Tokio Marine Holdings Integrated Annual Report 2023

I N T E G R AT E D R E P O R T S U M M A R Y

The Purpose Story of
Tokio Marine GroupCONTENTS

1

p.2(Summary of This Integrated Report)
p.2

Purpose Story

1 Purpose●Message from the CEO

The Group s purpose is to protect

p.34

our customers and society in times of need.

4 Expanding the Possibilities●Growth drivers for the future

Tokio Marine Group has provided safety and security
to society and contributed to its development by utilizing

p.26

the knowledge and experience we have gained

3 Our Competitive Advantage●Global Risk Diversiﬁcation ×
Global Integrated Group Management

over the years in the insurance industry and solving
various societal challenges that change with times.
p.12

We will continuously support our customers and society

2 Building a “Safer World●Three social challenges that we need to addressin times of need, endeavoring to solve societal challenges
as the focus of our business and raising
the Group s corporate value for ever and more,while contributing to creating a safe,
secure, and sustainable future.

p.44

p.44

Financial information

Non-ﬁnancial information
Sustainability booklets

Integrated reports
Investor relations event materials
Sustainability reports

Specialized

During editing, we made ourbest eﬀorts to incorporate
substantial information by
consulting the IIRCʼs“International Integrated
Reporting Framework” andthe Ministry of Economy, Trade and Industryʼs“Guidance for Collaborative Value Creation 2.0,”
as well as by seeking the opinions of investors
and other stakeholders.

●Positioning of This Integrated Report
General●References

Corporate governance reports
Financial results‒related materials(annual securities reports, etc.)

Corporate website

The materials listed above can be found on our website. URL: https://www.tokiomarinehd.com/en/

This report is for disclosure(explanatory material
regarding the status ofoperations and assets) andwas prepared based on the
Insurance Business Act(Article 271-25) and theOrdinance for Enforcementof the Insurance BusinessAct (Article 210-10-2).

2

Capital Policy and the
Mid-Term Business Plan

Sustainability
Management●CSUO Message●Review of the Mid-Term Business
Plan to Date

●Sustainability Strategy Promotion
Structure●Current Mid-Term Business Plan
2023

●Eight Material Issues (Materiality)
and Four Priority Issues Speciﬁed●Beyond the Mid-Term Business
Plan●Information Disclosure Following
TCFD Recommendations

p.98

Governance

p.128

p.86

Strengthening Human andIntellectual Capital●Human Capital Management(Human Resources Strategy):
CHRO Message●Intellectual Capital Strategy:
CDO Message

Financial and Non-Financial Data

●Directors and Audit & Supervisory
Board Members●Financial/Non-Financial Highlights●ESG Evaluations and External Awards●Corporate Governance Dialogue●Global Insurance Market●Potential of the Japanese non-life
insurance market●Initiatives for Environmental, Social,and Governance (ESG) and SDGs
Measures●Progress of Current Mid-term
Business Plan by Business Unit

●Financial Data
●Corporate Data

●Toward Adjusted ROE Growth●On the publication of Our Integrated
Annual Report 2023

●Abbreviations Used in This Material

This report contains information on forecasts, targets, and othermatters that are not based on historical fact. These forward-looking
statements include a certain degree of risk and uncertainty, and,accordingly, actual results and performance could diﬀer materiallyfrom the information provided in this report.

TMNF Tokio Marine & Nichido Fire Insurance Co., Ltd.

DFG

NF

TMHCC Tokio Marine HCC●Corporate Governance

TMNL Tokio Marine & Nichido Life Insurance Co., Ltd.

TMK

Tokio Marine Kiln

●Internal Control System

PHLY Philadelphia Insurance Companies

TMSR

Tokio Marine Seguradora

Nisshin Fire & Marine Insurance Co., Ltd.

p.60

●CFO Message●Forward-Looking Statements

Delphi Financial Group

Strategy and Business Platform
Supporting Our Purpose Story●Participation in International Initiatives

001

1

Purpose Story 2023 | Purpose | Message from the CEO: Our Purpose

To Protect Our Customers and Society
in Times of NeedBusiness Environment
Awareness

Since Tokio Marineʼs founding in 1879, our unwavering
purpose has remained: “To protect customers andsociety in times of need.”
Our company found its beginnings in marine insurance
144 years ago. Since then, Japan has experienced manydifficult periods and dramatic societal changes, suchas the Great Kanto Earthquake, defeat in war, and theadvance of motorization. Yet with our purpose, “Toprotect customers and society in times of need,” as our
foundation throughout our history, we have confronted
societal challenges through our core insurance businessand strived to provide solutions. It could be said that
all of our business activities contribute to addressing
societal challenges. Our employees work under thepremise of “The more Tokio Marine grows, the better forsociety.” As a result, we are confident in our continued
ability to achieve sustained profit, while providing value
to all our stakeholders, including customers, society,shareholders, and our employees.
In 2021, we clearly defined the next generations as anaddition to the above stakeholders, based on the strong
belief that we have a responsibility to pass on our sharednatural environment to the next generation in asustainable state. Of course, it is not an easy task tocontinuously provide value to all stakeholders. But the
optimal solution is always there, waiting to be found.
With this conviction, and our unwavering purpose inmind, we will continue working towards a sustainable
society while addressing ever-more complex societal
challenges. As a result, we will achieve growth for theCompany and continue to provide value to all our
stakeholders.

Today, 144 years since our founding, we have grown into a global
company, and more than half of Group profits originate fromoverseas operations. For us, the issues occurring today̶
wherever in the world̶are not simply someone elseʼs problems.
Natural catastrophes are intensifying alongside climatechange. The war in Ukraine has been prolonged, further
rupturing our world. Under the situation, the global supply
chain continues to be reconfigured and economic security isreassessed, all at tremendous speeds. Against this backdrop,
inflation is rising rapidly around the globe. The bankruptcy ofsome U.S. financial institutions demonstrates the tighteningof monetary policy, and there is increased risk of an economic
downturn. VUCA is deepening across all fields, including
political, economic, and social, making it harder to outlook the
future in a few weeksʼ time , let alone months.
Within this business environment, and in contrast to fiscal
2021, when we posted record profits, fiscal 2022 was affectedby temporary factors such as natural catastrophes including
typhoons and hurricanes, and COVID-19. These had a negative
impact of 173.1 billion yen, a 23% year-on-year drop, and wefinished at 444 billion yen. However, insurance exists to
support customers in times of need. To this end, we look at
fiscal 2022 as a year when we faced many moments of truth. In
those moments, we demonstrated the value of our existence.
Through these experiences, we believe without a doubt that
we will bounce back even stronger moving forward.
In fact, net premiums written, one of the benchmarks of client
confidence in our business, saw a year-on-year increase of 15%,
rising to 4.4 trillion yen despite the pandemic. Also, our normalizedbase profit, which excludes one-time factors, saw a year-on-yearincrease of 22%, rising to 617.1 billion yen. This past year gives us
confidence that our underlying capabilities are stronger andwill continue to be stronger as we evolve and grow.

1
Purpose Story 2023

Tokio Marine Group
Purpose▶FY2022 Performance
Net Premiums Written

Adjusted Net Proﬁt (normalized basis*)(trillions of JPY)

＋15％

Satoru Komiya

President and Group CEO

002

3.8

4.4

2021

2022

(billions of JPY)

＋22％

505.4
2021

617.1
2022

*: Natural catastrophes are normalized to an average annual level. Excluded in 2021 are the impact of COVID-19; capital gains in North America, etc.; and capital gains from saleof business-related equities (for part of sale exceeding 100 billion yen). In addition, 2022 excludes the war in Ukraine and South African floods.

003

1 Purpose Story 2023 | Purpose | Message from the CEO: Approach to Value Creation
How Tokio Marine Fulﬁlls
Its Purpose, Even in Times
of VUCA
Tokio Marine Groupʼs Approach to Value
Creation: Global Risk Diversiﬁcation and
Global Integrated Group Management

In addition, we have built and are steadily evolving ourunique strength of global Integrated Group Management.
Through M&As, we have acquired very “Good
Companies” that fit with our corporate culture and continue
to grow. Yet for Tokio Marine, our greatest achievement iswelcoming talent with great expertise and knowledge. Social
challenges and risks, including climate change andhealthcare, continue to grow and become more complex
around the world. At Tokio Marine, we intend to accurately
identify these challenges, create solutions, and manage therisks. We will also balance growth and governance to a highdegree. Such capabilities are required now, and we willassign appropriate talent in areas where they can address
challenges and exercise our collective global expertise. Thisis a powerful form of corporate diversity, and it enables
us to improve the quality, accuracy, and speed of ourmanagement decision-making.

004

Now, it is important to firmly address societal challenges,
such as climate change, disaster resilience, and healthcare,by leveraging our strengths in global risk diversification andglobal Integrated Group Management. In doing so, our local
entities in 47 countries and regions throughout the world,
including Japan, will benefit from the unwavering trust of
our local stakeholders.
The harder we work, the more Tokio Marine can giveto our world and people. This, in turn, will allow us to realize
a sustainable society more effectively, and ultimately, we
too will grow in a more sustainable way. In my introduction, I
touched on our purpose, and we will continue to spread thefoundational initiatives rooted in our purpose across theentire Group throughout the globe.
Naturally, it goes without saying that upgrading our own
capabilities is essential if we are to address new social
challenges. With our purpose as our foundation, we
will bolster internal capital, which includes human andintellectual capital, as well as collaborate with external
partners (social capital), and create a cycle of businessactivities and solutions to societal challenges. This is how
we will steadily refine our strengths and strategies andgalvanize our problem-solving capabilities. We continue toplace importance on this approach, and it is our endlesschallenge to continue this cycle.
We already have a number of initiatives running to bolster
internal capital, namely promoting and instilling diversity andinclusion and leveraging interactive AI. Our officers (CHROon human capital, CDO on intellectual capital) will introduce
these themes in more detail, so I would like to highlight justone point. I would like to introduce our latest human capital
initiative, the TLI (Tokio Marine Group Leadership Institute),
and this is not just because I have a long career backgroundin HR. The TLI, established in April 2023, is a program thataims to continuously and globally nurture group-level
management leaders with a deep understanding of Tokio
Marine Groupʼs purpose. There are three core points. First,
fully leverage the Japanese and global talent data collectedthus far, and sophisticatedly link the TLI with our talentmanagement framework. Second, management teams inJapan and abroad are committed to passing down theirvision and experiences directly to the next generation, thatis, passing on the baton of our spirit̶our purpose̶which
lives on in Tokio Marine Group. Third, gather the global
wisdom of talent development of Group Company HR
sections and collaborate to foster our prospective leaders on

a global scale. As we go forward, we will position the TLI at
the center of group-level management leader development
to build our own systematic program.
Regarding collaborative creation with our external
partners and in terms of disaster resilience, development ofcomprehensive disaster prevention and mitigation solutions
will finally start in Japan this summer. This is led by CORE, adisaster prevention consortium which transcends industry
boundaries. By combining the strengths, data, andknow-how of participating companies, our aim is to provide
end-to-end solutions for the value chain in the disasterprevention and mitigation fields. These span fromascertaining the current situation in disaster-affected areas
to rebuilding daily lives, including the use of insurance. In
the United States, and in tandem with the University of
Hawaii, we are exploring ways to mitigate risk fordeteriorating condominiums. In China, we set up a healthconsortium to develop cross-industry healthcare solutions
that extend the healthy life expectancy of Chinese citizens.
These seeds are only just sprouting, but they will grow into
trees and eventually a forest. It is very encouraging to see
these initiatives accelerate, not only in Japan but also
around the world. I believe that the continuation of these
efforts, including the strengthening of internal capital, willbe the engine that propels Tokio Marineʼs sustainablegrowth for the next 100 years.

