Ms&ad Insurance Group Holdings, Inc. · TSE:8725
Ms&ad Insurance — FY2022 Earnings Presentation
40 slides from Ms&ad Insurance's earnings presentation, May 19, 2023
Slide 1: Materials for FY2022 Results Briefing – Conference Call
Materials for FY2022 Results Briefing – Conference Call May 19, 2023 (Fri.) MS&AD Insurance Group Holdings, Inc. 1
Slide 2: Today’s Key Points
Today’s Key Points FY2022 Results ・ Net premiums written increased by 325.4 billion yen year on year to 3,934.4 billion yen due to increases in both domestic non-life insurance subsidiaries and overseas insurance subsidiaries. ・ Net income decreased by 101.2 billion yen year on year to 161.5 billion
Slide 3: Contents
Contents Summary of FY2022 Results Consolidated Earnings P5-13 Domestic Non-Life Insurance Companies P14-16 Domestic Life Insurance Companies P17-18 Overseas Subsidiaries P19 (Reference) Domestic Non-Life Insurance Companies(MSI&ADI) P20-22 (Reference) MS Amlin's Results for FY2022 (Jan.-Dec. 2022)
Slide 4: Summary of FY2022 Results
Summary of FY2022 Results MS&AD Insurance Group Holdings, Inc. 4
Slide 5: Consolidated Earnings for FY2022 (1) - Overview (i) (Top line)
Consolidated Earnings for FY2022 (1) - Overview (i) (Top line) Non-life insurance subsidiaries （¥bn） FY2021 FY2022 Results Results YoY Change Growth Direct premiums written 3,821.5 4,095.6 274.1 7.2% (excl. deposit premiums from policyholders) Net premiums written 3,609.0 3,934.4 325.4 9.0% Mitsui S
Slide 6: Consolidated Earnings for FY2022 (1) - Overview (i) (Top Line)
Consolidated Earnings for FY2022 (1) - Overview (i) (Top Line) (Non-life insurance subsidiaries [domestic & overseas]) • Net premiums written increased by 325.4 billion yen year on year, or 9.0% yen due to increases in both domestic non-life insurance subsidiaries and overseas insurance subsidiaries
Slide 7: Consolidated Earnings for FY2022 (1) - Overview (ii) (Bottom line)
Consolidated Earnings for FY2022 (1) - Overview (ii) (Bottom line) (¥bn) FY2021 FY2022 FY2022 Revised Forecast Announced in Results Results YoY Change Change Ratio Progress Nov. 2022 Ordinary profit/loss 390.4 231.1 - 159.3 - 40.8% 220.0 - Mitsui Sumitomo Insurance 184.2 141.2 - 43.0 - 23.3% 159.0 -
Slide 8: Consolidated Earnings for FY2022 (1) - Overview (ii) (Bottom Line) [Net Income]
Consolidated Earnings for FY2022 (1) - Overview (ii) (Bottom Line) [Net Income] (Group consolidated) • Net income decreased by 101.2 billion to 161.5 billion yen which exceeded the revised forecast announced in November 2022 by 21.5 billion yen. (Domestic non-life insurance subsidiaries) • Underwrit
Slide 9: Consolidated Earnings for FY2022 (2) – YoY Results Comparison (i)
Consolidated Earnings for FY2022 (2) – YoY Results Comparison (i) • Net income at (7) two domestic non-life insurance companies combined decreased by 48.6 billion yen mainly due to an increase of (2)Incurred losses. Net income at (8)Domestic life insurance subsidiaries decreased by 41.6 billion yen
Slide 10: Consolidated Earnings for FY2022 (2) – YoY Results Comparison (ii)
Consolidated Earnings for FY2022 (2) – YoY Results Comparison (ii) Factors in YoY changes in consolidated net income （¥bn） FY2021 FY2022 YoY Change Results Results Consolidated net income/loss 262.7 161.5 - 101.2 1 Domestic non-life insurance* : Underwriting profit/loss (excl. residential 71.5 - 15.
