Ms&ad Insurance Group Holdings, Inc. · TSE:8725
Ms&ad Insurance — FY2023 Earnings Presentation
49 slides from Ms&ad Insurance's earnings presentation, May 20, 2024
Slide 1: Materials for FY2023 Results Briefing – Conference Call
Materials for FY2023 Results Briefing – Conference Call May 20, 2024 (Mon.) MS&AD Insurance Group Holdings, Inc. 1
Slide 2: Today’s Key Points (FY2023 Results/FY2024 Forecast)
Today’s Key Points (FY2023 Results/FY2024 Forecast) • Net premiums written increased by 328.5 billion yen year on year, or +8.4% to 4,261.7 billion yen. • Net income increased by 158.2 billion yen year on year to 369.2 billion yen. Group adjusted profit increased by 157.7 billion yen to 379.9 billio
Slide 3: Contents
Contents Summary of FY2023 Results Consolidated Earnings P5-9 Domestic Non-Life Insurance Companies P10-13 Domestic Life Insurance Companies P14-16 Overseas Subsidiaries P17-19 Reference P20-26 Earnings Forecast for FY2024 Consolidated Earnings Forecasts P28-33 Domestic Non-Life Insurance Companies
Slide 4: Summary of FY2023 Results
Summary of FY2023 Results MS&AD Insurance Group Holdings, Inc. 4
Slide 5: Group Consolidated
Group Consolidated MS&AD Insurance Group Holdings, Inc. 5
Slide 6: (1) Top line
(1) Top line • Net premium written increased by 328.5 billion yen mainly due to a significant increase in overseas subsidiaries. • Domestic nonlife insurance increased by 27.5 billion yen to 3,027.5 billion yen due to an increase in reinsurance inward from overseas subsidiaries. Overseas insurance s
Slide 7: (2) Bottom line
(2) Bottom line • Net income at two domestic non-life insurance companies (MSI+ADI) increased by 72.7 billion yen mainly due to an increase of (3)Investment profit. • As of net income at (5)Domestic life insurance subsidiaries, MSA life increased by 15.4 billion yen due to a decrease of Covid19 rela
Slide 8: (3) Bottom line (Breakdown by company)
(3) Bottom line (Breakdown by company) †2 FY2022 FY2023 FY2023 annual Forecast (¥bn) Announced in Results Results YoY Change Change Ratio Progress Nov. 2023 Ordinary profit/loss 292.2 416.4 124.1 42.5% 400.0 - Mitsui Sumitomo Insurance 141.2 214.3 73.0 51.8% 180.0 - Aioi Nissay Dowa Insurance 66.7 7
Slide 9: (4) Bottom line (Breakdown of Group adjusted profit)
(4) Bottom line (Breakdown of Group adjusted profit) FY2022 FY2023 FY2023 annual (¥bn) †4 forecast After Disclosed in restrospective †1 (announced YoY Change FY2023 application of in Nov 2023) IFRS17 Group Adjusted Profit 172.7 222.2 379.9 157.7 280.0 Domestic non-life insurance business 118.0 118.3
Slide 10: Domestic Non Life Insurance Companies
Domestic Non Life Insurance Companies MS&AD Insurance Group Holdings, Inc. 10
Slide 11: (1) Bottom line (MSI+ADI)
(1) Bottom line (MSI+ADI) • Underwriting profit (before catastrophe reserve) decreased due to an increase in (2)automobile insurance losses and (3)natural catastrophe losses despite an increase in (1)Earned premiums of and automobile insurance and fire insurance. • Investment profit increased due to
Slide 12: (2) Voluntary automobile insurance
(2) Voluntary automobile insurance • The cumulative number of accidents at the end of March 2023 increased by 3.8%. • E/I loss ratio increased by 7.3 points year-on-year to 70.9%. Number of accidents (Domestic business only, per day, E/I loss ratio excl. the number of accidents caused by natural cat
Slide 13: (3) Impact of Natural Catastrophes
(3) Impact of Natural Catastrophes • Domestic natural catastrophe losses (MSI+ADI) increased by 12.0 billion yen in Automobile insurance, and 16.0 billion yen in total year on year mainly due to hailstorm in Gunma in July 2023. • Overseas natural catastrophe losses increased by 1.3 billion yen year
Slide 14: Domestic Life Insurance Companies
Domestic Life Insurance Companies MS&AD Insurance Group Holdings, Inc. 14
Slide 15: (1) MSA Life
(1) MSA Life • Annualized premiums of new policies for third sector increased by 5.9% year-on-year due to the introduction of medical insurance with relaxed underwriting conditions and long-term care insurance. • Net income increased by 15.4 billion yen to 28.1 billion yen, record high mainly due to
Slide 16: (2) MSP Life
