Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — 2Q FY2017 Earnings Presentation
40 slides from Tokio Marine's earnings presentation, Nov 17, 2017
Slide 1: Overview of 2Q FY2017 Results and Full-Year Projections
Overview of 2Q FY2017 Results and Full-Year Projections November 17, 2017 Tokio Marine Holdings, Inc. ◆Abbreviations used in this material TMNF : Tokio Marine & Nichido Fire Insurance Co., Ltd. NF : Nisshin Fire & Marine Insurance Co., Ltd. TMNL : Tokio Marine & Nichido Life Insurance Co., Ltd. TMHC
Slide 2: Table of Contents
Table of Contents ■ I. 2Q FY2017 Results ■ II. FY2017 Revised Projections Consolidated Results Consolidated Projections – Overview ・・・ 3 – Overview ・・・17 – Ordinary Profit ・・・ 4 – Ordinary Profit ・・・18 Adjusted Net Income Adjusted Net Income – Adjusted Net Income ・・・ 5 – Adjusted Net Income
Slide 3: I. 2Q FY2017 Results
I. 2Q FY2017 Results <Reference> Applied FX Rate (USD/JPY) FY2016 FY2017 End of Sept. JPY 101.12 JPY 112.73 (JPY 11.56 appreciation (JPY 0.54 depreciation (Domestic non-life and life) from end-Mar. 2016) from end-Mar. 2017) End of Jun. JPY 102.91 JPY 112.00 (JPY 17.70 appreciation (JPY 4.49 apprecia
Slide 4: Consolidated Results Overview (1)
2Q FY2017 Results - Consolidated Results - 1 Domestic Consolidated Life Consolidated Results Overview (1) Domestic Non-Life International Net premiums written: Increased due to business expansion at domestic non-life and overseas subsidiaries and the depreciation of the yen at overseas Life insu
Slide 5: Consolidated Results Overview (2)
2Q FY2017 Results - Consolidated Results - 2 Domestic Consolidated Life Consolidated Results Overview (2) Domestic Non-Life International — Domestic Non-Life Ordinary Profit (billions of yen) Decreased mainly due to the following factors at TMNF: -93.6 Impact of large natural catastrophes* （-43.
Slide 6: Adjusted Net Income (Group Total)
2Q FY2017 Results - Adjusted Net Income Domestic Consolidated Life Adjusted Net Income (Group Total) Domestic Non-Life International Adjusted Net Income for 2Q FY2017 decreased by ¥75.7B YoY to ¥143.5B • Reconciliation*1 (billions of yen) Note: Factors positive to profit are FY2016 FY2017 YoY show
Slide 7: TMNF Financial Results
2Q FY2017 Results - Domestic Non-Life - 1 Domestic Consolidated Life TMNF Financial Results Domestic Non-Life International — Underwriting Profit ■ Changes in Major P/L Items (billions of yen) Decreased by ¥53.9B YoY to ¥10.9B mainly due to the following FY2016 FY2017 2Q 2Q YoY factors: Results Resu
Slide 8: TMNF Combined Ratio
2Q FY2017 Results - Domestic Non-Life - 2 Domestic Consolidated Life TMNF Combined Ratio Domestic Non-Life International ■ Combined Ratio (Private insurance: E/I basis) ※( ): YoY Change 95.5% 94.0% （+5.6pt） 88.4% – E/I Basis Loss Ratio Worsened by 5.8 points YoY to 61.8% mainly due to: E/I Loss Rati
Slide 9: TMNF NPW & Loss Ratio
2Q FY2017 Results - Domestic Non-Life - 3 Domestic Consolidated Life TMNF NPW & Loss Ratio Domestic Non-Life International ■ Net Premiums Written by Line (billions of yen, except for %) – Major Factors of Changes in NPW FY2016 FY2017 2Q 2Q Fire: Increased mainly in the household sector YoY Results
Slide 10: TMNF Asset Management Results
2Q FY2017 Results - Domestic Non-Life - 4 Domestic Consolidated Life TMNF Asset Management Results Domestic Non-Life International Net Investment Income and Other(billions of yen) – Net investment income and other increased by ¥36.6B FY2016 FY2017 2Q 2Q YoY YoY to ¥132.8B Results Results Change Ne
Slide 11: NF Financial Results
2Q FY2017 Results - Domestic Non-Life - 5 Consolidated Domestic Life NF Financial Results Domestic Non-Life International Changes in Major P/L Items (billions of yen) FY2016 FY2017 2Q 2Q YoY — Underwriting Profit Results Results Change Underwriting profit/loss 2.6 3.2 0.6 Increased by ¥0.6B YoY to
Slide 12: TMNL Financial Results
2Q FY2017 Results - Domestic Life Domestic Consolidated Life TMNL Financial Results Domestic Non-Life International ■ Annualized Premiums (ANP) – New Policies ANP (billions of yen) Decreased by 11.0% YoY due to sales suspension of FY2016 FY2017 long-term saving-type products, etc. 2Q 2Q YoY Excl
Slide 13: Net Premiums Written - International Insurance Business
2Q FY2017 Results - International Insurance Business - 1 Domestic Consolidated Life Net Premiums Written Domestic Non-Life International (billions of yen, except for %) FY2016 FY2017 – Increased by 14% YoY due to the progress of growth measures in 2Q 2Q Results Results YoY each business segment and
Slide 14: Business Unit Profits - International Insurance Business
2Q FY2017 Results - International Insurance Business - 2 Domestic Consolidated Life Business Unit Profits Domestic Non-Life International (billions of yen, except for %) – Increased by ¥5.2B YoY (7%) due to the progress of growth measures in FY2016 2Q FY2017 2Q each business segment and the deprecia
Slide 15: North America (Breakdown)
2Q FY2017 Results - International Insurance Business - 3 Domestic Consolidated Life North America (Breakdown) Domestic Non-Life International Net Premiums Written (billions of yen, except for %) FY2016 FY2017 2Q 2Q Results Results YoY (Ref.) As of end- As of end- YoY Applied FX rate Jun. 2016 Jun.
