Copyright (c) 2024 Tokio Marine Holdings, Inc.
Tokio Marine Group Business Strategy
Mid-Term Plan 2026 ~Inspiring confidence. Accelerating progress.~
May 24, 2024
Copyright (c) 2024 Tokio Marine Holdings, Inc.
2
Table of Contents
I. Group Business Strategy (1) Profit Growth .................... P. 4
II. Japan P&C Business Strategy ......................................... P. 7
III. International Business Strategy .................................... P. 17
IV. Solutions Business Strategy ........................................... P. 26
V. Group Business Strategy (2) Capital Policy, etc. ............. P. 28
VI. Reference ......................................................................... P. 43
PHLY
DFG
TMHCC
TMK
TMSR
◆Abbreviations used in this material
TMHD
TMNF
NF
TMNL
◆ “Normalized basis” in the material generally refers to the where natural catastrophes are adjusted to average level
(other adjustments will be stated in the text)
: Tokio Marine Holdings
: Tokio Marine & Nichido Fire Insurance
: Nisshin Fire & Marine Insurance
: Tokio Marine & Nichido Life Insurance
: Philadelphia
: Delphi
: Tokio Marine HCC
: Tokio Marine Kiln
: Tokio Marine Seguradora
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Key messages
Top-tier
EPS and DPS
Growth
Deliver top-tier EPS growth at +8% or more (3Y CAGR) for the new MTP (+16% or more including
capital gains from sale of business-related equities). The driver is attributable to top-tier U/W and
Asset management in each region.
Deliver stable profit growth with our diversified U/W portfolio and our superior investment
returns generated from long-term and predictable liabilities
Deliver top-tier DPS growth in line with EPS growth. Projected DPS is 159 yen (+29% YoY) for
FY2024. Deliver sustainable DPS growth driven by the increasing dividend sources
Adjusted ROE in FY2026 is projected at 14% or higher (20% or higher including capital gains from
sale of business-related equities); increasing ROE to be in line with global peers.
Key measures remain “top-tier EPS growth” and “disciplined capital policy (capital cycle
management)”
Business-related equities outstanding will be “zero*” in six years (JPY3.5tn in market value and
JPY0.4tn in book value as of Mar. 31, 2024) with a three-year reduction of 50%
Current ESR is strong at 140%. Current plan for FY2024 share buyback is JPY200.0bn throughout
the year (as the first step, JPY100.0bn share buyback has been approved)
*: Excluding non-listed stocks (c. JPY22.5bn in market / book value as of Mar. 2024) and investments related to capital and business alliance
Raise ROE
to the level of
Global Peers
Deliver high-quality
management
where growth and
governance coexist
at a high level
Our “ability to be responsive”, which helped overcome numerous challenges in the past, is an
element of our management quality, which is based on our unique strengths of “global risk
diversification “and “globally integrated group management”
Currently, we are steadily implementing initiatives to transform TMNF into a truly trusted
customer-oriented company (“Re-New”) and improve the management quality of each group
company and the entire Tokio Marine Group, while strengthening the Group-level governance
Steadily develop the Solution business, a major strategy for the new MTP, mainly in Japan. Utilize
the new companies established in the “pre- and post-incident” area to develop into a new pillar
of profit growth
3
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
I. Group Business
Strategy
EPS Growth Target
Deliver top-tier EPS growth at +8% or more
*1
EPS growth, when including the impact of the accelerated sale of business-related equities, is projected at
+16% or more
*1
+1-2%
Adjusted EPS
Growth
Adjusted Net Income
Growth
Share Buyback
*4
CAGR
*2
+8％ or more
Incl. capital gains from sale of
business-related equities
*3
:
+16% or more
CAGR
*2
+7％ or more
Incl. capital gains from sale of
business-related equities
*3
:
+15% or more
*1: KPIs are based on current definitions. Refer to P.38 for review of KPIs after introducing IFRS
*2: FY2023 result, starting point for the MTP, is adjusted (normalized Nat Cats to an average annual level and excluding capital gains
from the sale of business-related equities, capital gains / losses in North America, etc.)
*3: Capital gains from the sale of business-related equities for part of sale exceeded the original plan is excluded from FY2023
*4: Share buyback facilitates EPS growth
4
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
I. Group Business
Strategy
(Ref.) Top-Tier Stable EPS Growth
EPS: Profit in the numerator is adjusted net income for Tokio Marine and KPI for peers
Volatility: Coefficient of variation
Peers: Allianz, AXA, Chubb, Zurich
(Source) Each company data, Bloomberg
3.2
2.3
2.4
1.4
1.7
Tokio Marine Peer 1 Peer 2 Peer 3 Peer 4
EPS Growth
(2013-2023 CAGR)
EPS Growth Volatility
(2013-2023)
+12.8%
+5.3%
+6.3%
+9.2%
+4.8%
Tokio Marine Peer 1 Peer 2 Peer 3 Peer 4
High
Low
We have achieved the top-tier EPS growth while managing volatility
5
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
I. Group Business
Strategy
6
Source of Well-Balanced Profit Growth
Continue delivering top-tier profit growth under the new mid-term business plan (MTP) with a growth rate
of 7% or more through organic growth (3-year CAGR; 15% or more incl. capital gains on business-related
equities)
*1
The growth is a result of our business portfolio with a highly effective risk diversification realized by our
industry leading businesses in each region we operate
*1: KPIs are based on current definitions. Refer to P.38 for review of KPIs after introducing IFRS
*2: FY2023 result, starting point for the MTP, is adjusted (normalized Nat Cats to an average annual level and excluding
capital gains from the sale of business-related equities, capital gains / losses in North America, etc.)
*3: Capital gains from the sale of business-related equities for part of sale exceeded the original plan is excluded from
FY2023
*4: Drop of the negative impact of FX (increase in provision for foreign currency denominated loss reserves and losses on
FX derivatives at Japan P&C due to depreciation of the yen in FY2023) in FY2023 (c. +JPY46.0bn) and business unit
profits of Japan Life and other entities
Adjusted
Net Income
*1,2
CAGR+7％ or more
Japan P&C
+1pt
International
+4pt
Others
*4
+2pt
+5％ or more
+5％ or more
（Excl. prior year loss reserves:
+7％ or more)
Approx. +60％
(Ref.)
Business-related
equities
*3
New MTP
Contribution to the Group CAGR
New MTP
CAGR by business
*1,2
incl. business-related
equities
*3
+15% or more
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
Vision/Business model TMNF Aspires to Achieve Through “Re-New”
The vision is to 1) accurately analyze customers’ risks, 2) not only hedge these risks but also avoid and reduce
damage itself, and 3) provide insurance with affordable price through the reduction of loss costs and thereby
increasing the number of customers. TMNF will offer insurance and solutions through diverse, high-quality
and specialized distribution channels
This is unprecedented in the industry and will allow TMNF to help build a safe and secure society. As a result,
TMNF continues improving its corporate value
Commission system reflecting
value provided (low E/R)
7
Diverse distribution
channels
Agents with high quality and
expertise
Direct model
Embedded Insurance
Customers
TMNF
Prevent accidents and
reduce damage using
TMNF’s solutions
Lower L/R
following reduction in
accidents and damage
Able to interact with TMNF at
convenient touchpoints
Accurate risk analysis
Appropriate coverage
Insurance Solutions
Accurate risk analysis
Pre-/Post-incident solutions
Improve competitiveness of TMNF’s insurance / services
Lower E/R
following an
increase in top-line
Vision/Business model TMNF aspires to achieve
Able to purchase TMNF’s
insurance sustainably at
competitive and affordable prices
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
8
“Re-New” (1) Build a competitive environment based on the value of insurance
Change the reason why customers select us Key success factors under the new business model
Providing
sophisticated program
(Appropriate coverage at low cost)
Ability to provide
solutions
(Mitigation of the risk itself)
Ability to develop new products and provide
coverages globally leveraging close cooperation
as the Group (E.g.: Global programs, Specialty U/W)
Disciplined U/W based on the data/insights
accumulated through extensive track record
Ability to obtain reinsurance under the Group
reinsurance strategy (mainly based in London)
Ability to offer loss prevention / control service
based on sophisticated data analysis
Ability to develop / offer solutions in cooperation
with external partners such as CORE
P76
U/W capabilities
(Set rates corresponding to risks)
Select insurance
company with more
focus on the “intrinsic
value of insurance”
Before
After Reform
Intrinsic value of insurance
・ Business-related equities
・ Record of cooperation in
customer’s business, etc.
Zero business-related
equities
*
Eliminate excessive
cooperation in
customer’s business
*: Excluding non-listed equities and investments through capital / business alliances
P50
Toward an appropriate and efficient
competitive environment
Ability to offer intrinsic value
Group’s unique strengths
Offer intrinsic value of insurance by leveraging our unique “strengths” to further enhance our partnerships with
customers, thereby increasing the number of customers
Ability to offer the intrinsic value of insurance
= the Group’s strength and the area we excel
Ending deep-rooted practices of Japanese P&C industry will lead to an efficient and appropriate competitive
environment. In this environment, an ability to offer the intrinsic value of insurance will become the key
This is the area where we excel and we will increase the number of customers by leveraging our unique
strengths
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
9
“Re-New” (2) Focus on bottom-line growth to sustainably offer value
We sustainably offer appropriate coverages at appropriate rates corresponding to customers’ risks and needs.
To continue fulfilling this duty as an insurance company, we will refocus our priority on bottom-line growth
and exercise more disciplined underwriting
Build an internal structure to continue offering
correct intrinsic value of insurance
Review award system
Overhaul the current system that places a large
weight on NPW targets to value customer-
oriented business operation
(Ref.) Results of initiatives for unprofitable contracts
*1
in FY2023
(incl. non-renewal)
Profit contribution
c +JPY4.0bn
*2
More disciplined U/W
Excessive focus on M/S
(At times prioritizing contract
retention / expansion)
Focus on
bottom-line growth
(More disciplined U/W)
Some contracts continue
providing capacity at low
rates (unprofitable)
Secure appropriate rates /
decline renewal for low-rate
(unprofitable) contracts
Profitability
deterioration
Profitability
improvement
Before
After Reform
*1: Specific contracts that TMNF considers to be needing improvement in underwriting terms and rates.
*2: After tax / estimation.
Corporate fire/
specialty
contracts
Target consideration
system
KPI will exclude the decline in revenue resulting
from profit improvement efforts, elimination of
business-related equities and excessive
cooperation in customer’s business, etc.
Revise performance
evaluation system
Review goal-setting and performance
evaluation that could place a focus on top-line
<Systems, etc. to end excessive focus on top-line>
Ensure more disciplined underwriting to sustainably offer high-quality insurance and solutions
to our customers
(U/W profit for all fire / specialty
insurance: c JPY68.0bn
*2
）
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
10
“Re-New” (3) Expand trusted and specialized distribution channels
Eliminate two-tier structure
*
with agents
Secure / improve agents’ quality and expertise
Create and expand new direct contact points
Initiative
Have dialogues and take quality assurance measures for agents that are
truly struggling to improve quality, which include limiting the services
offered by them and forming partnerships with other agents
Build a new “direct model”
Increase embedded insurance
Roll out and expand a diverse range of fully digitalized (embedded)
insurance products utilizing platforms and services of partner
companies
P79
Build agent commission system that better
reflects the value agents provide
Build a commission system (that reflects the value agents provide) in
accordance with their quality and level of independence (FY2026 system
: measurement period from April 2025)
Initiative
Initiative
Initiative
Initiative
Deliver the intrinsic value of insurance to customers tailored to their diverse needs by achieving the above,
and as a result, increase the number of customers
*: Excessive support for agents with poor quality
Organize structures / tools to provide agent with highly specialized
support in a more productive manner to accelerate agents’ quality /
expertise improvement (consolidate sales support for agent by area; handle
inquiries through an AI contact center, etc.)
Upgrade support for agent
Build a direct platform that completes the entire contract procedures
from making applications to insurance premium estimate calculation
Offer more tailored services through agents, such as free
consultations, upon request by customers
Expand and diversify distribution channels with the quality and expertise, selected based customers’ needs
and upgrade our support for agents to accelerate this, thereby increasing the number of customers
Build an agent commission system that better reflects the degree of independence of agents and their value
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
11
(Ref.) Progress of “Re-New”
Steadily implementing specific initiatives under the business improvement plan submitted at the end of
February based on the analysis of root causes
Thoroughly implement “Re-New” (incl. preventing recurrence of inappropriate acts) and take the lead in
promoting business improvement efforts to help transform the entire industry
Progress Status (as of May 2024) Future Policy (Time frame)Areas / Items
Key Initiative (1): Build a competitive environment based on the value of insurance (P.8)
Sale of business-related
equities
Implementing 50% reduction within the three-year period of the new MTP
as a milestone
*1
Eliminate excessive
cooperation in customer’s
business
Review operational rules for cooperation in customer’s business
(Including a revision of contracts requiring cooperation in their business as
a condition for insurer selection; starting in April 2024)
Developing new secondment requirements
Organize structures to focus
on bottom-line
Introduce new sales target scheme (abolish target allocation / introduce
target consideration system, etc.)
Review the award system (starting in April 2024)
Zero holding
*1
(end of FY2029)
Embed new core rules (continue from FY2024)
Investigate all cases based on new requirements; send
secondments based on the investigation results (from
June 2024)
Expand / embed target consideration system (continue
from FY2024)
Key Initiative (3): Expand trusted and highly specialized distribution channels (P.10)
Upgrade agent support
system
Launch AGS
*2
in multiple sales departments to consolidate contract process
operations and to start specialized agent support
Review Agency Commissions
System
Revision to focus on quality and value provision items (Gradually implement
from FY2024 system : measurement period from April 2023)
Build a direct model
Complete a trial for online automated application / agent consultation
booking system
Promote operation consolidation at all departments, in
principle (by end of FY2024); expand AGS
*2
business
areas to sales promotion (from FY2025)
Expand quality items and significantly increase their
evaluation weighting (FY2026 system measurement
period: from April 2025)
Full deployment of the system (from Aug. 2024);
develop / trial a platform prototype (by FY2025)
*1: Excluding non-listed equities and investments through capital / business alliances. *2: Agent Support Team: a dedicated centralized organization for agent support
Key Initiative (2): Focus on bottom-line growth to continue offering value (P.9)
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
Nat Cats budget
increase
Approx. -12.0
12
Profit Target for Japan P&C Business
Driver of business unit profit (CAGR: +5%) is the underwriting profit growth (CAGR: +10%)
Realize growth trajectory with confidence by achieving product / rate revision for auto / fire and “Re-New”
*1: After tax, estimation
*2: Normalized Nat Cats to an average annual level and excluded the impact of FX. JPY83.0bn before tax (wide-area Nat Cats at JPY73.0bn +
small Nat Cats at JPY10.0bn) is deemed an average annual level here. For the new MTP, the Nat Cats budget is increased and JPY100.0bn
(before tax) is used as an annual average level.
TMNF Business Unit
Profit
Of which, Underwriting
Profit
*1
(billions of JPY)
（Normalized
*2
）
99.8
（P.13）
（P.14）
（P.15）
Auto
Approx. +20.0
Fire
Approx. +20.0
Specialty, etc.
Approx. +7.0
155.9
*3: Net premiums written (private insurance)
*4: Private insurance E/I basis, estimation *1-4 applies to Japan P&C part (P13-16)
Top-line
*3
C/R
*4
2,219.4
95.5% Approx. 92%
CAGR approx. +2%
Breakdown
CAGR +10％ or more
CAGR +5％ or more
Investment, etc.
2023
2026
（P.90）
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
Loss cost status and outlook
95
100
105
110
115
120
2019 2020 2021 2022 2023 2024
80
85
90
95
100
105
2019 2020 2021 2022 2023 2024
2023 2026
(1) Auto Insurance Profitability Improvement
(billions of JPY)
■Jan. 2025
revision (plan)
■Jan. 2024
revision
35.0
Inflations, Nat
Cats budget
increase, etc.
Top-line
C/R
Approx. +10.0
1,135.5
95.7%
Stably below
95%
Impact
of rate
revision
CAGR approx.+2％
Impact of a post-COVID driving surge has been
declining after peaking in mid-FY2023 and is expected to
gradually taper off
The ongoing upward trend mainly due to sophistication
of devices is accelerated by the impact of inflation.
A similar trend is expected to continue in the future
*1: Normalized the impact of Nat Cats to an average annual level and excluded the impact of smaller accident frequency due to COVID-19
*2: Based on FY2019 as 100
Approx. +2% (YoY)
*Approx. +3pt vs Nov. 2023 forecast
Accident
frequency
＊１,２
Unit price
＊２
(vehicle / property
liability)
Approx. -4%
(YoY)
Underwriting
profit
(after tax)
Approx. +3% (YoY)
*Approx. -1% vs Nov. 2023 forecast
Approx. ＋4%
(YoY)
Approx. +20.0 excl. Nat
Cats budget increase
Overcome the difficult environment (resulting from inflation, a post-COVID driving surge, and escalating Nat
Cats), with initiatives to raise operation efficiency as well as further rate / product revisions scheduled
in Jan. 2025
In FY2024, the C/R is expected to deteriorate due to large Nat Cats, including the April hails in Hyogo. Aim to
stably keep C/R under 95% by closely monitoring the loss cost and proactively revising rates when needed
13
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
2023 2026
Other than above
Underwriting profit
(2) Fire Insurance Profitability Improvement
Achieve profitability commensurate to capital cost (RoR > 7%) by FY2026 through more disciplined
underwriting exercised as part of “Re-New,” in addition to the constant rate / product revisions.
Next rate / product revision is scheduled for Oct. 2024
92.2%
417.6
Disciplined underwriting for
unprofitable policies
Improving underwriting terms
and conditions
Accelerate bottom-line focused
initiatives
Approx. +15.0
0
Contribution from continuous
rates/ products revisions
Oct. 2024 rate / product revision
(billions of JPY)
CAGR approx. +4％
28.0
Top-line
C/R
+α
■Oct. 2024 revision ■2022 revision
■2021 revision ■2020 revision
■2019 revision
Rate / product revision impact
Rate / product revision impact
* Given the huge risk volume of large-scale Nat Cats in fire
insurance, we need C/R to be below the range of 80-89%
at normal times to ensure an RoR exceeding 7%
Aim below 89%
*
(80-89%range)
Corresponds to RoR>7%
Approx. 43.0
Claim cost increase
Reinsurance cost increase
Nat Cats budget increase, etc.
