Tokio Marine Holdings, Inc. · TSE:8766
Tokio Marine — Investor Day (November 2023)
100 slides from Tokio Marine's investor day presentation, Nov 22, 2023
Slide 1: Tokio Marine Group Business Strategy
TOKIO MARINE GROUP BUSINESS STRATEGY NOVEMBER 22, 2023 Copyright (c) 2023 Tokio Marine Holdings, Inc.
Slide 2: Table of Contents
Table of Contents I. Sustaining World’s Top-Class EPS Growth ................. P. 4 II. Lift ROE to World’s Top-Class ...................................... P. 25 III. Vision and Next MTP (Direction) ................................. P. 31 IV. Reference ..............................................
Slide 3: Key Messages
Key Messages World’s top-class EPS growth at +13% (10Y CAGR*) EPS growth is attributable to strong organic growth (10Y CAGR* of +12%; projected +9% Sustaining YoY growth in FY2023). With a robust, globally diversified underwriting portfolio and strong investment income leveraging its liability c
Slide 4: Current Position of Our Profit Growth
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS Current Position of Our Profit Growth Our existing profit growth is amongst the world’s top-class with the 10Y CAGR of +12% and the projected growth of +9%
Slide 5: (Blank Page)
(Blank Page) Copyright (c) 2023 Tokio Marine Holdings, Inc. 5
Slide 6: EPS Growth Track Record
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS EPS Growth Track Record Our EPS growth is mainly driven by organic growth Adjusted EPS*1,3 Adjusted Net Income*1 Capital Policy*3,4 + 13％ + 12％ CAGR Actual
Slide 7: (Ref.) World's Top-Class Stable EPS Growth
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS (Ref.) World’s Top-Class Stable EPS Growth We achieved the world’s top-class EPS growth while managing volatility EPS Growth EPS Growth Volatility (2012-202
Slide 8: Sources of Our Organic Growth
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS Sources of Our Organic Growth Our EPS growth is mostly attributable to strong organic growth Its sources are a robust, globally diversified underwriting p
Slide 9: (Blank Page)
(Blank Page) Copyright (c) 2023 Tokio Marine Holdings, Inc. 9
Slide 10: Domestic Non-Life U/W Profit Organic Growth Breakdown
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Domestic Non-Life U/W Profit] Organic Growth Breakdown Underwriting profit has expanded at a 10Y CAGR of +13% (with a +3% in top-line and +10% in C/R impro
Slide 11: Domestic Non-Life U/W Profit Organic Growth Breakdown (continued)
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Domestic Non-Life U/W Profit] Organic Growth Breakdown (Continuing from the Track Record Future Direction previous page) 10Y CAGR +3% Continue stable growth
Slide 12: Profit Improvement and Maintenance in Auto Insurance
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Domestic Non-Life U/W Profit] Profit Improvement and Maintenance in Auto Insurance C/R has recently worsened mainly due to the impact of inflation and the
Slide 13: Profit Improvement in Fire Insurance
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Domestic Non-Life U/W Profit] Profit Improvement in Fire Insurance Although recently turned profitable (normalized basis), RoR still does not meet capital
Slide 14: (Ref.) Increase in Nat Cats and Reinsurance Market Conditions
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS (Ref.) Increase in Nat Cats and Reinsurance Market Conditions We recognize the needs to increase the domestic Nat Cats budget (currently at JPY73.0bn) under
Slide 15: Profit Growth of Specialty Insurance
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Domestic Non-Life U/W Profit] Profit Growth of Specialty Insurance We will be able to achieve the current MTP’s target of expanding net premiums written by
Slide 16: International U/W Profit Growth Breakdown
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [International U/W Profit] Profit Growth Breakdown CAGR of underwriting profit grew to +13%, realizing a stable top-line revenue growth, and stable & low C/
Slide 17: International U/W Profit Growth Breakdown (continued)
