Tokio Marine Holdings, Inc. TSE:8766
Tokio Marine : Financial document (IR conference FY2025 e v2)
Source: MarketScreener
Copyright (c) 2024 Tokio Marine Holdings, Inc.
May 26, 2025
Table of Contents
I. Profit Growth Track Record .............................................. | P. 4 |
II. Business Strategy International Business .................................................... | P. 7 |
Japan P&C Business ....................................................... | P. 16 |
Solutions Business .......................................................... | P. 22 |
III. Group Business Strategy (Capital Policy, etc.) ............. | P. 28 |
IV. Reference ......................................................................... | P. 34 |
Abbreviations used in this material
Copyright (c) 2025 Tokio Marine Holdings, Inc.
P&C TMHD TMNF NF TMNL
: Property & Casualty (Nonlife insurance)
: Tokio Marine Holdings
: Tokio Marine & Nichido Fire Insurance
: Nisshin Fire & Marine Insurance
: Tokio Marine & Nichido Life Insurance
PHLY DFG RSL SNCC TMHCC TMK TMSR
: Philadelphia
: Delphi Financial Group
: Reliance Standard Life
: Safety National
: Tokio Marine HCC
: Tokio Marine Kiln
: Tokio Marine Seguradora2
Key messages
Top-tier EPS and DPS
Growth
Most recent EPS growth (results) was +19.9%* (5Y CAGR). The main driver is core business profit growth (5Y CAGR of +18.0％*) centered on organic growth. We will continue to deliver robust growth because of our top-tier U/W profit across all regions and solid investment capabilities, which leverage our long-term and predictable insurance cashflows
Deliver top-tier DPS growth in line with EPS growth. Projected DPS is JPY210 (+22% YoY) for FY2025. No change to the policy of continuously raising DPS growth after the introduction of IFRS
in FY2026
*: 2019-2024 CAGR. Excl. capital gains from the sales of business-related equities
Raise ROE to the level of Global Peers
Adjusted ROE in FY2024 is 12.6% (19.8% incl. capital gains from the sales of business-related equities), making steady progress on raising ROE to be in line with global peers
Key drivers for this remain top-tier EPS growth and disciplined capital policy.
Overall ROE expansion will be driven by releasing capital held in business-related equities and reinvesting it into the core business, which has a high ROR (20.4%), and expanding the solutions business, which is capital light
Current ESR is 149%. Considering the level required to boost EPS growth by 2%, the M&A pipeline and other factors, current plan for FY2025 share buyback is JPY220.0bn throughout the year
Steady progress in strengthening Group governance
The efforts to strengthen group governance are steadily advancing, driven by the newly established Group Audit Committee in April 2024. Utilizing an 'external perspective,' the committee conducts thorough reviews and proposes countermeasures. We will continue to strike a healthy balance between 'profit growth' and 'governance,' aiming to further enhance corporate value
The 'Re-New' initiative, prompted by the receipt of a business improvement order at TMNF, is steadily progressing. Traditional practices like business-related equities are being eradicated, creating a more competitive environment where we are selected based on the unique value we can provide. (This positions us to achieve significant advancements because, as the Japan P&C market becomes more transparent and attractive, our capabilities will be further amplified)
Copyright (c) 2025 Tokio Marine Holdings, Inc.3
Our EPS growth is top-tier with steady progress toward our current MTP
Our EPS Growth*1
EPS Growth Global Peer Comparison*1,2
I. Track record
Top-tier EPS Growth (Progress on the MTP)
Progress on the MTP
(Yen)
23-26
CAGR
23-25
CAGR
+10.5%
or more
+8%
368
301
349
Each Company’s Targets
+8 % or more
+9 % or more
+7-9%
+6-8%
Not disclosed
2023 2024 2025E 2026 Plan TMHD Allianz AXA Chubb Zurich
2023-2026
CAGR
2024-2027
CAGR
2023-2026
CAGR
2024-2027
CAGR
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: Adjusted net income, the numerator for our EPS, is based on normalizing Nat Cats to an average annual level and excluding capital gains/losses in North America, etc. (for part of change from the initial plan). For FY2024 calculation, amount of group level capital losses budget in North America is revised from -$265M (before tax), which is the original plan for
FY2024, to -$440M (before tax). Additionally, capital gains from sales of business-related equities which are unique to us are excluded4
*2: Peers’ profits, the numerators for their EPSs, are peers’ KPI profits. Peers’ KPIs are as of May 1, 2025. The same applies on the next page. (Source) Each company data
Our EPS growth is top-tier driven by the robust organic growth capability
EPS Growth Track Record (Breakdown)
（2019-2024 CAGR）
EPS Growth Global Peer Comparison
I. Track record
Top-tier EPS Growth (Track Record)
+19.9％
EPS
Growth
+19.9%
Adjusted Net Income Growth (excl. capital gains from sales of | +18.0％ |
business-related equities ) | Of which, impact of M&A* |
1.5% |
+17.7%
+7.9%
+8.1%
+5.7%
+1.9％
Share buyback
TMHD Allianz AXA Chubb Zurich
*: Pure’s Business Unit Profits
Copyright (c) 2025 Tokio Marine Holdings, Inc.5
We aim to achieve high EPS growth while managing volatility. Our track record demonstrates that we have been successful in this, and we expect to replicate the strategy in the future. Going forward, we can further reduce volatility by expanding the solutions business, which is a fee focused business (see P.22 and following pages)
I. Track record
Volatility of EPS Growth (Track Record)
High growth
EPS Growth Volatility (global peer comparison)
Allianz | TMHD Chubb | ||
Zurich AXA |
Volatility* 0
Low volatility
(2019-2024)
-2
2
*: Coefficient of variation
Copyright (c) 2025 Tokio Marine Holdings, Inc.