Underwriting
profit
(after tax)
Approx. +20.0 excl. Nat
Cats budget increase
Additional
improvement to
underwriting profit
14
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
Potential market in 5 priority areas
*”Resilience” is added to the 4 priority areas of previous MTP
15
(3) Growth of Specialty Insurance
Capture promising markets focusing on five priority areas to achieve approx. JPY7.0bn profit increase
(approx. +JPY100.0bn premium increase). During the previous MTP, we achieved a nearly +JPY100.0bn
premium increase contributing to steady profit growth
596.9
90.7%
(billions of JPY)
0
100
200
300
400
500
600
2023 2026
40.0
Approx. +7.0
Providing
sophisticated
program
/ U/W
capabilities
Ability to provide
solutions
Arrange cutting-edge insurance programs in collaboration with
international Group companies (e.g.: cyber, D&O, offshore wind)
Expand dedicated products / coverages for SMEs, make
consulting-type proposals
Expand insurance areas utilizing knowhow / data of domestic
Group companies incl. TdR (e.g.: presymptomatic / prevention
areas in healthcare)
Offer 24x7 emergency hotline service (cyber)
Offer loss prevention service using TdR’s data analysis abilities
Capture market leveraging the Group’s “strengths”
*1: Japanese market size (Source) TMHD estimate
*2: Global offshore wind insurance market as of 2030 (Source) TMHD estimate
*3: Market for group medical insurance / cancer insurance / GLTD (Source) Japan Institute of Life
Insurance, Rosei Jihou
Priority Area Market Size Penetration Rate
SME JPY1.3tn
*1
20-30%
*1
GX (offshore) JPY200.0bn
*2
ー
Healthcare JPY1.7tn
*3
75%
*3
Cyber JPY180.0bn
*4
Less than 10%
*5
Resilience JPY300.0bn
*6
ー
Infrastructure / facility preservation: Propose insurance together with
solutions for preservation plan optimization to address clients' challenges in
managing their facilities
Supply chain: Provide services for visualization of corporate risks and
solutions including ESG responses, integrated with cargo insurance, etc.
Top-line
C/R
Underwriting
profit
(after tax)
*4: Japanese market size (Source) Research company
*5: (Source) Cyber Risk Awareness and Countermeasure Survey 2020, General Insurance
Association of Japan
*6: Repair costs of industrial facilities / housing in retail, manufacturing and other industries
(Source) TMHD estimate
Approx. 90%
Approx. +100.0
Copyright (c) 2024 Tokio Marine Holdings, Inc.
New MTP Profit TargetRe-New
II. Japan P&C
Business Strategy
16
(4) E/R Improvement
Track Record and Future Direction
TMNF E/R
*1
32.1%
31.8%
28%
30%
32%
34%
36%
2012 2022
TMNF Domestic P&C1 Domestic P&C2
31% mark
2023 2026
Outlook
Medium- to
long-term
*1: Private insurance *2: vs 2019; equivalent to the saving of JPY30 to JPY50bn/ year; calculated virtually *3: vs 2023: after tax, estimation. vs 2019 (at the start of the project): approx. -JPY13.0bn
Aim below
30%
Current E/R maintains an efficiency advantage against other Japanese P&C companies
Aim for E/R at the 31% mark during the new MTP period and below 30% in the mid- to long-term without
shrinking the size of business (the main driver is top-line growth and reviewing the agent commissions
system)
Measures for 2023→2026
Raise business
efficiency
through top-
line growth
Further increase activity
volume in growth areas mainly
through use of generative AI, in
addition to the ongoing
administration volume
reduction (-25% by the end of
FY2026
*2
)
Agent
commission
system with
clear priorities
Big shift to an agent
commission system to better
reflect the values they offer
such as the quality of operations
and level of independence
Rigorously
reduce
business and
personnel
expenses
Implement cost containment
without exceptions even in an
environment of IT cost and wage
increases
Make workload reduction
project real
(Approx. -JPY9.0bn
*３
by end of FY2026)
Accelerate a shift to
agent commission
system that better
reflects value provision
”Re-New”
Additional improvement
impact
+α
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
17
Profit Target for International Business
International business profit growth target is CAGR of +7% or more (excl. past reserves takedown)
Realize growth driven by strong underwriting while factoring in a certain level of softening
448.9
*2
CAGR +7% or more
(excl. past reserves takedown)
*2
International Business Unit Profit
*1
Top-line
*1
3,079.5
CAGR approx. +5％
Includes a rebound in life insurance
which posted a loss in 2023
C/R
*3
(2023
→2026）
91.8%
→91.5%
92% range
91.8%
→94.1%
92.3%
Profit will shrink compared to 2023 when
Brazil performed very strongly. We plan to
secure high levels of revenue by maintaining
C/R at low to mid-90%
Underwriting
profit (CAGR)
Approx. +8% Approx. -1%
Approx. +7%
(billions of JPY)
International
Business Unit Profit
(excl. past reserves takedown)
+7% or more
Underwriting
*North American underwriting
Approx. +7%
*Approx. +10%
Investment
*Investment income
Approx. +8%
*Approx. +8%
Developed
market
Emerging
market
*1: FX as of Mar. 31, 2024. Business Unit Profit for 2023 is on a normalized basis excluding the impact of past reserves takedown
*2: 2023 result is JPY478.2bn (FX as of Mar. 31, 2024) including past reserves takedown. CAGR of the 2026 plan based on this result is +5% or more (2026 plan does not factor in change in past reserves)
*3: Figures include estimates.
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
18
Top-class Underwriting Growth (Comparison with North American Peers)
North American underwriting profit is expected to grow at CAGR +10%, representing top tier growth
vs. peers
2023 2024 2025 2026
北⽶Peers 当社北⽶事業
CAGR approx. +8%
CAGR approx. +10%
Underwriting profit
No
Peer’s data
■
North American peers
*1
TMHD North American business
*2
*1: Peers: AIG, Chubb, Travelers, W. R. Berkley (Source: D&P) *Estimates by normalizing the impact of past reserves and Nat Cats to an average year level
*2: Normalized basis (excl. the impact of past reserves takedown for 2023)
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
0
500
1,000
1,500
80%
85%
90%
95%
100%
105%
2017 2018 2019 2020 2021 2022 2023
2017 2018 2019 2020 2021 2022 2023
TMHCC
PHLY
マーケット
19
Rate Increases
Rate Increase
(% represent YoY rate increase)
+5％
+9％
+16％
+14％
+6％
+3％
+7％
+11％
+11％
+9％
+2％
+4％
+9％
+8％
+6％
(Indexation based on 2017)
+6％
+9％
+5％
*2
*3
TMHCC
*4
U.S. P&C market average
*5
PHLY
*4
C/R
*1: See P.20 for details
*2: Excl. A&H・Surety・Credit *3: (Source)Willis Towers Watson
*4: Local management accounting basis. Temporary increase in PHLY due to increase in past reserve provision
*5: （Source）S&P Capital IQ
*4
Achieve growth while maintaining C/R at low levels, leveraging the competitive advantage built through
strategic focus on niche markets and specialty insurance
*1
and carrying out rate increases exceeding forward-
looking loss cost projections
Market hardening is expected to continue throughout 2024, and achieve steady profit growth through risk
selection and a strong bottom-line focus to contain the impact of the market cycle
Due to Covid-19
Due to past reserve provision
■ [Ref.] North America U/W profit (USD mn)
Market
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
RLI
American
Financial
W.R.
Berkley
Travelers
Cincinnati
Financial
Markel
Old
Republic
CNA
Hartford
Hanover
HCC
Factors for Growth Exceeding the Market (1) TMHCC & PHLY
Our specialty focus and nimble management structure allow us to quickly implement strategic decisions and
maintain stable, profitable growth that outperforms the market
High customer loyalty and risk sensitivity
*1: (Source) Created by each company report and Dowling & Partners Analysis (based on data through Dec. 31, 2023)
*2: Takedowns have been made since 2020 *3: Over 90% of umbrella insurance that tend to have high limit policies have limits ≤ $5M
*4: Compared to 2020 Q2 when PHLY started its claim settlement initiative *5: (Source) NICE Satmetrix 2023, Consumer Net Promoter Benchmark Study
Built strong relationship with leading agents / brokers by strategically
focusing on niche customer segments, while achieving strong
customer loyalty by providing high quality customer services
Proactively strengthened reserves in 2019 anticipating the impact of
social inflation
*2
, and maintained high profitability with rigorous risk
control including with significant reduction of high limit policies
*3
and
reduction of litigation claims (-60%
*4
)
(See P.71 for details)
Smallest
Largest
C/R volatility
Risk diversification and strong bottom-line focus
Underwrite various lines of specialty insurance, rigorously refined the
highly specialized U/W and claims service expertise
Built profitable and diversified portfolio through bolt-on M&As,
acquisition of underwriting teams, and launch of new business lines
Also, through maintaining low C/R and focusing on bottom-line
including efficient operations and strong enterprise risk management
control, lead to constantly achieving strong performance
Net Promoter Score*
5
32
67
39
PHLY
＜Market composition (FY2023)＞
<Strong customer loyalty>
＜Stable low C/R
*1
＞
Lowest
Highest
CEO/Susan Rivera
CEO/John Glomb
Human services
33%
Real estate 16%
Public services
9%
Non-profit organization
D&O E&O 15%
Sports&
Recreation 9%
Other 11%
Auto 6%
10Y C/R average
Home Insurance
Industry
Average
Auto
Industry
Average
20
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
85%
90%
95%
100%
105%
110%
2019 2020 2021 2022 2023
15.9%
7.6%
Factors for Growth Exceeding the Market (2) RSL
*1
& Pure
*1: Reliance Standard Life (DFG group life insurance company)
*2: DFG group third party administrator providing leave management services. Brand was integrated with RSL in 2023 as “reliancematrix,” accelerating collaboration.
*3: Long Term Disability *4: Hartford, MetLife, Unum, Voya, Lincoln, Prudential, Principal
*5: Group life insurance L/R deteriorated in 2021 due to the impact of COVID-19
*6: (Source) D&P *7: Pure’s top-line shows the premiums under management company Market: (Source) S&P Capital IQ
Ability to implement rigorous profit improvement
RSL
*1
rigorously implemented profit improvement initiatives (including
non-renewal of high-risk policies, disciplined U/W, business efficiency
improvement using AI) under the leadership of CEO Chris Fazzini
appointed in 2017
RSL deepened collaboration with Matrix
*2
to take advantage of market
leading “absence management” product offering to generate sales of
insurance products, especially mainstay LTD
*3
product
Consequently, succeeded in substantially improving and maintaining
profitability, supporting DFG’s strong performance
＜C/R＞
*5
CEO/Chris Fazzini
Capture the strong growth potential of HNW market
Earned strong customer loyalty and high M/S by focusing on U.S. High
Net Worth (HNW) market, providing high-quality services that match
the customers’ needs (including specifically designed products for HNW
individuals, a detailed risk management consultation, and loss prevention
services)
Maintained significant top-line growth by leveraging the strong brand
loyalty, while paying attention to U/W discipline including nat cat risks.
With its operating effectiveness, PURE increased profits along with the
top-line growth
＜HNW M/S
*6
＞
＜Top-line
*7
＞
2019-2023 CAGR
Pure
Market
CEO/Martin Leitch
Peers average
*4
RSL
10.4%
5.1%
RSL
Peers
average
*4
2019-2023 CAGR
＜Top-line＞
Company Rank M/S
Chubb １ 15%
Pure ２ 5%
AIG ３ 3%
Cincinnati ４ 2%
Nationwide ５ 1%
21
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
85%
90%
95%
100%
2019 2020 2021 2022 2023
100
130
160
190
220
2019 2020 2021 2022 2023
80%
85%
90%
95%
100%
105%
2019 2020 2021 2022 2023
Factors for Growth Exceeding the Market (3) TMK & TMSR
Leverage cutting-edge digital capabilities
Brazil market average
*4
TMSR
*1
＜C/R＞
TMSR
*1
CAGR
+20.6%
CAGR
+12.3%
Growth rate of gross premium with 2019 set as 100
Brazil market average
*4
＜Top-line＞
*1: Local accounting basis *2: (Source) Lloyd’s Annual Report *3: Excludes the impact of COVID-19 *4: (Source) SUSEP
In a challenging market dominated by brokers and volatile economy in
Brazil, TMSR, rigorously leverages cutting-edge Digital and IT
capabilities
Under a disciplined U/W policy, TMSR frequently revises rate based on
timely and precise data analysis. Also, by promoting operational
efficiency and product enhancements, TMSR achieves a balance of
competitive pricing and operational excellence, resulting in strong
support from customers and brokers
Executing these initiatives, TMSR achieves significant top-line growth
and profitability improvements that exceed the market
Top Class Profitability in Lloyd’s Market
＜C/R＞
TMK(Syndicate 510）
*1
FY2023: 86%
*3
Lloyd’s market average
*2
CEO/Matthew Shaw
CEO/Jose Ferrara
Fully focused on “profitability” with the clear goal of “constantly
achieving C/R of low 90% range”
Maintaining high profitability through business portfolio optimization
and further diversification.
Working with strategic Broker partners to increase shares of wallet in
preferred classes.
Consider new lines of business including through active involvement in
research and new product development in innovative areas with
Lloyd’s
22
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
(Ref.) External Evaluation of Our North American GCs
Scored the highest favorability rating in the Americas
*
*: A survey for risk managers in large companies with 250 or more employees by FT Commercial Insurance GIST 2024 Survey (Nov. 2023-Feb. 2024)
(Source) P&C Specialist: Big Commercial Insurers with the Highest Favorability Ratings
https://commercial.pandcspecialist.com/c/4491854/587354
23
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
Stable Increase in Investment Income
Stable growth in investment income on the back of an increase in long-term and predictable insurance
cashflows (AUM), yields maintained by investing in asset class with attractive RoR
Source of investment capital is a long-term,
predictable cashflows stream
Increase AUM while controlling risks
Investment
income
(DFG +
managed
*
)
AUM
(DFG +
managed
*
)
Income
Return
(DFG +
managed
*
)
<2023 Results> <New MTP>
<Increase in AUM on the back of growing business>
$3,379mn
3Y CAGR
approx. +8%
$49.8bn
Increase in AUM
on the back of
growing business
6.8%
Maintain stable
yield
(Ref.)
Barclays Aggregate︓3.5%
<Maintain stable yield>
Maintain higher return than the benchmark by continued
focus on assets with attractive RoR
Investment income including
funding cost for annuity
business, etc.: approx. +3%
0%
1%
2%
3%
4%
5%
6%
7%
8%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
DFG+GCs Barclays Aggregate
*: Assets managed by DFG for key GCs (TMNF, TMNL, NF, PHLY, TMAIC, TMHCC)
24
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Investment IncomeUnderwriting Profit
III. International
Business Strategy
25
Features and Track Record of DFG’s Investment
DFG’s strength of specialized investment team and strong collaboration with outside asset managers enable
establishment / execution of flexible investment strategies corresponding to the investment environment,
realizing higher returns than the market (maintained positive returns during past financial crises)
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Market
*2
DFG
Strength of DFG’s ability to manage
highly specialized asset management
Team achieved stable returns through a series of market volatility
and cycles including COVID-19 and collapse of Lehman Brothers
Execute agile asset allocation according to the investment
environment by data gathering and analysis leveraging broad
network
Control credit risk of the entire portfolio within a certain limit within
a certain threshold in collaboration with TMHD
Donald Sherman
DFG CEO
Vincent Kok
DFG CIO
Stephan Kiratsous
DFG CFO & COO
Investment framework with highly reproducible returns
<Investment Return
*1
>
DFG investment performance (investment income + realized gains /
losses) remained positive during the collapse of Lehman Brothers
Strong collaboration with external asset managers
Achieve higher returns than the market
Track Record of DFG Investment Income
In addition to selecting capable managers, hands-on approach,
including development of investment strategies and individual
underwriting, is taken when considered necessary
Able to flexibly rebalance portfolio corresponding to the changes in
the market by utilizing expertise and network of both
internal members and external managers
*1: Calculated as “(Income + capital gains/losses + impairment) / AUM”
*2: Average for US P&C insurance companies (market capital of $20bn or more)
Source: S&P Capital IQ, Factset
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Solutions Business
IV. Solutions
Business Strategy
26
Progress Update
Insurance business will not be the sole driver of our growth. Promote commercialization in multiple fields
to make them grow into pillars of income by 2035
Disaster prevention / mitigation
Oct. 2022: Founded a joint venture company with
Kokumin Kyosai co-op
Mobility
Claim ServiceDecarbonization
Nov. 2023: Launched Tokio Marine Resilience
Realize a comprehensive disaster prevention
and mitigation solution
Support disaster prevention measures by comprehensive disaster
management solutions
*2
Vision
Nov. 2023: Launched Tokio Marine Smart Mobility
Realize mobility solutions for corporations
Mitigating risks and avoidable costs associated with
transportation and logistics
Vision
Feb. 2024: Establishment of Preparatory Company
Realize decarbonization solutions
for domestic SMEs
Promote “know, measure, reduce” to support decarbonization
Vision
Progress
Update
Began PoC to offer decarbonization solutions to Japanese
SMEs that face the challenge of decarbonization
Decarbonization concierge service
Renewable energy supply service
Build a business utilizing intellectual properties
and knowhow in in-claim service
Support more customers in times of needs beyond
the boundaries of mutual aid and insurance
Vision
Progress
Update
Develop and offer mutual aid money payment system by
FY2025 and perform some operations related to damage
investigations of automotive mutual aid
Expect an impact equivalent to up to +JPY6.0bn a year on the
bottom line for the entire Group
*3
Progress
Update
Launched multiple solutions in the disaster prevention and
aftercare areas
Supply chain risk management system
Liquefaction damage reduction service (response to the
Noto Peninsula earthquakes)
Response package that can offer a total of 35 services, etc.
Progress
Update
Developing solutions for industry-level optimization such as joint
deliveries, in addition to company-level efficiency improvement
such as vehicle management
Full-scale sale of fleet management system, MIMAMO DRIVE
Expanding the lineup to include labor management, health
management, etc.
Estimated
target
market
*1
JPY1.5tn
Estimated
target
market
*1
JPY1tn
Estimated
target
market
*1
JPY1tn
See P.76 for details
See P.77 for details
See P.78 for details
*1: Estimated market size from 2030
*2: Providing comprehensive solutions for disaster prevention and mitigation, encompassing all phases of the disaster prevention and
mitigation value chain (assessment, preparedness, evacuation, recovery / reconstruction) and address the causes of damage (perils)
*3: Bottom line impact by collecting
labor and IT related costs
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Solutions Business
IV. Solutions
Business Strategy
World to be Realized in Disaster Resilience Field
Enhancing the value chain in disaster resilience will increase the benefit for the customers and local
community and lead to economic value (profits) for us
Our economic value
increased through social value
Social value created
by our business
Insurance
payment
Post-
incident
area
etc.
Business
area
Services that mitigate /
prevent natural disasters
(LC and LP *)
Rebuild with insurance
payment
(Build Back Better)
Early recovery by
shortening the time for
insurance payment
Early recovery of affected
buildings and facilities to
support quick business
resumption
Prevent recurrence
Disaster resilience field
value chain and our business
Solutions
Solutions
Insurance
Reduce L/R
Reduce business
expenses
Reduce
insurance payout
cost
Reduce disaster
and accident
rate
Lower E/R with increased top-line
Increase
Solutions
revenue
Increase policyholders
(Price competitiveness
supported by quality
policy portfolio)
Improve top-line
Business continuity / early
recovery
Improve customers’ capital
efficiency with insurance risk
hedging
Strengthen at rebuild
Avoiding Human Damage
Prevent property damage
* : LC/LP are abbreviations for Loss Control (accident mitigation) and Loss Prevention (accident prevention)
27
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
Disciplined Capital Management
Capital generated is allocated to risk-taking and business investment that will contribute to improving the
ROE. In the absence of good opportunities, share buybacks are executed. We will continue to implement
disciplined capital management.
