Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — Shareholder Meeting (June 2024)
44 slides from Tokio Marine's shareholder meeting presentation, Jun 24, 2024
Slide 1: Tokio Marine Group Business Strategy
To Our Shareholders The 22nd Ordinary General Meeting of Shareholders Tokio Marine Group Business Strategy June 24, 2024 Satoru Komiya President & Group CEO
Slide 2: Table of Contents
Table of Contents 1 Review and Evaluation of FY2023 P. 3 2 Challenges Facing the Insurance Industry and Tokio Marine P. 7 3 New Mid-Term Plan (1) Core Strategies and Growth Strategies P. 10 4 New Mid-Term Plan (2) Enhancement of Discipline and Initiatives by TMNF P. 21 5 Projections and Shareholder
Slide 3: (Blank Page)
(Blank Page) Copyright (c) 2024 Tokio Marine Holdings, Inc. 2
Slide 4: Review and Evaluation of FY2023
1 Review and Evaluation of FY2023 Copyright (c) 2024 Tokio Marine Holdings, Inc. 3
Slide 5: Response to natural catastrophes
1. Review and Evaluation of FY2023 Response to natural catastrophes As a company operating an insurance business globally, we are not immune to the impact of various events worldwide. We will support customers worldwide in times of need, now and in the future 2024 Noto Peninsula Earthquake Wildfir
Slide 6: FY2023 Adjusted Net Income
1. Review and Evaluation of FY2023 FY2023 Adjusted Net Income FY2023 adjusted net income on actual basis increased by +60% to JPY711.6bn. Driven by strong underwriting performance mainly in North America Adjusted Net Income*1 (billions of JPY) 60 ++60.3% % +52.4 711.6 711.6 +218.3 +218.3 444.0 4
Slide 7: FY2023 Results
1. Review and Evaluation of FY2023 FY2023 Results Net premiums written, one of the benchmarks of support by our customers, increased +6% YoY. Underlying capabilities are steadily improving, with adjusted net income excluding one-off effects such as Nat Cats and COVID-19 increasing +11% YoY Net P
Slide 8: Challenges Facing the Insurance Industry and Tokio Marine
２ Challenges Facing the Insurance Industry and Tokio Marine Copyright (c) 2024 Tokio Marine Holdings, Inc. 7
Slide 9: Business Environment
2. Challenges Facing the Insurance Industry and Tokio Marine Business Environment The world is full of societal challenges and becoming increasingly diverse and complex. The field in which Tokio Marine must play our role is vast Global Warming Intensified Nat Cats Decarbonization Declining Birthra
Slide 10: Our Growth by Resolution of Societal Challenges
2. Challenges Facing the Insurance Industry and Tokio Marine Our Growth by Resolution of Societal Challenges Contribute to the creation of a sustainable society where everyone can live in safety and security and take on any challenges Continue to grow for the next 100 years by steadily meeting t
Slide 11: New Mid-Term Plan (1) Core Strategies and Growth Strategies
New Mid-Term Plan 3 (1) Core Strategies and Growth Strategies Copyright (c) 2024 Tokio Marine Holdings, Inc. 10
Slide 12: New Mid-Term Plan: Inspiring confidence. Accelerating progress.
3. New Mid-Term Plan (1) Core Strategies and 基本戦略 Core Strategy Growth Strategy Growth Strategies New Mid-Term Plan: Inspiring confidence. Accelerating progress. The New MTP will steadily execute “Global Risk Diversification” and “Global Integrated Group Management” as our Global Core Strategies,
Slide 13: Global Risk Diversification
3. New Mid-Term Plan (1) Core Strategies and Core Strategy Global Risk Global Integrated Growth Strategies Diversification Group Management Global Risk Diversification As insurance business involves risk underwriting, diversifying geographic, business, and products risk is critical Losses occur si
Slide 14: M&A as a means
3. New Mid-Term Plan (1) Core Strategies and Core Strategy Global Risk Global Integrated Growth Strategies Diversification Group Management M&A as a means Tokio Marine has taken about 20 years to expand international insurance business, which has low correlation with Japan P&C, including through M
Slide 15: Control Impact of Nat Cats and COVID-19 on Profit
3. New Mid-Term Plan (1) Core Strategies and Core Strategy Global Risk Global Integrated Growth Strategies Diversification Group Management Control Impact of Nat Cats and COVID-19 on Profit As a result of global risk diversification, the impact of large Nat Cats and COVID-19 on profit were control
Slide 16: Enhancing Management Decision (9th Year of Integrated Group Management)
3. New Mid-Term Plan (1) Core Strategies and Core Strategy Global Risk Global Integrated Growth Strategies Diversification Group Management Enhancing Management Decision (9th Year of Integrated Group Management) Talent with great expertise and knowledge is acquired globally, including through M&A.