4
-4
0% 10% 20%
EPS Growth 5 year CAGR (2019-2024)
6
While progress of overall international business has been affected by the increase in capital loss in North America, underwriting profit is above the MTP
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
Progress to current MTP
*1,2>
478.2
463.5
486.5
23-25 CAGR +0.9%
Excl. Prior year loss reserve movement 23-25 CAGR +4.1%
23-26
CAGR
+5%
or more
(billions of JPY)
Underwriting
23-25 CAGR
+2.2%
Incl. -5.2pt impact of increase in capital loss budget in North America comparing to MTP
Investment and others*3 23-25 CAGR
-
%
0.2
Excl. Prior year loss reserve movement
23-25 CAGR
+10.2%
2023 2024 2025E 2026 Plan
*1: Normalized Nat Cats to an average annual level and excluding capital gains/losses in North America, etc. (for part of change from the initial plan).
For FY2024 calculation, amount of group level capital losses budget in North America is revised from -$265M (before tax), which is the original plan for FY2024, to -$440M (before tax)
*2: FX is as of the end of March 2024
*3: Include business unit profit of Asia Life, etc.
Copyright (c) 2025 Tokio Marine Holdings, Inc.7
North American Business derives its high profitability primarily from both U/W and asset management
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
North American Business: Organic Growth Potential
North America*1 Bottom-line Growth*2 (Estimate, USD bn)
Underwriting*2 ■Investment and others etc.
No.2 No.5
No.1
Renewable Energy
Cyber Insurance
Commercial Insurers ratings*5
No.1 No.5 No.6
P.10
Excess WC
D&O
Surety
Both Specialty P&C and Employee Benefits lines demonstrate top-tier presence and growth in U.S.
Specialty P&C*4 P.9
Significant Presence in the Market
21-26
CAGR
+16%
3.1
2.7
2.1
2.3
2.3
1.8
2021
2022
2023
2024
2025E 2026 Plan
（Ref.）
Employee Benefits*6
U.S. Peers*3
21-26 CAGR +15.6％
No.5
Significant Presence in the Market
Medical Stop Loss
No.9/No.11
94.3%
C/R*2
21-26
LTD/STD
(Disability)
CAGR
TMHD North America ■ Market*7
FY24 results 5.8%
FY25 plan 5.4%*8
FY24 results
3.7%
With DFG's strengths, securing a stable investment income and outperforming the market growth
Income Yield P.13
8%
6%
4%
2%
0%
+9%
（Ref.）
U.S. Peers*3
92.4%
93.8%
92.5%
91.8%
92.4%
21-26 CAGR +8.0％
16 17 18 19 20 21 22 23 24 25E
*1: PHLY, DFG(RSL, SNCC), TMHCC, Pure, etc.
*2: Excluding the impact of the change of prior year’s reserves
*3: AIG, Chubb, Travelers (Source) D&P / partial estimates
*4: PHLY, SNCC, TMHCC (excl. A&H unit), etc. (Pure is not included)
(Source) Ranking of renewable energy is estimated by us based on each companies’ disclosure.
Other linces are from S&P Capital IQ
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*5: FT Commercial Insurance GIST 2024 Survey of risk managers of large companies (Source) P&C Specialist: Big Commercial Insurers with the Highest Favorability Ratings
*6: TMHCC (A&H unit), RSL
(Source) Medical Stop Loss: NAIC Disability: LIMRA
*7: Average of U.S. property and casualty insurance companies (market capitalization of USD20bn or more)
(Source) S&P Capital IQ, Factset8
*8: Assumed yield based on the market conditions as of the end of Feb. 2025
The Specialty P&C line*1 achieves higher profit growth than Peers by leveraging disciplined underwriting strategy in each products and market
9
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
North American Business: Organic Growth Potential (Underwriting (1): Specialty P&C Line)
Top line | 11.1 | |
(billions of USD) 8.7 9.5 9.8 10.6 21-24 CAGR +6% (Ref.) Peers*3 21-24 CAGR 2021 2022 2023 2024 2025E +9% Top-class presence in the US A price leader with strong pricing power Robust sales network Strong relationships with leading agents / brokers that enable disciplined underwriting | ||
C/R*2 |
| |
100% FY24 results c. 95% 95% FY25 projections 90% FY24 results c. 91% c. 92% 85% 2021 2022 2023 2024 2025E Outperform Peers in terms of profitability Maintain a C/R of approx. 90% with a thorough focus on the bottom line Underwrite over 100 of specialty lines of insurance with a low correlation | ||
Underwriting profit*2
(billions of USD)
21-24
CAGR
21-24 CAGR +5%
+14%
(Ref.) Peers*3
1.02
0.74
0.80
0.70
0.55
2021 2022 2023 2024 2025E
*1: PHLY, SNCC, TMHCC (excl. A&H unit), etc. (Pure is excluded)
*2: Excluding the impact of the change of prior year’s reserves
*3: Cincinnati, Hanover, Markel, W.R. Berkley (Source) D&P / our estimates for some data
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The Employee Benefits line*1 steadily expands the top line while maintaining C/R at around 95%
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
North American Business: Organic Growth Potential (Underwriting (2): Employee Benefits Line)
Underwriting profit*2
(billions of USD)
Top line
(billions of USD)
2.9
3.3 3.6 3.9 4.1
1121-24 CAGR
+ %
21-24
+25%
CAGR
Effect of rate decreases as a swing-back
0.25
0.27
0.23
0.21
0.12
The years with a very favorable rate environment for paid leave compensation, etc.
