2023
2023
Integrated
Integrated
AnnualAnnualReport
Report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

n

Re

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

2

Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | CFO Message

We aim to maintain theworld s top-class EPS
growth and lift the levelof ROE equivalent toglobal peers through theimplementation of adisciplined capital policy.

Kenji Okada
Senior Managing Director
Chief Financial Oﬃcer (CFO)▶Track Record of Disciplined Capital Management
Average of the Past 5 Years (2018‒2022)

Average of the Past 10 Years (2013‒2022)(billions of JPY)

(billions of JPY)

Business investment
89.5*1
Capital-level adjustment
85.0

400.0

Business investment
143.4*1

369.2

Capital-level adjustment 67.5

Ordinary dividend
154.8
Adjusted net income

Increase inadjusted ROE

Ordinary dividend
120.6

Capital utilization

Adjusted net income

10.5%

Capital utilization

9.9%*1：Combined only with the amounts disclosed (acquired from Refinitiv Eikon)

Organic Growth
Our capital strategy is built upon a three-pronged
approach. First, we will strategically review our portfolio
based on organic growth and expedite the divestment ofbusiness-related equities to generate capital and funds.
Second, we will channel the capital and funds into strong
business investments. Third, if there are no favorable
investment prospects, we will prioritize returning capital toshareholders, aiming to bolster ROE and maintain a balanced
capital management cycle. In the following sections, I will
provide a comprehensive explanation of each of thesecomponents.

▶Capital Management Cycle

Capital adjustment

Capital generation

Organic
GrowthBusiness
Investment

Sustained stable domestic earnings
Strengthen specialty companies
in developed countries
Capture growth potential
in emerging countries＋

Disciplined andstrategic M&A
Disciplinedrisk-taking

For instance, I collaborate with the senior leadership ofeach business to address shifts in the business landscape,evaluate strategic advancements, and determine if any
adjustments are warranted. Additionally, I play an active rolein shaping the forthcoming Mid-Term Business Plancommencing next ﬁscal year.
In ﬁscal 2022, both domestic and overseas Group entities
eﬀectively executed their management strategies, achieving
growth beyond market norms in appealing sectors.
Consequently, on a normalized basis, adjusted net income
surged to 617.1 billion yen, a year-on-year gain of 22%, andadjusted ROE rose to 15.1%, up 2.4 percentage points year
on year.

Adjusted Net Income*2

Adjusted ROE(billions of JPY)

Shareholder
ReturnDividend increase
Flexible capitallevel adjustment

505.4*6
Domestic
Non-Life*3

164.7

Domestic Life*4

51.1

International

232.2

Other*5

57.4

−20.1

144.6

444.0

44.9

109.4

+123.0

355.2

218.6

4.7%
72.4

79.6

2022Normalized

2022Actual(Reference)*3: Domestic non-life insurance = TMNF
*4: Domestic life insurance = TMNL

ESG for Sustainable Growth

2

36.4

*2: The breakdown of adjusted net income is the profit of each business unit.

Strategic capital release
Appropriate risk control(Reference)2022(Actual)

11.1%
15.1%

617.1*7

2021Normalized

Portfolio Review

044

Our approach does not align with the typical “shrink togrow” strategy. Instead, our key focus for boosting ROE
revolves around molecular expansion, or “organic growth,”
speciﬁcally aiming for the worldʼs top-class EPS growth.
The characteristics of our portfolio are (1) a domestic
market foundation that generates stable earnings,(2) growth of specialty companies in developed countries
encompassing less correlated business lines, and (3) highgrowth in emerging countries such as Brazil and Asia.
In my role as Group CFO, I contribute to the growth ofeach business by actively engaging in the management
strategies developed by each business, which areformulated based on capital allocation and other measures.

Strategy and Business Platform Supporting Our Purpose Story

Tokio Marine Group aims to lift the level of ROE by realizing
strong profit growth in both insurance underwriting and asset
management, while maintaining a disciplined capital policy.
Despite increasing adjusted return on equity (ROE) to 15.1%
in fiscal 2022, we acknowledge that this result has been
influenced by factors such as the reduction in net assets due
to rising interest rates, which is applicable to the entire
industry. As such, we are not content with this figure alone
and are determined to enhance ROE at its core, elevating it
to a level that aligns with our global peers. In my capacity asGroup CFO, I am devoted to leading these efforts, particularly
focusing on capital policy considerations.

*5: Other domestic non-life insurance, financial, and other businesses, and gains relating
to sales of business-related equities, etc., that are not included in business unit profits

2011(Normalized)

2022(Normalized)*6: The following one-time effects totaling +72.9 billion yen were excluded from the fiscal
2021 actual result of 578.3 billion yen: 1) Natural disasters: Approximately +17.0 billion
yen, 2) North American capital gains, etc.: Approximately +24.0 billion yen, 3) COVID-19:
Approximately +23.0 billion yen, and 4) Gains on the sale of business-related equities:
Approximately +9.0 billion yen (on the portion of sales exceeding 100.0 billion yen)
*7: The following one-time effects totaling 173.1 billion yen were excluded from the fiscal 2022
actual result of 444.0 billion yen: 1) Natural disasters: Approximately 26.0 billion yen, 2)
North American capital gains, etc.: Approximately 10.5 billion yen, 3) COVID-19:
Approximately 134.0 billion yen, 4) Conflict: Approximately 14.0 billion yen, 5) South African
floods: Approximately 4.0 billion yen, and 6) Gains on the sale of business-related equities:
Approximately +15.0 billion yen (on the portion of sales exceeding 100.0 billion yen)045

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | CFO Message
Portfolio Review/Business Investment
Under this guiding principle, we have pursued disciplined andstrategic approaches to various entry (M&A, etc.) and exit
(divestment, etc.) opportunities, considering risk diversiﬁcationand future growth prospects. For instance, we have undertaken
initiatives such as the acquisition of Pure Group, establishmentof a local entity in Canada, and bolt-on M&A through Delphi
Financial Group (Standard Security Life Insurance Company) andTokio Marine HCC (Gulf Guaranty Employee Beneﬁt Services,Inc.). Simultaneously, we have divested from reinsurance
subsidiaries and Tokio Marine Kilnʼs subsidiary Highland, allaimed at achieving optimal capital allocation.
Following a review of our capital structure, we issued hybrid
bonds when we acquired Pure in consideration of capital costs.
In the future, we will also explore the use of hybrid bonds asnecessary as one of the means for achieving the optimal capital
structure while preventing equity dilution.
From a capital restructuring perspective, we have been
consistently reducing business-related equities for over 20 years.
Recently, we announced our intention to sell more than 600
billion yen worth of business-related equities over the next four
years, to 2026. We intend to prudently utilize the capital
generated from this accelerated divestment.
By following this approach, we have consistently enhanced
our corporate value by eﬀectively refreshing our risk portfolio.
Looking ahead, we will maintain proper risk control while
accelerating growth through well-considered capital allocation.

Proﬁt Composition*1

Japan 44%

International 42%(of which, life
insurance 6%)

FY2023670.0
billion yen

FY2013216.0
billion yen
Japan 58%
(of which, life
insurance 3%*2)

International 56%*1 The breakdown of profit is based on the profit of each business segment (yearlyplan), except “Other businesses” are included in “Japan.”*2 Profit on a financial accounting basis for TMNL

2

Accelerated reduction of business-related equities

Sale proceeds(billions of JPY)

150

▶Achieving Growth through a Flexible Capital Strategy
Use ofequity capitalUse of hybrid capital

Improve
ROE

Sale of over 600.0 billion yen
worth over four years

Investment for further growth
February 2020 acquisition(using hybrid bond)Hybrid capital(liability with a capital nature)

October 2015
acquisition

Capital equity(shareholdersʼ equity)

Strategy and Business Platform Supporting Our Purpose Story

As an insurance company, we increase returns by taking risks ininsurance underwriting and asset management as a key to ourbusiness. We have positioned Enterprise Risk Management(ERM) as the cornerstone of Group management. ERM takes into
consideration our risk appetite, to what extent we undertake risks(risk strategy), whether return on risk is suﬃcient, and whether
risks are appropriately diversiﬁed (see pp. 50‒53). We have alsoestablished the ERM Committee to discuss ERM strategy. As theCommitteeʼs chair, I assess the growth potential and proﬁtabilityof all businesses and the risks associated with each strategy in a
forward-looking manner and formulate a capital allocation plan to
optimize the business portfolio from a Group-wide perspective.
From the standpoint of business investment, we often receive
inquiries during our dialogues with the capital market about “thenext step in M&A.” However, for us, M&A is a “means” for risk
diversiﬁcation and proﬁt growth, rather than being an ultimate“goal.” Therefore, we deliberately refrain from setting an “M&Abudget” or a “proﬁt plan dependent on M&A.” In the case oflarge-scale M&A opportunities, we generally perceive current
valuations to be inﬂated. Consequently, we believe thatexercising patience is crucial as we engage in Market
Intelligence activities, constantly monitoring long and short listsof potential acquisition targets, and carefully selecting “promising
companies” that oﬀer a suﬃcient return on investment (ROI).
Concurrently, we proactively seize opportunities for smaller-scalebolt-on M&A, capitalizing on the experience and insights within
the Group to execute these initiatives consistently.

Risk diversiﬁcation through the expansion of our international business

Execute disciplined
strategic M&A

May 2012
acquisition
December 2008
acquisition

・ Initiatives for growth・ Diversiﬁcation ofregions andbusinesses
・ Improvement of
capital eﬃciency

100
2020

2021

2022

2023

2024

2025

2026

March 2008
acquisition

046

047

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | CFO Message
ROE

Shareholder Return
increase in DPS compared with the previous year, marking
the 12th consecutive year of dividend growth.
We use share buybacks as a means of adjusting capitallevels and decisions will be made based on comprehensive
consideration of economic solvency ratio (ESR), market
conditions, opportunities for M&A, and additional risk-taking.
Given our ESR of 124% as of the end of March 2023, wellwithin the target range, our approach for ﬁscal 2023 is toimplement a ﬂexible share buyback plan of 100 billion yen
throughout the year, with an initial resolution of 50 billion yen
made in May.

Tokio Marine Group regards dividends as the basis ofshareholder returns and our basic policy is to sustainably
increase dividends per share (DPS) in line with proﬁt growth.
Speciﬁcally, we calculate ordinary dividends based on our
5-year average adjusted net income to temper volatility andapply a dividend payout ratio that aligns with global peer
standards. For ﬁscal 2023, against the backdrop of
consistent proﬁt growth, we have been steadily expanding thefoundation for dividends, our 5-year average adjusted net
income. As planned, by raising the dividend payout ratio tothe targeted global peer level of 50%, we forecast a 21%

As a result of these initiatives, our adjusted ROE has been
consistently above the 7% cost of capital. However, as
mentioned earlier, we recognize that this level is not yet
satisfactory. Our goal is to achieve the worldʼs top-classearnings per share (EPS) growth while executing disciplined
capital policies, aiming to elevate our ROE to a level on parwith our global peers.

▶Adjusted ROE Is Trending Above the Cost of Capital of 7%
16.0%

Impacts of COVID-19
and natural disasters

Impacts of greatly above-averagedamage from natural disasters

14.0%
12.0%
10.0%

▶Dividend Growth

6.0%(+18%)

100

480.0

400.0

375.0

578.3

2020

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

▶Steady Improvement in ROE

2021

444.0

670.0

2022 result

2023 forecast

2024

2025

*1：DPS = Five-year adjusted net income × Payout ratio / Number of shares*2：Figures in parentheses are prior to the three-for-one stock split in October 2022.

2

Capital eﬃciency

Low2024‒2025 forecasts

The removal of ﬁscal 2019‒2020, which
had relatively low proﬁt levels(around 300 billion yen), from the ﬁve-year
average period, results in the rounding
up of dividend resources and DPS risingmore than single-year proﬁt growth.

17
(50)

2011

2011

High
0%

Low

Tokio Marine(2015‒2018)

OE

er R

High

Peer 1
Tokio Marine(2019‒2022)
Peer 4

Tokio Marine(2011‒2014)

3%

ROE
Standard Deviation

Peer 3▶Status of the Economic Solvency Ratio (ESR)(trillions of JPY)

124％
4.3
3.4
Risk*3

Net asset
value

140%
100%

Implement:● Business investment, and/or● Shareholder return

TargetRange

Strategically consider:● Business investment, and/or● Shareholder return●

Additional risk-taking, and/or

6%
20%

10%

ROTE: Adjusted ROE for TMHD; Peers: average of 2019‒2022 ona financial accounting basis
Peers: Allianz, AXA, Chubb, Zurich
Source: Bloomberg

Average ROTE

▶Reference: Price-to-Book Value Ratio (PBR) Is Currently Above One
1.4●

Additional risk-taking, and/or

1.3
1.2

Aim to recover the capital level through the accumulationof profit● Control the risk level by reducing risk-taking activities

1.1

De-risking
Consider capital increase● Review of the shareholder return policy

0.9

●

●
●

March 31, 2023
*3: Amount of risk calculated by a model using 99.95% VaR (AA-rated basis)

048

0%

Concept of capital management based on the Economic Solvency Ratio (ESR)
ESR

Peer 2High

Strategy and Business Platform Supporting Our Purpose Story

280.9
286.7
336.1

(billions of JPY);
gray is single-year
proﬁt

0.0%

(363)

(255)

67
(200)

5-year averageadjusted net income

121

(300)

85

(JPY)

2.0%

Volatility

DPS(+21%)+15

Cost of capital 7％

4.0%

+21

●Fiscal 2023 forecast (+21% YoY)
●Project 12th consecutive yearof dividend growth*1,2

Adjusted ROE(actual ﬁgure)
11.1%

8.0%

1.0

0.8
0.7

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022
049

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | CFO Message
Reference: Qualitative Risk Management

ERM*1 Framework
Finally, I would like to reiterate our commitment to Enterprise
Risk Management (ERM), which serves as a pillar ofmanagement. In concrete terms, we always maintain a keenawareness of the interplay between “risk,” “capital,” and“proﬁt” within the Group. By ensuring the adequacy of capitalin relation to risks and achieving high proﬁtability, we aim tosustainably enhance our corporate value.
*1: Enterprise Risk Management

Tokio Marine Group s ERM Structure and Initiatives to Strengthen it
The risks surrounding Tokio Marine Group are becoming morediversiﬁed and complex due to global business development
and changes in the business environment. In addition, intodayʼs uncertain and rapidly changing political, economic,
and social climate, we must constantly watch for the
emergence of new risks and take appropriate action. From
this point of view, we are not limited to conventional risk
management for the purpose of risk mitigation and avoidance,

but are comprehensively assessing risk in qualitative andquantitative ways.
In addition, we are continuing our eﬀorts to further
strengthen the ERM structure. For instance, we areenhancing risk assessments to include risks that are diﬃcult
to quantify, such as cyber risks, and improving natural
disaster risk management, including a review of ourreinsurance schemes.

▶ERM Cycle
Risk Appetite Framework

Quantitatively describes target levels
for capital soundness and profitability

Monitoring ofrisk exposure

Stress testing

Risk Strategy:

Outlines risk-taking policies for different
risk categories such as risk of major
wind and flood disasters (Japan), risk ofearthquake (Japan), and credit risk

Recognition andassessment ofmaterial risks*3

Measures* toaddress material risks
4*2: Emerging risks are new risks that arise due to changes in the environment or other factors, encompassing those that were not
traditionally recognized as risks and those that have increased markedly in severity. Specifically, these risks are identified
through internal discussions, considering results from subsidiary assessments and information from external sources.
*3: Material risks refer to risks that could have a substantial impact on financial soundness, business continuity, and othercritical aspects. Specifically, we focus on emerging risks as well as material risks from the previous business year within
the Group. We assess the impact (evaluating economic, business continuity, and reputational impacts) and consider thefrequency and likelihood to identify the most significant factors. We specify these risks using the following 5×5 matrix.

High
Degree of impact

Formulation of a capital allocation
plan based on business plans

Low

Emerging Risks
New risks that emerge due to changes in the environment or other factors, and that have not been previously
recognized as risks, or risks that have increased markedly in severity
Potential emerging risks
Emerging risks
for major Group companies

New emerging risks identified by the
CRO or risk management department

Emerging risks identified
in the previous fiscal year

Risk informationfrom external sources

1

2

Potential material risks
Material risks of the Groupin the previous year

High-impact risks
among the emerging risks

Emerging risks

2
Identification by matrix evaluation
Material risks

PDCA for material risks▶Examples of Emerging Risks
Examples of responses(1) Progressive deterioration of public infrastructure and corporate facilities◯Risk that insurance payouts will increase as growing deterioration of
public infrastructure and corporate facilities leads to frequent major accidents(2) Space risk
◯Risk that insurance payouts will increase due to widespread power grid failurescaused by geomagnetic storms and frequent communication disruptions
resulting from space weather and increased space debris(3) Innovations in medicine and biotechnology◯Risk that insurance payouts will increase due to innovations in cancer
diagnosis and genetic diagnosis technologies

Response to economic impact● Appropriately assess risks and develop products that meetcustomer needs, while generating stable profits throughrisk-appropriate underwriting, risk diversification, andarranging reinsurance● With respect to (4) shown at left, engage in research andanalysis on the impacts of climate change◯Risk that insurance payouts will increase due to intensifying environmental
degradation and disasters caused by global warming(5) Inadequate response to decarbonization (climate change transition risk)◯Risk of a decline in value of invested companies that lag behind in transitioning
to a decarbonized society, impacting the value of the Group s assets◯Risk that the Group s efforts towards decarbonization are perceived as
inadequate by society, damaging our reputation

Frequency and likelihood

Screening(4) Global warming (physical risks of climate change)

Material risk

High

*4: For material risks, we formulate response measures (Plan), implement these measures (Do), assess
the outcomes (Check), and make improvements (Act).
050▶Detection of Emerging Risks and the Process of Identifying Material Risks

Emerging risks/Scenarios
Capital and funding
sufficiency verification

Development of business plans
based on risk appetite

Qualitativerisk management
Identification of
emerging risks*2

Quantitative Risk Appetite Criteria:*5: Pre-emergence risk control measures include monitoring and risk management basedon the market environment and regulatory trends, while post-emergence risk response
measures include manuals (including business continuity plans) and mock drills.

Strategy and Business Platform Supporting Our Purpose Story

Quantitativerisk management

Qualitatively describes the policies regardingrisk-taking, including insurance underwriting
risk and asset management risk

are identiﬁed as “material risks.” For identiﬁed material risks, we
assess the suﬃciency of capital through the quantitative risk
management process described below, draw up control measures
before the risks emerge and countermeasures*5 to be taken if therisks do emerge, and conduct PDCA management.

Material Risks
Risks that have a signiﬁcant impact on ﬁnancial soundness, business continuity, etc.

Validation of business plans

Risk Appetite Statement:

In qualitative risk management, all risks, including risks that emerge
due to changes in the environment, are identiﬁed and reported
to management, while risks to the Group are discussed at the
management level as needed. Risks identiﬁed in this manner are
evaluated not only in terms of the economic loss or frequency ofoccurrence but also in terms of business continuity and reputation.
Risks that have a large impact on the ﬁnancial soundness andbusiness continuity of the Group or of individual Group companies(6) Delayed response to stricter global focus on human rights◯Risk that Tokio Marine Group s efforts regarding respect for human rights areperceived as inadequate by society, damaging our reputation

Response to the impact on business continuity and reputation
Publicly disclose our fundamental approach to climate change,
underwriting and investment policies, and the initiatives basedon these, and exchange opinions with experts and advisors in
the climate field●

Response to the impact on business continuity and reputation● Publicly disclose our fundamental approach to human rights, human rights
basic policies, management structure for respect of human rights,
guidelines for responsible procurement, and initiatives based on these,and exchange opinions with experts and advisors in the human rights field
051

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | CFO Message▶Material Risks for Fiscal 2023
Emerging risks/Scenarios(1) Domestic or overseas economic crisis, chaos in financial and capital markets◯The value of the Group s assets may fall substantially due to a global economic crisis on
the magnitude of the 2008 global financial crisis, or turmoil in financial and capital markets
caused by geopolitical risk.

(2) Loss of confidence in JGBs
◯The value of the Group s assets may fall substantially as Japanese government bonds
plummet in value due to a decline in the government s creditworthiness or the
emergence of hyperinflation.

Reference: Quantitative Risk Management
Examples of responses
Response to economic impact● Investigate the impact on the market due togeopolitical risks● Control exposure through credit risk aggregation andmanagement● Conduct stress tests to confirm capital adequacy andfunding liquidity● Establish action plans for financial crises and interest
rate increase risks(3) Major earthquakes◯A major earthquake beneath Tokyo or along the Nankai Trough may lead to significant humanand material losses, causing widespread disruptions to social and economic activities, including
those of the Group, resulting in large insurance payouts.

(4) Major wind and flooding disasters (including physical risks of climate change)◯Major typhoons or torrential rains may cause extensive physical damage, leading tosignificant disruptions in social and economic activities, including those of the Group,
resulting in large insurance payouts.

(5) Volcanic eruptions◯The eruption of Mount Fuji or similar volcanic activities could result in widespread physicaldamage due to volcanic ash and other effects, leading to significant disruptions in social andeconomic activities, including those of the Group, resulting in large insurance payouts.

(6) Pandemics◯The widespread outbreak of a new infectious disease could result in significant
insurance payouts.

(8) Inflation◯Due to soaring raw material costs and rapid increases in global prices, insurance payout
costs rise, resulting in diminished underwriting profits from the inability to revise
products in line with risks or secure reinsurance.

(9) Disruptive innovation◯Innovations that drastically reshape industry structures through digital transformationand innovative new entrants may erode the Group s competitive advantage and lead tosignificant reductions in premium income and profits.

(trillions of JPY)

124％

3.4

Response to economic impact● Ensure the competitive advantage of our insurance
business by implementing basic strategies andexecuting projects for digital transformation● Expand into new businesses, primarily in areas
closely aligned with our insurance operations

Risk*2Concept of capital management based on the Economic Solvency Ratio (ESR)
ESR

4.3
Response to economic impact● Analyze the impact of inflation on insurance products
and undertake product revisions and underwriting
commensurate with risk

*1: Calculated by adding the value of catastrophe loss reserves, deducting for goodwill, andmaking other adjustments to consolidated net assets on a financial accounting basis.

▶Status of the Economic Solvency Ratio (ESR)

Response to the impact on business continuity and reputation● Establish crisis management systems and business
continuity plans, and verify their effectiveness throughemergency drills● With respect to (7) shown at left, develop
cybersecurity measures, and verify their effectivenessthrough emergency drills◯A cyberattack targeting many Group customers or supply chains may lead to significant
insurance payouts.
◯A cyberattack targeting the Group s systems may result in the leakage of sensitive
information and disruptions to business operations.

The target range of the Groupʼs ESR is 100%‒140%, andas of March 31, 2023, the Groupʼs ESR was 124%,
conﬁrming that the Group is adequately capitalized.
We also conduct stress tests based on scenarios involving
signiﬁcant economic losses from material risks such as
domestic and international economic crises, disruptions in
ﬁnancial and capital markets, loss of conﬁdence in Japanese
government bonds, major earthquakes, major wind andwater-related disasters, and widespread outbreaks of new
viruses. We also assess scenarios where multiple criticalrisks materialize simultaneously. Through these stress tests,
we conﬁrm separately that there are no issues regarding
capital adequacy and liquidity.

Net asset
value

140%
100%

TargetRange

Implement:● Business investment, and/or● Shareholder return●

Additional risk-taking, and/or

Strategically consider:● Business investment, and/or● Shareholder return●

Additional risk-taking, and/or

Aim to recover the capital level through the accumulationof profit● Control the risk level by reducing risk-taking activities●

De-risking
Consider capital increase● Review of the shareholder return policy●●

March 31, 2023
*2: Amount of risk calculated by a model using 99.95% VaR (AA-rated basis)

2
Strategy and Business Platform Supporting Our Purpose Story(7) Cyber risk

Response to economic impact● Appropriately assess risks, including risk aggregation,and develop products that meet customer needs,
while generating stable profits throughrisk-appropriate underwriting, risk diversification, andarranging reinsurance● With respect to (3), (4), and (6) shown at left, conduct
stress tests to confirm capital adequacy and funding
liquidity

In quantitative risk management, the Company measures risk
amounts and conducts stress tests using risk models basedon the latest knowledge available, verifying from multiple
perspectives that its capital is suﬃcient relative to the risks it
holds, with the aim of maintaining its credit ratings andpreventing bankruptcy.
Speciﬁcally, the Company quantiﬁes potential risks using astatistical metric called “Value at Risk (VaR)” on a 99.95%
conﬁdence level, which corresponds to an AA credit rating, andveriﬁes its capital adequacy based on the Economic Solvency
Ratio (ESR) arrived at by dividing net asset value*1 by risk
capital. A 99.95% VaR is equivalent to the damage caused byan occurrence of a risk that happens once in 2,000 years.
Although many insurance companies around the world use
99.5% VaR (once in 200 years), Tokio Marine Group uses amuch more stringent standard to evaluate risk capital.

(10) Continued mutation of the COVID-19 virus◯The continued mutation and sustained spread of COVID-19 may lead to disruptions inbusiness activities.

(11) Geopolitical risk
◯Escalation of tensions between nations into military conflicts could lead to extensive
human and material damages, leading to significant disruptions in social and economic
activities, including those of the Group.

(12) Conduct risk
◯Deviation between industry and corporate practices and societal norms could lead tothe perception that the initiatives of the Tokio Marine Group are inadequate by society,damaging our reputation.

(13) Violation of laws and regulations◯Non-compliance with regulations concerning personal data protection, anti-money
laundering, and the reinforcement of economic sanctions related to the U.S.-China
tensions and the Ukraine conflict may result in the imposition of fines and penalties andharm the Group s reputation.

052

Response to the impact on business continuity and reputation● Establish crisis management systems and business
continuity plans, and verify their effectivenessthrough emergency drills (Response to economic
impact is detailed in (1) shown at left)

Response to the impact on business continuity and reputation● Conduct surveys on employee awareness andbehavior, and enhance the efforts of the Group bycompiling and sharing best practices
Response to the impact on business continuity and reputation● Monitor domestic and international social
environments, trends in government agencies, andchanges in regulatory requirements, and takenecessary measures accordingly053

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | Review of the Mid-Term Business Plan to Date

Review of the Mid-Term Business Plan to Date

Adjusted ROE (normalized basis)

12.0%

Tokio Marine Group has steadily and swiftly implemented the strategies set forth in the Mid-Term Business Plan.
By addressing the challenges carried over from each mid-term plan in the subsequent plan,

Adjusted
net income

we aim to achieve the world s top-class EPS growth and enhance ROE.

431.1billion yen

Cost of Capital 7%

2011

2012

2013

2014

2015

Mid-Term
Business Plan

Priority Strategies

Structural reform to businesses that generate proﬁt● Transformation into a well-balanced business portfolio

20192020 (FY)「To Be a Good Company 2020」

Unlock our potential● Pursue growth opportunities●

Capitalize on changes● Advance our business platform●

Further diversiﬁcation of the portfolio
Enhancement of the business structure● Strengthening of integrated group management
●
●

2

●
●

Main KPIs

Realized ROE exceeding the cost of capital(7%) through the following measures
Signiﬁcantly increased proﬁtability in the domestic non-life
insurance business, which was a major issue, led by auto insurance● Realized stable proﬁt growth in the domestic life insurance
business by focusing on the highly proﬁtable living protection ﬁeld
● Realized strong proﬁt growth and contributed to Group businessand geographic diversiﬁcation through the organic growth of the international
insurance business and the acquisition of the Delphi Financial Group● Continually reduced risk, for example, by selling business-related
equities in the amount of 336 billion yen over three years●

Review of thePriority Strategies

Review of
the Mid-TermBusiness Plan

2014 Results

Achievementof Main KPIs

［Issues remaining from the 2009‒2011 Mid-Term Business Plan］

ROE exceeding the cost of capital(A critical challenge is to realize proﬁtability
in the domestic non-life insurance business.)

9.3％

7% or higher

C/R (TMNF)

90.6％

95.0％

EV increase
357.5 billion yen(three-year total, TMNL)
Adjusted earnings(international insurance business) 145.5 billion yen

180 billion yen●

Realized sustainable proﬁt growth andhigher ROE primarily through the following measures
Enhanced the business model mainly by strengthening life andnon-life cross-selling initiatives, providing products and creating
a service system that is resilient to wide-area disasters● Reinforced R&D functions by providing products and services in
anticipation of changes (such as insurance designed to promotehealth improvement and auto insurance using drive recorders)and establishing the Digital Strategy Division● Advanced business through both organic growth and M&A, including the
expansion of specialty insurance in Japan and the acquisition of HCC● Enhanced the business platform by strengthening integrated groupmanagement, especially by establishing a Group Chief Oﬃcer system
and launching and bolstering our global committees●

2017 Results

Mid-Term Business
Plan (2017)10.0％*

1

Approximately 9%397 billion yen*1

350−400 billion yen

Mid-Term Business Achieved
Plan (2014)

Adjusted ROE

Adjusted ROE of 10% or more
● Adjusted net income of 400−450 billion yen● Payout ratio of 35% or higher

Adjusted ROE of approximately 9%● Adjusted net income of 350−400 billion yen● Steady growth of dividends in line with proﬁt growth●

Adjusted ROE
Adjusted net income

Annual dividend per share

160 yenSteadily strengthen the earnings base primarily
through the following measures
Make strategic changes to the portfolio that include the acquisitionof Pure, continued bolt-on M&A, and the sale of Tokio Millennium
Re Ag (TMR)● Enhance the business structure with the creation of claim
services using satellite images and AI, the launch of digital labs
in ﬁve locations worldwide, and a system to promote the useof technology● Strengthen integrated group management by promoting the useof talent and spreading the Group culture on a global basis.
As a result, we have expanded more Group synergies●

Achieved

Steady growth(95 yen in ﬁscal 2014)

Mid-Term Business
Plan (2020)

2020 Results
Adjusted ROE
Adjusted net income
Payout ratio*4

Achieved

2

10% or higher*

431.1 billion yen*2

400−450 billion yen*3

12.0％*

42%

Strategy and Business Platform Supporting Our Purpose Story

Adjusted ROE of 7% or higher
Improve the combined ratio (C/R) of the domestic non-life
insurance business to 95%● Increase the embedded value (EV) in the domestic life
insurance business by 180 billion yen (three-year total)● Adjusted earnings of 100 billion yen in the international insurance business2018

A global insurance group that delivers sustainable growth by providing safety and security to customers worldwide−Our timeless endeavor to be a Good Company−

A global insurance group that realizes sustainable growthby oﬀering quality that wins over customers

●

2017

「To Be a Good Company 2017」

Innovation and Execution 2014

Vision20163

35% or higher

100 billion yen［Remaining issue］

Build a foundation that enables sustainableproﬁt growth and higher ROE［Remaining issue］

Proﬁt growth by establishing an earnings base［Remaining issue］

Advancement of greater risk diversiﬁcation as well as further
improvement of proﬁtability in the insurance business, andthe ability to respond to an increasingly diverse range of issues*1 Figures based on the market environment as of March 31, 2015, excluding FX eﬀects and the one-time impact of U.S. tax reform after the impact of natural disasters normalized to an
average annual level.
*2 Figures based on the market environment as of March 31, 2018, after adjusting for normal years of natural disasters and excluding the impact of the COVID-19 pandemic.
*3 Figures based on the market environment as of March 31, 2018, after adjusting for normal years of natural disasters.
*4 The payout ratio is based on ﬁve-year average adjusted net income. Based on original projections.
054

055

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | Current Mid-Term Business Plan 2023 -Adapt, Lead, Innovate-

Current Mid-Term Business Plan 2023 −Adapt, Lead, Innovate−
Through our “2 + 1 Growth Strategy” under the
Mid-Term Business Plan (MTP) 2021‒2025, we set themedium- to long-term goals of a win-win situation withstakeholders, the implementation of a “Glocal ×
Synergy” strategy, as well as growth and stable highproﬁt, represented by adjusted net income above 500
billion yen and adjusted ROE of around 12%.
In pursuit of these objectives, we set initial MTP
targets of adjusted net income with a CAGR of +3%‒7%(approximately 480 ‒540 billion yen) and adjusted ROEof around 12%. However, for ﬁscal 2023, the ﬁnal yearof the MTP, we anticipate surpassing these targets
signiﬁcantly, as well as exceeding our medium- tolong-term expectations with adjusted net income of
670.0 billion yen and ROE of 17.1%. These projections
are underpinned by enhanced revenue from domestic ﬁreinsurance and a rise in investment income acrossdeveloped nations, excluding Japan.

