ins
Slide 32: 2. ESR
2. ESR ESR at the end of September 2020 is 209%, which is in the appropriate level to maintain the current capital policy. ESR* (Confidence level 99.5%) We will tackle the following based on our medium-term ESR forecast. Integrated Risk Amount NAV Figures in parentheses are reference values when U
Slide 33: 3. Shareholder Return Policy / Shareholder Return for FY2020
3. Shareholder Return Policy / Shareholder Return for FY2020 The interim dividend is planned ¥75 and the annual dividend is expected to be ¥150 (same as the previous fiscal year). Share buybacks totaling a maximum of ¥20.0 billion will be implemented. Shareholder Return Policy Provide shareholde
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