The sale of business-related equities realizes unrealized gains originally included in net assets. We will raise
our corporate value through disciplined capital management (”capital circulation cycle”)
P.35 Reduction of
Business-Related Equities
P.36 DPS Growth
P.37 Disciplined Capital Management
(Share Buyback)
P.30 Global Risk Diversification
and Profit Growth
P.31 Disciplined In / Out Strategy
P.32 Track Record of Large-scale M&A
P.33 Track Record of Bolt-on M&A
ESG for sustainable growth
Capital
generation
Capital
adjustment
- Strategic capital release
- Appropriate risk control
- Disciplined strategic
M&A
- Disciplined risk
taking
Business
investment
- Dividend increase
- Flexible capital level
adjustment
Shareholder
return
- Sustained stable profit base
in Japan
- Enhanced on specialty in
advanced countries
- Capture growth potential
in emerging countries
+
Organic
growth
Portfolio review
28
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
Track Record of ROE Improvement and MTP Quantitative Targets
2012 2022
2023
15.0%
15.1%
Peer 1 15%
【2024Target】
●
Peer 2 28%
【2026Target】
●
Peer 4 23%
【2025Target】
●
2025
2026
●
Peer3 19%
【Next few years】
18.1%
（11.0%）
（13.0%）
2024
（projection）
*1: Based on current definition of ROE
*2: Adjusted Nat Cats to an average annual level and excluded the impact of COVID-19 for 2020 and after, and capital gains/losses in North America, etc. and capital gains from sale of business-related equities (for part of sale
exceeding the original projection of each fiscal year) for 2021 and after. Also excluded the impact of war and South African floods for 2022
*3: Peers: Allianz, AXA, Chubb, Zurich. For Peers, disclosed ROE as their KPI is adjusted to the tangible basis to align it with TMHD’s adjusted ROE. (Source) Estimated by TMHD using company data.
Adjusted ROE
*2,3
Excl. sale of business-related
equities in the parentheses
Cost of
capital: 7%
Achieve ROE
equivalent to global peers
Peers’ ROE
Target range
FY2026
*1
20% or higher
（14% or higher）
FY2023 ROE is at the same level
as the previous year, mainly due
to an increase in adjusted NAV
notably from a rise in stock
prices and the JPY depreciation
Our profit increased due to the rebalance of risk portfolio based on ERM, without unnecessary capital increase.
Consequently, FY2023 adjusted ROE reached 15.0%
With the “top-tier EPS growth” and “disciplined capital policy (capital circulation cycle)”, FY2026 ROE target is
20% or higher
*1
(excl. sale of business-related equities : 14% or higher
*1
)
29
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
20%
30%
8%
27%
15%
26%
35%
9%
19%
11%
30
Global Risk Diversification and Profit Growth
We have achieved profit growth by allocating capital to businesses with high ROR and risk diversification
effects
This trend will accelerate by achieving zero* business-related equities
*Excl. non-listed equities and investments for capital / business alliances
Global risk diversification
FY2024
Diversification
effects
43%
■ Japan P&C（underwriting）
■ International
■ Japan P&C（investment）
■ Japan Life
■ Others
Before
JPY4.4tn
FY2014
Diversification
effects
29%
*Risk excl. business-related equities is
JPY5.9tn before diversification and JPY3.1tn after diversification
Before
JPY7.6tn
Risk after diversification
JPY3.1tn
Risk after diversification
JPY4.3tn
*1: Profit is Business Unit Profit of each business (original plan). Figures include estimates
*2: TMNL’s financial accounting profit.
International 56%
(Of which, North America: 36%, Europe 9%,
South & Central America: 1%)
Japan P&C: 36%
(excl. profit related to business-related equities)
International 83%
(Of which, North America: 67%, Europe: 7%,
South & Central America: 5%)
Japan
Life 6％
*2
Japan
Life 8％
FY2024
Original
projection
JPY1tn
FY2014
Original
projection
JPY271.0bn
Japan P&C: 10%
(excl. profit related to business-related equities)
Capital gains 87%
＋
＝
＝
Core business
JPY188.0bn
Business-related
equities
JPY449.0bn
Dividend 13%
Business-
related
equities
JPY83.0bn
＋
Dividend 48%
Capital gains 52%
Will become nominal from FY2030
Core business
JPY551.0bn
Global profit portfolio
*1
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
31
Disciplined In / Out Strategy
Our large-scale M&A track record (ROI) is +21.5%. Successful track record makes Tokio Marine an attractive
acquirer for the next M&A
Valuations are currently high, and we need to continue being patient with large-scale M&As, but we will
seize opportunities for bolt-on M&As and continue to implement the In / Out strategy with discipline
Feb. 2024
Saudi Arabia
Life/Non-life
*1: ROI is calculated by using the sum of business unit profits under FY2024 projection as numerator and the sum of
acquisition amounts as denominator (Different formula from ROE (=RoR / ESR) which reflects risk diversification effect, etc.)
*2: Gulf Guaranty Employee Benefit Services, Inc.
A managing general underwriter that handles group gap medical insurance for small and mid-sized businesses.
*3: Agent handling construction insurance in the Tokio Marine Highland (former WNC) group owned by TMK
Cultural fit
High profitability
Solid business model
Target
(Three
principles
of M&A)
Cost of capital (7%)
+ Risk premium
+ Country interest rate
spread
Hurdle
rate
Strict acquisition criteria
“In” strategy (M&A, new establishment)
“Out” strategy (divestment, run-off)
Mar. 2008
Dec. 2008
May 2012
Oct. 2015
Feb. 2020
Mar. 2019
Aug. 2022
Highland
*3
Dec. 2023
Guam TMPI
ROI
*1
of our large-scale M&As is 21.5％, significantly
exceeding our capital cost (7%)
We have been steadily implementing bolt-on M&As. Most
recently, TMHCC completed acquisition of GGEBS
*2
We are implementing the “Out” strategy also with
discipline by determining the future of the business in a
forward-looking manner
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
32
(Ref.) Track Record of large-scale M&A
Five subsidiaries acquired with large-scale M&A have continually outperformed market growth
ROI is significantly above TMHD capital cost (7%) at 21.5%
5.3%
7.0%
5.9%
6.6%
>
7%
Capital cost
21.5%
Growth after joining the Group
*1
ROI of large M&As
*2
7.3%
5.7%
17.4%
12.8%
DFG
2011-2023 CAGR
Market
9.7%
6.1%
5.4%
3.1%
TMHCC
2014-2023 CAGR
Market
15.9%
7.6%
2019-2023 CAGR
Pure
Market
2007-2023 CAGR
PHLY
Market
2007-2023 CAGR
TMK
Market
＜Top-line＞ ＜Bottom-line*
3
＞ ＜Top-line＞ ＜Bottom-line＞ ＜Top-line＞ ＜Bottom-line＞
＜Top-line＞ ＜Bottom-line＞ ＜Top-line＞
DFG
TMHCC
PHLY
TMK
Market
Market
Market
Market
▲189.8%
*1: TMHD top-line / bottom-lines are local financial accounting basis, Pure’s top-line is the premiums
under management company
Market for TMK: all Lloyd’s companies, Other: North American non-life insurance
(Source) Lloyd’s Annual Report, S&P Capital IQ
*2: ROI is calculated by using the sum of business unit profits under FY2024 initial projection as
numerator and the sum of acquisition amounts as denominator
(Different formula from ROE (=RoR / ESR) which reflects risk diversification effect, etc.)
*3: TMK proactively increased past reserve provision for some business lines
（However, Syndicate 510 C/R was good level at 86%）
6.4%
4.2%
4.1%
1.9%
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
33
(Ref.) Track Record of Bolt-on M&A
Room for bolt-on M&A based on in-depth understanding of mutual business
Leverage the experience and expertise of TMHCC as our strength and steadily execute transactions
*: Construction insurance agency, part of Tokio Marine Highland (former WNC) Group owned by TMK
High success rate
Accumulated know-how
Disciplined M&A
Advantages
of bolt-on
M&A
: In-depth understanding based on a long-term business relationship
: Experience of executing over 60 bolt-on M&As
: Strategic portfolio adjustment taking the future business environment into consideration
In
Out
2015-2017
Pro Ag
(Crop
Insurance)
January 2015
AJF
(P.A.)
June 2015
International
Ag
(Crop Insurance)
April 2017
AｍTrust Ag
(Crop
Insurance)
May 2019
AIG business
acquisition
(Medical stop-loss)
October 2017
Midlands
(Excess W/C)
December 2018
NAS
(Cyber / liability)
April 2019
WNC
(Property /
flood)
January 2018
On Call
International
(Assistance service)
January 2016
Bail USA
(Surety)
Divested in April 2019
Qdos
(Liability)
October 2018
BCC
(Surety /
credit)
April 2019
Colors represent the acquiring companies
TMHCC PHLY DFG TMMA (Australia)TMK
2018-2020
Bail USA
(Surety)
February 2016
A&H
International
(P.A.)
June 2019
GCube
(Renewable energy)
May 2020
2021-
Life Trac
(Medical Service)
Divested in January
2020
WWS business
acquisition
(Insurance for temporary
staffing industry)
December 2020
SSL
(Paid family leave)
April 2021
Will find high
quality
transactions
Highland
*
(Construction insurance)
Divested in August
2022
GGEBS
(Gap medical
insurance)
July 2023
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
34
(Ref.) Rate Cycle and M&A Opportunities
-10%
-5%
0%
5%
10%
15%
Valuations remain high for high-quality M&A transactions, requiring patience
The market is cyclical and attractive M&A opportunities increase when the market softens;
we will remain diligent
*1: U.S. Commercial market (Source) WTW, “Commercial Lines Insurance Pricing Survey”
*2: Global deals announced between 2003 and 2023 in P&C sector with transaction amount of $100MM or more (Source) Dealogic
*3: Dates listed are the announcement dates of the acquisition
Total transaction amount
*2
(right axis)
Rate Cycle
*1
(left axis)
（M$）
0
10,000
20,000
30,000
40,000
50,000
60,000
(Ref.) Overseas business
expansion track record
*3
July 2008
Dec. 2011
June 2015 Oct. 2019
Dec. 2007
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
35
Reduction of Business-Related Equities
Business-related equities outstanding will be “zero
*1
” in six years (JPY3.5tn in market value as of Mar. 31, 2024
and JPY0.4tn in book value) with a three-year reduction of 50%.
We will not merely reclassify them as pure investments (expected sale for FY2024 is JPY600.0bn in market
value as of Mar. 31, 2024 and JPY53.0bn in book value)
Business-related equities ratio compared to IFRS net assets will be approx. 20% by end of FY2026
Timeline and amount of sale of
business-related equities
Ratio to net assets
*2
0%
10%
20%
30%
40%
50%
60%
2023 2026 2029
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
売却額 保有時価 保有簿価
売却時価額
（億円）
0
Increase in
market value
due to higher
share prices
500.0
250.0
保有額
（兆円）
0
2.0
1.0
3.0
*1: Excluding non-listed stocks (market value as of Mar. 31, 2024, c. JPY22.5bn in book value) and
investments related to capital and business alliance, etc.
*2: Based on share prices as of March 31, 2024. Net assets at the end of FY2024 onwards are estimates.
Amount
Sold
Portfolio
Market Value
Portfolio
Book Value
Transition to IFRS at
end of FY2025
(net assets will increase)
50% in
3 years
Market value
(trillions of JPY)
Sold amount
(billions of JPY)
End of FY2023
Market value: c. JPY3.5tn
End of FY2029
“Zero
*1
” holding
Re-post from Q4 Conference
Call on May 20, 2024
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
Top-tier DPS Growth
DPS growth trajectory with confidence in line with EPS growth can be maintained for the next three years
DPS for FY2024 is projected at JPY159 (+29％ YoY). We will continue to increase DPS (we are committed not
to cut dividends, in principle) (Review planned in FY2026 for various indicators and definitions considering
the impact of introduction of IFRS / ICS)
400.0
485.0
625.0
(50)
50
150
250
350
450
-1,000
1,000
3,000
5,000
7,000
9,000
11,000
2022 2023 Result 2024 Projections 2025 2026
FY2024 Projections (+29% YoY)
13th consecutive dividends increase
expected
5Y average
adjusted net
income
(billions of JPY)
Gray indicates
single year profit
DPS
*
(JPY)
309.9
399.6
578.3
0
50
100
150
200
250
300
0
1000
2000
3000
4000
5000
6000
7000
8000
2012 2021
123
100
85
17
444.0
711.6
159
1,000.0
+36
(+29%)
+23
(+23%)
Review planned in
FY2026 for various
indicators/definitions
vs original
projections:
+2 yen
2011
*: DPS is calculated by 5Y average adjusted net income X payout ratio / number of shares
Re-post from Q4 Conference
Call on May 20, 2024
36
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
Strong Capital Stock and Disciplined Capital Management (Share Buyback)
Strong ESR
*1
as of March 31, 2024 at 140%. Current plan for FY2024 share buyback is JPY200.0bn throughout
the year, comprehensively considering the current M&A pipeline, etc. (approx. +2% effect on EPS Growth. As
the first step, JPY100.0bn share buyback has been approved )
ESR
*1
Target Range
Sep. 2023 Mar. 2024
31,857 yen
Nikkei Stock
Average
40,369 yen
1.62%
30Y JPY interest
rate
1.73%
(Reference)
Before restricted capital
deduction
1.21%
Credit Spread
0.90%
180% 181%
*2
Risk
3.7
trillion
yen
Net asset
value
4.9
trillion
yen
Risk
4.3
trillion
yen
Net asset
value
6.0
trillion
yen
140%
*2
*1: Economic Solvency Ratio (under the current definition, risk is calculated using a model based on 99.95%VaR
(AA credit rating equivalent)). Net asset value of overseas subsidiaries shows the balance as of three months
earlier (Jun. 30, 2023, and Dec. 31, 2023) See P.80 for sensitivity.
*2: ESR after the JPY200bn share buyback is 135% (176% before restricted capital deduction)
Implement:
Further business investment, and/or
Additional risk-taking and/or
Shareholder returns
Flexibly consider:
Further business investment, and/or
Additional risk-taking, and/or
Shareholder returns
Aim to recover capital level through
accumulation of profits
Control risk level by reducing risk-taking
activities
De-risking
Consideration of capital increase
Review of shareholder return policy
140%
100%
ESR
*1
Target
Range
133%
Re-post from
Q4 Conference Call
on May 20, 2024
37
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
Review of Indicators for Introduction of IFRS / ICS
IFRS / ICS to be introduced at the end of FY2025
Considering the impact of the introduction and comparability with peers (who revised various KPI indicators
upon introduction of IFRS 9 and 17), review of various indicators and definitions is planned in FY2026
・・・
FY2025 FY2026
Planned
introduction
of IFRS / ICS
*2
Profit indicators
Nov. 2025
Planned to provide
guidelines for various
KPIs based on
the new definition
ROE
Adjusted Net Income / Business Unit Profits
Adjusted ROE
Based on new
definitions
(Reference)
Europe
Peers
Dividend Policy
Adjusted net income (5Y average) x Dividend payout ratio (currently 50%)
ESR
Current ESR (confidence level: 99.95% VaR)
Target
100-140%
Revision of various
KPIs
*1
upon
introduction of
IFRS 9 and 17
FY2022
Planned ICS
*2
introduction
<Current KPIs / Definition> <From FY2026>
TMHD
*1: Profit indicators, etc.
Europe Peers: Allianz, AXA, Zurich
Source: Company data
*2: Insurance Capital Standard. International Association of Insurance Supervisors is expected to introduce a prescribed capital
requirement for Internationally Active Insurance Groups by the end of FY2025
In Japan, it is expected to be introduced as the “Economic Value-based Solvency Framework”
Re-post from Q4 Conference
Call on May 20, 2024
38
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
39
Globally Integrated Group Management
Continue to promote “integrated group management” that leverages global talent and knowledge to decide
and implement important management actions
Tap into global wisdom with steady succession of overseas management and enrichment of global committees
to further enhance the quality, confidence, and speed of management decisions
Appropriate application of expertise on global basis
Leverage global talent and knowledge to decide and
implement important management actions
International top management
Donald Sherman
Vice President
Executive Officer
Co-CIO
Christopher Williams
Vice President Executive Officer
Co-Head of Int’l Business
(up to Mar. 2024)
José Adalberto
Ferrara
Caryn Angelson
Randy Rinicella Gus Aivaliotis
Robert Pick
Deputy CxO
John Glomb
Deputy
CLCO
Deputy
CITO
Deputy
CDO
Group CDIO
Executive Officers
PHLY
TMSR
Key Management
Matters
Key Global Committees
ERM • ERM Committee
M&A • International Executive Committee
Underwriting • Global Retention Strategy Committee
Reserving
• International P&C Reserving Actuary
Committee
Investment • Investment Executive Roundtable
Risk
Management
• International Risk Committee
IT / Digitalization
Security
• Global IT Committee
• Digital Round Table
Sustainability
• Sustainability Committee
• GX Round Table
Diversity • Diversity Council
Internal Audit • International Internal Audit Committee
Susan Rivera
Managing Executive
Officer
Co-CRSO
Brad Irick
Managing Executive Officer
Co-Head of Int’l Business
Apr. 2024
Apr. 2024
Apr. 2024
Continue to support the international business
as the Chairman of International Business
Deputy
CRSO
Deputy
CAO
Dawn Miller
Barry Cook
Apr. 2024
Apr. 2024
Senior General Manager
Daniel Thomas
Risk
Management
Daljitt Barn
U/W
Apr. 2024
Steady succession
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
40
Expansion of Group Synergies
Group synergies are our unique strength and steadily expanding to USD618mn as a result of
Globally Integrated Group Management
Investment
Leverage DFG’s asset
management
capabilities
Revenue
Leverage our
global network
Cost
Leverage group
resources and economies
of scale
Capital
Optimize retention /
reinsurance at group
level
Group
Synergies
Annual profit
contribution:
USD
618mn
(Dec. 31, 2023)
Group Synergies
609
646
757
799
971
906
*
2018 2019 2020 2021 2022 2023
(USD mn)
Example of revenue synergies
Cross-selling
Cross-sell reference to customers in
other group entities
Joint approach for mega-events and large
corporations
Joint Approach
Lateral expansion of specialty products
Regional
Expansion
Leverage group capital, intellectual /
human capital, and network
Strategic Use of
Group Assets
Revenue synergy (DWP)
*: DWP rose YoY excl. impact of loss of synergy from specific projects due to sale of Highland in 2022 (ref. P.33)
Copyright (c) 2024 Tokio Marine Holdings, Inc.
