Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — Q1 FY2023 Earnings Presentation
29 slides from Tokio Marine's earnings presentation, Aug 7, 2023
Slide 1: Overview of 1Q FY2023 Results
Overview of 1Q FY2023 Results August 7, 2023
Slide 2: Table of Contents
Table of Contents Highlights Reference – Key Messages ・・・・・・・・・・・・・・・・・・ 3 – Definition of KPIs ・・・・・・・・・・・・・・ 23 – Executive Summary ・・・・・・・・・・・・・・・・・・ 4 – Reconciliation of Adjusted Net Income ・・・・・・・・・ 25 – Reconciliation of Business Unit Profits ・・・・・・・・・・・ 26 – Impact of FX Rate Changes on the
Slide 3: (Blank Page)
(Blank Page) Copyright (c) 2023 Tokio Marine Holdings, Inc. 2
Slide 4: Key Messages
Key Messages Adjusted Net Income progress rate is 25% due to (i) Nat Cats, (ii) North American capital losses; and (iii) impact of the JPY depreciation on domestic business. Although the figure is slightly lower compared with the 5Y average progress rate of Steady 36%, (i) and (ii) are within proj
Slide 5: Executive Summary: Top-Line
Executive Summary: Top-Line TBU Net premiums written exceeded projections with increase of +9.9% YoY (+6.7% excl. FX) primarily driven by rate increases as well as sales expansion for domestic and international business Life insurance premium increased by +0.2% YoY (-4.1% excl. FX), making stead
Slide 6: Executive Summary: Progress Toward Full-Year Projections (Adjusted Net Income)
Executive Summary: Progress Toward Full-Year Projections (Adjusted Net Income) [Group Results (Adjusted net income)] JPY164.5bn (25% vs full-year projections, *5Y average progress: 36％) Although the progress rate remains slightly subdued mainly due to (i) Nat Cats (-JPY20.4bn), (ii) North American
Slide 7: 1Q FY2023 Results
1Q FY2023 Results [Reference] Applied FX Rate (USD/JPY) FY2022 FY2023 End of June JPY136.68 JPY144.99 (Domestic Non-Life & Life) (-JPY14.29 from Mar. 31, 2022) (-JPY11.46 from Mar. 31, 2023) End of March JPY122.39 JPY133.53 (International) (-JPY7.37 from Dec. 31, 2021) (-JPY0.83 from Dec. 31, 2022)
Slide 8: Consolidated Results: Adjusted Net Income (YoY Change)
Consolidated Domestic Life Consolidated Results: Adjusted Net Income (YoY Change) Domestic Non-Life International Adjusted net income increased by +JPY25.4bn YoY mainly driven by robust growth of domestic non- life, fire insurance profitability improvement, expansion of specialty insurance, strong
Slide 9: Natural Catastrophes
Consolidated Domestic Life Natural Catastrophes Domestic Non-Life International Net incurred losses relating to Nat Cats in the 1Q decreased by -JPY2.2bn YoY to JPY27.2bn (Pre-tax) Net incurred losses relating to Nat Cats on a business unit profit basis (billions of JPY) 2023 2022 2023 YoY Change*
Slide 10: Domestic Non-Life 1: TMNF Results
Consolidated Domestic Life Domestic Non-Life 1: TMNF Results Domestic Non-Life International Business unit profit progress rate excluding the effects of Nat Cats and FX was 39.7% in line with full-year projections. Actual business unit profit progress rate remained low at 29.2%, compared to past 5
Slide 11: Domestic Non-Life 2: TMNF Net Premiums Written
Consolidated Domestic Life Domestic Non-Life 2: TMNF Net Premiums Written Domestic Non-Life International Steady +2.6% YoY increase, slightly exceeding full-year projection of +1.2% Top line growth primarily driven by the impact of product and rate revisions for fire and increased revenue for sp
Slide 12: Domestic Non-Life 3: TMNF Net Incurred Losses
Consolidated Domestic Life Domestic Non-Life 3: TMNF Net Incurred Losses Domestic Non-Life International Increased YoY at a pace faster than the full-year projection mainly due to the impact of Typhoon Mawar and FX as well as the impact of loss reserve development in overseas run-off reinsurance c
Slide 13: Domestic Non-Life 4: TMNF Combined Ratio
Consolidated Domestic Life Domestic Non-Life 4: TMNF Combined Ratio Domestic Non-Life International Both E/I loss ratio and combined ratio were mostly within the expected range compared with full-year projections when excluding the impact of overseas run-off reinsurance contracts and so on Corpo
Slide 14: Domestic Non-Life 5: TMNF Asset Management
Consolidated Domestic Life Domestic Non-Life 5: TMNF Asset Management Domestic Non-Life International Net investment income and other were below the full-year projections mainly due to the impact of FX (billions of JPY) FY2022 FY2023 FY2023 1Q 1Q YoY Progress Projection Results Results Change rate
Slide 15: Domestic Life: TMNL Results
Consolidated Domestic Life Domestic Life: TMNL Results Domestic Non-Life International Annualized Premium of New Business is as projected on a full-year with the expected acceleration in sales from 2Q onwards mostly led by new products launched in August Business unit profits were below full-yea
