Tokio Marine Holdings, Inc. · TSE:8766

Tokio Marine — Q4 2023 Earnings Presentation

56 slides from Tokio Marine's earnings presentation, May 20, 2024

  1. Slide 1: FY2022 Results and FY2023 Projections

    FY2022 Results and FY2023 Projections May 19, 2023

  2. Slide 2: Table of Contents

    Table of Contents Highlights FY2023 Projections – Key Messages ・・・・・・・・・・・・・・ 3 – Consolidated Results (Adjusted Net Income) – Executive Summary ・・・・・・・・・・・・・・ 4 ・・・・・・・・・・・・・・ 28 – Natural Catastrophes ・・・・・・・・・・・・・・ 9  Domestic Non-Life (TMNF) FY2022 Results – Financial Projections ・・・・・・・・・・・・・・

  3. Slide 3: (Blank Page)

    (Blank Page) Copyright (c) 2023 Tokio Marine Holdings, Inc. 2

  4. Slide 4: Key Messages

    Key Messages Underlying  Adjusted net income rose to JPY444.0bn in FY2022, +JPY44.0bn vs full year projections (released in February) (-23% YoY) Capabilities  Underlying capabilities are steadily enhancing with adjusted net income of JPY617.1bn (+22% YoY) on a normalized basis and exceeding full y

  5. Slide 5: Executive Summary: Top-Line

    Executive Summary: Top-Line TBU  Top-line results for FY2022 were strong both domestically and internationally and for life and non-life, showing steady performance overall (the impact from surrender & lapse of corporate owned life insurance was as expected)  Solid growth projection for FY2023 is

  6. Slide 6: Executive Summary: Adjusted Net Income FY2022 Results (Actual Basis)

    Executive Summary: Adjusted Net Income FY2022 Results (Actual Basis) [Group Results (Adjusted net income)] JPY444.0bn (+JPY44.0bn vs Feb. projections, -JPY134.2bn YoY)  Exceeded Feb. projections mainly due to decreases in incurred losses and admin expenses for domestic business  Significantly decr

  7. Slide 7: Executive Summary: Adjusted Net Income FY2022 Results (Normalized basis)

    Executive Summary: Adjusted Net Income FY2022 Results (Normalized basis) [Group Results (Adjusted net income)] JPY617.1bn (+JPY36.1bn vs Feb. projections, -JPY111.7bn YoY)  Exceeded Feb. projections mainly due to decreases in incurred losses and admin expenses for domestic business  Significantly

  8. Slide 8: Executive Summary: Adjusted Net Income FY2023 Projections

    Executive Summary: Adjusted Net Income FY2023 Projections [Group Results (Adjusted Net Income)] JPY670.0bn (+JPY52.9bn YoY on normalized basis)  Adjusted net income is projected at JPY670.0bn for FY2023 (+9% YoY on a normalized basis and +8%*1 excl. the FX rate impacts) based on enhanced underlying

  9. Slide 9: Executive Summary: Shareholder Returns

    Executive Summary: Shareholder Returns  DPS in FY2022 will be maintained at JPY100 (DPS Growth+18% YoY) based on the robust results despite considering one-off effects on adjusted net income  DPS for FY2023 is projected at JPY121 (+21% YoY) supported by an increase in dividend capacity and growth

  10. Slide 10: Natural Catastrophes

    Consolidated Domestic Life Natural Catastrophes Domestic Non-Life International  Net incurred losses relating to Nat Cats in FY2022 increased by +JPY61.7bn YoY to JPY163.6bn (pre-tax)  FY2023 projection is total of JPY144.0bn (pre-tax) considering domestic and international businesses Net incurred

  11. Slide 11: FY2022 Results

    FY2022 Results [Reference] FX Rate (USD/JPY) FY2021 FY2022 End of March JPY122.39 JPY133.53 (Domestic Non-Life & Life) (-JPY11.68 from Mar. 31, 2021) (-JPY11.14 from Mar. 31, 2022) End of December JPY115.02 JPY132.70 (International) (-JPY11.52 from Dec. 31, 2020) (-JPY17.68 from Dec. 31, 2021) Copyr