Slide 11: Consolidated Earnings for FY2022 (3) – Group Adjusted Profit
Consolidated Earnings for FY2022 (3) – Group Adjusted Profit • Group Adjusted Profit exceeded the revised forecast of 170.0 billion yen announced in Nov 2022 despite declines on “Domestic non-life insurance business”, “Domestic life insurance business”, “International business” and “Financial servic
Slide 12: Consolidated Earnings for FY2022 (4) – Impact of Natural Catastrophes
Consolidated Earnings for FY2022 (4) – Impact of Natural Catastrophes • Domestic natural catastrophe loss was 97.4 billion yen (of which Fire insurance: 65.7 billion yen, Voluntary Automobile Insurance: 27.5 billion yen). • Overseas natural catastrophe loss was 47.9 billion yen. Impact of domestic n
Slide 13: Consolidated Earnings for FY2022 (5) – Impact of COVID19 related loss in 2022
Consolidated Earnings for FY2022 (5) – Impact of COVID19 related loss in 2022 ・ COVID19 related losses at domestic non-life insurance companies was 29.0 billion yen, 15.8 billion yen for domestic life insurance subsidiaries and 25.0 billion yen for overseas insurance subsidiaries(MSIG Mingtai in Tai
Slide 14: Domestic Non-Life Insurance Companies (1) – MSI & ADI Results for FY2022 (i)
Domestic Non-Life Insurance Companies (1) – MSI & ADI Results for FY2022 (i) • Underwriting profit prior to reflecting catastrophe reserve decreased by 199.4 billion yen to -54.1 billion yen, mainly due to an increase in incurred losses in voluntary automobile insurance following to the traffic volu
Slide 15: Domestic Non-Life Insurance Companies (1) – MSI & ADI Results for FY2021 (ii)
Domestic Non-Life Insurance Companies (1) – MSI & ADI Results for FY2021 (ii) • Investment profit and other ordinary profit increased by 29.5 billion yen due to an increase in gains on sales of securities from strategic equity holdings reduction acceleration, increase in net interest and dividends i
Slide 16: Domestic Non-Life Insurance Companies FY2022 (2) – Voluntary Auto Insurance
Domestic Non-Life Insurance Companies FY2022 (2) – Voluntary Auto Insurance • The cumulative number of accidents at the end of March increased by 4.5% year-on-year due to the recovery of traffic volume. (compared to Dec 2019: decreased by -2.8%) • E/I loss ratio increased by 6.7 points year-on-year
Slide 17: Domestic Life Insurance / MSI Aioi Life - Results for FY2022
Domestic Life Insurance / MSI Aioi Life - Results for FY2022 • Annualized premium of new policies increased by 1.0% year on year mainly due to an increase in new products such as cancer insurance. • Net income decreased by 8.3 billion yen mainly due to claim payment increase following to Covid-19 im
Slide 18: Domestic Life Insurance / MSI Primary Life - Results for FY2022
Domestic Life Insurance / MSI Primary Life - Results for FY2022 • Gross premiums income increased by 50.2% due to the increasing needs for foreign currency-denominated products as a result of rising foreign interest rates and the development of sales activities. • Net income decreased by 33.2 billio
Slide 19: Overseas Subsidiaries - Results for FY2022
Overseas Subsidiaries - Results for FY2022 • Net premiums written increased by 231.1 billion yen to 934.1 billion yen mainly due to an increase in Europe including MS Amlin as a result of premium rate increase and new business increase as well as an increase in Asia and U.S. and the impact of exchan
Slide 20: <Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 (1)
<Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 (1) Net premiums written (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) FY2021 FY2022 FY2022 FY2022 Results Results Growth Results Growth Results Growth Fire and allied 436.2 490.7 12.5% 266.0 12.4% 224.
Slide 21: <Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 (2)
<Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 (2) EI loss ratio (Simple sum) EI Loss Ratio EI Loss Ratio (excl. impact of nat. cat.) FY2021 FY2022 FY2021 FY2022 Results Results YoY Change Results Results YoY Change Fire and allied (excl. 80.5% 80.3% -0.2pp 64.3% 62
Slide 22: <Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 (3)
<Reference> Domestic Non-Life Insurance Companies – MSI & ADI Results for FY2022 (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) Resu
Slide 23: <Reference> MS Amlin’s Results for FY2022 (Jan.–Dec. 2022)
<Reference> MS Amlin’s Results for FY2022 (Jan.–Dec. 2022) *1 ・Underwriting profit was £63 million (YoY: +£260 million). All insurance entities contributed towards the profit despite the impact of large natural catastrophes such as Hurricane Ian, Russia-Ukraine related losses and inflation. ・ Net in
Slide 24: <Reference> ESR
<Reference> ESR ESR*1 <Factors behind ESR change> (vs. end of March 2022) Integrated Risk Amount *2 Net Asset Value ESR stays at same level as (ref.) UFR applied end of March 2022 Net Assets Value declined due 228% 228% (¥tn) to the redemption of (235%) (231%) subordinated bonds and business inves
Slide 25: Earnings Forecast for FY2023
Earnings Forecast for FY2023 MS&AD Insurance Group Holdings, Inc. 24