(2) MSP Life • Gross premium increased by 10.9% due to favorable market conditions to 1,353.5 billion yen, record high. • Ordinary profit decreased mainly due to an increase in the provision of policy reserve for foreign currency denominated insurance, despite an increase in interest and dividend in
Slide 17: Overseas subsidiaries
Overseas subsidiaries MS&AD Insurance Group Holdings, Inc. 17
Slide 18: (1) Results summary
(1) Results summary • Net premiums written of overseas insurance subsidiaries increased in Europe, Asia and the U.S. due to the expansion of new business and an increase in insurance premium rates. • Net income increased by 87.2 billion yen (Increased by 138.0 billion yen compared to the figure disc
Slide 19: (2) <Reference> MS Amlin’s financial result for Jan-Dec 2023
(2) <Reference> MS Amlin’s financial result for Jan-Dec 2023 ✝1 • Insurance service profit was £457mn, an improvement of £347mn year-on-year, driven by top-line growth mainly due to market hardening, business expansion of MS Re, and improvements in profitability through enhancing the underwriting po
Slide 20: Reference
Reference MS&AD Insurance Group Holdings, Inc. 20
Slide 21: Domestic Non-Life Insurance Companies (MSI&ADI) Results (i)
Domestic Non-Life Insurance Companies (MSI&ADI) Results (i) （¥bn） Simple Sum (MSI+ADI) MSI (Non-Consolidated) ADI (Non-Consolidated) YoY YoY YoY Change Change Change Net premiums written†1 2,992.2 26.9 1,623.3 - 6.5 1,368.9 33.4 Earned premiums †2†3 2,748.4 104.6 1,515.8 46.0 1,232.5 58.6 Incurred l
Slide 22: Domestic Non-Life Insurance Companies (MSI&ADI) Results (ii)
Domestic Non-Life Insurance Companies (MSI&ADI) Results (ii) (¥bn) Simple Sum (MSI+ADI) MSI (Non-Consolidated) ADI (Non-Consolidated) YoY YoY YoY Change Change Change Underwriting profit/loss - 12.4 2.7 20.7 36.6 - 33.1 - 33.8 Net interest and dividends income 188.2 29.1 129.4 19.9 58.8 9.1 Gains/lo
Slide 23: Domestic Non-Life Insurance Companies Results by class: Net premiums written
Domestic Non-Life Insurance Companies (MSI&ADI) Results by class Net premiums written (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) FY2022 FY2023 FY2023 FY2023 Results Results Growth Results Growth Results Growth Fire and allied 490.7 457.9 -6.7% 250.5 -5.8% 207.3 -7.7% Marine 83.9
Slide 24: EI loss ratio by class (MSI+ADI)
Domestic Non-Life Insurance Companies ((i) MSI+ADI) :EI loss ratio by class EI loss ratio (Simple sum of MSI+ADI) EI Loss Ratio EI Loss Ratio (excl. impact of nat. cat.) FY2022 FY2023 FY2022 FY2023 Results Results YoY Change Results Results YoY Change Fire and allied (excl. 80.3% 76.2% -4.1pp 62.3%
Slide 25: EI loss ratio by class (MSI, ADI)
Domestic Non-Life Insurance Companies ((ii)MSI&ADI) :EI loss ratio by class 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) Results YoY C
Slide 26: <Reference> Economic Solvency Ratio (ESR)
<Reference> Economic Solvency Ratio (ESR) ESR✝1 Integrated Risk Amount†2 Net Asset Value (¥tn) Main factors behind changes in ESR (Versus end of March, 2023) 228% 229% ESR increased by +1pp compared to end of March 2023 6.7 Increase factor 5.4 *Risk amount reduction due to the sales of strategic equ
Slide 27: Earnings Forecast for FY2024
Earnings Forecast for FY2024 MS&AD Insurance Group Holdings, Inc. 27
Slide 28: Group Consolidated
Group Consolidated MS&AD Insurance Group Holdings, Inc. 28
Slide 29: (1) Top line
(1) Top line • Net premiums written of domestic non-life insurance subsidiaries are expected to increase by 338.2 billion yen mainly due to an increase in fire insurance and automobile insurance. Overseas subsidiaries are expected to increase by 252.3 billion yen mainly due to an increase at AUL and
Slide 30: (2) Bottom line (YoY change)
(2) Bottom line(YoY change) • Domestic non life insurance net income is expected to increase by 315.1 billion yen mainly due to an increase in (1)Underwriting profit and (3)Investment profit/loss and others following to the sales of strategic equity holdings. • Domestic life insurance net income is
Slide 31: (3) Bottom line
(3) Bottom line (¥bn) FY2023 FY2024 Forecast Results YoY Change Ordinary profit/loss 416.4 871.0 454.5 Mitsui Sumitomo Insurance 214.3 606.0 391.6 Aioi Nissay Dowa Insurance 79.0 129.0 49.9 † Net income/loss 369.2 610.0 240.7 Mitsui Sumitomo Insurance 167.7 453.0 285.2 Aioi Nissay Dowa Insurance 56.