2021 2022 2023 2024 2025E
Enhanced competitive advantage with both “insurance” and “high-quality services”
Deliver highly specialized absence management service and employee benefits, comprising a top-rated insurance carrier and leading national absence management third-party administrator (TPA)*3
100%
95%
90%
85%
The years with a very favorable rate environment for paid leave compensation, etc.
C/R*2
FY24 results
c. 94%
FY25 projections
c. 95%
2021 2022 2023 2024 2025E
2021 2022 2023 2024 2025E
Stable profitability
Rate setting and risk selection based on loss cost
Diversified portfolio (=>P.11)
*1: TMHCC (A&H unit), RSL
*2: Excluding the impact of the change of prior year’s reserves
*3: Matrix:
A third-party administrator under DFG providing customized services regarding absence management etc.
Copyright (c) 2025 Tokio Marine Holdings, Inc.
Offer the employee benefit business for companies, including disability insurance and medical stop-loss
10
In the North American business, inflationary impacts are properly controlled through proactive measures based on portfolio characteristics
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
Controlling Inflationary Impacts
Percentage of reserve by inflation type for the North American business
Goods/services
Social
Medical/wages
C.15％
C. 30％
C. 55％
Medical: c. 40％ Wages: c. 15％
Characteristics / measures Characteristics / measures Characteristics / measures
Relatively resilient structure against economic COGS inflation is due to our business focus on specialty insurance (i.e., less property and auto physical damage insurance)
Possible to control through rate increases greater than economic
Strengthened reserves as early as FY19 to enhance resilience to social inflation. Since then, prior year reserves have developed favorably
Significantly reduced high limit policies
Carefully monitor social inflation trends*1 and will take an action
Medical stop-loss is short-tail with limited impacts
Properly control with measures, including proactive rate increases and the raising of SIR*2
(loss cost) inflation
properly
=> See P. 55 for details
=> See P. 56 for details
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: U.S. litigation court case disposal rates, third party litigation funding, number and size of U.S. court “nuclear” verdicts, emerging mass tort/class action settlements, changes in juror behaviors and attitudes, etc.
11
*2: Self Insured Retention
Strict control of Nat Cat exposure and excellent risk selection in North America
contained the impacts of LA wildfires at a relatively low level compared to major insurers in the state of California
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
(Ref.) Impacts of LA Wildfires (Resilience to Nat Cats)
*1 on Tokio Marine and Major Insurers*2 in CA>
8.2%
5.9%
4.4%
2.1%
3.1%
2.2%
0.6%
State Farm TMHD Allstate Liberty Mutual Travelers Chubb Mercury
(Ref.) Net Incurred Losses (millions of USD) | 612 | 187 | 1,100 | 1,200 | 1,731 | 1,470 | 414 |
Premium Ranking in CA | No. 2 | No. 15 | No. 9 | No. 4 | No. 3 | No. 5 | No. 6 |
*1: For each company, the figure was obtained by dividing each company’s disclosed net incurred losses by the FY2024 North America Net Premiums Earned (Source) Each company data, Dowling & Partners, LLC IBNR, S&P Capital IQ
*2: Listed are the top 10 companies in Direct Premium Written for fire insurance-related lines in the state of California (FY2024), excluding Reciprocals (Farmers, CASS, Auto Club Exchange, USAA)
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Investment income remains strong on the back of an increase in long-term and predictable insurance cash flows supported by strong business expansion and stable investment income
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
North American Business: Organic Growth Potential (Asset Management)
Investment Income Gain
from North American Business
21-24
CAGR
+20%
3.3
3.5
3.6
2.0
2.3
（billions of USD）
Income
TMHD North America ■ Market*2
7%
6%
5%
4%
3%
2%
1%
0%
FY24 result*4
5.8%
FY25 plan
5.4%
FY24 result
3.7%
2021 2022 2023 2024 2025E
Higher yields than the market
Focus on assets with relatively higher ROR
*4: Of which, DFG portfolio income yield: 6.4%, other than DFG portfolio: 4.0%
13
Income Yield
Incl. impact of interest rate cut*3
AUM | ||
（billions of USD） 64.471.1 50.2 51.6 58.9 21-24 CAGR +9% 2021 2022 2023 2024 2025E Long-term and stable cash flows enable holding investment assets until maturity, allow us not to make decisions based on short-term market volatility | ||