A global insurance group that delivers sustainable growthby providing safety and security to customers worldwide−Our timeless endeavor to be a Good Company−

Long-term vision▶Progress of the Current MTP
In fiscal 2022, we posted adjusted net income of 444.0 billion yen and adjusted ROE of 11.1%. On a normalized basis, excludingtransient factors, adjusted net income was 617.1 billion yen and adjusted ROE was 15.1%.
For fiscal 2023, we are projecting figures above our MTP with adjusted net income of 670.0 billion yen and adjusted ROE of 17.1%.

FY2023 Plan

FY2023 Projections

FY2022 Results

FY2020 Results

Adjusted
net income

CAGR*1 +3%‒7%

CAGR*2 +15%
670.0 billion yen

617.1 billion yen

446.0 billion yen*3

Adjusted ROE

Around 12%

17.1%

15.1%

11.5%*3

48.5%

40%

100.0 billion yen

50.0 billion yen(announced in May 2021)(normalized, with actualin parentheses)(444.0 billion yen)

(11.1%)(normalized, with actualin parentheses)(399.6 billion yen)

(11.3%)

Shareholder return▶Condition Realized in the Long-Term Vision

Win-Win situation with stakeholders

Payout ratio*4
Growth and stable high proﬁt

Glocal × Synergy

Medium- to long-term targets of more than
500 billion yen in adjusted net income
and around 12% in adjusted ROE●

Precisely respond to quickly changing
customer needs and implement
products/services and channel strategies
reflecting the market

Flexible execution

100.0 billion yen(set 50.0 billion yen
as first step in May 2023)

2▶Breakdown by Business

Enhance the proﬁtabilityof the insurance business

New Markets × New Approach

50%▼

50% (revised in Nov. 2021)

Optimize premium rates and increase rates
based on market hardening● Streamline operations while thoroughly utilizing
digitalization●

Business unit profits for the fiscal 2022 results and the fiscal 2023 projections have both been progressing well, centered on
domestic non-life insurance and our overseas businesses.
In the domestic non-life insurance segment, the challenges posed by the increase in automobile loss costs had an impact, yet
our disciplined underwriting practices, encompassing rate increases for fire insurance, led to improved revenue. In the international
insurance segment, our disciplined underwriting leveraging the hard market environment combined with expansion of investment
income serve as catalysts for profit growth (see pp. 133‒147) .

FY2023 Plan

FY2023
Projections

FY2022 Results(normalized, with actualin parentheses)(normalized*3, with actualin parentheses)

CAGR*1 +3%‒7%

CAGR*2 +15%
670.0 billion yen

617.1 billion yen

446.0 billion yen

Domestic Non-Life
Insurance*5

CAGR*2 +6% or higher(of which, underwriting profit +10%)

excl. FX 171.1 billion yen

Domestic Life
Insurance*6

Stably secure50.0 billion yen level

39.0 billion yen

excl. FX 46.0 billion yen

International
Insurance

CAGR*2 around +9%

CAGR*2 +28%
376.0 billion yen

355.2 billion yen

OtherBusinesses*7

About 70.0 billion yen

94.0 billion yen(announced in May 2021)

Business investment for the next growth stage

Technology

Business Platform−Mission Driven−

Human Resources
Expert talent development● Global talent/management development● Diversity & Inclusion●

ERM−Risk Culture−

Integrated Group Management
Sharing of best practices● Synergy-inducing system● Global management framework●

Adjusted net income

Corporate Culture
To Be a Good Company● Resolution of issues for society/customers● Robust and agile organization●

Business
Unit
Proﬁts,etc.

*1: Compared with FY2020. It was explained that OG was more than 5% at the IR
briefing in May 2021.
*2: Compared with FY2020*3: Launch figures to serve as starting points for the current MTP (setting impacts fromnatural catastrophes as the level for a normal year and excluding the impact of
COVID-19 and exchange fluctuations)*4: The payout ratio is on five-year average adjusted net income. Based on
projections at the beginning of the year. The payout ratio will be boosted to
50% in fiscal 2023. DPS will be boosted with growth in profits as a key
driver (dividends will not be cut, in principle).
056

CAGR*2 +5%161.0 billion yen(444.0 billion yen)

144.6 billion yen(109.4 billion yen)44.9 billion yen(36.4 billion)(218.6 billion yen)

72.4 billion yen(79.6 billion yen)

FY2020 Results(399.6 billion yen)

Strategy and Business Platform Supporting Our Purpose Story

2+1 Growth Strategy

Capital leveladjustment

40% or higher

138.5 billion yen(175.3 billion yen)

52.7 billion yen(52.7 billion yen)180.1 billion yen(91.6 billion yen)74.7 billion yen(80.0 billion yen)

*5: Domestic non-life insurance = TMNF
*6: Domestic life insurance = TMNL
*7: Other domestic non-life insurance, financial and other businesses, and gains on
the sale of business-related equities, etc., that are not included in business unit
profits057

2 Strategy and Business Platform Supporting Our Purpose Story | Capital Policy and the Mid-Term Business Plan | Beyond the Mid-Term Business Plan

Beyond the Mid-Term Business Plan
Having surpassed our medium- to long-term targets of adjusted net income above 500 billion yen and adjusted ROE ofaround 12%, we are now looking beyond these goals.
Specifically, we aim to continue achieving world-class EPS growth organically (currently at around +5‒7%) and raise
our ROE level slightly to be on par with our European and American peers, thus expanding our equity spread.

▶Adjusted Net Income/Adjusted ROE*1▶Improvement of the Equity Spread

20.0%

Improve adjusted ROE(Image)Expand adjusted net income

Tokio Marine(Image)15.0%

Peer 2Peer 1
Peer 4

Adjusted
ROE

Adjusted
net income(billions of JPY)

TSR for10 years*3(CAGR)BreakthroughPeer 3
Insurance companies
in the world*5
Average 10.81%

2

5.0%

500

Insurance companies
in the world*6
Average 2.33%

12%
0.0%
−6.0%

−4.0%

−2.0%

0.0%

2.0%

Ten-year average
equity spread*4

Organic growth
as a world-class property
and casualty (P&C) company*3: CAGR between April 1, 2013, and March 31, 2023. Source: Bloomberg*4: ROTE is calculated with capital costs. We use adjusted ROE for our ROTE. The
capital costs of the five listed companies are calculated with CAPM (= risk freerate + β × market risk premium), with 6% for the market risk premium.
Source: Bloomberg

Inorganic growth utilizing
our strong ability
to execute M&As

4.0%

6.0%

8.0%

10.0%

Peers: Allianz, AXA, Chubb, Zurich*5: MSCI World Insurance Index. TSR Source: Bloomberg*6: Average of 176 listed global insurance companies

Strategy and Business Platform Supporting Our Purpose Story

Medium- tolong-term targets
announced
in November 2017*2

10.0%

Prior and later
expansion of areas
100

0%
2011

2023
projections*1: Adjusted for natural disasters in normal years; excludes the impact of COVID-19 in 2020, North American capital gains, etc., and gains on the sale of business-related equities(on the portion of sales exceeding 100 billion yen) in 2021, and the war in Ukraine and South African floods in 2022
*2: Adjusted ROE of 12%, adjusted net income of 500 billion yen

058

059

2

initiatives based on our purpose. We also established theSustainability Committee, which includes executives from overseas
Group companies, to actively engage in discussion regarding ourglobal sustainability strategy and initiatives.
The Sustainability Committee goes beyond discussing overarchingpolicies; it also focuses on showcasing how social challenges aretackled through both domestic and international business operations.
This approach has led to increased communication between
Japanese and overseas branches and played a crucial role in
expediting strategic decision-making and implementation throughout
the Group. These initiatives have eﬀectively propelled the permeationof sustainability policies and strategies across the Group. Centered on
the eight key areas (materiality), eﬀorts to address social challenges
through business activities are gaining global momentum.

Strategy and Business Platform Supporting Our Purpose Story| Sustainability Management | CSUO Message

By contributing to building abetter society through constantly
seeking and oﬀering solutions toever-changing global issues as
only Tokio Marine can, we will
accelerate the upward spiral ofresolving social issues while
growing our business.

Managing Director
Group Chief Sustainability Oﬃce (CSUO)

Environmental Changes Surrounding Sustainability
In this rapidly changing and unpredictable era, the environment
surrounding sustainability is also undergoing constant shifts. The
scope of societal issues we need to address has expanded beyond
global warming and climate change and the increasing frequency andintensity of natural disasters to encompass such areas as humanrights and biodiversity preservation. Against this backdrop, my mission
as CSUO is to make sure we continue to embody thislong-established DNA of solving social problems and directly connectthat to growth for society and the Company. That is, “to continuebuilding a sustainable society by balancing our corporate activities
and the resolution of social issues.” Despite the changing times, thecore concept of our deeply rooted sustainability strategy has remained
unchanged since our inception. We must continue to step up
our eﬀorts and capacity to solve issues. As these challenges become
increasingly diverse and complex, it is important that we employ
our expertise and know-how globally and mobilize as “one team” tocombat them. It is imperative that we unite the individual contributionsof each Group company and carry out collective activities with agreater sense of urgency.
Establishment of Promotional Framework and Penetration of
Global Sustainability Strategy
To swiftly execute this strategy across the board, in ﬁscal 2021 weenacted the Group Sustainability Policy applicable to all Group
companies and identiﬁed eight key areas (materiality) for focused

Accelerated Integration with Business Activities and Response to
New Social Challenges
These initiatives have contributed to the incremental global adoptionof our sustainability strategy, and we will take steps to further reﬁne it▶Changes in Major Areas of Activity
FY2021 (Results)

FY2022 (Results)

Establishment of Global Sustainability
Promotion Structure
Establishment ofa promotion structure
Establishment ofsustainability-related
policies
Strengthening of
the connection
with business operations
Strengthening of
disclosuresand commitments

060

Established the Sustainability Committee
Reﬂected ESG performance in executive compensation● Revised the sustainability award system
●
●

●
●

●
●

Organized a basic policy structure for ESG
Established basic policies for the Group
Developed sustainability strategies
Established a PDCA cycle

Revised the sustainability report
Disclosed the KPIs and enhanced the TCFD disclosures(physical risks related to underwriting)● Revised our
Basic Approach to Climate Change●●

Enhancing Value by Circulating Corporate Activities and the
Resolution of Social Issues
Guided by our enduring purpose of protecting customers and society
in times of need, we will combine the collective capabilities of theGroup and take pride in our commitment to be a front-runner insolving social issues. At the same time, we will strive to increase bothsocial value and economic value (proﬁt growth) by circulating ourcorporate activities against the resolution of social issues.
We sincerely appreciate the ongoing understanding and support of
all our stakeholders.

FY2023 (Plans)

Global Penetration of Sustainability Strategy
Initiatives in Key Areas
Penetration ofsustainability strategy

Steady implementationof initiatives related toongoing issues
Response to current
issues givenchanges in the external
environment●

Embedded sustainability strategy and policy(released summaries and videos related toenvironmental and human rights policies)

Clariﬁed initiatives for future generations
and executed them globally● Enhanced engagement and ensured strict
compliance with our Climate Policy●

Contributed to the establishment of an internationalframework for addressing climate change● Enhanced the TCFD disclosures(physical risk, transition risk)●

2
Strategy and Business Platform Supporting Our Purpose Story

In addressing climate change, we are not only developing and oﬀering
products and services that contribute to the growth of renewableenergy, but also engaging with more than 250 companies on climatechange and environmental themes and operating a renewable energy
fund to promote green investments. Furthermore, we have establishedthe GX Round Table to foster collaboration across the Group in thegreen transformation (GX) ﬁeld, advancing support for the global
transition to a decarbonized society.
Within the domain of disaster resilience, we are actively
broadening our eﬀorts across pre-emptive and post-incident strategies,
with the goals of accident prevention, mitigating burdens during
incidents, and expediting recovery while averting future recurrences.
Harnessing digital technology, we have established streamlined
and automated insurance claim procedures, ensuring swift deliveryof beneﬁts to those impacted. In the United States, we provide
accident-detection sensors free of charge, integrating digital
innovation into product evolution and launch to forestall accidents
and curtail losses through data-driven insights. Our commitment
extends to collaborative eﬀorts in disaster prevention and mitigation
across diverse industries through CORE, a disaster prevention
consortium. This consortium has generated speciﬁc solutions such as
the Real Time Hazzard and resilient information delivery services,
garnering support from over 100 participating companies andmagnifying its societal impact.
We are also making consistent strides in other crucial domains,such as broadening Environmental, Social, and Governance (ESG)
investment and ﬁnancing, making contributions towards future
generations, improving disclosures in line with the recommendationsof the Task Force on Climate-related Financial Disclosures (TCFD),
and crafting a policy for human rights due diligence.

Kiyoshi Wada

Protecting customers and society in their times of need has been
Tokio Marine Groupʼs raison dʼetre since our founding, aiming to be a
global insurance group that delivers sustainable growth by providing
safety and security to customers worldwide. Based on this purpose,
we have confronted evolving social challenges head-on and oﬀered
solutions that only we can. Our historical contributions, fromsupporting Japanʼs modernization as a trading nation through maritime
insurance to aiding postwar motorization with automobile insurance
and promoting renewable energy through tailored insurance packages,
illustrate how our core business activities inherently address social
issues and embody sustainability. The spirit of sustainability ingrainedin our 40,000 employees worldwide is the very essence of our DNA,a legacy passed down through generations since our founding.

going forward. Speciﬁcally, we aim to create a state where
exceptional ideas arising from each workplace, which contribute tosolving social challenges, are transformed into unique businesses andservices distinctive to the Group through eﬀective communication
among diverse employees and persistent hypothesis testing. To
achieve this, we are enhancing the incorporation of our sustainability
strategy into business plans and establishing a mechanism to review
initiatives based on key performance indicators (KPIs). This initiative
takes center stage in 2023. Furthermore, we recognize theimportance of cultivating individuals who can drive the execution ofstrategies at each Group company. These individuals should embrace
the sustainability strategy as their own, integrate it into theirorganizational plans, and champion its implementation by involving
their peers. To this end, we are developing a systematic curriculum
for talent development in the theory and practice of sustainability
strategy, scheduled for implementation this ﬁscal year.
As new social issues related to human rights and biodiversity
conservation emerge, we remain attuned to changing perspectives
and societal expectations, responding promptly. Addressing humanrights concerns, we have already created a human rights risk map,
identifying priority areas for action among “business partners,” “value
chains,” and “employees.” In terms of biodiversity conservation, we
continue to advance activities emblematic of the Group, such as
mangrove planting and ocean conservation, while considering theforthcoming Taskforce on Nature-related Financial Disclosures(TNFD) framework for assessing impacts on ecosystems and natural
capital resulting from business activities.
These endeavors do not operate in isolation, however. By
proactively disclosing our various initiatives, such as our TCFD
Report and Human Capital Report, we seek to invigorate dialogue
with stakeholders, leveraging insights gained to further elevate oursustainability strategy.

Further integration of sustainability strategy and business operations
Strengthening of eﬀorts in key areas and strategic disclosures
●

●
●

●
●

Enhanced communication withoverseas sites(provided quarterly action plans)

Further integration ofsustainability strategy andbusiness operations

Expanded ESG investment and ﬁnancing
Boosted score from key ESG rating agencies

Started human rights due diligence initiatives
Launched Diversity & Inclusion (D&I)
communities in Japan, Asia, and Europe

Strengthening of efforts in
key areas
Response to current issues
given changes in theexternal environment

Integrate sustainability strategy into business plans
Develop a support program for sustainability promotion oﬃcers● Establish quarterly follow-up sessions for action plans●●

Take steps to realize a decarbonized society
Undertake initiatives for future generations globally● Respect human rights● Expand ESG investment and ﬁnancing● Make eﬀorts to conserve biodiversity● Invest in human capital and further promote D&I
●
●

061

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Sustainability Strategy Promotion Structure

Sustainability Strategy Promotion Structure

Structure for Promoting Eﬀective Sustainability
To further embed our sustainability strategy in these rapidly changing
times, every employee must understand and resonate with related
policies and strategies, while at the same time considering them as
their own and taking concrete actions accordingly.
To drive and support such a transformation of employee andorganizational behavior, we established the Sustainability Committee
led by the CSUO. Launched in 2021, this committee includes not
only the CEO, CFO, CSO, and CHRO but also non-Japanese chiefoﬃcers. By creating working groups and task force under thisframework, we have created a ﬂexible structure to address the very
essence of social challenges and facilitate coordinated eﬀorts on a
global and Group-wide level.
The Sustainability Committee convened four times in ﬁscal 2022,
setting plans and challenges, executing initiatives, and reviewing
outcomes. Deliberations were promptly reported to the Management
Meeting and Board of Directors, and the feedback obtained there
has been instrumental in enhancing subsequent discussions,assessments, and strategic advancements.

▶Organizational Structure for Promoting SustainabilityGroup

To further strengthen and accelerate the integrated management ofsustainability strategy and business operations, it is imperative toestablish a robust PDCA cycle anchored in our promotion framework,
which includes the establishment of the CSUO position and theSustainability Committee.
Both domestic and international Group companies are explicitly
incorporating eﬀorts to address social challenges through businessactivities into their business plans. We have also developed
mechanisms to ensure eﬀectiveness, such as creating a process
for reviewing these initiatives and building a system to recognize
outstanding ideas and initiatives into the TokioMarine Innovation

Management Meeting

Incorporate initiatives that contributeCEO

to addressing societal issues throughbusiness activities explicitly into

CSUO

business plans (promoting energy
eﬃciency in product development
and the oﬃce environment).

Secretarial Office
Products and services

Operations

Working Group
Social contributions Communications Business strategies

Task Force
TCFD

Departments in charge of corporate planning,international business, and financial planning

Diversity
Council*Group companies in the domestic
life insurance business(*: see p. 92)

Group companies in the domestic
financial and other businesses

Group companies in
the international insurance business(1) Role of the Sustainability Committee(2) Roles of Other Organizations

Deliberates on Tokio Marine Group s sustainability strategies● Oversees the overall management and execution of sustainability
strategies● Reports to and submits matters for discussions to the Board of
Directors and in relevant management meetings❶Secretarial Office:Handles administration for the committee (as well as the working
groups and task force) and promotes the sustainability strategies❷Working Groups:
Formulate and execute annual plans for each type of issue, with
input from the relevant departments of Tokio Marine Holdings andmembers of the Group companies❸Task force:
Organizes members of projects tasked with strengthening
short-term initiatives●

Matters discussed by the Sustainability Committee in ﬁscal 2022
April 2022

Review of ﬁscal 2021 initiatives and formulation of new plan forﬁscal 2022
Overview of new initiatives for contributions to future generations

August 2022

Contributions to future generations (identiﬁcation anddevelopment of initiatives)
Proposed revisions to strengthen the Climate Policy

November 2022

Penetration of sustainability strategy within the Group
Progress in response to key ESG rating agencies and futureareas of focus

1 2Incorporate intobusiness plans

Establishmechanism toensureeﬀectiveness2. Establish mechanism
to ensureeﬀectiveness(1) Set up follow-up sessions forquarterly action plans(2) Provide support through the
TokioMarine Innovation
Program

PDCA
cycle
Get feedback fromstakeholders

Group Companies
Group companies in the domestic
non-life insurance business* An initiative where ideas from employees of Group companies are solicited for
addressing social challenges through business activities, and applicants themselves
bring these ideas to fruition.

4. Get feedback fromstakeholders
Reﬁne initiatives based on
feedback and incorporate into
the following year s plan

Make strategic
disclosures

4 3

3. Make strategic
disclosures

2
Strategy and Business Platform Supporting Our Purpose Story

Sustainability Committee(comprising the CEO and C-suite)

Program*. Additionally, by externally disclosing speciﬁc initiatives
and processes that emerge from these eﬀorts, we aim to engage indialogue with our stakeholders, incorporating their feedback into thefollowing yearʼs initiatives.
By setting this PDCA cycle in a positive feedback loop throughout
the Group, we further embed our sustainability strategy and elevatethe content and insights of our initiatives, enabling us to accelerate
our sustainability strategy across the Group.

▶Accelerating the Sustainability Strategy through a PDCA Cycle

1. Incorporate intobusiness plans

Board of Directors

Four times annuallyStrengthening the Integration of Sustainability Strategy
and Business Operations through an Eﬀective Promotion System

Use sustainability reports andother means to disclose initiative
details and processes

Develop personnel capable of driving sustainability initiatives

Review of ﬁscal 2022 initiatives and formulation of new plan
February 2023 for ﬁscal 2023
Progress and development of human rights due diligence

062

063

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Eight Material Issues (Materiality) and Four Priority Issues Specified

Materiality

Eight Material Issues (Materiality) and
Four Priority Issues Speciﬁed
Taking into account discussions within our Sustainability Committee
and advice from external experts, we identiﬁed eight material issues(materiality) and four priority issues to be addressed (“What”),
beginning with our purpose (“Why”). The selection of these eightmaterial issues was guided by the value we seek to deliver tostakeholders, considering the changing environment, and referencing
key frameworks addressing social concerns. Further assessment wasundertaken based on the dual axes of “stakeholder expectations andWhat(four designated as priority issues)(1) Combat climate change(priority)interests” and “relevance to Tokio Marine Groupʼs business,” leading
us to pinpoint four priority issues that warrant focus. For each material
issue, we implement diverse measures depending on their impact on
the Groupʼs operations in terms of risk and opportunity (“How”). Our
strategy goes beyond risk mitigation and opportunity capture as weseek to transform risks into opportunities, thereby elevating both our“social value” and “economic value (proﬁt growth)” toward solvingsocial issues.

(2) Improve disaster resilience(priority)

What

How

Environmental changes

Important business matters

Risks and opportunities

PurposeMateriality

Value creation(4) Promote and support
diversity and inclusion(priority)

Amid major changes in the economic environment, social issues are becoming increasingly
complex and diverse. For Tokio Marine Group to grow sustainably by offering solutions
to such issues, it will be important for its more than 40,000 employees to maximize theirpotential and combine their individual skills into collective capabilities. Accordingly, promoting
and supporting diversity and inclusion is an important management strategy for the Group,
and it intends to step up the initiatives it has been carrying out for this purpose.

Deﬁning Value to Provide to Our Stakeholders(5) Facilitate andfoster innovation
through digitalization

Rapid progress in technological innovations is driving major societal and economic changes.
To realize sustainable economic growth under those circumstances, all corporations will needto create a basis for technological innovation. Tokio Marine Group is already providing
insurance coverage for new types of risks that have arisen from these changes, including
cyber risk. Furthermore, in addition to insurance payouts, the Group will apply digitaltechnologies and data to provide security to clients before and after any events that might
require insurance claims. In these ways, the Group will work to support corporate growth andeconomic development.

In light of recent changes in the environment, we identiﬁed the value that we provide on an individual stakeholder
basis. Providing these values is indeed our raison dʼetre and the ideal we hope to realize.

Stakeholders

Why(6) Protect the naturalenvironment

Tokio Marine Group understands that a sustainable society, in which everyone can live safely
and securely and pursue any aspiration, depends on the natural environment, the basis for all
life and people s livelihoods. Moreover, the Group recognizes its obligation to help ensurethat future generations inherit a sustainable natural environment, as it is irreplaceable. Basedon these principles, the Group intends to bolster the initiatives it has taken to combat climatechange and protect biodiversity and wetlands through environmental conservation activities,
including its Green Gift project and mangrove planting activities.

(7) Provide education
to children

Education can create a foundation for the future, as each generation faces the changing
challenges of the times. Having specified future generations of people as stakeholders,Tokio Marine Group has a duty to help equip children with the skills they will need in life.
Therefore, the Group plans to strengthen its educational programs, including its Disaster Risk
Prevention Lessons for children, which were initiated following the Great East Japan
Earthquake in 2011.

(8) Disclose highly transparent
and timely information

As an original participant in the Task Force on Climate-related Financial Disclosures (TCFD),
Tokio Marine Group is working to properly disclose information and facilitate widespreadclimate-related disclosure. As part of these efforts, the Group will continue placing importanceon disclosing highly transparent and timely information to earn even more trust fromshareholders and investors going forward.

Value Provided

For customers●

For society●

For employees●●

For shareholders and investors●●

For future generations●

STEP 2Contribute to making customers lives healthy and enriching through products that provide security
and assistance with future-oriented challenges
Contribute to building a sustainable society that can overcome any challenge and ensure the safety
and security of all its members
Help employees reach their highest potential through engagement and opportunities
for them to thrive
Continually increase shareholder returns
Enhance the Group s value and earn the trust of shareholders and investors through timely andproper disclosure along with constructive dialogue
Hand down a sustainable environment and society to future generations by engaging in climatechange countermeasures and the preservation of biodiversity
Support the challenges of future generations by providing education and enlightenment to children

Identifying Eight Material Issues (Materiality)

Tokio Marine Group has identiﬁed eight material issues on which the Group should focus as it works to provide value to each of
the aforementioned stakeholders while referencing the scope of principal frameworks on social issues in and outside Japan,
including the Sustainable Development Goals (SDGs), ISO 26000, and new industry visions.

What

064

STEP 3

2
Strategy and Business Platform Supporting Our Purpose Story

In an age in which many people live past 100, everyone hopes to lead a long and healthy life.
With the aging of the population and widespread advancements in medicine, however, thefinancial burden on individuals, families, and society is growing each year. Tokio Marine
Group intends to address this issue by fully utilizing its extensive expertise to offer
high-value-added products and services while covering disease and illness through its manylife and non-life insurance products.

Identiﬁcation Process of Materiality and Priority Issues【Why/What】
STEP 1

The adverse effects of climate change, including increasingly serious natural disasters,
threaten people s safety and security, and interfere with the sustainable development ofsociety. Tokio Marine Group recognizes the importance of addressing climate change andnatural disasters because it underwrites risks in Japan, a country especially prone to natural
disasters. Therefore, in its roles as an insurance provider, institutional investor, and global
enterprise, the Group intends to deal with these issues head on and contribute to solutions.

(3) Support people s healthy andenriching lives (priority)

Approach
Why

Reasons for selection

Selecting Four Priority Issues

Based on an assessment along the lines of the following two axes, we selected four priority issues on which to focus fromamong the eight material issues.
(1) Expectations and the interest of stakeholders
Assessment based on the content of a stakeholder survey while also taking into consideration such factors as social
perceptions toward each issue and status of incorporation into various ratings.
(2) Importance for Tokio Marine Group
Assessment based on the relationships with the degree of contribution to the Groupʼs purpose, business strategy,
sustainability strategy, and other factors.

065

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Eight Material Issues (Materiality) and Four Priority Issues Specified

Metrics and Targets
How

For customers

Stakeholders

How the Groupcan contribute

Materiality
Combat climatechange (priority)

Value creation

Value creation

What are the Group s goals(qualitative or quantitative)?

Achievements so far and future plans

Reduce CO2 emissions from the Groupʼs
operations and meet the RE100 criteria

Targets for ﬁscal 2030
1) Reduce the Groupʼs greenhouse gas emissions by 60%*1
compared with ﬁscal 2015
2) Have renewable energy account for 100% of electricity
consumption at main workplaces
3) Switch all company-owned vehicles to electric vehicles*2(Tokio Marine & Nichido Fire, Tokio Marine & Nichido Life)

1) Fiscal 2022 results: 34% reduction (compared with ﬁscal 2015)
2) Adopt renewable energy at workplaces in Japan, the United States, and Europe (Tokio Marine & Nichido Fire, Tokio Marine &Nichido Life, PHLY, TMK, etc.)
Fiscal 2022 result: 26% (compared with ﬁscal 2020)
3) Tokio Marine & Nichido Fire and Tokio Marine & Nichido Life are gradually making the shift.

Realize carbon neutrality throughengagement with investors and insurance
underwriters

Fiscal 2050 target
Net-zero greenhouse gas emissions (including insurance
customers and investment and ﬁnancing recipients)

Promote engagement on climate change and the environment (Tokio Marine & Nichido Fire, ﬁscal 2022 results: dialogue with morethan 250 companies)
Create decarbonization plans and strategies for underwriting and investment portfolios (ﬁscal 2022 initiative)

Develop and oﬀer products and services
that contribute to renewable energy
development

Fiscal 2022 result: Increased written premium in GX-related insurance products by 6.3 billion yen (compared with ﬁscal 2020)

Continue to facilitate green investing

Strengthened commitment to and involvement in renewable energy funds (62 billion yen committed and 45 development projects asof the end of ﬁscal 2022)

Combat global warming and mitigate
damage from environmental disasters
through mangrove plantations (CO2 ﬁxation)

Continue to maintain carbon neutrality

Achieved carbon neutrality in ﬁscal 2022 (10 consecutive year since ﬁscal 2013)

Enhance response to natural disasters

Develop products and services that provide swift insurance
payments in the event of a large-scale disaster

Reduce time for insurance payment by automating the payment process (from ﬁscal 2022)

Provide security for customers before andafter disasters in ways besides insurance
payments

Collaborate with various industries and companies on disasterprevention and mitigation projects

The number of member companies in the disaster prevention consortium CORE has increased to 100, and the number of working
groups has expanded to 10 (as of June 30, 2023)

Establish sustainable ﬁre insurance systems

Improve proﬁtability of ﬁre insurance by more than 45 billion yen
in ﬁscal 2023 (Tokio Marine & Nichido Fire; business unit proﬁt
compared with ﬁscal 2020)

Increased revenue in ﬁre insurance in ﬁscal 2022 (up by 36.6 billion yen compared with ﬁscal 2020); cumulative improvement ofapproximately 60 billion yen projected in ﬁscal 2023

Develop and provide products and services useful for disasterprevention/mitigation, early recovery, etc.

Conducted joint research into measures for addressing issues such as aging condominiums with the University of Hawaii

Surpass 300 billion yen in cumulative economic value frommangrove plantations by ﬁscal 2038

Plan to provide Real Time Hazzard, which captures ﬂood depth with AI analysis of CCTV footage and sends alert information (ﬁscal 2023)

Major initiatives forﬁscal 2023 (ongoing)

2
Strategy and Business Platform Supporting Our Purpose Story

Improve disaster
resilience (priority)

Increase written premium from green transformation (GX)-related
insurance products by around 7 billion yen in ﬁscal 2023*3(Tokio Marine & Nichido Fire; compared with ﬁscal 2020)

Progress andevaluation*4

For society

Launched an initiative in South Africa promoting adoption of ﬁre insurance and ﬁre alarms bundled together for low-income housing (ﬁscal
2022)

Supportpeople s healthy
and enriching
lives (priority)

Assist with business continuity planning(BCP) in partnership with government bodies
and businesses

Continue providing support to BCP

Cumulative number of agreements with governments (as of the end of February 2023)
・42 prefectures
・13 major cities
・76 municipalities

Respond to asset building and savings
needs in response to longevity risk
(Develop and provide new healthcare
services)

Increase revenue by 20-30 billion yen in the healthcare domain
in ﬁscal 2023*3 (Tokio Marine & Nichido Fire)
Increase the CAGR of new policy premiums by approximately 5%
in ﬁscal 2023 (Tokio Marine & Nichido Life)

Established a preparatory company to conduct validation experiments for new business in the healthcare domain (April 2023)
Expanded ancillary insurance services (including services for early detection of cancer, and direct payment of beneﬁts to aﬃliatedhospitals from February 2022)
Developed and provide new solutions contributing to disease precursor detection (validation experiments for early detection using
Apple Watch started in October 2021)
Achieved CAGR of 11% in new policy annualized premiums at Tokio Marine & Nichido Life in ﬁscal 2022 (compared with ﬁscal 2020)
Established a health promotion consortium in China and collaborating with Japanese and Chinese companies to develop products andservices that enhance healthcare

Widely promote services for facilitating Healthand Productivity Management

Continued selection in the Health & Productivity Stock Selection

Included in the Health & Productivity Stock Selection 2023 (for the eighth consecutive year)

Continue health management support (Tokio Marine & Nichido Fire)

Provided health management support to approximately 2,000 companies (in ﬁscal 2022)*1: Based on our business activities (Scope 1, 2, and 3 (Categories 1, 3, 5, and 6))066*2: EVs, PHVs, HVs, etc.

*3: Net premiums written*4: Generally progressing well067

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Eight Material Issues (Materiality) and Four Priority Issues Specified

How

Promote andsupport diversity
and inclusion(priority)

Facilitate andfoster innovation
through
digitalization

For shareholders
and investors

For future generations

Protect
the naturalenvironment

Provide education
to children

Disclose highly
transparent andtimely information*1 Totals for Tokio Marine Holdings and its Group companies worldwide

068

How the Groupcan contribute
Promote diversity and foster an inclusive
corporate culture

Value creation

Value creation

What are the Group s goals(qualitative or quantitative)?

