Ms&ad Insurance Group Holdings, Inc. · TSE:8725
Ms&ad Insurance — Investor Presentation (May 2020)
28 slides from Ms&ad Insurance's investor presentation, May 26, 2020
Slide 1: Fiscal 2020 First Information Meeting
Fiscal 2020 First Information Meeting May 26, 2020 Presentation Slides
Slide 2: Main Points of Today's Presentation
Main Points of Todayʼs Presentation Impact of the COVID-19 Given the changing situation of COVID-19, although world economic outlook is uncertain, our forecast for 2020 is based on the assumption of a negative economic growth throughout the year (decline until June, then gradual recovery). The forec
Slide 3: COVID-19 Impact: Effects on Short-Term Business Performance
COVID-19 Impact: Effects on Short-Term Business Performance • While the future is uncertain due to the impact of the COVID-19, an income and expenditure plan has been formulated on a provisional basis on the assumption of negative economic growth up to the first quarter, followed by gradual recovery
Slide 4: COVID-19 Impact: Response to Stakeholders
COVID-19 Impact: Response to Stakeholders • As a group whose mission is to “contribute to the development of a vibrant society and help secure a sound future for the planet,” we will make a united Group-wide effort to do whatever we can to protect customers’ lives and business activities from the CO
Slide 5: COVID-19 Impact: Medium-to-Long-Term Impact
COVID-19 Impact: Medium-to-Long-Term Impact • In light of the environmental changes expected to occur after the pandemic, we will further enhance our risk response measures, offer products and services to solve newly emerging social issues, support social stability and achieve sustained growth. Envi
Slide 6: Review for Stage 1 of Vision 2021
Ⅰ. Review for Stage 1 of “Vision 2021”
Slide 7: Progress Toward Aspirations
Progress Toward Aspirations • Our business scale, financial soundness, share of strategic equity holdings and profitability maintain at the target level. • We will continuously strive to achieve the 2021 targets in terms of capital efficiency and portfolio diversity. Vision 2021 (FY2018 - FY2021) Im
Slide 8: The MS&AD Growth Model
The MS&AD Growth Model • Achieve sustained growth positioning the life insurance business and international business as the pillars of future growth, using the robust and stable domestic non-life insurance business as a base. • Accelerate profit growth through investment in three areas: enhancement,
Slide 9: Review for Stage 1: Domestic Non-Life Insurance Business
Review for Stage 1: Domestic Non-Life Insurance Business • The domestic non-life insurance business was a powerful driver of business performance as the Group’s core business. While the response to a series of natural catastrophes had an impact on expense ratio, R&D investment aimed at business stre
Slide 10: Review for Stage 1: Domestic Life Insurance Business
Review for Stage 1: Domestic Life Insurance Business • Due in part to the worldwide fall in interest rates, at present, the top line has declined, but we steadily implemented initiatives outlined in Stage 1 of Vision 2021. MSI Aioi Life MSI Primary Life • By making detailed proposals reflecting cust
Slide 11: Review for Stage 1: International Business
Review for Stage 1: International Business • In light of changes in the business environment, we conducted reorganization of international regional business in order to leverage the strengths of group companies across regions, accelerate speedier decision-making and realize further global growth. Ac
Slide 12: Review for Stage 1: Promote Digitalization
Review for Stage 1: Promote Digitalization • We have rolled out business reform-oriented initiatives on a global scale, such as investment in advanced Sartups through our Silicon Valley-based CVC. • By running various promotional measures, developing digitally-minded human assets and coordinating ex
Slide 13: Review for Stage 1: CSV Initiatives
Review for Stage 1: CSV Initiatives • CSV initiatives have taken root within the Group. These efforts will form the basis for linking solutions to social issues with our growth. Examples of Initiatives Creating Shared Value Cyber security-related products Impact on Society with Society (CSV) Offerin
Slide 14: Growth Strategies for Stage 2 of Vision 2021
Ⅱ. Growth Strategies for Stage 2 of “Vision 2021”
Slide 15: Progress Toward Numerical Management Targets and Forecasts
Progress Toward Numerical Management Targets and Forecasts • Although we cannot predict the extent of the COVID-19 impact, while its effects are still being felt we will prioritize efforts to reduce expenses, and work to take advantage of environmental changes once the crisis is over to achieve furt