Income + Capital*1
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2021 2022 2023 2024 2025E
*1: Gain/loss on sale + impairment loss + CECL
*2: Average of U.S. non-life insurance companies (market capitalization of $20B or more) (Source) S&P Capital IQ, Factset
*3: Assumed yield based on the market conditions as of the end of Feb. 2025
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The Brazilian business achieves top-tier growth in the market and profitability by realizing both superior business quality and high price competitiveness
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
Brazilian Business Organic Growth Potential
TMSR ■(Ref.) Brazil Peers*3
105%
100%
FY24 results
c. 97%
95%
FY25 projections
90%
85%
c. 92%
FY24 results
c. 90%
2021 2022 2023 2024 2025E
Top-tier cost effectiveness in the market
(FY24 admin expense ratio: 8.3%)
Business process improvement using DX / IT technology
Profitability outperforming the market
Timely and frequent rate revisions based on data analyses
*5: As of Feb. 2025. Based on our calculation *6: Auto insurance market
14
C/R
Assume increased competition particularly in auto
Top line*2 | |
Growth outperforming 21-24 CAGR (Ref.) the market Brazil Peers*3 Strong support from customers / brokers +22% 21 +11% R (industry's highest level of NPS of 80％*5) -24 CAG M/S*6 saw great expansion (2014: 5.9％ to 2024: 14.2％) | |
Underwriting profit*1
(billions of BRL) 1BRL = JPY25.6 (as of the end of Dec. 2024)
21-24
CAGR
+93%
(Ref.) Brazil Peers*3
21-24 CAGR N/A*4
1.25 1.10
0.88
0.34
0.15
Assume intensified competition particularly in auto
Historical high results driven by auto
Incl. impact of weather-related losses such as floods
2021 2022 2023 2024 2025E
*2: GWP
*1: Estimates, based on the local accounting
*3: Allianz, HDI, Mapfre, Porto, Sompo, Zurich (Source) SUSEP
*4: Not applicable because the peers’ FY2021 underwriting profit (estimate) is negative
Copyright (c) 2025 Tokio Marine Holdings, Inc.
ROI of our large-scale M&As is 21.2%. Successful track record makes Tokio Marine an acquirer of choice, as we look to future M&A opportunities
The discipline of In/Out strategy remains unchanged while the sales of business-related equities is accelerated
Strict acquisition criteria
“In” Strategy（ M&A, new establishment）
II. Business Strategy: International
Progress to current MTP
North American business
Brazilian business
M&A
Disciplined In/Out Strategy
Target
Cultural fit
(Three
pri of
nciples
High profitability
M&A)
Solid business model
ROI*1 of our large-scale M&As is 21.2％, significantly exceeding our capital cost (7%)
Steadily executing small- and medium-sized bolt-on M&As (P.44)
Mar. 2008
Dec. 2008
May 2012
Oct. 2015
Feb. 2020
“Out” strategy (divestment, run-off）
Hurdle rate
Cost of capital (7%)
+ Risk premium
+ Country interest rate spread
We are implementing the “Out” strategy also with discipline by determining the future of the business in a forward-looking manner
Mar. 2019
Highland*2
Aug. 2022
Guam TMPI
Dec. 2023
Sale completed
Saudi Arabia Life/Non-life Feb. 2024
Sale completed
Korea Reinsurance Under closure procedures
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*1: ROI numerator is simple sum of FY2025 projection for business unit profits, denominator is simple sum of acquisition amounts (Differs from ROE, which reflects diversification effect (=ROR / ESR)).
15
ROI, when calculated based on the actual FY2024 results, is 20.4%
*2: Agent handling construction insurance in the Tokio Marine Highland (former WNC) group owned by TMK
While Japan P&C business is currently behind the initial underwriting target, overall profit progress remains on track toward achieving the FY2026 target under the current MTP, supported by planned initiatives
II. Business Strategy: Japan P&C
Progress to current MTP
Organic Growth Potential
Underwriting
Distribution
Progress to current MTP
*1,2>
(billions of JPY)
23-25
CAGR
-2.9%
23-26
CAGR
+5%
Implement additional measures including rate increase in auto
or more
Deterioration in auto loss ratio
One-off effect of increased prior year loss reserves for liability insurance in North America (2024 only)
155.9 132.7 147.0
Underwriting
23-25 CAGR
+1.7%
Incl. -12.6pt impact of reduced dividends associated with the sales of business-related equities
Investment and others 23-25 CAGR
-11.8%
2023 2024 2025E 2026 Plan
*1: Normalized Nat Cats to an average annual level and excluding capital gains/losses in North America, etc. (for part of change from the initial plan).
