Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — FY2011 Earnings Presentation
26 slides from Tokio Marine's earnings presentation, May 18, 2012
Slide 1: Overview of FY2011 Results and FY2012 Projections
Overview of FY2011 Results and FY2012 Projections Tokio Marine Holdings, Inc. May 18, 2012 ◆Abbreviations used in this material TMNF: Tokio Marine & Nichido Fire Insurance Co., Ltd. NF: Nisshin Fire & Marine Insurance Co., Ltd. AL: Tokio Marine & Nichido Life Insurance Co., Ltd. FL: Tokio Marine & N
Slide 2: Overview of FY2011 Consolidated Results - 1
Overview of FY2011 Consolidated Results - 1 ■Ordinary Income （billions of yen） 3,570.8 3,415.9 3,288.6 – Net Premiums Written Increased at TMNF (auto and compulsory auto liability insurance, or CALI) and 2,292.9 2,324.4 overseas subsidiaries 2,272.1 – Life Insurance Premiums Decreased due to a s
Slide 3: Overview of FY2011 Consolidated Results - 2
Overview of FY2011 Consolidated Results - 2 ■ Ordinary Profit （billions of yen） ¥33.7B （+26.7％） – Domestic Non-Life 68.0 -1.1 TMNF：Increased by ¥66.3B YoY Underwriting profit increased due to a gain on reversal 69.7 160.3 of catastrophe loss reserves corresponding to increased claims paid, despite
Slide 4: Overview of FY2011 Consolidated Results - 3
Overview of FY2011 Consolidated Results - 3 ■Net Income （billions of yen） -¥65.9B（-91.7％） – Domestic Non-Life TMNF：Decreased by ¥77.5B YoY Mainly due to a reduction of deferred tax assets owing to 71.9 the decrease in corporate tax rate and extraordinary losses owing to expenses to support oversea
Slide 5: FY2012 Consolidated Projections - 1
FY2012 Consolidated Projections - 1 ■Ordinary Profit （billions of yen） ¥4.6B （+2.9％） – Domestic Non-Life 123.4 0.8 TMNF：Projected to decrease by ¥95.1B YoY Underwriting profit is projected to increase assuming 160.3 165.0 that net incurred losses from natural disasters are set at an average level,
Slide 6: FY2012 Consolidated Projections - 2
FY2012 Consolidated Projections - 2 ■Net Income （billions of yen） ¥98.9B – Domestic Non-Life 104.5 0 TMNF：Projected to increase by ¥62.7B YoY Mainly due to a positive reversal effect of corporate tax changes despite the projected decrease in ordinary profit 105.0 – Domestic Life ＡＬ：Projected to in
Slide 7: FY2012 Adjusted Earnings Projections
FY2012 Adjusted Earnings Projections ■ Adjusted Earnings by Business Domain - Group total adjusted earnings projected to increase by (billions of yen) Business Domain FY2011 FY2012 ¥184.5B YoY to ¥165.0B Results Projections Change Domestic Non-life -26.1 42.0 68.1 - 5.8% Adjusted ROE projected TMNF
Slide 8: Domestic Non-Life - TMNF FY2012 Projections
Domestic Non-Life - 1 TMNF FY2012 Projections ■ Details of Projections by Major Item (billions of yen) FY2012 – Underwriting Profit FY2011 Projections Results Projected to increase by ¥45.1B YoY to ¥44.0B Change YoY Increase in net premiums written owing to auto rate revisions Underwriting profit/
Slide 9: Domestic Non-Life - TMNF Combined Ratio
Domestic Non-Life - 2 TMNF Combined Ratio ■ Trend in Combined Ratios （Private insurance: W/P basis） – Loss Ratio Combined ratio 103.3% Projected to improve by 3.8 points YoY to 65.5% 97.2% 99.1% Progress in claims payment related to Thai Flood Assume an increase of natural disaster loss Revers
Slide 10: Domestic Non-Life - TMNF FY2012 Projections: Net Premiums Written by Line
Domestic Non-Life - 3 TMNF FY2012 Projections ■ Net Premiums Written by Line (billions of yen) FY2011 FY2012 – Major Factors of Changes in Net Premiums Written Results Projections YoY Fire： Projected to sustain growth despite a decline in assumed YoY growth rate Fire 233.6 236.2 1.1% Marine： Pro
Slide 11: Domestic Non-Life - NF FY2012 Projections
Domestic Non-Life - 4 NF FY2012 Projections ■ Details of Projections by Major Item （billions of yen） – Underwriting Profit FY2011 FY2012 Projected to increase by ¥3.3B YoY mainly due to Results Projections Change YoY improvements in net incurred losses, in addition to increase in net premiums writte
Slide 12: Domestic Life - AL FY2012 Projections
Domestic Life - 1 AL FY2012 Projections ■ Annualized Premiums (ANP) (billions of yen) – New Policies ANP New Policy 447.1 Projected to increase by 1.6% YoY despite assuming lower In-force Policy 419.4 average unit prices with an emphasis on profitability by weighting 396.7 third sector products 382.