Achievements so far and future plans

Promote and support diversity and inclusion through the Diversity
Council, etc.
Continue to conduct the Culture & Values Survey
KPIs1) Percentage of female directors and Audit & Supervisory Board
members: 30% (fiscal 2027 target)
2) Percentage of female managers at Tokio Marine & Nichido
Fire: 30% (fiscal 2030 target)
3) Percentage of female sub-leaders at Tokio Marine & Nichido
Fire: Maintain above 50%

Created the Diversity Council and the Group Diversity and Inclusion Officer (CDIO) position (fiscal 2021)
Established D&I communities in Japan, Asia, Europe, and the United States (fiscal 2022)
Scored 4.0 out of 5 in the Culture & Values Survey in fiscal 2022*1
Recent progress:
1) Percentage of female directors and Audit & Supervisory Board members: 20% (Tokio Marine Holdings, following the 2023
Ordinary General Meeting of Shareholders)
2) Percentage of female managers at Tokio Marine & Nichido Fire: 11.2% (realized 31.6% on a global basis; as of April 2023)
3) Percentage of female sub-leaders at Tokio Marine & Nichido Fire: 58.9% (as of the end of fiscal 2022)

Share best practices and activities for
improvement throughout the Group

Carry out human rights due diligence and improvement initiatives
based on the UN Guiding Principles on Business and Human
RightsCreated and published a human rights due diligence and improvement policy in line with the UN Guiding Principles on Businessand Human Rights, etc. (December 2021)
Further promote human rights due diligence among employees, our businesses (insurance underwriting, investment, and loans), andthe value chain

Apply advancements in digitalization and data
to increase security for customers in ways
besides insurance payments

Accelerate data strategies through initiatives started by core datacompany Tokio Marine dR Co., Ltd., in July 2021 (expand
provision of pre- and post-incident assurance)

Launch specific initiatives for the comprehensive disaster prevention and mitigation solutions business, such as Real Time Hazzard, withthe disaster prevention consortium CORE̶which began in April 2022 led by the Group̶as its engine (from August 2023)
Develop data-driven products in collaboration with Tokio Marine dRStarted accident prevention and loss reduction efforts in the United States through the distribution of telematics and temperature sensors

Address increasing cyber risks amid digitaladvancements

Increase written premium by around 5 billion yen through cyberrisk insurance by fiscal 2023*3 (Tokio Marine & Nichido Fire;
compared with fiscal 2020)

Achieve double-digit growth in cyber risk insurance each fiscal year (Tokio Marine & Nichido Fire)
Started offering incident response services (from April 2022, the first in the industry)
Expanded emergency hotline services and started responding to cyber-related issues 24/7 (from April 2022)

Use digitalization to support small andmedium-sized enterprises (SMEs)

Increase written premium by 15‒25 billion yen through insurance
for small and medium-sized enterprises by fiscal 2023 (Tokio
Marine & Nichido Fire; same as above)*3

Promote additional compensation based on specially packaged products for small and medium-sized enterprises
Launched a website (BUDDY+) that offers one-stop solutions from information provision to issue resolution, strengthening ourapproach to customers

Improve business eﬃciency with digitaltechnology

Enhance the efficiency of operations with a one-percentage-point
improvement in the combined ratio by fiscal 2023 (Tokio Marine& Nichido Fire; same as above)

Combined ratio of 92.5% as per the fiscal 2023 plan (Tokio Marine & Nichido Fire, 0.9-percentage-point improvement from fiscal
2020 on a normalized basis)

Conserve biodiversity and wetlands throughactivities such as mangrove reforestationand marine protection eﬀorts

Maintain carbon neutrality

Achieved carbon neutrality in fiscal 2022 (10th consecutive year since fiscal 2013)

Promote social programs such as the Green
Gift Global Vitality Program

Have 100% of employees participate in social contribution
activities

100% of employees participated in social contribution activities (fiscal 2022)

Provide various educational programsContinue providing green classes

Green classes were held approximately 900 times and attended by 59,000 people (cumulative total as of March 31, 2023)

Continue providing classes on disaster prevention

Disaster prevention classes were held approximately 1,195 times and attended by approximately 77,000 people (same as above)
Chinese version of disaster prevention classes held 25 times and attended by approximately 1,800 people (same as above)

Continue providing classes on risk and the future

Risk and the future classes held 59 times and attended by approximately 1,900 people (same as above)

Continue implementing StreetWise Finance, a ﬁnancial insurance
education program

Approximately 170,000 participants (cumulative total as of June 30, 2023)

Create pillars other than those above

Creation of new pillars to contribute to future generations (see p. 70)

Disclose information based on the TCFD recommendations
through comprehensive reports, sustainability reports, etc.

Held themed presentations, “Tokio Marine Groupʼs Contribution and Growth Strategy in the Renewable Energy Market (June2021)” and “Our Climate Strategy & the TCFD (January 2021)”

Properly disclose information bystrengthening compliance with the TCFD
and other guidelines

Major initiatives
for ﬁscal 2023
(ongoing)

2

Surpass 300 billion yen in cumulative economic value frommangrove plantations by fiscal 2038

Revised our “Basic Approach to Climate Change” on September 30, 2022
Released the Human Capital Report and TCFD Report 2023 (June 2023)
Looked into disclosing information related to natural capital in line with the TNFD framework*2 Generally progressing well

Progress andevaluation*2

Strategy and Business Platform Supporting Our Purpose Story

For society

For employees

Stakeholders

Materiality

Major initiatives
for ﬁscal 2023

*3 Net premiums written069

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Special Features on Future Generations and Human Rights

SpecialFeatureCommitment to Respecting Human Rights

Tokio Marine Group is dedicated to respecting human rights across all business endeavors. Guided by principles such as

Initiatives for Future Generations

the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, the ILO International

Based on the strong belief that it is our duty to pass on a bright future to the next generation, we have positioned future

established the Human Rights Subcommittee as part of a promotion structure, conducting risk assessments and impact

generations as stakeholders and are dedicated to entrusting them with a sustainable environment through endeavors such

evaluations regarding human rights issues concerning our stakeholders to clearly identify high-priority challenges. In theas mitigating climate change and conserving biodiversity. In fiscal 2022, we established a cross-functional global task force

future, we will continue to engage in dialogue with our stakeholders, enhancing the sensitivity of our leadership and eachto discuss initiatives for contributing to future generations, which identified three key themes and five priority initiatives to

employee towards human rights to enable swift response to human rights issues.

SpecialFeatureLabor Standards, and the United Nations Guiding Principles on Business and Human Rights, we established the Tokio
Marine Group Basic Policy on Human Rights and are actively advancing initiatives based on this. We have also

focus on. In fiscal 2023, we will promote these efforts both domestically and internationally.
Areas of focus
Restoration of natural capitaland response to climate change

Nurturing the leadersof tomorrow
Supporting the transition toa circular economy

Outline of key initiatives
Disclosure of information on biodiversity conservation and natural capital (planting of mangrove trees and otherreforestation efforts, restoration of seagrass beds)
Investment in natural capital (ESG investment and financing) (impact investment targeting natural capital,
development of general business investment and financial products)
Educational support for children and students and industry-academia collaboration (conducting educationalclasses and fostering talent through collaboration with educational institutions)Support for participation in business activities (providing opportunities for high school students to intern andyoung employees to participate in management)
Support for waste reduction and recycling through insurance (promoting regeneration and reuse of damaged
goods through property insurance)

Summary of Key Initiatives

Promotion Structure

Policy formulationand establishment ofpromotion structure

Formulated the Basic Policy on Human Rights and established the Human Rights Subcommittee
Formulated the Policy to Address Environmental and Social Risks
Developed the Responsible Procurement Guidelines

Board of Directors

Risk assessments

Formulated a human rights risk map
Held human rights workshops

Impact evaluations

Conducted interviews and surveys with rights holders in the value chain
Performed self-assessments using a checklist of humans rights issues within the Group

Restoration of Natural Capital and Response to Climate Change
The preservation of biodiversity and the natural environment is a global priority. Tokio Marine Group started planting
mangroves in 1999, and since then we have been engaging in this distinctive endeavor as “insurance for the future of
the earth” to pass down a safe and secure environment to future generations (total of 12,261 hectares as of March
31, 2023). In ﬁscal 2022, we initiated eﬀorts to preserve seagrass beds, which possess a high capacity for absorbing
and sequestering atmospheric CO2, along with their water puriﬁcation capabilities. Across the Group, we arecommitted to advancing initiatives that safeguard the global environment. Also in 2022, we established a team at
TMNF dedicated to impact investments that harmonize both social and economic value, speciﬁcally targetinginvestments in natural capital. In addition to renewable energy funds and environmental funds, we also committed toinvesting in a new ﬁeld, forest funds, in ﬁscal 2023. Through these endeavors, we are exploring approaches fordisclosing information about natural capital and conducting assessments of the eﬀects (including economic value) on
ecosystems, such as mangrove reforestation. We are also looking into disclosures that align with the guidelines set
forth by the Taskforce on Nature-related Financial Disclosures (TNFD).

Stakeholder dialogue

Supporting the Transition to a Circular Economy
We are engaged in eﬀorts to reduce food waste and promote recycling through insurance. In Japan,
TMNF has formed a consortium to combat food loss with three private companies, collecting data
related to food waste and developing insurance policies to compensate for the costs of foodrecycling. In Southeast Asia, we oﬀer cargo insurance that provides compensation for food productsthat have lost commercial value due to damage to outer packaging in transit with the condition of
donating them. This supports the circular economy by contributing to the promotion of sustainable
practices for still-edible food items.

Guidance andoversight

Implemented employee education and training
Established a hotline (internal reporting channel)

Human Rights Working Group
Issued the Integrated Report and the Sustainability Report
Engaged in dialogue with external experts

Devise and implement initiatives

2
Strategy and Business Platform Supporting Our Purpose Story

Regardless of the era, it is our profound duty to educate and instill awareness in the young minds
destined to shape the future. We have been conducting disaster prevention classes in Japan since2012 to empower children with the essential skills for disaster readiness, with around 77,000
participants as of March 31, 2023. Moreover, we have recently extended comparable initiatives on
a global scale. For instance, in Vietnam, we introduced an educational program addressing theprevention of water-related accidents, a critical social concern. Additionally, at TMNF, we arecommitted to continuing our educational and awareness initiatives for children. This includes
organizing junior internships centered on addressing social challenges for high school students.

Report on
progress

Sustainability Committee
Mitigation measures

Nurturing the Leaders of Tomorrow

070

Steps for Initiatives

Establishment of Policies
In December 2021, we formulated the Tokio Marine Group Basic Policy on Human Rights aligned with
the United Nations Guiding Principles on Business and Human Rights, clarifying our commitment as aGroup to respect human rights across employers, businesses, and the value chain. Additionally, wedeveloped the Responsible Procurement Guidelines as a normative framework towards promoting
responsible procurement and procurement practices throughout the value chain.

Risk Assessment■Development of Human Rights Risk Map
We have identiﬁed the risks related to human rights
issues of key stakeholders relevant to our business.

▶Key Areas of Focus for Each Business Area
Identiﬁed in the Workshop
Business
Areas

Areas of Focus■Human Rights Workshop
In November 2022, a human rights workshop wasorganized and held by members of the Planningand Administrative Section. Taking into accountthe insights of external experts, we conducted anassessment of risks within our business areas(insurance underwriting and investment, value
chain, and Company employees).

Insurance
underwriting
and investment

Insured companies
and individuals as insurance customers
and financing recipients

Value chain

Insurance agents
Foreign technical trainees and workers engaged
in automotive maintenance
The Group s suppliers and service providers

Company
employees

Employees

Impact Evaluation
Based on the results of the workshops, we pinpoint key areas of focus considering the impact and potential risks to our stakeholders and conduct an impact
evaluation. In ﬁscal 2022, we focused on foreign technical trainees engaged in automotive repairs within our value chain. With guidance from external experts,
we conducted interviews to gain a better understanding of the actual situation. Based on the ﬁndings, we will work on addressing the challenges identiﬁed.
071

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations
As a founding member of the
Task Force on Climate-related
Financial Disclosures (TCFD),
we will disclose information thatfacilitates investment decisions
and contributes to the spread andpromotion of climate-related
information.

Masaaki Nagamura
Fellow (International Initiatives),
Tokio Marine Holdings TCFD Membership

The only Japanese national to be recognized as the Most Inﬂuential
on Climate Change in the Insurance Industry by Insurance ERM**: A magazine based in the United Kingdom focused on insurance ERM

Category

Page

Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p.73
Strategies・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p.74
Risk Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p.84
Metrics and Targets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p.85

Taking into account the increasing importance of climate change
mitigation in the international community, in June 2023, we issued
the comprehensive “TCFD Report 2023” outlining our eﬀorts
related to climate change in accordance with the recommendationsof the Task Force on Climate-related Financial Disclosures (TCFD).

Governance
Board of Directors
The Board of Directors recognizes responding to climate change
as a material management issue and assumes the role ofsupervising our sustainability strategy and initiatives. The Board
deliberates on the Groupʼs sustainability policies encompassing
climate action, as well as evaluates and determines mid-term andsingle-year plans. The Board also holds discussions on corporate
strategy on the themes of the management environment andmanagement issues, including climate change countermeasures,
and also fully leverages the insights of outside directors andoutside Audit & Supervisory Board members.

Group Chief Sustainability Oﬃcer (CSUO)
We established the new position of CSUO in April 2021 toaccelerate the promotion of sustainability strategy, including
climate action, across the entire Group. The CSUO, a Director,
oversees the promotion and permeation of the sustainability

strategy, presents related policies to the Board of Directors andthe Management Meeting for discussion, and takes on the role ofreporting the progress to these bodies.

2

Sustainability Committee
We established the Sustainability Committee in April 2021 toaccelerate our sustainability strategy, including climate action,across the entire Group. Chaired by the CSUO and comprisingsuch members as the CEO, chief oﬃcers, and management ofoverseas Group companies, the Sustainability Committee
deliberates on details of our sustainability initiatives and policies

on a global basis and monitors the progress of each initiative.
The committee met four times in ﬁscal 2022 to promote andexecute the sustainability strategy, formulate medium- tolong-term targets (KPIs) related to sustainability, formulate andreview annual plans, and deliberate on other items.

Division Dedicated to Promoting Sustainability
Tokio Marine Holdings has a division dedicated to the promotionof the Groupʼs sustainability including climate action(Sustainability Division, Corporate Planning Department), which

identiﬁes major challenges related to sustainability as well as
formulates and implements related Group-wide strategies, andconducts monitoring.

Strategy and Business Platform Supporting Our Purpose Story

Climate change is a global issue of human-historical proportions that threatens the safety and security of ourcustomers and society. The growing severity of natural disasters directly affects the insurance industry.
Therefore, the Group recognizes that climate change is an extremely important issue to address head on not
only in terms of our core insurance business, but also as a global company and an institutional investor. This
special feature section will convey the Group s initiatives using the categories of governance, strategy, risk
management, and metrics and targets based on the TCFD recommendations.

Climate-related Financial Disclosures
Based on the TCFD Recommendations

Compensation System for Directors and Executive Oﬃcers
In ﬁscal 2022, we started incorporating non-ﬁnancial indicatorsconcerning the tasks on climate action and other key issues
in our sustainability strategy into the performance-linked
compensation for Directors and Executive Oﬃcers. We use theprogress of each task toward our vision as an indicator, and after
performing the ﬁrst assessment of compensation amounts at the
Sustainability Committee, hold a deliberation and give a ﬁnal
decision at the Compensation Committee.

The report can be found on the Tokio Marine Holdings website.

072

073

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations▶Changes in Insurance Payments in 2050

Strategies

Intensity (wind speed)

NumberJapan (typhoons)+5％ to +53％

‑30％ to +28％

United States (hurricanes)

0％ to +37％

‑36％ to +30％

Recognition of Risks and Opportunities
risks). Moreover, as demand for insurance in the renewableenergy sector grows, it presents potential opportunities forour business. The following are some examples of risks andopportunities in the Groupʼs business activities.

Acute

Potential for growing frequency and scale oftyphoons, ﬂoods, and other weather events

Chronic

Rising temperatures
Other weather changes, such as droughts and heat waves
Rising sea levels
Impact on arthropod-borne infectious diseases

Policies andregulations

Increase in carbon prices
Strengthening of environment-related regulations and standards
Increase in climate-related legislation

Technology

Technological innovation toward the transition toa decarbonized society

Examples of risks to the Group s business activities●

Changes in the demand for and supply of products
and services

Reputation

Changing customer and societal awareness of initiatives
surrounding the transition to a decarbonized society

Impact on insurance payouts
Impact on business continuity caused by damage to buildings andother facilities at bases

Decreases in the corporate value of portfolio companies and in thevalue of the assets held by the Company due to higher carbon
prices● Inﬂuence in liability insurance payments●

Decreases in the corporate value of portfolio companies that havemissed the transition to a decarbonized society and in the value ofthe assets held by the Company● Decline in revenue due to technological innovation and inability toascertain changes in customer needs●●

Reputational damage due to the Company s eﬀorts being deemed
inadequate

Drastic increase in the need for insurance for renewable energy
projects● Increase in investment and ﬁnancing opportunities on the back ofcompanies increasing funding needs associated with response todecarbonization● Increase in disaster prevention and mitigation needs toward
increasing resilience against disasters

Opportunities●

Resource efficiency,
energy sources,
products and services,markets and resilience

Demand for products and services aligned withchanges in energy sources and designed toincrease resilience; changes in public awarenessAs is described in the “risk management” items below, we identify the “risk of major wind and ﬂood disasters” as a “material risk” that will
have an extremely large impact on our ﬁnancial soundness and business continuity. We believe such risks could increase in frequency andseverity, owing to the eﬀects of climate change.

Scenario Analysis
Scenario analysis is the process of identifying and evaluating thepotential impact of climate change based on certain scenarios.
The Group believes it can be ﬂexible and resilient to these

impacts, as most non-life insurance policies are relatively shortterm and the Groupʼs assets under management are highly liquid
ﬁnancial assets.

(1) Physical Risks
Physical risks are those related to physical impacts of climatechange. Climate change increases the frequency and intensity ofnatural disasters, which could impact claims payments andbusiness continuity. We conduct a scenario analysis of physicalrisks as part of our efforts to identify and assess their impact. The
Group takes part in the United Nations Environment Programme
Finance Initiative (UNEP FI). Using analysis and assessment

074

uncertainties, as described later (see p. 77). In assessing the impact
of climate change, it is also important to evaluate not only weather
phenomena but also the vulnerabilityof society to disasters as well as the extent to which real estateand personal properties will be concentrated in areas exposed tonatural disaster risk in the future and the extent to which their asset
values will increase (in other words, the extent to which asset
concentration will change). The basis for these projections andassessments is indicated in the following pages.

tools developed by UNEP FIʼs climate change impact
assessment project, we have created the following assessment of
the impact of changes in the intensity (wind speed) and numberof tropical cyclones on our insurance payments under the IPCCʼs
Representative Concentration Pathway (RCP) 8.5 scenario
forecast as of 2050.

a. Change in Weather Events
How a weather event will change due to the impact of climatechange and the degree of confidence of such an impact forecast
will vary depending on the type of weather event. Figure 1 shows
the confidence of climate change impact projections by weather
event type. Notably, the confidence in impact projections isgreater for extreme rainfall compared to tropical cyclones, suchas typhoons and hurricanes. However, the impact on extreme
rainfall entails more uncertainty compared to temperature
variations such as extreme heat or extreme cold.
For extreme rainfall and tropical cyclones (typhoons in Japan andhurricanes in the United States), which are two weather events
that considerably affect Tokio Marine Group, we consider the
impact of climate change as follows.

High conﬁdence

Extreamcold

Extreamheat

2Droughts
ExtreamExtremerainfallsnow
Extratropical & ice
cyclones
TropicalSeverecyclonesconvective Wildﬁres
stormsLow conﬁdenceHigh conﬁdence

How well we understand the likely inﬂuence on event types in general

Figure 1: Confidence of impact forecasts of climate change
Source: Created by Tokio Marine Holdings based on material prepared by the U.S. National Oceanic and Atmospheric Administration▶Impact of Climate Change on Heavy Rains
In Japan, the frequency of heavy rains has been on the rise since 1900 (Figure 2). The IPCC Sixth Assessment Report released in August2021 states that heavy rains will become more severe in the future in step with a temperature rise and that for every temperature rise of about
1ºC, the intensity (precipitation) of heavy rains will increase by approximately 7%.

Strategy and Business Platform Supporting Our Purpose Story

Markets●

The Tokio Marine Research Institute, a Group company, began
conducting research in 2007 to evaluate and calculate the impact
on insurance loss of changes in wind disaster risk associated withtyphoons under future climate conditions (impact under the IPCCʼs
RCP4.5 and RCP8.5 scenarios) and changes in flood risk due toincreased rainfall (impact resulting from temperature increases of2°
C and 4°C). Referring to the results of this scenario analysis, we
assess the impact on underwriting of natural disasters resulting
from increasingly severe climate change.
Future projections of climate change scenarios are subject toAbility to detect possible inﬂuenceof climate change on speciﬁc event

Transition risks

Physical risks

Examples of events* The figures above reflect economic losses, assuming the same impact on insurance payments.
* The figures above show the rate of change from current weather conditions (1980‒2000) to those in around 2050.

Days per year with precipitation of 100 mm or more

Tokio Marine Group anticipates an increase in climate-relatedrisks and is identifying and assessing their impact on ouroperations. Climate-related risks include risks related to thephysical impacts of climate change (physical risks) and risks
related to the transition to a decarbonized society (transition

2.5

2

1.5

1

0.5

0

1901 1904 1907 1910 1913 1916 1919 1922 1925 1928 1931 1934 1937 1940 1943 1946 1949 1952 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 Year
Figure 2: Days per year with precipitation of 100 mm or more

Source: Tokio Marine Holdings based on materials from the Japan Meteorological Agency (website)075

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations
b. Changes in Vulnerabilities in Society and Asset Exposure

Atmospheric and oceanic large-scale circulations (e.g., El Niño
and monsoons) are closely related to the formation, development,
and movement of tropical cyclones. As climate change affects
each of these factors, the impact of climate change on tropical
cyclones consequently becomes more uncertain. Looking at pasttrends, the IPCC Sixth Assessment Report reported an increasein the number of strong typhoons in Japan. However, thecertainty level is not yet high, and longer-term, higher-quality
observations will be needed to monitor changes in long-term

8

trends (Japan Meteorological Agency).
As for hurricanes making landfall in the United States, eventhough the ratio of intense hurricanes has risen over the past
40 years, a longer-term survey covering the period from 1900
revealed that there is no discernible trend either in the number ofhurricanes or the intensity of those hurricanes (IPCC Sixth
Assessment Report).

All hurricanes

7
6

4
3
2
1
0
1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year4

3

2

100,000
80,00060,00040,00020,00001965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 Year
Figure 5: Areas inundated by floods (ha)Source: Tokio Marine Holdings based on materials from the Ministry of Land, Infrastructure, Transport and Tourism (flood statistics)

changes in weather events themselves, such as heavy rains andtyphoons, as well as societyʼs vulnerabilities to disasters andchanges in asset exposure are essential in predicting damage
due to natural disasters.

▶Change of Vulnerabilities in Society

101900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year
Figure 3: Number of hurricanes in the United States

Source: Created by Tokio Marine based on Klotzbach et al. 2018**：Philip J. Klotzbach, Steven G. Bowen, Roger Pielke Jr., and Michael Bell, 2018: Continental U.S. hurricane landfall frequency and associated damage. Bull. Amer.
Meteor. Soc., 99, 1359‒1376, https://doi.org/10.1175/BAMS-D-17-0184.1 (© American Meteorological Society. Used with permission.)In the future, while the number of tropical cyclones is expected tolevel off or decrease overall, the ratio of intense tropical cyclones
is forecast to increase. As such, there are both decrease andWind speed(increase)

Change rate (%)

120,000

The amount of damage will vary significantly if there is achange in asset exposure, that is, a change in the degree ofconcentration of assets or in the value of assets in areas exposed
to natural disaster risk. In this way, we recognize that identifying

Major hurricanes

because Japanʼs disaster prevention infrastructure, including
embankments, has improved since the mid-19th century and iseffectively reducing the occurrence of floods during heavy rains.

increase projections for the number of intense tropical cyclones(IPCC Sixth Assessment Report).

Rain rate(increase)

Number of all tropical cyclones(both increase/decrease)

%

%

%

%

+30

+80

+80

+20

+20

+40

+40

+10

+10

0

0

0

0

-40

-40

GlobalTyphoons Hurricanes

GlobalFigure 4: Changes in tropical cyclones due to a temperature change of +2ºC

Typhoons Hurricanes

Globalfuture, making its recommendations for rivers in 2019 and forhigh tides in 2020.
Overseas, efforts to increase resilience throughout society
have also been under way. The United States, for example,
has improved its disaster prevention infrastructure and revisedbuilding codes following huge natural disasters, including
Hurricanes Katrina in 2005, Sandy in 2012, and Irma in 2017.
In keeping with the move toward strengthening resilience inand outside Japan, Tokio Marine Group has been contributing togreater resilience of the entire society by supporting customers
to cope with disasters through the dissemination of disaster
information.

Number of all major cyclones(both increase/decrease)+30

Typhoons Hurricanes

In Japan, revisions to the Building Standards Act have proved todirectly translate into the better resilience of society. In fact,
revisions made in 1981 to the seismic building codes and in2000 to the wind pressure resistance building codes have greatly
contributed to the improved resistance of buildings against
natural disasters. More recently, Typhoon Faxai, which madelandfall in 2019 and caused damage to the roofs of many
houses, has prompted revisions to the standards for roofing on
countermeasures against intense winds that were enacted in
January 2022. In addition, the Ministry of Land, Infrastructure,
Transport and Tourism has announced its policy that the
anticipated intensification of natural disasters should beconsidered in improving disaster prevention infrastructure in the2Strategy and Business Platform Supporting Our Purpose Story

Number of hurricanes on the U.S. mainland5

As shown in Figure 2 on p. 75, the frequency of heavy rains inJapan has been increasing since 1900. Figure 5 below, on theother hand, shows a declining trend for flooded areas. This is
Flooded areas (residential and other land) (ha)▶Impact of Climate Change on Tropical Cyclones

Typhoons Hurricanes

GlobalSource: Created by Tokio Marine Holdings based on Knutson et al. 2020**：Thomas Knutson, Suzana J. Camargo, Johnny C. L. Chan, Kerry Emanuel, Chang-Hoi Ho, James Kossin, Mrutyunjay Mohapatra, Masaki Satoh, Masato Sugi, Kevin Walsh,
and Liguang Wu, 2020: Tropical cyclones and climate change assessment part II: Projected response to anthropogenic warming. Bull. Amer. Meteor. Soc., 101, E303‒E322,
https://doi.org/10.1175/BAMS-D-18-0194.1 © American Meteorological Society.Used with permission.

076

077

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations▶Recognition of Changes in Asset Exposure
In Japan, an influx of people into urban areas is expected tocontinue in the future. Over the period from 2015 to 2040, eventhough the number of households in the country is projected to

decline 4.8% on a national average, an increase is expectedin some prefectures, including Tokyo. As such, the trend ofchanges in asset exposure varies from region to region.

The importance of changes in asset accumulation when
considering the damages caused by natural disasters is
a common factor, both domestically and internationally.
While it is known that the economic losses from pasthurricanes have been on the rise in the United States,
250

adjusting for the influence of asset accumulation reveals a
reduced trend of significant changes. This emphasizes thatthe increase in economic losses is largely attributed toasset accumulation.

Adjusted by inﬂation only

200

N

0

400km
National: -4.8%(%)
0 or higher-5 to less than 0-10 to less than -5
Less than -10

Figure 6: Changes in the number of households from 2015 to 2040
Source: National Institute of Population and Social Security Research, “Number of Household Projections for Japan (2017 Estimates)”

Area of extremely high risk
with land development andbuilding restrictions

low

risk

Transport and Tourism has stated that it is important to consider
flood risk reduction when determining the locations of housing
districts and city functions. Accordingly, Tokio Marine Group ismonitoring the policy trends of the national and local governments.

50
01900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015Year

250

Adjusted by inﬂation and exposure

200
150
100
50
0
1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015Year
Figure 8: Economic loss due to hurricanes on the U.S. mainland

Source: Created by Tokio Marine based on Klotzbach et al. 2018**：Philip J. Klotzbach, Steven G. Bowen, Roger Pielke Jr., and Michael Bell, 2018: Continental U.S. hurricane landfall frequency and associated damage. Bull. Amer. Meteor.
Soc., 99, 1359‒1376, https://doi.org/10.1175/BAMS-D-17-0184.1 (©American Meteorological Society. Used with permission.)c. Impact on Business Continuity: Promoting Climate Change Adaptation Measures
highArea that currently has risk andwill continue to face residual
risk after measures in terms ofhardware, such as ﬂood
control, are implemented under
the ongoing plan, but is serving
as a base of civic life and isdesirable to remain so in the
future as well

Area that will continue to facesigniﬁcant residual risk after
measures in terms ofhardware, such as ﬂood
control, are implemented,
requiring consideration of
relocation to a safer area with
its population on the decline

Figure 7: Direction of urban development based on the risk of water-related disasters
Source: Tokio Marine Holdings based on materials from the Ministry of Land, Infrastructure, Transport and Tourism (website)

078

100

Area requiring measures tocounter the risk of ﬂood frominland waters in its central
district, where city functions
are to be located

Tokio Marine Group uses multiple scenarios*1 to perform analysis
and evaluation*2 on the impact of climate change risk on ouroperations using holistic and context-specific approaches. By

doing so, we are promoting climate action and initiatives toincrease resilience against disasters.

*1 Including IPCCʼs Shared Socioeconomic Pathway (SSP) 5-8.5, SSP3-7.0, SSP2-3.5, SSP1-2.6, SSP1-9, RCP8.5, RCP6.0, RCP4.5, and RCP2.6 scenarios*2 Climate change risk analysis and evaluation conducted in collaboration with Risilience Limited of the United Kingdom

Area that has high risk oflandslide near a cliﬀ, forwhich the need for relocation
will be examined asnecessary

Area that has relatively low
risk but needs to establish analert and evacuation system
to further increase safety

2Strategy and Business Platform Supporting Our Purpose Story

From the viewpoint of damage due to natural disasters, an
important factor is the exact location of assets (whether within ahazardous area). In response to the frequent occurrence of natural
disasters in recent years, Japanʼs Ministry of Land, Infrastructure,Continental U.S. economic loss from harricanes(USD billion)

150▶Holistic Approach
Based on a holistic approach, we use multiple scenarios toanalyze and evaluate, both quantitatively and qualitatively, theimpact of an increase in weather disasters (such as heavy rains
and floods) on our operations and have been implementing
related measures. On the whole, we have concluded that anincrease in weather disasters will not have a profound impact on
our operations as compared to the manufacturing and otherindustries for a number of reasons. For example, insurance
products represent an intangible service and do not necessarily
require physical sales bases, and their development andproduction involve minor supply chain risks in the procurement of
raw materials.

▶Context-Speciﬁc Approach
Based on a context-specific approach, we use multiple scenarios
to analyze and evaluate, both qualitatively and quantitatively, theimpact of an increase in weather disasters (such as heavy rains
and floods) on our operations and have been promoting
initiatives to protect our own assets from weather disasters,

which are expected to become more severe due to climatechange.
Specifically, we are implementing measures against flood
disasters, such as installing emergency power generators andmore water bars at our major bases.

079

2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations
Implementation of Climate Change Strategy(2) Transition Risks
Transition risks are risks associated with the transition to a
decarbonized society. As the global momentum toward
decarbonization accelerates and the transition to a decarbonizedsociety progresses, we anticipate more stringent regulations,
technological innovation, asset value fluctuations and changes in
the investment environment as well as in customer needs, which
could affect the Groupʼs businesses.
Transition risks include impact on the corporate value ofinvestee companies and the value of assets held by the Company
due to increased costs associated with GHG emissions resulting
from climate change. To reduce the impact of these factors, weare decreasing total holdings of business-related equities andpromoting engagement with investee companies.
We have estimated the impact of transition risks on assets
under management by Tokio Marine Group (equities, corporate
bonds, commercial mortgage-backed securities (CMBS), andgovernment bonds) using “Aladdin Climate,” a model provided byBlackRock Solutions. With the model, we have quantified theimpact on corporate value due to changes in scenario variables(carbon prices, energy demand, fuel prices, emissions, etc.)
based on scenarios provided by The Network of Central Banksand Supervisors for Greening the Financial System (NGFS). Morespecifically, the quantification of the impact on corporate value
has been conducted by comparing the scenario where current
policies continue to 2050 (NGFSʼs Hot House World‒Current
Policies scenario, assuming limited policy changes and a 3.3°
C
temperature rise at the end of this century) with the following two
scenarios, also of NGFS.
(1) Orderly: Net Zero 2050 (assuming a temperature rise
suppressed to 1.5°
C and net zero CO2 emissions both by 2050)(2) Disorderly: Delayed Transition (assuming a 1.8°
C temperaturerise by 2050 due to delayed policy changes)

The following shows the results of the model-based estimates of transition risks of assets (equities, corporate bonds, CMBS, andgovernment bonds) (impact analysis on asset prices based on scenarios up to 2050) held by Tokio Marine Group as of March 31, 2023.