▶Tokio Marine Group s Approach to Value Creation

Expanded version: pp. 8,91
Purpose Story 2023

Taking risks is a core business of Tokio Marine. We start withthe premise that something will occur somewhere on the
globe, and then, by managing those risks, we ensure soundbusiness. It is our imperative in running our business that nomatter the circumstances, we always keep our promises toour customers.
To achieve our goals at a high standard, it is very
important to diversify risk across the globe.
Global risk diversification, the strong foundation that
supports Tokyo Marineʼs stable management and growth,cannot be built overnight. Over these past 15 years, we haveallocated capital gained from the sale of business-related
equities to M&A, thereby increasing overseas insurance riskthat has a low correlation with Japanese non-life risk. Thisapproach has brought profit growth while curbing risk
growth.
Our large acquisitions began with Kiln in the United
Kingdom back in March 2008, followed by Philadelphia
Insurance (PHLY) in the United States (December 2008),
Delphi (DFG) (May 2012), HCC (October 2015), and Pure
(February 2020). Simultaneously, we aggressively invested
in emerging markets and pursued bolt-on acquisition tobolster our existing businesses. On the other hand, we
have identified and divested certain businesses with aforward-looking view to optimize the business portfolio.
Even in years when we saw large-scale natural
catastrophes and the COVID-19 pandemic, our global risk
diversification has helped to keep the bottom-line impact
to under 30%̶although we are not yet satisfied with thislevel. Calculated diversification effect currently stands at
47%, and we aim to implement more initiatives that further
diversify our risk profile.

We are in our eighth year of global Integrated GroupManagement, and by increasing the number of
non-Japanese executive officers and appointing deputy
CxOs, we continue to evolve. We are also seeing results
reflected in quantitative terms. For example, we now offer
our Japanese clients insurance products that leverage theexpertise of HCC (currently TMHCC) and Kiln (currently
TMK) based in the United States and in Europe. We haveearned higher investment returns by allocating Group assets
to U.S.-based Delphi (DFG), which has industry-leading
expertise in asset management. These Group level synergy
discussions are happening organically among Group Company
and the synergy effect is now valued at $470 million,
increasing the unique value of the Group.

005

1 Purpose Story 2023 | Purpose | Message from the CEO: The Society and the Group We Envision
Steadily Moving toward theRealization of the Society
and the Group We Envision▶The Tokio Marine Group s Future Vision

Expanded version on pp. 10,11

In Closing
In closing, allow me to reiterate my commitment as the CEOof Tokio Marine Group.
Once again, I would like to express my heartfelt gratitude
to all of our shareholders and investors for the support
which makes it possible for Tokio Marine to continue ourbusiness activities̶thank you. As mentioned earlier, this isa once-in-a-hundred-year tipping point, rocked byuncertainty in global affairs and facing large-scale
managerial and business environment changes. Our
business is no exception. In the face of these issues, weneed to act as pioneers, proactively taking action to create
the future, rather than simply responding to changes.
We often host meetings where we discuss serious issues
in a relaxed environment with the aim of reiterating our
purpose and culture̶we call this “Majikirakai.” Here, I often
address our employees with the following ideas: “Think
deeply and challenge what you can change in yourday-to-day work. What can you leave for your successors
and the next generation?; What can you do to reach out andconnect with the future?” and “Tokio Marine must become acompany that values those who get five hits in 20 at batswith a batting average of .250, rather than two hits in threeat bats and a batting average of .666. Instead of setting alimit for yourself, I want you to go up to the batterʼs box andswing as many times as you can.”A young employee in his 30s turned his attention to aniche market, which was not easy to access for Tokio Marine& Nichido. With the aim of creating alliances across various
business partners to provide tailored insurance products
and services, we created Tokio Marine X Small-Amount
Short-Term Insurance Co. Ltd. The company is an example
of “standing in the batterʼs box and swinging the bat” andexemplifies our determination to “keep swinging.” In adigitally centered niche market, it is important to quickly
learn and move forward through repeated trial and error.
Therefore, we chose small-amount, short-term insurance forthe company, as it combines life and non-life insurance andfacilitates agile product development.
Small-amount, short-term insurance is subject to a
maximum handling of 5 billion yen in insurance premiums.
From a Group-wide perspective, the impact of this new
business is small. Nonetheless, as long as it is aligned with
our purpose, I want to acknowledge our employees tochallenge. The team is very diverse and made up mostly ofmembers in their 20s and 30s, with a mix of gender and avariety of careers. I do not want them to be bound by

Young employees in their 20s restructure the London
branch, which was in ﬁnancial crisis
Members of Tokio Marine London Branch
Front center, Kenkichi Kagami, and front far left, Hachisaburo Hirao(future Minister of Education)
Photograph taken around 1898

conventional thinking but rather to have a flexible mindset
as they drive the business forward.
If you compare these two pictures on this page, you might
think that Tokio Marine has always been supported by theyoung generation. However, last year, I formed the “CEOTeam” that includes non-Japanese officers, with the aim ofenhancing management decision-making. This year, Iestablished the Global Communications Department tofurther enhance internal and external communication. I
personally will not cease to take on new challenges. There
are not any role models, prototypes, or right answers in our
search for our unique management style. However, asGroup CEO, I am happy to take the lead and continue
swinging the bat. We are in uncharted waters, andpredicting even a little further ahead is not easy. However,
the whole Group works together for high cadence of
hypotheses testing cycle to plan and execute a seamlessgrowth strategy.
From the outset, insurance is a “peopleʼs business.” AsGroup CEO, it is my job to nurture a culture and a climatethat allows our staff to pour their passion into fulfilling our
purpose. I place the utmost importance on this as I execute
my responsibilities.
By continuing to serve our customers and society, we as a
Company will continue to sustainably grow and increase ourcorporate value. This is the business management style that
I want to achieve, and I am determined in my cause. I want
you to keep the Company actively working, and I intend tobuild a future that meets everyoneʼs expectations. Please
accept my appreciation, and I kindly ask for your continued
support.

1
Purpose Story 2023

As a result of carrying out our strategies, for fiscal 2023, we
forecast adjusted net income of 670 billion yen and adjusted
ROE of 17.1%. Fiscal 2023 is the final year of our current
Mid-Term Business Plan, and we expect to finish significantly
higher than what we set out in the initial plan (adjusted net
income of approximately 480 to 540 billion yen and adjusted
ROE of approximately 12%). We believe that the numbers
prove our capabilities, and they are steadily increasing.
As I have explained on various other occasions, we believethat business profit growth and shareholder returns should
be consistent. With that in mind, we set the fiscal 2022 regulardividend at 100 yen per share, as planned at the beginningof the year. For the fiscal 2023 regular dividend, we intend toincrease it by 21 yen from the previous year to 121 yen, and raise
our dividend payout ratio to 50%. This represents twelfth
consecutive year of a dividend increase.
This 670 billion yen profit plan for fiscal 2023 would be record
high profit, but our management acknowledges that it is onlya checkpoint̶a milestone in our journey to fulfill our vision toachieve a sustainable society where everyone can live safely andsecurely, and embrace challenges, and a milestone in ourjourney to fulfill our purpose or long-term goal to be a global

insurance group with sustainable growth by providing safety
and security to customers around the world.
So, the question is, just how much will our profits grow?
Currently, we are working to announce in May 2024, our next
Mid-Term Business Plan (FY2024‒2026). With an even longer
perspective, following three points have been determined:(1) Continue to achieve world-class EPS growth (currently atapprox. +5‒7%) through organic growth(2) Raise ROE to be on a par with European and American
peers, and expand equity spread(3) Increase shareholder returns as a result of the above
Of course, it goes without saying that in achieving thesefinancial targets, it is also essential to achieve our non-financial
targets, including the reduction of greenhouse gas emissions
and a higher representation of female directors and auditors.
As such, we have set non-financial KPIs to address the social
challenges that the Company faces for our own sustainablegrowth. For example, climate change. As highlighted in the
TCFD section (pp. 72‒85), climate change will lead to larger
and more frequent natural disasters, which could seriously
impact claims payment and business continuity. Accordingly,
our own initiatives for carbon neutral are a major premise for
Tokio Marine. As a responsible insurance company, institutional
investor, and global corporation, we actively engage withcustomers in their effort to transition towards zero carbon
society, with the goal to have insurance clients and investees
achieve net zero by fiscal 2050.

Leveraging digital technologies to create new insurance value
Team Members of Tokio Marine X Small-Amount Short-Term Insurance(Commenced business in March 2023)
Kohei Miyatani (President), third from the left
006

007

1 Purpose Story 2023 | Purpose | Reference: Beyond 100 Years (Value Creation Approach)With our Purpose as our foundation, we will bolster ourbusiness activities and solutions to societal challenges.
and galvanize our problem-solving capabilities. Through thishuman, intellectual, and social capital and create a cycle ofThis is how we will steadily reﬁne our strengths and strategies
Purpose Story, we will continue to grow for the next 100 years.

The Group We Aspire to Be

The Society We Aim to Create

A Global Insurance Group That Delivers Sustainable Growth
by Providing Safety and Security to Customers Worldwide

A Sustainable Society in Which Everyone Can Livein Safety and Security and Take on Any Challenge(Long-term vision)(See p. 64 for the value we provide to our stakeholders)Eliminate
uncertainty byunderwriting risk

Global Risk Diversiﬁcation
See pp. 27‒29

Global Integrated Group Management

Supporting
customersin their timesof needSee pp. 30‒33

Cover damages
and encourage
eﬀorts to tackle
challenges

Quickly restore
and prevent
recurrence( post-incident area)(insurance business/payments)008

See pp.16,17

1

Supporting
healthy andspiritually rich living
See pp.18,19

Changing Social Needs and Increasing Diversity and Complexity of Societal Challenges

Human
CapitalIntellectual
CapitalSocialCapitalGovernanceSee pp. 86‒93

See pp. 94‒97

See pp. 34‒43

See pp. 98‒127

Past
See pp. 2‒7

See pp.14,15

Societal Challenges
Being Addressed

Business Platform

Purpose

Improvingdisaster resilience

Addressing societal challenges
through business activities

Group Strengths

Alwaysthere forcustomers

Promotingclimate action

Purpose Story 2023

Business
Activities(insurance business/underwriting)Upward value
creation spiral

Detect risk andcontain damages( pre-incident area)

100 years
ahead

GlobalWarming

Demographic
Changes

Rising
GeopoliticalandGeoeconomic
Risks

Rapid
Progress in
DX and AI
etc.

009

1 Purpose Story 2023 | Purpose | Reference: The Society and the Group We Envision
We have set milestones for 2023, 2030,

and 2050, and are steadily moving forward

toward the realization of the society

and the company we envision.