Slide 17: Next-generation management resource development
3. New Mid-Term Plan (1) Core Strategies and Core Strategy Global Risk Global Integrated Growth Strategies Diversification Group Management Next-generation management resource development TLI was launched in April 2023, offering a unique training program. Develop the Group leadership and talent wi
Slide 18: Become a partner that "always" provides support
3. New Mid-Term Plan (1) Core Strategies and Growth Strategy Growth Strategies Become a partner that “always” provide support, in addition to “in times of need” (expand domains where we deliver value) In addition to providing best fit “Insurance” products to protect “in times of need,” provide “So
Slide 19: Solutions Business: Disaster Prevention and Mitigation / Mobility
3. New Mid-Term Plan (1) Core Strategies and Growth Strategy Growth Strategies Solutions Business: Disaster Prevention and Mitigation / Mobility “Prevention, mitigation and recovery“ of insurance has significant market size Launched new companies in “Disaster prevention/mitigation” and “Mobility
Slide 20: Examples of Solutions Business in Disaster Prevention and Mitigation Area
3. New Mid-Term Plan (1) Core Strategies and Growth Strategy Growth Strategies (Reference) Examples of Solutions Business in Disaster Prevention and Mitigation Area Resilient Information Distribution Service Supply Chain Risk Visualization Service Jul. 2023 : Launched Jan. 2024: Launched Mainly co
Slide 21: Examples of Solutions Business in Mobility Area
3. New Mid-Term Plan (1) Core Strategies and Growth Strategy Growth Strategies (Reference) Examples of Solutions Business in Mobility Area Fleet Management Service: MIMAMO DRIVE Mainly corporate service Oct. 2023: Launched Support fleet management and safe driving instructions leveraging Tokio M
Slide 22: New Mid-Term Plan (2) Enhancement of Discipline and Initiatives by TMNF
4 New Mid-Term Plan (2) Enhancement of Discipline and Initiatives by TMNF Copyright (c) 2024 Tokio Marine Holdings, Inc. 21
Slide 23: TMNF "Re-New"
4. New MTP (2) Enhancement of Group Enhancement of Discipline and TMNF “Re-New” Level Governance Initiatives by TMNF Fraudulent claims by BIGMOTOR/ Price-Fixing of Insurance Premiums In addition to ensuring implementation of actions against the incidents and reoccurrence prevention measures, funda
Slide 24: Vision/Business model TMNF Aspires to Achieve Through "Re-New"
4. New MTP (2) Enhancement of Group Enhancement of Discipline and TMNF “Re-New” Level Governance Initiatives by TMNF Vision/Business model TMNF Aspires to Achieve Through “Re-New” The vision is to 1) accurately analyze customers’ risks, 2) not only hedge these risks but also avoid and reduce damag
Slide 25: New Company/Business Model Through "Re-New" (1)
4. New MTP (2) Enhancement of Group Enhancement of Discipline and TMNF “Re-New” Level Governance Initiatives by TMNF New Company/Business Model TMNF Aspires to Realize Through “Re-New” (1) Ending deep-rooted practices of Japanese P&C industry will lead to an efficient and appropriate competitive e
Slide 26: New Company/Business Model Through "Re-New" (2)
4. New MTP (2) Enhancement of Group Enhancement of Discipline and TMNF “Re-New” Level Governance Initiatives by TMNF New Company/Business Model TMNF Aspires to Realize Through “Re-New” (2) We sustainably offer appropriate coverages at appropriate rates corresponding to customers’ risks and needs.
