Tokio Marine Holdings, Inc. · TSE:8766

Tokio Marine — Investor Presentation (May 2013)

40 slides from Tokio Marine's investor presentation, May 2013

  1. Slide 1: Tokio Marine Group FY2013 Business Plan

    Tokio Marine Group FY2013 Business Plan May 2013 Tokio Marine Holdings, Inc.

  2. Slide 2: Table of Contents

    Table of Contents I. Progress of the Mid-Term Business Plan ・・・・・・・・・・ P. 2 II. Business Plan and Strategy by Each Domain 1. Domestic Non-Life ・・・・・・・・・・ P. 7 2. Domestic Life ・・・・・・・・・・ P. 12 3. International Insurance ・・・・・・・・・・ P. 16 4. Asset Management ・・・・・・・・・・ P. 23 5. ERM & Return to Shareho

  3. Slide 3: I. Progress of the Mid-Term Business Plan

    I. Progress of the Mid-Term Business Plan 2 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  4. Slide 4: Executive Summary

    I -1. Executive Summary  Progress of the Mid-Term Business Plan FY2012 (first year of the Mid-Term Business Plan) achieved steady growth, in line with the plan FY2012 adjusted earnings showed growth as initially planned due to efforts to improve profitability and steady execution of growth strategi

  5. Slide 5: Consolidated Results Overview

    I -2. Consolidated Results Overview  Premiums Income （Net premiums written + Life insurance premiums） Net (billions of yen, except for %) —FY2012 ： premiums written  Net premiums written increased due to revenue growth in domestic non-life business mainly in auto and steady growth at overseas FY20

  6. Slide 6: Progress of the Mid-Term Business Plan

    I -3. Progress of the Mid-Term Business Plan （billions of yen） ■ Adjusted Earnings Each business domain achieved steady growth, 230-260 in line with the Mid-Term Business Plan 226.0 209.1 Domestic (170.3)*1 80 - Non-Life 35% Effect of risk discount rate 90  FY2012 Adjusted Earnings: change: 38.8 48

  7. Slide 7: FY2013 Adjusted Earnings Projections

    I -4. FY2013 Adjusted Earnings Projections  Adjusted Earnings by Business Domain (billions of yen) —Group total adjusted earnings is projected to increase FY2012 FY2013 by ¥16.9B YoY to ¥226.0B, with adjusted ROE projected Results Projections to be 6.6% Change  Domestic Non-Life Domestic Non-Life

  8. Slide 8: II. Business Plan and Strategy by Each Domain

    II. Business Plan and Strategy by Each Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance 4. Asset Management 5. ERM & Return to Shareholders 7 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  9. Slide 9: TMNF FY2013 Projections

    II -1-1. TMNF FY2013 Projections  Net Premiums Written (billions of yen) 1,911.0  Net Premiums Written 1,869.6 Projected to increase by 2.2% YoY to ¥1,911.0B due to product and rate revisions in auto and CALI etc., and the expansion of sales channels 1,783.0 FY2011 FY2012 FY2013 (Results) (Results

  10. Slide 10: TMNF Improving Profitability

    II -1-2. TMNF Improving Profitability Aim to achieve C/R of 95% level in FY2014 through continuous measures to improve profitability, set forth in the Mid-Term Business Plan  Combined Ratio (private insurance: W/P basis)  Improvement in underwriting (excluding natural catastrophes) 97.2% Nat-cat 1

  11. Slide 11: TMNF Improving Profitability in Auto

    II -1-3. TMNF Improving Profitability in Auto Signs of profitability improvement are beginning to appear We will further strengthen measures to achieve the Mid-Term target ■ Loss Ratio  FY2012 Results Loss ratio turned to improve as effects from product and rate revisions in the past began to appea

  12. Slide 12: TMNF Growth Strategy

    II -1-4. TMNF Growth Strategy Achieve No.1 growth in the industry by strengthening customer contacts FY2013 Plan • Super Insurance Expected premiums income: ¥154.8B (net increase by ¥4.8B)* Provide competitive Expected new policies: 290,000 Ratio of professional agents providing Super Insurance: app

  13. Slide 13: Domestic Life

    II. Business Plan and Strategy by Each Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance 4. Asset Management 5. ERM & Return to Shareholders 12 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  14. Slide 14: TMNL FY2013 Projections