  12. Slide 12: Consolidated Results: FY2022 Adjusted Net Income (Actual)

    Consolidated Domestic Life Consolidated Results: FY2022 Adjusted Net Income (Actual) Domestic Non-Life International  Adjusted net income on actual basis fell by -JPY134.2bn YoY primarily due to one-off effects such as COVID-19 (Taiwan/Japan) and Nat Cats mainly in Japan  Adjusted Net Income (bill

  13. Slide 13: Consolidated Results: FY2022 Adjusted Net Income (Normalized)

    Consolidated Domestic Life Consolidated Results: FY2022 Adjusted Net Income (Normalized*1) Domestic Non-Life International  Significantly increased by +JPY111.7bn YoY mainly led by the strong performance notably from key overseas entitles  Adjusted Net Income (billions of JPY) YoY Change +111.7 TM

  14. Slide 14: Domestic Non-Life 1: TMNF Results

    Consolidated Domestic Life Domestic Non-Life 1: TMNF Results Domestic Non-Life International  Business unit profit increased by +JPY57.4bn vs November projections primarily driven by the higher- than-expected underwriting profits (+JPY35.4bn vs Feb. projections)  Fell by -JPY94.4bn YoY notably fro

  15. Slide 15: Domestic Non-Life 2: TMNF Net Premiums Written

    Consolidated Domestic Life Domestic Non-Life 2: TMNF Net Premiums Written Domestic Non-Life International  Private insurance total was mostly in line with November projections at JPY2,171.7bn  All lines exceeded FY2021 results except for auto, achieving +5% growth (billions of JPY, except for %) F

  16. Slide 16: Domestic Non-Life 3: TMNF Net Incurred Losses

    Consolidated Domestic Life Domestic Non-Life 3: TMNF Net Incurred Losses Domestic Non-Life International  Net incurred losses improved by -JPY70.4bn to JPY1,363.7bn vs November projections mainly led by decreases in provision for foreign currency denominated loss reserves (-JPY20.1bn) as well as do

  17. Slide 17: Domestic Non-Life 4: TMNF Combined Ratio

    Consolidated Domestic Life Domestic Non-Life 4: TMNF Combined Ratio Domestic Non-Life International  Both E/I loss ratio and Expense ratio improved compared to November projections  Expense ratio decreased YoY mainly driven by topline growth, but Combined ratio increased due to an increase in E/I

  18. Slide 18: Domestic Non-Life 5: TMNF Asset Management

    Consolidated Domestic Life Domestic Non-Life 5: TMNF Asset Management Domestic Non-Life International  Net investment income and others other exceeded exceededprojections projectionsprojections mainly duemainly due to higher-than- to higher-than-expected net expected capital net capital gains gains

  19. Slide 19: Domestic Life: TMNL Results

    Consolidated Domestic Life Domestic Life: TMNL Results Domestic Non-Life International  Annualized premium of New Business was slightly below November projections  Business unit profits exceeded November projections by +JPY9.4bn notably from a decrease in claim payments excluding COVID-19 impacts

  20. Slide 20: International 1: Net Premiums Written

    Consolidated Domestic Life International 1: Net Premiums Written Domestic Non-Life International  Slightly exceeded November projections primarily led by the strong underwriting through North American entities (100.9% excl. FX)  Increased by +14.1% YoY mainly thanks to growth action plans (rate in

  21. Slide 21: International 1: Net Premiums Written (Factors)

    Consolidated Domestic Life International 1: Net Premiums Written Domestic Non-Life International [FY2022 Results] - North America (see pages 23-25 for details on the three main insurers) PHLY: Increased due to solid renewal ratio in addition to strong rate increases (FY2022 results: +9%) DFG: Increa