Management Quality
Improvement
Shareholder ReturnEffective Use of CapitalEPS Growth
V. Group Business
Strategy
41
Enhancement of Governance and Risk Management
Further enhancement of governance at Group-level is set as one of key strategies in the new MTP and will be
executed rigorously through the newly established “Group Audit Committee” and full utilization of external
perspectives. We are steadily implementing the "measures" presented at FY2023 Interim IR Conference in
Nov. 2023
Strengthen direct instruction / supervision by TMHD for domestic and overseas entities and further develop
the Global integrated group management
Themes to be deliberated by Group Audit Committee
utilizing “external perspective” (example)
Review of the gap from the common sense of the society (re-inspection of
our common sense)
Review our situation in response to the possible scenarios similar to incidents
at other companies / industries (“draw a lesson”)
Preventive measures for past incidents at group companies will be considered
to implement at other group companies
Consolidation of governance functions such as the second and
third lines of group companies for further direct instruction /
supervision by TMHD
Enhancement of direct audit by TMHD (conducted as necessary
from FY2024)
Utilization of external perspectives
[Japan] Consolidate governance functions, enhance internal audit
Established “Group Audit Committee” in April 2024. External
members including the Chair comprise majority of the Committee
Utilize “external perspectives” to review the appropriateness of our
business process, culture etc.
Completed the formulation of action plans after evaluating the
framework of each group company, and in the process of
monitoring its progress. Promote enhancement of group
companies’ framework thorough the PDCA cycle
[Int’l] Enhance internal control and further supports aligned with
the maturity level of each group company
Utilization of industry leading experts
Continue recruitment / development of experts for risk
management, legal & compliance, internal audit etc., and
promote further utilization across group companies
Copyright (c) 2024 Tokio Marine Holdings, Inc.
(Blank Page)
42
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
Group ・・・・・・・・・・・・ P. 44
Japan P&C ・・・・・・・・・・・・ P. 51
Japan Life ・・・・・・・・・・・・ P. 56
International ・・・・・・・・・・・・ P. 61
Investment ・・・・・・・・・・・・ P. 73
43
Table of Contents
Business Area Expansion・・・・・ P. 76
Capital Policy ・・・・・・・・・・・・ P. 80
ESG ・・・・・・・・・・・・ P. 82
Data ・・・・・・・・・・・・ P. 90
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
44
Overview of New MTP
Set forth “Our Long-term Aspiration 2035” in light of the rapid changes in the business environment (and as
a result, the need for a unique and unprecedented business portfolio)
Towards its realization, we will steadily execute our “Group Major Strategies” in addition to continued
implementation of “Group Core Strategies”
Re-post from IR Conference on Nov. 22, 2023
“Our Long-term Aspiration 2035” in response to changes in business environment
“Group Major Strategies”
in the MTP 2026
“Group Core Strategies”
we continue to promote
Global Risk Diversification
Global Integrated Group
Management
“A Partner that continuously provides innovative solutions”
to the issues / risks of our customers and society
“3 Pillars” of “Growth”
(1) Drastic expansion of domains where
we can deliver our value
(2) Diversification of distribution model
(3) Extensive improvement of productivity
“2 Pillars” of “Discipline”
(1) Strengthening and improvement of
Internal Control / Governance
(2) Enhancement of Business portfolio
and capital management
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
45
“Our Long-term Aspiration 2035” and Its Image
In addition to providing best fit “Insurance” products to issues / risks of customers and society to protect
customers and society “in times of need”, we will provide “Solutions” that contribute to “Prevention /
Recovery fields” and “Well-being”, to “always” support them.
Expansion of issues/risks of customers and society (※) Issues/Risks are all examples
Disaster
prevention/
mitigation
Health
care
GX
Mobility
Cyber
Asset
Building
・・・・・
・・・・・
New issues/risks
Growth opportunities
New issues/risks
Growth opportunities
Re-post from IR Conference on Nov. 22, 2023
“A Partner that continuously provides innovative solutions”
to the issues / risks of our customers and society
Solution that
contribute to “Well-being”
“Insurance” for
new issues / risks
Solution for
“Prevention, mitigation
and recovery“
Conventional
Insurance
Evolution of “Insurance” business
Growth in “Solution” business
other than insurance
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
KPI target
*1
of New MTP
MTP
（2024-2026）
MTP
（2024-2026）
Adjusted
EPS
(CAGR from FY2023）
CAGR+8% or more
Adjusted
ROE
+14% or more
incl. capital gains from sale of
business-related equities
*4
+20% or more
incl. capital gains from sale of
business-related equities
*4
+16% or more
CAGR+5% or more
CAGR+3% or more
CAGR+5% or more
Japan
Life
*3
Japan
P&C
*2
Inter-
national
Adjusted Net
Income
(CAGR from FY2023）
Business
Unit
Profit
The impact of absence of negative FX effect
*5
for Japan P&C included in the base figure for
MTP in FY2023: c. +JPY46.0bn
CAGR+7% or more
incl. capital gains from sale of
business-related equities
*4
+15% or more
*1: KPIs are based on current definitions.
*2: Japan P&C = TMNF (same in the following pages); excl. FX impact
*3: Japan Life = TMNL (same in the following pages)
*4: Excluding the impact of capital gains from the sale of business-related equities for part of sale exceeding the plan
*5: Increase in provision for foreign currency denominated reserves and losses reported for FX derivatives at TMNF
due to JPY depreciation in FY2023
46
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
Review of Previous MTP (Overall)
Adjusted ROE
Adjusted net income
(CAGR: vs FY2020)
Previous MTP
（2021-2023）
CAGR+3-7%
Approx. 12%
15.0%
*1
（15.5％）
CAGR+15%
*1
JPY685.5bn
*1
(JPY711.6bn)
2023 Results
Normalized basis
(Actual in the parentheses)
✔
✔
Japan Life
Japan P&C
Inter-
national
Others
*7
Business
Unit
Profit
✔
✔
JPY41.1bn
JPY42.8bn
(JPY41.1bn)
JPY109.0bn
*2
JPY154.8bn
*2
(JPY101.4bn)
JPY448.4bn
*3
(JPY436.9bn)
JPY86.7bn
*4
(JPY131.9bn)
JPY160.0bn or more
Stably secure
JPY50.0bn level
Approx. JPY70.0bn
Approx. JPY230.0bn
Excl. FX
Excl. FX
*5
*6
*1: Normalized Nat Cats to an average annual level and excluding capital gains on
business-related equities (for the portion of the sale amount exceeded the original
plan) and capital gains / losses in North America, etc.
*2: Normalized Nat Cats to an average annual level
*3: Normalized Nat Cats to an average annual level and excluding capital gains / losses
in North America, etc.
*4: Excluding capital gains on business-related equities (for the portion of the sale
amount exceeded the original plan)
*5: Almost achieved the plan with JPY154.8bn for FY2023 excl. FX impact
*6: Failed to achieve the plan due to higher hedge cost, etc.
*7: Japan P&C other than TMNF and financial / general businesses, gains / losses on
sale of business-related equities, etc.
47
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
FY2023 Adjusted Net Income (Normalized)
Increase of JPY68.3bn primarily led by strong performance notably from international business
Adjusted Net Income (billions of JPY)
617.1
685.5
YoY Change +68.3
2022
Normalized
*1
2023
Normalized
*1
One-off effects
*1
+173.1
Others
+75.2
FX
+17.9
444.0
2022
Results
2023
Results
Japan Life
*2
-3.7
Other
*2.3
+14.1
One-off effects
*1
-26.1
711.6
FX
-19.2
Others
(excl. business-
related equities)
-16.2
Japan P&C
*2,3
-35.4
International
*2
+93.2
Strong increase in top-line
Increase in investment income
Increase in FX gains
Deterioration of L/R for auto
Hedging cost increase
*Investment is c. -9.3 out of -16.2
Strong underwriting by key entities
Increase North American investment income
Increase in North American capital losses (CECL)
*Investment is c. +39.8 out of +75.2
*1: Deducted following one-off effects of -JPY173.1bn from FY2022 results of JPY444.0bn:
(1) Nat Cats c. -26.0, (2) capital gains / losses in North America c. -16.0, (3) COVID c. -134.0, (4) war c.-14.0, (5) South African floods c.-4.0, (6) capital gains from sale of business-related equities
c. +15.0 (for part of sale exceeded JPY100.0bn), (7) FX gains / losses between foreign currencies c. +6.0
Deducted following one-off effects of +JPY26.1bn from FY2023 results of JPY711.6bn:
(1) Nat Cats c. -13.0, (2) capital gains / losses in North America c. -7.0, (3) capital gains from sale of business-related equities c. +47.0 (for part of sale exceeded JPY150.0bn), (4) FX gains / losses
between foreign currencies c. -5.0), etc.
*2: Japan P&C=TMNF. Japan Life=TMNL. All figures are on a business unit profit basis (Other: Japan P&C other than TMNF, financial and general businesses, capital gains from the sale of business-
related equities, consolidation adjustment, etc.)
*3: Capital gains from the sale of business-related equities are not included in business unit profits but are included in adjusted net income
Re-post from Q4 Conference
Call on May 20, 2024
48
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
FY2024 Adjusted Net Income Projection
Adjusted net income projected to be JPY1tn (+46% YoY) thanks to the accelerated sale of business-related
equities (plan to sell equities worth JPY600.0bn in FY2024) despite increase in group total Nat Cats budget
factoring in impact of Hyogo hail damage and the favorable prior year loss reserves development in the
previous year
Adjusted Net Income (billions of JPY)
685.5
1,000.0
YoY Change: +314.4
+46% (or +40%
*1
excl. FX)
2023
Normalized
*2
One-off effects
*2
-26.1
Other
-14.1
FX
+45.7
711.6
2023
Result
2024
Projection
Japan Life
*3
+0.8
International
*3
+6.5
Other
*3,4
+303.3
Strong underwriting in key businesses
(excl. prior year loss reserves takedowns)
Reversal of previous year’s capital losses
(CECL and others) in North America
Favorable prior year loss reserves
development
*5
in the previous year
*Investment is c. +2.5 out of -14.1
Effect of rate/product revision in fire
Increase in business expenses
Favorable FX gains in the previous year
*Investment is c. -13.8 out of -5.8
Nat Cats
-9.1
Rise in capital gains following the accelerated
sale of business-related equities by +c. 300.0
FX
+29.7
Nat Cats
-36.0
Other
-5.8
Japan P&C
*3,4
+3.9
*1: Excluding FX effects due to yen conversion
*2: Deducted the impact of following one-off effects +JPY26.1bn from the 2023 adjusted net income of JPY711.6bn
(1) Nat Cats c. -13.0, (2) capital gains / losses in North America, etc. c. -7.0, (3) gains on sales of business-related equities c. +47.0 (for part of sale exceeded JPY150.0bn),
(4) FX between foreign currencies c. -5.0, etc.
*3: Japan P&C=TMNF. Japan Life=TMNL. All figures are business unit profits (Other: domestic non-life other than TMNF, finance / general businesses, gains / losses on sale of business-related equities,
consolidation adjustments, etc.)
*4: Capital gains from the sale of business-related equities are not included in business unit profits but are included in adjusted net income
*5: Prior year loss reserves development is not factored in the projection
Re-post from Q4 Conference
Call on May 20, 2024
49
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Ⅵ. Reference
Japan P&C
Japan Life
Global Reinsurance Team
established (2023-)
Reinsurance renewal in Apr. 2024
In negotiations with reinsurers, the head office and the Global Reinsurance Team in London
headed by Barry Cook are working together to conduct strategic negotiations by
leveraging the bargaining power of the entire Group and the collective strength of the
Group
By showcasing the enhancements in our primary underwriting in fire and liability
insurance and the superior quality of our primary portfolio to reinsurers, we successfully
secured competitive terms and conditions
Successfully kept reinsurance rates flat while increasing procurement to take advantage
of opportunities for capacity supply recovery to accommodate continued growth in primary
business (effectively reducing rates)
Tokio Marine Group’s Retention / Reinsurance Policy
Our primary objective of reinsurance is to protect the balance sheet from capital events
We implement flexible cycle management based on economic rationale for the earnings coverage
As for 2024 reinsurance renewals, by showcasing the enhancements in our primary underwriting and the
superior quality of our primary portfolio to reinsurers, we successfully secured competitive terms and
conditions amid our group-wide negotiation efforts
Basic approach to retention / reinsurance
Low frequency and high
risk-transfer effect
Relatively low reinsurance
rates; less susceptible to
market cycle
Hight frequency and low
risk-transfer effect
Relatively high reinsurance
rates; more susceptible to
market cycle
Implementing cycle
management with focus on
economic rationale
Stable /continuous
reinsurance arrangements
for capital events
Core
Reinsurance
Cover
Earnings
Reinsurance
Cover
Primary
Retention
Latest market environment
Unprecedented hardening of the reinsurance market in 2023 due to Hurricane Ian and
other factors
Reinsurers' performance saw an improvement in 2024 relative to the preceding year, with a
recovery in capacity supply; however, rates continue to be elevated
Reinsurance renewal results in Apr. 2024
Key initiatives for retention / reinsurance
Use of Group reinsurance
Issuing a new earthquake
cat bond "Kizuna Re III"
50
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Full-time
professionals
27.6%
Business
companies
28.0%
Dealers
18.2%
Auto repair
shops
8.0%
Financial
institutions
4.0%
Other
14.2%
Auto
47.0%
Specialty*3/
P.A.
24.0%
Fire
17.3%
CALI
8.2%
Marine
3.5%
Changes in net premiums written (all categories; billions of JPY) and C/R
*1
(private insurance E/I basis)
Composition by channel
Composition by category
TMNF: Changes in Net Premiums Written for All Categories and C/R
2,036.7
2,128.3
2,116.1
2,144.7
2,166.6
2,247.5
2,261.3
2,288.1
2,385.2
2,417.9
2,520.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
90.6%
92.7%
90.4%
93.9%
102.2%
98.7%
92.5%
90.6%
95.8%
97.7%
95.2%
Projection
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2024
Projection
C/R
*1
90.6% 92.7% 90.4% 93.9% 102.2% 98.7% 92.5% 90.6% 95.8% 97.7% 95.2%
E/I loss ratio 58.5% 60.1% 57.7% 61.4% 70.0% 66.3% 60.8% 58.1% 63.8% 65.9% 63.3%
（
Nat-cat, annual
average basis
*2
）
59.2% 58.2% 57.3% 59.1% 59.9% 60.4% 58.7% 59.4% 62.7% 65.4% 61.8%
W/P expense
ratio
32.2% 32.6% 32.7% 32.5% 32.3% 32.4% 31.6% 32.5% 32.1% 31.8% 31.9%
*3: The category for “Other”
on financial statements
(FY2023: On net premium written basis)
(FY2023 premiums on managerial accounting basis)
Breakdown of C/R
*1
(private insurance E/I basis)
*1: C/R＝E/I loss ratio + W/P expense ratio
*2: The ‘annual average basis’ for FY2024 is calculated based on the annual budget projected in the new MTP, though it differs from Nat Cats
original budget for FY2024, which includes the hail damage in Hyogo in April (see P.90)
51
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TMNF
25.6%
Other
63.1%
Direct marketing
insurers
*4
9.3%
TMNF: Changes in Auto Insurance C/R
Changes in auto insurance C/R
*1
(private insurance E/I basis)
Breakdown of auto insurance C/R
*1
(private insurance E/I basis)
Auto insurance market share
*3
NF
2.0%
91.6%
91.4%
91.0%
91.8%
93.1%
91.6%
84.2%
87.7%
93.5%
97.9%
99.1%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Temporary decrease in accidents
due to COVID-19
Projection
Including the effects of
Nat Cats (hail disasters)
[Oct. 2014 revision]
+0.9％
[Jan. 2018 revision]
-2.4％
[Jan. 2020 revision]
+3％
[Jan. 2022 revision]
-2％
[Jan. 2024 revision]
+2.5％
2024
Projection
C/R
*1
91.6% 91.4% 91.0% 91.8% 93.1% 91.6% 84.2% 87.7% 93.5% 97.9% 99.1%
E/I loss ratio
61.1% 60.5% 60.2% 60.8% 62.3% 60.8% 54.3% 56.8% 62.5% 67.3% 68.8%
(Nat-cat, annual
average basis
*2
)
61.2% 60.4% 60.5% 60.6% 61.0% 60.0% 54.6% 57.3% 60.6% 64.8% 65.9%
W/P expense
ratio
30.5% 30.9% 30.8% 31.0% 30.9% 30.8% 29.9% 30.8% 31.0% 30.6% 30.4%
20182014 2015 2016 2017 2019 2020 2021 2022 2023
(Based on FY2022 direct net premiums written)
*3: Source: Insurance No. 5008
*4: Included are: SONY, AXA, Mitsui Direct, Saison,
SBI, E.design and Zurich
*1: C/R＝E/I loss ratio + W/P expense ratio
*2: The ‘annual average basis’ for FY2024 is calculated based on the annual budget projected in the new MTP, though it differs from Nat Cats
original budget for FY2024, which includes the hail damage in Hyogo in April (see P.90)
[ ]: Rate revision
52
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TMNF: Changes in Fire Insurance C/R
Changes in fire insurance C/R
*1
（private insurance E/I basis)
Breakdown of fire insurance C/R
*1
（private insurance E/I basis)
87.7%
98.7%
93.0%
106.3%
161.4%
129.9%
121.1%
97.5%
101.7%
96.1%
89.1%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
[Oct. 2015 revision]
R:+4.5%
C:+0.8％
[Oct. 2019 revision]
R:＋7％
C:＋8％
[Jan. 2021 revision]
R:+9％
C:+9％
[Oct. 2022
revision]
R:+13％
[Jan. 2023
revision]
C:+7％
Projection
[ ]: Rate revision
R: Residential property
C: Commercial property
2024
Projection
C/R
*1
87.7% 98.7% 93.0% 106.3% 161.4% 129.9% 121.1% 97.5% 101.7% 96.1% 89.1%
E/I loss ratio
48.7% 60.4% 54.1% 68.7% 122.8% 91.7% 84.1% 59.5% 66.5% 62.0% 55.6%
(Nat-cat, annual
average basis
*2
）
55.1% 48.8% 51.6% 56.0% 63.5% 60.0% 70.2% 64.8% 65.9% 65.7% 55.6%
W/P expense
ratio
39.0% 38.4% 38.9% 37.6% 38.6% 38.1% 37.0% 38.1% 35.1% 34.1% 33.6%
2019 2020 2021 2022 202320182014 2015 2016 2017
*1: C/R＝E/I loss ratio + W/P expense ratio *2: The FX impact differs from (normalized) underwriting profit stated in p.14
53
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54
(Ref.) Progress of Automated Driving Technology
Autonomous driving technology is making certain progress but universal deployment will take considerable time (short-time changes are limited)
Auto insurance market will gradually shrink due to the progress of automated driving technology, but
expectations for insurers as part of social infrastructure will rise against the backdrop of the increasing
sophistication of automobiles and the complexity of liability relationships
• Lower accident frequency↘
• Higher price per claim↗
Claim cost
Price per
claim↗
Accident
frequency↘
＝
×
Level 2 (partially autonomous)
Level 3 (conditional autonomous)
Level 4 (highly autonomous)
Level 5 (fully autonomous) TBD
Level 0 (zero autonomous)
Level 1 (driving support)
<Government target (private vehicles)>
Human System
<Driver>
<Autonomous driving level>
Average car ownership: 9 years
Replacement of all vehicles will take more than 15 years
*2
No significant changes to claim cost for the time being
Progress in Automated Driving Technology
Growing expectations of insurers as social infrastructure
Maintain the liability of automobile operator during autonomous
driving
Operator liability to be maintained up to Level 4
*3
; no change to the
usefulness of the current auto insurance
System for speedy victim relief without payment by policy holders
Achieve prompt victim relief under a special contract in case of accidents
where operator liability is not applied or in cases where a responsible party
is unclear, such as cyber risk
✔Apr. 2017: Launched coverage riders for victim relief expenses [First in
industry]
✔Apr. 2021: Accidents during autonomous driving have no impact on the
grade rating system [First in industry]
Current auto insurance adapted to autonomous driving
*1: Based on our data, insurance payment for expressway accidents comprise about 3% of all accidents
*2: Public-Private ITS Initiative / Roadmap 2020
*3: Mar. 2018, MLIT Research Group on Liability for Accident Compensation concerning Autonomous Driving
Expectations of insurance companies to grow further
Fulfill roles as social infrastructure, leveraging the strength of nationwide office
network and wealth of experience in auto insurance services to ensure victim
relief amid the progress in driverless driving technologies
Initiatives anticipating the future spread of Level 5
✔Jan. 2022: Formed a capital and business alliance with May Mobility
✔Oct. 2022: Launched an additional rider for the insured such as the
developer of driverless vehicles
✔Jun.
