Ms&ad Insurance Group Holdings, Inc. · TSE:8725
Ms&ad Insurance — Q3 FY2022 Earnings Presentation
41 slides from Ms&ad Insurance's earnings presentation, Feb 14, 2023
Slide 1: Materials for FY2022 3Q Results Briefing – Conference Call
Materials for FY2022 3Q Results Briefing – Conference Call February 14, 2023 (Tue) 1
Slide 2: Today's Key Points
Today's Key Points FY2022 3Q Results <Top line> • Net premiums written increased by 226.9 billion yen, or 8.3% to 2,974.0 billion yen. • Net premiums written at the two main domestic non-life insurance companies combined increased by 3.6%, due to an increase in fire insurance, etc despite a decrease
Slide 3: Reference: Group adjusted profit in FY2022
＜Reference＞ Group adjusted profit in FY2022 200.0 （¥bn） 170.0 1.0 2.0 150.0 28.0 81.2 100.0 12.2 139.0 50.0 7.4 98.6 0.0 16.6 27.0 0.0 -36.2 -29.4 -0.2 -50.0 2Q 3Q Annual Forecast Domestic Non Life Insurance Domestic Life Insurance International Business Finanicial Service/Risk Related Service 3
Slide 4: Contents
Contents Summary of FY2022 3Q Results Consolidated Earnings P6-14 Domestic Non-Life Insurance Companies P15-17 Domestic Life Insurance Companies P18-19 Overseas Insurance Subsidiaries P20 (Reference) Domestic Non-Life Insurance Companies, MSI & ADI P21-22 (Reference) MS Amlin's Results P24 (Referenc
Slide 5: Summary of FY2022 3Q Results
Summary of FY2022 3Q Results 5
Slide 6: Consolidated Earnings (1) - Overview (i) (Top line)
Consolidated Earnings for FY2022 3Q (1) - Overview (i) (Top line) Non-life insurance subsidiaries （¥bn） FY2021 3Q FY2022 3Q Results Results YoY Change Growth Direct premiums written 2,918.6 3,147.1 228.4 7.8% (excl. deposit premiums from policyholders) Net premiums written 2,747.0 2,974.0 226.9 8.3%
Slide 7: Consolidated Earnings (1) - Overview (i) (Top line)
Consolidated Earnings for FY2022 3Q (1) - Overview (i) (Top line) (Non-life insurance subsidiaries: domestic and overseas) - Net premiums written increased by 226.9 billion yen, or 8.3% year-on-year mainly due to both domestic non-life insurance subsidiaries and overseas insurance subsidiaries growt
Slide 8: Consolidated Earnings (1) - Overview (ii) (Bottom line)
Consolidated Earnings for FY2022 3Q (1) - Overview (ii) (Bottom line) (¥bn) FY2021 3Q FY2022 3Q FY2022 Annual forecast Results Results YoY Change Change Ratio announced in Nov Progress Ordinary profit/loss 302.5 161.5 - 141.0 - 46.6% 220.0 - Mitsui Sumitomo Insurance 145.4 148.2 2.8 1.9% 159.0 - Aio
Slide 9: Consolidated Earnings (1) - Overview (ii) (Bottom line)
Consolidated Earnings for FY2022 3Q (1) - Overview (ii) (Bottom line) <Net income> (Group consolidated) ・ Net income for 3Q was decreased by -116.6 billion yen to 87.9 billion yen. Compared to the net income at 2Q of -33.5 billion yen, net income at 3Q increased by 121.5 billion yen and declined amo
Slide 10: Consolidated Earnings (2) – YoY Results Comparison (i)
Consolidated Earnings for FY2022 3Q (2) – YoY Results Comparison (i) • Net income at (7) two domestic non-life insurance companies combined decreased by -15.3 billion yen mainly due to an increase of (2)Incurred losses. Net income at (8)Domestic life insurance subsidiaries decreased by -43.9 billion
Slide 11: Consolidated Earnings (2) – YoY Results Comparison (ii)
Consolidated Earnings for FY2022 3Q (2) – YoY Results Comparison (ii) Factors in YoY changes in consolidated net income （¥bn） FY2021 3Q FY2022 3Q YoY Change Results Results Consolidated net income/loss 204.6 87.9 - 116.6 Domestic non-life insurance*1 : Underwriting profit/loss (excl. residential ear
Slide 12: Consolidated Earnings (3) – Group Adjusted Profit