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [International U/W Profit] Profit Growth Breakdown (Continuing from Track Record Future Direction the previous page) 10Y CAGR +13% +20% +13% contribution to U
Slide 18: (Ref.) Top-line Growth Breakdown
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS (Ref.) Top-line Growth Breakdown 10Y CAGR of +13% reflects +11% in developed markets, +3% in emerging markets, and -1% at TMR International Top-line Revenue
Slide 19: Rate Increase in Developed Markets
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [International U/W Profit] Rate increase in Developed Markets Achieving above-market rate increase in the hard market by forward-looking loss-cost projectio
Slide 20: Expansion of Business-line in Developed Markets (TMHCC)
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [International U/W Profit] Expansion of Business-line in Developed Markets (TMHCC) Working on business-line expansion through the launch of new business-lin
Slide 21: Capturing Growth in Emerging Markets (TMSR)
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [International U/W Profit] Capturing Growth in Emerging Markets (TMSR) Achieving above-market growth in growing markets on the back of product and system st
Slide 22: Breakdown of DFG Investment Income
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Investment] Breakdown of DFG Investment Income DFG’s investment income has grown at the CAGR of +17% (or +22% incl. FX), growing significantly on the back
Slide 23: Update on CRE Loans
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS [Investment] Update on CRE Loans Given the highly individualistic nature of CRE loans, DFG has made investments selectively and increasing returns. As the m
Slide 24: World's Top-Class DPS Growth
I. World’s Top-Class Sustainability of EPS Domestic Non-Life / International / EPS Growth Growth Underwriting Underwriting Investment 2023DPS World’s Top-Class DPS Growth Continue to maintain DPS growth trajectory with confidence in line with EPS growth DPS for FY2023 is unchanged at JPY121 (+21
Slide 25: Confidence in ROE Enhancement
II. Lift ROE to Expansion of Effective Use World’s Top-class Equity Spread of Capital Confidence in ROE Enhancement Adjusted ROE projection for FY2023 is 16.1％. We will further lift ROE to the level comparable to global peers (expand equity spread further) The measures are “world’s top-class EPS
Slide 26: Track Record of Disciplined Capital Policy
II. Lift ROE to Expansion of Effective Use World’s Top-class Equity Spread of Capital Track Record of Disciplined Capital Policy We have enhanced ROE by utilizing generated capital (business investment and shareholder returns with discipline) “5-Year” Average (2018-2022) “10-Year” Average (2013-20
Slide 27: Accelerate Reduction of Business-related Equities
II. Lift ROE to Expansion of Effective Use World’s Top-class Equity Spread of Capital Accelerate Reduction of Business-related Equities With the full-year projection of JPY195.0bn for FY2023, we are making smooth progress in the sale of more than JPY600.0bn by FY2026 (in four years) announced in M
Slide 28: Disciplined In / Out Strategy
II. Lift ROE to Expansion of Effective Use World’s Top-class Equity Spread of Capital Disciplined In / Out Strategy Our M&A track record is built on identification of investment targets, PMI, and group synergies, and ROI significantly exceed our cost of capital (7%) Valuations are currently high
Slide 29: (Ref.) Expansion of Group Synergies
II. Lift ROE to Expansion of Effective Use World’s Top-class Equity Spread of Capital (Ref.) Expansion of Group Synergies Realized Group synergies of USD580mn (Ref.) Example of Revenue Synergy Investment Cross-selling Cross-selling to customers in other Revenue group entities Leverage DFG’s Levera
Slide 30: Strong Capital Position and Disciplined Capital Policy (Share Buyback)
II. Lift ROE to Expansion of Effective Use World’s Top-class Equity Spread of Capital Strong Capital Position and Disciplined Capital Policy (Share Buyback) ESR*1 as of the end of Sept. 2023 is solid at 133% We will increase the amount of share buybacks for FY2023 to JPY120.0bn from the initiall