2023: Launched remote motion monitoring/incident response service for
automated delivery business operators
We will continue working on developing products and services that contribute
to victim reliefs to help realize a safe and secure autonomous driving society
with an eye on the future spread of Level 5
By 2025, autonomous driving on expressways
*1
From Mar 2021, autonomous driving on expressways
*1
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Japan Life
Reform of “customer contact points”
In addition to customer approach through agents, life and P&C businesses to
engage in integrated promotion of a new business model (“direct approach”)
where TMNL builds direct contact points with corporate customers and
employees to provide information and stimulate needs, then sends
customers to agents
Reform of “offered value”
To solve the social issue related to ”protection,” “asset formation,” and “health
promotion” in the era of 100-year life, develop unique covers and services to
expand protection to pre- and post-incident areas such as presymptomatic
illness, early detection, and prevention of escalation
Promote integrated products that offer coverage and services by capturing
the customers’ health through insurance benefits in the expanded coverage area
and notify optimal healthcare services
56
Confidence for MTP Quantitative Targets (Top-line)
Achieve +5% or more (3Y CAGR) with business model reform under the new MTP
In addition to the conventional agent model, life and P&C’s integrated promotion of the new “Direct
Approach” business model where TMNL builds direct contact points with customers and sends them to agents
to drive the top-line growth exceeding the market
49.2
Top Line
(Annualized premium of new policies, “ANP”)
(billions of JPY)
Key Initiatives
Total ANP
JPY49.2bn
Of which Direct Approach
3Y CAGR of +20％ or more
2023 2026
Total ANP
+5% or more
(3Y CAGR)
Approach by agents
TMNL builds direct contact points
• Corporate customers
• Online direct customers
• Digital platformers
• Corporate employees
• Existing life and P&C
customers
Expand target markets
2023 2026
49.2
3Y CAGR
+5％ or more
For existing agent business, continue to accelerate cross-selling with integrated market
development by life and P&C for the vast customer base of Tokio Marine Group
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Ⅵ. Reference
Japan Life
2023 2026
57
Confidence for MTP Quantitative Targets (Bottom-line)
■ Value of New Business
■ (Ref.) Increase in Core MCEV
*
[Economic value basis (Value of New Business)] Achieve +5% or more (3Y CAGR) by increasing sales through
customer contact point reform and continuously launching highly profitable products
[Financial accounting basis (Business Unit Profits)] Continue working to promptly post profit by expanding
sales of products with a shorter profit recovery period
Economic value basis (Value of new business）
2023 2026
64.8
Financial accounting basis (Business unit profits)
41.1
(billions of JPY)
(billions of JPY)
3Y CAGR
+5％ or more
91.2
3Y CAGR
+3% or more
*: Value of new business + contribution from value of in-force business
2020 2023 2026
350.9
268.6
(Ref.) Annualized Premium of
Policies (Protection type
products + regular premium
variable life insurance)
Highly profitable main products
are steadily increasing and will
become future profit growth driver
(billions of JPY)
CAGR
+9.3%
CAGR
+7% or
more
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Japan Life
0Y
15Y
0%
IRR
(Internal Rate of Return for full insurance period)
*4,5
HighLow
PBP
(period required for cumulative surplus)
*6
Short-
term
Long-
term
Shift to
protection-type
products
Suspended sale
From Oct. 1998:
Long-term savings-
type products
58
Improve Profitability and Accelerate Profit Contribution
Future profit growth has been accelerating by focusing on products with high ROR and IRR that will
promptly contribute to profits
Sales expansion of highly profitable main products is making steady progress. Continue achieving
sustainable growth with profit
*4: Profitability as expected return on cost for the entire insurance period on financial accounting basis
*5: The size of the bubble indicates annualized premium of new policies (2024 projections)
*6: Payback Period (period until the cumulative profit on financial accounting basis to turn positive)
(Figures in the above chart are 2016 results for long-term saving-type products and 2024 projections
for other products)
Enhancement of IRR and shortening of PBP
ROR*
1
for TMNL’s main products (image)
*1: The size of the bubble indicates annualized premium of new business (2024 projections).
*2: Value of new business and future release of cost relating to non-hedgeable risks (2024
projections)
*3: Sum of the present value of required capital for each future fiscal year (2024 projections)
Enhancement of ROR
0%
Return
*2
Risks
*3
7% ROR
(TMHD capital cost)
Current mainstay products have small interest rate risk, securing
ROR above capital cost (TMNL new business total: 21%)
30Y
7%
(TMHD capital cost)
(Image)
Total IRR of TMNL new business improved to over 10% and PBP
to less than 10 years
Regular premium
variable life insurance
Cancer treatment
insurance
Disability insurance
Fixed-term insurance
(with non-cancellation surrender value rider)
Medical
insurance with
relaxed
underwriting
criteria
Long-term care
annuity
insurance
Specified diseases treatment
insurance (From Aug. 2023)
Medical insurance
with relaxed
underwriting criteria
Long-term care
annuity
insurance
Cancer treatment
insurance
Specified diseases
treatment insurance
(From Aug. 2023)
Regular premium
variable life insurance
Disability
insurance
Fixed-term insurance
(with non-cancellation
surrender value rider)
TMNL total
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Japan Life
Year 1
1-10
59
Capital efficiency
Capital efficiency is among the highest in domestic peers both on the financial accounting basis and
economic value basis
TMNL
P&C-affiliated life
insurance companies
*3
Listed life insurance
companies
*2
Increase the value of new business in core ROEV numerator with
expansion of sales scale along with portfolio transformation
Limit the interest rate sensitivity of the denominator by reducing
interest rate risk
8%
5%
6%
Core ROEV
*1
(economic value basis, FY2022 results)
TMNL
13%
P&C-affiliated life
insurance companies
*3
Listed life insurance
companies
*2
9%
4%
Accelerate the growth of the numerator by expanding / accelerating
profit contribution through further product portfolio transformation
As a result, ensure stable double-digit level of capital efficiency
Adjusted ROE
*4
(financial accounting basis, FY2022 results)
*1: Numerator = Value of new business + Contribution from value of in-force policies (risk-free); Denominator = Embedded Value
*2: Dai-ichi Life, Taiyo Life, Daido Life, and Sony Life
*3: SOMPO Himawari Life Insurance and Mitsui Sumitomo Aioi Life Insurance
*4: Numerator (adjusted net income) = net income + provision for contingency reserve and price fluctuation reserve
*Only TMNL deducts gains or losses on sales or valuation of ALM bonds, etc.
Denominator (adjusted net asset) = net assets + contingency reserve + price fluctuation reserve
*5: On annualized premium of new policies basis for products indicated on p.58, except business insurance (The product has been
discontinued since FY2019)
<J-GAAP based profit as a percentage of initial cost of new policy>
Shorten the period for cumulative
surplus to less than 10 years
Year elapsed
since
underwriting
■ 2024 new business
78%
33%
■ 2018 new business
Percentage of products with high IRR
*5
+45pt
1.0
0.5
0
-1.0
11-20 21-30 31-40
41-50
*2023 Results: 7%
*2023 Results: 22%
<Changes in risk of Japan Life (99.95% VaR, UFR not applied)>
Interest rate
risk reduced
End of Mar. 2019 End of Mar. 2024
JPY970.0bn
JPY570.0bn
Total risk amount
Of which,
interest rate risk
JPY160.0bn
JPY620.0bn
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Japan Life
60
Diversification of Risk Control Methods (Block Reinsurance)
Strict interest rate risk control with ALM (comprehensive asset and liability management)
In addition to hedging by purchasing JGBs, block reinsurance was purchased for part of existing policies in
April 2024
Continue flexible risk hedging with economic rationale corresponding to the market environment and
reinsurance market conditions, together with diligent diversification and enhancement of risk control
methods
Applicable policies
Some of the whole life insurance with
lower surrender value after the premium
payment period
Transaction size JPY224.0bn (Reserves basis)
Whole life insurance with lower
surrender value
Total: JPY2.3tn
Reserves in Balance Sheet
JPY224.0bn
Reinsurance
company
Block reinsurance
(transfer of risks with
coinsurance-type
reinsurance)
Reduce U/W risks incl. lapse risk, as well as extremely long-term
interest rate risk which are difficult to hedge in the financial market.
New credit exposure is created against the reinsurer, but rise in
counterparty risk is substantially managed by selecting reinsurance
companies, enjoying risk diversification and securing collaterals
Increased MCEV +JPY16.0bn
Reduced risk for
Japan Life Business
Improvement of
ROR
*1
(FY2024)
Profit impact
JPY620.0bn→ JPY610.0bn
14%→ 17%
One-off profit from reinsurance: +JPY25.0bn
Loss from sale of bonds
*2
: -JPY25.0bn
<Summary of the block reinsurance>
<Effect and impact>
Realized transaction with positive EV by capital release against
unhedgeable risk and appropriate risk replacement through schemes
*1: ROR numerator is the expected increase in FY2024 MCEV after deduction of change in economic environment, etc.
*2: Sale related to hedge ratio adjustment
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Ⅵ. Reference
Track record of In / Out Strategy
Building a strong franchise by acquiring blue chip insurers with solid business model
Driving optimization of business portfolio by determining core and non-core businesses
Expand into non-
Japanese businesses
Emerging
Markets
P&C
Established
material
presence in the
U.S. and Europe
Mar. 2008
Acquisition
Dec. 2008
Acquisition
Growth and business
diversification in the U.S.
May 2012
Acquisition
Oct. 2015
Acquisition
Regional diversification
Secure entry into emerging markets
Business diversification
Aug. 2018
Acquisition
Dec. 2018
Investment
Feb. 2021
Launch
Feb. 2020
Acquisition
2000 2007 2012 2015 2018 2020
(-2000)
Mainly
engaged in
Japanese
business
Run-off from
Jan. 2019
Sep. 2020
Divestment
Egypt
Takaful Life
Business divestment
Reinsurance
subsidiary
Mar. 2019
Divestment
Emerging
Markets
Life
Non-Japanese
business
*1
in Europe
*1: UK non-Japanese business and part of non-Japanese business in continental Europe with low profitability
(continue Lloyd’s business)
*2: Construction insurance agency, part of Tokio Marine Highland (former WNC) Group owned by TMK
Aug. 2022
Divestment
Highland
*2
Jun. 2022
Launch
Run-off from
Sep. 2022
TMK
Reinsurance
business
Dec. 2023
Divestment
Guam TMPI
Feb. 2024
Divestment
Saudi Arabia
Life/Non-life
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7%
11%
11%
9%
9%
4%
9%
8%
6%
6%
2019 2020 2021 2022 2023
85%
90%
95%
100%
105%
2019 2020 2021 2022 2023
What’s PHLY
Current Focus
Results
Focus on niche customer segments
Strong customer loyalty
High renewal ratio and rate increases
Net Promoter Score
*1
PHLY
*4
Rate increases
Renewal ratio
Favorable combined ratio
U.S. P&C market average
*5
[Basic Information] PHLY
PHLY 89.6％ 86.2% 90.1% 93.2% 87.0％
Steady profit growth
while managing social inflation
Build competitive edge focusing on niche customer segments
32
67
39
PHLY
■PHLY
■Market
*3
Top-line
*2
USD3.9bn
（2023）
Human services
33%
Real estate 16%
Public services
9%
Non-profit organization
D&O E&O 15%
Sports&
Recreation 9%
Other 11%
Auto 6%
Home Insurance
Industry
Average
Auto
Industry
Average
Market composition
(2023)
Rate
Increases
Rate increases above
loss-cost
Mitigate
inflation
risks
Accelerated settlements and
reduced lawsuits by c. 60%
Reference:
reserves
provision
Set as early as in 2019 the
provisions for the past
reserve ($273m)
*No significant increase in provisions since then
Portfolio management based on
profitability
Stricter underwriting for less
profitable Tier 3
(YoY growth: -10%)
Expand profitable
Tier 1
(YoY Growth: +9%)
*1: (Source）NICE Satmetrix 2023 Consumer Net Promoter Benchmark Study
*2: NWP
*3: (Source) Willis Towers Watson
*4: Local management accounting basis. Temporary increase due to increase in past reserve provision in 2019
*5: (Source) S&P Capital IQ
62
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Ⅵ. Reference
85%
90%
95%
100%
105%
2019 2020 2021 2022 2023
5.67%
6.17%
0.86%
3.00%
5年平均
（2019-2023）
2007-2023平均
Strength in employee benefits and
retirement products / services
Municipal bonds
22.7%
Loans
41.9%
Corporate
Bonds
8.3%
Securitization
Products
20.5%
Others
6.6%
Investment Balance
$34.7bn
（2023）
$30.3bn
（2022）
DFG
*2
U.S. P&C market average
*3
Combined ratio
[Basic Information] DFG
Excess workers’
Compensation
22.6%
Disability
31.4%
Group life insurance
15.7%
Other non-life
24.2%
Other life insurance
6.1%
RSL 53%
（Life）
SNCC 47%
（Non-Life）
What’s DFG Current Focus Results
■ DFG ■ Barclays US Aggregate Bond Index
Maintain U/W profit and expand investment income leveraging its strengths
（USD mn）
A long-term, stable asset management
portfolio focusing on investment income
0.78
1.22
▲0.34
0.31
5年平均
（2019-2023）
2007-2023平均
681
640
803
1,085
1,535
2019 2020 2021 2022 2023
Product composition
(2023)
In addition to the above, managing $15.4bn of
Group company entrusted assets
Response to changes in environment,
including rising interest rates
Utilize DFG’s strength in abilities to gather
and analyze information to develop a flexible
portfolio according to investment
environment
Resilient against rising interest rates due to
variable interest products in the portfolio.
Also, controlling duration by increasing
investment in attractive long-term bonds
<Track record vs. index>
Investment return Sharpe ratio
*1
Initiatives to improve profitability
SNCC is the market leader in excess
workers’ compensation, maintaining
growth leveraging their expertise and
brand, while actively promoting data-
driven business operation by incorporating
AI and digitalization in wide range of
operations including underwriting and
claims service
* See P.21 for RSL initiatives
Strong profit
*4
growth
*1:Measures return per unit of risk. Calculated as “(Investment return – risk free
rate) / Volatility”. Risk free rate: LIBOR6M
*2:Local management accounting basis. (Includes impact of COVID-19 for 2020
and 2021)
*3:(Source) S&P Capital IQ
*4:Business unit profits - capital gains / excess losses (after tax)
5yr avg
(2019-2023)
2007-2023 avg
5yr avg
(2019-2023)
2007-2023 avg
63
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80%
85%
90%
95%
100%
105%
2019 2020 2021 2022 2023
Stable profitability
*6
TMHCC
*7
U.S. P&C market average
*8
Favorable combined ratio
[Basic Information] TMHCC
What’s TMHCC Current Focus Results
Global leader in specialty insurance with 50 years of deep technical expertise
ーTMHCC
*2
ーMarket
*3
2019 2020 2021 2022 2023
4,479
7,644
CAGR
+14%
RLI
American
Financial
W.R.
Berkley
Travelers
Cincinnati
Financial
Markel
Old
Republic
CNA
Hartford
Hanover
HCC
2019 2020 2021 2022 2023
+16％
+14％
+6％
+9％
+8％
+6％
+6％
+5％
Less dependent on the P&C
market cycles
About 51%
■ Medical stop-loss
■ Crop
■ U.S. Surety, etc.
■ D&O
■ Property
■ Aviation
■ Energy & Marine, etc.
Other
About 49%
Product
composition
(2023)
Built a diversified specialty portfolio
through organic growth, green field
operations and bolt-on M&As (more
than 60 acquisitions)
Implement strong enterprise risk
management control
Highly profitable and well-
balanced business portfolio
Latest bolt-on M&As
Results of rate increase and
Biz-line expansion
(July 2023)
• Underwrites group gap medical plans
*1
for small and mid-sized businesses
expected to expand in the U.S.
