Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — Investor Presentation (September 2025)
30 slides from Tokio Marine's investor presentation, Sep 30, 2025
Slide 1: Tokio Marine Insights: IFRS and ICS Implementation Overview
Tokio Marine Insights: IFRS and ICS Implementation Overview September 30, 2025
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 ・・・・・・
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
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
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
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
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,
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
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
Slide 10: Impact of IFRS and ICS Implementation
Impact of IFRS and ICS Implementation Copyright (c) 2025 Tokio Marine Holdings, Inc. 9
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
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
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
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
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
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
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
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
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
Slide 20: (Reference) Definitions, etc.
(Reference) Definitions, etc. Copyright (c) 2025 Tokio Marine Holdings, Inc. 19
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
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
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
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
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
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
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
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
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
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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