Slide 31: Pursuit of Deep-Rooted Sustainability Management
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy Pursuit of Deep-Rooted Sustainability Management With our purpose, “protect our customers and society in times of need,” we contribute to the creation of a safe and secure world by resolving the expanding and complex societ
Slide 32: Examples of Recent Contributions to Resolution of Societal Challenges
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy Examples of Recent Contributions to Resolution of Societal Challenges Since our founding, we realized both “sustainable society” and “our company’s sustainable growth” through resolution of societal challenges These initi
Slide 33: Overview of Next MTP
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy Overview of Next MTP Set forth “Our Long-term Aspiration 2035” in light of the rapid changes in the business environment (as a result, it is expected to be a unique, unprecedented business portfolio) Towards its realizati
Slide 34: Our Long-term Aspiration 2035 and Its Image
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy “Our Long-term Aspiration 2035” and Its Image In addition to providing best fit “Insurance” products to issues / risks of customers and society to protect customers and society “in times of need”, we will provide “Solutions
Slide 35: Group Core Strategy: Global Risk Diversification
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy [Group Core Strategy] Global Risk Diversification We will continue to promote “global risk diversification,” which manages volatile business environment, in the next MTP We will further curb the impact on profit of large
Slide 36: Group Core Strategy: Globally Integrated Group Management
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy [Group Core Strategy] Globally Integrated Group Management We will continue to promote “integrated group management” that leverages global talent and knowledge to decide and implement important management actions Globally
Slide 37: Group Major Strategy: Expansion of Value Provision (Solution Business)
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy [Group Major Strategy] Expansion of Value Provision (Solution Business) Promote new “solution” business other than “insurance” and aim to achieve commercialization in multiple fields during the next MTP period so as to real
Slide 38: Enhancement of Governance (Update on Incidents at TMNF)
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy Re-post from Q2 Conference Enhancement of Governance (Update on Incidents at TMNF) Call on Nov. 17 Fraudulent insurance claims concerning BIGMOTOR: Prioritizing recovery of customer damages, implementing investigation to co
Slide 39: Enhancement of Governance (Issue Analysis and Actions as TMHD)
III. Vision and Next MTP Overview Group Core Strategy Group Major Strategy Re-post from Q2 Conference Enhancement of Governance (Issue Analysis and Actions as TMHD) Call on Nov. 17 Following the occurrence of several incidents, further strengthening governance at the group level will be establishe
Slide 40: FY2023 Adjusted Net Income Projections (Actual)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Re-post from Q2 Conference FY2023 Adjusted Net Income Projections (Actual) Call on Nov. 17 Full-year projection has been revised downward by -JPY15.0bn to JPY655.0bn due t
Slide 41: FY2023 Adjusted Net Income Projections (Normalized)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Re-post from Q2 Conference FY2023 Adjusted Net Income Projections (Normalized) Call on Nov. 17 Adjusted net income on a normalized basis*1 is expected to rise by +JPY5.0bn
Slide 42: FY2023 KPI Targets (Mid-Term Business Plan 2021-2023)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy FY2023 KPI Targets (Mid-Term Business Plan 2021-2023) Mid-Term Business Plan FY2023 Projection FY2020 Results （FY2021-FY2023） (Normalized; actual in the parentheses) (Normal
Slide 43: Business Unit Profit, etc.