  22. Slide 22: International 2: Business Unit Profits

    Consolidated Domestic Life International 2: Business Unit Profits Domestic Non-Life International  Business Unit Profits were in line with February projections*  Decreased YoY mainly due to one-off impacts of COVID-19 in Taiwan (-JPY105.3bn), substantially offset by the robust performance primaril

  23. Slide 23: International 2: Business Unit Profits (Factors)

    Consolidated Domestic Life International 2: Business Unit Profits Domestic Non-Life International [FY2022 Results] - North America: Record profit at PHLY, DFG, TMHCC for the second consecutive year (see pages 23-25 for these entities) PHLY: Steadily increased profits while maintaining strong combine

  24. Slide 24: International 3: PHLY Results

    Consolidated Domestic Life International 3: PHLY Results Domestic Non-Life International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2021 FY2022 Results Results YoY (Ref.) As of end As of end YoY % (Excluding FX rates Dec. 2021 Dec. 2022 *2 Change % FX effects ) （USD/JPY） J

  25. Slide 25: International 4: DFG Results

    Consolidated Domestic Life International 4: DFG Results Domestic Non-Life International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2021 FY2022 Results Results YoY (Ref.) As of end As of end YoY % (Excluding FX rates Dec. 2021 Dec. 2022 *2 Change % FX effects ) （USD/JPY） JP

  26. Slide 26: International 5: TMHCC Results

    Consolidated Domestic Life International 5: TMHCC Results Domestic Non-Life International ■ Changes in Major P/L Items (billions of JPY, except for % and pt) FY2021 FY2022 Results Results YoY (Ref.) As of end As of end YoY % (Excluding FX rates Dec. 2021 Dec. 2022 *2 Change % FX effects ) （USD/JPY）

  27. Slide 27: (Blank Page)

    (Blank Page) Copyright (c) 2023 Tokio Marine Holdings, Inc. 26

  28. Slide 28: FY2023 Projections

    FY2023 Projections [Reference] Assumptions used for FY2023 Projections FX Rate Nikkei Stock Average USD/JPY JPY133.53 JPY28,041 (Mar. 31, 2023) (Mar. 31, 2023) Copyright (c) 2023 Tokio Marine Holdings, Inc. 27

  29. Slide 29: Consolidated Projection: Adjusted Net Income (YoY Change)

    Consolidated Domestic Life Consolidated Projection: Adjusted Net Income (YoY Change) Domestic Non-Life International  Projected to grow by +9% on a normalized basis (or +8% excl. FX impacts*1) mainly thanks to an increase in underwriting profits supported by the rate increases, expanded underwritin

  30. Slide 30: Domestic Non-Life 1: TMNF

    Consolidated Domestic Life Domestic Non-Life 1: TMNF Domestic Non-Life International  Business unit profits is expected to raise by +JPY51.5bn YoY to JPY161.0bn mainly driven by a rise in underwriting profit notably from reversal of one-off effects in FY2022, profitability improvement in fire, spec

  31. Slide 31: Domestic Non-Life 2: TMNF Net Premiums Written

    Consolidated Domestic Life Domestic Non-Life 2: TMNF Net Premiums Written Domestic Non-Life International  Projected to raise by +1.2% mainly driven by implementing P.A., specialty, and auto growth measures, partly offset by a decrease in Net Premiums Written mostly from shorter insurance period fo

  32. Slide 32: Domestic Non-Life 3: TMNF Net Incurred Losses

    Consolidated Domestic Life Domestic Non-Life 3: TMNF Net Incurred Losses Domestic Non-Life International  Projected to improve by -JPY40.5bn YoY mainly due to reversal of domestic Nat Cats (-JPY22.6bn), COVID-19 claim payments (-JPY29.7bn), provision for foreign currency denominated loss reserves (