Slide 16: Business Unit Profits
2Q FY2017 Results – Business Unit Profits Domestic Consolidated Life Business Unit Profits Domestic Non-Life International (billions of yen) FY2016 FY2017 Business Domain 2Q 2Q YoY Results Results Change – Domestic Non-Life Decreased by ¥29.6B YoY to ¥69.1B mainly due to the Domestic Non-Life 98.8 6
Slide 17: II. FY2017 Revised Projections
II. FY2017 Revised Projections <Reference> Assumptions used for FY2017 Full-Year Projections FX rate Nikkei Stock Average USD／JPY Original Projections JPY 112.19 18,909 yen (end of Mar. 2017 rate and stock avg.) Revised Projections JPY 112.73 20,356 yen (end of Sept. 2017 rate and stock avg.) Copyri
Slide 18: Consolidated Projections Overview (1)
FY2017 Revised Projections - Consolidated Projections- 1 Domestic Consolidated Life Consolidated Projections Overview (1) Domestic Non-Life International Net premiums written: Upward revision by ¥50B from the original projections due to business expansion and the depreciation of the yen at oversea
Slide 19: Consolidated Projections Overview (2)
FY2017 Revised Projections - Consolidated Projections- 2 Domestic Consolidated Consolidated Projections Overview (2) Life Domestic Non-Life International Ordinary Profit (billions of yen) — Domestic Non-Life -65.0 Downward revision by ¥16.7B from the （-16.0%) original projections mainly due to the
Slide 20: Adjusted Net Income (Group Total)
FY2017 Revised Projections - Adjusted Net Income Domestic Consolidated Life Adjusted Net Income (Group Total) Domestic Non-Life International Adjusted Net Income is revised downward by ¥67B from the original projections to ¥315B Adjusted ROE is projected to be 8.1%, down by 1.7pts from the origina
Slide 21: TMNF Financial Projections
FY2017 Revised Projections - Domestic Non-Life - 1 Consolidated Domestic Life TMNF Financial Projections Domestic Non-Life International ■ Changes in Major P/L Items (billions of yen) FY2017 Projections FY2016 Results Original Revised Difference YoY (a) (b) (b-a) Change Underwriting profit/loss 116.