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Breakdown of Adjusted Net Income Mid-Term Business Plan FY2023 Projection FY2020 Results （FY2021-FY2023） (Normalized; actual in the parentheses) (Normalized; actual in paren
Slide 44: Stable ROE Enhancement
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Stable ROE Enhancement Re-post from IR Conference on May 24, 2023 As with EPS growth, ROE is enhancing with managed volatility Low Capital Efficiency High 0.0% Low （2015-2
Slide 45: Tokio Marine Group's Retention / Reinsurance Policy
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Tokio Marine Group’s Retention / Reinsurance Policy Our primary objective of reinsurance is to protect the balance sheet from capital events Our decision based on econom
Slide 46: [Update] Auto Insurance
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Auto Insurance The top-line for FY2023 was expected to offset the trend of gradual decrease in number of vehicles with rate / product revision, and is expected to
Slide 47: (Ref.) Auto Insurance Accident Frequency and Unit Price Trend
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy (Ref.) Auto Insurance Accident Frequency and Unit Price Trend Accident frequency for FY2023 is expected to decline approx. -1% YoY, while insurance unit price is expected
Slide 48: (Ref.) Progress of Automated Driving Technology
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy (Ref.) Progress of Automated Driving Technology Auto insurance market will gradually shrink due to the progress of automated driving technology, but expectations for insure
Slide 49: [Update] Fire Insurance
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Fire Insurance Underwriting profit in FY2023 was projected to increase significantly by +JPY60.1bn from FY2020 (2023 original projection), while the current MTP h
Slide 50: [Update] Specialty Insurance
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Specialty Insurance Top-line revenue in FY2023 was projected to increase +JPY105.1bn from FY2020 (a revenue increase of over JPY100.0bn under the current MTP). Wi
Slide 51: [Update] Improvement to C/R
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Improvement to C/R C/R in FY2023 was projected at 92.5% reflecting the rigorous reduction of internal administration through investments in DX and the reallocatio
Slide 52: [Update] Improvement to E/R
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Improvement to E/R Current E/R remains better than that of other companies Aim for E/R below 30% in the medium- to long-term mainly through top-line growth achi
Slide 53: (Ref.) Use of Generative AI and AI Governance Initiatives
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy (Ref.) Use of Generative AI and AI Governance Initiatives The whole Group will promote productivity improvement through use of generative AI in business processes To add
Slide 54: TMNF: Changes in Net Premiums Written for All Categories and C/R
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy TMNF: Changes in Net Premiums Written for All Categories and C/R Changes in net premiums written (all categories; billions of JPY) and C/R*1 (private insurance E/I basis)
Slide 55: TMNF: Changes in Auto Insurance C/R
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy TMNF: Changes in Auto Insurance C/R C/R in auto insurance*1 (private insurance E/I basis) Auto insurance market share*2 (Based on FY2022 direct net premiums written) 98.
Slide 56: [Update] Top-line
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Top-line Plan to increase revenue in FY2023 by focusing on growth areas*1 (incl. new product launches) and promoting cross-selling of life and non-life products.
Slide 57: [Update] Bottom-line
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Bottom-line [Economic Value Basis (Value of New Business)] Revised downward by -JPY6.0bn to JPY73.0bn in FY2023 mainly due to the rising inflation [Financial Ac
Slide 58: Enhance Profitability and Accelerate Profit Contribution
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Enhance Profitability and Accelerate Profit Contribution Current MTP aims to accelerate future profit growth by focusing on products with high ROR and IRR that will prompt
Slide 59: Capital Efficiency
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Capital Efficiency Capital efficiency is among the best in Japan both on the financial accounting basis and economic value basis Core ROEV*1 (economic value basis, FY2022
Slide 60: [Update] International Insurance Business
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] International Insurance Business Business unit profit in FY2023 was projected to rise significantly mainly driven by steady revenue increase under the continuous
Slide 61: [Update] Underwriting in Developed Markets
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Underwriting in Developed Markets Top-line in FY2023 was projected to grow thanks to rate increases with the continuous exercise of underwriting discipline and bu
