Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — Q1 FY2024 Earnings Presentation
32 slides from Tokio Marine's earnings presentation, Aug 6, 2024
Slide 1: Overview of 1Q FY2024 Results
Overview of 1Q FY2024 Results August 6, 2024
Slide 2: Table of Contents
Table of Contents Highlights Reference – Key Messages ・・・・・・ 3 – Reference ・・・・・・ 22 – Executive Summary ・・・・・・ 4 1Q FY2024 Results – Group (Adjusted Net Income) ・・・・・ 7 ◆Abbreviations used in this material – Natural Catastrophes ・・・・・・ 8 TMNF: Tokio Marine & Nichido Fire Insurance TMNL: Tokio Mar
Slide 3: (Blank Page)
(Blank Page) Copyright (c) 2024 Tokio Marine Holdings, Inc. 2
Slide 4: Key Messages: Steady Performance Toward FY2024
Key Messages Progress rate of adjusted net income (excl. capital gains from the sale of business-related equities) was 28% reflecting the impact of (i) the hail damage in Hyogo (c. -JPY34.0bn) and (ii) FX (-JPY25.2bn) on Japan P&C business. Although the progress rate is slightly lower than the 5Y
Slide 5: Executive Summary: Top-Line
Executive Summary: Top-Line TBU Net premiums written made steady progress vs projections considering seasonality, rising +10% YoY (+4% excl. FX) primarily due to the impact of rate increases in Japan and International businesses Life insurance premiums fell -69% YoY (-72% excl. FX) mainly due to
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)] Progress rate of adjusted net income (excl. capital gains from the sale of business-related equities) was 28% reflecting the impact of (i) the hail damage in Hyogo (c. -JPY34.0bn) a
Slide 7: 1Q FY2024 Results
1Q FY2024 Results FX Rate (USD / JPY) [Reference] FY2023 FY2024 End of June JPY144.99 JPY161.07 (Japan) (-JPY11.46 from Mar. 31, 2023) (-JPY9.66 from Mar. 31, 2024) End of March JPY133.53 JPY151.41 (International) (-JPY0.83 from Dec. 31, 2022) (-JPY9.58 from Dec. 31, 2023) Copyright (c) 2024 Tokio M
Slide 8: Group Results: Adjusted Net Income (YoY Change)
Group Japan Life Group Results: Adjusted Net Income (YoY Change) Japan P&C International Adjusted net income increased by +JPY68.8bn YoY mainly due to the strong underwriting results and a rise in investment income in the International business, as well as a rise in gains from the sale of business
Slide 9: Natural Catastrophes
Group Japan Life Natural Catastrophes Japan P&C International Net incurred losses relating to Nat Cats in the 1Q rose by +JPY38.0bn YoY to JPY68.1bn (before-tax) Net incurred losses relating to Nat Cats on a business unit profit basis (billions of JPY) 2023 2024 2024 Full-Year YoY Change*3 Before-
Slide 10: Japan P&C 1: TMNF Results
Group Japan Life Japan P&C 1: TMNF Results Japan P&C International Business unit profit progress rate, excl. the effects of Nat Cats and FX was 35.3%, slightly lower than the 5-year average due to the increase in auto loss cost Actual business unit profit progress rate was low compared to the 5-
Slide 11: Japan P&C 2: TMNF Net Premiums Written
Group Japan Life Japan P&C 2: TMNF Net Premiums Written Japan P&C International Steady +3.3% YoY increase is in line with projections (The FY2024 projection, factoring in product revisions, etc. in 2H, is +4.7%) Top line growth was driven by the realization of the effect of past rate/product rev
Slide 12: Japan P&C 3: TMNF Net Incurred Losses
Group Japan Life Japan P&C 3: TMNF Net Incurred Losses Japan P&C International Progress exceeded FY2024 projections with the increase in provisions for foreign currency- denominated loss reserves due to JPY depreciation(JPY21.9bn, before tax) (The hail damage in Hyogo(c. JPY47.0bn, before tax) is
Slide 13: Japan P&C 4: TMNF Combined Ratio
Group Japan Life Japan P&C 4: TMNF Combined Ratio Japan P&C International E/I loss ratio and combined ratio deteriorated due to an increase in net incurred losses, pushing the ratios above FY2024 projections Expense ratio was in line with FY2024 projections due to both admin. expenses and agency
Slide 14: Japan P&C 5: TMNF Asset Management
Group Japan Life Japan P&C 5: TMNF Asset Management Japan P&C International Net investment income and other made mostly steady progress towards FY2024 projections despite the FX effect (billions of JPY) FY2023 FY2024 FY2024 1Q 1Q YoY Projections Progress Results Results Change rate [Progress towar
Slide 15: Japan Life: TMNL Results
