Tokio Marine Holdings, Inc. · TSE:8766

Tokio Marine — Investor Presentation (September 2025)

30 slides from Tokio Marine's investor presentation, Sep 30, 2025

  1. Slide 1: Tokio Marine Insights: IFRS and ICS Implementation Overview

    Tokio Marine Insights: IFRS and ICS Implementation Overview September 30, 2025

  2. Slide 2: Table of Contents

    Table of Contents Highlights (Reference) Definitions, etc. – Key Messages ・・・・・・ 2 – IFRS Overview ・・・・・・ 20 – Executive Summary ・・・・・・ 3 – Group Accounting Policy ・・・・・・ 21 – Insurance Accounting Impact・・・・・・ 22 – Financial Instruments Accounting Impact ・・・・・・ 23 – Combined Ratio Definition ・・・・・・

  3. Slide 3: Key Messages

    Key Messages  The implementation of IFRS from FY2026 aims to enhance our transparency and comparability with global peers through a transition from financial accounting-based JGAAP to an economic value-based accounting in line with ERM New KPIs  New KPIs will reflect our capabilities accurately an

  4. Slide 4: Executive Summary: New KPI Definition

    Executive Summary: New KPI Definition  Adjusted Net Income and Adjusted ROE, the new KPIs post-IFRS implementation are designed to reflect our capability accurately and emphasize comparability with global peers IFRS Adjusted Net Income = IFRS Net Income - Capital Gains/Losses - ALM & Hedge-Related

  5. Slide 5: Executive Summary: Adjusted Net Income

    Executive Summary: Adjusted Net Income  IFRS Adjusted Net Income is raised compared to the current definition (excl. gains form sales of business-related equities) due to the impact of insurance liabilities evaluated on the economic value basis in Japan P&C / Life and the exclusion of capital gains

  6. Slide 6: Executive Summary: Adjusted ROE

    Executive Summary: Adjusted ROE  IFRS Adjusted ROE is impacted by the increase in Adjusted Net Income and Adjusted Net Assets, respectively FY2024 Actual 22.7 % 11.4 % 12.8 % Approx. Accounting Standard Change in Definition Differences -11.3pt +2.5pt - 2.1pt +1.0pt - 2.2pt Excl. Unrealized +2.2pt I

  7. Slide 7: Executive Summary: Shareholder Returns

    Executive Summary: Shareholder Returns  The 3-year average of IFRS Adjusted Net Income will be applied as the source of dividends starting from FY2026  Even though gains from the sales of business-related equities will no longer be included in Adjusted Net Income after the implementation of IFRS,

  8. Slide 8: Executive Summary: ESR

    Executive Summary: ESR  ESR*1 will be redefined along with the implementation of the new economic value-based solvency regulations*2 considering comparability with global peers and alignment with the new regulations*3 Confidence Level for Risk Amount Calculation: 99.5% VaR Definition of New ESR Res

  9. Slide 9: Executive Summary: ESR Target

    Executive Summary: ESR Target  ESR is defined as an indicator of financial soundness, with a target of "190% or higher" ESR 285% ESR Target (End of March 2025) Flexibly consider and execute 190% or higher Target : capital utilization measures 190% or higher to enhance ROE Define ESR as an indicator

  10. Slide 10: Impact of IFRS and ICS Implementation

    Impact of IFRS and ICS Implementation Copyright (c) 2025 Tokio Marine Holdings, Inc. 9

  11. Slide 11: Business Unit KPIs

    Business Unit KPIs Group Japan Life Japan P&C International  Business Unit KPIs will change from the current "Business Unit Profits" to Adjusted Net Income basis, which is in line with Group Adjusted Net Income*1 FY2024 Actual Result FY2025 Forecast Current Increase/ Current Increase/ (billions of

  12. Slide 12: Impact on Japan P&C Business

    Group Japan Life Impact on Japan P&C Business Japan P&C International  IFRS Adjusted Net Income for the Japan P&C Business will increase primarily due to the impact of insurance liabilities evaluated on the economic value basis (billions of JPY) FY2024 Accounting Standards Changes in Definition Act

  13. Slide 13: Impact on Japan Life Business

    Group Japan Life Impact on Japan Life Business Japan P&C International  IFRS Adjusted Net Income for the Japan Life Business will increase primarily due to the impact of insurance liabilities evaluated on the economic value basis (billions of JPY) FY2024 Accounting Standards Changes in Definition D

  14. Slide 14: Impact on International Business

    Group Japan Life Impact on International Business Japan P&C International  IFRS Adjusted Net Income for the International Business will increase primarily due to the definition changes excluding capital gains/losses (billions of JPY) FY2024 Accounting Standards Differences Changes in Definition Act

