Tokio Marine Holdings Inc (TKOMF) Q2 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, and good evening, everyone. This is Komia speaking. I thank you for sparing your time with us this evening despite your busy schedule. I also like to appreciate your continuous understanding and support you extend towards Tokyo Marine. First of all, I would like to explain about the earnings highlights and messages from the management based on such highlights. Please turn to page three. They are mainly Three points I would like to convey to you today. First is the continued strong performances. Looking at the most recent earnings, although we are impacted by natural catastrophes and capital loss in North America, underlying profit, excluding one-off effect, continues to perform well, especially by key overseas entities. In fact, Four-year projections on a normalized basis, excluding one-off effect, is revised upwards by 5 billion Japanese yen to be 675 billion yen, and that would make year-on-year 9% growth. Second point is on shareholder return. As I have been saying, I still believe that profit growth and DPS growth should be in tandem to each other. Since profit momentum is strong, DPS in fiscal 23 will be unchanged at 121 yen, and that will be 21% year-on-year growth of DPS. Stock to capital will be adjusted with the discipline. Recent ESR remains strong at 133%. One stop of that. There is also one profit to be generated from group reorganization. Considering various factors, including business investments and current M&A pipeline and other factors comprehensively, share buyback for fiscal 23 will increase from the original announced 100 billion yen up to 120 billion yen. This will be explained in more details from our CFO, Mr. Okada, later on. The third point is concerning various incidents at PM&F, which we know is causing concerns among consumers and ma...