  33. Slide 33: Domestic Non-Life 4: TMNF Combined Ratio

    Consolidated Domestic Life Domestic Non-Life 4: TMNF Combined Ratio Domestic Non-Life International  E/I loss ratio is projected to improve by -3.9pt to 59.9%, and Expense ratio is expected to increase by +0.5pt to 32.6%  Combined ratio is projected to improve by -3.3pt to 92.5% (maintain the mid

  34. Slide 34: Domestic Non-Life 5: TMNF Asset Management

    Consolidated Domestic Life Domestic Non-Life 5: TMNF Asset Management Domestic Non-Life International  Projected to increase by +JPY10.7bn YoY to JPY254.5bn due to increases in dividends from overseas subsidiaries and sale of business-related equities (billions of JPY) FY2022 FY2023 YoY Results Pro

  35. Slide 35: Domestic Life: TMNL Projections

    Consolidated Domestic Life Domestic Life: TMNL Projections Domestic Non-Life International  Annualized Premium of New Business is projected to increase mainly driven by a launch of new product in senior/healthcare areas and sales expansion of regular premium variable life insurance  Business unit

  36. Slide 36: International 1: Net Premiums Written

    Consolidated Domestic Life International 1: Net Premiums Written Domestic Non-Life International  Projected to increase by +1.9% mainly due to steady rate increases and sales expansion, while maintaining bottom-line focus initiatives (billions of JPY, except for %) FY2022 FY2023 Results Projections

  37. Slide 37: International 1: Net Premiums Written (Factors)

    Consolidated Domestic Life International 1: Net Premiums Written Domestic Non-Life International [Major Factors of Change] - North America  PHLY: Projected to remain mostly flat due to a rise in ceded reinsurance premiums due to expected hard reinsurance market, although direct premium expects to i

  38. Slide 38: International 2: Business Unit Profits

    Consolidated Domestic Life International 2: Business Unit Profits Domestic Non-Life International  Business unit profits are projected to raise by 1.7 times YoY (excl. FX effects) mainly led by reversal of the effect of COVID-19 in Taiwan (+JPY106.8bn *FX rate as of March 31, 2023), the solid perfo

  39. Slide 39: International 2: Business Unit Profits (Factors)

    Consolidated Domestic Life International 2: Business Unit Profits Domestic Non-Life International [Major Factors of Change] - Key North American Entities (PHLY, DFG, TMHCC)  Projected to raise due to the rate increases with disciplined underwriting  and the increase in investment income from AUM i

  40. Slide 40: Economic Solvency Ratio

    Economic Solvency Ratio Copyright (c) 2023 Tokio Marine Holdings, Inc. 39

  41. Slide 41: ESR and Sensitivity

    ESR and Sensitivity  ESR as of March 31, 2023 stood at 124% (or 121% after share buyback), mainly reflecting the profit contribution of 2H, shareholder returns, and execution of growth measures (underwriting and asset management) ESR*1 ESR Sensitivity (based on parallel shift) Mar. 31, 2023 124% *1

  42. Slide 42: (Reference) Economic Solvency Ratio Target Range

    (Reference) Economic Solvency Ratio（ESR）Target Range Implementation of  Business Investment, and/or  Additional risk-taking, and/or  Shareholder return 140% Strategic consideration of  Business Investment, and/or Target  Additional risk-taking, and/or Range  Shareholder return 100%  Aim to re

  43. Slide 43: Reference

    Reference Copyright (c) 2023 Tokio Marine Holdings, Inc. 42

  44. Slide 44: Consolidated Net Income: 2022 Results (YoY Change)

    Consolidated Domestic Life Consolidated Net Income: 2022 Results (YoY Change) Domestic Non-Life International  Consolidated net income fell by -JPY44.0bn YoY to JPY376.4bn mainly due to one-off effects such as COVID (Taiwan/Japan) and Nat Cats mainly in Japan  Consolidated net income attributable