Transition risks
Orderly

Disorderly

-1.5%

-1.3%

Equities

-7.7%

-5.6%

Corporate bonds

-2.4%

-1.8%

CMBS

-0.0%

-0.2%

Government bonds

-0.0%

-0.4%

* The Aladdin Climate analytics of BlackRock Solutions contained in this report should not be construed as a characterization of the materiality or financial impact of thecorresponding information. The Aladdin Climate analytics include non-financial metrics and involve measurement uncertainties resulting from limitations inherent to the nature of thecorresponding data and the methods used for determining such data.
The Aladdin Climate analytics are not fixed and are likely to change and evolve over time. The Aladdin Climate analytics rely on relatively new analysis methods, and there arelimited peer reviews or comparable data available. BlackRock Solutions does not guarantee and shall not be responsible for the content, accuracy, timeliness, non-infringement, orcompleteness of the Aladdin Climate analytics contained herein or have any liability resulting from the use of the Aladdin Climate analytics in this report or any actions taken inreliance on any information herein.

It should be noted that the model results used by Tokio Marine
Group do not separately calculate the positive effects (market
superiority or business opportunities) generated by technically
implementing climate change mitigation and adaptation measures
as we transition to a low-carbon society. Moreover, we believethat this and other quantification models of climate change are080

Tokio Marine Group assumes the roles of an insurance company,
institutional investor, asset manager, global company, and good
corporate citizen. In every role, we are promoting the creation of asafe, secure, and sustainable future to protect our customers andlocal communities in times of need even 100 years from now. In
the following sections, we describe our initiatives in each role.

a. Initiatives as an Insurance Company (Insurance Products and Services)
Tokio Marine Group engages in the development and provisionof insurance products and services that support the transition toa decarbonized society. As one example, we provide insurance
related to renewable energy. There is momentum toward
decarbonization worldwide and a shift to renewable energy inmajor countries for a more efficient electricity supply. In building
and expanding the use of offshore wind power generation plants,
for example, insurance is indispensable as project financing
will not be extended without insurance. However, offshore
construction work is never easy, and there is also a need toreduce work errors and prepare for typhoons. It thus representsa challenging domain requiring high levels of underwriting andclaims services capabilities.
Tokio Marine Group has acquired GCube Insurance Services, Inc.,a leading company offering insurance to renewable energy
operators. Based on its advanced underwriting and claims
services capabilities, we are driving the more widespread useof renewable energy on a global basis through insurance
underwriting and insurance payments, seamlessly covering
everything from the construction phase to the operational phase
after the launch.
In February 2021, Tokio Marine & Nichido (TMNF), a Group
company, established the company-wide Green Transformation(GX) Task Force to support customersʼ efforts to become carbon
neutral and transition to a decarbonized society and contribute to
the growth and development of the industry.
The Task Force is engaging in the development and provisionof insurance products and solutions that will contribute to themore widespread use of renewable energy, including offshore
wind power and solar power, the spread of storage batteries, andthe promotion of the use of hydrogen. Specific efforts tocontribute to customersʼ transition to a decarbonized society are
multifaceted. They include developing defect warranty insurance
for the liability of contractors constructing offshore wind power
generation plants; undertaking an initiative to support local
communities in achieving decarbonization by utilizing a solar

power purchase agreement (PPA) model; developing insurance
products to help electricity retailers to stabilize their management
and secure a power supply capacity; and providing a service
to support information disclosures based on the TCFD
recommendations.
We believe that engagement on the theme of the environment
with business partners is essential to shift to a decarbonizedsociety and realize carbon neutrality. To date, TMNF has madeengagement and held dialogue with more than 250 companies.
Of these, the company has offered solutions to resolve various
issues to more than 120 companies while leveraging its
expertise.
As one engagement example, TMNF has been holding
dialogue with power plants for which the company has provided
insurance. The company encourages them to consider theenvironment through the adoption of innovative high-efficiency
power generation technologies and carbon dioxide capture,utilization, and storage technologies (CCUS/carbon recycling)that reduce GHG emissions and supports their transition by
providing relevant products and consulting services.
In November 2022, TMNF also launched, jointly with MUFG
Bank, Ltd., a service to support disclosures of climate changerisks and opportunities and other related information inaccordance with the TCFD recommendations as a service
solution to help companies promote GX.

2Strategy and Business Platform Supporting Our Purpose Story

Total(1) Initiatives of Tokio Marine Group

still in the development stage, undergoing upgrades based on thelatest research findings. We thus have no plan, at this point, touse the data in our management decision-making process, butwill continue to carry out research and investigations to explore
more appropriate ways to utilize such quantification modelingmethods.

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2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations
b. Initiatives as an Institutional Investor (Investment and Financing)
As a signatory to the United Nations Principles for Responsible
Investment (PRI) through Group companies TMNF and Tokio
Marine Asset Management, we have established a policy
concerning environmental, social, and governance (ESG)
investment and financing, considering not only financial
information but also ESG elements. By incorporatingclimate-related elements into the investment decision-making
process, we are supporting the transition to a decarbonizedsociety.
Specifically, we are undertaking ESG engagement to support
increased corporate value and the sustainable growth of investee
companies through constructive and purposeful dialogue thatconsiders non-financial factors including ESG elements inaddition to their financial data as well as ESG integration where
both financial data and non-financial data are used in theinvestment decision-making process.
In fiscal 2022, TMNF established a team to carry out impact
investment that generates both social and economic value andhas made investment commitments to renewable energy,
environmental, and other funds conducive to countering climatechange. In fiscal 2023, the company committed to investment in a
new field, specifically a forestry fund, to promote the passing downof valuable forest resources to future generations.
As for our ongoing themed investment and financing efforts,such as those related to green bonds and sustainability bonds,
we are also promoting the creation of social and economic value
in new fields. In fiscal 2022, we invested in Japanʼs first blue
bonds to support the investee companiesʼ efforts related toenvironmentally sustainable fishery and aquafarming businesses.
We have also invested in transition bonds issued by gas, iron andsteel, and other companies. In this way, we have been providing
a broad range of support for the realization of a decarbonizedsociety in the investment and financing field.
The total balance of ESG-themed investments and financing,including green bonds, sustainability bonds, and green loans, wasabout 109 billion yen as of March 31, 2023, for TMNF, TMNL,
and NF. In fiscal 2022, TMNF started making impact investments
in funds with measurable social returns, such as renewableenergy funds. Such commitments amounted to approximately
13 billion yen as of March 31, 2023.
We have also begun using data providers to conduct
quantitative analyses of the GHG emissions of our investee
companies.

c. Initiatives as an Asset Manager (Fund Formation)
Performance of renewable energy funds (total as of March 31, 2023)
Amount committed・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Approx. 62 billion yen
Units installed・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・45
Power generation capacity (DC)・・・・・・・・・・・・・・・・・・・・・・Approx. 280 MW

d. Initiatives as a Global Company (Leading Discussions at International Climate Change Conferences)
As climate change is an important social issue that needs tobe addressed by the entire world, Tokio Marine Group actively
engages in dialogue with international organizations,
governments, industries, academic communities, NPOs, andNGOs.
We have led discussions at international conferences, which
includes co-chairing a climate change‒related working group for
the Geneva Association since 2008. We have also joined the
Associationʼs climate change task force and have been engaging
in the formulation of scenario analysis and stress test guidelines
to perform forward-looking impact assessment of climate change.
In July 2018, TMNF became a founding member of theinsurer pilot group, launched by the United Nations Environment
Programme Finance Initiative (UNEP FI) under the Principles for
Sustainable Insurance (PSI) framework to examine and develop
methodologies and analytical tools for the insurance industry to
make climate-related disclosures based on the TCFD
recommendations. The company has contributed to the
publication of the final report of the UNEP FI pilot project, titled“Insuring the climate transition,” in January 2021.
Tokio Marine Kiln(TMK) and Tokio Marine HCC Internationalfrom Tokio Marine Group have joined ClimateWise, a climatechange‒related international initiative in the insurance industry.
They have been carrying out studies and research on various
risks and opportunities related to climate change jointly with
about 30 leading insurers in the world.

082

TMK is also a member of the Sustainable Markets Initiative,
an insurance industry task force envisioned by the then PrinceCharles of England and established in June 2021.
In Japan, the then Chairman of the Board of Tokio Marine
Holdings worked as one of the founders and contributed to theestablishment of the TCFD Consortium in May 2019. Since theestablishment, Tokio Marine Holdings has been a member of the
Planning Committee to deliberate on the consortiumʼs course ofaction. We have contributed to the creation of the three versionsof the TCFD Guidance released in December 2018, July 2020,
and October 2022, respectively, and “A Guide to Flood Risk
Assessments for Enhanced TCFD Disclosures” released by the
Ministry of Land, Infrastructure, Transport and Tourism in March
2023. We also participate in discussion on effective ways forcompanies to disclose climate-related information and how
to link the disclosed information to appropriate investment
decision-making of financial and other organizations.

disseminate the ideas of an insurance mechanism and risk
management practices in developing countries and regions
particularly vulnerable to the impact of climate change andnatural disasters in accordance with the Sendai Framework for
Disaster Risk Reduction 2015‒2030, which provides new world
guidelines for disaster risk reduction.
Tokio Marine Group is contributing to the creation ofinternational rules and the progress in research on climatechange and natural disaster risks through these initiatives.

e. Initiatives as a Good Corporate Citizen (Social Contribution)
Mangrove forests have an effect on the prevention and mitigationof global warming by absorbing and fixing a significant volumeof CO2. Under the concept of “Insurance for the Future of the
Earth,” TMNF has engaged in the Mangrove Planting Projectsince 1999. As of March 31, 2023, approximately 12,261
hectares of mangrove forest have been planted through thisproject in nine countries, primarily in Asia. In addition to TMNF,
other Group companies are now planting mangroves. We
have also announced the Mangrove-Based Value Co-creation
100-Year Declaration, which aims to create value through theblessings of nature brought by mangroves in collaboration with
forestry NGOs. Under the declaration, we will continue toundertake this project in the future.
In 2022, we launched activities to protect eelgrass beds.
Eelgrass is a type of seagrass, which grows in sandy, shallow
waters with sunlight and gentle waves. It has a high ability toabsorb and fixate CO2 from the atmosphere as well as purify
water. Together with mangroves, we will promote this initiative as
an effort to protect the global environment.
At every age, educating and enlightening children who will leadthe future is a great responsibility adults must assume. Around theworld, Tokio Marine Group is visiting schools to provide Green
Lessons and Disaster Prevention Lessons to children to raise theirenvironmental awareness and disaster preparedness.
With our strong belief that “it is our responsibility to pass on abright future to future generations,” Tokio Marine Holdings has
positioned future generations as its stakeholders in addition tocustomers, society, employees, shareholders, and investors since2021. We will step up our tree planting, education, and otherefforts to pass on a sustainable environment and society to thesefuture generations.

2(2) Policies Concerning Insurance Underwriting as well as Investment and Financing
Our basic policy on climate change is to support the decarbonizationof customers and local communities through insurance products andservices as well as investments and financing through constructive
dialogue with stakeholders. We individually set up a policy on eachtransaction for the areas that could cause significant, negative
impacts on the environment or society.

At the end of September 2020, we published “Tokio Marine:
Our Climate Strategy,” which we revised at the end of September
2021 and the end of September 2022. The following sections
describe our policies concerning insurance underwriting as wellas investment and financing to achieve the goals of the Paris
Agreement.

a. Insurance Underwriting
Tokio Marine Group has not provided new insurance underwriting
capacities to coal-fired power generation projects since
September 2020 or thermal coal mining projects since
September 2021, regardless of whether they are newly
constructed. However, we might grant exceptions after carefulconsideration for projects with innovative technologies andapproaches, such as CCS/CCUS*1 and mixed combustion,
aiming to achieve the goals of the Paris Agreement.

Strategy and Business Platform Supporting Our Purpose Story

Tokio Marine Asset Management has been operating a renewableenergy fund targeting investments in solar power plants since2012, effectively backing initiatives aimed at the transition to a
decarbonized society.

Additionally, through industry-academia collaboration with The
University of Tokyo, Nagoya University, Kyoto University, andTohoku University, we engage in research on climate change
and natural disaster risks in an effort to gain deeper scientificinsight into disaster prevention and mitigation and to raise thesophistication of measuring methods through risk modeling toascertain risk volume in even greater detail. Our efforts in thisarea include development of a stochastic risk assessment
approach. We believe that in addition to providing products
and services in developed countries it is also important toSince September 2022, Tokio Marine Group has also
strengthened its commitment by protecting the environment andsupporting the transition to a decarbonized society by no longer
providing new insurance underwriting capacities to oil and gas
company extraction projects*2 in the Arctic Circle (all areas northof latitude 66°
33, including the Arctic National Wildlife Refuge,
ANWR) and oil sands mining.

*1 Carbon dioxide capture and storage/Carbon dioxide capture, utilization, and storage*2 Exemptions for projects/companies with decarbonization plans that are aligned with the Paris Agreementb. Investment and Financing
With respect to investment and financing, Tokio Marine Groupwill not provide new financing for coal-fired power generation
projects or thermal coal mining projects. However, as with our
insurance underwriting policy, we might grant exceptions after
careful consideration for projects with innovative technologies
and approaches, such as CCS/CCUS and mixed combustion,
aiming to achieve the goals of the Paris Agreement.

In aligning with our insurance underwriting policy, we also nolonger provide new financing for oil and gas extraction projects in
the Arctic Circle and oil sands mining and are stepping up ourefforts to support the protection of the natural environment andtransition to a decarbonized society.

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2 Strategy and Business Platform Supporting Our Purpose Story | Sustainability Management | Information Disclosure Following the TCFD Recommendations
Risk Management

Metrics and Targets

Managing Climate-Related Risk
Based on Enterprise Risk Management (ERM)
Tokio Marine Group conducts enterprise risk management (ERM),
which includes the management of climate risks. Through the
ERM cycle, we comprehensively identify and assess risks, using
both qualitative and quantitative approaches. In the insurance
business, which pursues proﬁt through risk-taking, risk

assessment is the foundation of our business. The Group has
been working for many years to assess material risks (including
those due to natural disasters) both quantitatively andqualitatively. Speciﬁc initiatives are as follows.

physical risks) in the “material risks” category, which we believe
could become more frequent and severe due to the effects ofclimate change. For these material risks, we also formulate
control measures prior to risk emergence and response measures
for after risks occur.

Group utilizes reinsurance to prepare for natural disasters (capital
events) that occur once every few centuries, and we determine
earnings coverage from the standpoint of economic rationality
and take necessary measures.

Acquisition of Knowledge (Industry-Academia Collaboration, etc.)
Tokio Marine Group is deepening collaboration with both insideand outside experts to acquire knowledge about risks. Tokio
Marine Research Institute collaborates with The University ofTokyo, Nagoya University, and Kyoto University, among others, tocarry out impact analysis based on the possibility for increased
insurance losses associated with natural disasters that are●Reduction of GHG emissions
Reducing GHG emissions (CO2) for operations from Tokio Marine Group by 60% (vs. 2015)*3●Renewable electricity use
Using 100% of renewable electricity at Tokio Marine Groupʼs major business facilities●Electrification of company-owned vehicles (TMNF, TMNL, and NF)
Switching all vehicles owned by TMNF, TMNL, and NF to electriﬁed vehicles (EV, PHV, HV, etc.)

becoming more severe in nature. Moreover, Tokio Marine dR anda team of experts in natural disasters working in Atlanta, theUnited States, are leading eﬀorts to upgrade natural disasterrisk management across the entire Group, including various
evaluations of natural disaster risk models.

●Increase in insurance products that will contribute to green transformation (GX)
Increasing income from insurance premiums on GX-related insurance products by around 7 billion yen (TMNF)●Improvement of profitability of fire insurance
Improving profitability of fire insurance by more than 45 billion yen*4 (TMNF)*1: Medium-term targets still under consideration*2: Scope 3, Category 15, based on the GHG Protocol standards*3: Associated with our own business activities (Scope 1 [direct emissions] + Scope 2 [indirect emissions] + Scope 3 [other indirect emissions; Categories 1, 3, 5, and 6] based on the
GHG Protocol standards)
Scope 3 includes categories of importance to the Group for which numerical values can be obtained.
*4: Supposing natural catastrophe claims in an average year

GHG Emission Reduction Record
Achieve Carbon Neutrality in Business Activities●Reduction of GHG (CO2) emissions from Tokio Marine Group operations*5: 80,201 tons (34% reduction vs. fiscal 2015)(Scope 1: 13,362 tons; Scope 2: 41,190 tons; Scope 3*6: 25,649 tons)●Amount of GHG (CO2) fixed and reduced: 93,000 tons
Tokio Marine Group is working to reduce the environmental impact(domestic and international) and become carbon neutral by(1) conserving energy and using energy more eﬃciently, (2)planting mangroves to absorb and ﬁx CO2, (3) using renewableenergy (such as by procuring green electricity), and (4) amortizing

carbon credits. As a result of these eﬀorts, in ﬁscal 2022 weachieved carbon neutrality for the tenth consecutive year (sinceﬁscal 2013) thanks to the absorption and ﬁxation eﬀects ofmangrove planting and the use of carbon credits outperforming theCO2 emissions generated by the Groupʼs overall business activities.

2
Strategy and Business Platform Supporting Our Purpose Story

to properly assess current weather phenomena. Furthermore,
within material risks, we conduct stress tests based on scenarios
in which extreme economic losses are expected and scenarios
where multiple material risks occur at the same time. As for risks
involving major wind and flood disasters, for example, we assume
these scenarios to be on a much larger scale than the major
typhoons that hit the Greater Tokyo Area in 2018 and 2019causing extensive damages. We update scenarios continuously
while taking into account stress tests released by regulatory
authorities of every country, the latest knowledge (including thatof climate change), and recent case studies.

Appropriately Control Risk through Risk Diversiﬁcation and Reinsurance, etc.
Natural disasters are inevitable in Japan, our home market. For
that reason, we have sought to control risk capital by geographic,
business, and product risk diversiﬁcation through M&A overseas.
In addition, reinsurance, as a hedge against risk, is also aneﬀective way to protect our capital and stabilize proﬁts. The●Reduction of GHG emissions
Aiming to reduce GHG (CO2) emissions from Tokio Marine Group to net zero by ﬁscal 2050 for our own operations (including
insurance customers and investment and ﬁnancing recipients)*1,2

Metrics and Targets for Fiscal 2023 (Increase or Improvement vs. Fiscal 2020)(2) Quantitative Risk Management
For material risks, through measuring risk amounts andimplementing stress tests, we are able to perform a multifaceted
review of the adequacy of capital relative to the risks held for the
purpose of maintaining ratings and preventing bankruptcy. We
calculate risk amounts posed by natural disasters using a risk
model (for Japan, a risk model we developed in-house based onengineering theory and the latest knowledge of natural disasters,
and for overseas, models provided by outside vendors). We
independently analyze past tropical cyclones (typhoons in Japanand hurricanes in the United States), torrential rains, and otherchanging trends and incorporate this data as necessary in order

Metrics and Targets for Fiscal 2050

Metrics and Targets for Fiscal 2030

(1) Qualitative Risk Management
We identify all forms of risks comprehensively, including those fornatural disasters such as major storms, and emerging risks due toenvironmental changes. Of these risks, we define risks that will
have an extremely large impact on our financial soundness andbusiness continuity as “material risks.” We include the risk ofmajor wind and flooding disasters (including climate change

While Tokio Marine withdrew from the international initiative, the Net-Zero Insurance Alliance (NZIA), in May 2023, our commitment tocontributing to the transition towards a decarbonized society based on the Paris Agreement remains unchanged.

GHG Emissions for Investment Portfolio
To assess the climate change‒related risks and opportunities of
its investee companies and financing recipients, TMNF has
performed analysis of total GHG emissions and weighted averagecarbon intensity (WACI) on its domestic listed equity and bondportfolios as of March 31, 2022, the disclosure of which isrecommended by the TCFD (see p. 26 of the TCFD Report). We
will continue to urge our investee companies to fully disclose
climate change‒related information and work toward adecarbonized society through engagement, while also making useof this analysis.

*5: Associated with our own business activities (Scope 1 [direct emissions] + Scope 2 [indirect emissions] + Scope 3 [other indirect emissions; Categories 1, 3, 5, and 6] based on the
GHG Protocol standards)*6: Amount of paper used, etc. (Categories 1, 3, 5, and 6)

084

085

2

Strategy and Business Platform Supporting Our Purpose Story | Strengthening Human and Intellectual Capital | Human Capital Management (Human Resources Strategy): CHRO Message

Tokio Marine Group regards
people as the driving force ofgrowth and as our most valuableasset, and we are committed topursuing sustainable growth byactively embracing human capitalmanagement.

▶The Human Capital Report Released in June 2023

Kenichi Kitazawa
Senior Managing Executive Oﬃcer
Group Chief Human Resources Oﬃcer (CHRO)
Group Chief Wellness Oﬃcer (CWO)

People, the Driving Force of Growth and Our Greatest Asset

Human Resources Strategy Aimed at Facilitating
Business Strategy
Our human resources strategy is designed to enhance theprobability of realizing the goals of our business strategy
and propel Group growth. Of particular importance are
the building of a talent portfolio aligned with businessconcepts and the establishment of an organizational
environment where the potential of such talent can be fully
realized. As a result, our human resources strategy is built
upon “People” and “Corporate culture,” working in harmony
to create synergies that uphold and further enhance ourdistinctive capability of “Integrated Group Management.”
By constructing a strategically aligned talent portfolio andfostering high engagement among individuals, we aim toachieve growth in each business. Strengthening ourGroup management structure enhances management
decision-making, enabling more eﬀective execution of“In/Out” strategies. The foundation of this lies in nurturing
an organizational culture and Group unity to further drive
the growth of each business and elevate the quality of086

decision-making. This virtuous cycle embodies our vision
for human capital management and serves as a force for
improving our ROE to match global peers.
People Supporting Integrated Group Management
For human resources, we identify the capabilities required
to execute and realize our business strategy. We thenevaluate the disparities between these capabilities andreality, taking steps to bridge these gaps. Looking
ahead, we have identiﬁed areas to strengthen: “Groupmanagement talent," “highly specialized professionals,"and “globally adept individuals.” Our focus is on recruiting
and nurturing talent in these areas. For instance, toconsistently produce global management talent to steer
the future of integrated Group management, we actively
advance talent management across the Group, drawing
from the human resource system introduced to Tokio
Marine Holdings in 2019. We routinely hold discussions
concerning diverse global talent, and in April, weestablished the unique development program, Tokio
Marine Leadership Institute (TLI), to nurture future Groupmanagement leaders as we look to expand training beyond
borders. Fostering unity through such programs fuelssynergies across the Group.
Consistent with eﬀorts to strengthen expertise throughout
the Group, which we recognize is the wellspring of new
added value, we take care in ensuring that the right humanresources brought into the Group through M&As and othermeans are assigned to the right place on a global basis.
In addition, Chief Oﬃcers work closely together to hirehighly specialized personnel in the ﬁeld of corporate
functions and to develop data scientists internally.

side jobs for cross-departmental project participation basedon interest, and external side jobs that allow employees tobring the growth gained from new networks and experiences,which might not be accessible within the Company, back totheir work tasks. The aim is to bolster employee growth byenhancing satisfaction and optimizing time.
Within this context, we conduct employee perception
surveys to regularly gauge employee and organizational
status, following a PDCA cycle to identify challenges
and enact solutions. We prioritize employee satisfaction,
motivation, and organizational culture. These factors are
set as Key Performance Indicators (KPIs) in the executive
compensation evaluations. Management leads eﬀorts toboost employee engagement and nurture an organizational
culture, actively driving these initiatives forward.
Achieving Sustainable Growth through the Synergy ofPeople and Corporate Culture
The concepts of “People” and “Corporate culture” I havediscussed are closely intertwined. Our corporate culture, built
on Group unity and increased engagement, helps attract
and retain valuable talent. Meanwhile, appropriate humanresource recruitment, development, and placement generates
both personal and corporate growth, further enriching Group
unity and employee engagement. Through ongoing eﬀorts, wewill sustain this synergy and virtuous cycle to foster lasting
growth. Irrespective of how much global conditions and thebusiness environment change, the fact remains that people
are the cornerstone of our competitiveness. We will continue
to invest in our human resources, practicing human capitalmanagement to ensure we support customers in times ofneed for the next century.

2
Strategy and Business Platform Supporting Our Purpose Story

Human Resources Empowering Our Competitive Edge
As CHRO, my role is to maximize the potential of thepeople who drive our business strategy, creating anenvironment where over 40,000 global employees cancontinuously enhance their abilities and perform at theirbest. The insurance business, being a “Peopleʼs Business,”thrives on the trust forged by individuals, and I ﬁrmly
believe that maximizing this strength is key to realizing
our Purpose. Since our establishment in 1879, we havepositioned human capital as the driving force for growthand our most valuable asset, wholeheartedly embracing
human capital management. In June 2023, we released
the Human Capital Report to share our vision and concrete
initiatives. Here, I will provide an overview of its essence.

Corporate Culture Supporting Integrated Group Management
Central to all human capital management endeavors iseach employeeʼs alignment with the Groupʼs Purpose.
Our Purpose acts as a guiding light for the entire Group,
providing a sense of direction. To unite our diverse
workforce of over 40,000 individuals worldwide andunleash their full potential, the CEO spearheads initiatives
as Chief Culture Oﬃcer (CCO), driven by a strong belief in
embedding these principles.
Moreover, a “culture of growth” has taken root whereineach individual actively pursues self-improvement andpositively inﬂuences others. This culture has thrived due toour history and continued eﬀorts in addressing social
challenges since our inception. It stands as our uniqueadvantage, fostered by the ongoing sharing of these values
among our employees. Through initiatives that embed our
Purpose, we share the role we have played in addressing
social issues and the genuine aspirations of ouremployees, making the Purpose a personal commitment.
Employees who internalize the Purpose then experience asense of societal trust through their work and derive themotivation to contribute to future problem-solving. This
cycle, we believe, also contributes to enhancing overall
organizational engagement.
However, in todayʼs rapidly changing business landscapewith increasingly complex societal issues, it is vital toleverage the knowledge and experiences of our diverse
employees in management. We have positioned thepromotion of Diversity and Inclusion (D&I) as part of our
growth strategy and are taking related steps. To caterto varied work preferences, we have introduced newwork styles, including remote work to overcome location
restrictions, ﬂexible hours for individual scheduling, internal

Tokio Marine Group ̶ Our People (Our Philosophy on Human Resources)
●
●

●

●

Our people are the most valuable asset of our Group and a key driver of our Good Company vision.
We aim to attract and retain the best talent in every aspect of our business to ensure we deliver safety and security to our customers
and their communities.
Our people bring passion and a challenging spirit to their endeavors, and we provide them opportunities for career development andongoing personal growth.
Our people embody diversity, and we value inclusion as a truly global company. We work hard to create a business environment
where we can achieve our full potential as we continue our endless journey to be a Good Company.

087

2 Strategy and Business Platform Supporting Our Purpose Story | Strengthening Human and Intellectual Capital | Human Capital Management (Human Resources Strategy)

Overview of Human Capital Management(Human Resources Strategy)
Outline of Human Resources Strategy for Enhancing Corporate Value
Our human resources strategy consists of two pillars: “People supporting integrated Group management” and “Corporate
culture supporting integrated Group management.” This is based on the belief that building a talent portfolio aligned withbusiness concepts and establishing an organizational environment where the potential of such talent can be fully realized areboth essential elements of our human resources strategy to achieve our business strategy.

Realization of Vision Aimed for in the Group Business Strategy
Break down the two elements of People
and Corporate culture into areas of focus,
and plan and implement concrete human resource
measures

Human resources strategy

All human resources measurescontribute to the realization of the vision
aimed for in the Group Business Strategy▶People Supporting Integrated Group Management
We are working to strengthen integrated Group management, including succession planning, by securing anddeveloping diverse human resources, including mid-career hires, and ensuring appropriate placements, to build ahuman resource portfolio that increases the likelihood of realizing our business strategy.

Build a strategically consistent talent portfolio●

Human
resource
development
andassignment●●

Develop human resources withspecialized expertise (through MAP,
DX-focused human resource
development, etc.)
Provide opportunities for upskillingand development (various training
programs, self-learning tools, etc.)
Oﬀer career challenge opportunities(JOB request system, project
request system, etc.)

Recruit new graduates in speciﬁc
SPEC ﬁelds*● Recruit mid-career hires withspecialized skills●

People supporting
integrated Group management

Elements

Areas offocus

Strengthen Groupmanagement systems

Building a strategicallyconsistent talent portfolio

Human resource
development
and assignment

Recruitment

Corporate culture supporting
integrated Group management

Management
systems

Succession
planning

Promotionof D&IManagement
systems●●

Succession
planning●

Appoint executives gained from
M&A to oversight positionsin the Group
Leverage expertise and insights
through global committees
Develop future leaders(Tokio Marine Group
Leadership Institute)
Strategic development of CxO
and similar roles (talentmanagement meetings, etc.)2

Foster a sense ofGroup unity

Embeddingour Purpose●

Enhance engagement
For details of each initiative mentioned, see our Human Capital Report 2023.
https://www.tokiomarinehd.com/en/ir/download/2023.html (Japanese only)Jobsatisfaction

Flexible work
environment▶Corporate Culture Supporting Integrated Group Management

Synergy between People and Corporate Culture in Our Human Resources Strategy

Build astrategicallyconsistent talent
portfolio

PeopleStrengthenGroupmanagement
systems

088

Appropriate talent acquisition,
development, and assignments
lead to the growth of boththe individual and the Company
while enhancing Group unityand engagement.

Heightenthe certainty ofrealizing our vision
for the Group s
management
strategy

A corporate culture cultivatedthrough enhanced Group unityand engagement provides astrong foundation for attracting
and retaining talented individuals.

Fostera sense ofGroup unity

We are striving to integrate our Purpose, leveraging the skills and experiences of diverse talents tostrengthen the collective capacity of the organization, and cultivate an inclusive organizational culture, allwhile enhancing employee engagement.

Foster a sense of Group unity

Embeddingour Purpose

Conduct a CEO world tour●

Messages by top management●

Hold “Majikirakai” meetings worldwide●

Corporate
culture●Promotionof D&I

Enhanceengagement●

see p. 92●●

Enhance engagement●Jobsatisfaction●

Implement PDCA using the Culture& Values Survey
Establish Group Chief Diversity &Inclusion Oﬃcer (CDIO)/
Diversity Council
Focus on the Four Free
(gender, age, borders, work style)
Conduct Project Mizu

Strategy and Business Platform Supporting Our Purpose Story

Domains

Recruitment

Strengthen Group management systems●

Flexiblework
environment

Initiate organization-level
PDCA practices based on
engagement surveys
Establish dedicated teams for
improving engagement (TMNF)

Promote initiatives related to healthand productivity management●

Introduce ﬂexible work rules●

Enhance various infrastructures*: Actuarial science, financial engineering, asset management, etc.

089

2 Strategy and Business Platform Supporting Our Purpose Story | Strengthening Human and Intellectual Capital | Human Capital Management (Human Resources Strategy)
Governance Structure for Eﬀective Human Capital Management(Human Resources Strategy)

Key Reference Indicators for Human Capital Management(Human Resources Strategy)

Initiatives related to human capital are reported and discussed
regularly with the Sustainability Committee, enabling a diverse
range of perspectives to be considered. The Board of Directors
oversees the execution of these initiatives.
As part of governance across the Group, we established theWe will set speciﬁc indicators for each of the eight main themes (areas of focus) in our human resources strategy and assess the progressto ensure the continuous improvement and enhancement of our initiatives.

Basic Policies for Internal Controls as well as a basic policy forhuman resource matters. Tokyo Marine Holdingsʼ Human
Resources Department oversees the human resources
departments and initiatives of each Group company inaccordance with these policies.

The Board of Directors receives regular reports fromthe Sustainability Committee, engages in discussions,and oversees the execution of duties.

Board of Directors
The Board of Directors oversees
the execution of duties.

Tokio Marine
Holdings

Management Meeting

Human Resources
Department

Application andreporting

Sustainability Committee
The Human Resources
Department reports and makes
submissions to the Management
Meeting and Board of Directors asneeded, and reports human capitalmanagement matters to the
Sustainability Committee as partof sustainability-related matters.

Oversight andsupport

Tokio Marine Holdings establishes fundamental principles and organizational frameworks regarding
human resources. It also sets criteria for approval and reporting, including significant changes in humanresources systems within Group companies, and governs the initiatives of these Group companies.

To establish and strengthen a management framework committed
to human capital management, particularly the enhancement of
employee engagement, we added employee engagement
indicators to help determine executive compensation in ﬁscal
2022.