Group Japan Life Japan Life: TMNL Results Japan P&C International Annualized premium of new business in 1Q was in line with FY2024 projections. Increase expected from 2Q with new products launched in July in addition to steady growth for regular premium variable life insurance Business unit prof
Slide 16: International 1: Net Premiums Written
Group Japan Life International 1: Net Premiums Written Japan P&C International Slightly exceeding the plan driven by strong rate increases and new businesses, etc., in North America YoY increase of +4.9% was achieved due to the steady implementation of growth measures by each entity (billions of
Slide 17: International 1: Net Premiums Written (Progress)
Group Japan Life International 1: Net Premiums Written Japan P&C International [Progress towards FY2024 projections] - North America (see pages 19-21 for details on the three main companies) PHLY: Outperformed the plan due to strong rate increase (1Q results: +11%) and new businesses, etc. DFG:
Slide 18: International 2: Business Unit Profits
Group Japan Life International 2: Business Unit Profits Japan P&C International Strong underwriting profit from rates increases, etc., and investment income gains from AUM growth offset slightly higher-than-plan capital losses, resulting in total business unit profits exceeding the plan Profits
Slide 19: International 2: Business Unit Profits (Progress)
Group Japan Life International 2: Business Unit Profits Japan P&C International [Progress towards FY2024 projections] - North America (see pages 19-21 for details on the three main companies) PHLY: Progressed mostly as planned, despite a slight Nat Cats loss increase from the plan, mainly thanks t
Slide 20: International 3: PHLY
Group Japan Life International 3: PHLY Japan P&C International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2023 FY2024 1Q 1Q YoY Results Results (Ref.) As of end As of end YoY % (Excluding FX rates Mar. 2023 Mar. 2024 Change % *2 FX effects ) （USD/JPY） JPY 133.5 JPY 151.4 N
Slide 21: International 4: DFG
Group Japan Life International 4: DFG Japan P&C International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2023 FY2024 1Q 1Q YoY Results Results (Ref.) As of end As of end YoY % (Excluding FX rates Mar. 2023 Mar. 2024 Change % *2 FX effects ) （USD/JPY） JPY 133.5 JPY 151.4 Ne
Slide 22: International 5: TMHCC
Group Japan Life International 5: TMHCC Japan P&C International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2023 FY2024 1Q 1Q YoY Results Results (Ref.) As of end As of end YoY % (Excluding FX rates Mar. 2023 Mar. 2024 Change % *2 FX effects ) （USD/JPY） JPY 133.5 JPY 151.4
Slide 23: Reference
Reference Copyright (c) 2024 Tokio Marine Holdings, Inc. 22
Slide 24: Investment Performance by North American Entities
Investment Performance by North American Entities Investment returns in North America for 1Q was in line with the plan Additional CECL provisions have been booked mainly for CRE loans, resulting in 4.5% provisions for CRE loan balance (average provision by U.S. banks*1 is 2.9%), in 1H (Jan. - Ju
Slide 25: 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 26: 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 27: Reconciliation of Adjusted Net Income: 1Q FY2024 Results
Reconciliation of Adjusted Net Income: 1Q FY2024 Results (billions of JPY) • Reconciliation*1 Note: Factors positive to profit are shown with a plus sign FY2023 1Q FY2024 1Q YoY Change FY2024 Projections Results Results Net income attributable to owners of the parent 127.9 197.3 69.3 870.0 (consolid
Slide 28: Reconciliation of Business Unit Profits: 1Q FY2024 Results
Reconciliation of Business Unit Profits: 1Q FY2024 Results （billions of JPY） Japan P&C*1 （TMNF） Japan Life*1 FY2023 FY2024 FY2023 FY2024 FY2024 FY2024 1Q 1Q YoY 1Q 1Q YoY Projections Projections Results Results Results Results Net income for accounting purposes 88.0 164.1 76.1 588.0 Net income f
Slide 29: Impact of FX Rate Change on the Group's Financial Results
Re-post from Impact of FX Rate Change on the Group’s Financial Results FY2023 Conference Call on May 20, 2024 Estimated impact of the depreciation of JPY 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
Slide 30: MEMO
MEMO Copyright (c) 2024 Tokio Marine Holdings, Inc. 29
Slide 31: MEMO
MEMO Copyright (c) 2024 Tokio Marine Holdings, Inc. 30
Slide 32: 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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