The Group We Aspire to Be

The Society We Aim to Create(Long-term vision)

A Global Insurance Group That Delivers
Sustainable Growth by Providing Safety
and Security to Customers Worldwide

100

years
ahead

A Sustainable Society in Which Everyone Can Livein Safety and Security and Take on Any Challenge

100 yearsahead

Our next Mid-Term Business Plan (FY2024‒2026) is set to be published in
May 2024, but looking ahead, the following has been decided:

Eliminate

50

20

30

20

23

Current

Mid-Term

Business

Plan

Net zero(including insurance customers
and investment andﬁnancing recipients)

Development andprovision of newhealthcare services
that match thePromoting
Improving
FY2030needsof the times
climate action
disaster resilience
To be a Partner that2‑60%*See pp.14,15〜〜
See pp.16,17
Always Supports(compared with FY2015)• Continue
achieveworld-class EPS growth
Detecttorisk
anduncertainty by(currently
approx +5‒7%) through organic
growth risk
contain atdamages
underwriting

FY2023
Projections(Reference)

FY2023 Plans(Published in May 2021)

FY2022 Results

Alwaysthere for670.0 billion yen
customers
CAGR +15%Group Strengths
Global Risk Diversiﬁcation

17.1%(compared with FY2020)

See pp. 27‒29

Global Integrated Group Management

CAGR +3‒7%

12%(compared with FY2020)

See pp. 30‒33

Quickly restore
and prevent
617.1 billionrecurrence
yen
15.1%
( post-incident area)

FY2021 Results

FY2020 Results

Financial
KPIs

010

50%
40% or above

446.0 billion yen

Business Platform
11.5%
40%
IntellectualSocialCapitalCapitalAdjusted
net income*1

Flexible implementation(insurance business/payments)

12.7%

See pp. 86‒93

Supporting
customersin their times
100.0
billion yenof needCover damages
and encourage
tacklebillion yen
48.5%eﬀorts to100.0
challenges

505.4 billion yen

Human
CapitalUpward value
creation spiral

Activities• As a result, we will expand shareholder return43%

See pp. 94‒97

See pp. 34‒43

Adjusted ROE*1

Dividend
payoutratio
See pp. 2‒7

Purpose100.0 billion yen
50.0 billion yen
Governance

20

‑35%*

Addressing societal challenges
through business activities( pre-incident area)(insurance business/• Raise ROE to be on a par with European andAmericanunderwriting)Business
peers, and expand equity spread(share buybacks)

2(compared with FY2015)

Societal
Challenges ・Expansion of lifestyle-related illness
・Provision of solutions from July
prevention services(service to distribute resilience information, etc.)
Being
Addressed
・Establishment of a preparatory company,
・More than 100 participating corporations,subcommittees expanded to 10

with a view to commercialization in thepreventive and pre-symptomatic areas,20

FY2023
Projections(Reference)

FY2023 Plans

‑34%*

2

(compared with FY2015)‑32%*2(compared with FY2015)

Supporting
healthyand・More than 90 participating
spirituallyrichsevenlivingcompanies
throughsubcommittees, speeding up
See
pp.18,19
the searchforsolutions・CORE initiated by Tokio
Marine and established in
November 2021
(14 founding members)

・Began offering insurance coverageof 100 million yen, the highest
amount in the life insurance industry*3,
for advanced cancer treatment(for medical insurance with relaxed
underwriting standards)

FY2022 Results

・Began offering special cancer
risk test service to insurance
policyholders

FY2021 Results

which makes it easier for people
with health concerns to enroll(compared with FY2015)

Past

1

(Published in May 2021)

Changing Social Needs and Increasing Diversity and Complexity
ofoffering
Societal
Challenges
medicalinsurance
・Beganwith relaxed underwriting standards,‑26%*2

See pp. 98‒127

Capital leveladjustment

Oﬀer pre- and postincident peace of mind,
rather than staying
just as a payer of
insurance claims

Purpose Story 2023

20

FY2050RisingRapid
Geopolitical
GlobalDemographic
Progressinof
andInitiativesofdisaster
Expansion
ReductionofWarmingChanges
DX and AI
prevention consortium
greenhouse gas
Geoeconomic healthcare-related
CORE speededRisks
up
products and services
emissions
Promote climate action

Improve disaster resilience*1: Normalized basis (see pp. 45, 57 for details)*2: Based on our business activities (Scope 1, 2, and 3 (Categories 1, 3, 5, and 6))*3: June 2022, TMNL survey

etc.

Support healthy and spiritually rich living

FY2020 Results

Major
non-ﬁnancial
KPIs
Details on pp. 66‒69

011

1

Purpose Story 2023 | Building a “Safer” World | Three Social Challenges

Our aim is to drive forward climate change
countermeasures and improved disaster
resilience. We have marked three currently
emerging societal challenges that we need toaddress to enable us to support healthy andenriched lives. We will implement strategies
to address these challenges and enhance ourcompanyʼs social and economic value.

We aim to continue to protect our customers and society in times of need through solving
societal challenges with our business activities based on our Purpose and, as a result, we
will create and enhance our social and economic value.

In this uncertain era of VUCA, social challenges are
ever-increasing, expanding, and becoming more complex.

natural disasters is already severe. As a company that was

New social challenges unlike any we have ever faced arefounded in Japan̶a country prone to natural disasters̶

appearing. We are now in an era where what seemed like

Tokio Marine has long been contributing to improved disastercommon sense in the past no longer applies. It is precisely

resilience as our very purpose. As natural disasters intensify,

because of this complex era that our business domains andin addition to protecting our customers and local communities

areas of activity in the risk and underwriting businessin their times of need, we will strengthen and expand ourcontinue to expand.

business into the domains of pre- and post-incident insurance
events, such as disaster prevention/mitigation and early

There are many social challenges and domains that we would

recovery/prevention of recurrence. Through this, we will

like to help address, but as far as the world and insurance

contribute to the improved resilience of society as a whole.

companies are concerned, the immediate challenges are the

Finally, supporting healthy and enriched lives. As weadvancement of climate change countermeasures, improved

prepare for the coming era of the 100-year life, the risks of

disaster resilience, and supporting healthy and enriched lives.

prolonged periods of poor health and the depletion of assets

The ﬁrst is climate change. The numerous adverse eﬀects

support this era of the 100-year life by providing

disasters, threaten the safety and security of peopleʼshigher-added-value products and services that combine life

everyday lives and are starting to hinder the sustainable

and non-life insurance, and by supporting corporate healthdevelopment of society. As a responsible insurance company,

and productivity management.

See pp.14,15

See pp.16,17

stands ready to face this challenge head-on.

1
Purpose Story 2023

Improvingdisaster resilienceduring our life spans are becoming more serious. We willof climate change, which include the intensiﬁcation of natural

institutional investor, and global enterprise, Tokio Marine

Promotingclimate action

Next, improved disaster resilience. The intensiﬁcation ofSocietal Challenges
Being Addressed
Supporting
healthy andspiritually rich living
See pp.18,19

Changing Social Needs and Increasing Diversity and Complexity of Societal Challenges
Global Warming

012

Demographic
Changes

Rising
Geopolitical andGeoeconomic Risks

Rapid Progress
in DX and AI

etc.

013

1 Purpose Story 2023 | Building a “Safer” World | Three Social Challenges

To Achieve Our Vision
1. As an Insurance Company

Climate Change Countermeasures
Climate change is an important social challenge in terms of global sustainability
As a responsible insurance company, institutional investor, and global enterprise, Tokio
Marine stands ready to face this challenge head-on.

To advance the spread of renewable energy, it is essential to establish an

As for Japanese oﬀshore wind power, for example, construction work at

environment where suppliers feel comfortable investing in such businesssea is not easy, and it is especially important to be prepared for typhoons.

and can carry out their operations with peace of mind. One of our entities

In providing insurance products and consulting for risks unique to Japanʼs

is GCube, a leading underwriting player in the global renewable energy

oﬀshore wind power generation, we are able to leverage Tokio Marineʼsﬁeld. GCube has access to accident data on a wide range of renewable

experience and accident data from our insurance business in Japan, as

energy sources, including solar, wind, and hydro, as well as LC and LP*1

well as GCubeʼs loss prevention know-how, which is gained from a track

expertise. Through the provision of insurance products and services, riskrecord of underwriting numerous oﬀshore wind power projects in Europe.

consulting, and claims services that leverage this high-level expertise, we*1 LC/LP are abbreviations for Loss Control (accident mitigation) and Loss Prevention (accident
prevention).

are supporting the development of renewable energy.

2. As an Institutional Investor

Environmental AwarenessAs an institutional investor, we support the development of companies that
In Japan, the government announced new mixed energy standards that

Climate change is a multifaceted threat that is causing intensiﬁcation

As of the end of March 2023, our group balance ofare advancing GX. For example, in 2023, we made a commitment to invest

sustainability-related investments and loans increased by approximately

in a forest fund. By lengthening periods between deforestation and by

109 billion yen. We will continue supporting enterprises that are drivingof natural disasters, rising sea levels, changes in the ecosystem, foodshould signiﬁcantly increase the ratio of renewable energy sources, withimproving forest operation and management (such as tree planting) we are

GX forward across a wide range of ﬁelds.

shortages, and health hazards. It is a signiﬁcant challenge that thethe aim of reducing GHG emissions by 46% by 2030 (compared with ﬁscal

contributing to an increased amount of GHG absorbed by forests. Through*2 Bonds that raise funds for businesses involved in marine protection.

international community must come together to tackle. The international2013). The main sources of energy are solar and wind. However, as Japan

investment in Japanʼs ﬁrst blue bond*2 in 2022, we invest in and arecommunity brought the Paris Agreement into force in 2015 to reduce

is an island nation, there are high hopes that oﬀshore wind power could be

supporting environmentally sustainable ﬁsheries and aquaculture businesses.

GHG emissions, the cause of climate change. Common global long-term

its trump card in its eﬀort to shift to renewable power sources as a main

goals agreed to include initiatives to limit the increase in global averagesource of energy.

As an Insurance Company and Institutional Investor

temperature to 1.5ºC*1 and to achieve carbon neutrality by 2050. Under*1 Compared to pre‒Industrial Revolution levels

Through the theme of environmental engagement, as a responsible insurance

this international framework, each country is driving forward uniqueinitiatives based on their own energy circumstances.

institutional investor through engagement that considers the non-ﬁnancial

innovation and transition toward decarbonization and carbon neutrality.

information of investment and loan customers.

As an insurance company, we engage with a wide range of over 250▶Expansion of the Global Renewable
Energy Market▶Published by the Government of Japan
New Mixed Energy Standards in 2023

50

Renewables

Coal

GW (ratio)

Oil

40
31%

30

2030

Solar power

61.6 (51%)

103.5‒117.6(55%‒58%)

Onshore wind power

4.5 (4%)17.9 (10%‒9%)

Hydropower

50.0 (41%)

50.7 (27%‒25%)

27%

20
10
0

FY20202011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: 2022 BP Statistical Review of World Energy

Other

5.6 (5%)9.5 (5%‒5%)

Total

121.7 (100%)

187.3‒201.4 (100%)

Source: Agency for Natural Resources and Energy

Of course, in our climate change policy, we also share our thoughts on

business partners.*3 For more than 120 of these companies, we leverage ourdivestment (details on p. 83). However, we are not fulﬁlling ouradvanced underwriting and risk management know-how to provide proposals

responsibilities just by divesting. While divestment is sometimes necessary,and support to address the challenges of corporate decarbonization. For

we are closer to corporate customer transition through engagement. “Howexample, for one corporate customer that plans to achieve net-zero GHG

can we contribute to the realization of a net-zero society?” While considering

emissions by 2050 and has started developing and looking into new

this question alongside our customer businesses, we want to contribute totechnologies, we presented various proposals (participation in demos,

the decarbonization and carbon neutrality of all society.

prototype risk underwriting, loss prevention, etc.) related to the risk reduction*3 FY2022 resultsof new technologies.

1
Purpose Story 2023(%)

We contribute to the acceleration of GX-related customer initiatives as ancompany and institutional investor, we support our customersʼ corporate

3. As a Global Company
Our Group has reduced GHG emissions related to business activities by

the Geneva Association, an insurance industry think tank composed of

34% compared with ﬁscal 2015 (2022 results). We did this by switching

chairpersons and CEOs from approximately 70 insurance companies

to electricity generated from renewable sources, purchasing electricworldwide, we co-chaired the working group “Climate Change andvehicles for company use, reducing utility usage, and more. We have been

Emerging Environmental Issues” and lead surveys and studies on “Climate

planting mangroves since 1999 and are steadily increasing the amount of

Change and the Environment,” an important issue for the insurance

GHG absorption and ﬁxation. As a result, in ﬁscal 2022 we achieved

industry. As a TCFD member involved in the founding of the TCFD

carbon neutrality for the 10th consecutive year.