Employee engagement indicators
Indicators relating tosustainability strategy

Corporate
culturesupporting
integratedGroupmanagement

Building
a strategicallyconsistenttalent portfolio

StrengthenGroupmanagement
systems

Fostera sense ofGroup unity

Enhanceengagement

Areas of focus Executive

Desired outcome

Direction of response

Reference indicator

Human resource
development andassignment

CHRO

Promote individual initiatives forautonomous career development

Promote options for development andopportunities for career advancement

Status of training in
the digital domain‑

Recruitment

CHRO

Secure talent in areas of focus throughnew graduate and mid-carrer recruitment

Clarify requirements and diversify
recruitment channels

Number of new graduate hires
in specific areas of focus①

Management
systems

CHRO

Realize management systems
for achieving Group synergy

Ensure diversity among Groupmanagement members

Percentage of female directors
and Audit & Supervisory
Board members②

Succession
planning

CHRO

Build a talent pool to sustain
a diverse management teamDevelop career and training plans tofulfill CxO requirements

Implementation status of
next-generation leadershipdevelopment programs‑

Embeddingour Purpose

CCO

Further penetrate our Purpose
throughout the Group

Continue dialogue between theexecutive team, including CCO,
and frontline personnel

Results of Culture &Values Survey③

Promotionof D&I

CDIO

Utilize the right people in the rightpositions regardless of age,gender, or nationality

Promote diverse talent to key positions
Deepen support for childcare

Percentage of female managers
Total fertility rate for the period④

Jobsatisfaction

CHRO

Maintain and enhancehigh engagement levels

Establish the Engagement
Design TeamEngagement score⑤

Flexible work
environment

CHRO
CWO

Provide a workplace environment that
accommodates new ways of working

Diversify options for work styles

Organization s
vibrancy level⑥

Human Resources Department

Introduction of Non-Financial indicators for Executive Compensation

Indicator items

Peoplesupporting
integratedGroupmanagement

DomainsMoreover, to strengthen the correlation between executive
compensation and employee engagement, we raised the
proportion of employee engagement indicators from 5% in ﬁscal
2022 to 10% in ﬁscal 2023.

Assessment items

Performance of Reference Indicators (FY2020‒FY2022)
We have made steady progress in general in the key reference indicators (① to ⑥) over the past three years, as follows.
Among these, particularly in the case of diversity-related indicators (② and ④), we are accelerating our eﬀorts, including strengthening the pipeline.
No

Reference Indicators

Unit

FY2020

FY2021

FY2022

Progress Assessment(Targets)①

Number of new graduate hires
in specific areas of focus*1

People

12

16

11

〇
(Ongoing implementation)②

Percentage of female directors
and Audit & Supervisory Board members

％

11.1

15.8

15.8

Increase to 30%
by FY2027③

Results of Culture & Values Survey

ー

4.3

4.3

4.4

〇
(Maintain/enhance)

Percentage of female managers*2

％

8.8

9.5

10.4

Increase to 30%
by FY2030

Total fertility rate for the period*3ー

1.56(1.33)

1.55(1.30)

1.62(1.26)〇(Maintain/enhance)⑤

Engagement score*4

ー

61.1

62.1

61.4

〇
(Maintain/enhance)⑥

Organization s vibrancy level*5

ー

2.97

2.97

Scheduled for disclosurein September 2023〇
(Maintain/enhance)

Status of the Culture & Values Survey score improvements
Progress of efforts to address the four main issues targetedby the sustainability strategies④

2Strategy and Business Platform Supporting Our Purpose StoryGroup
companies

Human
capital‒related
agendaThe committee is composed of the Group CEO,relevant executives, and overseas management,
operating on a global basis to deliberate on
sustainability issues. The Chief Sustainability Officer(CSUO) reports to the Board of Directors and leads
discussions during Management Meetings.

Elements*1: The number of hires for comprehensive positions (actuarial and financial engineering, asset management, IT strategy, innovation, Global Business) in specific departments at TMNF,
with an expectation of high expertise*2: Indicates TMNF figures; refers to “Management and above” including director, Audit & Supervisory Board member, and executive officer*3: Total birth rate for female employees at TMNF aged 15‒49 years old during the period (January to December). Figures in parentheses represent Japanʼs total fertility rate for thesame period.
*4: Measured from Link and Motivation Inc.ʼs Motivation Cloud.
*5: Measured using a scale for sense of unity from the new Brief Job Stress Questionnaire (highest rating of 4.0)

090

091

2 Strategy and Business Platform Supporting Our Purpose Story | Strengthening Human and Intellectual Capital | Human Capital Management (Human Resources Strategy)SpecialFeaturePromotion of D&I

Closing the Gender Gap

One of the primary focuses within our human resources strategy is the promotion ofdiversity and inclusion (D&I). We consider this to be a key success factor for achieving
continued growth in an unpredictable business landscape, and under the guidance of
the CCO and CDIO, we are executing a diverse array of initiatives to this end.

▶Quantitative Targets

Promotion of D&I as a Key Success Factor for Growth
Through the promotion of D&I and the enhancement of workforce diversity, we strive to achieve the evolution and strengthening of factors
crucial for our future growth, including “competitive advantage,” “productivity,” “collective Group strength,” and “talent acquisition.”

SecureCompetitive Advantage
Provide optimal solutions to customersʼ
issues around the world by leveraging
our diversity

Satoru Komiya

Create a work environmentthat allows all employees,
including those belonging
to minorities, to fully
demonstrate their abilities
and minimize opportunity
lossesDemonstrate
the Group s
Integrated Strength
Make effective use of theexcellent human resources
within the Group to further
realize synergies on a
global basis

D&I

Group Deputy CDIO

Group Chief Diversity &Inclusion Officer (CDIO)

Mika Nabeshima
Secure Top Talent

Protect customers and society in their times of need

Tokio Marine Groupʼs Purpose

D&I Promotion Structure (Diversity Council)
The Diversity Council, a global committee led by the Group CEO,was established in April 2021. It includes outside directors
representing external stakeholders and a diverse group of
employees from various backgrounds, regardless of gender,
nationality, age, or career level who engage in discussions on
D&I from various perspectives.

Female directors andAudit & Supervisory Board members*1

20.0%

Increase to 30% by FY2027

Female managers*2

11.2%

Raise the ratio of female managers or higher position
at TMNF to 30% by FY2030

Female associate leaders*3

58.9%

Maintain above 50%

2

Fostering an Inclusive Culture“Project Mizu” was launched in ﬁscal 2020 at Tokio Marine Holdings with the goal of creating an inclusive culture where diverse talents
can fully contribute. This initiative aims to enhance mutual understanding among Group companies and continue eﬀorts to establish anenvironment where diverse team members can collaborate eﬀectively, serving as a foundation for the evolution of integrated Groupmanagement.

▶Project Mizu
2020
Identiﬁcation of key issues
through information gatheringfrom employees worldwide

2022
Development of collaboration standards for
global communication, and implementationof onboarding support for career recruits

2021
Documentation of organizational
structure and roles in both
Japanese and English

Origin of the Project Name

CultureOrganization

Roles

Employee experience

Foster an open and inclusive
workplace culture aligned with
our Purpose

Provide roles that are clear,challenging, and offer eachindividual a sense of growth

Toward a united
Group culture2023
Completion and eﬀective utilizationof a job library detailing the required
qualities and experiences for key
positions in each department

Key Project Themes

Snapshot of the second session of the Diversity Council in February 2022

092

Target*1: Female directors and Audit & Supervisory Board members: Tokio Marine Holdings*2: Female managers: Managers at TMNF, 49.0% for major overseas consolidated subsidiaries (2022)*3: Female associate leaders: Assistant managers and above at TMNF

Create an inclusive work environment where
diverse human resources can flourish andwin the fierce competition for talented
peopleCaryn Angelson

2023

Strategy and Business Platform Supporting Our Purpose Story

Group CEOGroup Chief Culture
Officer (CCO)

Improve
Productivity

At Tokio Marine Group, women are already thriving in various roles and opportunities, with the female manager ratio exceeding 30% on a
global Group level. However, we recognize the need for further improvements, particularly in Japan. Currently, we have set qualitative andquantitative goals and are actively pursuing initiatives. Our focus lies on strengthening the pipeline to expand the pool of candidates forleadership positions by enhancing training programs that foster mindset shifts among both genders and reﬁning structural aspects, primarily
through our human resource system.

Create an energetic organizationthat continues to grow globally

Build enhanced relationships
through collaboration among
employees

Inspired by the proverb fish cannot see thewater they swim in, which suggests that
we often overlook the things familiar to us,
we aspire to cultivate an inclusive Tokyo
Marine Holdings. Our aim is to preserve thepositive aspects of our current culture while
creating an environment where diverse
individuals̶akin to both saltwater andfreshwater fish in the proverb̶can coexist
harmoniously.

093

2 Strategy and Business Platform Supporting Our Purpose Story | Strengthening Non-Financial Capital | Intellectual Capital Strategy, CDO Message

We aim to leverage intellectual
capital in the form of the Group sdata and digital technology as asource of competitive advantage
to evolve into a company thatalways supports its customers
and transforms internal businessprocesses.

Foundation Underpinning Our Intellectual Capital Strategy(1) Global Synergies (Development of Global Labs)
In addition, we are dedicated to strengthening collaboration both
domestically and internationally in the digital realm. We are
actively engaged in fostering digital synergy globally. Through our
network of seven Global Labs and the Digital Roundtable thatbrings together overseas Group companies, we are facilitating
the sharing of diverse knowledge and expertise from around theworld. This is accelerating digital transformation (DX) across theGroup.

▶Global Synergies (Development of Global Labs)

Masashi Namatame

Tokyo
●

London094●●

Silicon Valley
Exploring the world s most advanced
technologies and building networks
Supporting innovation in North
American Group companies● Nurturing digital talent

Global oversight of the cyber fieldResearching and identifying
start-ups in Europe●●

Singapore
Researching and identifying
start-ups and new business models
in Asia● Supporting innovation in AsianGroup companies●

Researching and identifying start-ups and new
business models in North America (East Coast)● Supporting innovation in North American
Group companies●

Sao Paulo

TaipeiCenter of digital development for
subsidiaries in Taiwan● Researching and identifying new
business models●

Center of digital technology andinnovation for subsidiaries in Brazil● Researching and identifying new
business models●▶Investment in and Cultivation of DX Talent
Development of the Data Science Hill Climb program for training data scientists internallyand advancing the in-house development of AI through its graduates
In-house development of AI
for analyzing and proposing phone call content

Data Science Hill Climb
Conducting comprehensive training supervised by Professor
Yutaka Matsuo of The University of Tokyo, totaling over 260
hours● A program aimed at nurturing skilled data scientists● Collaborating with three companies experienced in educating
data science personnel: NABLAS Inc., ALBERT Inc., andSKILLUP AI, Ltd.
●

External Evaluation (DX Stock 2023)
Tokio Marine was again selected as a Digital Transformation Stock(DX Stock) in 2023 following on from our selection in ﬁscal 2022,
marking the ﬁrst time in the insurance industry to receive the honor
two years in a row. This is in recognition of ongoing eﬀorts in thedigital domain and is a strong endorsement that empowers us tofurther accelerate our digital strategy.
Moving forward, we will maximize our intellectual property andfurther collaborate with external partners in order to boldly takeon challenges focused on expanding our presence in the “preand post-incident” ﬁeld.

2
Strategy and Business Platform Supporting Our Purpose Story

Evolve into a Company That Always Supports Its Customers,
Creating New Proﬁt Streams
To continue fulﬁlling our Purpose of protecting customers andsociety in their times of need, we aim to go beyond mere
insurance payouts during emergencies to cover both preventive
and responsive measures and expand the domains we provide
value in. This includes preventing accidents, alleviating burdens
in case of incidents, facilitating swift recovery, and preventing
recurrences. We are intensifying eﬀorts in disaster prevention andmitigation, focusing on both pre- and post-disaster domains by
sharing expertise to drive novel business ventures through the
CORE, disaster prevention consortium (see pp. 37, 96), together
with over 100 partners. Several ventures have already progressedto the commercialization phase, and in the coming decade, we
intend to nurture these into substantial proﬁt streams of several
billion yen, alongside our existing businesses.

Reform of Internal Business Processes
Over the course of approximately two decades, we havediligently pursued enhanced operational eﬃciency by undertaking
substantial process reforms. In line with this, the ongoing Mirai
Project at TMNF is seen as an extension of these eﬀorts,
aimed at digitally streamlining the operational workﬂows of our
insurance business. Within the framework of the Mirai Project,
improvements in contract procedures and the automation of
insurance claims processes are anticipated to yield a reductionin administrative burden by approximately 15%, from the end ofﬁscal 2019 (equivalent to a proﬁt contribution of 20-25 billion
yen annually) by ﬁscal 2023. As of the end of ﬁscal 2022, thiseﬀect had reached 9%.
In addition, we are actively exploring the application ofgenerative AI, which has gained signiﬁcant attention acrossdiverse ﬁelds. Generative AI demonstrates competence inunderstanding text and generating responses, presenting
opportunities for enhancing operational productivity and elevating
customer service standards within the insurance industry.
Nevertheless, the insurance industry, characterized by intricate
dialogues laden with specialized terminology, poses speciﬁchurdles for the practical integration of generative AI. Additionally,
harnessing this technology necessitates the mitigation of various
risks, encompassing concerns related to data leaks and potential
copyright violations.
To tackle these obstacles, we have partnered with PKSHATechnology Inc. and Microsoft Japan Co., Ltd., to create
safeguards against external data leaks and secondary usage of
input information. Leveraging our extensive repository of manuals
and insurance policy terms, we are in the process of crafting a
dedicated interactive AI tailored to the insurance domain.
By conducting a trial operation of this interactive AI, initiatedin June 2023, our objective is to continue gathering insights andaddress any remaining risks. Our aim is to roll out this feature
for widespread employee usage by the end of ﬁscal 2024. In
addition, we will explore and pursue new use cases thatmaximize the potential of generative AI, aiming to enhance
operational productivity and customer service excellence.
Our commitment lies in driving additional growth by channelingthe time generated from these endeavors into creating novel proﬁtopportunities.

New York

Oversight of Global Labs
● Investigating trends in cutting-edge
technology and new businessmodels in Japan● Implementing strategic investments

Managing Executive Oﬃcer
Group Chief Digital Oﬃcer (CDO)

Amid an era of profound change and escalating global
uncertainties, we are broadening our scope to deliver enhanced
value and bolster support to both customers and society.
As CDO, my objective is to harness our intellectual assets,encompassing the Groupʼs exclusive data and digital technology,
as a source of competitive advantage. In addition to the drive
towards global digital synergies, I aim for evolving into a company
that always supports its customers and streamlining internalbusiness processes.
Over the course of many years, we have amassed, analyzed,
and eﬀectively utilized extensive volumes of data through ourunderwriting and claims services. Leveraging this intellectual
capital, Tokyo Marine dR Co., Ltd. (TdR), plays a pivotal role as
our data-centric subsidiary (see p. 41), enabling us to unlock its
full potential. Its endeavors encompass novel domains such asadvanced data-driven underwriting, data solutions, and embedded
insurance. Moreover, the reach of data goes beyond our internal
resources; strategic partnerships with external entities can extend
data and distribution models, leading to innovative value
generation. By continually honing our intellectual capital andfostering collaboration as part of our social capital, we strive tobroaden the horizons of our value proposition.

(2) Investment in and Development of DX Personnel
In order to expedite these eﬀorts, investing in and nurturing talent withstrong DX skills is crucial. We have brought on board approximately
100 dedicated digital experts, encompassing engineers anddesigners. Graduates from our internal DX talent development
program, known as Data Science Hill Climb, are equipped to lead
digitalization eﬀorts as proﬁcient data scientists. Additionally, our
Project Request System (see p. 89) enables enthusiastic employees
nationwide to contribute to projects across corporate departments at
the head oﬃce. Through these initiatives, we are fostering a unitedorganization-wide approach to propel our DX strategy.

Development by graduates of Data Science Hill Climb
AI utilizing voice mining technology to analyze call content for
accident response operations● Significantly improves the quality of accident response tasks andgreatly reduces record entry time●●

Our efforts to reduce accidents using digital technology
and to develop embedded insurance were recognizedwith selection as a DX Stock 2023.

095

2 Strategy and Business Platform Supporting Our Purpose Story | Strengthening Non-Financial Capital | Intellectual Capital Strategy
Evolve into a Company That Always Supports Its Customers

Reform of Internal Business Processes▶Disaster Prevention Consortium CORE: Working Group Initiatives▶Domestic Initiatives

Working group s subject

Purpose / content of initiative (examples)

Extraction of infrastructure maintenance and management risks through theutilization of remote sensing

1

Disaster forecast to support an evacuation

3

Real time hazard maps

4

Speeding up damage surveys and rehabilitation / reconstruction by leveraging
digital technology

5

All hazards risk assessment and its utilization for town development / disasterprevention measures

6

Research on a new disaster prevention information system and considerationof disaster prevention business by applying the system

7

Preventing disaster and maintaining functions at disaster base hospitals, etc. byutilizing timeline during a ﬂood disaster8

Considering a BCP for drug supply during a disaster from a regional perspective

9Comprehensive resilience support services for buildings and the use of buildings

10

Information provision services for the maintenance of logistics functions andcorporate business continuity during a water-related disaster

Efficient contract procedures[Working Group 4]● Reduce the time to rebuilding livelihoods and victimsʼ
burden by making most of digital technology● Focus on disaster prevention DX, such as “Increasing
eﬃciency / saving manpower of damage surveys using
sensors, satellite, etc.” and “Simpliﬁcation of various
application/review through public-private information
collaboration / PUSH type services”[Working Group 6]● Research and development of livelihood rebuilding support
services for evacuees at home during a disaster● Study a new disaster prevention information system, whichlinks customers to service companies, and aim to achieve“a private sector partnership disaster prevention,” which
complements public disaster prevention[Working Group 7]● Establish a method for devising an evidence-based,eﬀective timeline disaster prevention plan, which is helpful
in maintaining medical functions during a disaster● Share information among various organizations engaged indisaster medical care, and aim to build mechanisms anddigital foundations that enable smoother collaboration

Have 80% use the online bank transfer system that started
in 2021● Introduce Smart Share Box for digital uploading and cloudstorage of contract documents (since October 2022)● Introduce electronic signatures for corporate contracts (since
October 2022)●

Launch of Tokio Marine X
Establish a digital small-amount short-term insurance company
focusing on embedded insurance
Form alliances with a broad range of business partners and provide abundled white label type, fully digitalized insurance, system, andmarketing method

Launch the first fully
digitalized productthrough collaboration
with Lawson (since
March 2023)●

Roll out a fully automated system (STP) to all branches
covering from initial procedures to insurance payouts online(since August 2022)● Detect misconduct using AI and improve digital tool
functionality (since August 2022)● Start trial of AI chatbot aiming for impact during the next
MTP (June 2023〜)●▶Overseas Initiatives
Top-line initiatives (growth and increased efficiency for underwriting)
Asia

BrazilInitiative

Initiative●

Alliance with InsurTech company bolttech,etc.

●

Develop and provide Super APP thatlinks with systems provided by otherindustries

ImpactImpactAcquire expertise and technology in theembedded insurance area, which hassignificant room for growth▶ Expand sales through collaboration withplatformers that have a customer sales
network▶

▶

▶Examples of Partner Platform Utilization and Integration into Products

Automate insurance payout process

Jointly with Lawson, provide
motorcycle theft insurance, a fully
digitalized insurance designed for
motorcycle users

Enhance the customer base by offeringvarious value-added services including
app-based contract procedures,
management, customer services, andspecial offers for using services provided
by other industries

United Kingdom/United States

Initiative●

Introduce a system that automaticallyreads necessary information from paper
and PDF format broker documents for amore efficient underwriting process

Impact▶
▶

Reduce costs for underwriting department
Reduce errors from manual operation andpromote appropriate underwriting

Bottom-line initiatives (improve loss ratio/reduce administration costs)

2
Strategy and Business Platform Supporting Our Purpose Story

2

Rigorously reduce internal administration work through the thorough use of digital technology

United States

Initiative (1)Collaboration with bolttech Holdings Limited
Utilize a fully digitalized innovative platform for buying insurance
Leverage the bolttech digital platform enabling quick and flexible
customization to build a new fully digitalized process for buying
insurance●

Deploy embedded
insurance using thebolttech platform(since March 2023)●

Utilize the bolttech platform that has
been applied in 30 countries globallyand has already produced successful
results in Asia to accelerate deployment

Impact▶

Collaboration with Finatext Ltd.
Leverage a SaaS-type core insurance system
Use Inspire, a SaaS-type system infrastructure provided by Finatext
to build a new fully digitalized process for buying insurance

096

Provide Embedded
Insurance to GA
Technologies Co., Ltd. s
real estate platform(since May 2023)●

Distribute various sensors free of charge
to utilize IoT and telematics technology,
etc.

Improve the loss ratio by preventing
accidents and reducing losses

Initiative (2)●Use AI in disability insurance to automate
claim adjustments

Initiative (3)●Accelerate reduction in administration by
combining automation technologies,
including robotic process automation(RPA), with outsourcing

ImpactImpactReduce costs for the claims department▶ Improve the loss ratio by applying
resources created to support an early
return to work for the insured

▶

▶

▶

Reduce costs for the entire company
Utilize resources created to expand sales

Provide fire insurance embedded in realestate on RENOSY, an online
marketplace for investment property097

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Directors and Audit & Supervisory Board Members
Directors and Audit & Supervisory Board Members

2
Strategy and Business Platform Supporting Our Purpose Story

Directors
01 Chairman of the Board

Tsuyoshi Nagano

Audit & Supervisory Board Members
04 Senior Managing Director

Yoichi Moriwaki

07 Managing Director

Kiyoshi Wada

10 Outside Director

Nobuhiro Endo

13 Outside Director

Kosei Shindo

16 Audit & Supervisory Board Member(Full-Time)

Hirokazu Fujita

19 Outside Audit & Supervisory
Board Member

16

Nana Otsuki
18

02 Representative Director andPresident & Group CEO

Satoru Komiya
03 Representative Director andSenior Managing Director

Kenji Okada
098

05 Representative Director andSenior Managing Director

Kichiichiro Yamamoto
06 Managing Director

Yoshinori Ishii

08 Director

Shinichi Hirose
09 Outside Director

Takashi Mitachi

11 Outside Director

Shinya Katanozaka
12 Outside Director

Emi Osono

14 Outside Director

Robert Alan Feldman
15 Outside Director

Haruka Matsuyama

17 Audit & Supervisory Board Member(Full-Time)

Takayuki Yuasa

07

09

04

15

08

19

13

01

03

14
02

12

06

05
20

10

17
11

20 Outside Audit & Supervisory
Board Member

Junko Shimizu

18 Outside Audit & Supervisory
Board Member

Akihiro Wani099

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance Dialogue

Board of Directors Contribution to Key Issues andChallenges for Further Enhancement of Corporate Value

Corporate Governance Dialogue
with the Chairman of the Board, Chairman of the Nomination
Committee, and Chairman of the Compensation Committee

2

Shinya Katanozaka

Nobuhiro Endo

Chairman of the Board

Outside Director
Chairman of the Nomination Committee

Outside Director
Chairman of the Compensation Committee

The three directors who support the corporate governance of the Tokio Marine Group gathered together to give theiropinions on the Board of Directors contribution to recent key issues and challenges for further enhancement ofcorporate value.

Board of Directorsʼ Contribution to Key Issues
The COVID-19 losses in Taiwan were a key issue in ﬁscal 2022.
What was the discussion in the Board of Directors?
Secretariat: The COVID-19 losses at the Tokio Marine
Taiwanese joint venture announced in August 2022 came as a
100

major surprise. Initially, there were critical voices from the capital
markets, asking if it was really necessary to respond to thecapital increase and if there would be similar problems at othersmall, medium, and minor entities. In this context, the capital
markets show a strong interest in the content of discussions by

the Board of Directors.
Nagano: First of all, as Chairman of the Board, I would like toapologize for causing concern to the people of the capital
markets regarding this matter. As explained by our executives sofar, this event occurred due to the change in Taiwan from a zero
COVID-19 policy to a coexisting with COVID-19 policy andimpacted the whole of the Taiwanese market. However, the loss
based on the Tokio Marine equity was about 100 billion yen, andI take it seriously as management because of its scale.
Katanozaka: I took the stage at the IR conference in May 2023,
where I received questions directly from an analyst about thisissue. I answered the question of why the Board of Directors of
the Company decided to increase the capital when Tokio Marine,

Strategy and Business Platform Supporting Our Purpose Story

Tsuyoshi Nagano

which was a minority at the time, was not legally obligated tocover the excess liabilities as follows.
● With regard to the portion of the capital increase to beallocated to the payment of claims, the Board of Directors
believes that it is the insurerʼs responsibility to pay the claims
and bear an appropriate burden for that purpose, and made its
decision in consideration of its global reputation.
● With regard to the portion to capture future growth in the
Taiwanese market, based on detailed ﬁgures and facts, we
discussed the future of the Taiwanese market and the growthstrategies of the Taiwanese joint venture, and evaluated that theeconomic rationale was comparable to other M&A deals that
Tokio Marine has implemented to date.
101

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance Dialogue
Nagano: A total of ﬁve Board of Directors meetings were held tofully share information and discuss this matter. We spent a lot oftime not only on the decision concerning the capital increase that
Mr. Katanozaka explained, but also on identifying the true causeof the situation and on the growth strategy of the Taiwanese joint
venture and strengthening our Group-level structure based on thetrue cause. Outside Directors and outside Audit & Supervisory
Board members pointed out many things and gave very usefuladvice from various angles ranging from management of overseas
subsidiaries to geopolitical risks.
This is something I always try to do, and I want to be open
to Outside Directors and outside Audit & Supervisory Board
members, even regarding embarrassing topics, and to engage incandid discussions. By putting this into practice, I think we wereable to make the right management decisions, from identifying
the true cause of the problem, to increasing our capital andacquiring a major share, and then to formulating measures tostrengthen our management structure.
Endo: When a problem arises, as in this case, it is easy to getcaught up in the idea of solidifying local top management withpeople from the headquarters side. While this does not negate
the value of having members of the headquarters on the ground,including more sophisticated risk controls and better reporting to102

Tokio Marine announced in May 2023 that it would accelerate thesale of business-related equities. What was discussed by the
Board of Directors?
Secretariat: Even before the establishment of the Corporate
Governance Code, Tokio Marine had positioned the reduction ofbusiness-related equities as an important management task andhas been promoting the sale of business-related equities for the
20 years from ﬁscal 2002. In May 2022, the policy was revised,
and it was announced that they would continue to be sold.
Subsequently, we announced in November 2022 that we would
accelerate the pace of the sale, and in May 2023 that we would
front-load the acceleration (600 billion yen or more over the four
years from ﬁscal 2023 to ﬁscal 2026). These initiatives havebeen well received by the capital markets.
On the other hand, there are various opinions on
business-related equities. For example, some shareholders areopposed to the appointment of the top management when theamount of business-related equity exceeds a certain level of net
assets. Please tell us about the “Evaluation of Tokio Marineʼs
Stance and Initiatives for the reduction of business-related
equities” and “Discussions by the Board of Directors.”
Katanozaka: As the secretariat explained, Tokio Marine hastaken a series of measures to meet the expectations of investors
regarding the sale of business-related equities. All directors
unanimously agree with this policy and direction. Tokio Marine
also owns shares in ANA Holdings, of which I am Chairman, andI myself believe that accelerating sales is the right direction, andof course shares of ANA are no exception.
The Board of Directors discussed not only the pros and consof the revision of the Guidelines, but also the feasibility ofaccelerating sales. Speciﬁcally, what impact the new policies
would have on our client companies, what kind of message would
be appropriate to negotiate reductions without damaging ourbusiness relationship, and would the sales departments involvedin sales negotiations face considerable diﬃculties werediscussed.
Outside Directors and outside Audit & Supervisory Board
members are usually strict, but I was a little surprised at the factthat they made a lot of comments on the executive side, ha ha.
Endo: I was one of them, ha ha. The most important thing inbusiness is the balance among stakeholders. While reduction isa major premise, for customers who are concerned about the
impact on the stock price, we should listen to their requests as
carefully as possible, such as to proceed with the sale within atime frame and try to respond accordingly.
Nagano: When I was CEO, I remember being told in a dialogue
with investors that they decide whether to take equity risks fromother companies, so they wanted us to take risks in our corebusiness. We cannot deny the views of our customers we heard
from Mr. Endo or the views of those investors. As Mr. Endopointed out, we must listen carefully to the opinions of our
stakeholders and continue to engage in careful dialogue withthem as we move steadily forward with sales.
Katanozaka: At an in-house meeting in October 2022, thedirectors in charge expressed gratitude to the sales department
managers who were responsible for day-to-day operations,
including sales negotiations. I think itʼs tough on the front line,

2

Shinya Katanozaka

but I think they can work with a sense of security that they haveapproval from the executives.
Endo: Another important aspect of the sale of business-related
equities is the question of how to use the capital and funds
generated from the sale.
Nagano: It has been discussed many times in Board of Directorsʼ
meetings and strategy discussions. You are exactly right. To date,
Tokio Marine has used the capital and funds generated throughthe sale of business-related equities in overseas M&A, and wehave realized global risk diversiﬁcation and sustainable proﬁt
growth by shifting equity risk to overseas insurance risk, which
has a low correlation with domestic non-life insurance. Although
it goes without saying that overseas M&A will continue to be oneof the candidates for the use of capital and funds in the future, in
addition to this, we will further diversify risk and achievesustainable proﬁt growth by making greater use of our human andintellectual capital and more capital-eﬃcient fee businesses that
contribute to the realization of our Purpose, such as disasterprevention and mitigation. As a result, we will increase returns to
our customers and shareholders.
At Tokio Marine, we believe it is our management
responsibility to continue to demonstrate to our stakeholders that
we will do what needs to be done to improve Tokio Marineʼs
corporate value and that we will follow the right path.

Strategy and Business Platform Supporting Our Purpose Story

Tsuyoshi Nagano

headquarters, it is important to understand that local people will
always be needed to fully understand the local context andpossibly to engage in tough negotiations with stakeholders.
In that regard, after Tokio Marine acquired a major share, it
dispatched the Chairperson of the Board as well as an expert inrisk control from Tokyo as a CRO as a matter of course, but it
appointed as the President a local person who was familiar withthe local insurance market. I think that was the right decision.
In addition, market events such as infectious diseases andnatural catastrophes can occur anywhere in the world, and fromthe perspective of taking advantage of the lessons learned thistime, it is also worthy of praise that initiatives to advance ERM
management at small, medium, and minor entities (see p. 125)
are accelerating on a global basis.
Katanozaka: I oﬀered the advice that to strengthen our culturalﬁt with local partner companies, it is important to have closer
communication with top management and to reform theworkplace culture. Under the Tokio Marine Group Purpose,
front-line workers and top management, as well as the partnercompany and Tokio Marine, need to forge stronger ties and turnproblems into opportunities.
I think it was very positive for the future that Mr. Komiya, theCEO, visited the site in person and deepened communication
with the top management of the partner company.
Nagano: As you said, I think it is really important to continue oureﬀorts to spread our corporate culture, even at our small, medium,and minor entities.
Katanozaka: I also raised a few other questions and issues. For
example, in Asian regions where various issues such as politics
and ethnicity are interwoven, it is essential to improve a wide
range of intelligence that goes beyond areas directly related to
Tokio Marine operations.
Endo: I agree, and to continuously develop the Taiwanese joint
venture in the future, we need to evolve so that we can ﬁrmly
grasp changes that are diﬃcult to predict, such as changes in
COVID-19 policy, and build a strategy based on that.
Nagano: I would like to thank the Outside Directors and outside
Audit & Supervisory Board members again for their advice andjudgment on this matter from a high-level perspective. But whatʼsreally important is the execution phase. We will make steadyeﬀorts toward the sustainable growth of the Taiwanese joint
venture, including reforming our corporate culture and enhancing
our intelligence. We hope that Outside Directors and outside
Audit & Supervisory Board members will continue to makefact-based judgments while receiving status reports from theexecutive oﬃcers.

103

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance Dialogue
In the era of VUCA, what are the challenges for Tokio Marine,
as a global company, to further increase corporate value?

