Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — Investor Day (May 2024)
96 slides from Tokio Marine's investor day presentation, May 24, 2024
Slide 1: Tokio Marine Group Business Strategy
Tokio Marine Group Business Strategy Mid-Term Plan 2026 ~Inspiring confidence. Accelerating progress.~ May 24, 2024 Copyright (c) 2024 Tokio Marine Holdings, Inc.
Slide 2: Table of Contents
Table of Contents I. Group Business Strategy (1) Profit Growth .................... P. 4 II. Japan P&C Business Strategy ......................................... P. 7 III. International Business Strategy .................................... P. 17 IV. Solutions Business Strategy ....................
Slide 3: Key messages
Key messages Deliver top-tier EPS growth at +8% or more (3Y CAGR) for the new MTP (+16% or more including capital gains from sale of business-related equities). The driver is attributable to top-tier U/W and Top-tier Asset management in each region. EPS and DPS Deliver stable profit growth with ou
Slide 4: EPS Growth Target
I. Group Business Management Quality Strategy EPS Growth Effective Use of Capital Shareholder Return Improvement EPS Growth Target Deliver top-tier EPS growth at +8% or more*1 EPS growth, when including the impact of the accelerated sale of business-related equities, is projected at +16% or more*1
Slide 5: (Ref.) Top-Tier Stable EPS Growth
I. Group Business Management Quality Strategy EPS Growth Effective Use of Capital Shareholder Return Improvement (Ref.) Top-Tier Stable EPS Growth We have achieved the top-tier EPS growth while managing volatility EPS Growth EPS Growth Volatility (2013-2023 CAGR) (2013-2023) Tokio Marine Peer 1 Pe
Slide 6: Source of Well-Balanced Profit Growth
I. Group Business Management Quality Strategy EPS Growth Effective Use of Capital Shareholder Return Improvement Source of Well-Balanced Profit Growth Continue delivering top-tier profit growth under the new mid-term business plan (MTP) with a growth rate of 7% or more through organic growth (3-ye
Slide 7: Vision/Business model TMNF Aspires to Achieve Through Re-New
II. Japan P&C Business Strategy Re-New New MTP Profit Target Vision/Business model TMNF Aspires to Achieve Through “Re-New” The vision is to 1) accurately analyze customers’ risks, 2) not only hedge these risks but also avoid and reduce damage itself, and 3) provide insurance with affordable price
Slide 8: Re-New (1) Build a competitive environment based on the value of insurance
II. Japan P&C Business Strategy Re-New New MTP Profit Target “Re-New” (1) Build a competitive environment based on the value of insurance Ending deep-rooted practices of Japanese P&C industry will lead to an efficient and appropriate competitive environment. In this environment, an ability to offe
Slide 9: Re-New (2) Focus on bottom-line growth to sustainably offer value
II. Japan P&C Business Strategy Re-New New MTP Profit Target “Re-New” (2) Focus on bottom-line growth to sustainably offer value We sustainably offer appropriate coverages at appropriate rates corresponding to customers’ risks and needs. To continue fulfilling this duty as an insurance company, we
Slide 10: Re-New (3) Expand trusted and specialized distribution channels
II. Japan P&C Business Strategy Re-New New MTP Profit Target “Re-New” (3) Expand trusted and specialized distribution channels Expand and diversify distribution channels with the quality and expertise, selected based customers’ needs and upgrade our support for agents to accelerate this, thereby i
Slide 11: (Ref.) Progress of Re-New
II. Japan P&C Business Strategy Re-New New MTP Profit Target (Ref.) Progress of “Re-New” Steadily implementing specific initiatives under the business improvement plan submitted at the end of February based on the analysis of root causes Thoroughly implement “Re-New” (incl. preventing recurrence
Slide 12: Profit Target for Japan P&C Business
II. Japan P&C Business Strategy Re-New New MTP Profit Target Profit Target for Japan P&C Business Driver of business unit profit (CAGR: +5%) is the underwriting profit growth (CAGR: +10%) Realize growth trajectory with confidence by achieving product / rate revision for auto / fire and “Re-New”
Slide 13: (1) Auto Insurance Profitability Improvement
II. Japan P&C Business Strategy Re-New New MTP Profit Target (1) Auto Insurance Profitability Improvement Overcome the difficult environment (resulting from inflation, a post-COVID driving surge, and escalating Nat Cats), with initiatives to raise operation efficiency as well as further rate / pro
Slide 14: (2) Fire Insurance Profitability Improvement
II. Japan P&C Business Strategy Re-New New MTP Profit Target (2) Fire Insurance Profitability Improvement Achieve profitability commensurate to capital cost (RoR > 7%) by FY2026 through more disciplined underwriting exercised as part of “Re-New,” in addition to the constant rate / product revision