Slide 62: (Ref.) Inflation Resilience
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy (Ref.) Inflation Resilience Resilience against economic / social inflation is enhanced Continue to take pro-active measures to manage rapid environment change Inflation
Slide 63: (Ref.) Inflation Resilience (Social Inflation)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy (Ref.) Inflation Resilience (Social Inflation) Re-post from IR Conference on May 24, 2023 PHLY Business Strength*1 Ability to avoid impact Ability to mitigate impact ▶ Disci
Slide 64: (Ref.) Inflation Resilience (Medical / Wage Inflation)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy (Ref.) Inflation Resilience (Medical / Wage Inflation) Impact Existing New Initiatives Business Business Prior Year Loss Reserves Loss Cost Medical stop-loss Short-tail with
Slide 65: [Update] Emerging Market Business
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Update] Emerging Market Business FY2023 business unit profit is revised upwards by +JPY19.0bn to JPY59.0bn due to the strong underwriting profit growth in South & Central
Slide 66: Track record of In / Out Strategy
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Track record of In / Out Strategy Building a strong franchise by acquiring blue chip insurers with solid business model Driving optimization of business portfolio by det
Slide 67: Track Record of M&A
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Track Record of M&A Five subsidiaries acquired with large-scale M&A have kept outperforming market growth ROI is significantly above TMHD capital cost (7%) at 18.8% Grow
Slide 68: Track Record of Bolt-on M&A
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Track Record of Bolt-on M&A Room for bolt-on M&A transactions with familiar businesses Transfer oversea GC’s expertise to the other GCs to make it our strength and stead
Slide 69: Digitalization Initiatives
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Digitalization Initiatives Re-post from IR Conference on May 24, 2023 Initiatives to expand underwriting, improve profitability, and enhance services using technology / da
Slide 70: [Basic Information] PHLY
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Basic Information] PHLY Build competitive edge focusing on niche markets What’s PHLY Current Focus Results Steady profit growth while managing Focus on niche markets
Slide 71: [Basic Information] DFG
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Basic Information] DFG Maintain U/W profit and expand investment income leveraging its strengths What’s DFG Current Focus Results Profitability improvement Strength in
Slide 72: [Basic Information] TMHCC
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Basic Information] TMHCC Global leader in specialty insurance with over 48 years of deep technical expertise What’s TMHCC Current Focus Results Highly profitable and well
Slide 73: [Basic Information] Pure
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Basic Information] Pure Specialty insurance group focused on the U.S. High Net Worth insurance market What’s Pure Current Focus Results Focus on HNW market with high Su
Slide 74: [Basic Information] TMK
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Basic Information] TMK Top Class Specialty Insurer in Lloyd’s market What’s TMK Current Focus Results One of the largest underwriting Rebalance U/W portfolio Favorabl
Slide 75: [Basic Information] TMSR
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy [Basic Information] TMSR Highly competitive in the largest market in Latin America leveraging cutting-edge DX What’s TMSR Current Focus Results One of the top players in A
Slide 76: Reorganization of Group Company
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Reorganization of Group Company Re-post from Q2 Conference Call on Nov. 17, 2023 Pure Group will be positioned directly under TMNF along other Group companies from Dec. 31
Slide 77: International Insurance (Results by Region)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy International Insurance (Results by Region) 2022 2023 Projection 2022 2023 Projection 2023 Net Premiums Written *5 (billions of JPY) Original Revised Changes Applied FX rate
Slide 78: Group Asset Management Policy
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Group Asset Management Policy Maintain long-term, stable income based on ALM aligned with characteristics of insurance liabilities Investment Portfolio (Sep.30, 2023) Secu
Slide 79: DFG Investment Track Record
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy DFG Investment Track Record DFG investment performance (investment income + realized gains / losses) remained positive during the collapse of Lehman Brothers <Investment R
Slide 80: Characteristics of DFG's CRE Loan Investments
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Characteristics of DFG’s CRE Loan Investments Enjoyed high returns from loans that mainly targeted properties under construction/ renovation, which would require abilities