104

Nagano: Thatʼs right. To achieve our Purpose, Tokio Marine islooking to go beyond the framework of traditional insurers andinto the preparation and recovery of insured events, but this is
unknown territory that no insurer in the world has touched. To
create new value, in addition to the data mentioned by Mr. Endo,
we believe that diversity of human resources is essential. I amaware that one of the most important issues for the future is
how to match Tokio Marineʼs strategies with human resources
strategy.
Endo: To create innovation, it is essential to accept a variety ofdiﬀerences, such as age, gender, nationality, and the presenceor absence of disabilities, to discuss, and to make use of thediversity of discussions. To take full advantage of this diversity, I
think we should put even more eﬀort into building a corporate
culture that respects individual independence and a personnel
system that values that.
Katanozaka: By individual independence we mean someone
focused who can say “no” to the company or the president. What

Nobuhiro Endo

Tokio Marineʼs global integrated group management (seepp. 30‒33) is now in its eighth year, and we believe it has
evolved into the best for Tokio Marine. However, I hope that
Tokio Marine will continue to evolve agilely in line with thechanges of the times and the direction it is heading.
Nagano: The Companyʼs Board of Directors and Audit &Supervisory Board were reorganized in July 2023. With theaddition of three outside directors, including one foreign director,
and one outside Audit & Supervisory Board member, theCompany now has a total of 20 oﬃcers, half of which are internaloﬃcers and half external. Mr. Katanozaka is the chairman of theNomination Committee, and Mr. Endo is the chairman of theCompensation Committee.
As I have mentioned, in the era of VUCA, of course, thecontent of the discussions by the Board of Directors will change
from time to time, but the roles of the Board of Directors in Tokio
Marine have not changed at all.
As a spokesperson for stakeholders, the Board of Directors is
the last stronghold to answer the questions of if Tokio Marine willsolve social issues through its corporate activities, and if theresults will lead to sustainable improvements in corporate value,
and whether Tokio Marine leads businesses and society to the
future through the realization of its Purpose.
We have been and will continue to engage in substantial
discussions toward the realization of our Purpose and theenhancement of corporate value.
Secretariat: Thank you for taking time out of your busy schedule
today.

Nobuhiro Endo

Tsuyoshi Nagano

Shinya Katanozaka

After joining NEC Corporation, Nobuhiro
Endo served as General Manager of the
Mobile and Wireless Operations Division,
President (Representative Director), andChairman of the Board. He is currently
Executive Advisor of NEC Corporation.
He has held his position as a director at
Tokio Marine Holdings since June 2019.

After joining Tokio Marine, Tsuyoshi
Nagano was engaged mainly in domestic
and overseas sales, corporate planning,and product planning operations. He
subsequently serves as CEO of Tokio
Marine and Tokio Marine Holdings, and as
Chairman of Board.

After joining ALL NIPPON AIRWAYS CO.,LTD., Shinya Katanozaka served as
General Manager of the Human Resources
Department, President and Representative
Director of ANA HOLDINGS INC., andcurrently serves as Chairman and
Representative Director of the said company.
He has held his position as a director at
Tokio Marine Holdings since June 2020.

2
Strategy and Business Platform Supporting Our Purpose Story

Secretariat: With our Purpose as our starting point, Tokio Marine
has been able to solve social issues and increase corporate
value as a result. Although these strategies will not change in the
future, please tell us your thoughts on what Tokio Marine, as a
global company, needs to do to further increase its corporate
value in an era when social issues are expanding and becoming
increasingly complex.
Katanozaka: Steady progress has been made in global risk
diversiﬁcation (see pp. 27‒29), one of the strengths of Tokio
Marine. As Mr. Nagano mentioned earlier, by expanding bothour domestic and international businesses, which have a low
correlation with each other, we have increased the diversiﬁcationeﬀect from 30% in ﬁscal 2013 to 47% in 10 years. In the
unproﬁtable domestic ﬁre insurance markets, we have been able
to implement comprehensive measures over the past four years,
including rate increases, product revisions, and reinsurance cycle
management. Even amid the materialization of unexpected risks
such as natural catastrophes and COVID-19, I think there has
been suﬃcient speed in responding to risks to Tokio Marine.
On that basis, if I were to raise one issue, it would be theissue of residential ﬁre insurance in the United States. An
increasing number of insurance companies are withdrawing from
California, where wildﬁres are growing in scale. We also hear thatthe number of so-called “insurance refugees” who cannot get
insurance as a result of soaring insurance premiums is increasingin Florida, where hurricane damage is worsening.
Nagano: Insurance serves as “social infrastructure.” However, if
the economic value of an insurance company is damaged, it will
not be able to run its business, and as a result, it will not be able
to fulﬁll its role as “social infrastructure.” In this era of VUCA, we
are confronted with the diﬃculty of balancing the “social value”
and “economic value” of insurance companies.
Endo: This is a very diﬃcult problem, but I think one solution lies
in data. VUCA is a result of being unable to see the future, so if
you can use the power of “data” to ﬁgure out the true cause, you
can see the future. This ability to see ahead is the method toescape from VUCA. At the end of the day, the insurance
business is a human business. Of course, the situation diﬀers
depending on the country or region, but there must be manythings in common across the world. Accordingly, I would like to
see Tokio Marine further strengthen its systems and capabilities
to accumulate and analyze information on a global basis,including industry-academia collaboration, and continue toprotect our customers and society in times of need on a global
basis.
In addition to strengthening our core insurance business, Tokio
Marine plans to expand its business into preparation and recovery
areas such as preventing and mitigating disasters, preventing
disease, and promoting early recovery and preventing recurrence.
I believe that data will be a key success factor in these areas aswell.

kind of employee were you, Mr. Nagano?
Nagano: Now that you mention it, I might have been a little
like that. When we acquired PHLY of the United States in 2008,
I was unoﬃcially told by Mr. Sumi, the president at the time, tooversee this deal as the director in charge of corporate planning.
At the time, I said that in the middle of the subprime crisis, a deal
worth 500 billion yen was risky, and it was time to solidify ourposition. In the end, I was persuaded by him to focus on PMI with
an emphasis on cultural ﬁt so that I could fulﬁll my roles. And you
know the results of the acquisition. It was the second successfullarge-scale M&A after TMK.
Endo: If you look at the results alone, you might say, “Mr. Sumi
was right,” but the important thing in this discussion is whether
there is an environment in which individuals can say what they
think to anyone, even the president. In other words, to make themost of diversity, it is important to have a culture that allows for
failures and mistakes. I want to leave big and diﬃcult work where
people expect mistakes to young people, more and more, and I
want them to ﬁrmly inherit a “focus” like Mr. Nagano.
Nagano: I believe that the essence of global management lies indiversity and culture.
First, we must create new value by incorporating diversity into
our business. For example, in ﬁscal 2022, two top executives ofacquired companies were newly appointed as Executive Vice
Presidents and asked to participate and play active roles at theGroup level. They and the Japanese C-suite led by the CEO, Mr.
Komiya, discuss priority issues of the entire Group about twice a
week.
However, the more diversity you incorporate, the more diﬃcult
it is to determine the direction in which the members are heading.
Therefore, through the spread of culture, we can unite various
members as a team.

105

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance▶Record of Measures to Strengthen Corporate Governance
FY2002The corporate governance system of the Company is designed as ain the process of determining the nomination and remuneration of

hybrid structure whereby the Nomination Committee and the

Directors, consist of a majority of outside oﬃcers and are both chaired byCompensation Committee are established in addition to the structure of aan outside oﬃcer.

company with an Audit & Supervisory Board.
Since its founding in 2002, the Company has worked to improve its
corporate governance. In this way, we have determined that the current

emphasizes making high-quality decisions that reﬂect the insight ofsystem, which emphasizes management functions while also ensuring

Outside Directors and outside Audit & Supervisory Board members.

monitoring functions, is optimal at this point in time.
However, we also believe that we must be in constant pursuit of themost optimal solutions to improve monitoring functions, including ways of

47% currently being outside directors. Furthermore, the Nomination

institutional designing, increasing the number of non-Japanese directors,

Committee and the Compensation Committee, which ensure transparency

and increasing the ratio of outside directors and female directors.

▶Corporate Governance System
Audit & Supervisory Board

Board of Directors● Audits Director performancesupervises Director performance

8 Directors

47%

7 Directors
2 Members

Nomination Committee● Deliberates appointment and dismissal of CEO, Directors, andAudit & Supervisory Board Members; reports to the Board of
Directors● Deliberates CEO successor plan and supervises thedevelopment of successor candidates

2 Members
OutsideOﬃcer ratio

60%

OutsideMember ratio

3 Members
Outside oﬃcer
selected asCommittee Chair

60%

3 Members

FY2013

FY2015FY2016FY2017● Deliberates policies related to Director and ExecutiveOﬃcer performance evaluations, compensation systems
and levels, and determination of oﬃcer compensation;
reports to the Board of Directors

1 MemberOutsideOﬃcer ratio

80%

4 Members

FY2019FY2021

November
Evaluations of eﬀectiveness of the Board of Directors (surveys administered to all
Directors and Audit & Supervisory Board Members) commenced

FY2022

FY2023

November
The ﬁrst evaluationsof eﬀectivenessof the Board of
Directors bya third-party
organization

June
Ratio of Outside Directors
raised to one-third

June
4

June
First
non-JapaneseOutsideDirector
appointed

3 (decreased in ﬁscal 2005)

June
First non-Japanese
Executive Oﬃcer
appointed

2
August4

April
Millea Group
Corporate
Philosophy
established

June
6

May
Corporate Governance
Policy renamed Tokio
Marine Holdings
Fundamental Corporate
Governance Policy

May
Corporate Governance
Policy formulated

April
5

April June
6
5

April
6

April
7

NovemberTokio Marine Holdings Fundamental
Corporate Governance Policy revised(Major areas of revision: Appointment
conditions and dismissal policies for the
President)

July
Stock ownership plan introduced
July
Stock options introduced

July
Ratios ofperformance-linked bonuses
increased for certain oﬃcers

July
Same asprevious update

July
Non-ﬁnancial
indicators added toperformance-linked
bonuses

Diversity in the members of the Board of Directors and Audit & Supervisory Board is accelerating.
Ratio of Outside Directors and Outside Audit& Supervisory Board Members

Ratio of Female Directors and Audit& Supervisory Board Members

Fiscal 2022

Fiscal 2023

Fiscal 2022

(10 out of 20)(3 out of 19)(compared with July 1, 2022)

Outside oﬃcer
selected asCommittee Chair

FY2018July
Nomination Committee and Compensation
Committee discretionally establishedCompensation Committee

47%(9 out of 19)
106

FY2011Strategy and Business Platform Supporting Our Purpose Story

OutsideDirector ratio

Policies● Determines signiﬁcant business execution,

2

FY2005

Non-Japanese
Executive Oﬃcers

Directors, the rate of outside directors should generally exceed 1/3, with

3

Compensation

Moreover, to increase the monitoring function of the Board ofMembership

As an insurance holding company, the Company determinessigniﬁcant business execution by resolution of the Board of Directors andOutside Directors

A Hybrid Governance Structure That Combines Management and Monitoring Functions

April
Millea Holdings(currently Tokio Marine
Holdings) established
as a company with an
Audit & Supervisory
Board

Outside Audit &Supervisory Board
Members

Structure

Corporate Governance

FY200450%(compared with July 1, 2022)

16%

Ratio of Non-Japanese Directors and Audit& Supervisory Board Members(compared with July 1, 2022)

Fiscal 2023

Fiscal 2022

Fiscal 2023

(4 out of 20)(0 out of 19)(1 out of 20)

20%

0%

5%

107

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance
Skills of Directors and Audit & Supervisory Board Members

Principal Activities

Tokio Marine Group is conducting business globally as an insurance

business reach, insights from global environmental awareness andIn order to build the Board of Directors for sustainable improvement of corporate value, we appoint Outside Directors in consideration of thegroup. As part of that, the Company, as the insurance holding company

business administration are extremely beneﬁcial for Tokio Marine

overall skills composition of the Board of Directors and the balance of their terms in oﬃce, so that these Outside Directors can provide highly

taking charge of the Group, is building highly sound and transparent

Group.

eﬀective supervision and advice.

corporate governance and internal control as well as administering

We also consider it preferable for the Audit & Supervisory Board

Group companies as appropriate. The Board of Directors in thismembers to have skills similar to those of the members of the Board ofcompany with an Audit & Supervisory Board makes important businessDirectors, so that they can properly audit the work of the Board ofdecisions as well as supervises the work of the directors.

Directors. Skills in “ﬁnancial accounting and ﬁnance” are thought of as

For the Board of Directors to properly fulﬁll its role, the board needs

especially important.

to possess the necessary skills on the bases of the business content,

Based on this direction, we appoint as outside directors not only fourbusiness development, governance structure, and so forth of Tokiowith business administration experience (of whom one has extensive

Marine Group. Moreover, the necessary skills will diﬀer depending on

experience as a business administration consultant) but also one withchanges in the business environment. To facilitate important businessexperience in scholarship, as an economist, and as a lawyer. Moreover,decisions and proper supervision in the Company, board members

the outside directors also include a lawyer, an analyst, and an

ﬁrst need to deeply understand the business, which means having aacademic expert. Most of the outside directors have rich international

thorough understanding of the “insurance business.” Moreover, theexperience. In this way, the Board of Directors and the Audit &basis of all decision-making is skills in “ﬁnancial economics,” “ﬁnancial

Supervisory Board consist of members with diverse skills. Within theaccounting and ﬁnance,” “legal compliance,” “human resources

framework of the Board of Directors, etc., the outside directors provide

strategy,” and “governance and risk management.” Moreover, as theadvice about the management of the Company based on these skills. In

planetʼs environment and technological innovation have become issues

addition, from a gender perspective, we have appointed two female

for society, the importance of skills pertaining to “environment” anddirectors and two female Audit & Supervisory Board members so that“technology” is growing as well.

the ratio of female members of the Board of Directors and the Audit &In addition, Directors are expected to have skills relating toCurrent termin oﬃce

Attendance atboard meetings, etc.

Major activities including the remarks made at board meetings, etc.

Akio Mimura(outside director)

12 yearsand9 months

He attended nine out of
10 meetings of the Boardof Directors in ﬁscal
2022.

He has fulﬁlled his supervisory functions by presenting inquiries and remarks at the Board of Directors
meetings based on his insight as a specialist in business management acquired through many years ofexperience in a management role. In addition, as the chair of the Nomination Committee and theCompensation Committee, he has contributed to the fulﬁllment of supervisory functions throughnominations, performance evaluations, and the establishment of an appropriate compensation systemof directors, etc.

Masako Egawa(outside director)

7 yearsand9 months

She attended all 10
meetings of the Board of
Directors in ﬁscal 2022.

She has fulﬁlled her supervisory functions by presenting inquiries and remarks at the Board of Directors meetings
based on her insight into corporate management acquired through many years of experience in ﬁnancial
institutions, involvement in academic activities related to corporate governance, and experience at The Universityof Tokyo as an Executive Vice President. In addition, as a member of the Nomination Committee and theCompensation Committee, she has also contributed to the fulﬁllment of supervisory functions through nominations,performance evaluations, and the establishment of an appropriate compensation system of directors, etc.

Takashi Mitachi(outside director)

5 yearsand9 months

He attended all 10
meetings of the Board of
Directors in ﬁscal 2022.

He has fulﬁlled his supervisory functions by presenting inquiries and remarks at the Board of Directors
meetings based on his insight as a specialist in business management acquired through many years ofexperience in a consulting ﬁrm and a management role. In addition, as a member of the Nomination
Committee and the Compensation Committee, he has also contributed to the fulﬁllment of supervisory
functions through nominations, performance evaluations, and the establishment of an appropriatecompensation system of directors, etc.

Nobuhiro Endo(outside director)

3 yearsand9 months

He attended all 10
meetings of the Board of
Directors in ﬁscal 2022.

He has fulﬁlled his supervisory functions by presenting inquiries and remarks at the Board of Directors
meetings based on his insight as a specialist in business management acquired through many years ofexperience in a management role. In addition, as a member of the Nomination Committee and theCompensation Committee, he has also contributed to the fulﬁllment of supervisory functions throughnominations, performance evaluations, and the establishment of an appropriate compensation systemof directors, etc.

ShinyaKatanozaka(outside director)

2 yearsand9 months

He attended all 10
meetings of the Board of
Directors in ﬁscal 2022.

He has fulﬁlled his supervisory functions by presenting inquiries and remarks at the Board of Directors
meetings based on his insight as a specialist in business management acquired through many years ofexperience in a management role. In addition, as a member of the Nomination Committee and theCompensation Committee, he has also contributed to the fulﬁllment of supervisory functions throughnominations, performance evaluations, and the establishment of an appropriate compensation systemof directors, etc.

Emi Osono(outside director)

1 yearand9 months

She attended all 10
meetings of the Board of
Directors in ﬁscal 2022.

She has fulﬁlled her supervisory functions by presenting inquiries and remarks at the Board of
Directors meetings based on her insight into corporate management acquired through many years of
research into corporate strategy, etc. In addition, as a member of the Nomination Committee and theCompensation Committee, she has also contributed to the fulﬁllment of supervisory functions throughnominations, performance evaluations, and the establishment of an appropriate compensation systemof directors, etc.

Akinari Horii(outside Audit& Supervisory
Board member)

11 yearsand9 months

He attended all 10
meetings of the Board of
Directors and all 10
meetings of the Audit &Supervisory Board inﬁscal 2022.

He has fulﬁlled his audit functions by presenting inquiries and remarks based on his insight acquired
through many years of experience in his role as an executive or a regular employee of the Bank ofJapan.

Akihiro Wani(outside Audit& Supervisory
Board member)

8 yearsand9 months

He attended all 10
meetings of the Board of
Directors and all 10
meetings of the Audit &Supervisory Board inﬁscal 2022.

He has fulﬁlled his audit functions by presenting inquiries and remarks based on his insight acquired
through many years of experience in his role as an attorney at law.

Nana Otsuki(outside Audit& Supervisory
Board member)

4 yearsand9 months

She attended all 10
meetings of the Board of
Directors and all 10
meetings of the Audit &Supervisory Board inﬁscal 2022.

She has fulﬁlled her audit functions by presenting inquiries and remarks based on her insight which
was acquired through many years of experience as an analyst in ﬁnancial institutions.

Supervisory Board is 20%.

“internationality” and “business administration.” Considering our global

Skills and experience
Name

Human
GovernanceCorporate Finance &Legal &
Insurance
Accounting
Environment Resources
Technology Internationality& RiskManagement Economy
ComplianceBusiness
Strategy Management

Tsuyoshi Nagano

Chairman of the
Board

○

○

Satoru Komiya

President & Chief Group CEO (Group Chief Executive Oﬃcer)
Executive Oﬃcer Group CCO (Group Chief Culture Oﬃcer)○○

Kenji Okada

Senior Managing
Group CFO (Group Chief Financial Oﬃcer)
Director○○

Yoichi Moriwaki

Senior Managing Group CSO (Group Chief Strategy
and Synergy Oﬃcer)
Director○○

Kichiichiro
Yamamoto

Senior Managing Head of International Business
Co-Head of International BusinessDirector○

Yoshinori Ishii

Managing Director

Group CLCO (Group Chief Legal andCompliance Oﬃcer)

Kiyoshi Wada

Managing Director

Group COO (Group Chief Operating Oﬃcer)
Group CSUO (Group Chief Sustainability Oﬃcer)

Shinichi Hirose

Director○○

Takashi Mitachi

Outside Director○○

Nobuhiro Endo

○
○
○

○
○

○

Outside Director

○

○

○

○

Emi Osono

Outside Director○

Kosei Shindo

Outside Director

○

○

○

○

○

○

○

○
○

○

○

○
○

○

○

○
○

○

○

○
○
○

○

○
○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

Hirokazu Fujita

Audit & Supervisory
Board
Member (full-time)○○

Takayuki Yuasa

Audit & Supervisory
Board
Member (full-time)

○

○

○

○

Akihiro Wani

Outside Audit &Supervisory
Board Member

○

○

○

○

○

Nana Otsuki

Outside Audit &Supervisory
Board Member

○

○

○

○

○

Junko Shimizu

Outside Audit &Supervisory
Board Member

○

○

○

○

○

○

○

○
○

Haruka Matsuyama Outside Director

Outside Director

○

○

○
○

Shinya Katanozaka Outside Director

Robert Alan
Feldman108

Positions and key responsibilities

○

○

○

○

○

○

○

○
○

2
Strategy and Business Platform Supporting Our Purpose Story

Name

Note 1: As of March 31, 2023
2: Descriptions in the “Attendance at board meetings, etc.” and “Major activities including the remarks made at board meetings, etc.” include attendance at Audit & Supervisory Board meetings and major activities
including the remarks made at Audit & Supervisory Board meetings of outside Audit & Supervisory Board members.
3: All 10 Board of Directorsʼ meetings held during fiscal 2022 were ordinary meetings. All 10 Audit & Supervisory Board meetings held during fiscal 2022 were ordinary meetings.

109

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate GovernanceInitiatives to Improve the Eﬀectiveness of the Board of Directors

Fiscal 2022 Evaluation of Eﬀectiveness and Fiscal 2023 Operation Policy

Method of Eﬀectiveness Evaluations

The Company has been conducting evaluations of eﬀectiveness of the Board of Directors using surveys prepared in-house. However,with the aim of (1) avoiding complacency and (2) eliciting the true feelings of Outside Directors and outside Audit & Supervisory Board

Once a year, the Company evaluates the eﬀectiveness of themembers, this year, we conducted an evaluation of eﬀectiveness of the Board of Directors using a third-party organization. The third-party

Board of Directors covering all Directors and Audit & Supervisoryorganization has evaluated that the Board of Directors and the Audit & Supervisory Board members appropriately fulﬁll their respective

Board members. In ﬁscal 2022, with the aim of further fulﬁllingroles and functions, thereby ensuring the high eﬀectiveness of the Board of Directors.

the functions of the Board of Directors, the Company conducted
its ﬁrst evaluation of the eﬀectiveness of the Board of Directors

FY2023
Aprilusing a third-party organization and reported the results to theBoard of Directors. The Board of Directors, for its part, reviews
the results of the evaluation and reﬂects them in its eﬀorts to

Fiscal 2022 evaluation of eﬀectiveness and ﬁscal 2023 operation policy

FY2023April

improve eﬀectiveness.

(Report to the Board of Directors in April 2023)

FY2022
November▶PDCA Cycle to Improve Eﬀectiveness(1) Overall evaluation

FY2022
April

Execution

FY2022February

Review

FY2021
November

Evaluation

Review()

management issues were discussed under appropriate agenda setting and management, with the chairperson, internal andoutside Directors, and Audit & Supervisory Board members fulﬁlling their roles and functions appropriately. The Board of
Directors also conducted a review of the evaluation results of the third-party organization and conﬁrmed again that thefunctions of the Board of Directors had been fully demonstrated, as was the case with eﬀectiveness evaluations results
based on the in-house survey. The main review results of the Board of Directors are as follows.
●Free and open-minded discussions are taking place and governance functions well.

●

Consider securing more discussion time and opportunities to discuss medium- to long-term strategies and directions
and to enhance discussions to realize them.

(2) Main proposals from third-party organizations and future policies(Proposal 1)

Evaluation

Although there are time constraints in the Board of Directors meetings, it is desirable to secure discussion time andopportunities for enhancing deliberations on medium- to long-term themes.
(Response 1)
Add Board of Directors meeting slots and work to secure time for discussions.
(Proposal 2)
It would be better to report the details of the discussions by the Nomination Committee and the Compensation

Fiscal 2022

Evaluation method by a third-party organization

2
Strategy and Business Platform Supporting Our Purpose Story

Execution

Includesevaluation bya third-party
organization

A third-party organization evaluated the Companyʼs Board of Directors as an organization where many importantCommittee to the Board of Directors.
(Response 2)
After clarifying the content to be shared with the Board of Directors, we will work to enhance the content of reports to the

PeriodNovember 2022 to January 2023

TargetAll directors and auditors

Main contents

Board of Directors.

(3) Operation policy for ﬁscal 2023

(1) Roles and functions of the Board of Directors

It is extremely important for the Board of Directors to fulﬁll its expected roles in enhancing corporate value. In order to(2) Response to the results of last year s evaluation of eﬀectivenessfurther improve the eﬀectiveness of the Board of Directors, we will steadily respond to the proposals from the third-party(3) Composition, roles, and operation status of the Nomination Committee and the Compensation Committeeorganization and continue to study this matter.

(4) Support system for Outside Directors(5) Governance system of the Company and overall eﬀectiveness of the Board of Directors(6) Self-evaluation of the functioning of the Board of Directors and Audit & Supervisory Board members

110

111

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance
Leveraging Outside Oﬃcersʼ Expertise

Succession Management

When discussing and formulating business strategies for sustainablecorporate growth and corporate value improvement over the medium

The following themes were discussed in ﬁscal 2022, andsimilar discussions will be held in ﬁscal 2023.

to long term, the Company seeks to make the most of insights fromThe Company also holds one meeting a year that is attended by

Roles of the Nomination Committee

Nomination Committee Members

1. The Company shall establish the Nomination Committee as an

The majority of the Nomination Committee consists of outsideadvisory body to the Board of Directors.

outside directors and Audit & Supervisory Board members. It is forindependent oﬃcers only. It is entirely conducted by independent

this purpose that the Board of Directors holds “Discussions onoﬃcers, including establishing agenda items. Opinions are

Corporate Strategy,” which are discussions about themes such as

exchanged objectively and from broad perspectives. In ﬁscal

matters and report to the Board of Directors:

the current management environment and management challenges.

2022, discussions were held on corporate culture, compliance,(1) Appointment and dismissal of the President, Directors,

The themes are selected based on questionnaire responses fromand other issues, with recommendations made based on these

directors and Audit & Supervisory Board members as well as

discussions.

(2) Appointment requirements and dismissal policies for theand Executive Oﬃcers▶ Discussions on Corporate Strategy Themes
Fiscal YearFY2021

FY2020(1) Direction of the formulation of the next Mid-Term Business Plan
We back-casted from our medium- to long-term vision and discussed the changes in our operating environment and strategies
based on them.
(2) Domestic non-life insurance strategies
We discussed the medium- to long-term impact of environmental changes on domestic non-life insurance businesses and theroles of each company based on these factors.
(3) Human resource strategies
We discussed what Tokio Marine Group values, the competencies of human resources we seek, and personnel strategies basedon the management strategies.
(4) Cybersecurity
Discussions were held on the environment and the overall picture of issues and measures in the Tokio Marine Group related tocybersecurity.
(5) Exchange of opinions with management of overseas subsidiary
The CEO of Pure (United States) gave a presentation on his company s business conditions, etc., and we exchanged opinions by
asking various questions.
(1) Exchange opinions with overseas subsidiary heads
CEOs from TMSR (Brazil) and TMHCC (US) gave presentations on the current state of their respective companies, exchanging
opinions through a Q&A format.
(2) Asia non-life insurance business strategies
Held discussions on Asia non-life insurance business strategies with the participation of the Executive Oﬃcer in Charge of Asiaand the CEO of our local subsidiary in Thailand.
(3) Tokio Marine Group new business strategies
Held discussions regarding risks and opportunities of new business.
(1) The next Tokio Marine Group Mid-Term Business Plan;(2) exchanging opinions with overseas subsidiary heads;(3) Tokio Marine Group domestic life and non-life insurance business strategies;(4) Tokio Marine Group digital strategies; and(5) direction of human resource strategies

FY2019(1) Tokio Marine Group CSR/Sustainability initiatives and SDGs;(2) exchanging opinions with overseas subsidiary heads; and(3) Tokio Marine Group digital strategies

FY2018(1) Tokio Marine Group domestic life and non-life insurance business strategies;(2) direction of human resource strategies;(3) exchanging opinions with overseas subsidiary heads; and(4) Tokio Marine Group digital strategies

3. The Nomination Committee shall deliberate on the succession
plan for the President, and appropriately supervise theoperation of the plan so that the development of successor
candidates is carried out in a planned way.
4. The Nomination Committee shall specify the skills, etc.,
required of Directors and Audit & Supervisory Board Members
and use that as a reference for deliberations on theMembers

Shinya Katanozaka

Outside Director

Emi Osono

Outside Director

Kosei Shindo

Outside Director

Tsuyoshi Nagano

Chairman of the Board

Satoru Komiya

President and CEO

The number of meetings diﬀers by ﬁscal year; there were two inﬁscal 2021 and two in ﬁscal 2022 with three planned in ﬁscal
2023. Moreover, all members attended all meetings of theNomination Committee in ﬁscal 2022.

appointment and dismissal under Paragraph (2), Item (1).

CEO Selection Criteria● Having the qualities to lead the business to sustainable

Overview of the Nomination Committee
in Fiscal 2022
Fiscal Year

Themesgrowth and medium- to long-term improvements in the●corporate value of the Group●● Good understanding of the Companyʼs business conditionsFirst meeting(October 19, 2022)● Broad knowledge needed for corporate management● Suﬃcient decision-making ability● Properly exercising oneʼs competencies as an oﬃcer, pastachievements and experiences, personal character, etc.

Second meeting(January 23, 2023)

Evolution of skill matrix utilization
Clariﬁcation of terms in oﬃce standards
for Outside Oﬃcers● Improvement of ratio of females on the
Board of Directors●●

Directors and executive oﬃcers, FY2023
Succession planning and candidates forCEO

Likewise, regarding the succession of others on the management
team (including foreign national oﬃcers) who are not the CEO,discussions are held at talent management meetings whereprincipal oﬃcers participate, while training plans and othermatters are reported to the Nomination Committee.
In April 2023, the Group established TLI, a Group-wide
global human resource development program to foster future
management candidates (see pp. 30, 31 for details). In addition,
speciﬁc training measures are implemented in a planned way sothat the managerial capabilities of candidates are honed, forexample, by dispatching them to external executive programs(training) where they study together with management from othercompanies.

Appointment of Outside Directors

2
Strategy and Business Platform Supporting Our Purpose Story

FY2022

ThemesChairman

Audit & Supervisory Board Members, and Executive Oﬃcers
President, Directors, Audit & Supervisory Board Members,

themes that come up at “independent oﬃcersʼ meetings.”

oﬃcers, and the Chairman is elected from the outside oﬃcers.

2. The Nomination Committee shall deliberate on the following

Diversity of the Board of Directors has become more importantfrom the perspective of enhancing supervisory functions andin light of the further acceleration of the Companyʼs global
expansion. Based on this policy, in appointing new Outside
Directors, the Company strives to diversify their skills, experience,and background, including their international nature, experiencein corporate management, and deep knowledge of governance. At
the same time, the composition of the members of the Board of
Directors is designed to achieve an optimal balance.

(Reference) Provision of Information to Outside Directors● We held a meeting to exchange opinions between Outside Directors and mid-level employees.

112

113

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate GovernanceOﬃcer Compensation to Improve Corporate Value
Policy▶Overview of the Compensation Committee in Fiscal 2022

The policy for determining compensation for oﬃcers is as follows:
●

●

●

●

Ensure “transparency,” “fairness,” and “objectivity” regarding
compensation for oﬃcers.
The Board of Directors shall set the level of compensation
for Directors and Executive Oﬃcers according to the
responsibilities of each, after setting the standard amount foreach position, taking into consideration factors such as thebusiness performance of the Company and the level ofcompensation in other companies.
Of the diﬀerent types of compensation for Directors
and Executive Oﬃcers, ﬁxed compensation andperformance-linked bonuses shall be paid monthly, while
share compensation shall be delivered upon resignation.
The Board of Directors shall determine the content ofcompensation for individual Directors and Executive Oﬃcers
and other important matters concerning compensation
for Directors, Audit & Supervisory Board Members, andExecutive Oﬃcers. Decisions on any matter requiringconsultations with the Compensation Committee shall bemade after obtaining the opinions of the said Committee.

Fiscal Year

Theme
●

●

First meeting(May 20, 2022)●●

Second meeting(July 20, 2022)●●

Third meeting(December 21, 2022)

Determination Process●●▶Members of the Compensation Committee
ChairmanMembers

Nobuhiro Endo

Outside Director

Takashi Mitachi

Outside Director

Robert Alan Feldman

Outside Director

Haruka Matsuyama

Outside Director

Satoru Komiya

President and CEO

The Compensation Committee deliberates and reports to theBoard of Directors on the following matters:
●

●

●

114

Evaluation of the performance of Directors and ExecutiveOﬃcers of the Company, as well as the president of its
principal business subsidiaries.
The compensation system for Directors, Audit & Supervisory
Board Members, and Executive Oﬃcers of the Company
and its principal business subsidiaries and the level ofcompensation for Directors (full-time) and Executive Oﬃcersof the Company and its principal business subsidiaries.
Policy for determination of compensation for Directors,
Audit & Supervisory Board Members, and Executive Oﬃcers
The number of meetings was three in ﬁscal 2021 and ﬁscal
2022, with three planned in ﬁscal 2023 as well. For ﬁscal
2022, all committee members attended all Compensation
Committee meetings held during their term of oﬃce.

Performance-linked bonuses have been introduced to provide greater incentives to improve corporate value. Bonuses are linked to achievementlevels for each of the Companyʼs and the individualʼs targets. Evaluation is determined based on the previous ﬁscal yearʼs performance, andmonetary consideration is paid in reﬂection of this evaluation (bonuses are adjusted within a range of 0% to 200% based on the evaluation).
a. Individual targets: Set according to the responsibilities of each director (including ESG and medium- to long-term strategic targets*).
b. Company targets: Set based on ﬁnancial indicators and non-ﬁnancial indicators.