Slide 15: (3) Growth of Specialty Insurance
II. Japan P&C Business Strategy Re-New New MTP Profit Target (3) Growth of Specialty Insurance Capture promising markets focusing on five priority areas to achieve approx. JPY7.0bn profit increase (approx. +JPY100.0bn premium increase). During the previous MTP, we achieved a nearly +JPY100.0bn pre
Slide 16: (4) E/R Improvement
II. Japan P&C Business Strategy Re-New New MTP Profit Target (4) E/R Improvement Current E/R maintains an efficiency advantage against other Japanese P&C companies Aim for E/R at the 31% mark during the new MTP period and below 30% in the mid- to long-term without shrinking the size of business
Slide 17: Profit Target for International Business
III. International Underwriting Profit Investment Income Business Strategy Profit Target for International Business International business profit growth target is CAGR of +7% or more (excl. past reserves takedown) Realize growth driven by strong underwriting while factoring in a certain level of
Slide 18: Top-class Underwriting Growth (Comparison with North American Peers)
III. International Underwriting Profit Investment Income Business Strategy Top-class Underwriting Growth (Comparison with North American Peers) North American underwriting profit is expected to grow at CAGR +10%, representing top tier growth vs. peers Underwriting profit 北⽶Peers North American pee
Slide 19: Rate Increases
III. International Underwriting Profit Investment Income Business Strategy Rate Increases Achieve growth while maintaining C/R at low levels, leveraging the competitive advantage built through strategic focus on niche markets and specialty insurance*1 and carrying out rate increases exceeding forw
Slide 20: Factors for Growth Exceeding the Market (1) TMHCC & PHLY
III. International Underwriting Profit Investment Income Business Strategy Factors for Growth Exceeding the Market (1) TMHCC & PHLY Our specialty focus and nimble management structure allow us to quickly implement strategic decisions and maintain stable, profitable growth that outperforms the mark
Slide 21: Factors for Growth Exceeding the Market (2) RSL & Pure
III. International Underwriting Profit Investment Income Business Strategy Factors for Growth Exceeding the Market (2) RSL*1 & Pure Ability to implement rigorous profit improvement CEO/Chris Fazzini RSL*1 rigorously implemented profit improvement initiatives (including ＜C/R＞ ＜Top-line＞ non-renewal
Slide 22: Factors for Growth Exceeding the Market (3) TMK & TMSR
III. International Underwriting Profit Investment Income Business Strategy Factors for Growth Exceeding the Market (3) TMK & TMSR Top Class Profitability in Lloyd’s Market CEO/Matthew Shaw ＜C/R＞ Fully focused on “profitability” with the clear goal of “constantly 105% achieving C/R of low 90% range
Slide 23: (Ref.) External Evaluation of Our North American GCs
III. International Underwriting Profit Investment Income Business Strategy (Ref.) External Evaluation of Our North American GCs Scored the highest favorability rating in the Americas* *: A survey for risk managers in large companies with 250 or more employees by FT Commercial Insurance GIST 2024 S
Slide 24: Stable Increase in Investment Income
III. International Underwriting Profit Investment Income Business Strategy Stable Increase in Investment Income Stable growth in investment income on the back of an increase in long-term and predictable insurance cashflows (AUM), yields maintained by investing in asset class with attractive RoR <2
Slide 25: Features and Track Record of DFG's Investment
III. International Underwriting Profit Investment Income Business Strategy Features and Track Record of DFG’s Investment DFG’s strength of specialized investment team and strong collaboration with outside asset managers enable establishment / execution of flexible investment strategies correspondi
Slide 26: Solutions Business Progress Update
IV. Solutions Business Strategy Solutions Business Progress Update Insurance business will not be the sole driver of our growth. Promote commercialization in multiple fields to make them grow into pillars of income by 2035 Estimated Estimated Disaster prevention / mitigation target Mobility target
Slide 27: World to be Realized in Disaster Resilience Field
IV. Solutions Business Strategy Solutions Business World to be Realized in Disaster Resilience Field Enhancing the value chain in disaster resilience will increase the benefit for the customers and local community and lead to economic value (profits) for us Disaster resilience field Social value c
Slide 28: Disciplined Capital Management