For FY2024 calculation, amount of group level capital losses budget in North America is revised from -$265M (before tax), which is the original plan for FY2024, to -$440M (before tax)
*2: Excluding the impact of FX
Copyright (c) 2025 Tokio Marine Holdings, Inc.16
Our C/R is low compared with other insurers. Per the MTP we will continue to maintain it and expect a double-digit annual growth in underwriting profit
Implement ”Re-New“ initiatives to accelerate profit improvement and further strengthen growth base
II. Business Strategy: Japan P&C
Progress to current MTP
Organic Growth Potential
Underwriting
Distribution
Growth Driver of Japan P&C Business (Underwriting Strengths)
1 (estimates)>
(billions of JPY)
13-23
CAGR
7
23-26
CAGR
+11%
Through the “Re-New” initiative (the project to break away from conventional business practices
to transform TMNF. See P. 57), further
52.6
+ %
99.8
or more*2
103.0
74.6
promote/strengthen profit improvement measures
Measures for low profitability contracts (P.18)
Distribution reform
(P.21）
Our growth will be accelerated significantly as the non-
insurance competition (business-related equities,
2013 2023 2024 2025E 2026Plan
*3>
cooperation in customer’s business and secondments, etc.) is eliminated and we will compete based on the intrinsic value of insurance product
110% TMNF SJ MS+AD
100%
90%
2013-2024 average
Rate increase implementation ability (P.19）
Advantage in U/W (P.18)
97.4%
97.3%
TMNF: 94.9%
Portfolio reform (P. 20) (growth of specialty insurance)
2013 2024
*1: Normalized Nat Cats to an average annual level and excluded the impact of FX.
The annual average basis for FY2024 is calculated based on the annual budget17
Copyright (c) 2025 Tokio Marine Holdings, Inc.
(JPY100.0 bn, before tax) projected in the current MTP
*2: Including additional impact (approx. +1%) of Re-New announced in Nov. 2024
*3: Private insurance E/I basis
We have consistently achieved a lower L/R than other insurers, as a result of global-standard, disciplined U/W strategy combined with exceptional field U/W capabilities, which enable their implementation
Take thorough measures to improve the profitability of poorly performing policies through “Re-New” and make L/R even lower
II. Business Strategy: Japan P&C
Progress to current MTP
Organic Growth Potential
Underwriting
Distribution
Source of Organic Growth Potential (1): Advantage of Our U/W Capabilities
approx. JPY+5bn
2025 plan:
100%
75%
L/R consistently
TMNF SJ MS+AD
Global-standard U/W strategy
Strategy
Global U/W structure deepened over years
(Joint group CRSO structure is in its 10th year)
remains low
50%
2020 2021 2022
2023 202
2024 results
51.1%
4
Lower than other insurers
Eiichi Hosojima
Senior Managing Executive Officer Group CRSO
Susan Rivera
Managing Executive Officer
Joint Group CRSO
by 9 to 12pt
Subdivide unprofitable policies and take thorough measures for each Tier
Arrange globally integrated reinsurance Established global product introduction
Tier3
Strengthen disciplined U/W such as PDCA management of polities for intensive measures (Tier2, 3)*1
and disciplined underwriting through
collaboration with European and US group
companies
ty
Exceptional field U/W capabilities
Implementation
Tier２
Tier3
火災
収保規模︓
約4,000億円
Fire
Policies for intensive measures* approx. JPY58bn
Tier２
Special
Policies for intensive measures* approx. JPY22bn
*2>
2024 result:
(e.g., Cyber, D&O, M&A Rep and Warranty)
Size of premiums written:
approx. JPY400bn
Size of premiums written:
approx. JPY600bn
approx. JPY+5bn
Risk judgment ability / pricing ability
Tier1 Tier1
*1: Tier3 “Large poorly performing policies,” Tier2 “High-risk policy group”
*2: After tax / estimation
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We have implemented strategically aggressive rate increases in the Japanese market, which is now in the hardening cycle. As a result, we will achieve C/R stably lower than targets
II. Business Strategy: Japan P&C
Progress to current MTP
Organic Growth Potential
Underwriting
Distribution
Source of Organic Growth Potential (2): Rate Increase Implementation Ability (L/R Improvement)
Auto insurance Fire insurance
1>
110%
98.0%
95.4%
C/R falls
below the 95% level
105%
99.8%
100%
95%
90%
88.0%
85%
Expected to achieve RoR > 7%
(C/R of lower than 90%)
105%
100%
95%
90%
85%
80%
2019 2020 2021 2022 2023 2024 2025E
2>
1.2
1.15
Rate increase results
1.1
1.05
Rate increase results
Approx. +3.5%
Offset recent increases
1.1
[ ]: Timing of rate revision
Effect of rate increases manifests
1
0.95
Approx. +2.5%
in loss cost by substantial rate increases in 2025
1.05
1
0.95
[Oct. 2019] [Jan. 2021] [Oct. 2022]
in a dispersed manner because of long-term policies
[Oct. 2024]
2019 2020 2021 2022 2023 2024 2025E 2019 2020 2021 2022 2023 2024 2025E
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*1: Obtained by normalizing Nat Cats losses to an average annual level19
*2: the index was created using the year of 2019 as the starting point
Given the low penetration rates of specialty insurance in Japan, there is a large opportunity for growth. Specialty insurance can grow with a low/stable C/R through enhancement of cyber, GX, and other products by leveraging the knowledge of European/US group companies, expansion of sales to SMEs with low diffusion rates, etc.