Slide 32: (4) Bottom line (Group adjusted profit)
(4) Bottom line (Group adjusted profit) • Group Adjusted Profit is expected to increase by 250.0 billion yen to 630,0 billion yen mainly due to an increase of strategic equity holdings sales profit. • Replacement of bonds at MSI, ADI, and MSA Life will be planned and result in a loss on sales of app
Slide 33: Major Assumptions for Earnings Forecasts for FY2024
Major Assumptions for Earnings Forecasts for FY2024 (¥bn) Mitsui Sumitomo Insurance Aioi Nissay Dowa Insurance Assumes the level at the end of March 2024 (Sales of Strategic equity holdings are based on stock market price at the end of April 2024) Assumptions concerning the financial Reference(End o
Slide 34: Domestic Non Life Insurance Companies
Domestic Non Life Insurance Companies MS&AD Insurance Group Holdings, Inc. 34
Slide 35: (1) Bottom line (MSI+ADI)
(1) Bottom line (MSI+ADI) • Underwriting profit (before catastrophe reserve) is expected to increase due to an (1)Earned premium increase following to the impact of rate up of automobile insurance(Jan 2024) and rate up of fire insurance in spite of the loss increase of automobile insurance and domes
Slide 36: Domestic Life Insurance Companies
Domestic Life Insurance Companies MS&AD Insurance Group Holdings, Inc. 36
Slide 37: (1) MSA Life Key financial data
(1) MSA Life • FY2024 forecast for net income is 5 billion yen, including a loss on sales of bonds due to the replacement of bonds. Key financial data (¥bn) FY2023 FY2024 (Forecast) Results Forecast YoY Change Amount of new policies† 1,292.8 1,383.7 7.0% Annualized premiums of new policies† 26.9 27.
Slide 38: (2) MSP Life Key financial data
(2) MSP Life • FY2024 forecast is expected to be at the same level as the previous fiscal year Key financial data (¥bn) FY2023 FY2024 Results Forecast YoY Change Amount of new policies 1,437.0 1,359.4 - 5.4% Amount of policies in force 7,905.7 8,286.4 4.8% Gross premiums income 1,353.5 1,205.0 - 148
Slide 39: Overseas subsidiaries
Overseas subsidiaries MS&AD Insurance Group Holdings, Inc
Slide 40: (1) Financial Results Forecast for FY2024
(1) Financial Results Forecast for FY2024 Overseas subsidiaries (¥bn) FY2023 FY2024 Results Forecast YoY Change Net premiums written 1,233.6 1,486.0 252.3 AUL(Lloyd's business) 235.6 295.7 60.0 MS Re（Reinsurance business) 406.7 495.5 88.7 Europe(excluding AUL and MS Re) 240.0 265.5 25.3 Americas 101
Slide 41: <Reference> MS AUL’s Result Forecast for FY2024
<Reference> MS AUL’s Result Forecast for FY2024 (Jan.-Dec. 2024)†1 • Net income of ￡122mn is anticipated (a decrease of ￡74mn year-on-year). • Insurance service profit is expected to be £156mn (a decrease of 88mn year-on-year as 2023 benefitted to some extent from lower than planned natural catastro
Slide 42: <Reference> MS Re’s Result Forecast for FY2024
<Reference> MS Re’s Result Forecast for FY2024 (Jan.-Dec. 2024)†1 • Net income of $301mn is anticipated (a decrease of $66mn year-on-year). Excluding the one-off positive impact from recognizing deferred tax assets in the previous year, it effectively results in an increase in profit. • Insurance se
Slide 43: Reference
Reference MS&AD Insurance Group Holdings, Inc
Slide 44: Earnings Forecast for FY2024 (MSI&ADI) (i)
Earnings Forecast for FY2024 (MSI&ADI) (i) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) (¥bn) YoY Change YoY Change YoY Change Net premiums written†1 3,079.0 86.7 1,664.0 40.6 1,415.0 46.0 Earned premiums†2 2,853.0 104.5 1,554.9 39.0 1,298.1 65.5 Incurred losses (including loss （－） 1,945
Slide 45: Earnings Forecast for FY2024 (MSI&ADI) (ii)
Earnings Forecast for FY2024 (MSI&ADI) (ii) (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) YoY YoY YoY Change Change Change Underwriting profit/loss 76.0 88.4 59.0 38.2 17.0 50.1 Net interest and dividends income 211.8 23.5 150.5 21.0 61.3 2.4 Gains/losses on sales of securities 517.
Slide 46: Domestic Non-life Insurance companies Net premium written by class
Domestic Non-life Insurance companies (MSI&ADI) Net premium written by class Net premiums written (¥bn) Simple Sum MSI (Non-Consolidated) ADI (Non-Consolidated) Growth Growth Growth Fire and allied 503.0 9.8% 265.1 5.8% 237.9 14.7% Marine 77.5 -1.4% 73.4 -0.1% 4.1 -20.4% Personal accident 225.2 2.7%
Slide 47: Domestic Non-Life Insurance Companies EI loss ratio by class
Domestic Non-Life Insurance Companies (MSI&ADI) EI loss ratio by class EI loss ratio Simple Sum MSI (Non-consolidated) ADI (Non-consolidated) YoY Change YoY Change YoY Change Fire and allied 73.8% -2.4pp 73.1% 0.4pp 74.5% -6.0pp Marine 55.3% -3.4pp 54.6% -0.9pp 66.7% -27.6pp Personal accident 57.1%
Slide 48: 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 49: 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 — FY2023 Earnings Presentation on 6ix