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Disciplined Capital Management Capital generated is allocated to risk-taking and business investment that will contribute to improving the ROE. In the absence of good opportunities, sha
Slide 29: Track Record of ROE Improvement and MTP Quantitative Targets
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Track Record of ROE Improvement and MTP Quantitative Targets Our profit increased due to the rebalance of risk portfolio based on ERM, without unnecessary capital increase. Consequently
Slide 30: Global Risk Diversification and Profit Growth
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Global Risk Diversification and Profit Growth We have achieved profit growth by allocating capital to businesses with high ROR and risk diversification effects This trend will acceler
Slide 31: Disciplined In / Out Strategy
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Disciplined In / Out Strategy Our large-scale M&A track record (ROI) is +21.5%. Successful track record makes Tokio Marine an attractive acquirer for the next M&A Valuations are curre
Slide 32: (Ref.) Track Record of large-scale M&A
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement (Ref.) Track Record of large-scale M&A Five subsidiaries acquired with large-scale M&A have continually outperformed market growth ROI is significantly above TMHD capital cost (7%) at
Slide 33: (Ref.) Track Record of Bolt-on M&A
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement (Ref.) Track Record of Bolt-on M&A Room for bolt-on M&A based on in-depth understanding of mutual business Leverage the experience and expertise of TMHCC as our strength and steadily
Slide 34: (Ref.) Rate Cycle and M&A Opportunities
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement (Ref.) Rate Cycle and M&A Opportunities Valuations remain high for high-quality M&A transactions, requiring patience The market is cyclical and attractive M&A opportunities increase w
Slide 35: Reduction of Business-Related Equities
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Re-post from Q4 Conference Reduction of Business-Related Equities Call on May 20, 2024 Business-related equities outstanding will be “zero*1” in six years (JPY3.5tn in market value as o
Slide 36: Top-tier DPS Growth
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Re-post from Q4 Conference Top-tier DPS Growth Call on May 20, 2024 DPS growth trajectory with confidence in line with EPS growth can be maintained for the next three years DPS for FY
Slide 37: Strong Capital Stock and Disciplined Capital Management (Share Buyback)
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Re-post from Strong Capital Stock and Disciplined Capital Management (Share Buyback) Q4 Conference Call on May 20, 2024 Strong ESR*1 as of March 31, 2024 at 140%. Current plan for FY202
Slide 38: Review of Indicators for Introduction of IFRS / ICS
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Re-post from Q4 Conference Review of Indicators for Introduction of IFRS / ICS Call on May 20, 2024 IFRS / ICS to be introduced at the end of FY2025 Considering the impact of the intr
Slide 39: Globally Integrated Group Management
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Globally Integrated Group Management Continue to promote “integrated group management” that leverages global talent and knowledge to decide and implement important management actions
Slide 40: Expansion of Group Synergies
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Expansion of Group Synergies Group synergies are our unique strength and steadily expanding to USD618mn as a result of Globally Integrated Group Management Group Synergies Example of re
Slide 41: Enhancement of Governance and Risk Management
V. Group Business Management Quality EPS Growth Effective Use of Capital Shareholder Return Strategy Improvement Enhancement of Governance and Risk Management Further enhancement of governance at Group-level is set as one of key strategies in the new MTP and will be executed rigorously through the
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Slide 43: Table of Contents (Reference)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Table of Contents Group ・・・・・・・・・・・・ P. 44 Business Area Expansion・・・・・ P. 76 Japan P&C ・・・・・・・・・・・・ P. 51 Capital Policy ・・・・・・・・・・・・ P. 80 Japan Life ・・・・・・・・・・・・ P. 56 ESG ・・・・・・・・・・
Slide 44: Overview of New MTP
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Overview of New MTP Re-post from IR Conference on Nov. 22, 2023 Set forth “Our Long-term Aspiration 2035” in light of the rapid changes in the business environment (and as a result, t
Slide 45: Our Long-term Aspiration 2035 and Its Image