Markets with much opportunity for growth
Growth potential of specialty insurance
II. Business Strategy: Japan P&C
Progress to current MTP
Organic Growth Potential
Underwriting
Distribution
Source of Organic Growth Potential (3): Portfolio Reform (Growth of Specialty Insurance)
1>*2>
: Existing market
: Potential market
ヘルスケア
SME
サイバーレジリエンス
GX
approx. JPY2tn across 5 priority areas
A potential market of
0
500
1,000
1,500
Healthcare
21-26
CAGR
+6.0%
618.7
645.0
(billions of JPY）
SME
Resilience
Cyber Resilience
518.2
595.8
GX
GX
5,000
10,000
15,000
2021 2023 2024 2025E 2026Plan
Market size (billions of JPY)
*1: For details, see P.66
C/R
22%
27%
Includes One-off effect of an increase in prior year loss reserve for liability in North America
Specialty insurance percentage (vs. all lines*2)
90.2％
90.7％
97.6％ 92.8％ Around 90％
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*2: TMNF net premiums written20
We aim to build customer oriented, high-quality, and independent distribution through "Re-New“.
We will shift to a quality-focused agency commission system, while implementing measures of segmentation and targeted specialization of agents that struggle to operate independently in order to eliminate the “two-tier structure”
This is expected to result in reduction of admin expenses (approx. JPY7.0bn) and agency commissions (approx. JPY30.0bn). They are progressing steadily, and after completion, the E/R will be below 30%
II. Business Strategy: Japan P&C
Progress to current MTP
Organic Growth Potential
Underwriting
Distribution
Source of Organic Growth Potential (4): Structural Reform of Distribution
1>
36%
34%
s
Maintained 2-3pt lower than other insurer
32%
30%
TMNF SJ MS+AD
28%
c. -0.3pt
commission system
Shift to a new agency
c. -0.5pt
commission system
Shift to a new agency
Realized in 2024
Realized in 2025-26
31.6% 31.5%
Around 31%
o/w agency commissions represent 19％ mark
Post-2027 Realization
Segmentation and targeted specialization of agency operations
c. -0.7pt
Below 30%
o/w agency commissions represent 18％ mark
Current initiatives (FY2025-) Formulation of quality evaluation system unique to TMHD*2
c. JPY30bn
(equivalent to reduce E/R by c. -1.5pt)
Effect of agency commission reduction (total)
Push forward with big shift to a quality-focused agency commission system
Build a new model for paying commission based on delegated tasks (e.g., when taking over part of agency’s tasks, paying fees excluding those tasks)
(division of operations)
Realize
high-quality and independent distribution
（“Re-New”）
2019 2020 2021 2022 2023 2024 2025E 2026
Plan
After completing Re-New
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: Private insurance basis. “Besides the effects of “Re-New”, the factor of increases in business and personnel expenses, the factor of decreases through top line expansion due to decreased office work / increased employees’ activities, and other factors are included
*2: In April 2025, we formulated the Quality Assessment System for Agency Operations and Post-evaluation Categorization by adding criteria unique to TMHD (quantitative criteria, etc.) following the industry-wide guidelines for quality evaluation announced in March 202521
With the diversification and increasing complexity of risks, the resulting expansion of global economic losses and protection gaps makes insurance an inherent growth industry. In addition to pursuing growth through disciplined risk underwriting in the insurance business, TMHD is focusing on the solutions business that reduces losses, thereby capturing unique growth opportunities not available to global peers
Expansion of protection gap*
: Losses covered by insurance
: Losses not covered by insurance
(billions of USD)
Capturing growth opportunities
62
Total losses
227145
Industry-wide
Growth opportunities in the insurance business
As risks spread, the areas covered by insurance expand accordingly (P.7–21)
Total losses
The areas where we can offer solutions that reduce losses and risks are expanding
(P.23–25)
TMHD-specific
Growth opportunities in the solutions business
368FY2014 FY2024
165
223
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*: The graph is an example of Nat Cats (Source) 2024 Weather, Climate and Catastrophe Insight, Aon22
II. Business Strategy: Solutions
Growth opportunities
Solutions Business
Market Environment and Growth Opportunities
Our capability to offer disaster prevention and mitigation solutions to avoid and minimize customer’s damage in the event of a disaster has improved exponentially
Offer highly effective recurrence prevention measures by combining the high-level engineering technology of ID&E, the No.1 engineering consultant in Japan, which joined the Group, and the accumulated data at TMNF, No.1 P&C insurer in Japan
II. Business Strategy: Solutions
Growth opportunities
Solutions Business
Unique Values We Offer in Disaster Resilience
measures
Elaborate simulation
Offer engineering consulting also utilizing insurance payment and realize highly effective adequate prevention
Propose appropriate
Cause analysis, survey
Implement prevention measures
Typhoon hits
Flooded area from above*1
Get flooded
flood damage risk>
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: White area is not inundated