Consortium in Japan, as well as giving recommendations, we contributed

Our Group also participates in various international climate-related

to the spread and promotion of climate-related information.

initiatives, conducting surveys, research, and advocacy. For example, at▶Upward Spiral of Our Social Value and Economic Value (image)

Our Vision for Tokio Marine
As a responsible insurance company and institutional investor, we at Tokio

support corporate innovation and transition for decarbonization and carbon

Marine develop and provide renewable energy‒related insurance products

neutrality. As a global enterprise, we will contribute to the decarbonizationand services and support companies that promote GX through investments

and carbon neutrality of society by playing a leading role in international

and loans. Additionally, by engaging on the theme of the environment, we

initiatives.

The more work we do, the more our social value increases.
The more our social value increases, the more our economic value increases.

Economic Value● Reduction of our companyʼs physical and transition risk
● Increase in GX investment and loan AUM● Expansion of renewable energy‒related insurance● Increased support for companies that are propelling GX
forward through the development and provision of renewableenergy‒related insurance, GX investments, and loans● Enriched engagement with our customers

014

Social Value● The world moves closer to a decarbonized society● Expansion of renewable energy‒related business● Development of companies promoting GX

015

1 Purpose Story 2023 | Building a “Safer” World | Three Social Challenges

Our Vision for Tokio Marine

Improving Disaster Resilience
Having originated in Japan̶a country prone to natural disasters̶Tokio Marine has been contributing to improved disaster resilience since
its founding: indeed, that is our very purpose. By strengthening our existing insurance business, we are expanding our business into thedomains of pre- and post-insurance events, such as disaster prevention/mitigation and early recovery/prevention of recurrence. We intend
to further contribute to the improved resilience of society.

Environmental AwarenessSince 2000, economic losses attributable to natural disasters, such as

risk being too great or uncertain for insurance companies to provide

hurricanes, typhoons, and torrential rain* , have continued to grow. In fact,coverage or companies insuﬃciently explaining the necessity of coverage

the global economic losses from natural disasters in 2022 amounted to

to customers. An example can be seen with earthquake insurance insome $313 billion, a level higher than the average since 2000. Within

Japan. The risk was thought so great that it was diﬃcult for private non-life

that, the amount of insurance claims paid (industry estimate) for Hurricane

insurance companies alone to underwrite it, and for a long time no

Ian in the United States was approximately $52.5 billion, second only toinsurance existed. But a public-private joint insurance system was

Hurricane Katrina in 2005. While the severity of natural disasters has thus

established following the major earthquakes that occurred in the 1960s.

become more pronounced, losses not covered by insurance (the protection

Thus, the protection gap is an issue that requires action not only bygap) still stands at 58%. Closing this protection gap is critical in improving

insurances companies but also by governments, research institutions, anddisaster resilience.

local communities around the world. In other words, industry, academia,

1

The protection gap is partly due to factors on the customer side, suchgovernment, and citizens worked together to determine what is best andas customers feeling that they do not need to be insured or cannot aﬀord

how to tackle the issue.

it. However, the gap can also be attributed to supply-side issues, such as*1 Cumulative from 2020 onward

natural disasters.

Achieving Our Vision
1. As a Partner Who Always Provides Support
Insurance claims payment is the most important function of an insurance

and are working to create and implement solutions that contribute to disastercompany, but this alone does not mean that we adequately support our

prevention and mitigation in Japan, where natural disasters are becoming

customers. Overall, it would be preferable if disasters did not happen. When

more severe. Currently, over 100 corporations and organizations representing

they do, the less damage and the quicker the recovery, the better. And theya wide array of industries are participating in the creation of solutions suchshould not reoccur. Our Group also strives to provide peace of mind in pre-as (1) resilience information services, (2) building damage cost simulations,and post-disaster insurance events, including disaster prevention, mitigation,and (3) real-time hazard maps. This summer, we will ﬁnally enter the phaseearly recovery, and prevention of recurrence. Rather than only payingof concrete business development. (Details on p. 37)

insurance claims in times of need, by evolving into a partner that always

and damage caused by natural disasters (LC/LP*1) by accurately

ratio.

ascertaining the environment and risks surrounding client companies. In ﬁscal

As for disaster prevention and mitigation, for example, we believe that we

2022, Tokio Marine Nichido implemented around 1,500 loss control and loss

can provide even better products and services not only by leveraging our own

prevention cases. These include cases for which we were able to contributecapabilities but also by working with leading companies in various industries.

to reduced customer damage costs and accident numbers by about 30%.

In November 2021, we launched CORE, the Disaster Prevention Consortium,*1 LC/LP = Loss Control (accident mitigation) and Loss Prevention (accident prevention)

2. Always Be There in Times of Need
Fire insurance is an essential type of insurance that protects customers frombusiness eﬃciency (cost reduction, etc.), we will work together as a Group to

natural disasters. Due to the intensiﬁcation of natural disasters in recent years,

ﬂexibly revise premium rates and products and optimize reinsurance to makethis line of business is constantly in the red. If we are entrusted with valuable

ﬁre insurance sustainable and in order to always support customers and local

capital from our shareholders, we should not tolerate sloppy accounting justcommunities in times of need. Through these comprehensive and thoroughbecause overall business is in the black̶and it is unsound from theinitiatives to improve proﬁtability, we expect to secure proﬁtability (ROR >7%)

perspective of fairness to policyholders. In addition to improving our own

equivalent to the cost of capital in ﬁscal 2026. (Details on p. 135)

Our Speciﬁc Initiatives
Increased BusinessEﬃciency

660

Severe convective storm
Earthquakes

539

Drought

Global economic
losses due tonatural disasters

313 billion

Winter weather
Wildﬁresdollars

Other

Losses not
oﬀset byinsurance

139
119
98
89
77
2015

2020

First, Tokio Marine will work to signiﬁcantly reduce our administrative workload by leveraging digital technology*2, thereby reducing ouroperating expense ratio to the 31% level*3 in ﬁscal 2026.
*2 Reduce administrative workload by 20‒30% by fiscal 2026 (compared with fiscal 2019)1*3 Private health insurance baseRevision of Rates
and Products

To make ﬁre insurance proﬁtable, we have revised rates and products for four consecutive years since 2019. Through this, we expect an
improvement in earnings of approximately 60 billion yen in ﬁscal 2023 (compared with ﬁscal 2020). However, even with this measure, weare still unable to secure proﬁtability equivalent to our cost of capital (ROR >7%). For this reason, we are also considering rate and productrevisions during the next mid-term business plan (FY2024‒2026). In addition, to make insurance premiums among policyholders fairer, weare examining the introduction of regional segmentation of our current nationwide uniform ﬂood disaster premium.

Optimization ofReinsurance

In Europe and the United States, due to the eﬀects of Hurricane Ian and reinsurer capital reductions attributable to rising interest rates,
reinsurance premiums have risen sharply, and underwriting preconditions have been tightened. However, in ﬁscal 2023, we are able to curb
increases in reinsurance premiums in Japan and overseas without increasing our risk through strategic negotiations with reinsurers using thecollective strengths of our Group, reviewing earnings cover through cycle management, as well as by abolishing ineﬃcient programs, and more.

▶Upward Spiral of Our Social and Economic Value (image)

264

2010

We have also long focused on services that reduce and prevent accidents

supports customers, we will earn customer recognition and reduce our loss

▶Protection Gap

Flooding

2005

We are working to build a resilient world that coexists with the risks ofsuch as disaster prevention, mitigation, early recovery, and prevention of(billions of USD)

Tropical cyclone

2000

recurrence, we intend to evolve into a partner that always provides support.

our insurance business into the domains of pre- and post-insurance events

Purpose Story 2023

▶Growing Global Economic Losses(by natural disaster type)

In addition to protecting our customers in their times of need, by expanding

The more work we do, the more our social value increases.
The more our social value increases, the more our economic value increases.

58%

Economic Value

Social Value

Source: 2023 Weather, Climate and Catastrophe Insight, Aon

Source: 2023 Weather, Climate and Catastrophe Insight, Aon● Stabilized ﬁre insurance system● Curtailing insurance payments attributable to natural disasters● Reduction of customer accidents and damages● Creating solutions that contribute to disaster prevention andmitigation and provide them to society

016

017

1 Purpose Story 2023 | Building a “Safer” World | Three Social Challenges

Our Vision for Tokio Marine
We support peopleʼs long, healthy lives by providing products and services

Supporting Healthy and Enriched Lives

By helping to address challenges related to the declining birthrate andthat support the extension of healthy life expectancy, as well as theaging society in Japan and reﬁning our solutions, we will support countries

avoidance of asset depletion. As labor shortages become more acute,around the world that are likely to confront the same challenges as Japanthrough support for health and productivity management, we will support

in the future.

the employees of our client companies so they can work in good physicalAs we prepare for the coming era of the 100-year life, the risks of prolonged periods of poor healthand the depletion of assets during our life spans are becoming more serious. We will support this eraof the 100-year life by providing higher-added-value products and services that combine life andnon-life insurance, and by supporting corporate health and productivity management.

and mental health.

To Achieve Our Vision
1. Support for Extended Healthy Life Expectancy and the Avoidance of Asset Depletion

Environmental AwarenessJapan has one of the longest life expectancies in the world, and theAlso, due to Japanʼs declining birthrate, the proportion of the population

average life expectancy continues on an upward trend. While this itself isof working-age (15‒64 years old) is just 59.4%̶the lowest level among

welcome, the diﬀerence between average life expectancy and healthy life

developed countries̶and this is expected to further decline to about

expectancy is as much as ten years. In anticipation of the era of the

52.8% by 2060. As the problem of labor shortages in Japan gradually

100-year life, how to reduce the diﬀerence between average life

emerges, companies are entering an era in which it is diﬃcult to maintainexpectancy and healthy life expectancy has become an urgent issue ‒and improve employee recruitment and retention rates. In addition toextending healthy life expectancy has become an important social issue.

corporate initiatives such as improving productivity through innovation, an

Avoiding asset depletion is also an urgent challenge, as living longer withincreasing number of companies are strategically working on corporate

an illness can lead to increased ﬁnancial burden on the individual and theirhealth and productivity management as they start to regard employee

family.

health management and the promotion of health as an investment.

▶Average Life Expectancy and Healthy Life Expectancy Trends in JapanLife
expectancy

85

Healthy life
expectancy

Difference

85
84.93

80
75

78.07
8.67

79.19

78.64

8.86

9.17

70
65

69.4

69.47

2001

2004

79.55
9.13

70.33

70.42

2007

2010

80.21
9.02

71.19

2013

80

80.98

１２.28
８.８４

１２.9

70

2019

65

72.65

72.69

86.3

86.61

87.14

１２.63

１２.68

１２.4

１２.35

73.62

Cancer Treatment Insurance,” which provides coverage for the latest

strokes is also increasing. To prevent these lifestyle-related diseases, it iscancer treatments up to 100 million yen*1, the highest amount in the life

essential that we raise awareness of health-related issues and improve our

insurance industry.

lifestyles. To that end, Tokio Marine Nichido Anshin Life began oﬀering

Marine Nichido Anshin Life provides Market Link (regular premiums

awareness in relation to health and lifestyle through services including

variable insurance) that supports customersʼ long-term asset formation

predicting the risk of developing hypertension, diabetes etc. from healththrough long-term and diversiﬁed investment.

checkup results that big data‒assisted AI and providing online consultation

which accurately capture customer needs, are being evaluated favorably

results.

by customers. Thanks to that, Tokio Marine Nichido Anshin Lifeʼs top line*2

Among lifestyle-related diseases, some cancers, if diagnosed at anof senior healthcare and regular premiums variable insurance is steadily

early stage, can be successfully treated in 90% of cases thanks to recent

expanding (Senior healthcare sector: 3-year CAGR: approx. +26%. Assetadvances in medicine. Therefore, Tokio Marine Nichido Anshin Life has

formation: 3-year CAGR: approx. +39%).