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national “Our Long-term Aspiration 2035” and Its Image Re-post from IR Conference on Nov. 22, 2023 In addition to providing best fit “Insurance” products to issues / risks of customers and soc
Slide 46: KPI target of New MTP
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national KPI target*1 of New MTP MTP MTP （2024-2026） （2024-2026） CAGR+7% or more CAGR+8% or more Adjusted Net incl. capital gains from sale of Adjusted Income business-related equities*4 incl. c
Slide 47: Review of Previous MTP (Overall)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Review of Previous MTP (Overall) Previous MTP 2023 Results Normalized basis （2021-2023） (Actual in the parentheses) CAGR+15%*1 Adjusted net income (CAGR: vs FY2020) CAGR+3-7% JPY685.5bn
Slide 48: FY2023 Adjusted Net Income (Normalized)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Re-post from Q4 Conference FY2023 Adjusted Net Income (Normalized) Call on May 20, 2024 Increase of JPY68.3bn primarily led by strong performance notably from international business
Slide 49: FY2024 Adjusted Net Income Projection
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Re-post from Q4 Conference FY2024 Adjusted Net Income Projection Call on May 20, 2024 Adjusted net income projected to be JPY1tn (+46% YoY) thanks to the accelerated sale of business-
Slide 50: Tokio Marine Group's Retention / Reinsurance Policy
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Tokio Marine Group’s Retention / Reinsurance Policy Our primary objective of reinsurance is to protect the balance sheet from capital events We implement flexible cycle management b
Slide 51: TMNF: Changes in Net Premiums Written for All Categories and C/R
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national TMNF: Changes in Net Premiums Written for All Categories and C/R Changes in net premiums written (all categories; billions of JPY) and C/R*1 (private insurance E/I basis) Compositio
Slide 52: TMNF: Changes in Auto Insurance C/R
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national TMNF: Changes in Auto Insurance C/R Changes in auto insurance C/R *1 (private insurance E/I basis) Auto insurance market share*3 (Based on FY2022 direct net premiums written) Includ
Slide 53: TMNF: Changes in Fire Insurance C/R
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national TMNF: Changes in Fire Insurance C/R Changes in fire insurance C/R*1（private insurance E/I basis) 161.4% 129.9% 121.1% 106.3% 98.7% 97.5% 101.7% 96.1% 87.7% 93.0% 89.1% [Oct. 2019 revi
Slide 54: (Ref.) Progress of Automated Driving Technology
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national (Ref.) Progress of Automated Driving Technology Auto insurance market will gradually shrink due to the progress of automated driving technology, but expectations for insurers as part o
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Slide 56: Confidence for MTP Quantitative Targets (Top-line)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Confidence for MTP Quantitative Targets (Top-line) Achieve +5% or more (3Y CAGR) with business model reform under the new MTP In addition to the conventional agent model, Japan Life
Slide 57: Confidence for MTP Quantitative Targets (Bottom-line)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Confidence for MTP Quantitative Targets (Bottom-line) [Economic value basis (Value of New Business)] Achieve +5% or more (3Y CAGR) by increasing sales through customer contact point r
Slide 58: Improve Profitability and Accelerate Profit Contribution
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Improve Profitability and Accelerate Profit Contribution Future profit growth has been accelerating by focusing on products with high ROR and IRR that will promptly contribute to prof
Slide 59: Capital efficiency
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Capital efficiency Capital efficiency is among the highest in domestic peers both on the financial accounting basis and economic value basis Japan Life Core ROEV*1 (economic value bas
Slide 60: Diversification of Risk Control Methods (Block Reinsurance)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Diversification of Risk Control Methods (Block Reinsurance) Strict interest rate risk control with ALM (comprehensive asset and liability management) In addition to hedging by purch
Slide 61: Track record of In / Out Strategy
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Track record of In / Out Strategy Building a strong franchise by acquiring blue chip insurers with solid business model Driving optimization of business portfolio by determining cor
Slide 62: [Basic Information] PHLY