a
Typhoon hits again
Build Watertight doors
z
Build Watertight
barriers
Install check-valve*3
Not flooded*2
Realize ”Build Back Better”
Best team supporting “Build Back Better”
Japan’s No. 1 P&C
Risk information based on massive insurance payment data and underwriting track record
TMNF
Japan’s No.1 engineeringconsultant
Overwhelming expertise and engineering technology cultivated in public works over years
ID&E
*2: Possible to minimize damage when it floods23
*3: Device for preventing sewage backflow
Offer prevention and mitigation solutions as a more effective way of utilizing insurance claim payment in a disaster. We can “Build Back Better” so that similar damage will no longer occur (As a result, our U/W portfolio will become more resilient while keeping in check the premium payments of policy holders)
II. Business Strategy: Solutions
Growth opportunities
Solutions Business
Impacts of Our Preventative and Mitigation Solutions
Disaster damage
(Cost of business suspension and repair)
e.g. JPY1.0bn
(After a disaster occurs)
Countermeasures implemented
No countermeasures
Disaster hits
Disaster damage
(Cost of business suspension and repair)
e.g. JPY1.0bn
insurance claim payments
More effective utilization of
Restoration and Prevention Measures
(Build Back Better)
(Only restoration)
Another disaster hits
No recurrence*
Recurrence
(Cost of business suspension and repair)
e.g. JPY1.0bn
Premium
Premium
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*: When there is damage, it is possible to minimize damage.24
Engineering consultation market in the disaster prevention and mitigation business is currently centered on public sector (ID&E has the top market share of c. 10%). Going forward, the private sector is expected to grow significantly (+JPY0.4tn), with the overall market expanding to JPY1.5tn
By joining the Group, ID&E will gain opportunities to make a full-scale entry into the private sector and expand the business (particularly the timing of insurance claim payment)
TMNF to stimulate disaster prevention needs and refer customers
Expand into private sector
Market size of “disaster prevention and mitigation business” in Japan*1
No. 1 share in Japan
Growth of existing business (public sector)
Growth of ID&E
ID&E
Public
JPY0.7tn
Private (existing market)
JPY
80bn
市場規模
0.8兆円
Market size JPY0.8tn
Public
JPY1.1tn
Market size JPY1.5tn
Capturing private sector’s potential growth
Room for Growth
TMNF | |
Capture “restoration demand” | |
Utilize the timing of fire insurance claim payment Offer measures to improve resilience in restoration to leverage insurance claim payment more effectively at the time of disaster, when disaster prevention needs increase (Ref.) Total fire insurance claim payment*2 TMNF: approx. JPY200bn Industry: approx. JPY950bn | |
Private
JPY0.4tn
2025
Public sector
is more than 90%
Copyright (c) 2025 Tokio Marine Holdings, Inc.
2032
Potential market of private sector to expand
*1: Estimated market size (According to our research)
*2: (Source) General Insurance Association of Japan25
II. Business Strategy: Solutions
Growth opportunities
Solutions Business
Growth Opportunity in Disaster Resilience
Our “integrated group management” is evolving in its 10th year, establishing a framework where highly skilled professionals can thrive and are empowered to capture preferable risks in line with our risk appetite
II. Group Business Strategy
Integrated Group Management
Group Synergy
Source of Organic Growth (Globally Integrated Group Management)
International top management leveraging expertise
CEO of TMHCC.
Leveraging her expertise as an actuary, she has served as U/W manager for several product lines and as CEO of MGA with an edge in Specialty.
APIW 2025 Insurance Woman of the Year*
[Global Committees and Conferences]
Global Retention Strategy Committee (Co-Chairperson)
ERM Committee
Officer & Chairman
Investment
CEO of DFG. ~20 years in the insurance industry.
He has extensive experience (more than 35 years)
in asset management, having served as CEO of one of
Christopher Williams
Chairman of Int’l Business
Brad Irick
Managing Executive Officer Co-Head of Int’l Business
José Adalberto
John Glomb
Managing Executive Officer
From Apr. 2025
Caryn
Susan Rivera
Managing Executive Officer Co-CRSO
Donald Sherman
Vice President Executive Officer Co-CIO
Stephan
the largest unlisted mortgage companies in the US.
[Global Committees and Conferences]
Investment Executive Roundtable
ERM Committee
Underwriting
Deputy CxO
Ferrara
Executive Officer
Angelson
Executive Officer CDIO
Kiratsous
Executive Officer Deputy CFO
From Apr. 2025
Deputy CLCO
Deputy CITO
Deputy CDO
Deputy CAO
Deputy CRSO
Randy Rinicella
Robert Pick
Gus Aivaliotis
Dawn Miller Barry Cook
Reinsurance
Deputy CEO of TMHCC. He led TMHCCI as CEO for about 20 years till May 2025, contributing significantly to its business expansion.
Playing active role mainly in reinsurance in London by leveraging his abundant experience of more than
40 years and his wide network
[Global Committees and Conferences]
Global Retention Strategy Committee
Senior General Manager
Chief Actuary
Cyber
Operation
Daniel Thomas
Copyright (c) 2025 Tokio Marine Holdings, Inc.