Discussion and reporting on corporate
performance evaluation in ﬁscal 2021

In ﬁscal 2023, we increased the proportion of non-ﬁnancial indicators to 20%, with the aim of further promoting employee engagement and sustainability.

Discussion and reporting on individual
performance evaluation in ﬁscal 2021

▶Targets and Results for Fiscal 2022

CEO individual performance
evaluation and brieﬁng on task
achievement progress in ﬁscal 2021
CEO individual performance evaluationand setting the ﬁrst targets for the periodOﬃcer compensation levels that apply
in July 2023 or later(including validation)* Further globalizing and strengthening the functions of management, strengthening human resources and the organization, etc.

Financial
Indicators
Non-Financial
Indicators

Item

Composition
ratio

Targets

Results

Adjusted Net Income

55％

550 billion yen

444.1 billion yen

Adjusted ROE

35％

12.5％

11.1％

Employee engagement indicators

5％

Improvement in employee engagement scores

No major ﬂuctuations (100％)

Indicators relating to sustainability strategy

5％Comprehensive evaluation of eﬀorts in the ﬁelds listed as priority issues

Satisfactory results (100％)

Item

Composition
ratio

Targets

Adjusted Net Income

50％

670 billion yen

Adjusted ROE

30％

17.1％

Employee engagement indicators

10％

Improvement in employee engagement scores

Indicators relating to sustainability strategy

10％Comprehensive evaluation of eﬀorts in the ﬁelds listed as priority issues▶Targets for Fiscal 2023

Change in jobs subject to additional
allowance based on responsibility

Financial
Indicators

Non-ﬁnancial indicators for oﬃcer
compensation systems that apply in
July 2023 or later

Non-Financial
Indicators

2

Reference: Oﬃcer compensation to promote ESG initiatives

Compensation System for Directors andAuditors
The compensation structure for Directors and Audit &Supervisory Board Members consists of ﬁxed compensation,
performance-linked bonuses, and share compensation, and the
proportions for each directorʼs responsibilities are as follows:▶Ratios of Compensation by Responsibility■Fixed Compensation ■Performance-Linked Bonuses ■Share Compensation

Chairman of
the Board
President &Group CEO

40
30

30

40

Outside Directors/
Part-Time Directors

3080

Full-Time Audit& Supervisory
Board Members/
Outside Members
Others30

20

For Tokio Marine Group, our initiatives for sustainability and
ESG are part of our business aims themselves. It is our belief
that we can realize sustainable growth for the Company as aresult of solving social issues through our business.
To further advance our ESG initiatives, for example, inoﬃcer compensation governance, the Compensation
Committee has continuously discussed whether to havecompensation reﬂect performance in ESG initiatives, based on
the thinking that the degree to which initiatives areaccomplished ought to serve as incentives.
As a result, while we have had a system where appropriate

incentives applied to oﬃcers by setting targets for theirindividual performance linked to their oﬃcer compensation,from ﬁscal 2022 we are introducing “employee engagement
indicators” and “sustainability indicators” as KPIs to determine
corporate performance compensation, thereby creating asystem that reﬂects compensation linked with performance.
In the future, we will aim to continuously raise the level andrealize high and consistent incentive accountability based on
new developments in internal discussions about sustainability
strategies and trends in the maturation and establishment ofways to evaluate non-ﬁnancial indicators in the market.

(2) Stock-based compensation

Amount of Compensation

Share compensation has been introduced with the aim ofallowing shareholders and directors to share the returns fromstock price movements on the same ship and constitutes morethan 20% of Director compensation.

The Compensation of Directors and Auditors is as follows:
1,000(millions of JPY)

■Internal Director ■Internal Auditor■Outside Director ■Outside Auditor
800

51

42
56
600

Strategy and Business Platform Supporting Our Purpose Story

The Compensation Committee is an advisory body to theBoard of Directors and, in ﬁscal 2023, consisted of ﬁve
members (chaired by an Outside Director), including four
Outside Directors.

Oﬃcer compensation systems andlevels that apply in July 2022 or later(1) Performance-linked compensation

72

44
58
72

45
59
72

51
100
72

98
49
76

72

72

400

100

584
200

50

30

20

0

2017

473

461

433

2018

2019

2020

553

736

2021

2022 (FY)115

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance
Reduction of Business-Related Equities
Eﬀorts to Reduce Total Volume

the market value at the time of sale) have been sold, and their book60%

value reduced by 70% (compared with March 31, 2002).

50%▶Trends in Book Value of Business-Related Equities(TMNF)*1
100

End of fiscal 2025: Transition to IFRS*4(increase in net assets)

70%

Throughout the year, the Tokio Marine Group holds four types ofcompanies in which the Company invests, dialogues based on voting

values; dialogues based on ﬁnancial conditions, etc.; dialogues based

We commenced eﬀorts to reduce our business-related equities since
A total of 2.5 trillion yen worth of business-related equities (based onon the status of consideration for ESG; and, in the process of

dialogues: dialogues with companies with particularly large market▶Ratio of Holdings to Net Assets*3

2002, long before the Corporate Governance Code was made public.

Dialogue Based on the Stewardship Code100

▶Overview
Held Market Value①Dialogue with companies with particularly large market values

40%

Dialogue based on the impact on the market and the value of theCompanyʼs assets.

30%②Dialogue based on ﬁnancial conditions, etc.

10%
0%

82

2020

2021

2022

2023

2024

2025

The Company decides which investee to engage in a dialogue, by
taking into account the ﬁnancial conditions of the companies.

2026*3: Net assets for fiscal 2023 and after are estimates for each fiscal year
*4: Scheduled for disclosure in May 2026

60

③Dialogue based on the status of consideration for ESG

57
40

At meetings of its Board of Directors, the Company veriﬁes the risk

42
32

20

30

The other party to the dialogue will be decided based on thecompanyʼs consideration for ESG.

and returns associated with holding such shares on an individual
basis, as well as the portfolio as a whole, and, conﬁrms the economic

Shareholdings inlisted companies(approximately
1,050 companies)

rationality of holding the business-related equities. The economic
End of
End of
End of
End of
End of
End ofMarch 2002 March 2007 March 2012 March 2017 March 2022 March 2023

Under the current Mid-Term Business Plan, we had set a goal ofsales of at least 100 billion yen annually. In May 2022, we revised
our Fundamental Corporate Governance Policy and declared that wewould continue to sell. Subsequently, we announced in November
2022 that we would accelerate the pace of sales* , and in May 2023
2

that we would further accelerate it (by 600 billion yen or more overthe four years from ﬁscal 2023 to 2026). As a result, the ratio to net
assets under IFRS is expected to be around 30% by the end of ﬁscal
2026. Since we will continue to sell beyond that point, the ratio to
net assets of 20% is just a “milestone.”*2: At the IR conference held in November 2022, the Company explained that it would consider
accelerating the divestment to 120-150 billion yen in ﬁscal 2023 and to about 1.5 times the current
level from ﬁscal 2024.

▶Content of Revisions to Fundamental Corporate
Governance Policy

BeforeRevision

After
Revision(Policy relating to business-related equity holdings)
Article 3 Business-related equities are implemented by a
portion of the Companyʼs business subsidiaries (companies
at which the Company directly holds a majority of voting
rights. The same shall apply hereinafter.) with the intent ofstrengthening transaction relationships, and held with theintent to improve the corporate value of the Group. However,
the Company will continue to improve its capital to items
that are not easily aﬀected by ﬂuctuations in share price, andfrom the viewpoint of improving capital eﬃciency, continue
to work to reduce the total amount.
(Policy on business-related equity holdings)
Article 3 The Company will review the Groupʼs risk
portfolio and reduce the amount of equities it holds as
business-related equities in order to redirect capital toward
areas such as resolving social issues and growing businessﬁelds.

rationality is determined by comparing the ROR (Return on Risk)*5
calculated from risks and returns of both insurance transactions andequity investments to the Companyʼs cost of capital.

④Dialogue based on voting rights exercise criteria
Regarding the proposals at the General Meeting of Shareholders of
all listed companies, the Company will engage in a dialogue, if
necessary, in accordance with the Companyʼs voting criteria.

At the meeting of its Board of Directors held in October 2022, theCompany reviewed the economic rationality as of the end of March
2022, and conﬁrmed that the ROR of the whole portfolio is above thecost of capital. As for respective companies with an ROR less thanthe cost of capital, the Company works to improve returns from these▶Examples of Dialogues with Investees

companies through discussion regarding their business policies, andContent of the Dialogue

improvement and new proposals of their insurance programs.
*5: ROR (Return on Risk) is an indicator calculated by dividing insurance underwriting profit anddividends, etc., obtained from the owned corporate group concerned by the calculated amount of risk
relating to insurance underwriting and stock price fluctuations calculated based on the Companyʼsrisk management risk model.

ROR(Return On Risk)

Returns

Returns

Risks①
Insurance
underwriting proﬁt①
Insurance
underwriting risk

Proﬁt after deducting
expected loss andexpenses frompremium income

Risks associatedwith insurance
transactions withthe company, suchas accidents andnatural disasters

=
Risks

÷
②
Investment
income②
Operationalrisk

Expected earnings
from holding
shares, such as
dividends andﬂuctuations inmarket value

Risks such as
ﬂuctuations in themarket value ofshares held

●

E

●

●

S
●

G

We asked a leading company that iscommitted to achieving carbon neutrality by
2030 about its concrete initiatives andprogress.

We conﬁrmed internal initiatives and future
policies on CO2 reduction for a company withlittle disclosure on information related to ESG
activities.

For a company that has expressed theircommitment to fair business practices in the
supply chain, we conﬁrmed the details of their
speciﬁc initiatives.

We asked a company listed on the Prime
Market that has an Independent Outside
Director ratio of less than 1/3 about its future
responses.

Responses of Investees
We received a response that in terms of speciﬁc initiatives, in the short term, thecompany is steadily expanding the use of renewable energy and switching power
generation facilities to LNG. In addition, in the long term, carbon oﬀsets are being
considered.
● Subsequently, it was announced that 100% of the electricity used at major manufacturing
sites in Japan had been converted to renewable energy.
●

We received a response to the eﬀect that the company has been promoting CO2 reduction
by setting up a promotion organization within the company, but the company is awarethat from now on, it is necessary to make eﬀorts not only within this organization but
also across the company.
● In the Mid-Term Business Plan, which was subsequently announced, speciﬁc policies for
initiatives such as the renewal of sustainable energy-saving facilities and the use ofrenewable energies were presented.
●

2Strategy and Business Platform Supporting Our Purpose Story*1: Indexed to the end of March 2002 as 100

116

rights exercise criteria.

20%

80

0

scrutinizing proposals for general meetings of shareholders of the

We received a response to the eﬀect that the company would formulate CSR
Procurement Guidelines that take into consideration the human rights of workers involvedin the supply chain and seek cooperation from suppliers.
● Subsequently, the company announced its participation in the worldʼs largest federation ofcompanies promoting social responsibility in global supply chains.
●

We received a response that the company is considering increasing the number of
Outside Directors aiming for a ratio of 1/3 or more.
● The number of outside directors was increased in a subsequent ordinary general meetingof shareholders to meet the Prime Market criteria.
●

For other dialogue case studies and results from the exercising of voting rights, please refer to the Overview of Stewardship Activities(Japanese only) https://www.tokiomarine-nichido.co.jp/company/about/policy/stewardship.html

117

2 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate GovernanceDialogue with Stakeholders
Fundamental Policy

Disclosure and Dialogue

To Be a Good
Company
To be the company
most trusted by thecapital markets

CapitalMarkets

Dialogue with Investors
Dialogue with Institutional Investors
Organizing ﬁnancial results conference calls, IR conferences, andtheme-focused strategy conferences, the Company holds these both
onsite and on the Internet (broadcast live across the globe) and isthereby engaging in dialogue with shareholders and investors aroundthe world.
At the IR conference held in May 2023, Outside Directors, who
serve as representatives of minority shareholders, took the stage andgave objective responses to questions about the Board of Directors
discussions and Tokio Marine Group from the perspective of outside
directors. Participants commented that they had further deepened
their understanding of the Companyʼs management and theopportunity to hear the voices of outside directors was valuable, andthat they would like to see such opportunities oﬀered in the future.
We also continuously hold brieﬁngs focusing on topics of highinterest in capital markets. In ﬁscal 2022, Special IR Meetings were
held in London and New York City, where presentations were madeby the CEOs and executives of major subsidiaries in Europe and theUnited States, and Q&A sessions were held with participants. In
Japan, we also held two special brieﬁngs on overseas subsidiaries,
featuring the CEOs of overseas subsidiaries as speakers,
and received favorable responses.
We have also resumed face-to-face dialogue, including
overseas IR activities in North America, Europe, and Asia.
In ﬁscal 2022, we held dialogues with approximately 530
company investors in Japan and overseas while improving
the quality of these dialogues.
(May 2023 IR conference video)
https://webcast.net-ir.ne.jp/87662305e/index.html

We hold conferences for individual investors every year, featuring theGroup CEO. Since ﬁscal 2022, we have held brieﬁngs in Osaka,
Fukuoka, and Aichi, in addition to Tokyo. The Company also provided
easy-to-understand explanations of the “Groupʼs management strategy”
and “shareholder return,” which are of great interest to individual
investors. These explanations received about 90% participantsatisfaction rate.
Also, in response to requests from many individual investors forstock splits, in October 2022 we implemented a three-way stock split.
We will continue to engage in careful dialogue with investors with theaim of expanding our base of investors and expanding our Tokio
Marine fan base.
(Conference video, Japanese only)
https://webcast.net-ir.ne.jp/8766ko2209/index.html

Feedback
The Company is also making eﬀorts to report the opinions obtained
through dialogue with shareholders and investors widely to
management and other members of the Company, and to reﬂect themin improvement of management. Many of our employees have nocontact with the capital markets in their daily work, but through the IR
activity reporting sessions, they understand the voices of the capital
markets, the evaluation of the Company, and the connection between
their work and the capital markets. This has a positive impact on theirown motivation and growth and, as a result, a virtuous circle ofcompany growth is also created.
In ﬁscal 2022, we also used remote tools to share and interact
with 2,748 Group employees.

In order to promote a deeper understanding of the Companyʼs
management and business, the Group CEO routinely conductspresentations. At the 20th Ordinary General Meeting of Shareholders(June 26, 2023), under the theme of “Business Strategy of Tokio
Marine Group,” the Group CEO gave an easy-to-understandpresentation in recognition of the current environment and on our
strategy for sustainable future growth.
(Presentation video)
https://www.tokiomarinehd.com/en/ir/event/movie/2023̲meeting.mp4

Results of Exercise of Voting Rights
The results of the exercise of voting rights at the 21st Ordinary General Meeting of Shareholders are as follows:
Details of the Resolutions
Item 1: Appropriation of Surplus
Matters regarding the distribution of dividends and its aggregate amountAmount of cash dividend per common share of the Company: 50 yen
Aggregate amount of cash dividends: 99,661,077,600 yen
Item 2: Election of Fifteen (15) Directors
Election of the following ﬁfteen individuals as directors: Tsuyoshi Nagano, Satoru Komiya, Kenji Okada, Yoichi Moriwaki, Yoshinori Ishii, Kiyoshi
Wada, Shinichi Hirose, Takashi Mitachi, Nobuhiro Endo, Shinya Katanozaka, Emi Osono, Kosei Shindo, Robert Alan Feldman, Kichiichiro
Yamamoto, and Haruka Matsuyama
Item 3: Election of One (1) Audit & Supervisory Board Member
Election of the following individual as an Audit & Supervisory Board member: Junko Shimizu▶Results of the Resolutions

Item

Item 1

Number ofAﬃrmative Votes

Number of
Negative Votes

Number ofAbstentions

Approval Ratio (%)

Result of
the Resolution

16,109,839

7,146

707

98.28

Approved

3,995

82.46

Approved

Item 2

Awards Related to Disclosure

Tsuyoshi Nagano

13,516,871

2,596,417

As a result of these eﬀorts, we have received various awards.

Satoru Komiya

13,597,511

2,516,857

2,909

82.95

Approved

Kenji Okada

15,502,469

540,90373,923

94.57

Approved

Yoichi Moriwaki

15,584,931

458,440

73,923

95.08

Approved

Yoshinori Ishii

15,584,846

458,52573,923

95.07

Approved

Kiyoshi Wada

15,585,186

458,185

73,923

95.08

Approved

Shinichi Hirose

15,584,117

459,254

73,923

95.07

Approved

Takashi Mitachi

15,945,563

168,828

2,909

97.28

Approved

Nobuhiro Endo

15,944,453

169,938

2,909

97.27

Approved

Shinya Katanozaka

14,768,606

1,312,390

36,286

90.10

Approved

Emi Osono

15,988,524

125,868

2,909

97.54

Approved

Kosei Shindo

14,742,554

1,338,446

36,286

89.94

Approved

Robert Alan Feldman

16,008,738

103,637

4,925

97.66

Approved

Kichiichiro Yamamoto

15,499,462

543,91173,923

94.55

Approved

Haruka Matsuyama

16,099,657

14,735

2,909

98.22

Approved

16,106,074

8,795

2,909

98.25

Approved

2nd Nikkei Integrated
Report Award 2022
Semi-Grand Prix

Item 3

2
Strategy and Business Platform Supporting Our Purpose Story

Feedback

118

Presentation by the Group CEO
Dialogue with Individual Investors

The Company will strive to enhance trust by providing information to
the capital markets in a timely, fair, and continuous manner while
ensuring transparency and accountability in its disclosures, and topromote understanding of its eﬀorts to increase corporate value
and accurate assessment of the Company. Furthermore, throughconstructive dialogue between management and shareholders andinvestors, the Company will gain an appropriate understanding of
how it is viewed and the state of the capital markets and provide that
understanding and feedback to management and within the Company
to lead to the improvement of management itself and further enhance
corporate value.
In April 2023, we established the Global Communications
Department as an organization responsible for interdepartmental
operations of IR, SR, and PR, with the aim of further strengthening
dialogue with a wide range of stakeholders, including capital markets,
shareholders, the media, and employees.

Management

General Meeting of Shareholders

May 2023 IR conference1192 Strategy and Business Platform Supporting Our Purpose Story | Governance | Corporate Governance(Reference) Status of Dialogue between the Management andShareholders and Investors (FY 2022)
In ﬁscal 2022, we held dialogues with many shareholders and investors through face-to-face meetings, the Internet, and telephone calls.

Activities

Participants

Summary(Reference) Matters of Interest to Shareholders and Investors
Topics of interest to shareholders and investors obtained through dialogue with the capital market are fed back to directors and employees throughmanagement meetings, Board of Directors meetings, and in-house seminars.
These areas of interest are not only utilized in IR strategies including the content of ﬁnancial results, materials for business strategies andintegrated reports, and disclosure methods, but also used to advance Group strategies, such as the formulation of KPI targets and discussions on
capital policy.
●

Financial results
conference calls

208 companies

Explanation of ﬁnancial results by CEO Komiya, CFO Okada, the IR team,and related departments (conference call)

Theme-focused conferences

171 companies

Presentations by the top management of PHLY, TMK, and TMHCC to explain
the businesses of each company (online)

Domestic IR

330 companies

CEO Komiya, CFO Okada, and the IR team conduct one-on-one andgroup meetings (face-to-face, conference call, and online)

Overseas IR

156 companies

CEO Komiya, CFO Okada, and the IR team conduct one-on-one andgroup meetings (face-to-face, online)

Conferences hosted by
securities companies

44 companies

CFO Okada and the IR team conduct one-on-one and group meetings(face-to-face, conference call, and online)

Conferences for individual
investors

521 people

CEO Komiya conducts presentations on the Companyʼs management
strategies (face-to-face meetings in Tokyo, Aichi, Osaka, and Fukuoka, andvideo streaming)‑

Future-oriented, easy-to-understand explanation of our Purpose, vision, andthe strengths and strategies to achieve it, with climate change as a main topic

Integrated Report

Analysis of Feedback from Capital Markets and Internal Feedback
1,622 people

CFO Okada and the IR team share investorsʼ opinions obtained throughIR activities within the company (online and rebroadcasts)
Lectures by outside analyst also held at the same time

In-house seminars

1,126 people

Shareholding Association Seminar by the IR team (co-hosted with the
Human Resources Department of TMNF and held online)

120

●

●

●

●

Respond to the current volatile business environment
Will we be able to respond adequately to the current environment, including rapid inﬂation, interest rate hikes, rising reinsurance
costs due to frequent natural catastrophes, and heightened concerns about geopolitical risks and recession, and continue toboost earnings and corporate value?
Room for growth in future underwriting proﬁt
Given the current high level of earnings growth, will we be able to continue growing the insurance underwriting proﬁt, which
will have a major impact on the stock price valuation of insurance companies? In particular, what is the growth potential of ourdomestic operations in the Japanese market, which is generally viewed as a low-growth market?
Accelerating trends in the sale of business-related equities
Under the circumstances where business-related equities are a factor hindering ROE improvement, what is the speed andfeasibility of our sales of them?
Shareholder returns
What is the angle and accuracy of DPS growth going forward? Opportunities for large-scale M&As are likely to be limited, butwhat is the scope for expanding share buybacks?

2
●

●

●

●

●

Asset
management

Report on IR activities(Board of Directors meetings,
management meetings, in-house
brieﬁng sessions)Management in general

187 companies

Domestic non-life insurance

IR conference

Explanation of management strategies, etc., by CEO Komiya and directors
in charge (face-to-face/online hybrid session)

International
insurance

Other

The number of participants is as of March 31, 2023.

●

●

●

Proﬁt improvement for ﬁre insurance
Amid continued severe conditions such as the intensiﬁcation of natural catastrophes, rising reinsurance costs, and inﬂation,
what are the results and progress of improving earnings (securing proﬁtability higher than that of capital costs) through rate andproduct revisions?
Proﬁtability in auto insurance
Focusing on the frequency of accidents, including the impact of the resumption economic activities following COVID-19, andtrends in price per claim considering inﬂation, etc., what is the current situation and future outlook of automobile insurance
proﬁts, which are currently on a worsening trend, and what is our response policy?
Specialty insurance and expansion of Pre- and Post-incident areas
What are our speciﬁc initiatives, progress relative to plans, and scope for further growth with respect to specialty insurance andexpansion of Pre- and Post-incident areas which are key to growth in our domestic non-life insurance operations?
Improving expense ratio
What is the status of expense reductions, including the use of digitalization, such as the expected eﬀects of the Mirai Project(see p. 94)?

Strategy and Business Platform Supporting Our Purpose Story

For institutional investors and analysts

Distribution to Capital Markets

Path to the realization of our growth story
What is our speciﬁc path (initiatives and timeline) toward the realization of our growth story which aims for world-class EPS
growth and our global peersʼ level of ROE"?

Sustainability of high proﬁt growth
What is the status of rate increases centered on the North American base, which is a growth driver? Can it continue to be a
growth driver? What is the impact of rising loss cost due to inﬂation (economic and social) and rising reinsurance costs?
M&A strategy and pipeline
What is our M&A strategy (appetite and scale), including the current pipeline?
Lessons learned from the COVID-19 outbreak in Taiwan
As overseas operations expand, are events occurring at small, medium, and minor business sites a structural problem?
What are the lessons learned and how do we address them?

Status of DFG credit investment
What are the risks and sustainability of DFGʼs high investment performance in light of the rapid rise in interest rates and thepossibility of a future recession in the U.S. economy?

121

2 Strategy and Business Platform Supporting Our Purpose Story | Corporate Governance | Internal Control System

Internal Control System

ComplianceFundamental Policy

The Company has formulated the “Tokio Marine Group Basic Policies forhave established various internal and external hotlines (whistleblowing

Compliance” and the “Tokio Marine Group Code of Conduct,” and ahotlines) to accept reports and consultations from executives and employees

compliance system is in place Group-wide based on this framework. Also,of Group companies. As regards the number of reports and consultations

the Company has built a structure to ensure Group-wide compliance byreceived by the Group in ﬁscal 2022, there were 316 cases (110%periodically monitoring the status of compliance within the Group; receiving

compared with ﬁscal 2021). We ensure that these reports and consultations

The Company has formulated “Basic Policies for Internal Controls.” InInternal Control Committee deliberates on the results of this monitoring,

reports from Group companies on important matters; discussing these

are appropriately investigated and responded to, leading to the earlyaccordance with these policies, the Company has established an internal

and the Board of Directors conﬁrms the details of these deliberations.

matters among the Board of Directors, the Management Meeting, and thedetection of problems and the implementation of corrective and recurrence

control system for the entire Tokio Marine Group that encompasses

Moreover, the Company continually strengthens and improves its internalInternal Control Committee; and providing guidance and advice about theprevention measures.

structures for management control, compliance, risk management, andcontrol system considering the results of this monitoring. The Internal

activities of Group companies when necessary.

internal auditing of Group companies. In addition, the Company monitors

Audit Section maintains close coordination with Audit & Supervisory

the status and practical application of its internal control system. The

Board Members to ensure the eﬀectiveness of their audits.

compliance issues through the organizationʼs usual reporting channels, we

systems for responding to whistleblowers based on the Amended
Whistleblower Protection Act, which came into eﬀect on June 1, 2022.

▶Compliance System▶Internal Control System

Tokio Marine Holdings

Tokio Marine Holdings

Coordination

Also, each Group company in Japan is putting in place the necessary

In order to prepare for cases in which it is not appropriate to report

Audit & Supervisory
Board Members

Audit & Supervisory Board Members
Board of Directors

Audit(Directors)(Audit & Supervisory Board)

Board of Directors

Internal Control Committee

Management Meeting(Audit & Supervisory Board)

Financial
Auditors

Internal Control
Audit
Accounting
Audit

Legal and Compliance Department, Individual Business Divisions
ReportAudit

P PlanA

Coordination

D Do

D

Compliance Committee, etc. (tailored to actual conditions at each company)
Compliance Department

C Check
A Act

CInternal Audit

Group Companies

Board of Directors(Audit & Supervisory Board)P

Director in Chargeof Internal Controls

Internal Audit Section

Reporting, etc.

Audit & Supervisory Board Members

Internal Control
Committee

Evaluating theappropriateness ofan accounting audit

Indication of basic policies, guidance,
administration, monitoring

Management Meeting

Respective Sections

Crisis Management System

Basic Policies for Internal Controls
Compliance

CustomerProtection

Information Response to
Risk
Antisocial
Security
Management
ForcesManagement

Internal
Audit

Auditor s
Audit

Group Companies
Domestic
Insurance Business

Domestic Life
Insurance Business

International
Insurance Business

Finance andOther Businesses

P

P

P

P

D
C

122

A

D
C

A

D
C

A

D
C

working to respond quickly and appropriately for recovery andetc., to minimize economic losses and other impacts incurred in an

business continuity in the event of an emergency.

emergency and immediately restore ordinary business operations.
Also, we provide support, instructions, and guidance to GroupIn addition, we conduct simulated trainings for natural
catastrophes, cyberattacks, and other events that could become ancompanies, and Group companies report to, communicate, and consult

emergency, in order to enhance our practical and applied skills inwith us. In this way, Group companies are also developing crisis

emergencies.

management systems and emergency action in peacetime and areManagement, Guidance, Adjustments, Monitoring, Reporting, othersA

We have established a crisis management system, emergency action,2
Strategy and Business Platform Supporting Our Purpose StoryOﬃce of Audit &Supervisory Board

Internal/External Audits, etc.
Regarding internal audits, there is a statutory audit conducted by Audit &the Companies Act and the Financial Instruments and Exchange Act andSupervisory Board Members in accordance with the Companies Act andan internal control audit based on the Financial Instruments and Exchange

an internal audit performed by the Internal Audit Section. The internal

Act conducted by PricewaterhouseCoopers Aarata.

audit is performed based on the “Internal Auditing Rules” that have been
approved by the Board of Directors.

Tokio Marine Holdings is also subject to inspections by the Financial
Services Agency of Japan pursuant to the Insurance Business Law.

Regarding external audits, there is an accounting audit based on1232 Strategy and Business Platform Supporting Our Purpose Story | Corporate Governance | Internal Control System
Information Security and Cybersecurity Management▶(Reference) Enhancement of ERM Management at Small to Medium-Sized Entities and Minority
Investments in Light of Losses from the COVID-19 Outbreak in Taiwan

Information Security Management
Tokio Marine recognizes the importance of personal information

Management,” each company establishes departments to overseeand conﬁdential information (“information assets”). To ensure theinformation security management and formulate policies and regulations.

In ﬁscal 2022, our Taiwanese JV suﬀered a major loss due to a market event caused by COVID-19 insurance. Based on

appropriateness and trustworthiness of Tokio Marine Groupʼs operations,

To protect information assets from various information leakage risks,

we have formulated the “Tokio Marine Group Policies for Information

including leak, loss, and unauthorized use, we ensure the conﬁdentiality ofthis experience, in order to prevent such a situation from occurring in the future, we will strengthen Tokio Marine Holdings

Security Management.”

information assets and manage them so that they can be used whenWith regard to the revised Personal Information Protection Law, which

support, including for small to medium-sized entities and minority investments, and strive to enhance ERM on a global
basis. In this way, we will balance growth and risk management at a high level.

necessary. Furthermore, the Company regularly monitors the information

came into eﬀect on April 1, 2022, we are taking necessary measures,

security management of Group companies, setting up structures andincluding the revision of our privacy policy.

providing information when necessary.

Based on the “Tokio Marine Group Policies for Information Security

Group-Based Initiatives

Cybersecurity Management
Recognizing cybersecurity as one of the important management issues,

Under the Tokio Marine Group CSIRT*2, the entire Group has also been●

Established the Chief Audit Oﬃcer position as a new C-suite position (April 2023)

with the Group Chief Information Security Oﬃcer (CISO) as the supervisor

divided into three regions, North America, Europe, and Japan/Asia, and we●

Appointed a business executive with governance responsibility for the overseas business (April 2023)

under the leadership of management, the Group companies in Japan andare consolidating our organization and standardizing our technologies and●overseas are unitedly maintaining a management system. Reports andprocesses at a high level. Each region carries out regular countermeasures

discussions are also held twice a year by the Board of Directors, wheresuch as employee training, including security monitoring on a daily basis,

outside directors with IT expertise also participate.

cyber drills (conducted multiple times a year mainly for relevant parties),
targeted e-mail drills (conducted multiple times a year for all employees),

standard frameworks and standard architectures such as ISO 27001*1 andetc. Also, in the event of a cyber incident, each region strives to establish

NIST SP800. The Tokio Marine Groupʼs basic ideas and compliance

an eﬃcient and eﬀective system by identifying the scope of the impact,

standards are determined from the perspective of people, processes, andand promptly implementing initial responses, recovery, and recurrencetechnologies, and include constant monitoring, log analyses, periodic

prevention measures to prevent the spread of damage while cooperating

vulnerability-scanning, penetration tests, and risk assessments.

with other regions.

Furthermore, in order to prevent, detect, and respond to cyberattacks that

A Group-wide committee made up of security experts gathers knowledge

are becoming more sophisticated year by year, we use the PDCA cycle tofrom around the world and promotes advanced security measures toformulate and execute improvement plans in response to issues identiﬁedsupport our customers and society in times of need.

in this process, while taking into account the amount of risk at each Group
company, intelligence gained from inside and outside the Group, and theapplication of new technologies.

Related departments

Management Meeting

Outside organization

Legal and ComplianceDepartment

Group CISO

Financial Services
ISAC*3Global Communications
Department
Risk Management
Department
International Business
Development
Department, etc.

*3: General Incorporated Association Financial Services
ISAC Japan*4: Financial Services ISAC
*5: General Incorporated Association Japan Computer
Emergency Response Team Coordination Center*6: General Incorporated Association Nippon CSIRT
Association*7: Independent Administrative Agency
Information-technology Promotion Agency, Japan

124●

Enhance entities with eﬀective measures corresponding to their maturity and independence(Example) Taiwan
Became the majority shareholder
Appointed Chair of the Board and CRO from TMHD
Newly appointed President from outside the Company (from June 2023)*1: Tokio Marine&Nichido Systems, the core systems company of the Tokio Marine Group, acquired
ISO27001 certification*2: Abbreviation of Computer Security Incident Response Team

Board of Directors

Corporate Planning
Department

Enhancement of Individual Entities(Example) Minority investments
Conﬁrmed concerns that could lead to capital events (mainly management for underwriting risk aggregation, and new productapproval process, etc.) and prepared such action plans

2
Strategy and Business Platform Supporting Our Purpose Story

Speciﬁcally, we are promoting countermeasures by adopting global

Carried out to send top management messages relative to cultivating a Group-wide risk culture, enhancing risk sensitivity,
strengthening training, and so on

FS-ISAC*4

TMHD (Group CSIRT)JPCERT/CC*5
NCA*6

GITC Security
Subcommittee

Domestic CSIRT
Meetings, etc.