  15. Slide 15: (Ref.) Breakdown of Impact on International Business

    Group Japan Life (Ref.) Breakdown of Impact on International Business Japan P&C International Breakdown of Adjusted Net Income by major entities (FY2024 Results) (billions of JPY) Accounting Standard Changes in Current Differences Definition IFRS Definitions Insurance liabilities evaluated on Timing

  16. Slide 16: Net Income impact and reconciliation to Adjusted Net Income

    Net Income impact and reconciliation to Adjusted Net Income Group Japan Life Japan P&C International  IFRS-based Net Income decreases compared to JGAAP based Net Income (current definition) primarily due to the derecognition of gains from sales of business-related equities (billions of JPY) <FY2024

  17. Slide 17: Impact on Net Assets

    Group Japan Life Impact on Net Assets Japan P&C International (billions of JPY) <Net Assets> (Average Balance Basis) Approx. 7,400.0 +980.0 Approx. +140.0 Catastrophe loss 5,126.7 Balance difference of reserves, etc. goodwill and Approx. +1,150.0 intangible assets Insurance liabilities evaluated on

  18. Slide 18: Impact on PBR and PER

    Impact on PBR and PER Group Japan Life Japan P&C International  PER will increase primarily due to the exclusion of gains from sales of business-related equities affecting Net Income and Adjusted Net Income after the implementation of IFRS  On the other hand, PBR will decrease because of the incre

  19. Slide 19: Impact on ESR

    Impact on ESR Group Japan Life Japan P&C International <Overview of Differences in ESR Definitions> (Ref.) (Ref.) Current Definition New Definition New Economic Value-Based European Solvency II Solvency Regulations Risk Amount 99.95%VaR 99.5%VaR 99.5%VaR 99.5%VaR Restricted Deduct Restricted Capital

  20. Slide 20: (Reference) Definitions, etc.

    (Reference) Definitions, etc. Copyright (c) 2025 Tokio Marine Holdings, Inc. 19

  21. Slide 21: Overview of IFRS

    Overview of IFRS  IFRS is an international economic value-based accounting standard, and its application is expected to enhance the transparency and comparability of financial information  IFRS 9 and IFRS 17 which uses valuation methods reflecting market prices and the expectations of market parti

  22. Slide 22: Group Accounting Policies

    Group Accounting Policies  Important accounting policies affecting financial results are as follow considering comparability with global peers, volatility reduction in P&L, and other practical constraints Discount Rate for Discount rate is calculated based on an illiquidity premium added on Insuran

  23. Slide 23: Impact on Insurance Accounting

    Impact on Insurance Accounting  Japan P&C: Past unfavorable contracts are measured at fair-value upon IFRS transition, resulting in a raise of profit level compared to JGAAP  Japan Life: Conservative reserve calculation required in JGAAP will be no longer necessary resulting in a raise of profit l

  24. Slide 24: Impact on Financial Instruments Accounting

    Impact on Financial Instruments Accounting  Under IFRS, accounting treatments are required depending on the purpose and nature of holding financial instruments  Bonds and business-related equities are generally classified as FVOCI, while other equities and mutual funds are classified as FVTPL  Ca

  25. Slide 25: Combined Ratio Definition

    Combined Ratio Definition  Combined Ratio under IFRS will be aligned with global peers’ definition  Combined Ratio will lower due to the impact of discounting incurred insurance claims Current Standards IFRS Impact of IFRS Adoption <Loss Ratio raises mainly due to including ceded reinsurance gains

  26. Slide 26: CSM

    CSM  CSM is the future profit from insurance contracts and an important indicator for long term contracts under IFRS. Profits are recognized evenly over the insurance period  CSM balance of Japan Life Business in FY2024 increased by +JPY152bn compared to the beginning of the year before amortizati

  27. Slide 27: Implementation Timeframe

    Implementation Timeframe  IFRS-based forecasts will be announced in May 2026, and IFRS consolidated financial statements will be disclosed in the securities report in June 2026 Upcoming Timeframe FY2025 FY2026 Q3 Q4 Q1 Q2 Q3 Q4 Transition to IFRS-based performance disclosure (Some KPIs under curren

  28. Slide 28: Definitions of Various Indicators (Comparison of Current and New)

    Definitions of Various Indicators (Comparison of Current and New) Adjusted Net Income *1 JGAAP Provision for Provision for Provision for price Provision for Nat Cats Provision for Current adjusted net Income catastrophe loss contingency fluctuation underwriting underwriting result for = + + + + + ne

  29. Slide 29: Glossary

    Glossary Abbreviations/ Official Names/English Definitions/Descriptions Terminology Expressions IFRS International Financial Reporting International Financial Reporting Standards (IFRS). A unified global standard for financial reporting. IFRS 17 Standards (Insurance Contracts) and IFRS 9 (Financial

  30. Slide 30: 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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