2004

2007

2010

for formulating a BCP to counter infectious diseases as well as

favorably, and we are the only company in the insurance industry to havecountermeasures against mental health issues and workplace harassment.

been selected as a top health management brand for eight consecutive

In ﬁscal 2022, we supported 2,000 companies, or 12% of all certiﬁed

years. We make the best use of our health management know-how tocorporations.

support the health management needs of our client companies.

2013

2016

*1 Tokio Marine Nichido Anshin Life survey, November 2021.
Insurance of up to 100 million yen when “Specific Cancer Treatment Insurance” is attached to“Anshin Cancer Treatment Insurance”*2 Annualized insurance premiums for new policies

Our companyʼs corporate health management initiatives are evaluatedFor example, at Tokio Marine Nichido, we launched the Health2001

As we enter an era of the 100-year life, our products and services,with a nurse when customers are concerned about their health checkup

2. Supporting Corporate Health Management

74.79

74.21

We are also taking measures to avoid customer asset depletion. Tokio“Anshin Healthcare” from August 2023. We support heightened customerof cancer. Serious cancer cases might require expensive treatment costs

85.99

73.36

Tokio Marine Nichido Anshin Life, we developed and now oﬀer “Anshin

suﬀering from lifestyle-related diseases such as cancer, heart disease, andsimple cancer risk test using urine samples for aﬀordable, early detection

75

72.14

2016

85.59

to give up on their desired form of treatment due to ﬁnancial constraints. At

In Japan, as average life expectancy increases, the number of people

teamed up with Craif, a company we invested in, to oﬀer “miSignal,” aFemale(Age)90that are not covered by the public medical insurance system, leading somecustomers have an extended healthy life span.

2019

The initiatives of Tokio Marine Nichido are also highly evaluated bycorporate customers. Thanks to them, the top line*3 of insurance that is

Management Task Force where we have more than 200 employees

highly compatible with health management is growing at a ﬁve-year CAGR

working as promoters nationwide. We support the certiﬁcation of small andof +6%.

medium-sized enterprises (SMEs) throughout Japan as Excellent Health

Source: Ministry of Health, Labour and Welfare

Management Organizations by providing insurance that supports a balance

1
Purpose Story 2023

Male

(Age)
90

We leverage the latest technology and external expertise to help our*3 Statistical insurance premiums for corporate and group insurance that compensate employees andcover work-related accident risks, unemployment risks, medical and nursing care risks, etc.

between treatment/nursing care and work, and services including support▶Population Trends in Japan
Population (millions)
140
120
100

124.4
29.2%

▶Upward Spiral of Our Social and Economic Value (image)
120.1
30.8%

112.8
34.8%

80
60

59.4%

40
20
0

58.9%

55.1%

104.6
37.1%

96.1
37.9%

Economic Value
52.9%

52.8%

11.4%

10.3%

10.1%

9.9%

9.3%

2023

2030

2040

2050

2060

Source: National Institute of Population and Social Security Research

The more work we do, the more our social value increases.
The more our social value increases, the more our economic value increases.

■ 0‒14 years■ 15‒64 years

Working-Age
Population● Expansion of insurance in the senior healthcare/asset
formation ﬁeld
● Expansion of insurance for SMEs
■ 65 years and older● Support for customer extended healthy life expectancy andthe avoidance of asset depletion● Supporting employees of SMEs to work in good physical andmental health018

Social Value● Local economies can be revitalized by the extension ofhealthy life expectancy, which helps to suppress increases
in social security costs and the development of SMEs
● Extension of healthy customer life expectancy and theformation of retirement assets● Recruitment, retention, and improvement of employees at SMEs

019

1 Purpose Story 2023 | Building a “Safer” World | Our Progress in Solving Social Challenges and Achieving Sustainable GrowthPremiums (trillions of JPY)
Dividends (billions of JPY)
Premiums

Our Progress in Solving Social Challenges andAchieving Sustainable Growth

5 trillion yen

2020 Worldwide
Support for the growth of renewable energy● Release of package insurance for oﬀshore wind
power generation● Acquisition of GCube

Our Companyʼs purpose is to protect customers and society in times of need. Since our founding in 1879, we have achieved long-termsustainable growth by helping to address numerous social challenges that change with the times. When Tokio Marine was founded, 100%of our business was marine insurance. Since then, although marine insurance sales have grown signiﬁcantly, they now account for only 2%of our total composition ratio. To put it another way, we have gained the support of our customers by adapting and expanding our businessin response to a changing world, which has led to proﬁt growth and increased shareholder dividends. We intend to achieve further growth
so that we can always be there for customers and society in times of need.

2017 Japan
Launch of special contract victim
relief for autonomous driving
incidents (ﬁrst in Japan)

Dividends

2002 Japan

Direct Net Premiums Written* (bar graph) and Total Dividends* (line graph)1

Domestic non-life insurance*2

200.2 billion yen

Launch of life and non-life
insurance product “Super
Insurance” (ﬁrst in Japan)▶Our History of Social Resolution and Growth
4International insurance*

200

3.0

150

2001 India

Total dividends*

3

4.0

4

Launch of microinsurance*1 Excludes deposit premiums from policyholders*2 Premiums from Tokio Marine from FY2001 and prior, and combined premiums from TMNF and NF, etc., from FY2002 onward*3 Premiums from FY2002 onward when Tokio Marine Holdings was established*4 Does not include one-time dividends provided as capital level adjustment

1999 Europe (Kiln)

1

1996 Japan

Purpose Story 2023

2002
Tokio Marine Holdings
establishedLaunch of cyber insurance

Expansion into the life
insurance business

Founded as
Japanʼs ﬁrst insurancecompany

1989 Japan
Launch of nursing careexpense insurance, precededby public insurance

2.0

100

1.0

50

1975 Japan
Launch of deposit P.A. insurance
for familiesʼ injuries in traﬃc
accidents (ﬁrst in Japan)

1957 Japan
We have contributed to the development of Japanʼs economy and society
by protecting trade cargo frommaritime accidents through marine
insurance

Liability insurance approvalobtained (ﬁrst in Japan)

1914 Japan
Launch of Japanʼs ﬁrst
auto insurance

1879
020

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2022

(FY)

021

1 Purpose Story 2023 | Building a “Safer” World | Pursuit of Deep-Rooted Sustainability Management
Pursuit of Deep-Rooted Sustainability Management(recent initiatives)

At Tokio Marine, the harder we work, the more we can give to our world and people to create a sustainable society. Ultimately, we too
can grow in a more sustainable way. Our aim is to realize sustainability management and drive our founding initiatives forward in Japanand around the world.

Japan
Drive Initiatives in Four Priority
Areas of Social Challenges
We see healthcare, cyber, renewable energy, andsupport for SMEs as challenges that will persist
for the next 10 to 20 years. We are driving
initiatives to address social challenges in thesefour priority areas. (p. 136)

China

Healthcare

RenewableenergyCyber

SMESoutheast Asia
Reducing Food Waste
and Promoting Donations
through Insurance

We are planning to form ahealth promotion consortium toprovide smart city residents withhealth promotion insurance
and services. These services
are integrated with healthmanagement services using a
dedicated application.

We are planning to roll out
cargo insurance in Southeast
Asian countries that covers foodproducts that have lost theircommercial value due todamage to the outer packaging,helping to contribute to thecircular economy.

Japan

Advanced Natural Disaster
Response

Contributing to Improved
Disaster Resilience

By automating the claims payment
process, the time needed is reduced.
Through this, we can contribute to thetimely reconstruction of lives impacted
by large-scale disasters.

Centered on the CORE disaster prevention
consortium, we expanded our business in a waythat contributes to improved disaster resilience.

U.S.

U.S.

Support Employees on Leave
and Their Company

Leveraging Technology to Prevent Accidents

In addition to providing unemployment insurance, we aredeveloping services to support employees on long-term leave
as well as their companies, through digital technology.

HawaiiBy distributing telematics and temperature sensors free ofcharge, we are working to support accident prevention andloss reduction.

1
Purpose Story 2023

Healthcare
Provision of Data
SolutionsSouth Africa

022

Japan

Countries
Around the World

Fire Insurance andDistribution of Alarms

Industry-Academia Collaboration for Improved
Sustainability in Condominiums

Supporting the Spread of Renewable Energy
on a Global Basis

We are helping to strengthencommunity resilience bypromoting ﬁre insurance and ﬁrealarms as a set to those living
in low-income housing.

In conjunction with the University of Hawaii, we are considering
jointly providing risk
mitigation programs, suchas those for measuresagainst condominium
deterioration. We will workon improvements bygathering risk informationand increasing usage rates.

Through GCube, a leading player in insurance underwritingin the global renewable energy sector, we are expanding
insurance business activities that contribute to the spread ofrenewable energy.

023

1 Purpose Story 2023 | Building a “Safer” World | The Current Tokio Marine Group, Which Has Constantly Solved Social Issues
The Current Tokio Marine Group,
Which Has Constantly Solved Social Issues▶ Win-Win with stakeholders (main)

By continuing to address social challenges with our purpose as our starting point, we have grown into a world-class insurance company
and will continue to contribute to the creation of a safe and secure world.

Ranking

Profit*Ranking

1,2Company name1,120.6

1

Allianz

13,537.0

2

Chubb

745.8

2

Chubb

11,510.8

3

AXA

729.5

3

Progressive Corporation

11,184.0

4Zurich621.6

4

Zurich10,313.1

5

China Paciﬁc Insurance

484.6

5

AXA

9,769.2

6

Progressive Corporation

472.8

6

Tokio Marine Holdings, Inc.

6,638.3

7

Peopleʼs Insurance Company Group of China

436.6

7

AIG

6,010.6

8

Travelers

414.2

8

Travelers

5,789.3

9

Tokio Marine Holdings, Inc.

397.9

9

Peopleʼs Insurance Company Group of China

4,581.3
4,136.7

Allstate*1 Adjusted net income is shown for Tokio Marine Holdings, and average net income on a financial
accounting basis (IFRS, USGAAP, etc.) from FY2018 to FY2022 is shown for others.
*2 As of June 30, 2023

Satisfied
Neither
Not Satisfied<Top-line*3>

MarketNo. 4(Lloydʼs)

TMNF

Market4.9%

1.7%-185.3%2013–2022 CAGR

Auto
Insurance
average

Pure

33

PHLY

2022

<Top-line*4><Bottom-line*5>

M/S

North
America

No. 1

10.7%

2021

2022

*8 Maximum 5 points (domestic and overseas Group companies and HD total)*9 System to work on solving problems through volunteers, going beyond departmental boundaries

Social contribution throughsustainable business activities
Achieved carbon neutrality*10 for 10 consecutive years

Responsibility to help equip children
with the skills they will need in life

Green Lessons* :11(10,000 tons)
20

Approximately 59,000 children attended

Disaster Prevention Lessons* :12Approximately 77,000 children attended
20131(as of March 31, 2023)

2022
CO2 absorption/fixation/reduction<Top-line*5>
M/S

Market2020

Future Generations

10<Bottom-line*4>

562
361

Source: Profit Ranking: Factset; Market Capitalization Ranking: Bloomberg

M/S

-7.9%

4.3

Society

CO2 emissions

TMK

Project Request*9 participants(started in Sept. 2020)

37

31

Home
Insurance
average66*7 Net Promoter Score (indicator of customer loyalty and intent to continuously use the services); PHLY
and Pure are based on 2022 data.
Source: Customer GURU, NICE Satmetrix 2022 Consumer Net Promoter Benchmark Study0<Bottom-line*3>59Group attachment*8

Purpose Story 2023

10

357.3

NPS*7 (U.S.)