• Help drive the growth of this business
with TMCC’s nationwide network to
capture growth in the gap medical
insurance market and further diversify
business
GGEBS
• UK Cover holder with over 25 years of
market expertise in renewable energy
business
• Aim to improve profitability while
promoting creation of a sustainable future
(May 2020)
<Rate Increase> <Top-line
*4
USD mn>
Growth rate of gross premium with 2019 set as 100
■Biz-line expansion effect*
5
■Existing Business
*1: Generic name for incidental insurance that covers medical costs not covered by primary health insurance
*2: Excluding A&H, Surety, Credit
*3: (Source) Willis Towers Watson
*4: GWP
*5: GWP is calculated by biz-line expansion effect executed in or after 2017
*6: (Source) Created by each company report and Dowling & Partners
Analysis (based on data through Dec. 31, 2023)
*7: Local management accounting basis
*8: (Source) S&P Capital IQ
Lowest
Highest
C/R decade average
LowestHighest
C/R volatility
64
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[Basic Information] Pure
Focus on HNW market with high
growth potential
2019
5.9
20282008
2.5
CAGR
+8%
The U.S. HNW population
*1
What’s Pure
Current Focus
Results
Specialty insurance group focused on the U.S. High Net Worth insurance market
（USD mn）
CAGR
+32%
642
803
1,024
1,294
1,526
1,693
1,966
2,235
2016 2017 2018 2019 2020 2021 2022 2023
（USD mn）
CAGR
+20%
CAGR
<+9%
Company Rank M/S
Chubb
１
15%
Pure
２
5%
AIG
３
3%
Cincinnati
４
2%
Nationwide
５
1%
28
40
52
66
82
105
171
190
2016 2017 2018 2019 2020 2021 2022 2023
(Million persons)
Top player in HNW market
<HNW Market M/S
*2
>
Sustainable business expansion
Increase insured amounts and rates to
conform with the market environment
Provide further additional value by
strengthening multiline sales and
leveraging E&S reciprocal
Geographically diversify the portfolio,
including expansion into Canada. At the
same time, control underwriting in some
states to expand the top-line while
enhancing disciplined underwriting
Expansion of synergies
New business relation with PHLY’s
leading agents holding HNW clients
Joint marketing to agents in Hawaii with
Hawaiian subsidiary FICOH
Joint development of cyber insurance
products with TMHCC for individual
clients
*1: Estimated from past 10-year growth of U.S. HNW population (i.e., population
with investable asset of more than USD 1M) etc. based on data from
Capgemini, BMI, and Euro monitor
*2: (Source) D&P
*3: Premiums under management company
*4: Local financial accounting profit
Strong top-line
*3
growth
Strong profit
*4
growth
65
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80%
85%
90%
95%
100%
105%
110%
115%
2019 2020 2021 2022 2023
Lloyd’s market
*4
[Basic Information] TMK
*3
What’s TMK
Current Focus
Results
Top Class Specialty Insurer in Lloyd’s market
Rank Company 2023 GWP
*1
1 Beazley 5,995
2 Brit 3,879
3 QBE 3,283
4 TMK 2,783
5 Hiscox 2,614
（USD mn）
TMK(Syndicate 510）
*2
FY2023: 86%
Rebalance U/W portfolio
Focus on growing Lloyd’s specialty
businesses with superior risk-adjusted
returns and existing underwriting expertise
Rebalance product portfolio to have less
dependence on property and be
diversified, and drastically remediate
underperforming businesses
Flexibly review business portfolio including
divestment of Highland and run-off of
reinsurance business, etc.
Disciplined U/W for low profitability contracts
Rate increases considering the hardening
market
Review / strengthen reinsurance program
Develop new insurance products and
services
Collaborate with start-ups to offer products that
combine battery diagnosis service and extended
battery warranty for used EV
Received Carrier of the Year 2023
Selected for “Carrier of the Year” in
Lloyd’s market at the Insurance Insider
mainly due to TMK’s profit improvement
evaluated (Year 2023)
Favorable combined ratio
Superior expertise
Focus on Lloyd’s specialty lines in North
America, Asia, etc.
Innovation and product development for
new risk-taking with Lloyd’s
Disciplined U/W and volatility
mitigation
One of the largest underwriting
capacity in Lloyd’s market
*1: Total GWP of syndicates managed by Managing Agents
(Source): S&P Capital IQ
*2: Local management accounting basis
*3: Excluding the impact of COVID-19 from 2020
*4: (Source) Lloyd’s Annual Report
66
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Received The Best Insurance
Company Award
Received The Best Insurance Company
Award from Brazil’s renowned “Modern
Consumer” magazine in 2023, in recognition
of customer service, etc.
2019 2020 2021 2022 2023
85%
90%
95%
100%
2019 2020 2021 2022 2023
What’s TMSR
Current Focus
Results
12.1
5.7
CAGR
TMSR
*3
︓ +21%
（Market
*1
︓＋12％）
(BRL bn)
c. 16 thou.
2014
2023
C. 41 thou.
Brazil market average
*1
TMSR
*3
Favorable combined ratio
One of the top players in Auto
market in Brazil
*1
（GWP ranking, market share ）
Rank Company
2023
M/S vs2022
1 PORTO 28.2% +0.4pt
2 TMSR 13.3% +0.7pt
3 BRADESCO 12.5% +0.1pt
4 ALLIANZ 11.8% ▲0.7pt
5 LIBERTY 9.7% +0.5pt
[Basic Information] TMSR
Highly competitive in the largest market in Latin America leveraging
cutting-edge DX
Caixa JV
Launched JV with Caixa Bank in Feb.
2021
Sell highly profitable housing insurance
in Brazil’s growth mortgage market
Business unit profit in FY2023 was
c. JPY2.5bn
*2
*1︓Calculated based on data announced by Brazilian insurance regulator SUSEP
*2︓Calculated by Dec. 2023 FX rate (JPY29.23＠BRL）
*3︓Local management accounting GWP
Expanding the number of brokers
Provide products and services that
match the demand
Provide various digital services, incl. distributing
apps that can be linked to a range of functions
accompanying insurance, or services of other
industries, in addition to online insurance
products (e.g., auto, overseas travel)
Simplify the auto insurance rate calculation
process by utilizing SNS information, and
implement a sign language translation
function on corporate websites
Improve service quality through insourcing
of the call center function for
auto / fire insurance assistance service
Above market growth（GWP）
67
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Emerging Market Business
Building “pillars” with focus on regions with large market and strong expected growth
Profits: Business unit profits
M/S: (Source) AXCO, IRDAI, IPRB、SUSEP, Swiss Re, FSCA Financial Sector Conduct Authority
Figures in brackets by the company name: Ownership ratio as of Mar. 2024
Figures in circles: GWP as of FY2022 (Source) Swiss Re
India
IFFCO-TOKIO General
Insurance (49.0%)
Thailand
Tokio Marine Safety Insurance
(Thailand) (99.3%)
Brazil
Tokio Marine Seguradora
(98.6%)
South Africa
Hollard Group (22.5%)
JPY4.2tn
JPY1.2tn
JPY1.5tn
JPY0.7tn
Malaysia
Tokio Marine Insurans
(Malaysia) (100%)
<Our major P&C business network in emerging countries>
JPY4.8tn
M/S No. 13 (3%)
Profit
M/S No. 4 (7%)
Profit
M/S No. 4 (7%)
Profit
M/S No. 3 (9%) *
2
Profit
M/S No. 7 (6%)
Profit
2023 2024 Projections
JPY4.8bn → JPY4.8bn
2017-2022 CAGR
8.8%
vs Market +3.6pt
<Non-Life Premiums
*1
>
<Growth exceeding the market>
*1: NWP for TMHD, GWP for market (Source) Swiss Re
*2: M/S of P&C business
*Profit decreases from extremely strong performance in
2023 for Thailand and Brazil. However, the plan aims to
secure strong profits maintaining C/R in low 90% range
2023 2024 Projections
JPY1.7bn → JPY2.3bn
2023 2024 Projections
JPY1.5bn → JPY4.1bn
2023 2024 Projections
JPY7.6bn → JPY6.7bn
2023 2024 Projections
JPY37.2bn → JPY23.5bn
68
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2023
2024
Projection
2026
North America
*1
1,946.8 2,164.0
PHLY 556.5 610.0
DFG 510.3 561.0
TMHCC 773.4 872.0
Europe
*2
220.7 257.0
South & Central America 310.0 339.0
Asia & Oceania 270.0 302.0
Middle East & Africa 41.8 44.0
2,789.5 3,108.0
120.5 111.0
2,910.0 3,219.0
CAGR c. +5%
Life
Total
Total Non-Life
*3
Plan
Net Premiums Written
(billions of JPY)
Actual Original
International business performance by region
*5
*5 *5
*5
*5
*1: North American figures include European business of TMHCC, but do not include
North American business of TMK
*2: European figures include North American business of TMK, but do not include
European business of TMHCC
*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries
*4: After adjustment of head office expenses
*5: vs. 2023 normalized result (FX is as of Mar. 2024 rate)
2023
2024
Projection
As of end-
Dec. 2023
As of end-
Mar. 2024
¥141.8 ¥151.4
¥180.6 ¥191.2
¥29.2 ¥30.1
GBP / JPY
Brazilian Real / JPY
Applied FX rate
Actual Original
USD / JPY
69
2023
2024
Projection
2026
North America
*1
90.7% 92.7%
PHLY 91.9% 93.8%
DFG 89.7% 94.8%
TMHCC 86.7% 88.5%
Europe
*2
85.7% 83.6%
South & Central America 86.4% 93.7%
Asia & Oceania 94.2% 96.4%
Middle East & Africa 103.5% 100.2%
91.1% 92.8%
- -
- -
91.1% 92.8% 92%
range
Actual Original Plan
Total Non-Life
*3
C/R
Life
Pure
Total
2023
2024
Projection
2026
North America
*1
359.9 371.0
PHLY 88.7 88.0
DFG 174.3 171.0
TMHCC 102.3 112.0
Europe
*2
36.1 40.0
South & Central America 38.5 27.0
Asia & Oceania 30.0 26.0
Middle East & Africa 2.1 2.0
452.2 460.0
- 21.3 - 12.0
Pure 26.8 33.0
436.9 455.0
CAGR c. +5%
Total Non-Life
*3
Actual Original Plan
Business Unit Profits
(billions of JPY)
Life
Total
*4
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(Ref.) Inflation Resilience
*1: Loss reserves split by inflation type for TMHD’s U.S. companies using December 31, 2023, reserves
*2: It means Jury awards exceed USD10mn *3: Self Insured Retention
TMHD
U.S. Business
Cost of Goods and Services Medical & Wages Social Inflation
Financial impact to key lines (e.g., Excess WC, Medical Stop Loss, Liability lines) from
medical costs and wage increases are also mitigated by rate increases greater than
loss costs and/or increasing SIR
*3
levels
Resilience against social inflation has been enhanced with forward-looking initiatives
Given that the sum of U.S. Nuclear Verdicts*
2
in 2022 exceeded its 2019（pre-COVID-
19) level, we carefully keep monitoring social inflation trends
Rate increases greater than loss costs
Relatively resilient structure against economic COGS inflation due to our business
focus on specialty insurance (i.e., less property and auto physical damage insurance)
Economic COGS inflation risk continues to stay lower as indices (e.g., flexible CPI and
construction costs) continue to remain down from their highs in 2021
Economic Inflation (Medical/Wages)
Social Inflation
Economic Inflation (COGS)
Our Measurements
Inflation Type by
Loss Reserve Split
*1
Medical = 40%
Wages = 15%
c. 30％
c. 15％
c. 55％
Resilience against economic / social inflation is enhanced
Continue to take pro-active measures to manage rapid environment change
70
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(Ref.) Inflation Resilience (Social Inflation)
Approx. 60% reduction
*3
in number of litigation claims
compared to pre-COVID as a result of early claim settlement
initiatives
Over 90% of all in-force policies
*2
have limits ≤ $5M
Disciplined underwriting
Continued proactive actions to identify policies with
higher potential risk of performance deterioration, and
review of underwriting details which may lead to lower rates
of new business or higher rates of non-renewed policies
Continued focus on reducing number of high limit policies
which have limits ≥ $10M that are vulnerable to litigation
Reduction of litigation
Continued reduction of unprofitable policies
Rate increases continue to be higher than loss cost
trends
Robust portfolio
Reserves in select Liability lines strengthened as early as FY2019
Prior year reserves have developed favorably since 2020
Enhanced reserves
PHLY Business Strength
*1
TMHD International
Business Strength
Ability to avoid impact
Ability to mitigate impact
Ability to prepare for impact
▶
▶
▶
▶
*1: PHLY initiatives that are affected relatively more by social inflation.
*2: Umbrella insurance
*3: Compare to 2020 Q2 when PHLY started its claim settlement initiative.
71
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(Ref.) Inflation Resilience (Medical / Wage Inflation)
Initiatives
Impact
Loss CostPrior Year Loss Reserves
Impact of Wage Inflation︓
Claim amount is calculated based on
wage at time of accident, only some
states require an inflation adjustment,
resulting in less risk of prior year
reserve impact
Impact of Medical Cost Inflation︓
Increasing SIRs
*
result in less risk of
prior year reserve impact
Increase with rising
medical costs and
wages
Short-tail with limited prior year
reserve impact
Continued rate increases, if
deemed necessary, exceeding
expected lost cost trends
Continued process to pro-actively
increase SIRs
*
; which results in an
appropriate control on the impact of
inflation on excess claims
Existing
Business
Medical
stop-loss
(Short-tail)
Excess workers
compensation
(Long-tail)
*: Self Insured Retention
New
Business
72
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Group Asset Management Policy
Investment Portfolio (Mar. 31, 2024)
Maintain long-term, stable income based on ALM aligned with characteristics of insurance liabilities
Securing a stable yield
(Reference) Open Market Rates
<Group income yield>
(％)
*See P.24, 25, 74 for DFG investment performance
73
Domestic bonds
30.3%
Others
3.6%
Assets other than investments
12.0%
Loans
10.1%
(Mainly overseas CRE loan 5.5%)
Foreign securities, etc.
32.4%
(Foreign bonds, etc.: 28.4%, CLO: 4.1%)
Domestic
equities
11.7%
(Mostly business-related
equities)
Investment Assets
JPY26.9tn
TMHD
total
assets:
JPY30.5tn
(Mar. 31, 2024)
AAA 9%
AA 14%
A 59%
BBB 12%
Other 6%
Bond
ratings
(Mar. 31, 2024)
1.5%
1.5% 1.5%
1.4%
1.5%
1.7%
1.8%
4.6%
4.7%
4.8%
4.2%
4.1%
4.6%
6.0%
2.3%
2.4%
2.4%
2.3%
2.4%
2.8%
3.6%
2017 2018 2019 2020 2021 2022 2023
Japan International Group
JGB 10-yr
-1.0
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-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
DFG Investment Track Record
DFG investment performance (investment income + realized gains / losses) remained positive during the
collapse of Lehman Brothers
DFG
<Investment Return
*1
and Portfolio Change>
*1: Calculated as “(Income + gains / losses from sales + impairment) / AUM” *2: Average for US non-life insurance companies (market capital of $20bn or more) (Source): S&P Capital IQ, Factset
Municipal bonds
22.7%
Loans
41.9%
Corporate
bonds
8.3%
Securitization
products
20.5%
Other
6.6%
<2023>
Present
Municipal bonds
33.3%
Loans
0.9%
Corporate
bonds
23.8%
Securitization
products
29.8%
Other
12.1%
<2012>
Immediately
after
acquisition
Municipal bonds
18.3%
Loans
3.6%
Corporate
bonds
30.2%
Securitization
products
21.4%
Other
26.5%
<2007>
Before GFC
Market
*2
74
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CRE Loan Update
DFG has successfully increased returns in CRE Loan by demonstrating strong expertise in making selective
investments
Booked 3% CECL following a detailed review of individual accounts in FY2023, with no significant dollar
deterioration observed thereafter
Features of CRE Loan Investments
Market Concerns Limited impact to our portfolio
Office
Risk of increasing losses
due to a further decline
in property demand and
prices, driven by the
widespread working
from home
Accumulated CECL with a
detailed review of individual
accounts, with no significant
changes observed thereafter
Limited appetite in new
investments due to elevated risk
in the sector
Multi
family
Risk of increasing losses
due to rising vacancy
rates, driven by
oversupply in several
states
*1
Exposure to relevant states is
limited
Make selective investments
based on property-level supply-
demand balance, to ensure
stable returns
Track record
（M$）
Current Situation of Each Sector
*1: TX・TN・NC・FL etc.
*2: Calculated based on the results released by the Bank of America, Wells Fargo,
PNC and U.S. Bancorp
0
7,000
14,000
0
500
1000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
<Total return (including assets managed by DFG for GCs)>
Primarily focused on properties under construction or renovation, which
require specialized abilities/experience to identify superior business
models *We understand that other players (banks, life insurers, etc.) mainly target properties in
operation.
As a sole lender in most cases, DFG is able to independently conduct
workouts and/or execute foreclosure flexibly based on its own
assessment for poor-performing properties.
<Investment return* comparison with peers>
*Income – (impairment loss + CECL)
Income + gain/loss on sale + impairment loss + CECL (left axis)
Average AUM balance (Reference/right axis)
0%
2%
4%
6%
8%
19/12末 20/12末 21/12末 22/12末 23/12末
DFG ⽶銀平均
US bank average
DFG
*2
2019 2020 2021 2022 2023
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Ⅵ. Reference
76
Progress in Initiatives 1: Disaster Prevention and Mitigation Area
Develop and gradually start offering solutions in pre- and post-incident areas through use of data and
technologies accumulated through insurance business and co-creation with partners including the disaster
prevention consortium CORE
Resilient Information Distribution Service (Launched in Jul. 2023)
Distribution of various weather and disaster information (rain, mudslide,
earthquake, snow, hail, etc.)
Send alerts to notify heightened risks for registered location
Examples of actual solutions and initiatives
Pre-incident disaster prevention
In addition to the risk assessment
services acquired through insurance
business, offer pre-incident risk
solutions as a package
Post-disaster prevention/disaster
risk reduction
Go beyond restoration to original
condition with insurance payout and
promote disaster prevention solutions
again using customer contact after the
incident
Risk Information Platform
Collect and accumulate disaster
related data and our insurance data
Realize profit from data distribution
and enhance our solutions using data
1
2
3
Main business area
Supply Chain Risk Visualization (Launched in Jan. 2024)
Supply chain risk management system that offers risk visualization, emergency /
ordinary times simulation, recovery planning to build a resilient supply chain
(collaboration with Fujitsu)
Liquefaction Damage Mitigation Service (Launched in May 2024)
Consulting service that proposes optimal investigation and construction methods
that lead to quick restoration and recurrence prevention for businesses that
experienced liquefaction damage
Earthquake Resistance and Base Isolation Design Service
(Launched in May 2024)
Consulting service that assess and diagnose ground and building earthquake
resistance and propose foundation enhancement and earthquake resistance / base
isolation design according to the level of risk
Risk Information Platform (Launched in Apr. 2023)
Use / provide disaster related data (Nat Cats, weather, satellite images, etc.) and
insurance payout data
Consignment of four government (Ministry of Land, Infrastructure, Transport and
Tourism, Cabinet Office, etc.) and one private projects
Countermeasure Package (Launched in May 2024)
Established a total of 35 services in cooperation with external partners. Solutions
including risk assessment and pre-incident measures are provided in a package
against multiple perils including earthquakes, water disasters, and mudslides
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77
Progress in Initiatives 2: Mobility Area
Leverage accident data and analysis expertise to develop and gradually start offering solutions that
contribute to reducing risks and costs related to mobility and distribution, and to introduction of
autonomous driving, etc.
Main business area Examples of actual solutions and initiatives
Road Risk Visualization / Traffic Accident Reduction Support
(Launched in Apr. 2023)
Support traffic accident reduction initiatives by governments, etc., by developing
risk maps and prospective risk forecasting model using our accident related data
and external data
Fleet Management Service :MIMAMO DRIVE) (Launched in Oct. 2023)
Real time visualization of location information and driving history, etc., using
onboard device and data, improve operational efficiency such as daily and monthly
report preparation and safe driving instructions
Labor Management Services (Scheduled from 2H FY2024)
Assist business improvement for transport industry by supporting labor
management with visualization of driver attendance / operation and detention time
improvement to enhance productivity, etc.