Daljitt Barn
Nick
Hutton-Penman
From Aug. 2025
*: The Association of Professional Insurance Women (APIW) awards program has a 50 year history.26
Recognize outstanding women who have achieved excellence in the insurance industry
II. Group Business Strategy
Integrated Group Management
Group Synergy
Source of Organic Growth (Group Synergies)
Revenue synergy (Direct Written Premium)
(USD mn, Calculated as of Dec. 31)
971 986
609
646
757
799
906*
2018
2019
2020
2021
2022
2023
2024
Synergies gained by leveraging group capabilities generate profits on a scale comparable to large-scale acquisitions (approx. USD604mn)
Investment
Leverage DFG’s asset management capabilities
Capital
Optimize
Group synergies
Annual profit contribution: USD604mn
(Dec. 31, 2024)
Revenue
Leverage our global network (e.g., cross-selling)
Cost
Leverage group
Group Synergies
Average P/E multiple of North America P&C
Estimated acquisition cost to generate equivalent profit via M&A
USD604mn × 14.7× ＝ Approx. USD8.8bn
retention/reinsurance at group level
resources and economies
of scale
Generate profits equivalent to large-scale M&A, “with zero additional cost”
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*: DWP rose YoY excl. impact of loss of synergy from specific projects due to sale of Highland in 2022 (ref. P.43) 27
By reinvesting excess capital generated through sale of business-related equities into core businesses with higher ROR, we aim to raise our ROE to the level of global peers. Furthermore, our solutions business, with its low capital requirement, will serve as a unique ROE driver
III. Group Business Strategy
ROE Improvement
Shareholder Return
Governance Enhancements
Our Two Unique ROE Growth Drivers Not Found in Global Peers
[Adjusted ROE*1, 2]
Excl. capital gains from sales of business-related equities in the parentheses
We are ‘on the journey’ of raising ROE
20.7%
Zurich 36% ●
Fee-based business
with low capital requirement
２ Future Driver (Solution Business)
AXA 28%
●
Transformation of business portfolio
Reinvestment into core businesses with higher ROR using funds from sale of business-related equities
１ Current Driver (Insurance Business)
●
19.8%
(12.6%)
（13.2%）
●
Chubb 19%
20% or higher
Allianz 24%
(2022~, within several years)
15.0%
Top-tier EPS growth
Drivers Both We and Global Peers Have
(13.0%)
6.9%
(3.7%)
2011
2023
2024
2025 (E)
2026
(Plan)
2027
(Plan)
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: Normalized Nat Cats to an average annual level and excluding capital gains/losses in North America, etc. (for part of change from the initial plan)
For FY2024 calculation, amount of capital losses budget in North America is revised from -$265M (before tax), which is the original plan for FY2024, to -$440M (before tax)28
*2: For peers, disclosed ROEs as their KPIs are adjusted to the tangible basis to align them with TMHD’s adjusted ROE (Source) Estimated by TMHD using company data
Status of sales of business-related equities
Ratio to net assets*3
（billions of JPY）
40,000
35,000
30,000
25,000
4,000
III. Group Business Strategy
ROE Improvement
Shareholder Return
Governance Enhancements
Reduction of Business-Related Equities
Sales of business-related equities in FY2024 were 1.5 times the original plan due to further sale acceleration, indicating significant progress towards achieving ”zero*1” business-related equities by the end of FY2029. (Expected sales for FY2025 are JPY600.0bn)
Expect to reach approx. 20% of IFRS net assets by the end of FY2026
*FY2023: 67.8%*2 → FY2024: 43.7%*2
Re-post from Q4 Conference Call on May 20, 2025
Transition to IFRS at the end of FY2025
（net assets increase）
43.7％*2 at
the end of FY2024
60%
50%
40%
15,000
30%
20%
20,000
10,000
5,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Amount sold in book value in 2024: JPY100.0bn
+JPY47.0bn vs. Original plan
Amount sold in 2024: JPY922.0bn
+JPY322.0bn vs. Original plan
10%
Amount sold in219.0 | 922.0 | 600.0（expected） |
Outstanding in400.0 | 300.0 | 240.0（expected） |
2023 2024 2025 2026 2027 2028 2029
market value
0%
2023 2026 2029
book value
-25％ vs. 2023
（-73％ vs. 2002）
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: Excluding non-listed stocks (market value as of Mar. 31, 2025, c. JPY22.0bn in book value) and investments related to capital and business alliance, etc.
*2: Figures based on JGAAP
*3: Based on share prices as of Mar.31, 2025. Net assets at the end of FY2025 onwards are estimates29
We will reinvest excess capital generated through the sales of business-related equities into core businesses with higher ROR
This serves as an ROE growth driver that is unique to us and not available to global peers
III. Group Business Strategy
ROE Improvement
Shareholder Return
Governance Enhancements
Reinvestment into Higher-ROR Businesses (Transformation of Business Portfolio)
Adjusted Net Income
2025 Projection
Adjusted ROE
(Excl. capital gains from sales of business-related equities)
13.2%
/ Adjusted Net Assets*1
≒
Adjusted Net Income
2025 Projection
ROR*2
(Excl. capital gains from sales of business-related equities)
17.9%
/ Risk
÷
Net Asset Value*1
March 31, 2025
ESR
149%
/ Risk
主要事業
Breakdown of 2025 Projection ROR*2 17.9%
Core
B s
usines
20.4%
Business-related Equities
6.0%
Reallocating JPY0.7tn (18% of total risk)*3 that is released by ‘zero’ business-related equities
to core businesses with higher ROR
Copyright (c) 2025 Tokio Marine Holdings, Inc.
*1: Adjusted Net Asset is the average balance of financial accounting basis consolidated net assets adjusted for catastrophe loss reserves, goodwill, etc.
政策株式
Net Asset Value (after deducting restricted capital) is the balance at the end of the period based on the economic value of assets and liabilities which are measured at market value. As definitions differ to each, figures on each sides of the equation do not match
30
*2: After diversification; after tax
*3: As of March 31, 2025