1.8%

88.5%

Marketcapitalization*2

Allianz

Allstate

Highly motivated Group employees(billions of JPY)

1

10

Assessment of the results of supporting those intimes of need around the world

9.7%

Non-Life InsuranceMarket Capitalization Ranking(billions of JPY)

Company name

Employees

Customer satisfaction (TMNF)
2022▶Leading Global Insurance Company
Non-Life Insurance
Profit Ranking

Customers*10 Emissions from in-house operations falling under Scope 1, 2, and 3 (Categories 1, 3, 5, and 6)
emissionsNo. 12*11 An environmental awareness program on the prevention of global warming and biodiversity. Targets
4th to 6th grade elementary school students and high school students in special support schools.
*12 A disaster prevention awareness program on how earthquakes and floods occur and how to protect
yourself in the event of a disaster. The targets are the same as the Green Lessons.

1.3%

2016–2021 CAGR

Shareholders

2012–2022 CAGR

Top-class TSR*13 through growth in proﬁts (last decade)<Bottom-line*6>
Asia<Top-line*6>
Thailand

23.1%

M/S
MarketN/A

2012–2022 CAGR

Central andSouth America

Malaysia
No.

4

M/S

No.

7

No.

9

*3 Bottom line: Tokio Marineʼs local financial accounting profits and the marketʼs net income on afinancial accounting basis for all Lloydʼs companies.
Source: Lloydʼs Annual Report and S&P Capital IQ
Top line: FY2022 GWP base Source: S&P Capital IQ*4 Bottom line: Tokio Marineʼs business unit profits and the marketʼs net income on a financial accounting
basis for members of The General Insurance Association of Japan.
Source: The General Insurance Association of Japan HP
Top line: FY2022 NWP base Source: Public documents from various companies

M/S No.

13<Top-line*6>■Tokio Marine 410

Brazil21.7%
MarketN/A

India

Singapore
M/S<Bottom-line*6>

2012–2022 CAGR

■Peer 2349

M/S

■Peer 1

317

No. 4

■Peer 4303

■Peer 3271

*5 Bottom line: Tokio Marineʼs local financial accounting profits and the marketʼs net income on a financial
accounting basis for North American damage insurance.
Source: S&P Capital IQ
Top line: FY2022 DWP base, North American damage insurance commercial event.
Source: S&P Capital IQ*6 Bottom line: Tokio Marineʼs business unit profits. The market is not listed as there is no data.
Top line: FY2022 GWP base
Sources: AXCO, IRDAI, IPRB, SUSEP, Swiss Re, and FSCA (Financial Sector Conduct Authority)

2013 April*13 Total Shareholder Return (TSR): Capital return after reinvesting dividends, an index setting the stock price on April 1, 2013, to 100.

024

2023 End of March
Peers: Allianz, AXA, Chubb, Zurich

Source: Bloomberg

025

1

Purpose Story 2023 | Our Competitive Advantage | Global Risk Diversification

Global Risk Diversification

Our strengths are global risk diversification
backed by M&A / PMI capabilities and global
integrated Group management, which helps
us contribute to the creation of a safe andsecure world based on our Purpose.

Detect risk andcontain damages( pre-incident area)

Business
Activities(insurance business/underwriting)became a member of Tokio Marine Group. As a Vice President Executive Oﬃcer of Tokio Marine Holdings, I
am currently playing a role in implementing integrated Group management, while leading our international
insurance business as the Co-Head of International Business. Here, I would like to explain our global risk
diversiﬁcation strategy, which is the essence of the business management of Tokio Marine Holdings.

Supporting
customersin their timesof needGlobal Risk Diversiﬁcation
See pp. 27‒29

Global Integrated Group Management
See pp. 30‒33

Vice President Executive Officer
Co-Head of International Business

Christopher Williams

Risk Diversiﬁcation Using M&As
Insurance is a business that underwrites risk. Under no circumstances

We have executed international M&As in the cumulative total value

can we allow the foundations of our business to be shaken. This isof over two trillion yen, using the capital and funds generated from thewhy the Group has spent more than 15 years working to expand its

sale of business-related equities.

insurance business overseas where there is a low correlation with

As a result, the diversiﬁcation eﬀects have risen to 47%, which has

natural disasters in Japan. These eﬀorts are intended to balanceenabled us to control the impact of COVID-19 and large-scale natural

appropriate control of risk amount and sustainable growth bycatastrophes on our business results below 30% even in the years wediversifying risks across geographic areas, businesses, and products.

experienced these events.

▶Eﬀect of Risk Diversiﬁcation
11%

11%

1

FY2013
Diversification
effect

13%

30%

27%

19% Pre-diversification

Group Strengths

Alwaysthere forcustomers

More than seven years have already passed since HCC Insurance Holdings, Inc. (TMHCC), where I was CEO,

4.3 trillion
yen

27%

Post-diversiﬁcation
risk capital

33%

47%

27%

Pre-diversification
6.4 trillion
yen

10%

3.0 trillion yen

FY2023
Diversification
effect24%

Post-diversiﬁcation
risk capital

3.4 trillion yen▶M&A Transactions
2000

2007

2012

2015

2018

2020

Cover damages
and encourage
eﬀorts to tackle
challenges

Quickly restore
and prevent
recurrence( post-incident area)

Pursued business diversiﬁcation

Acquired in
February 2020

(insurance business/payments)

Management Foundation

Full-scale expansion into
Europe and the United States

Intellectual CapitalSocial Capital

GovernanceSee pp. 86‒93

See pp. 94‒97

See pp. 34‒43

See pp. 98‒127

Purposesee pp. 2‒7

Commenced operations
in June 2022

Pursued geographic diversiﬁcation
Secured strategic positioning forbusiness development in emerging markets
Growth and businessdiversiﬁcationin the United States

Human Capital■ Domestic Non-Life(Underwriting)■ Domestic Non-Life(Investment)■ Domestic Life
■ International■ Others

Purpose Story 2023

Eliminate
uncertainty byunderwriting risk

As an insurance business that underwrites risks all over the world, global
risk diversification is the cornerstone of our strategy to achieve business
management that would remain unshaken whatever situations we face.
Underpinning this strategy are our abilities to execute M&As and PMI andto manage our portfolio.

Strengthened expansion
into non-Japan business
Non-life
insurance inemerging countries

Life insurancein emerging
countries

Acquired in March 2008

Acquired inAugust 2018

Invested in
December 2018

Commenced operations
in February 2021

Acquired in May 2012

Acquired in October 2015

Acquired in December 2008

Tokio Millennium Re
Reinsurance subsidiaries

026

027

1 Purpose Story 2023 | Our Competitive Advantage | Global Risk Diversification

Closing of theKiln acquisition

Closing of the PHLY acquisition

Domains and Companies Targeted in M&A
For Tokio Marine Group, M&A is not a goal but rather a method for

non-life insurance in regions with large market size and high growth

global risk diversiﬁcation. Aimed at achieving this goal, our main M&A

potential. Furthermore, while more than 80% of the proﬁts of ourtargets in developed countries in Europe and North America areoverseas insurance business come from North America, our portfolio

companies with little overlap with our existing businesses in terms ofin this business is well diversiﬁed, consisting of business lines that docustomer base and products in the ﬁeld of specialty insurance while

not have much correlation centered on specialty insurance.

in emerging countries companies mainly with a personal line ofStringent Acquisition Guidelines Emphasizing Cultural Fit
To execute M&As in a disciplined manner, we adhere to the following

lists, the International Executive Committee (IEC), comprised of thethree principles: (1) acquire a business which has strong results and aGroupʼs C-level oﬃcers and head of the overseas insurance business,promising outlook; (2) acquire a business whose business results areholds discussions to carefully screen acquisition candidates, but

supported by a unique business model that cannot be emulated byusing quantitative metrics is not suﬃcient to evaluate an acquisition.

other companies; and (3) acquire a business whose culture, business

When seeking a cultural ﬁt, both parties need to feel certain throughpurpose, and management values are in alignment with those of Tokioin-depth conversations that the directions of our businesses and ourMarine. Based on these principles, we have identiﬁed and acquired

chemistry match.

“good companies” that are expected to generate a good return on

Closing of the DFG acquisition

Business Oversight Respecting the Autonomy and High Growth of Target Companies
In addition to cultural ﬁt, another characteristic of our M&A style thathigh proﬁtability, maintaining the target companiesʼ autonomy andremains unchanged today is that we respect the autonomy of thehaving them fully utilize their own strengths lead to further growthtarget company and avoid invasive acquisitions. There are few

after they join the Group. This is something I am convinced of fromcompanies in the world that use a federated approach to Groupmy time as President of Tokio Marine HCC (TMHCC), which in manybusiness operations like Tokio Marine. I believe that our integrated

cases used bolt-on M&A. In actuality, our large acquisitions ofapproach to Group management represents a unique business model.

Philadelphia Consolidated Holding Corp. (PHLY), Delphi Financial

On occasion, I am asked about business integration of an acquiredGroup, Inc. (DFG), and TMHCC, which drive overseas proﬁts, havecompany, but this would destroy the unique DNA of these companies.

shown growth above and beyond the market after joining the Group,

Since we acquire “good companies” with a strong business model andand Pure joins these three companies.

Forward-Looking Business Divestments

Tokio Marine has executed M&A deals giving top priority toinvestment.

cultural ﬁt, so conversely, there have been several deals that did not

Among these, we value cultural ﬁt the most. Looking back, culturematerialize because the cultural ﬁt was not there, even though thewas perhaps the single greatest factor in HCC (TMHCC) joining

guideline for high proﬁtability was met.

Tokio Marine Group.
identify deals and then compile long and short lists. Based on these

Optimizing our business portfolio is an ongoing process of not only

through such sale to execute the next acquisitions so that we canacquisition but also forward-looking divestments, as strategicallyfurther diversify risks and grow our business. Thanks to this approachnecessary to shake up our portfolio. As in the sale of Tokio Millenium

to portfolio management, our adjusted ROE has risen to 15.1% (forRe (TMR) in March 2019, we use the capital and funds generated

ﬁscal 2022 on a normalized basis).

Closing

Growth after Joining Tokio Marine Group*1

ROI from Large-Scale M&A*2

Our proven M&A track record and reputation will help us to ﬁnd the next

businesses determined to lack contributions to diversiﬁcation and growth

great M&A opportunity. This is one of our major strengths that few

and allocate the capital and cash generated to further diversiﬁcation andcompetitors can easily match.

growth. By continually engaging in this disciplined form of portfolio

We are able to simultaneously achieve risk diversiﬁcation and business＜Bottom-line＞＜Top-line＞＜Bottom-line＞＜Top-line＞＜Bottom-line＞

17.2%

DFG
16.0%
Market
TMK

PHLY

6.6%

6.4%

4.6%
TMK
2007‒2022 CAGR

DFG
Market3.7%

Market

7.2%

PHLY
2.5%

7%

MarketMarketbusiness environment, we aim for sustainable growth while reining in risks

overlap in terms of customer base and products. At the same time, we sell

and as a result increase the capital eﬃciency of the entire Company.