Health Management Services (Scheduled from 2H FY2024)
Assist reduction of health-related accidents and resignation by providing support
for early detection of risk of illness and intervention using AI image diagnosis,
mainly for businesses with high risk sensitivity such as bus companies
Efficiency and advancement for
individual companies
Resolve issues related to mobility /
transport and optimize risk / cost by
introducing digitalized services
1
Industry Standardization and
Optimization
Resolve industry issues difficult to
address by individual companies,
such as relay transportation and joint
distribution
2
Mobility / Transport /
Distribution Platform
Reduce cost of distribution, etc.,
by centralizing data on vehicles,
drivers, cargo, and depots, etc.
Deploy new services leveraging
data
3
Autonomous Driving Vehicle Introduction / Operation Support
Package “Hawk SafEye” (Launched in Jun. 2023)
Packaged support from safe introduction to operation by providing a combination
of “risk assessment,” “remote monitoring / incident response,” and “insurance” for
businesses introducing level 4 autonomous driving
Distribution Matching Platform (From FY2024)
Matching multiple operators to support transit and joint delivery. Support the
evolution of logistics with limited efficiency on a company-by-company basis
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Business
Area
Expansion
Ⅵ. Reference
Promote realization of decarbonized society by acting as an advisor and
accompanying Japanese SMEs with decarbonization issues with
decarbonization management support services
Healthcare Area
78
Progress in Initiatives 3: Healthcare / Decarbonization Area
Established preparatory company to provide solutions in “Healthcare” and “Decarbonization” areas
Decarbonization Area
Established
preparatory company
in Apr. 2023
Established
preparatory company
in Feb. 2024
As social issues such as increase in national cost of medical care and
decrease in working population is becoming more serious in the era of
the 100-year lifespan and extending healthy life expectancy becomes an
urgent issue, plan businesses targeting the healthcare area
Focus on Presymptomatic and Preventive Areas
Point 1
Point 2
Build an Ecosystem
Focus on presymptomatic and preventive areas in light of compatibility
with insurance business and our purpose
Build an ecosystem that improves health starting with health checks. Contribute
to improvement of labor productivity and well-being management at
corporations and organizations
Promote health visualization and healthy behavior to support care for
physical and mental conditions in expectation of extension of retirement age
and work style reforms
Support health of members after retirement, throughout life
Provide health improvement services that match each individual with open
collaboration with medical institutions and health improvement businesses
Create a business leveraging accumulated health data to provide new
value to society while maintaining high capital efficiency and profitability
Point 3
Use Data
Future initiatives Future initiatives
Decarbonization concierge service
Case 1
Collaborate with market holders, etc., to establish a one-stop service for
SMEs to provide the “know, measure, reduce” functions required for
corporate decarbonization
[Know] Provide free expert consultation service
[Measure] Provide CO2 emissions visualization and planning report
[Reduce] Introduce optimal solutions vendor that leads to energy
saving and cost reduction
Renewable energy supply service
Case 2
Boost introduction of renewable energy by customers with various
electricity plan proposals that combine renewable energy (including
carbon offsets)
<Expected Services>
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ESG
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Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Business
Area
Expansion
Ⅵ. Reference
Collaboration with bolttech
Created a new process for purchasing
insurance using the bolttech platform used
in 30 countries. Launched in North America,
Singapore, and Thailand
79
Progress of Initiatives 4:
Deploy Embedded Insurance, etc. (Evolution of insurance business)
Deploy new insurance products using Embedded Insurance
*1
in partner companies’ services and various data
on platforms
Capture expected growth markets by accelerating creation of successful cases in various industries
Launched in
Oct. 2023
Platform for individual delivery service providers
Launched a platform providing insurance and various services
incorporated in a tool used by individual delivery service providers
Launched in May 2023
Insurance sales on real estate platform
Providing embedded fire insurance on the online real estate investment
service brand “RENOSY” by GA Technologies
Launched in Jan. 2024
Mobile device coverage (overseas case)
Collaborated with bolttech to embed coverage for mobile devices in
online travel insurance application process for World Trips Travel
Insurance*
2
in North America
Expected market size and enhancement of
capabilities
Enhance capabilities
Estimated Market Size
Collaboration with Finatext
Created a new fully digitalized process for
purchasing insurance using SaaS-type
system provided by Finatext. Promoting
collaboration with multiple platformers
Japanese embedded insurance*
1
market is expected to
grow and reach over JPY100.0bn by 2030
Deploy embedded insurance targeting mega platformers
such as telecoms, payments, EC, and financial services
companies that have created massive economic zones and
businesses that provide online products and services
compatible with insurance
Estimated size of
target market
Over
+JPY100.0
bn
(From 2030)
Start trial sale within 2024
Cyber risk insurance for AWS cloud users
Technical tie-up with AWS to enhance assessment of cyber risks in cloud
environment
To provide cyber risk insurance for AWS cloud users leveraging security
related data
Launched in Jan. 2024
Started offering “DOCOMO’s auto insurance”
Launched “Docomo’s Auto Insurance” as a white label product which is a
simplified version of “&e” by E. Design Insurance Sell widely in Docomo’s
economic zone including on “d-Barai” payment app
Examples of actual results
Utilization of Tokio Marine X
Established digital small-amount short-term
insurance company that can flexibly provide
optimal products for embedded insurance.
Scheduled to start sale of new products to
multiple businesses in FY2024
*1: Bundling and delivering of insurance coverage while a consumer is purchasing a product
or service, bringing the coverage directly to the consumer at the point of sale
*2: TMHCC group company specialized in travel insurance
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ESG
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Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Ⅵ. Reference
ESR as of Mar. 31, 2024 stood at 140% (or 135% after share buyback), mainly reflecting profit contributions
in 2H, stock price increases, shareholder return and execution of growth strategies
Disciplined capital policy (ESR)
134%
141%
141%
138%
140%
146%
139%
139%
142%
March. 31, 2024
Stock price: Sharply accelerate sales of business-related equities
Interest rate: Control the impact of interest-rate fluctuations through ALM
FX: Limited impact on ESR
Credit: Allow risk-taking within the risk limit
<Reference> Credit spread of US corporate bonds
*4
(+2pt)
(-2pt)
(+1pt)
(-1pt)
(-1pt)
(+1pt)
(+6pt)
(-6pt)
0.5%
1.0%
1.5%
2.0%
2023/6/30 2023/9/30 2023/12/31 2024/3/31
Tightening (-0.24pt)
Tightening (-0.31pt)
(4Q settlement overseas) (4Q settlement in Japan)
Factors changing net asset value
Factors changing risk
Stock price increases
Increase in AUM, etc
JPY31,857
JPY40,369
1.62% 1.73%
(Reference)
Before deducting
restricted capital
1.21% 0.90%
180% 181%
*2
リスク
3.7
兆円
実質
純資産
4.9
兆円
リスク
X.X
兆円
実質
純資産
X.X
兆円
Stock price increases
Contribution of 2H adjusted
net income
Credit spread tightening
Shareholder return, etc
Sep. 2023 Mar. 2024
Risk
JPY
3.7tn
Net
asset
value
JPY
4.9tn
Risk
JPY
4.3tn
Net
asset
value
JPY
6.0tn
140%
*2
133%
+30%
-30%
+50bp
-50bp
10%
appreciation
10%
depreciation
-50bp
+50bp
Credit
spread
*3
Stock price
Interest rate
FX rate
Of ±6pt, sensitivity
to overseas period
difference is ±3pt
*1: Economic Solvency Ratio (calculated with a model based on 99.95% VaR (equivalent to AA credit rating))
Net asset value of overseas subsidiaries shows the balance as of three months earlier (June 30, 2023 and Dec. 31, 2023)
*2: 135% after a JPY200.0bn share buy-back (176% before deducting restricted capital)
*3: Due to different consolidated accounting periods adopted by overseas subsidiaries (refer to *1), the period of credit spread fluctuations reflected on ESR differ
*4: Source Bloomberg
Nikkei Stock
Average
30Y JPY Interest
rate
Credit spread
ESR
*1
ESR Sensitivity (based on parallel shift)
80
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ESG
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Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Ⅵ. Reference
Achieve Further Growth through Flexible Capital Strategy
3%
14%
28%
25%
TMHD Peer 1 Peer 2 Peer 3
Use hybrid capital to realize further growth strategies including M&A
Increase ROE on a long-term basis by maintaining appropriate capital and avoiding dilution
Ratio of hybrids in ESR capital (net asset value)
*
Capital equity
(Shareholders' equity)
Hybrid capital
(Liability with a capital nature)
Execution of disciplined and
strategic M&A
Higher ROE
-Capture growth
-Geographical
and business
diversification
-Better capital
efficiency
Use equity capital
Use hybrid capital
(Ref.) Summary of the hybrid capital
related to the acquisition of Pure Group
Acquired in Mar. 2008
Acquired in Dec. 2008
Acquired in May 2012
Acquired in Oct. 2015
Acquired in Feb. 2020
(using hybrid capital)
Further growth investment
*: As of end-Mar. 2024 for TMHD, and as of end-December 2023 for peers (Allianz, AXA, and Zurich)
Issue amount: JPY200.0bn
Currency: JPY
Coupon: 0.96% per annum (fixed until Dec. 24, 2029)
Duration: 60 years
(Early redemption permissible from Dec. 24, 2029)
81
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Japan P&C
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Ⅵ. Reference
Materiality
Material issues that we should address (Materiality) were reviewed in conjunction with the establishment of
the new MTP to reflect the latest social circumstances and stakeholder expectations
①Take climate action
②Improve disaster resilience
③Support people’s healthy and
enriching lives
④Value people and
promote diversity and inclusion
⑤Provide innovative solutions
⑥Protect the natural environment
⑦Provide opportunities for
future generations
⑧Open governance with integrity
•Achieve carbon neutrality by 2050 (including insurance underwriting and investment portfolio)
•Contribute to the transition through conducting engagement with our customers and investees and through the
provision of GX-related insurance and solutions
•Enhance response to natural disasters (“development and provision of products and services” and “streamlining
business processes” that enable prompt claim payment in the event of a major disaster)
•Provide disaster risk management services in prevention and recovery phases (assessment, preparedness, evacuation,
recovery and reconstruction)
•Develop and provide new healthcare products and services (for prevention and pre-symptomatic state),
adapt to the needs of a longevity society for savings type asset-building solutions
•Solve social problems through supporting SMEs
•Implement HR strategies to strengthen human capital to realize business strategy
•Ensure diversity and foster a culture where diversity thrives
•Promote human rights due diligence in insurance underwriting and investment, value chain, and our own company
operations
•Expand value-added service provision in both the insurance business and the solutions business (disaster prevention
and mitigation, mobility, decarbonization) by leveraging digital technology and data
•Contribute to “nature positive” society by 2030
•Prevention of global warming and conservation of biodiversity and wetlands through mangrove planting,
restoration of eelgrass beds, and other activities to protect the sea
•Support and provide opportunities for future generations through various educational programs
•Enhance management by reflecting suggestions from future generations
•Enhance operational efficiency and strengthen internal controls in all value chains
•Strengthen ERM at all group companies, including overseas companies
•Disclose information in a timely manner with high transparency
What Tokio Marine Group does
New Materiality
82
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83
Examples of Recent Contributions to Resolution of Societal Challenges
Since our founding, we realized both “contribution to sustainable society” and “our company’s sustainable
growth” by solving of societal challenges. These initiatives are accelerating around the world
Expansion of service for prevention of
accidents such as fire, water leakage, and
freezing due to winter storms by distributing
temperature and humidity sensors at no cost
U.S.: PHLY
Expand insurance business that supports
the transition to a decarbonized society led
by GCube, specializing in underwriting
renewable energy business, and TMNF
Global
FY2020
FY2023
JPY25.0bn JPY37.0bn
Europe: TMK
Offering warranty insurance for
battery storage system and used
EV that leads to decarbonization
and product waste reduction
Offering a set of fire insurance and
fire alarm and funeral cost / family
cover insurance at an affordable
price to low-income households
Expansion to five business areas with Resilience added in FY2024
Japan: TMNF
Initiatives for resolution of societal challenges made progress in each area
Expansion to five business areas adding “Resilience” from FY2024
Number of units
provided up to FY2023
29,800 units
GX Health care SME Cyber Resilience
Latest 3 year
top-line
increase
*
-
Africa: Hollard
NEW
U.S.: TMHCC
Provide specialty insurance supporting SMEs
Highly rated by the U.S. Small Business
Administration (SBA)
No.1
for two consecutive years
SBA Surety Bond Program
*: Total increase in net premiums written vs FY2020 during the previous MTP period (FY2021-FY2023) (estimate)
+JPY9.0bn +JPY22.0bn +JPY35.0bn +JPY8.0bn
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ESG
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national
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Capital
Policy
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Japan P&C
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Ⅵ. Reference
“Win-Win” Situation with Stakeholders
Provide balanced values to all stakeholders by being true to our purpose
World’s top-tier TSR
*1
through profit
growth (Past decade)
Shareholders
Highly motivated employee group
Employees
Appreciation for support “in times of
need” around the world
Customers
Contribution to sustainable society through
business activities
Achieved carbon neutrality
*5
for 10 consecutive years
Society
Future generations
647
Peer2
307
Peer3
321
Peer4
321
Peer1
361
2014
Apr.
2024
End of
Mar.
0
100
200
2013 2022
CO2 emissions CO2 absorption/fixation/reduction
88.5%
9.7%
1.8%
Satisfied Neither Not Satisfied
32
39
67
TMNF customer satisfaction
(2022)
Net Promoter Score
*4
Group Attachment
*2
Project Request
*3
participants
(started in Sep. 2020)
Home
Insurance
Average
Auto
Insurance
Average
PHLY
*4: (Source) NICE Satmetrix 2023
Consumer Net Promoter Benchmark Study
2023 score
4.39
Over
1,300
people in total
(end of Mar. 2024)
Responsibility to nurture children’s
strength to live
Green lessons:
C. 60 thou. participants
Disaster prevention lessons:
C. 95 thou. participants
(Total at end of Mar. 2024)
*1: Total Shareholder Return (TSR): Capital return after reinvesting
dividends. Stock price indexed at 100 as of April 1, 2014.
Peer: Allianz, AXA, Chubb, Zurich
*2: Score of 1-5 (total for domestic GC and TMHD), *3: A system for voluntary resolution of issues across business units
*5: Related to our business activities (Scopes 1+2+3 (Categories 1,3,5,6))
(Thou. ton)
84
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Inter-
national
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Japan P&C
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Ⅵ. Reference
Response to Climate Change
気候変動は、地球のサステナビリティにとって重要な社会課題。当社はこの課題に真正面から取り組む
「保険引受・投融資を通じた脱炭素エンゲージメント」「ソリューション事業の強化」等を実⾏し、社会的価値と
経済的価値を同時に高めていく
Climate change is one of the most important social issues across the planet. We will face up to this difficult
issue
Simultaneously enhance social and economic value by carrying out “decarbonization engagement through
underwriting / investment / loan” and “strengthening solution business,” etc.
• Avoid excessive dependence on
reinsurance and globally diversify risks
• Flexible rate revision and shorter
insurance period
• Secure new profit source with disaster
prevention and mitigation, and early
restoration businesses
Strengthen solutions business
(See P.76)
• Engagement on themes of transition of
policyholders / investees and environment
(established interim target on engagement in
Sep. 2023, revised underwriting / investment /
financing policies in Mar. 2024)
Transition / Engagement
Capture
Opportunities
Intensified Nat Cats
Growing awareness for Nat Cats
Realizing carbon neutrality
Risks
Opportunities
Mitigate
Risks
Mitigate
Capture
• Increase underwriting in renewable
energy area such as solar, wind,
biomass, geothermal, and hydro power,
where growth is expected
Capture the renewable energy
market
Capture
Opportunities
• Tie-up with MUFG Bank to provide
support service for disclosure of climate
change risks and opportunities based on
TCFD
Capture climate change
related needs
Capture
Opportunities
Global risk diversification
(see P.30)
Secure profitability of fire
insurance (see P.14)
Mitigate
Risks
Mitigate
Risks
85
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86
Initiatives for Promoting DE&I
Provide necessary opportunities and support to people in need (Equity) and further strengthen initiatives on
gender, disability, LGBTQ, etc.
Enhance networking among global talent in the Group to further utilize various expertise
DE&I initiatives policy
Initiatives to close the gender gap
Communication Infrastructure development
Global talent development /
networking
<Two key initiatives on DE&I>
Representation (provide necessary support to people in need and
promote diversity)
Utilizing all of our talent (increase opportunities for participation and
utilize expertise of global talent)
Three pillars for enhancing promotion
Consistent development /
support of global talent
Global Group-based
knowledge utilization
(Best practice)
DE&I
Create an inclusive work
environment
Engagement,
transparency, allyship
<Values realized by DE&I>
2023 (Results)
Target
Female directors /
audit and
supervisory board
members
*2
Female managers
*3
20.0%
33.3%
(TMNF24.8％)
30%
by FY2027
FY2025
30% of
TMNF
25.0%
35.6%
(TMNF27.8％)
Susan Rivera
Managing Executive
Officer
Co-CRSO
Caryn Angelson
Executive Officer
CDIO
<Women in the management team>
Appointment of the first female inside director
*1
Female global leaders from Japan and overseas hold key Group
positions
<KPI to close the gender gap>
Next generation female leader pool is steadily expanding in Japan
and overseas
Keiko Fujita
Managing Director
*1
Mika Nabeshima
Executive Officer
CSUO
2024 (Results)
*1: To be appointed as of the day of the Ordinary General Meeting of Shareholders scheduled on June 24, 2024
*2: Ratio of female directors and audit and supervisory board members in Tokio Marine HD
*3: Ratio of female managers in major consolidated subsidiaries in Japan and overseas. TMNF has established new positions
with the HR system revision in April 2024. FY2023 results have been adjusted to reflect the revision to enable
comparison between the years. Target is for TMNF alone, with the target year revised from FY2030 to FY2025
Copyright (c) 2024 Tokio Marine Holdings, Inc.