    II -2-1. TMNL FY2013 Projections  Annualized Premiums (ANP) (billions of yen) 470.4 518.4  FY2012 Results:  New policy  In-force policy 419.4 – Achieved steady EV increase mainly due to an increase in value of in-force policies owing to strong sales growth. In addition, year-end EV increased sig

  15. Slide 15: TMNL Product Strategy

    II -2-2. TMNL Product Strategy Maintain growth with profitability through sales expansion of "Premium Series" * *:Series of unique products with high added value  ANP for New Policy in Individual Insurance Lineup of "Premium Series" Increased steadily both in first and third sector lines mainly thr

  16. Slide 16: TMNL Channel Strategy

    II -2-3. TMNL Channel Strategy Further integrate life and non-life sales as our priority initiative Further activate sales channels focusing on attractive products  Utilization of Multi Sales Channels (Channel weight as of Mar. 2013*1) *1managerial accounting basis <FY2012 ratio*2 of "Super Insuran

  17. Slide 17: International Insurance

    II. Business Plan and Strategy by Each Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance 4. Asset Management 5. ERM & Return to Shareholders 16 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  18. Slide 18: International Insurance (Overview)

    II -3-1. International Insurance （Overview) Achieve sustainable growth and profit expansion as the growth drivers of Tokio Marine Group International Insurance Business Strategies in the Mid-Term Business Plan Promoting balanced growth in developed and emerging countries  Developed countries: Aim f

  19. Slide 19: International Insurance FY2013 Projections

    II -3-2. International Insurance FY2013 Projections  Net Premiums Written (NPW) and Adjusted Earnings （billions of yen） Net premiums Adjusted International Insurance Business Total written earnings 920.0  Non-life primary 56.0  Reinsurance Net Premiums Written 83.0  Life – Expected to increase

  20. Slide 20: International Insurance FY2013 Projections

    II -3-3. International Insurance FY2013 Projections (billions of yen, except for %) Net Premiums Written Adjusted Earnings FY2012 FY2013 FY2012 FY2013 Results Projections Results Projections As of end- As of end- As of end- As of end- Applied FX rate Dec. 2012 Mar. 2013 Change YoY Dec. 2012 Mar. 201

  21. Slide 21: Philadelphia / Delphi

    II -3-4. Philadelphia / Delphi  Philadelphia Adjusted Earnings FY2013 Projections （billions of yen） 28.0 Expected to increase by ¥3.5B YoY to ¥28.0B 24.5  Aim to achieve steady profit through diversification of business Combined Ratio portfolio by Dynamic Portfolio Optimization（DPO*） 100.0%  Enha

  22. Slide 22: Kiln / Reinsurance

    II -3-5. Kiln / Reinsurance  Kiln Adjusted Earnings FY2013 Projections （billions of yen）(*1) 17.0 Combined Ratio 115.4% Expected to increase by ¥11.4B YoY to ¥17.0B 92.1%  Achieve premium growth by expanding business in non-UK approx. regions and increasing sales of existing specialty products 79%

  23. Slide 23: Emerging Markets

    II -3-6. Emerging Markets  Key Strategies in Emerging Countries and Net Premiums Written (NPW) （billions of yen） Asia Non-Life Asia Life South & Central America Non-Life 95.0 56.0 96.0 79.9 51.3 79.7 56.5 32.9 60.4 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 (Results) (Results) (

  24. Slide 24: Asset Management

    II. Business Plan and Strategy by Each Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance 4. Asset Management 5. ERM & Return to Shareholders 23 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  25. Slide 25: Asset Management

    II -4. Asset Management  Group Asset Management Concept Each group company aims to contribute to the improvement of the Group's corporate value by executing investment operations that take into account the circumstances of their insurance liabilities and capital, as well as their business area and

  26. Slide 26: ERM & Return to Shareholders

    II. Business Plan and Strategy by Each Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance 4. Asset Management 5. ERM & Return to Shareholders 25 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  27. Slide 27: Enterprise Risk Management (ERM)

    II -5-1. Enterprise Risk Management (ERM) Maintain financial soundness Improve profitability Balance risk and capital to maintain Sustainable profit growth and AA credit ratings improving capital efficiency • Improve natural catastrophe risk management • Invest in new businesses to improve capital e

  28. Slide 28: Return to Shareholders

    II -5-2. Return to Shareholders Attractive dividends Flexible share repurchases  The primary means of shareholder returns is dividends, which we plan to increase in line with profit growth  The target payout ratio level is 40% to 50% of average adjusted earnings (excluding EV)  Expected FY2012 ye

  29. Slide 29: Reference

    Reference 28 Copyright (c) 2013 Tokio Marine Holdings, Inc.