▶Stringent Acquisition Guidelines

7.3%

Cultural fit

Target(three principles
of M&A)

2011‒2022 CAGR

-189.8%＜Top-line＞＜Bottom-line＞＜Top-line＞

Acquired and
Newly EstablishedIN＜Bottom-line＞

management and evolving this approach based on changes in thegrowth by acquiring “good companies” with low risk correlation and little

5.2%

Market-2.5%

2007‒2022 CAGR

-3.1%

Capital Cost

1
Purpose Story 2023

We have a market intelligence (MI) function internally that we use to＜Top-line＞

Closing of the HCC acquisition

HurdleRate

High profitability
Strong business model

March 2008

December 2008

May 2012

Capital高い収益性
costs (7%)+ Risk premiums+ Country interest rate spread

October 2015

February 2020

June 2022

Pure
37.5%
Pure
TMHCC

16.6%

10.6% Market
5.5%

TMHCC
3.4%

2014‒2022 CAGR

028

Market-4.8%

Market6.6%
2019‒2022 CAGR

MarketN/A*1 Our top and bottom line are written on a local accounting basis(Pureʼs top line is the premiums under the management company).
The markets are TMK (all Lloydʼs companies) and other (North American
non-life insurance).
Source: Lloydʼs Annual Report and S&P Capital IQ*2 The ROI numerator is calculated using a simple sum of forecasts by sector
at the beginning of 2023, and the denominator is calculated using a simple
sum of acquisition values.
(The concept differs from ROE (= RoR ÷ ESR), which reflects diversification
effects).

▶Forward-Looking and Disciplined Portfolio Review
Divestment/
Run-off
OUT

Non-Japanesebusinessin Europe*1
January 2019

March 2019

Egyptian Life
Takaful Company

Highland*2

TMK Reinsurance
Business

September 2020

August 2022

September 2022 Run-off*1 U.K. non-Japanese business and some unprofitable non-Japanese businesses in other European regions (continuing the Lloydʼs business)*2 Agent handling construction insurance in the Tokio Marine Highland (former WNC) group owned by TMK029

1 Purpose Story 2023 | Our Competitive Advantage | Global Integrated Group Management
Global Integrated Group Management
Bringing together global insights to decide and execute important management matters
Talent acquired through M&A play an active role and contribute greatly to the growth of the Group
Dedicated to strengthening the talent pool responsible for future Group management

Culture Fit and the Right People in the Right Places through Talent Management
While we position M&A as a means of diversifying risk, we also

including the top management of companies we acquire into ourbelieve that the greatest achievement of M&A thus far is thehead oﬃce management, ambitious personnel are given roles andacquisition of superior talent, expertise, and knowledge that comes

opportunities to manage the entire Group through participation inwith it.

global committees, etc., on top of their current role. This is a positive

Tokio Marine acquires companies that have a similar culture to it
from the outset. By promoting PMI while respecting the autonomy anduniqueness of the businesses we acquire, rather than leaving theirstimulus for the head oﬃce employees, and it creates synergies
through friendly rivalry.
Our unique Group-wide management policy is becoming morejobs, employees work enthusiastically and stay highly motivated. Thisestablished as we enter our eighth year of operation and is being

can be seen from high Culture & Values Survey scores. In addition to

implemented while drawing on a wide range of global expertise.

Optimized allocation of our Talented Workforce globally to strengthen integrated group management
By increasing the number of overseas officers and the appointment of chief officers,
we will bring together global insight to decide upon and execute important management matters.

Appointmentof Joint
Group
Leaders

Donald Sherman

Christopher Williams

Robert O Leary

Executive Vice President
Co-CIO

Executive Vice President
Co-CRSO
Co-Head of Intʼl Business

Managing Executive Officer

José Adalberto
FerraraSusan Rivera

Brad Irick

John Glomb

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Steady Evolution and Succession
Our Integrated Group Management is also featured at Harvard

Deputy CxO

Utilization of Expertise

Legal Affairs

DigitalReserving

Business School as a case study. When expanding overseas, aswith the so-called ﬁrst generation. It is important to nurture the next
generation of talented management and pass the baton̶and we are

Gus
Aivaliotis

Daniel Thomas

opposed to staying separate by establishing an intermediate holding

Randy
Rinicellacompany which specializes in overseas business, we dared to choose

taking steady steps toward achieving that. We also leverage our “TLI,”

Deputy CLCO

Deputy CDO

the more diﬃcult path making our company itself international anda Group-wide, global human resource development program launchedglobal.

in April, as a gateway to success for next-generation management

In the beginning, trial and error led to diﬃculties, but now we havepersonnel. We will continue to work on our talent development andmore than 10 global committees that decide and implement importantsuccession planning linked to global talent management, which we

management matters on a daily basis, and it is evolving as one of ourhave been driving forward since 2019.

Leverage
Group
ExpertiseIT

D&I

Robert
Pick

Caryn
Angelson

Deputy CITO

Deputy CDIO

Cyber Insurance

Daljitt Barn

Internal Audit

Dawn Miller

Reinsurance

Barry Cook

1
Purpose Story 2023

strengths. However, these mechanisms and approaches cannot end

Auto Pricing

Allen Juang

Creating Synergy through Culture Fit
Employees work with enthusiasm and contribute to growth

Tokio Marine Group Leadership Institute (TLI), established in April 2023
A unique training program aimed at producing management leaders who will promote
the integrated group management on a stable and continuous basis▶Features of TLI

Almost 15 years have passed since we joined Tokio Marine Group in 2008. Since then, our company
has more than doubled our revenue. Our workforce has increased to more than 2,000 from 1,400.
We have been able to achieve such remarkable growth not only because we were blessed with theopportunity for a wealth of synergies that led to increased revenue and profits but also because, as thebasis for this growth, Tokio Marine respected our autonomy after joining the Group, and due to this, we
believe that each and every one of our employees continues to play an active role.
I have been approaching work with my “motto”, “Always maintain a positive mental attitude,” and thetime spent with colleagues around the world working together in the culture of our company keeps me ina positive mood.
Needless to say, it is important to trust each other in terms of autonomy and collaboration between
Group companies. The more our teams interact with one another, the better we understand each otherʼs
product appetite, which can lead to more successful synergy opportunities. There is no doubt that thefact that Tokio Marine Group and our company are united by the spirit of “Good Company,” that we sharethe same purpose, and that we were able to achieve a true culture fit, contributed greatly to our growth.

030

Executive Officer
President and CEO of
Philadelphia Insurance Co.

John Glomb● Consolidation of talent management data fromGroup companies● Program design linked to talent management data

● A structure linked with global recruitment ofyounger generation/mid-career employees● Commitment by current global management
to the development of next-generation
leaders● Succession of our purpose and values● Gather and utilize global wisdom on leadershipdevelopment● Strengthen cooperation with Group companies

and HR departments on a global basis● Offering experience to deal with difficulties inand out of the Group031

1 Purpose Story 2023 | Our Competitive Advantage | Global Integrated Group Management

Penetration of Our Purpose as a Foundation
We continue our eﬀorts to instill our purpose and culture into our more than 40,000 employees
worldwide. Led by our CEO, who also serves as the Group Culture Oﬃcer (CCO), we conduct

Visiting areas affected by the Great
East Japan Earthquake and Tsunami

Good Company Awards 2022

Regular Distribution ofManagement Messages

physical and remote dialogues with Group employees around the world to discuss our purpose. All
on-site employees contemplate the question, “What is our business for?” with sincerity while theyGood Company Booklet for worldwide distribution

consider how our work contributes to customers and society, and how we can address thechallenges presented to us by customers and society. These present opportunities to think about
the Companyʼs purpose and reaﬃrm the signiﬁcance of our work. In addition to the above,

Used worldwide as a tool to help employees think about and discuss our companyʼs purpose and culture with their co-workers

managementʼs thoughts and feelings about our purpose and culture are regularly conveyed via
video messages. We use these messages as tools in “Majikirakai” meetings worldwide and in
workplaces, in which serious discussions take place in a relaxed atmosphere, regardless of divisionand position. By steadily continuing these down-to-earth initiatives that unite the management andthe workplace, we aim to be a company whose purpose reaches every corner of the world, andwhose passion and sense of unity are second to none.

Video messages from the Group CEO are
distributed almost monthly and feedback issought from employees, facilitating
two-way communication

Dialogue aimed at penetration of our purpose (“Majikirakai meetings)
Making use of remote and in-person opportunities globally, top management hold dialogue with management
and employees to spread the message of the Companyʼs purpose.

1
Purpose Story 2023

Strengthening Governance through Our Purpose
Globally, we have shared our culture of aiming to be a “Good

down since the late 1800s. This was the era of Eiichi Shibusawa,Company” based on the spirit of “Look Beyond Proﬁt.”

who was instrumental in the establishment of our company.

“Although itʼs not written in the rules or manuals, we do not do

through the spirit of autonomy and self-control. We want to further

in the right way.” This stance and way of thinking reaches not only

evolve our corporate governance by combining Japanese-style

our board of directors and management, but also every employee

governance, which is in line with our culture, social norms, strengths,around the world. It is one form of governance we pursue.

and way of thinking, with the best aspects of Western-style

For us, governance that leverages the advantages of being a032

In other words, Japanese culture facilitates the control of things

things that a Good Company wouldnʼt do,” and ”we do the right thing

governance. It is a big challenge, but it is what we are always aiming

Japan-based company is governance based on the permeation

for, and we believe it is possible. This approach is truly an endlessof culture. In recent years, it has been called purpose-driven

journey. We intend to further evolve our unique integrated groupmanagement, but in Japan, this kind of governance has been handed

management through the penetration of our Purpose and Culture.

033

1

Purpose Story 2023 | Expanding the Possibilities | Expansion of Business Domains

Expansion of Business Domains
our internal capital (human and intellectual)̶which is indispensable
for future growth̶and continue to create while collaborating with oursocial capital (various external partners). We believe that these two
facets will allow us to keep expanding our business where we provide
value.

▶Utilizing and strengthening internal capital(human and intellectual)▶Co-creation with social capital(external partners)

We have cultivated extensive expertise through our core insurance

To continue realizing our purpose in the future, we are expanding ourbusiness, including claims service capabilities and data use

business beyond insurance into the area of “pre- and post-incident.”

technologies. We are now applying this know-how to new businesses

Since some elements of this are new to us, it is essential that we(e.g., the fee business) to create new proﬁt opportunities.

utilize the diversity within the Company as well as that outside theCompany. We are redoubling our eﬀorts to provide new value
to our customers and local communities by bringing together theknowledge and technology of external partners, including the Disaster
Prevention Consortium (CORE).

The potential of these new value-creation areas is massive, and we
see this as an area that will expand to several tens of billions of yen
in 10 years. We will ﬁrst focus on developing our business in Japan̶
a country with major societal challenges̶while accumulatingknow-how and securing a competitive advantage. We will work to
make our new business a reliable source of revenue alongside ourexisting businesses, with a view to overseas expansion in the future.

1
Purpose Story 2023

We will continue to refine ourinternal capital (human and intellectual)and broaden the areas in which
we provide value throughcollaborative creation with social
capital (our various external partners).

Up to this point, we have illustrated our history of achieving our
purpose and growing by addressing societal challenges, and haveshown our strengths that support this growth.
To continue supporting the needs of our customers and local
communities and generate further growth, we must continue to reﬁne

Cyber

Increased Risks
Increased Needs

Healthcare

EnergyInsurance business

Always Support

Internal capital

Expansion ofpre-incident area(human and intellectual capital)

Less-capital intensive
fee business(various external partners)

Prevent accidents,
detect signs of illness×
Social capital

Always Support
Expansion of
post-incident area
Early recovery,
prevent recurrenceLess-capital intensive
fee businessInsurance business

Mobility

Increased Needs
Increased Risks

Disasterprevention
and mitigation

SME
034

035

1 Purpose Story 2023 | Expanding the Possibilities | CORE
Disaster Prevention Consortium CORE
commercialization this summer. Particularly of note are thesimulations of “real-time hazards,” in which AI is used to analyze
security camera footage in the event of a water-related disaster andvisualize ﬂooding in real time, and “resilience information distribution
services” which visualizes weather information and centrally manages
the risk status of registered locations, with a focus on local
governments.
In this way, we intend to expand this business as a new
proﬁt-earning opportunity for the Group, while contributing to disasterprevention and mitigation throughout Japan, leveraging broadcollaboration across industry boundaries.