Consolidated Earnings for FY2022 3Q (3) – Group Adjusted Profit • Group Adjusted Profit decreased by -194.8 billion yen to 81.2 billion yen. Compared to 2Q, 71.6 billon yen increase in profit at the domestic non-life insurance business, -4.4 billon yen decrease in profit at the domestic life insuran
Slide 13: Consolidated Earnings (4) – Impact of Natural Catastrophes
Consolidated Earnings for FY2022 3Q (4) – Impact of Natural Catastrophes • Incurred losses of domestic natural catastrophes was 92.3 billion yen due to hail losses in June and Typhoon No.14 losses of which fire insurance: 60.5 billion yen, motor insurance : 28.3 billion yen. • Incurred losses of ove
Slide 14: Consolidated Earnings (5) – Impact of COVID19 related loss in 2022
Consolidated Earnings for FY2022 3Q (5) – Impact of COVID19 related loss in 2022 ・ COVID19 related losses at domestic non-life insurance companies was 29.9 billion yen, 14.9 billion yen for domestic life insurance subsidiaries and 17.9 billion yen for overseas insurance subsidiaries(MSIG Mingtai in
Slide 15: Domestic Non-Life Insurance Companies – MSI & ADI Results (i)
Domestic Non-Life Insurance Companies (1) – MSI & ADI Results for FY2022 3Q (i) • Underwriting profit prior to reflecting catastrophe reserve decreased by -189.1 billion yen to -40.0 billion yen due to domestic natural catastrophe losses, COVID19 related losses and motor insurance losses increase fo
Slide 16: Domestic Non-Life Insurance Companies – MSI & ADI Results (ii)
Domestic Non-Life Insurance Companies (1) – MSI & ADI Results for FY2022 3Q (ii) • Investment profit and other ordinary profit increased by 52.7 billion yen mainly due to increase of Gains/losses on sales of securities, decrease of impairment losses on securities and increase of net interest and div
Slide 17: Domestic Non-Life Insurance – Voluntary Auto Insurance
Domestic Non-Life Insurance Companies FY2022 3Q (2) – Voluntary Auto Insurance • The cumulative number of accidents at the end of December increased by 4.6% year-on-year due to the recovery of traffic volume. (compared to Dec 2019: decreased by -4.0%) • E/I loss ratio increased by 7.3 points year-on
Slide 18: Domestic Life Insurance / MSI Aioi Life - Results
Domestic Life Insurance / MSI Aioi Life - Results for FY2022 3Q • Amount of new policies decreased by -15.3% year-on-year mainly due to a decrease in sales of income guarantee insurance. • Net income decreased by -6.6 billion yen mainly due to claim payment following to COVID19. MSI Aioi Life FY2021
Slide 19: Domestic Life Insurance / MSI Primary Life - Results
Domestic Life Insurance / MSI Primary Life - Results for FY2022 3Q • Gross premium increased by 31.3% due to the product development which meet the client needs and strong sales based upon foreign currency interest rate rise. • Net income decreased by -37.2 billion yen to -0.2 billion yen due to mar
Slide 20: Overseas Insurance Subsidiaries - Results
Overseas Insurance Subsidiaries - Results for FY2022 3Q • Net premiums written of overseas insurance subsidiaries increased by 149.0 billion yen due to an increase in each area including MS Amlin in Europe and impact of foreign exchange. • Net income decreased by -45.1 billion yen mainly due to net
Slide 21: Reference: Domestic Non-Life Insurance – MSI & ADI Results (1)
<Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 3Q (1) Net premiums written (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) FY2021 3Q FY2022 3Q FY2022 3Q FY2022 3Q Results Results Growth Results Growth Results Growth Fire and allied 318.6 376.7 18.2% 2