Slide 81: Case 1: Disaster Prevention and Mitigation Area
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Case 1: Disaster Prevention and Mitigation Area (Create solution business) Develop risk solutions for disaster prevention and mitigation area that can respond to increasin
Slide 82: Case 2: Mobility Area
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Case 2: Mobility Area (Create solution business) Develop risk solutions leveraging Group and external digital capabilities and technologies based on risk management expert
Slide 83: Case 3: Deploy Embedded Insurance
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Case 3: Deploy Embedded Insurance* (Evolution of insurance business) Deploy Embedded Insurance, which embeds a variety of fully digitalized products through the utilizatio
Slide 84: Capital Circulation Cycle
Domestic Domestic Inter- Business Area Capital IV. Reference Group Non-Life Life Investment Expansion Policy ESG Data national Capital Circulation Cycle Re-post from IR Conference on May 24, 2023 We conduct disciplined business investment and shareholder returns by utilizing capital generated from
Slide 85: Disciplined capital policy (ESR)
Domestic Domestic Inter- Business Area Capital IV. Reference Group Non-Life Life Investment Expansion Policy ESG Data national Disciplined capital policy (ESR) ESR as of September 30, 2023, stood at 133% (or 131% after share buyback), reflecting the profit contribution of 1H, increased share price
Slide 86: Achieve Further Growth through Flexible Capital Strategy
Domestic Domestic Inter- Business Area Capital IV. Reference Group Non-Life Life Investment Expansion Policy ESG Data national Achieve Further Growth through Flexible Capital Strategy Use hybrid capital to realize further growth strategies including M&A Increase ROE on a long-term basis by maint
Slide 87: "Win-Win" Situation with Stakeholders
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy “Win-Win” Situation with Stakeholders Provide balanced values to all stakeholders by being true to our purpose Shareholders Customers World’s top class TSR*1 through profi
Slide 88: Response to Climate Change
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Response to Climate Change Climate change is one of the most important social issues across the planet. We will face up to this difficult issue Simultaneously enhance so
Slide 89: Initiatives for Promoting D&I
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Initiatives for Promoting D&I Accelerated promotion of D&I by utilizing diverse knowledge Further strengthened top-down creation of inclusive culture and promoting initi
Slide 90: Governance System
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Governance System Re-post from IR Conference on May 24, 2023 Hybrid organizational design with a Board of Directors that makes high-quality decisions by utilizing the know
Slide 91: Skill Matrix of Outside Officers
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Skill Matrix of Outside Officers Re-post from IR Conference on May 24, 2023 Achieve highly effective governance by incorporating the skills of a diverse range of outside d
Slide 92: Executive Compensation
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Executive Compensation Re-post from IR Conference on May 24, 2023 Designed a remuneration system linked to business performance and stock price as an incentive for directo
Slide 93: Impact of Natural Catastrophes
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Impact of Natural Catastrophes Re-post from Q2 Conference Call on Nov. 17, 2023 Actual net incurred losses relating to Nat Cats for 2Q declined by -JPY8.7bn YoY to JPY110.
Slide 94: Impact of FX Rate Change on the Group's Financial Results
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Re-post from Q2 Conference Impact of FX Rate Change on the Group’s Financial Results Call on Nov. 17, 2023 Estimated impact of the JPY depreciation to USD by 1 yen*1 1 on
Slide 95: Tokio Marine Holdings Key Statistics
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Tokio Marine Holdings Key Statistics FY2023 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Projections Net income (billions of yen)*1 247.4 254.5 273.8 284.1
Slide 96: Return to Shareholders
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Return to Shareholders FY2023 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Projections 32 yen 37 yen 47 yen 53 yen 60 yen 63 yen 67 yen 85 yen 100 yen 121
Slide 97: Definition of KPIs
Domestic Domestic Inter- Business Area Capital IV. Reference Group Investment ESG Data Non-Life Life national Expansion Policy Definition of KPIs Re-post from Q2 Conference Call on Nov. 17, 2023 Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE Adjusted Provision for Provision f
Slide 98: MEMO
MEMO Copyright (c) 2023 Tokio Marine Holdings, Inc. 98
Slide 99: Copyright (c) 2023 Tokio Marine Holdings, Inc.
Copyright (c) 2023 Tokio Marine Holdings, Inc. 99
Slide 100: 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