Slide 22: TMNF Combined Ratio
FY2017 Revised Projections - Domestic Non-Life - 2 Consolidated Domestic Life TMNF Combined Ratio Domestic Non-Life International ■ Combined Ratio (Private insurance: E/I basis) – E/I Basis Loss Ratio ※( ) : Change from original projections Projected to worsen by 3.1 points from the original project
Slide 23: TMNF NPW & Loss Ratio
FY2017 Revised Projections - Domestic Non-Life - 3 Consolidated Domestic Life TMNF NPW & Loss Ratio Domestic Non-Life International ■ Net Premiums Written by Line (billions of yen, except for %) FY2017 Projections FY2016 Results Original Revised Difference YoY – Major Factors of Changes in NPW (a) (
Slide 24: NF Financial Projections
FY2017 Revised Projections - Domestic Non-Life - 4 Consolidated Domestic Life NF Financial Projections Domestic Non-Life International Changes in Major P/L Items (billions of yen, except for %) FY2017 Projections FY2016 Results Original Revised Difference YoY (a) (b) (b-a) Change – Underwriting Pr
Slide 25: TMNL Financial Projections
FY2017 Revised Projections - Domestic Life Domestic Consolidated Life TMNL Financial Projections Domestic Non-Life International ■ Annualized Premiums (ANP) (billions of yen) — New Policies ANP FY2017 Projections Upward revision by ¥22.7B from the original FY2016 Original Revised Difference projec
Slide 26: Net Premiums Written - International Insurance Business
FY2017 Revised Projections - International Insurance Business - 1 Domestic Consolidated Life Net Premiums Written Domestic Non-Life International (billions of yen, except for %) – Upward revision by ¥69B from the original projections to FY2017 Projections FY2016 ¥1,711B due to the depreciation of th
Slide 27: Business Unit Profits - International Insurance Business
FY2017 Revised Projections - International Insurance Business - 2 Domestic Consolidated Life Business Unit Profits Domestic Non-Life International (billions of yen, except for %) FY2017 Projections – Downward revision by ¥49B from the original projections FY2016 Results Original Revised YoY to ¥104B
Slide 28: North America (Breakdown)
FY2017 Revised Projections - International Insurance Business - 3 Domestic Consolidated Life North America (Breakdown) Domestic Non-Life International Net Premiums Written (billions of yen, except for %) FY2016 FY2017 Projections Results Original Revised YoY (Ref.) (a) (b) As of end- As of end- As
Slide 29: Business Unit Profits
FY2017 Revised Projections – Business Unit Profits Domestic Consolidated Life Business Unit Profits Domestic Non-Life International (billions of yen) FY2017 FY2016 Projections Business Domain Results Original (a) Revised (b) (b)-(a) – Domestic Non-Life Downward revision by ¥13B from the original pro
Slide 30: III. Economic Solvency Ratio
Ⅲ. Economic Solvency Ratio Copyright (c) 2017 Tokio Marine Holdings, Inc. 29
Slide 31: Economic Solvency Ratio (ESR)
Economic Solvency Ratio（ESR） Utilize capital model which calculates risk capital based on 99.95%VaR (standard to maintain AA credit rating) and excludes restricted capital, while referring to the method in Solvency II in Europe, etc. Target range of ESR is 100~130% in light of financial soundnes
Slide 32: ESR as of Sep. 30, 2017
ESR as of Sep. 30, 2017 Although net asset value decreased due to shareholder return, etc., risk capital also decreased. As a result, ESR as of Sep. 30, 2017 is 141% Business continuity is confirmed even in the event of stress scenario Economic Solvency Ratio (ESR) (reference) Impact of mark
Slide 33: Reference
Reference Copyright (c) 2017 Tokio Marine Holdings, Inc. 32
Slide 34: Impact of large natural catastrophes and full-year projections
Reference： Impact of large natural catastrophes such as hurricanes in North America, etc. and full-year projections of natural catastrophes Impact of large natural catastrophes Large natural catastrophes refers to Hurricane Harvey, Irma, Maria, and earthquakes in Mexico. These losses would origi
Slide 35: Status of Investments in Securitized Products
Reference Status of Investments in Securitized Products Status of Investments in Securitized Products, etc. (Sum of major subsidiaries (domestic and overseas) as of the end of 2Q FY2017) (billions of yen) As of the end of Domestic Offices Overseas Offices 2Q FY2017*1 CDS 17.6 17.6 - AAA - - - AA -
Slide 36: Adjusted Net Income and Business Unit Profit
Reference Adjusted Net Income and Business Unit Profit Adjusted Net Income (Group total) Business Unit Profits Enhancing transparency and comparability / Creating long-term corporate value Linking with shareholder returns For the Group total, “Adjusted Net Income” For each business domain, “Busi
Slide 37: Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE
Reference Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE / Business Unit Profits Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE Adjusted Net Income*1 Provision for Provision for Provision for Gains or losses on sales or Adjusted Net income = + catast
Slide 38: Reconciliation of Adjusted Net Income / Adjusted Net Assets
Reference Reconciliation of Adjusted Net Income / Adjusted Net Assets (billions of yen) Adjusted Net Income*1 Adjusted Net Assets*1 Adjusted ROE FY2017 FY2017 FY2017 FY2017 FY2016 FY2017 FY2017 FY2016 Projections Projections (b)-(a) FY2016 Projections Projections Results Projections Projection
Slide 39: Reconciliation of Business Unit Profits
Reference Reconciliation of Business Unit Profits Domestic Non-Life*1 （TMNF） (billions of yen) FY2016 FY2017 FY2017 FY2017 FY2016 2Q 2Q YoY Projections Projections (b)-(a) Results Results Results Original(a) Revised(b) Net income for accounting purposes 124.0 112.4 -11.6 Net income for accounting
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
Tokio Marine Holdings — 2Q FY2017 Earnings Presentation on 6ix