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national [Basic Information] PHLY Build competitive edge focusing on niche customer segments What’s PHLY Current Focus Results Focus on niche customer segments Steady profit growth High re
Slide 63: [Basic Information] DFG
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data [Basic Information] DFG Maintain U/W profit and expand investment income leveraging its strengths What’s DFG Current Focus Results Strength in employee benefits and Initiatives to i
Slide 64: [Basic Information] TMHCC
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national [Basic Information] TMHCC Global leader in specialty insurance with 50 years of deep technical expertise What’s TMHCC Current Focus Results Highly profitable and well- Latest bolt-o
Slide 65: [Basic Information] Pure
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national [Basic Information] Pure Specialty insurance group focused on the U.S. High Net Worth insurance market What’s Pure Current Focus Results Focus on HNW market with high Sustainable bu
Slide 66: [Basic Information] TMK
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national [Basic Information] TMK Top Class Specialty Insurer in Lloyd’s market What’s TMK Current Focus Results One of the largest underwriting Rebalance U/W portfolio Favorable combined r
Slide 67: [Basic Information] TMSR
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national [Basic Information] TMSR Highly competitive in the largest market in Latin America leveraging cutting-edge DX What’s TMSR Current Focus Results One of the top players in Auto Expand
Slide 68: Emerging Market Business
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Emerging Market Business Building “pillars” with focus on regions with large market and strong expected growth <Our major P&C business network in emerging countries> India Thailand Br
Slide 69: International business performance by region
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data International business performance by region 2024 2024 2023 2026 2023 Projection Net Premiums Written Projection (billions of JPY) *5 Actual Original Plan Applied FX rate Actual Origina
Slide 70: (Ref.) Inflation Resilience
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national (Ref.) Inflation Resilience Resilience against economic / social inflation is enhanced Continue to take pro-active measures to manage rapid environment change Inflation Type by Loss
Slide 71: (Ref.) Inflation Resilience (Social Inflation)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national (Ref.) Inflation Resilience (Social Inflation) PHLY Business Strength*1 Ability to avoid impact Ability to mitigate impact ▶ Disciplined underwriting ▶ Robust portfolio Continued proa
Slide 72: (Ref.) Inflation Resilience (Medical / Wage Inflation)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data (Ref.) Inflation Resilience (Medical / Wage Inflation) Impact Existing New Initiatives Business Business Prior Year Loss Reserves Loss Cost Medical stop-loss Short-tail with limited pri
Slide 73: Group Asset Management Policy
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Group Asset Management Policy Maintain long-term, stable income based on ALM aligned with characteristics of insurance liabilities Investment Portfolio (Mar. 31, 2024) Securing a stab
Slide 74: DFG Investment Track Record
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data DFG Investment Track Record DFG investment performance (investment income + realized gains / losses) remained positive during the collapse of Lehman Brothers <Investment Return*1 and
Slide 75: CRE Loan Update
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data CRE Loan Update DFG has successfully increased returns in CRE Loan by demonstrating strong expertise in making selective investments Booked 3% CECL following a detailed review of in
Slide 76: Progress in Initiatives 1: Disaster Prevention and Mitigation Area
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Progress in Initiatives 1: Disaster Prevention and Mitigation Area Develop and gradually start offering solutions in pre- and post-incident areas through use of data and technologies
Slide 77: Progress in Initiatives 2: Mobility Area
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Progress in Initiatives 2: Mobility Area Leverage accident data and analysis expertise to develop and gradually start offering solutions that contribute to reducing risks and costs re
Slide 78: Progress in Initiatives 3: Healthcare / Decarbonization Area
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Progress in Initiatives 3: Healthcare / Decarbonization Area Established preparatory company to provide solutions in “Healthcare” and “Decarbonization” areas Established Business Esta
Slide 79: Progress of Initiatives 4: Deploy Embedded Insurance, etc.