Slide 27: New Company/Business Model Through "Re-New" (3)
4. New MTP (2) Enhancement of Group Enhancement of Discipline and TMNF “Re-New” Level Governance Initiatives by TMNF New Company/Business Model TMNF Aspires to Realize Through “Re-New” (3) Expand and diversify distribution channels*1 with the quality and expertise, selected based customers’ needs
Slide 28: Enhancement of Business Management Structure
4. New MTP (2) Enhancement of Group Enhancement of Discipline and TMNF “Re-New” Level Governance Initiatives by TMNF Enhancement of Business Management Structure Established Group Audit Committee with the utilization of external perspectives to engage in proactive activities and enhance the expert
Slide 29: Projections and Shareholder Return
5 Projections and Shareholder Return Copyright (c) 2024 Tokio Marine Holdings, Inc. 28
Slide 30: Mid-Term Business Plan (2024-2026) Projections
5. Projections and Shareholder Shareholder Returns Projections Returns Mid-Term Business Plan (2024-2026) Projections Deliver top-tier Adjusted Net Income growth for new MTP (3Y CAGR) at +15% or more (+7% or more excluding capital gains from sale of business-related equities) Also increase adjuste
Slide 31: Shareholder Returns
5. Projections and Shareholder Shareholder Returns Projections Returns Shareholder Returns We believe that profit growth through businesses and shareholder returns should be consistent Considering the increase in profit from the original projections, DPS for FY2023 are raised to JPY123 (+JPY2 vs
Slide 32: Expression of Gratitude and Determination
6 Expression of Gratitude and Determination Copyright (c) 2024 Tokio Marine Holdings, Inc. 31
Slide 33: New Group Brand Message: Inspiring confidence. Accelerating progress.
6. Gratitude and Determination 基本戦略 New Group Brand Message: Inspiring confidence. Accelerating progress. Copyright (c) 2024 Tokio Marine Holdings, Inc. 32
Slide 34: Develop employees and create corporate culture
6. Gratitude and Determination 基本戦略 Insurance is a “People’s Business” Develop employees and create corporate culture passionate about realizing our Purpose 40% 38% Copyright (c) 2024 Tokio Marine Holdings, Inc. 33
Slide 35: Reference
Reference Copyright (c) 2024 Tokio Marine Holdings, Inc. 34
Slide 36: ESG: Environment (1)
ESG (Sustainable Improvement of Corporate Value): Environment (1) Actively contribute to environmental protection, biodiversity preservation, and creation of environmental values through our business Contribute to sustainable global environment Group business activities achieved carbon-neutral* fo
Slide 37: ESG: Environment (2)
ESG (Sustainable Improvement of Corporate Value): Environment (2) Continuing initiatives to promote climate actions and achieve the goal of decarbonized society Reduce greenhouse gas emissions from Tokio Marine Group’s business activities by 60% (compared to FY2015)*1 by FY2030 Reduction of our gr
Slide 38: ESG: Society (1)
ESG (Sustainable Improvement of Corporate Value): Society (1) Contribute to solving societal challenges by providing safety and security to customers and society through our business ■ Disaster resilience Achieve to prompt insurance payments by building a remote claims – service structure and ut
Slide 39: ESG: Society (2)
ESG (Sustainable Improvement of Corporate Value): Society (2) ■ Improving quality from the customer’s perspective Formulate and announce the “customer-oriented business conduct policies” Contribute to solving societal and promote efforts under these policies challenges through business Our initiat
Slide 40: ESG: Governance (1)
ESG (Sustainable Improvement of Corporate Value): Governance (1) Solve Group’s management issues by leveraging global expertise and knowledge through function-based Chief Officer system and committees, etc. Group CEO focuses on Group management and promotes initiatives to spread the group cultur
Slide 41: ESG: Governance (2)
ESG (Sustainable Improvement of Corporate Value): Governance (2) Hybrid organizational design with a Board of Directors that makes high-quality decisions by utilizing the knowledge and expertise of outside directors, and a Nomination Committee and a Compensation Committee that ensure transparency
Slide 42: ESG: Governance (3)
ESG (Sustainable Improvement of Corporate Value): Governance (3) Designed a compensation system linked to business performance and stock price as an incentive for Directors to achieve sustainable growth Continue to review the compensation system contributing to the enhancement of corporate value
Slide 43: MEMO
MEMO Copyright (c) 2024 Tokio Marine Holdings, Inc.
Slide 44: 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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