Slide 16: Key Strategy 1: Pursue Group's Comprehensive Strengths
Key Strategy 1: Pursue Groupʼs Comprehensive Strengths • We will further promote initiatives aimed at improving Group quality and productivity to strengthen our competitiveness. • In Stage 2, the effect of business rationalization (Total in Japan and overseas) will be ¥30 billion. Quality improvemen
Slide 17: Key Strategy 2: Promote Digitalization
Key Strategy 2: Promote Digitalization • We will promote three major initiatives that help improve the value of customer experiences and boost business productivity (DX, DI and DG), and promote sustained growth across the Group. Reform Creation Expansion DX Digital DI Digital Digital Transformation
Slide 18: Key Strategy 3: Reform Portfolio
Key Strategy 3: Reform Portfolio • While goal attainment regarding diversification of the business portfolio will be pushed back as we seek to minimize the expansion of new business risks is in part due to COVID-19, we will steadily continue with initiatives based on a starting point of organic grow
Slide 19: Domestic Non-Life Insurance Business: Growth Strategy
Domestic Non-Life Insurance Business: Growth Strategy • We promote initiatives aimed at further expansion of earnings power as core businesses of the Group that are among the largest and most profitable in Japan. Vision 2021 Stage 2: Strategies for the Domestic Non-life Insurance Business Top line B
Slide 20: Domestic Non-Life Insurance Business: Initiatives for Expense Reduction
Domestic Non-Life Insurance Business: Initiatives for Expense Reduction • In addition to realizing steady R&D investment effects, promote measures to further reduce expenses. Effects of large-scale system investments and initiatives to reduce expenses Forecast of the effects of expense reductions du
Slide 21: Domestic Life Insurance Business: Growth Strategy
Domestic Life Insurance Business: Growth Strategy • In anticipation of the era of people living to 100 years of age, the development and provision of products and services that meet increasingly diverse customer needs such as healthcare, nursing care, inheritance, gifting and longevity risks, combin
Slide 22: International Business: Cost Reductions and Growth Synergy due to Reorganization
International Business: Cost Reductions and Growth Synergy due to Reorganization • In the short term, the main results will be cost reductions and business expansion in Asia. • In the medium to long term, we will develop and implement strategies across regions to achieve global growth. Towards growt
Slide 23: International Business: MS Amlin (Measures for Profit Recovery)
International Business: MS Amlin (Measures for Profit Recovery) • Although the recovery in profitability has been behind plan, the loss ratio on non-cat lines has been improving. • Withdrawal from unprofitable and non-core business areas, accelerate efforts to improve the loss ratio of non-cat lines
Slide 24: CSV Initiatives
CSV Initiatives • We will collaborate with a wide range of partners and solve a range of social issues to drive the medium-to-long-term growth of the Group. • We will promote initiatives that offer a strong value proposition to society and contribute to the medium-to-long-term development and growth
Slide 25: Capital Policy
Capital Policy • We will make investments to ensure stable shareholder return and sustained profit creation, and in doing so realize enhanced shareholder value. Strengthen： Investment to strengthen the competitiveness of existing businesses • We will carry out investments that demonstrate a strong a
Slide 26: Corporate Governance
Corporate Governance • In order to become a world-leading insurance and financial services group, we plan to appoint the first foreign female director of MS&AD Insurance Group Holdings. Selection Process of a Candidate for Newly Appointed Outside Director Consider the In light of the selection stand
Slide 27: Shareholder Return
Advancing with you INSURANCE GROUP V. Shareholder Return MS&AD Insurance Group Holdings, Inc.
Slide 28: Shareholder Return Policy
Shareholder Return Policy • For FY2019, the annual dividend is planned to rise by ¥10 to ¥150. In addition, share buybacks of up to ¥15 billion are planned. • For FY2020, the annual dividend is forecast not to change ¥150 in order to provide stable dividends despite the uncertain business environmen
MS&AD Insurance Group Holdings — Investor Presentation (May 2020) on 6ix