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Progress of Initiatives 4: Deploy Embedded Insurance, etc. (Evolution of insurance business) Deploy new insurance products using Embedded Insurance*1 in partner companies’ services an
Slide 80: Disciplined capital policy (ESR)
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Disciplined capital policy (ESR) ESR as of Mar. 31, 2024 stood at 140% (or 135% after share buyback), mainly reflecting profit contributions in 2H, stock price increases, shareholder
Slide 81: Achieve Further Growth through Flexible Capital Strategy
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Achieve Further Growth through Flexible Capital Strategy Use hybrid capital to realize further growth strategies including M&A Increase ROE on a long-term basis by maintaining appro
Slide 82: Materiality
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Materiality Material issues that we should address (Materiality) were reviewed in conjunction with the establishment of the new MTP to reflect the latest social circumstances and stak
Slide 83: Examples of Recent Contributions to Resolution of Societal Challenges
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Examples of Recent Contributions to Resolution of Societal Challenges Since our founding, we realized both “contribution to sustainable society” and “our company’s sustainable growth”
Slide 84: Win-Win Situation with Stakeholders
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national “Win-Win” Situation with Stakeholders Provide balanced values to all stakeholders by being true to our purpose Shareholders Customers World’s top-tier TSR*1 through profit Appreciatio
Slide 85: Response to Climate Change
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Response to Climate Change Climate change is one of the most important social issues across the planet. We will face up to this difficult 気候変動は、地球のサステナビリティにとって重要な社会課題。当社はこの課題に真正面から取
Slide 86: Initiatives for Promoting DE&I
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Initiatives for Promoting DE&I Provide necessary opportunities and support to people in need (Equity) and further strengthen initiatives on gender, disability, LGBTQ, etc. Enhance n
Slide 87: Governance Structure
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Governance Structure Hybrid organizational design with a Board of Directors that makes high-quality decisions by utilizing the knowledge and expertise of outside directors, and a Nomi
Slide 88: Skill Matrix of Outside Officers
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life Investment Expansion Policy ESG Data national Skill Matrix of Outside Officers Achieve highly effective governance by incorporating the skills of a diverse range of outside directors in a well-balanced manner Skills and experienc
Slide 89: Executive Compensation
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Executive Compensation Designed a remuneration system linked to business performance and stock price as an incentive for directors to achieve sustainable growth Continue to review t
Slide 90: Natural Catastrophes
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Re-post from Q4 Conference Natural Catastrophes Call on May 20, 2024 Net incurred losses relating to Nat Cats in FY2023 decreased by -JPY8.2bn to JPY167.8bn compared to Feb. projectio
Slide 91: Impact of FX Rate Change on the Group's Financial Results
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Re-post from Q4 Conference Impact of FX Rate Change on the Group’s Financial Results Call on May 20, 2024 Estimated impact of the depreciation of JPY to USD by 1 yen*1 Impact on net i
Slide 92: Tokio Marine Holdings Key Statistics
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Tokio Marine Holdings Key Statistics FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 *1 Net income (billions of yen) 247.4 254.5 273.8 284.1 274.5 259.7 161.8 420.
Slide 93: Return to Shareholders
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Return to Shareholders FY2024 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Projections Dividends per share 37 yen 47 yen 53 yen 60 yen 63 yen 67 yen 85 yen 100 yen 123
Slide 94: Definition of KPIs
Inter- Business Area Capital Ⅵ. Reference Group Japan P&C Japan Life national Investment Expansion Policy ESG Data Re-post from Q4 Conference Definition of KPIs Call on May 20, 2024 Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE Adjusted Provision for Provision for Provision
Slide 95: Copyright (c) 2024 Tokio Marine Holdings, Inc.
Copyright (c) 2024 Tokio Marine Holdings, Inc. 95
Slide 96: 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