The value chain and estimated business scale
in disaster prevention and mitigation
Measurement and risk visualization

Market size*1

250 billion yen

iness
bus
g
rin
ito
on

c

Captu
re
the

ness

ata

ac

r

ov

Un

de

d

di

er

sa

st
ec

er

yb

u si
lo g
ness
eoro
❸ M etr stan
Insuding theranc da m age
st a t u s
e pay
m ent

Disaster prevention measuresand implementation

・Disaster risk assessment of infrastructure, etc.
・Disaster prevention consulting (including BCP)lica

AI analysis of flood depthanAlerts (flooding map)

Example ❷ Resilient Information Distribution Service(from July 2023)

b usi

io

Ev

s te

isa

es

1

rd

i

ld

u

at

il d

i ti a

bu

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❹ In

li v

From 1 million yen/yearp

Emergencyng

Estimatedamount*2

Purpose Story 2023

Measu
res
an
di

Ordinary
Times

Example ❶ Real Time Hazard (scheduled to start in FY2023)

・AI analysis of security camera footage
Assessing the depth of flooding in real time andissuing alerts
・More effective evacuation instructions in the eventof a water-related disasteriness
ng bus
sulti
con

atus
t st
ren
ur

❷ Comp
rehen
sive
dis
ast
er

Specific examples of solution creation

n
tio
en
rev

m

Geology, water quality, grounddeformation, etc., can be continuously
measured by sensors and satellites, etc.

tion
enta
lem
mp

Collaborative creation in thedisaster prevention andmitigation businesses bycombining technologies
and data possessed by companies
and organizations in a broad
range of industries

We are strengthening our eﬀorts around “disaster prevention andmitigation” in the “pre- and post-incident areas” to support ourcustomers and local communities. As of July 2023, more than
100 companies from a wide range of industries are involved in the
consortium, and the number of subcommittees has expanded to cover
10 themes (see p. 96 for details). Thanks to the activities of thesubcommittee, there has been further study of solutions directly
related to the four areas within disaster prevention and mitigation(capture the current states, measures / implementation, evacuation,and rebuilding livelihoods), as well as increased collaboration among
participating companies. We will ﬁnally enter the phase of concreteandDisaster Prevention Consortium CORE

❶ Me
asu
rin
g

Co-creation with social capital (external partners)

EstimatedamountFrom 336,000 yen/year

・Visualizing real-time weather information on a map andcentrally managing risk conditions at registered locations
・Alerts sent out based on risk level

Market size*1

1trillion yen*1 Market size of businesses predicted to have synergies with insurance in 2030, according to research firms*2 Varies depending on the number of cameras installed, including initial costs and operating costs

036

037

1 Purpose Story 2023 | Expanding the Possibilities | Loss Services
Initiatives That Leverage the Strengths of Loss Services
Using and strengthening internal capital(human and intellectual capital)

Initiatives that leverage the strengths of loss services

administrative procedures for loss investigation related to mutual
aid insurance for automobiles.
Through this initiative, we aim to cooperate beyond theframework of insurance and mutual aid, while playing a role as acompensation provider on a permanent basis. This is exactly inline with our Group mission to protect our customers and local
communities in times of need.
We believe that by thinking diﬀerently and utilizing intellectual
property and know-how related to loss services that have beenamassed over many years in the domestic P&C insurance
business, we will be able to identify growth potential in thedomestic market, create new income-generating opportunities, andmake more eﬀective use of our management resources.
Since 2020, we have been utilizing satellite data to assess
ﬂood damage and speed up insurance payments, and we intend
to use the satellite data expertise we have built up through these
initiatives to work with local governments and private companies toaddress social issues.
Thus, we are carrying out many initiatives to leverage thestrengths of our loss services, and we will continue to hone thesestrengths to achieve outstanding results in the future.

Initiatives that leverage the strengths of loss services
Case Study ❶ Business alliance with Kokumin Kyosai co-op

Case Study ❷ Utilization of satellite data

・Develop and offer mutual aid procceds payment system
・Consignment of part of auto mutual aid loss adjustment business, etc.

・Tokio Marine has leveraged satellite since 2020
for prompt insurance payment for flood claims

Investment
ratio

Investment
ratio

80%

NEW

・Currently considering selling the know-how ofutilizing satellite data to local government, etc.
(Projecting an average of 50 million yen pertransaction)

1
Purpose Story 2023

Extensive experience in thedomestic P&C insurance business
Utilizing intellectual property
and know-how pertaining to loss
services to contribute toaddressing societal challenges
New initiatives

Through its core insurance business, Tokio Marine Nichido has
developed expertise in loss services that allows it to pay claims
promptly and correctly to customers. Recently, the Company has
been leveraging this expertise to address social issues along withother businesses.
For example, in 2022, we entered a business alliance with
Kokumin Kyosai co-op, and in October, we established a joint
venture, Kyodo Jimu Chosa Services Co.
From the moment a customer is involved in an accident until the
payment of insurance or a mutual aid claim is completed, various
tasks must be carried out, such as entering accident information
into the system, sending claim documents, contacting thecustomer, calculating the amount to be paid, and making a payment
decision. Utilizing Tokio Marine Nichidoʼs expertise in these areas,
Kokumin Kyosai co-op plans to review its business processes andreform its systems to make procedures more convenient andoperations more eﬃcient for its members and policyholders.
Kyodo Jimu Chosa Service K.K. will develop a mutual aid
payment system to support the new business process being
restructured by Kokumin Kyosai co-op, provide the systemʼsfunctions to Kokumin Kyosai co-op and take care of the20%

Kyosai Jimu Chosa
Service K.K.

Expected Impact

Expected Impact

・Bottom-line impact equivalent +6
billion yen p.a.* from fiscal 2025

・Fundamental reform of loss adjustment
operation, reduce operation cost

・Further improve business efficiency,
etc.

・Improve convenience of members andpolicyholders, etc.

*Bottom-line effect from recovery of labor costs, system-related costs, etc.

038

039

1 Purpose Story 2023 | Expanding the Possibilities | TdR
Creating Solutions Centered on Tokio Marine dR (TdR)
Using and strengthening internal capital(human and intellectual capital)

Tokio Marine dR (TdR)

Our digital technology anddata are the source of ourcompetitive abilities.
Starting TdR and providing
unprecedented added value

In both the insurance business, which protects customers and local
communities against increasing and increasingly complex risks, andthe pre- and post-incident areas, which help with accident prevention,
early recovery, and recurrence prevention, the ability to gather,analyze, and utilize data is critical for widening the areas in which
we provide value. Key in this area is Tokio Marine dR (TdR), which
serves as the Groupʼs core data company.
In addition to TdRʼs strengths in intellectual capital (the hugeamount of data and analytical capabilities accumulated throughunderwriting and accident response) and human capital (a team ofexperts with extensive, state-of-the-art capabilities), the Groupʼsadvanced digital capabilities are integrated into TdR. They are thenleveraged to develop and put out a series of data-driven products
centered on Tokio Marine Nichido, such as underwriting using
high-tech data analysis methods, providing new data solutions, anddeveloping embedded insurance.
Through collaboration with external partners, we will continue toprovide unprecedented added value and solutions that contribute toaddressing social issues, while accumulating data and oﬀering models
to our customers.

The strengths of Tokio Marine dR (TdR)

Expansion of Group capabilities

Intellectual capital

Human capital

Data expansion

Expanding the models on offer

Huge amounts of data,
data analysis, solutions,and development
capabilities

A group of experts
possessing
state-of-the-art capabilities

Disaster prevention andmitigation platforms

Collaboration withbolttech and others

Matching companies holding
risk information with thosethat require it
Building data platforms,
customizing data,
and realizing sales

Building a fully digitalized
insurance offering procedure

Accidents and disasters
Risk consulting data, etc.
Data analysis and processing
environments such as
Databricks, Snowflake*2

258

339*1

・Risk consultants with the relevant
knowledge of engineering, science,
environmental studies, sociology, etc.
・Data scientists
・System architects
・Persons experienced in insurance
product development, etc.

1
Purpose Story 2023

*1: Number of employees in 2020 → Number of employees in 2022
*2: Analysis platform SaaS that enables flexible and immediate scaling of data processing volume and speed

Examples of actual solution
Case ❶
Underwriting using advanced
data analysis

Providing data solutions(insurance products and fee business)

Case ❸
Embedded insurance deployment

Insurance with risk mitigation services

Wind damage risk diagnosis

Embedded insurance

Analyze customers facility repair dataand provide integrated solutions that
support optimal insurance programs andreductions in repair costs

Provide diagnostic services related to therisk of typhoons and other windstorms as
an adjunct to fire insurance, using aerial
photography and proprietary accident data

Expanding the functionality and convenience ofpartner products and services while enhancing
the customer experience by incorporating awide range of digitally complete insurance
policies into the usage experience and purchasepath of the digital services of external partners

Risk visualization services

Opening of TokioMarine X

・Natural disaster risk assessment for solar
power generation facilities
・Cyber risk scoring, etc.

We established TokioMarineX as a small amount,
short term-insurance company centered onembedded insurance, which provides white-label,digitally complete insurance, systems, andmarketing methods in a single package throughalliances with a broad range of business partners

Financial Institutions professional
indemnity liability insurance
Provide compensation for a broad range
of operational risks that financial
institutions are exposed to by analyzing
loss data and developing proprietaryvaluation models

040

Case ❷041

1 Purpose Story 2023 | Expanding the Possibilities | DX Investment
DX Investment
Co-creation with social capital (external partners)

DX investment

Incorporating external
diversity into the Groupand expanding our possibilities

To continue to address the social issues that are expected toincrease and diversify along with the development of humankind, we
comprehensively invest in digital companies and start-ups. By
investing in promising start-ups and venture capital ﬁrms, we havebeen acquiring and utilizing know-how that helps us expand our value
delivery area. In addition, we invest in a wide range of early-stage
companies, mainly in the InsurTech area, via our corporate venture
capital, launched in the United States in April 2022. The scale of ourinvestment to date is several tens of billion yen, and 15 of ourinvestment projects have already been launched in the form ofbusiness alliances. There is a wide range of areas in which we
believe we can provide value, including healthcare, mobility, and GX.
We have also invested more than 100 million yen in nurturing digitaltalent.
We will continue to incorporate external diversity into the Group to
further expand the areas where we can provide value.

DX investments in growth areas (examples)

Healthcare

HR TechMobility

Green / Supply Chain

Nat Cat1

Green / Supply Chain Examples

Insurtech / Fintech

Insurtech / Fintech Examples

Supporting the Transition to Circular Economy

Global Expansion of embedded insurance

Reduction of Waste and Promotion of Recycling
through Insurance Business(Recovery and Reuse of Damaged Goods in Property
Insurance)

Capital and business alliance with bolttech, one of
the largest insurance exchange platform in the world

・A partnership with JEPLAN, a company with proprietarychemical recycling technology that plans and operates projects
to collect and recycle clothes, plastic bottles, etc.

・Development and provision of embedded insurance

・Development of the new insurance product to compensate forrecycle and logistics costs of damaged textiles and beveragebottles in accidents instead of wasteing
・Aiming to create a society Insurance enables Circulation

Purpose Story 2023

Deep Tech

Developing and providing embedded insurance in various global
markets, including platforms for e-commerce businesses in Japanand overseas

・Use of digital platforms

Creating a new fully digital insurance enrollment process using
bolttech s digital platform, which can be rapidly and flexibly
customized.

・Expansion of the warranty business

Expansion of the warranty business with a focus on Asia

042

043