Slide 22: Reference: Domestic Non-Life Insurance – MSI & ADI Results (2)
<Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 3Q (2) EI loss ratio (Simple sum) EI Loss Ratio EI Loss Ratio (excl. impact of nat. cat.) FY2021 3Q FY2022 3Q FY2021 3Q FY2022 3Q Results Results YoY Change Results Results YoY Change Fire and allied (excl. 72.0% 88.2%
Slide 23: Reference: Domestic Non-Life Insurance – MSI & ADI Results (3)
<Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 3Q (3) EI loss ratio (MSI (Non-consolidated), ADI (Non-consolidated)) EI Loss Ratio EI Loss Ratio (excl. impact of nat. cat.) MSI (Non-consolidated) ADI (Non-consolidated) MSI (Non-consolidated) ADI (Non-consolidated) R
Slide 24: Reference: MS Amlin's Results for FY2022 (Jan. – Sep. 2022)
<Reference> MS Amlin’s Results for FY2022 (Jan. – Sep. 2022) *1 ・Net income was -￡305 million mainly due to investment losses of ￡166 million, Hurricane Ian related losses of ￡159 million and Russia-Ukraine related losses of ￡101 million. ・Underwriting profit excluding Russia-Ukraine related loss wa
Slide 25: Reference: Economic Solvency Ratio (ESR)
<Reference> Economic Solvency Ratio (ESR) ESR*1 Integrated Risk Amount*2 Net Asset Value （）UFR applied (¥tn) Main factors behind changes in ESR (Versus end of March, 2022) 228% 223% (235%) (224%) ESR decreased by -5pp compared to end of March 2022 5.5 5.4 Decreased due to the market environment fl
Slide 26: Projected Financial Results for FY2022
Projected Financial Results for FY2022 Announced on November 18, 2022 26
Slide 27: Consolidated Earnings Forecasts for FY2022 (1) – (i) (Top line)
Announced on Nov 18, 2022 Consolidated Earnings Forecasts for FY2022 (1) – (i) (Top line) • Net premiums written of Non-life insurance subsidiaries forecast was revised upward from the initial by 117.0 billion yen to 3,870.0 billion yen in consideration of 2Q result and current foreign exchange rate
Slide 28: Consolidated Earnings Forecasts for FY2022 (1) - (ii) (Bottom line)
Announced on Nov 18, 2022 Consolidated Earnings Forecasts for FY2022(1) - (ii) (Bottom line) • Net income was revised downward from the initial by 100.0 billion yen to 140.0 billion yen. • The revisions in domestic non-life insurance businesses were mainly due to increase of natural catastrophe loss
Slide 29: Consolidated Earnings Forecasts for FY2022 (2) – compared to initial forecast
Announced on Nov 18, 2022 Consolidated Earnings Forecasts for FY2022 (2) – compared to initial forecast • The forecast for domestic non-life insurance companies was revised downward by 40.0 billion yen from the initial forecast due to the significant increase on (2)Incurred loss in spite of positive
Slide 30: Consolidated Earnings Forecasts for FY2022 (3) – Group Adjusted Profit
Announced on Nov 18, 2022 Consolidated Earnings Forecasts for FY2022 (3) – Group Adjusted Profit • Group Adjusted Profit forecast was revised downward from initial by 130.0 billon yen to 170.0 billion yen due to lowering of domestic non-life insurance and international business. (¥bn) FY2021 FY2022
Slide 31: Major Assumptions for Earnings Forecasts for FY2022
Announced on Nov 18, 2022 Major Assumptions for Earnings Forecasts for FY2022 (¥bn) Mitsui Sumitomo Insurance Aioi Nissay Dowa Insurance Assumes the level at the end of September 2022 Assumptions concerning the financial Nikkei average : ￥25,937 USD$1 = JPY￥145 EUR€1 = JPY￥142 market environment GBP
Slide 32: Earnings Forecasts – Domestic Non-Life Insurance Companies (MSI&ADI) (i)