Slide 26: Consolidated Earnings Forecasts for FY2023 (1) (i) (Top line)
Consolidated Earnings Forecasts for FY2023 (1) (i) (Top line) • Net premiums written are expected to increase by 149.5 billion yen. Domestic non-life insurance subsidiaries are expected to increase mainly due to an increase in voluntary auto and casualty insurance despite a decrease in fire insuranc
Slide 27: Consolidated Earnings Forecasts for FY2023 (1) (ii) (Bottom line)
Consolidated Earnings Forecasts for FY2023 (1) (ii) (Bottom line) • Net income is expected to increase by 138.4 billion yen to 300.0 billion yen mainly due to an increase at overseas insurance subsidiaries, domestic non-life insurance subsidiaries and domestic life insurance subsidiaries. • Net inco
Slide 28: Consolidated Earnings for FY2023 (2) - Year-on-Year Comparison
Consolidated Earnings for FY2023 (2) - Year-on-Year Comparison • Net income increased by 138.4 billion yen mainly due to an increase in (7) Domestic non-life insurance, (8) Domestic life insurance subsidiaries and (9) Overseas subsidiaries. • Domestic non-life total is expected to increase by 50.9 b
Slide 29: Group Adjusted Profit for FY2023 (3)
Group Adjusted Profit for FY2023 (3) • Group Adjusted Profit is expected to increase by 177.2 billion yen to 350,0 billion yen mainly due to an increase of profit in domestic non-life, domestic life insurance, international business. Lowered by 50.0 billion yen from Medium Tem Management Plan target
Slide 30: Major Assumptions for Earnings Forecasts for FY2023
Major Assumptions for Earnings Forecasts for FY2023 (¥bn) Mitsui Sumitomo Insurance Aioi Nissay Dowa Insurance Assumes the level at the end of March 2023 Assumptions concerning the financial Nikkei average : ￥28,041 market environment USD$1 = JPY￥134 EUR€1 = JPY￥146 GBP￡1 = JPY￥166 Domestic natural
Slide 31: Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI) (i)
Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI) (i) (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) YoY Change YoY Change YoY Change 1 Net premiums written* 2,978.0 12.6 1,618.0 - 11.8 1,360.0 24.4 Earned premiums*2,*3 2,726.3 82.5 1,497.9 28.0 1,228.4
Slide 32: Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI) (ii)
Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI) (ii) (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) YoY Change YoY Change YoY Change Underwriting profit/loss 108.0 123.2 58.0 73.9 50.0 49.3 Net interest and dividends income 151.9 - 7.2 104.4 - 5.0 47.5
Slide 33: Earnings Forecasts for FY2023 – Domestic Life Insurance Companies – MSI Aioi Life
Earnings Forecasts for FY2023 – Domestic Life Insurance Companies – MSI Aioi Life Key financial data (¥bn) FY2022 FY2023 (Forecast) Results Forecast YoY Change Amount of new policies* 1,456.6 1,312.0 -9.9% Annualized premiums of new policies* 27.1 29.3 7.8% Amount of policies in force* 23,249.9 22,7
Slide 34: Earnings Forecasts for FY2023 – Domestic Life Insurance Companies – MSI Primary Life
Earnings Forecasts for FY2023 – Domestic Life Insurance Companies – MSI Primary Life Key financial data (¥bn) FY2022 FY2023 Results Forecast YoY Change Amount of new policies 1,279.8 1,077.2 - 15.8% Amount of policies in force 6,932.2 7,113.0 2.6% Gross premiums income 1,220.4 1,004.0 - 216.4 Ordina
Slide 35: Earnings Forecasts for FY2023 – Overseas Subsidiaries
Earnings Forecasts for FY2023 – Overseas Subsidiaries (¥bn) Overseas subsidiaries FY2022 FY2023 Results Forecast YoY Change Net premiums written 934.1 1,070.0 135.8 Asia 222.2 238.7 16.4 Europe 645.3 745.4 100.0 Americas 66.5 85.9 19.3 Net income/loss 15.7 118.0 102.2 Asia 28.5 33.8 5.1 Europe - 22.
Slide 36: <Reference> Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI)(i)
<Reference> Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI)(i) Net premiums written (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) Growth Growth Growth Fire and allied 450.9 -8.1% 246.6 -7.3% 204.3 -9.1% Marine 80.6 -4.0% 73.9 -2.9% 6.7 -14.6% Personal
Slide 37: <Reference> Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI)(ii)
<Reference> Earnings Forecasts for FY2023 – Domestic Non-Life Insurance Companies (MSI&ADI)(ii) EI loss ratio EI Loss Ratio MSI (Non-consolidated) ADI (Non-consolidated) Simple Sum YoY Change YoY Change YoY Change Fire and allied 68.1% -12.2pp 70.6% -6.0pp 65.1% -19.6pp Marine 51.4% -8.8pp 51.1% -7.
Slide 38: <Reference> MS Amlin’s Result Forecast for FY2023 (Jan.-Dec. 2023)
<Reference> MS Amlin’s Result Forecast for FY2023 (Jan.-Dec. 2023)*1 ・Most overseas subsidiaryies’ financial statements including MS Amlin’s, are prepared in accordance with new IFRS accounting standards (IFRS 17, “Insurance Contracts” and IFRS 9, “Financial instruments”). FY2023 forecasts have been
Slide 39: 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 40: Definition of “Group Adjusted Profit” Caution About Forward-Looking Statements
Definition of “Group Adjusted Profit” 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-consolidated group companies Ad
MS&AD Insurance Group Holdings — FY2022 Earnings Presentation on 6ix