Slide 13: International Insurance Business - FY2012 Projections
International Insurance Business - 1 FY2012 Projections ■ Net Premiums Written (NPW) (billions of yen) FY2011 FY2012 YoY Results Projections YoY Change – Expected to increase by 34% YoY due to organic As of end- As of end- Change (Excluding business growth in existing entities such as Applied FX rat
Slide 14: International Insurance Business - FY2012 Projections: Adjusted Earnings
International Insurance Business - 2 FY2012 Projections ■ Adjusted Earnings （billions of yen） FY2012 Change FY2011 Projection YoY Results s Change YoY (Excluding As of end- As of end- FX – Expected to increase due to recovery from natural Applied FX rate effects ) Dec 2011 Mar 2012 catastrophe losse
Slide 15: Reference
Reference • Overview of Consolidated Results • Impact of Thai Flood • Impact of Changes in Corporate Tax Rate • Impact of the Great East Japan Earthquake • FY2011 Results of Adjusted Earnings • TMNF FY2011 Results • FY2011 Results (TMNF Net Investment Income) • FY2011 Results (TMNF Assets Under Mana
Slide 16: Reference: Overview of Consolidated Results
Reference：Overview of Consolidated Results (billions of yen) FY2010 FY2011 FY2012 ■ Ordinary Profit Results Results Difference YoY projections Difference YoY Ordinary profit (TMHD Consolidated) 126.5 160.3 +33.7 26.7% 165.0 +4.6 2.9% Tokio Marine & Nichido 145.7 212.1 +66.3 45.5% 117.0 - 95.1 -44.8%
Slide 17: Reference: Impact of Thai Flood
Reference： Impact of Thai Flood ■ Impact on Financial Accounting basis Overseas Net incurred losses TMNF Group total subsidiaries Announcement on Approx. ¥50B Approx. ¥60B Approx. ¥110B Feb 14, 2012 Today's Net incurred losses (Group total) Approx. ¥70B Approx. ¥60B Approx. ¥130B announcement Approx
Slide 18: Reference: Impact of Changes in Corporate Tax Rate
Reference： Impact of Changes in Corporate Tax Rate ■ Impact on FY2011 Results Amount of impact – Impact on Net Income in FY2011 （billions of yen） • A portion of catastrophe loss reserves and price fluctuation reserves, etc. accumulated by domestic insurers is taxable TMNF • This taxable portion is r
Slide 19: Reference: Impact of the Great East Japan Earthquake
Reference： Impact of the Great East Japan Earthquake ■ Residential Earthquake Insurance FY2010 FY2011 No impact on P/L because reversal of Incurred losses residential earthquake insurance reserve (primary) ¥56.0 B ¥241.8 B offsets incurred losses ■ Private Insurance basis (excluding Residential Eart
Slide 20: Reference: FY2011 Results of Adjusted Earnings
Reference：FY2011 Results of Adjusted Earnings ■ Adjusted Earnings by Business Domain （billions of yen） FY2011 FY2010 FY2011 Business Domain Results Revised Results – Major Factors for the Changes in FY2011 Projections Change （compared with the revised projections announced in Domestic Non-Life 20.4
Slide 21: Reference: TMNF FY2011 Results
Reference：TMNF FY2011 Results ■ Breakdown by Major Item (billions of yen) FY2011 FY2010 Projections – Underwriting Profit Results Increased by ¥29.9B YoY to a loss of ¥1.1B Change YoY An increase in incurred losses relating to natural disasters Underwriting profit/loss -31.1 -1.1 29.9 -96.3% inclu
Slide 22: Reference: FY2011 Results (TMNF Net Investment Income)
Reference： FY2011 Results (TMNF Net Investment Income) ■ Net Investment Income （billions of yen） +¥16.0B ¥219.7B – Net investment income increased by ¥16.0B YoY to ¥203.7B ¥219.7B 10年度 FY2010 11年度 FY2011 – Net Interest and Dividend Income • Increased by ¥8.1B YoY mainly due to an increase in ■ Detai
Slide 23: Reference: FY2011 Results (TMNF Assets Under Management)
Reference： FY2011 Results (TMNF Assets Under Management) ■ Composition of assets under management （trillions of yen） ■ Status of investments in bonds of European countries （sum of major subsidiaries (domestic and overseas) as of March 31, 2012） -¥0.3T 10.0 ¥8.6T （billions of yen） ¥8.3T Otehr Soverei
Slide 24: Reference: FY2011 Results (PHLY / Kiln)
Reference：FY2011 Results (PHLY / Kiln) ■ Philadelphia Net Premiums Written ($2,034M): Increased by 3% YoY, driven by maintaining high retention rate and writing new accounts which contribute to high profitability Adjusted Earnings ($170M): Decreased by 40% YoY due to the impact of natural catast
Slide 25: Reference: Definition of Adjusted Earnings and Adjusted ROE
Reference: Definition of Adjusted Earnings and Adjusted ROE 1. Adjusted earnings*1 (1) Property and casualty insurance business Extraordinary Provision f or Gains or losses f rom Provision f or Gains or losses f rom gains/losses, A djusted = Net + + reserves f or - sales or valuations of - - catastr
Slide 26: 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