Announced on Nov 18, 2022 Earnings Forecasts for FY2022–Domestic Non-Life Insurance Companies (MSI&ADI) (i) (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) Change Change Change YoY YoY YoY from the from the from the Change Change Change initial Initial Initial 1 Net premiums written*
Slide 33: Earnings Forecasts – Domestic Non-Life Insurance Companies (MSI&ADI) (ii)
Announced on Nov 18, 2022 Earnings Forecasts for FY2022–Domestic Non-Life Insurance Companies (MSI&ADI) (ii) (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) Change Change Change YoY YoY YoY from the from the from the Change Change Change Initial Initial Initial Underwriting profit/los
Slide 34: Earnings Forecasts – MSI Aioi Life Key financial data
Announced on Nov 18, 2022 Earnings Forecasts for FY2022 – Domestic Life Insurance Companies – MSI Aioi Life Key financial data (¥bn) FY2021 FY2022 FY2022 Forecast (Revised) Results Forecast Change (Initial) YoY Change from the Initial Amount of new policies* 1,690.4 1,689.4 1,602.1 -5.2% - 87.3 Annu
Slide 35: Earnings Forecasts – MSI Primary Life Key financial data
Announced on Nov 18, 2022 Earnings Forecasts for FY2022 – Domestic Life Insurance Companies – MSI Primary Life Key financial data (¥bn) FY2021 FY2022 FY2022 Forecast (Revised) Results Forecast Change from the YoY Change (Initial) Initial Amount of new policies 819.6 842.7 939.7 14.6% 97.0 Amount of
Slide 36: Earnings Forecasts – Overseas Insurance Subsidiaries
Announced on Nov 18, 2022 Earnings Forecasts for FY2022– Overseas Insurance Subsidiaries • Forecast for net premiums written was revised upward from the initial forecast by 73.0 billion yen to 865.0 billion yen. • Forecast for net income was revised downward from the initial forecast by 49.0 billion
Slide 37: Reference: Earnings Forecasts – Domestic Non-Life Insurance (MSI&ADI) (i)
<Reference> Earnings Forecasts for FY2022–Domestic Non-Life Insurance Companies (MSI&ADI) (i) Announced on Nov 18, 2022 Net premiums written (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) Growth Growth Growth Fire and allied 495.7 13.6% 267.5 13.1% 228.2 14.3% Marine 81.0 17.2% 74.8
Slide 38: Reference: Earnings Forecasts – Domestic Non-Life Insurance (MSI&ADI) (ii)
<Reference> Earnings Forecasts for FY2022–Domestic Non-Life Insurance Companies (MSI&ADI) (ⅱ) Announced on Nov 18, 2022 EI loss ratio Simple Sum MSI (Non-consolidated) ADI (Non-consolidated) YoY Change YoY Change YoY Change Fire and allied 83.6% 3.1pp 80.6% 2.2pp 87.3% 4.4pp Marine 59.5% -3.3pp 58.6
Slide 39: Reference: MS Amlin's Results Forecast for FY2022
Announced on Nov 18, 2022 <Reference> MS Amlin’s Results Forecast for FY2022 (Jan. – Dec. 2022) *1 • Net income of FY2022 is expected -£211 million, -£231 million downward from the initial forecast due to investment losses. • The underwriting profit of FY2022 is expected £11 million in the black, in
Slide 40: Abbreviations of company names used in this presentation
Abbreviations of company names used in this presentation • MS&AD Holdings : MS&AD Insurance Group Holdings, Inc. • MS&AD: MS&AD Insurance Group • Mitsui Sumitomo Insurance, MSI : Mitsui Sumitomo Insurance Co., Ltd. • Aioi Nissay Dowa Insurance, ADI : Aioi Nissay Dowa Insurance Co., Ltd. • Mitsui Dir
Slide 41: Definition of Group Adjusted Profit and Group Adjusted ROE; Forward-Looking Statements
Definition of “Group Adjusted Profit” and “Group Adjusted ROE” Group Adjusted Profit = Consolidated net income + Provision for catastrophe loss reserve and others - Other incidental factors (amortization of goodwill and other intangible fixed assets and others) + Equity in earnings of the non-consol
MS&AD Insurance Group Holdings — Q3 FY2022 Earnings Presentation on 6ix