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Ⅵ. Reference
87
Governance Structure
Utilize “external perspectives” for review of
appropriateness including for our business process
and culture
Confirmation of formulation and implementation
status of appropriate preventative measures for
serious incidents
Deliberate on the appointment and dismissal of
CEO, Directors, Audit & Supervisory Board
Members, Executive Officers, etc. and report to the
Board of Directors
Deliberate on a succession plan for CEO and
oversee the development of successor candidates
Held four times in FY2023
Deliberate on policies concerning evaluation of
performance of Directors, Executive Officers, etc.,
compensation system and level of compensation
for Directors and Executive Officers, and
determination of their compensation, and report to
the Board of Directors
Held three times in FY2023
Hybrid organizational design with a Board of Directors that makes high-quality decisions by utilizing the
knowledge and expertise of outside directors, and a Nomination Committee and a Compensation
Committee that ensure transparency in the decision-making process
Group Audit Committee
*2
was established to enhance the Group’s internal control and governance of Group
companies
Board of Directors
Audit and Supervisory Board
Nomination Committee Compensation Committee
Role
Structure
Make decisions on important matters relating to execution of the Group’s
business and supervise the performance of individual Directors
Audit the performance of Directors
Ratio of Independent Directors 47% (7 out of 15)
Ratio of Female Directors 20% (3 out of 15)
Ratio of outside members 60% (3 out of 5)
Ratio of female members 40% (2 out of 5)
Role
Structure
Ratio of outside members 60% (3 out of 5)
Chairperson is selected from outside officers
Ratio of outside members 80% (4 out of 5)
Chairperson is selected from outside officers
High-quality decision-making leveraging diversity
Strengthen internal control /
governance
＜Governance system
*1
>
Give advice from multifaceted perspectives
Group Audit Committee
*2
Ensure transparency
Ratio of outside members 50% (2 out of 4)
Chairperson is selected from outside officers
*1: The system will be planned after voting results in the 2024 Ordinary General Meeting of Shareholders
*2: Established on April 1, 2024
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Ⅵ. Reference
Achieve highly effective governance by incorporating the skills of a diverse range of outside directors in a
well-balanced manner
Skill Matrix of Outside Officers
*: To be reappointed as of the day of the 2024 Ordinary General Meeting of Shareholders
Position
Name Major concurrent post
Skills and experiences
Corporate
management
Finance &
Economy
Accounting
Legal &
Compliance
Environment
Human
resources
Strategy
Governance &
Risk Management
Technology
International
experience
Directors
Takashi Mitachi
（2017-）
Professor, Graduate School of
Management, Kyoto University
● ● ● ● ● ● ●
Nobuhiro Endo
（2019-）
Executive Advisor of NEC
Corporation
● ● ● ● ●
Shinya Katanozaka
（2020-）
Member of the Board, Chairman
of ANA HOLDINGS INC.
● ● ● ● ●
Emi Osono
（2021-）
Professor, School of Business
Administration, Hitotsubashi
University Business School
● ● ● ●
Kosei Shindo
（2023-）
Director, Member of the Board and
Senior Advisor of NIPPON STEEL
CORPORATION
● ● ● ● ● ●
Robert Feldman
（2023-）
Senior Advisor of Morgan
Stanley MUFG Securities Co., Ltd.
● ● ● ● ● ● ●
Haruka Matsuyama
（2023-）
Attorney-at-law
● ● ● ●
Auditors
Akihiro Wani
（2014-）
Attorney-at-law
● ● ● ● ●
Nana Otsuki
（2018-）
Professor, Graduate School of
Management, Nagoya University
of Commerce & Business
● ● ● ● ●
Junko Shimizu
（2023-）
Professor, Faculty of Economics,
Gakushuin University
● ● ● ● ●
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Ⅵ. Reference
Designed a remuneration system linked to business performance and stock price as an incentive for directors
to achieve sustainable growth
Continue to review the remuneration system contributing to the enhancement of corporate value
Executive Compensation
Increase the link between compensation and our stock price to have
Directors share the benefits and risks of stock price movements with
shareholders
Raise Directors’ incentive to improve corporate value over the medium- to
long-term
*4: A system for granting the Company’s shares to Directors and Executive Officers at
a pre-determined time in the future by granting share delivery trust points
Consists of fixed compensation, performance-linked
bonuses, and stock-based compensation
In principle, ratio of performance-linked bonuses and
stock-based compensation increases in conjunction with
the rank of Directors
50
80
30
40
30
40
30
20
20
30
30
Others
Outside Directors
Part-time Directors
President & Group CEO
Chairman of the Board
Fixed Compensation
Performance-linked bonuses
Stock-based compensation
＜Ratio of Compensation＞
<Performance-linked bonuses>
<Stock-based compensation (stock delivery trust
*4
) >
Increase the incentive of Directors to improve performance
Adjusted within a range of 0% to 200% depending on the level
of accomplishment of the individual and company targets
Individual
Target
Set based on the scope of duties
(includes ESG and medium-to long-term strategic
targets
*1
)
*1: Further globalization and enhancement of functions of management,
enhancement of human resources and organizations, etc.
Company
Target
Set based on financial indicators
*2
and non-financial
indicators
*3
*2: Target “adjusted net income” and “adjusted ROE” in MTP.
*3: Indicator to assess initiatives that contribute to earnings from a medium- to
long-term perspective (indicators concerning employee engagement and
sustainability strategy)
Compensation System for Directors
89
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Ⅵ. Reference
Net incurred losses relating to Nat Cats in FY2023 decreased by -JPY8.2bn to JPY167.8bn compared to Feb.
projections (pre-tax)
Annual budgets in the new MTP to be increased by +JPY38.0bn across the Group incorporating the rise in
secondary perils and exposure. The budgets for FY2024 is +JPY225.0bn (pre-tax) factoring in the impact of
the Hyogo hail damage in April (approx. JPY50.0bn)
Natural Catastrophes
Net incurred losses relating to Nat Cats on a business unit profit basis (billions of JPY)
Before-tax
2022
Results
2023
Results
YOY
Change
*2
Japan
*1
100.9 88.7
-12.2
International
62.6 79.1
+16.4
Total
163.6 167.8
+4.2
After-tax
*3
Japan
*1
72.8 63.9 -8.8
International
48.7 60.2 +11.5
Total
121.5 124.2 +2.7
103.0
Major Nat Cats in FY2023 (Nat Cats above a certain scale)
[Japan
*1
] Gross incurred losses
*4
July 2023 Gunma/Tochigi Hail Damage JPY25.4bn
Typhoon No.2(Mawar) JPY10.3bn
Typhoon No.13(Yun-yeung) JPY6.6bn
[International] Net incurred losses
*4
Hawaii wildfires JPY36.1bn
2023 Original
Budgets
New MTP Annual
Budgets
2024 Original
Budgets
86.0 103.0
136.0
68.0 89.0
89.0
154.0 192.0
225.0
62.0 74.0
98.0
53.0 69.0
69.0
107.7 143.0
167.0
(2)-(1)
Change
*2
(3)-(1)
Change
*2
+17.0 +50.0
+21.0 +21.0
+38.0 +71.0
+12.0 +36.0
+16.0 +16.0
+28.0 +52.0
2023
February
Projections
96.0
80.0
176.0
69.2
61.0
130.2
Trend in Nat Cats Budgets (Japan
*1
, billions of JPY)
136.0
76.0
10.0
Wide area Nat Cats
Small Nat Cats
*6
Annual Budgets
in New MTP
2024 Original
Budgets
2023 Original
Budgets
Increase factoring in Hyogo
hail damage (c. 50.0
*5
)
+33.0
Increase from
secondary perils
+17.0
(1) (2) (3)
-8.2bn vs. Feb. projections (176.0bn)
*1: Combined total for TMNF, Nisshin Fire, and E.design *2: Note that “+” means a negative for profits, while “-” means a positive for profits
*3: After-tax figures are estimates *4: Before-tax basis *5: Current rough estimates/provisional figures
*6: From FY2024, “Small Nat Cats" will also be included in "Nat Cats budgets," which was not the case in the fiscal records up to FY2023
Re-post from Q4 Conference
Call on May 20, 2024
90
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Ⅵ. Reference
Impact of FX Rate Change on the Group’s Financial Results
End of Mar. 2024
Estimated impact of the depreciation of JPY to USD by 1 yen
*1
Reference: applied FX rate (USD/JPY)
Overseas Subsidiaries
TMNF
JPY151.41
FY2024
Projections
FY2024
Projections
End of Dec. 2024
End of Mar. 2025
FY2024
Results
FY2024
Results
Impact on net income on financial accounting basis
*2
Impact on adjusted net income
*2
*1: Assumes the FX rate of each currency changes by the same margin as USD
*2: Estimated impact on the FY2024 projections on an after-tax basis
circa
+¥2.4bn
Difference from
projections
Difference from projections
circa
-¥2.5bn
circa
-¥0.1bn
Total:
circa
+¥3.0bn
circa
-¥2.5bn
Total:
circa
+¥0.5bn
Change in reserves for foreign currency
denominated loss reserves and FX
derivatives income, etc. at TMNF:
Increase in overseas subsidiaries profit:
Increase in profit from local subsidiaries
Increase in amortization of intangible fixed assets
and goodwill
Change in reserves for foreign currency
denominated loss reserves and FX
derivatives income, etc. at TMNF:
Increase in overseas subsidiaries profit:
(Of the factors stated in the left, amortization of
intangible fixed assets and goodwill has no impact
as it is added back to adjusted net income)
Re-post from Q4 Conference
Call on May 20, 2024
91
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Ⅵ. Reference
Tokio Marine Holdings Key Statistics
*1: From FY2015: The figure is “Net income attributable to owners of the parent”
*2: Based on the October 2022 stock split (into three shares). Prior to FY2022, post-split recalculation
*3: Figures prior to FY2021 are based on previous definition
*4: FY2014: The figures is "Adjusted earnings"
*5: Total for TMNF, NF, and E.design, etc.
*6: FY2014: TEV (Traditional Embedded Value) basis, from FY2015 to FY2020: MCEV (Market Consistent Embedded Value) basis,
from FY2021: J-GAAP
*7: All figures exclude the number of treasury shares held from the total number of the shares issued
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Net income (billions of yen)
*1
247.4 254.5 273.8 284.1 274.5 259.7 161.8 420.4 376.4 695.8
Shareholders' equity after tax
(billions of yen)
3,578.7 3,484.7 3,542.1 3,805.1 3,574.2 3,372.1 3,664.0 4,020.6 3,631.0 5,176.6
EPS (yen)
*2
107 112 121 127 127 123 77 204 187 351
BPS (yen)
*2
1,580 1,539 1,574 1,748 1,686 1,610 1,761 1,977 1,823 2,623
ROE
7.9% 7.2% 7.8% 7.7% 7.4% 7.5% 4.6% 10.9% 9.8% 15.8%
PBR
0.96 0.82 0.99 0.90 1.06 1.02 0.99 1.20 1.39 1.79
Adjusted net income (billions of yen)
*3
323.3 351.9 406.7 341.4 280.9 286.7 336.1 578.3 444.0 711.6
Adjusted net assets (billions of yen)
*3
4,103.4 3,599.3 3,812.4 4,086.4 3,763.1 3,240.9 3,692.4 4,224.0 3,799.1 5,381.4
Adjusted EPS (yen)
*2
141 155 179 153 130 136 160 281 221 359
Adjusted BPS (yen)
*2
1,812 1,589 1,694 1,877 1,775 1,547 1,775 2,077 1,908 2,727
Adjusted ROE
8.9% 9.1% 11.0% 8.6% 7.2% 8.2% 9.7% 14.4% 11.1% 15.5%
Adjusted PBR
0.83 0.80 0.92 0.84 1.01 1.07 0.99 1.14 1.33 1.72
Japan P&C business
*5
122.5 126.0 167.6 144.3 18.9 25.9 127.9 216.7 107.9 99.1
Japan Life business
*6
139.8 -188.1 373.5 98.4 -158.6 -70.3 205.2 51.1 36.4 41.1
International business
145.5 131.8 169.5 144.1 176.2 179.5 101.1 252.3 218.6 436.9
Financial and general businesses
4.0 7.3 6.6 7.2 6.8 5.3 7.3 6.9 7.0 6.5
112.0 122.0 117.0 108.0 107.0 107.0 106.0 117.0 130.0 219.0
2015/3E 2016/3E 2017/3E 2018/3E 2019/3E 2020/3E 2021/3E 2022/3E 2023/3E 2024/3E
2,263,796 2,264,053 2,250,335 2,176,299 2,119,670 2,093,611 2,079,819 2,033,347 1,991,103 1,972,833
3,438.0 2,878.6 3,536.2 3,541.9 3,807.0 3,474.9 3,672.3 4,847.0 5,100.4 9,302.5
1,513 1,267 1,565 1,578 1,787 1,650 1,755 2,376 2,547 4,703
46.5% - 16.3% 23.6% 0.8% 13.2% - 7.7% 6.4% 35.4% 7.2% 84.6%
1,543.11 1,347.20 1,512.60 1,716.30 1,591.64 1,403.04 1,954.00 1,946.40 2,003.50 2,768.62
28.3% - 12.7% 12.3% 13.5% - 7.3% - 11.8% 39.3% - 0.4% 2.9% 38.2%
Financial
accounting
basis
KPI
Business Unit
Profits
*3,4
(billions of yen)
Sales of business-related equity holdings
(billons of yen)
Market capitalization (billions of yen)
Share price (yen)
*2
Percentage change
(Ref.) TOPIX
Percentage change
Adjusted number of issued and outstanding shares
*2.7
(thousands of shares)
92
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Ⅵ. Reference
Return to Shareholders
*1: Total amount approved by the announcement date of financial results of each fiscal year (excluding FY2024). The figures include one-time dividends of c. JPY50.0bn in FY2018 and c. JPY25.0bn in FY2019 and FY2020, respectively.
*2: Figures prior to FY2021 are based on previous definition. Figures based on the current definition are, FY2019: JPY309.9bn and FY2020: JPY399.6bn.
*3: Figures for FY2021 and thereafter are calculated by applying current definitions to past results
*4: Payout ratio to average adjusted net income
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
FY2024
Projections
37 yen 47 yen 53 yen 60 yen 63 yen 67 yen 85 yen 100 yen 123 yen 159 yen
83.0bn yen 105.3bn yen 117.6bn yen 128.0bn yen 133.0bn yen 139.1bn yen 173.9bn yen 200.2bn yen 243.0bn yen 313.9bn yen
- 50.0bn yen 150.0bn yen 125.0bn yen 50.0bn yen 50.0bn yen 100.0bn yen 100.0bn yen 120.0bn yen 200.0bn yen
83.0bn yen 155.3bn yen 267.6bn yen 253.0bn yen 183.0bn yen 189.1bn yen 273.9bn yen 300.2bn yen 363.0bn yen 513.9bn yen
351.9bn yen 406.7bn yen 341.4bn yen 280.9bn yen 286.7bn yen 336.1bn yen 578.3bn yen 444.0bn yen 711.6bn yen 1,000.0bn yen
220.0bn yen 295.0bn yen 330.0bn yen 340.0bn yen 330.0bn yen 330.0bn yen 375.0bn yen 400.0bn yen 485.0bn yen 625.0bn yen
38% 36% 36% 38% 40% 42% 46% 50% 50% 50%
＜
Ref. : Financial accounting basis
＞
254.5bn yen 273.8bn yen 284.1bn yen 274.5bn yen 259.7bn yen 161.8bn yen 420.4bn yen 376.4bn yen 695.8bn yen 870.0bn yen
33% 39% 42% 47% 51% 86% 41% 53% 35% 36%
33% 57% 94% 92% 70% 117% 65% 80% 52% 59%
Average
adjusted net income
*3
Payout ratio
*4
Net income
(Consolidated)
Payout ratio
Total shareholder return ratio
Dividends per share
Dividends total
Capital level adjustment
*1
(share buybacks, etc.)
Total distributions to shareholders
Adjusted net income
*2
93
Copyright (c) 2024 Tokio Marine Holdings, Inc.
ESG
Business Area
Expansion
Group
Inter-
national
Investment
Capital
Policy
Data
Japan P&C
Japan Life
Ⅵ. Reference
Definition of KPIs
Provision for
underwriting result for
the first year
*5,6
Adjusted
Net
Assets
*1
Net assets
(consolidated)
Catastrophe loss
reserves
Contingency
reserves
Price fluctuation
reserves
=
+
+
+
-
Goodwill and other
intangible fixed assets
Adjusted
ROE
Adjusted Net
Income
*1
Adjusted Net
Assets
*1,8
=
÷
Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE
Adjusted
Net
Income
*1
Net Income
(consolidated)
*2
Provision for
catastrophe loss
reserves
*3
Provision for
contingency
reserves
*3
Provision for price
fluctuation
reserves
*3
Gains or losses on sales or
valuation of ALM
*7
bonds and
interest rate swaps
= + + +
-
Amortization of
goodwill and other
intangible fixed assets
Gains or losses on sales or valuation
of fixed assets and business
investment equities
Other extraordinary gains /
losses, valuation
allowances, etc.
+
-
-
*1: Each adjustment is on an after-tax basis.
*2: Net income attributable to owners of the parent in the consolidated financial statements.
*3: In case of reversal, it is subtracted from the equation.
*4: Unearned fire insurance premiums corresponding to large natural catastrophe risk.
*5: Premiums, minus a portion of net incurred losses and business expenses, to be carried forward in preparation for an
insured event in the following year.
*6: Provision for the general underwriting reserves excluding provision for unearned premiums.
*7: ALM: Asset Liability Management. Excluded since it is counter-balance of ALM related liabilities.
*8: Average balance basis.
*9: For the overseas life insurance companies, Business Unit Profits is calculated by using the definition in Other businesses
(For profit, excluding head office expenses, etc.).
Life insurance business
*9
Non-life insurance business
Other businesses
Net income determined in accordance with financial
accounting principles
Business
Unit
Profits
*1
Net Income
Provision for
catastrophe loss
reserves
*3
Provision for
price fluctuation
reserves
*3
Gains or losses on sales or
valuation of ALM
*7
bonds and
interest rate swaps
= + +
-
Gains or losses on sales or
valuation of fixed assets,
business-related equities and
business investment equities
Other extraordinary
gains / losses,
valuation
allowances, etc.
-
-
Business
Unit
Profits
*1
=
Definition of Business Unit Profits
Planned
distribution to
shareholders
Value of life
insurance
policies in-
force
+-
Net Asset
Value
*1
Other
+
Definition of Net Asset Value
Net assets
(consolidated)
Catastrophe
loss reserves
Contingency
reserves
Price
fluctuation
reserves
= + +
+
-
Goodwill and other
intangible fixed
assets
Provision for Nat Cats
underwriting
reserves
*3,4
+
+
Nat Cats underwriting
reserves
*4
+
+
UW reserves related to
underwriting result for
the first year
*5
Net Income
Provision for
contingency
reserves
*3
Provision for
price fluctuation
reserves
*3
Gains or losses on sales or
valuation of ALM
*7
bonds and
interest rate swaps
+ +
-
Gains or losses on sales or
valuation of fixed assets,
business-related equities and
business investment equities
Other extraordinary
gains / losses,
valuation
allowances, etc.
-
-
Provision for Nat Cats
underwriting
reserves
*3,4
+ +
Provision for
underwriting result
for the first year
*5,6
Re-post from Q4 Conference
Call on May 20, 2024
94
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95
Copyright (c) 2024 Tokio Marine Holdings, Inc.
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 available to Tokio Marine
Holdings when the materials were prepared and is subject to a range of inherent risks and uncertainties.
Actual results may vary materially from those estimated, anticipated, expected or projected in the
accompanying materials and no assurances can be given that any such forward looking information will
prove to have been accurate. Investors are cautioned not to place undue reliance on forward looking
statements in these materials. Tokio Marine Holdings undertakes no obligation to update or revise any of
this forward-looking information, whether as a result of new information, recent or future developments,
or otherwise.
These presentation materials do not constitute an offering of securities in any jurisdiction. To the extent
distribution of these presentation materials or the information included herein is restricted by law, persons
receiving these materials must inform themselves of and observe any such restrictions.
For further information...
Investor/Shareholder Relations Group,
Global Communications Dept.
Tokio Marine Holdings, Inc.
URL : www.tokiomarinehd.com/en/inquiry/