  30. Slide 30: Tokio Marine Holdings Key Statistics - 1

    Reference Tokio Marine Holdings Key Statistics - 1 FY2013 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Projections Ordinary income *1 2,929.0 bn yen 2,775.7 bn yen 2,899.4 bn yen 3,399.9 bn yen 4,218.5 bn yen 3,710.0 bn yen 3,503.1 bn yen 3,570.8 bn yen 3,288.6 bn yen

  31. Slide 31: Tokio Marine Holdings Key Statistics - 2

    Reference Tokio Marine Holdings Key Statistics - 2  Adjusted Earnings / Adjusted Earnings (excluding EV) and Return to Shareholders (billions of yen, unless otherwise stated below) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Adjusted earnings 138.7 169.7 143.2 -52.5 165.4 72.0 -19.5 209

  32. Slide 32: Factors of Change in Adjusted Capital

    Reference Factors of Change in Adjusted Capital (billions of yen) + 52.5 + 29.2 3,417.3 + 71.5 + 0.1 + 344.6 + 129.5 2,829.9 - 40.2 Items of net assets Adjustment items Adjusted capital Dividends Net income Unrealized Foreign Others Value of Reserves of Adjusted capital as of 3/E 2012 gains on curre

  33. Slide 33: Impact of FX Rate Change on the Group's Financial Results

    Reference Impact of FX Rate Change on the Group's Financial Results  Main impact in the event of 1 yen depreciation*1 (estimate) Impact on P/L Impact on B/S 1. Increase in profit from overseas subsidiaries  Increase in yen based net asset value of converted into yen ： overseas subsidiaries ： appro

  34. Slide 34: Asset Management - Status of Investments

    Reference Asset Management - Status of Investments ■ Status of investments in bonds of European countries (Sum of major subsidiaries (domestic and overseas) as of the end of FY2012) (billions of yen) Other Sovereign bonds (corporate bonds, etc.) European countries total 138.9 124.8 (Five countries*)

  35. Slide 35: Mid-Term Business Plan Overview

    Reference Mid-Term Business Plan "Innovation and Execution 2014" Overview  Expand Profit  Improve Capital Efficiency  Improve the combined ratio in our domestic non-life  Continue reducing the risks associated with business-related insurance business equities  Sustainable growth in the domestic

  36. Slide 36: Plan for Achieving the Target Combined Ratio (TMNF)

    Reference Mid-Term Business Plan Plan for Achieving the Target Combined Ratio (TMNF) Improve profitability to achieve a combined ratio ("C/R") at a 95% level by FY2014 (Private insurance basis) FY2011 C/R ：103.3% FY2014 C/R ：95% Improve operational efficiency  Lowering corporate expenses and achiev

  37. Slide 37: Objectives in the Mid-Term Business Plan (TMNL)

    Reference Mid-Term Business Plan Objectives in the Mid-Term Business Plan (TMNL) Target an aggregate Adjusted Earnings (EV increase) of ¥180B * *excluding capital transactions  Fiscal Year-end EV (billions of yen)  Annualized Premiums （billions of yen） CAGR • New Policies approx. 10% 80.6 81.0 app

  38. Slide 38: Objectives in the Mid-Term Business Plan (International Insurance)

    Reference Mid-Term Business Plan Objectives in the Mid-Term Business Plan (International Insurance Business) ■ Adjusted Earnings (billions of yen) ■ Business and Geographical Portfolio Breakdown （Adjusted Earnings basis） Asia Life 100.0 4% Reinsurance 90.0 12% Delphi 19% Life approx. 14% Kiln Reinsu

  39. Slide 39: Definition of Adjusted Earnings

    Reference Definition of Adjusted Earnings 1. Adjusted earnings*1 (1) Property and casualty insurance business Extraordinary Provision for Gains or losses from Provision for Gains or losses from gains/losses, Adjusted = Net + + reserves for - sales or valuations of - - catastrophe sales or valuations

  40. Slide 40: 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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