Tokio Marine : Summary of Q&A and Responses to the Advance Questionnaire (Summary of Q&A and Responses to the Advance Questionnaire e)

Question 1

Future growth strategies for the domestic and international insurance businesses (*Question received through the advance questionnaire)

Answer

In the domestic insurance business, we will seek sustainable growth by strengthening our ability to provide value to customers. We see three sources of competitive advantage: value beyond insurance, the best mix of AI/data and people, and the use of Group-wide capabilities.

In addition to insurance coverage, we will work with agents to provide solutions before and after accidents, such as disaster prevention and mitigation support and quick recovery support. Through these efforts, we will help solve customers' issues. We will also use AI and data to change business processes. The people and time created through these changes will be focused on areas such as corporate customers, where risks are becoming more complex and advanced. In addition, we will make full use of the strengths of each Group company, including Tokio Marine & Nichido Fire Insurance Co., Ltd., Tokio Marine & Nichido Life Insurance Co., Ltd., Nisshin Fire & Marine Insurance Co., Ltd., and Tokio Marine Direct Insurance Co., Ltd., to meet increasingly diverse customer needs.

In the international insurance business, we will contribute to stable profit growth for the Group by expanding a globally diversified business portfolio with limited earnings volatility. We will seek growth mainly in the United States, while also expanding in other regions, such as Asia, Africa, and Central and South America, to further advance geographic diversification. We will also use technologies such as AI and data to improve customer service quality and productivity, and to strengthen sales capabilities. For M&A, we will continue to consider opportunities with discipline, based on our principle of selecting acquisition targets with cultural fit, strong business models, and high growth potential.

Question 2

Shareholder return policy

(*Question received through the advance questionnaire)

Answer

Dividends are the foundation of shareholder returns. We decide the dividend amount so that the payout ratio is around 50% of average profit over the past several years. Under our policy of maintaining dividends per share at or above the prior year's level, we have continued progressive dividends without any dividend reduction since fiscal 2002, when the Company was established. We believe the current payout ratio of around 50% strikes a balance between capital needed for further profit growth and shareholder returns. We will continue to seek higher cash dividends through sustainable profit growth.

For share repurchases, our policy is to implement them flexibly and with discipline, taking into account capital levels and other factors. While securing the capital needed for financial soundness and growth investment, we will not hold more capital than necessary, and will return capital to shareholders flexibly and with discipline.

For stock splits, no decision has been made at this time. However, we will continue to consider them from the perspective of making it easier to invest in our shares.

Question 3

Progress on the sale of business-related equities and future sale plans (*Question received through the advance questionnaire)

Answer

The sale of business-related equities is progressing smoothly as planned. In fiscal 2025, we sold JPY745.6bn. For fiscal 2026, based on share prices as of March 31, 2026, we plan to sell approximately JPY430.0bn.

As announced in May 2024, our policy for business-related equities, excluding unlisted shares and investments through capital and business alliances, etc., is to halve the balance by the end of fiscal 2026 and reduce it to zero by the end of fiscal 2029. There is no change to this policy. We also do not plan to change the plan in response to short-term stock market movements.

Question 4

Purpose of transitioning to a company with an Audit & Supervisory Committee

Answer

The purpose of transitioning to a company with an Audit & Supervisory Committee is to achieve a high-level balance between growth strategy and governance. We will delegate substantial authority from the Board of Directors to executive management, so that the Board can further deepen discussions on medium- to long-term value creation strategies. At the same time, by having Audit & Supervisory Committee Members serve as members of the Board of Directors, we aim for the Board to fulfill its governance function in an integrated manner.

Question 5

Strategic partnership with the Berkshire Hathaway Group in M&A and other areas

Answer

The Berkshire Hathaway Group and the Company share common values, including a focus on corporate culture, a long-term view, and high capital discipline. By combining Berkshire Hathaway Group's outstanding capital strength with our M&A execution capabilities, we believe that our M&A options and opportunities will significantly broaden, and that we will gain more diverse, high-quality growth opportunities.

Question 6

Basic approach to AI governance, how the Audit & Supervisory Committee will monitor going forward, and differences from audits by Audit & Supervisory Board Members

Answer

Under the Company's basic policy on AI governance, each Group company operates autonomously according to its country, region, and business characteristics. In addition, the Company has appointed a dedicated officer in charge of AI, and provides Group-wide management and support from a governance perspective.

Audit & Supervisory Committee Members, as Directors, have voting rights at Board of Directors meetings and are responsible for audits and other related matters. The Audit & Supervisory Committee also differs from the previous audits by Audit & Supervisory Board Members in that it conducts organizational audits by using the internal audit division. New risks such as AI will be included in the scope of audits, and the Board of Directors will continue to discuss them.

Because AI technology is advancing rapidly, we recognize AI as an important management issue for both value creation and operational efficiency. As a holding company, we will support Group companies and strengthen the Group's value creation capabilities.

Question 7

Measures to address a decline in auto insurance revenue if traffic accidents decrease significantly in the future due to the spread of autonomous driving technology

Answer

We expect that it will still take considerable time for fully autonomous driving to become widespread. Vehicle replacement will also take considerable time. Therefore, we expect autonomous vehicles and conventional vehicles to coexist for the time being.

Although the number of accidents may decrease, vehicles equipped with autonomous driving functions are expensive, and the claim amount per accident is also expected to rise. Therefore, we do not believe that auto insurance premium income will decline significantly in the near term.

In light of these changes, we aim to expand earnings by developing new products other than auto insurance and by strengthening the solutions business before and after accidents.

Question 8

Recognition of, and measures to address, cyberattack risks that are increasing due to the rapid advancement of AI

Answer

Cyberattacks through the misuse of advanced AI are a serious threat, and we recognize them as an issue for management as a whole. We will develop a Group-wide framework for cybersecurity response, and will work to strengthen it by using public-private collaboration and knowledge from overseas locations.

Question 9

Proportion of hull insurance in the insurance business, the impact of the Middle East situation on our underwriting and earnings, and our approach to geopolitical risks going forward

Answer

The proportion of hull insurance in the insurance business is limited. Although we underwrite war risks in some areas of marine insurance, we use reinsurance to prepare for large losses, and we appropriately manage risk exposure in each region, including the Middle East, within the range we can underwrite. We have secured the necessary reinsurance for hull insurance and cargo insurance. At present, there are no issues with continuing underwriting, and we do not expect any significant impact on financial results at this time.