Slide 16: International 1: Net Premiums Written
Consolidated Domestic Life International 1: Net Premiums Written Domestic Non-Life International NPW increased at a faster pace than projected mainly driven by strong rate increases especially in North American entities, TMK and TMSR YoY increase of +8.8% thanks to the steady implementation of g
Slide 17: International 1: Net Premiums Written
Consolidated Domestic Life International 1: Net Premiums Written Domestic Non-Life International [Progress towards full-year projections] - North America (see pages 19-21 for details of the three main insurers) PHLY: Outperformed the plan mainly due to rate increases (1Q result: +9%), renewal rati
Slide 18: International 2: Business Unit Profits
Consolidated Domestic Life International 2: Business Unit Profits Domestic Non-Life International Both underwriting profit and investment income gains were more than expected driven by rate increases and higher yield; total business unit profit including capital losses in North America progressed
Slide 19: International 2: Business Unit Profits
Consolidated Domestic Life International 2: Business Unit Profits Domestic Non-Life International [Progress towards full-year projections] - North America (see pages 19-21 for details on the three main insurers) PHLY: Progressed as planned, despite an adverse Nat Cats loss increase, mainly thanks
Slide 20: International 3: PHLY Results
Consolidated Domestic Life International 3: PHLY Results Domestic Non-Life International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2022 FY2023 1Q 1Q YoY Results Results (Ref.) As of end As of end YoY % (Excluding FX rates Mar. 2022 Mar. 2023 Change % *2 FX effects ) （USD/
Slide 21: International 4: DFG Results
Consolidated Domestic Life International 4: DFG Results Domestic Non-Life International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2022 FY2023 1Q 1Q YoY Results Results (Ref.) As of end As of end YoY % (Excluding FX rates Mar. 2022 Mar. 2023 Change % FX effects ) *2 （USD/J
Slide 22: International 5: TMHCC Results
Consolidated Domestic Life International 5: TMHCC Results Domestic Non-Life International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2022 FY2023 1Q 1Q YoY Results Results (Ref.) As of end As of end YoY % (Excluding FX rates Mar. 2022 Mar. 2023 Change % FX effects ) *2 （USD
Slide 23: Reference
Reference Copyright (c) 2023 Tokio Marine Holdings, Inc. 22
Slide 24: Definition of KPIs (1)
Definition of KPIs (1) Adjusted Net Income (Group total) Business Unit Profits Enhancing transparency and comparability / Creating long-term corporate value Linking with shareholder return For the Group total, “Adjusted Net Income” For each business domain, “Business Unit based on financial acco
Slide 25: Definition of KPIs (2)
Definition of KPIs (2) Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE Adjusted Provision for Provision for Provision for price Provision for Nat Cats Provision for Net Net Income underwriting + underwriting result for = + catastrophe loss + contingency + fluctuation + Income*
Slide 26: Reconciliation of Adjusted Net Income: 1Q FY2023 Results
Reconciliation of Adjusted Net Income: 1Q FY2023 Results (billions of JPY) • Reconciliation*1 Note: Factors positive to profit are shown with a plus sign FY2022 1Q Results FY2023 1Q Results YoY Change FY2023 projections Net income attributable to owners of the parent *5 124.5 127.9 *5 3.3 530.0 (con
Slide 27: Reconciliation of Business Unit Profits: 1Q FY2023 Results
Reconciliation of Business Unit Profits: 1Q FY2023 Results （billions of JPY) Domestic Non-life*1 （TMNF） Domestic Life*1 FY2022 FY2023 FY2023 FY2022 FY2023 1Q 1Q YoY FY2023 Projections 1Q 1Q YoY Results Results Projections Results Results Net income for accounting purposes 4.6 3.8 - 0.8 38.0 Net
Slide 28: Impact of FX Rate Change on the Group's Financial Results
Impact of FX Rate Change on the Group’s Financial Results Estimated impact of the JPY depreciation to USD by 1 yen*1 Impact on net income on financial accounting basis*2 Impact on adjusted net income*2 circa Increase in overseas subsidiaries profit: circa Increase in overseas subsidiaries prof
Slide 29: Disclaimer
Disclaimer These presentation materials include business projections and forecasts relating to expected financial and operating results of Tokio Marine Holdings and certain of its affiliates in current and future periods. All such forward looking information is based on information and assumptions a
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