  45. Slide 45: Consolidated Projection: 2023 Net Income (YoY Change)

    Consolidated Domestic Life Consolidated Projection: 2023 Net Income (YoY Change) Domestic Non-Life International  Projected to increase significantly by +JPY153.5bn mainly due to a rebound from one-off effects in the previous year (e.g., Nat Cats, COVID losses) as well as increases in underwriting

  46. Slide 46: Update on Impact of COVID-19 in Taiwan

    Consolidated Domestic Life Update on Impact of COVID-19 in Taiwan Domestic Non-Life International  As announced in February, a loss was JPY100.2bn in FY2022 results  No additional loss is projected for FY2023 FY2022 Net loss to be recognized Claims and reserves by TMHD (TMNewa 100% basis) (our sha

  47. Slide 47: Definition of KPIs (1)

    Definition of KPIs (1) Adjusted Net Income (Group total) Business Unit Profits Enhancing transparency and comparability / Creating long-term corporate value Linking with shareholder return  For the Group total, “Adjusted Net Income”  For each business domain, “Business Unit based on financial acco

  48. Slide 48: Definition of KPIs (2)

    Definition of KPIs (2) Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE Adjusted Provision for Provision for Provision for price Provision for Nat Cats Provision for Net Net Income underwriting + underwriting result for = + catastrophe loss + contingency + fluctuation + Income*

  49. Slide 49: Reconciliation of Adjusted Net Income: FY2022 Results

    Reconciliation of Adjusted Net Income: FY2022 Results • Reconciliation*1 Note: Factors positive to profit are shown with a plus sign FY2021 Results FY2022 Results YoY Change (billions of JPY) Net income attributable to owners of the parent 420.4 376.4 -44.0 (consolidated) *2 Provision for catastroph

  50. Slide 50: Reconciliation of Adjusted Net Income: FY2023 Projection

    Reconciliation of Adjusted Net Income: FY2023 Projection • Reconciliation*1 Note: Factors positive to profit are shown with a plus sign FY2022 Results FY2023 Projections YoY Change (billions of JPY) Net income attributable to owners of the parent 376.4 530.0 153.5 (consolidated) Provision for catast

  51. Slide 51: Adjusted Net Assets / ROE (FY2022 Results and FY2023 Projections)

    Adjusted Net Assets / ROE (FY2022 Results and FY2023 Projections) （billions of JPY）  Adjusted Net Assets*1  Adjusted ROE FY2022 FY2023 YoY FY2022 FY2023 YoY Results Projections Change Results Projections Change Net assets(consolidated) 3,631.0 3,755.0 123.9 Net income(consolidated) 376.4 530.0 153

  52. Slide 52: Reconciliation of Business Unit Profits

    Reconciliation of Business Unit Profits（FY2022 Results and FY2023 Projections） （billions of JPY）  Domestic Non-life*1 （TMNF）  Domestic Life*1 FY2022 FY2023 FY2022 FY2023 YoY YoY Results Projections Results Projections Net income for accounting purposes 35.6 38.0 2.3 Net income for accounting purpo

  53. Slide 53: TMNL Supplement on MCEV

    TMNL Supplement on MCEV  Breakdown of increase in MCEV*1 (billions of JPY) Core MCEV earnings*2 1,210.0 -87.3 +100.9 -24.3 1,199.3 Change in economic environment, etc. Shareholders’ dividends 2021 2022 Year-end MCEV *3 1,210.0 1,199.3 *4 MCEV earnings 76.5 *1： Figures are before review by an indepe

  54. Slide 54: Impact of FX Rate Change on the Group's Financial Results

    Impact of FX Rate Change on the Group’s Financial Results  Estimated impact of the depreciation of JPY to USD by 1 yen*1 Impact on net income on financial accounting basis*2 Impact on adjusted net income*2 circa  Increase in overseas subsidiaries profit: circa  Increase in overseas subsidiaries p

  55. Slide 55: MEMO

    MEMO Copyright (c) 2023 Tokio Marine Holdings, Inc. 54

  56. Slide 56: 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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