North America

Europe,Middle East

Japan and Asia

Group
Group
companies companies

Group
Group
companies companies

Group
Group
companies companies

IPA*7

etc.

125

2 Strategy and Business Platform Supporting Our Purpose Story | Corporate Governance | Internal Control System▶(Reference) Regarding Premium Adjustment in Tokio Marine & Nichido Fire Insurance(June 2023)
An insurance premium adjustment with another non-life insurance company occurred in Tokio Marine & Nichido Fire
Insurance and the misconduct was reported to the Financial Services Agency. After the incident was discovered, externallawyers were hired to conduct an investigation. News releases were issued on June 20 and August 4, 2023. We willcontinue to analyze the causes and make eﬀorts to prevent recurrence of such cases.

▶(Reference) Tokio Marine & Nichido Fire Insuranceʼs Response to Customers Regarding
Fraudulent Insurance Claims by BIGMOTOR Co., Ltd. (August 2023)
Tokio Marine & Nichido Fire Insurance Co., Ltd., issued a news release on August 1, 2023, in connection with fraudulent insurance
claims by the sheet metal division of BIGMOTOR Co., Ltd.* We will place the highest priority on the recovery of the damage
suﬀered by customers due to this incident, etc., and will take measures to eliminate the concerns of customers who have had theircars repaired by BIGMOTOR Co., Ltd., and to recover the damage to customers who have received unauthorized repairs.
Three companies: BIGMOTOR Co., Ltd., BM Holdings Co., Ltd., and BM Hanaten Co., Ltd.

June 20, 2023
Tokio Marine & Nichido Fire Insurance Co., Ltd.

Regarding the series of reports on Tokio Marine & Nichido Fire Insurance

1. Basic Policies of Response by Tokio Marine & Nichido Fire Insurance Co., Ltd.
(hereinafter referred to as TMNF ) regarding the Incident
We understand that the recent fraudulent insurance claims by the sheet metal division of
BIGMOTOR Co., Ltd. betrayed the relationship of trust between insurance companies and the auto
repair shop and defrauded insurance money, and it is truly regrettable. We sincerely apologize forthe inconvenience and concern we have caused to customers and related parties in being unable toprevent such fraudulent claims, for introducing customers who were involved in accidents to
BIGMOTOR Co., Ltd.ʼs auto repair shop for the repair of their important vehicles, and for including
BIGMOTOR Co., Ltd. as an insurance agent for TMNF.
● We have positioned the recovery of the damage of the aﬀected customers as our top priority. We arecontinuing to strongly urge BIGMOTOR Co., Ltd. to take the necessary measures to recover thedamage, but we do not yet have a full picture of the situation.
● Based on the above, TMNF will take the following actions for customers who have suﬀered or may
have suﬀered damage from unauthorized repairs by BIGMOTOR Co., Ltd. that led to fraudulent
claims, to eliminate any concerns about the results of the repairs, and to recover the damages ofcustomers who have actually received unauthorized repairs.
●

As reported in a series of media reports, Tokio Marine & Nichido Fire Insurance Co., Ltd.
(President: Shinichi Hirose; hereinafter “TMNF”) has ﬁled a misconduct report with the Financial
Services Agency regarding an incident in which TMNF conducted premium adjustments withother non-life insurance companies under a coinsurance contract concluded between a customer(one corporation) and multiple non-life insurance companies including TMNF, and received areport submission order from the Financial Services Agency regarding this incident.
We sincerely apologize for the inconvenience and concern caused to our customers andrelated parties due to the inappropriate behavior of our employees. We will respond sincerely tothe requests of the report submission order and strive to prevent recurrence of such cases.

1. Outline of the case

2. TMNFʼs response to customers who have suﬀered or may have suﬀeredunauthorized repairs

2. Background of the discovery
As stated in 1. Outline of the case above, on December 20 of the previous year, the customer had
doubts about the level of insurance premiums of each non-life insurance company, and conﬁrmed with
TMNFʼs sales department in charge whether there was any inappropriate act which made us aware of
the case. Subsequently, we engaged external lawyers to conduct data analysis (forensic investigation)of e-mails, mobile phone records, etc., in order to conﬁrm facts with persons in charge of the contract
and related parties in TMNF and investigate if there are any other cases. The results were reported to
the FSA on March 24 of the current year.
In addition, although this case did not result in underwriting with an unreasonable premium causedby the premium adjustment, we will also report it to the Fair-Trade Commission.

3. Future initiatives such as measures to prevent recurrence
In response to this incident, we have established a Special Investigation Committee, which has
appointed several outside lawyers, and are working to conﬁrm the facts. At this point in time, we are
not aware of any other similar cases, but we take it very seriously that any inappropriatenessconcerning the Anti-monopoly Act has occurred, and we will continue to investigate whether there are
any similar cases within the company, and if cases of inappropriateness are discovered, we will
respond strictly.
In addition, TMNF will endeavor to prevent such incidents by analyzing the cause of the incident
and formulating and steadily implementing measures to prevent recurrence through governance andthorough implementation of employeesʼ basic behaviors based on the causes.

(1) Establishment of a dedicated call center for customers
In response to this incident, we set up a dedicated customer contact (call center) on July 28 inconsideration of the concerns about customersʼ vehicles and the complaints we have received
about this incident.
(2) Contacting customers who were introduced to BIGMOTOR Co., Ltd. s auto repair shops throughTMNF
We will contact all customers who had their vehicles that were involved in accidents repaired at
BIGMOTOR Co., Ltd.ʼs auto repair shops sequentially in writing. It is expected that it will take sometime to clarify the entire picture of the fraudulent insurance claim by BIGMOTOR Co., Ltd. and thedamage to individual customers, etc. Until then, we will consider measures so that customers, etc.,
who feel worried or anxious can drive their cars with peace of mind (for example, help to conﬁrm
the safety of the car, explanation of the repair details, etc.).
(3) Response to the unauthorized repair cases that have already been revealed by the Special
Investigation Committee of BIGMOTOR Co., Ltd.
At the present time, no information has been disclosed regarding cases of unauthorized repairs
pertaining to individual customers that have already been identiﬁed by the investigation conductedby the Special Investigation Committee established by BIGMOTOR Co., Ltd. Therefore, in order to
expedite the recovery of our customersʼ damage, we strongly request BIGMOTOR Co., Ltd. and theSpecial Investigation Committee to disclose information on such cases, especially at an earlystage, and we will sequentially contact our customers as soon as the information is disclosed.
(4) Contacting customers to conﬁrm the auto insurance contract grade for those who suﬀereddamage from unauthorized repairs
Customers who would not have used the auto insurance for repair if BIGMOTOR Co., Ltd. had notmade a padded claim will be contacted after we have conﬁrmed the net diﬀerence between the“insurance premiums if no claims were made” and the “insurance premiums actually paid” as wellas the “correct amount for repair” when a padded claim is found. We will take steps to correct the
auto insurance grade for customers who think, based on the information we provide, that theywould not have needed to make an insurance claim had the correct repairs had been made.

2
Strategy and Business Platform Supporting Our Purpose Story

In this case, a coinsurance contract between a customer (one corporation) and multiple non-life
insurance companies, including TMNF, involved an “adjustment of insurance premiums” led by our
employees.
The coinsurance contract was a non-life insurance contract that was bid on by multiple non-life
insurance companies at the customerʼs request. However, the customer had doubts about theinsurance premium levels oﬀered by each non-life insurance company at the time of bidding, so thebids were redone, and the bidding was conducted again. Therefore, in the end, the insurance contract
was not underwritten with an unreasonable premium caused by a premium adjustment. However, inlight of the circumstances, TMNF submitted a report of misconduct to the FSA as inappropriate
business conduct, and subsequently received a report submission order from the FSA under the
Insurance Business Act.

-

126

For more information, please refer to the news releases dated June 20 and August 4, 2023. (Japanese only)

For details, please refer to the news release dated August 1, 2023. (Japanese only)

https://www.tokiomarine-nichido.co.jp/company/release/pdf/230620̲01.pdf
https://www.tokiomarine-nichido.co.jp/company/release/pdf/230804̲01.pdf

https://www.tokiomarine-nichido.co.jp/company/release/pdf/230801̲01.pdf

127

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Financial/Non-Financial Highlights

Eight Material Issues (Materiality) ★: Priority Issues (See pp. 64, 65)

Non-Financial Highlights

Financial Highlights
Promoting risk diversiﬁcation andgenerating stable proﬁts

Pursuit of higher capital eﬃciency

As a result of diversifying risk globally and achieving sustainablegrowth in both domestic and overseas businesses with low
correlations, we have been able to generate stable proﬁts even in
the past few years of major natural catastrophes and COVID-19.
(Please refer to p. 57 for the progress of the current MTP.)

We are aiming to improve capital eﬃciency by revising ourbusiness portfolio, strengthening control of natural catastropherisks, and accelerating the sales of business-related equities in
addition to our world-class EPS growth. (Please refer to p. 57 forthe progress of the current MTP.)■Adjusted Net Income*1■Adjusted ROE*2

700

Impacts of COVID-19
and natural catastrophes(billions of JPY)

Impact of natural
catastrophes with damage
greatly above average

600
500

351.9

400

406.7

670.0

578.3

Impacts of
COVID-19

341.4

280.9 286.7

11.0

12.0

336.1

8.0
6.0

8.6

9.1

10.0

Impacts of
COVID-19

8.2

7.2

3
Cost of capital 7%*

Combat climate change

Impacts of COVID-19
and natural catastrophes

Impact of natural
catastrophes with damage
greatly above average

14.0

200

17.1

14.4

9.7

2015

2016

2017

2018

2019

2020

2021

2022

*1: Indicator used for business plans and shareholder return;please see p. 156 for details.

2023
Projection

2015

2016

2017

2018

2019

2020

2021

2022

2023
Projection

Excluding the impact of the divestment of reinsurance subsidiaries
in the amount of approximately 130 billion yen in ﬁscal 2019 and
COVID-19 in ﬁscal 2020, insurance premiums are steadily increasing
due to organic growth and the disciplined execution of M&A.

The dividend per share for ﬁscal 2023 is expected to increase by 21
yen to 121 yen due to the expansion of dividend resources in line with
proﬁt growth and an increase in the dividend payout ratio (from 48.5%
at the beginning of 2022 to 50.0% at the beginning of 2023).

■Net Premiums Written +Life Insurance Premiums■Dividend per Share*4/Dividend Yield(billions of JPY)

5,000

3,737.2

4,000

Impact of the divestment ofreinsurance subsidiaries

4,384.8

4,517.7 4,640.9 4,580.2 4,561.5

4,884.1

5,541.6 5,620.0

121

120

47

3,000

60

37

2,000

30

2.9

3.0

2015

2016

0

0

2015

2016

2017

2018

2019

2020

2021

2022

2023
Projection

Shareholder value growing with TSR
greatly outperforming market

(％)

(JPY)

90

1,000

3.4

3.4

2017

2018

Dividend per share (left scale)

67

63

60

53

85

100

3.8

3.8

3.6

3.9

2019

2020

2021

2022

Dividend yield (right scale)

10.0

8.0

186
100
0

2023
Projection

2016/
4/1

2017/
4/1

Tokio Marine Holdings

2018/
4/1

2019/
4/1

2020/
4/1

TOPIX (Insurance)

2021/
4/1

2022/
4/1

2023/
3/31

MSCI World Insurance

Source: Bloomberg*5 Stock prices on April 1, 2015 are set at an index value of 100.

11.5

11.2

11.1

13.4

13.0

12.4
9.0

8.3

8.0*2

9.3

0

2013

2014

CO₂ Emissions

2015

2016

2017

2018

2019

2020

2021

2022

4.0
3.0

42

Ordinance-designatedcities13

Other cities

76

Support people s healthy and enriching lives

Promote and support diversity and inclusion

Selected for inclusion in the Health & Productivity
Stock Selection program for eight years runningGroup of highly motivated employees

We continue to work on health and productivity management
across the Group, knowing that this forms an importantelement of our corporate philosophy to be a “Good Company.”

Scores on the Culture & Values Survey conducted at Group companies insideand outside of Japan are positive. We are now working on further improvements
at the Group level with the involvement of Tokio Marine Holdings.

2.8
trillion

5.1
trillion

3.8
3.6
3.5 trillion 3.4
3.5
trillion trillion
trillion trillion(Score)Tokio Marine

2018/
3/31

Japanese P&C 1

2019/
3/31

2020/
3/31

2021/
3/31

0

Japanese P&C 2

4.3

4.3

4.3

2017

2018

2019

2020

2021

2022

*4: Score of 5 (total for domestic and overseas Group companies and HD)

Improve disaster resilience

Protect the natural environment

Provide education to children

Eliminating the gender gap

Active participation in social contribution activities

We are actively working to eliminate the gender gap aspart of our growth strategy. We have set qualitative andquantitative targets to promote such initiatives to further
expand the scope of our activities. (See p. 93 for details.)

We are also actively holding Green and Disaster Prevention
lessons as part of eﬀorts to provide education to children.

11.2%

30%

2023/
3/31

4.3

1

■Ratio of Women in Leadership Positions

2022/
3/31

4.1

2

(2030 targets)■Cumulative total of participants*51500Group basis inside and outsideof Japan (as of April 2023)

Japan (TMNF)(as of April 2023)(Thousands)

100

50

2017/
3/31

4.1

3

31.6%

2016/
3/31

2

■Group Attachment*4

Promote and support diversity and inclusion

4.8
trillion(trillions of JPY)

*3 Collaboration agreements on regional revitalization including BCP formulation
assistance, etc. As of the end of February 2023.

CO₂ Absorption/Fixation/Reduction

1.0
0Prefectures*1 Scope 1 [direct emissions] + Scope 2 [indirect emissions] + Scope 3 [other indirectemissions, Categories 1, 3, 5, and 6] based on the GHG Protocol standards*2 CO₂ emissions for FY2022 reﬂect a CO₂ reduction eﬀect of 14,000 tons from buying green power

0

2.0
2015/
4/1

11.9

2.0

■TSR*

187

13.3

4

■Market Capitalization

200

8.8

11.3 12.2
10.1 9.8

15.3

4.0

As a result of evaluations from the capital markets, Tokio Marine
Groupʼs PBR has exceeded 1 and its market capitalization doubled in
the past few years, greatly exceeding other insurance groups in Japan.
(Please refer to p. 49 for PBR.)

228

16.4

16.3

*4: Stock split implemented in October 2022. Figures for ﬁscal 2021 and before arerecalculated based on the stock split.

5.0■Cumulative Total of Collaboration Agreements with
Local Governments*3

5

Total shareholder return (TSR), an indicator of the capital
returns achieved after reinvestment of dividends, is greatly
outperforming that of peers in Japan and overseas.

300

Targets toward ﬁscal 2030
❶CO₂ emissions associated with our own business activities reduction target*1:
reduce by 60% compared with ﬁscal 2015
❷Renewable energy introduction rate target: 100% at main business locations❸Company-owned vehicles: switch all company-owned vehicles of TMNF and TMNL to EVs

6.0

Steady growth in corporate value

5

We are contributing to building a disaster-resilient society
while working closely with local governments.

Strategy and Business Platform Supporting Our Purpose Story

12 consecutive years of higher dividends projected

6,000

Tokio Marine Group has achieved carbon neutrality in its
business activities for 10 years running since ﬁscal 2013
through its mangrove planting activities.

10*2: Indicator used for business plans and shareholder return; please see p. 156 for details.
*3: Return expected by investors; calculated using the capital asset pricing model (CAPM).

150

Contributing to local communities
through assistance for BCP formulation

15

Steady expansion of the top-line

Impacts of COVID-19

Improve disaster resilience

50Facilitate and foster innovation through digitalization
Protect the natural environment
Provide education to children
Disclose highly transparent and timely information

Achieved carbon neutrality for 10 years runningand established climate change action targets

20

2.0

0

Protect the natural environment(10,000 tons)

11.1

4.0

100

128

18.0

(%)

16.0

444.0

300

Combat climate change (★)
Improve disaster resilience (★)
Support people s healthy and enriching lives (★)
Promote and support diversity and inclusion (★)

59
12

66
16

47

50

73

83

22

30

51

53

122

106

112

40

49

55

64

55

57

57

58

95

136
77

59

2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3

Number of Disaster Prevention Lesson participants*5 Number of participants is an approximation.

Number of Green Lesson participants129

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Global Insurance Market
Reference:

Global Insurance Market
Further proﬁt growth in the United States, which has the worldʼs largest
insurance market, and stable growth in Japan, which has the worldʼsthird-largest market, are the key.

Non-life premiums grow in tandem with economic growth in developed markets. However, in emerging markets, which have
low levels of insurance penetration and upward trends in population, insurance premiums show growth that exceeds
economic growth. Note that increases in life premiums are greatly impacted by such factors as interest rates, market
regulations, and taxation systems, so they are not necessarily linked to economic growth.

The global insurance market in 2021 was worth 6.86 trillion dollars, with the United States in ﬁrst place
for both life and non-life insurance.
Japan was in third place with the sixth largest non-life insurance and the third largest life insurance markets.

Growth in Non-Life and Life Premiums, and Growth in Real GDP (Seven-Year Moving Average)

Ten Largest Insurance Markets in Direct Premiums Written for Life Insurance and Non-Life Insurance in 2021
Ranking

CountryLife premiums

Non-life premiums

1

United States609,642

2

China

3
4

In addition to stable growth in developed markets,
capturing booming emerging markets is the key.

▶Developed Markets(millions of USD)

Total premiums
AmountChange against 2020 (%)

Share of the global
total (%)

2,109,057

2,718,699

8.1

39.6

365,456

300,672

696,128

6.1

10.1

Japan

295,850

107,741

403,592-2.6

5.9

United Kingdom284,284

114,858

399,142

17.0

5.8

5

France185,445

110,935

296,380

24.0

6Germany

109,961

165,818

275,779

6.0

7South Korea

101,866

91,142

193,0088

Italy

146,001

46,480

192,4819

Canada64,917

96,372

161,289

15.8

2.4

10

India

96,67930,296

126,947

13.5

1.9▶Emerging Markets

14%

14%

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

4.3

2%

2%

4.0

0%

0%

1.5

2.8

-2%

11.5

2.8

1970

1980

1990

2000

2010

-2%

1970

1980

Life insurance

1990

Non-life insurance

2000

Real GDP

2010

Source: Swiss Re Institute, sigma No. 3, 2018

Source: Swiss Re Institute, sigma No. 4, 2022

2

Life insurance
Non-life insurance

RegionPremium(Share)Note: Circle size gives avisual idea of thesize of premiums▶Insurance Penetration through 1960‒2017(Ratio of Insurance Premiums to GDP)

▶Insurance Penetration through 1960‒2017(Ratio of Insurance Premiums to GDP)
Developed Europe, Middle East, and Africa (EMEA)

North America
8%Emerging EMEA

$1,772 billion

North America(25.8％)

8%

China$696 billion

6%6%$2,879 billion(10.1％)(42.0％)

4%(of which, Japan)$403 billion

4%2%(5.9％)

02%(of which, Africa)
1960

2017

$126 billion(1.1％)(1.9％)

Emerging Asia
(excluding China)$229 billion(of which, Brazil)$62 billion(3.3％)(0.9％)

Emerging EMEA

2.5%

2.0%

2.0%

1.5%

1.5%

1.0%

1.0%

0.5%

0.5%

0

130

1960

Developed
Asia-Paciﬁc

Emerging Asia

2.5%

2017

0

2017

(of which, India)$74 billion

0

1960

Strategy and Business Platform Supporting Our Purpose Story

Life and Non-Life Insurance Premiums in 2021 and Penetration through 1960‒2017 (Ratio of Insurance Premiums to GDP)

$911 billion

Developed Asia-PaciﬁcCentral and South America$151 billion

8%(2.2％)(13.3％)

6%

Central and South America
2.5%
2.0%
1.5%
1.0%
0.5%

4%

0

1960

2017

2%

1960

2017

0

1960

2017
Source: Swiss Re Institute, sigma No. 4, 2022, and sigma No. 3, 2018131

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Potential of the Japanese Non-Life Insurance Market/Progress of Current Mid-Term Business Plan by Business Unit

Potential of the Japanese Non-Life Insurance Market

Progress of Current Mid-Term Business Plan by Business Unit

The Japanese non-life insurance market is steadily growing, and proﬁtability is stable over the long term. Although there are various

Looking at individual business units under the current Mid-TermBusiness Plan (MTP), we aim to achieve a CAGR of +6% or more indomestic non-life insurance through improvements in the proﬁtabilityof ﬁre insurance together with the growth of specialty insurance.
Outside Japan, we aim to achieve a CAGR of +9% or more throughimprovements in underwriting proﬁt fueled by rate increases and risk
selection, growth in emerging countries, and investment income
expansion. In the domestic life insurance business, plans are in place tosecure an annual stream of stable proﬁts around the 50 billion yen level.

factors for deterioration in earnings such as the intensiﬁcation of natural catastrophes and inﬂation, we will continue to achieve
stable C/R through prompt and proactive revisions of premiums and products.

▶Growth of Japanʼs Non-Life Insurance Market
Direct Premiums Written (including deposit premiums from policyholders)*1(billions of JPY)

FY2021 9,670.9 billion yen

FY2020 Results

10,0009,000

8,192.3

8,568.8 8,821.7(normalized*4,
actual in parentheses)
Starting numbers for thecurrent medium-term
plan

9,671.4 9,627.3 9,670.9
9,063.7 9,010.1 9,279.0 9,414.0
Adjusted net
income8,000

Road Map for Achieving
the Mid-Term Business Plan
See pp. 134‒147
for details of each measure

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source: The General Insurance Association of Japan, “Fact Book 2022,”
based on member companies of the General Insurance Association+3‒7%*5billion yen(399.6 billion yen)(around 480-540
billion yen)

Auto proﬁt-10 billion yen● Fire proﬁt+45 billion yen
138.5 billion yen ● Specialty(175.3 billion yen) insurance growth+10 billion yen● Other(e.g., digital
investment)▶Revenue Stability of the Japanese Non-Life Insurance Market(releasedin May 2021)

FY2023
Projection

CAGR

+15%
670 billion yen

FY2022 Results(normalized,
actual in parentheses)

617.1

billion yen(444 billion yen)p. 134
p. 135
p. 136

p. 137CAGR+6％ or more(around 160
billion yen
or more)CAGR*6+5％(insurance
underwriting
proﬁt +10%)
161 billion yen

144.6

billion yen(109.4 billion yen)110%

North America(10-year average)

100%

98.9%*3

Japan (10-year average)

95.7%*490%

TMNF (10-year average)

Domestic
Life
Insurance*2

International
Insurance

Fewer domestic natural
catastrophes and revisions (-2.5 percentage points
better than theof premiums and products
industry average)
for fire insurance
contributed

80%

Other
Businesses*3

70%
2012

2013

2014

2015

*2: Based on W/P for all items*3: Source: S&P Capital IQ*4: Source: The General Insurance Association of Japan website

2016

2017

2018

2019

2020

52.7 billion yen

p.138(52.7 billion yen)

Secure astable stream of
proﬁts around the50

39billion yen

billion yen level

Developed market
underwriting+12 billion yen● Pure growth180.1 billion yen +13 billion yen(91.6 billion yen) ●Emerging market
strategies+15 billion yen● Investment
●

93.2%

Contributions mainly from revisionsof premiums and products for auto insurance

132

Business unit proﬁts, etc.

Combined Ratio (C/R)*2

74.7 billion yen(80 billion yen)

44.9

billion yen(36.4 billion yen)p. 139p. 144
p. 145

CAGR

around +9％(around 230
billion yen)

CAGR

+28％

376 billion yen

2Strategy and Business Platform Supporting Our Purpose Story

Domestic
Non-Life
Insurance*1*1: Indicates revenue from direct insurance contracts with policyholders. Direct premiums written-refunds (excluding maturity refunds to policyholders)

FY2023 Plan

CAGR

446

●

0

In ﬁscal 2023, the ﬁnal year of the current MTP, we expect
overseas proﬁt growth to signiﬁcantly exceed that of the plan and lead
the Group as a whole. As for domestic non-life insurance, while theimprovement of proﬁtability in ﬁre insurance is making steady progress,
the deterioration of loss cost in auto insurance and the hardeningof the reinsurance market, among other factors, mean results areprojected to be as planned. In addition, the domestic life insurance
business is expected to fall short of the plan due to an increase in theﬁrst-year burden associated with top-line growth.

355.2

billion yen(218.6 billion yen)p. 146

Around 70
billion yen

94billion yen

72.4

billion yen(79.6 billion yen)2021

*1: Domestic non-life insurance = TMNF
*2: Domestic life insurance = TMNL
*3: Other domestic non-life insurance, ﬁnancial and other businesses, andsales of business-related equities not included in business unit proﬁt, etc.

*4: Starting numbers for the current MTP (the impact of natural catastrophes is assumed to come in at aroundthe annual average, and the impact of COVID-19 and FX rate ﬂuctuations is deducted).
*5: As outlined at an IR presentation in May 2021, organic growth was projected to come in at 5% or higher.
*6: Compared with FY2020
133

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
Road Map for Achieving the Current Mid-Term Business Plan

Road Map for Achieving the Current Mid-Term Business Plan

Domestic
non-life insurance

Domestic
non-life insurance

Maintaining Auto Insurance Proﬁt

Improving Fire Insurance Earnings▶Current MTP Targets▶Current MTP Targets

Under the current MTP, plans are in place to secure top-line growth and oﬀset the impact of rate decreases in January 2022
through such initiatives as expanded coverage. In this manner, steps are being taken to limit the decline in proﬁt to around -10
billion yen compared with ﬁscal 2020 and maintain a stable stream of proﬁts.

Aim to improve proﬁtability by more than 45 billion yen through rate revision etc. for the current MTP targets.

▶Key Measures

By implementing the following measures, focusing on rate and product revisions, we aim to achieve the targets of the MTP and
secure proﬁtability equivalent to that of capital costs (RoR >7%) by ﬁscal 2026.

Maintain the top and bottom lines by implementing the following measures.

Measure▶Key Measures

MeasureApproach(1) Increase market share (M/S)(2) Generate sustainable and stableearnings

Rate and product revisions (conducted in October 2019, January 2021,
October 2022, and January 2023)● Strengthen disciplined underwriting● Strengthen disaster prevention, mitigation, and early recovery eﬀorts● Ensure appropriate reinsurance arrangements● Improve business eﬃciency, etc.
●

Expand coverage through product revisions● Strengthen digital contact points for customers, establish early contacts, etc.
●

Thorough improvementof proﬁtability

Push forward initiatives to improve proﬁtability through Drive Agent Personal(DAP)*1 and other proposals● Flexibly review premium levels considering loss cost, etc.
●

▶Progress Status

Approach▶Progress Status
Through the implementation of key measures, we expect to achieve +60.1 billion yen in ﬁscal 2023 (vs. ﬁscal 2020) compared withthe target of +45 billion yen in the current MTP.
● We will continue to monitor the impact of natural catastrophes, inﬂation, and rising reinsurance costs, and, depending on thesituation, we will steadily implement measures such as additional rate and product revisions and strengthening of results
measures.
●(billions of JPY)

2，
000

L/R*2

-1.0 pt(vs. 2020)-0.1 pt(vs. 2020)+2.3 pt

Approximately+1.5 pt(vs. 2020)(vs. 2020)

1，
600

60%

Top line*3+0.3%(vs. 2020)+0.2%(vs. 2020)+1.0%(vs. 2020)

80%

50%

800

40%

50%

400

30%

0

2020

Impact on profits
from change in L/R*2,4(vs. 2020)

2021

2022

2023 Projection

2023
Current MTP+9+2

Approx.
-15 billion yen

Approx.
-10 billion yen

billion yen

billion yen*1 Drive Agent Personal (DAP), a drive recorder provided by Tokio Marine as a set with insurance*2 Natural catastrophes are normalized to an average annual level and the impact of COVID-19 is excluded (normalized basis).

20%

L/R*1
-7.2 pt(vs. 2020)

70%

60%

1，
200

134

70%

-11.4 pt
(vs. 2020)-15.9 pt

-14 ptor better(vs. 2020)2023 Projection

2023
Current MTP(vs. 2020)

2020

Profit impact*1,2,3

2021

+21

(vs. 2020)

billion yen

Of which, the impactof the rate revision*2,4

billion yen

+6

2022

+36.6

billion yen+13billion yen+60.1

billion yen＋23billion yen

2Strategy and Business Platform Supporting Our Purpose Story

The top-line ﬁscal 2022 result was +0.2% (vs. ﬁscal 2020), as the impact of the rate revisions (rate cut) in April 2022 was oﬀset bycoverage expansion, etc. The ﬁscal 2023 projection is +1.0% (vs. ﬁscal 2020).
● Regarding the bottom line, we planned to limit the decline in proﬁts to about 10 billion yen in the current MTP, but due to inﬂation andan increase in loss cost from revenge drives, the decline in proﬁts is expected to be around 15 billion yen.
● In response to the increase in loss cost, we plan to conduct rate and product revisions in January 2024, and will continue to work
toward the generation of sustainable and stable earnings.
●

Approx.

+45 billion yen+19billion yen*1: Natural catastrophes are normalized to an average annual level and the impacts of COVID-19 and exchange rates are excluded.
In addition to the above, the impact of the flooding in South Africa (approximately 3 billion yen) was excluded in fiscal 2022.
*2: After tax, estimation*3: The impact of inflation has been reflected in projections.
*4: Cumulative value of the profit improvement impact actualized in the relevant year from product revisions, etc.

*3 NWP*4 After tax, estimation135

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
Road Map for Achieving the Current Mid-Term Business Plan

Road Map for Achieving the Current Mid-term Business Plan

Domestic
non-life insurance

Domestic
non-life insurance

Specialty Insurance Growth

Initiatives to Improve the Combined Ratio (C/R)▶Current MTP Targets▶Current MTP targets

Aim to achieve revenue growth of over 100 billion yen over three years by providing specialty insurance and other products that
help resolve increasingly complex and diverse social issues, and by creating new markets for the current MTP targets.

Invest about 40 billion yen in digital technology to rigorously reduce internal administration work. Improve the C/R ratio to around
92% by not only reducing business expenses but also redistributing the generated load to increase strategic execution capability
for the current MTP targets.

▶Key Measures
Aim to achieve the goals of the current MTP by implementing measures centered on the expansion of initiatives in four priority
areas of social issues (healthcare, SME, renewable energy, and cyber).

MeasureMeasureApproach

SME●●

Renewable energy
Cyber

Response to New Risks

Strengthen digital contact points with the SME market
Increase revenue through compensatory upgrades of SME exclusive package products

Increase revenue by enhancing Group-based initiatives including utilization of the abundant
expertise of GCube● Construct a business support model using the solar PPA model*1●●●

Develop promotions based on the strength of the 24/7 emergency hotline service
Establish an insurance agency specializing in cyber insurance
Establish insurance programs in cooperation with overseas Group Companies
Create new markets by leveraging the strengths of the Group s core data company, Tokio
Marine dR Co., Ltd.

The top-line ﬁscal 2022 results were +64.5 billion yen (vs. ﬁscal 2020), mainly due to expansion of initiatives in four priority areas of social
issues, which are growth drivers. The ﬁscal 2023 projection is +105.1 billion yen, and the current MTP target of +100 billion yen is achievable.
● We will continue to ﬁrmly capture the expanding market due to the increasingly diverse and complex social issues.
●

Top-line*2

+64.5

607.7

400

over 602.6

567.1
502.6

2020

Profit impact*3(vs. 2020)

518.2▶Progress Status
In ﬁscal 2022, although the E/R declined due to top-line growth, the C/R was 92.6% due to the deterioration of the L/R in ﬁre andspecialty insurance, etc. In ﬁscal 2023, despite the deterioration of the L/R in auto insurance, our C/R projection is 92.5%, close to thetarget of the current MTP, due to various measures such as the improvement of proﬁtability in ﬁre insurance and the expansion of
specialty insurance.
● As of the end of ﬁscal 2022, we had reduced our internal administrative work by 9%, against the target of 15% reduction by the end ofﬁscal 2023 (vs. the end of ﬁscal 2019, with a 20%‒30% reduction targeted by the end of ﬁscal 2026).
●

Eﬀects of reduced internal
administration*2(compared to end of 2019)

96

93.2%

94

90

92.6%

92.5%

-9％

Approx.
92%

2020

2021

2022

2023
Projection

2023
Current MTP

C/R improvement-0.2 pt-0.8 pt-0.9 ptOver-1.0 pt(vs. 2020)*1

2021

2022

2023 Projection

2023
Current MTP

+1.0

+10

+17

Approx.

billion yen

Achieve top-line growth mainly in specialty insurance
Improve ﬁre insurance earnings through disaster prevention and mitigation, as well
as via countermeasures, etc.

-15％billion yen

billion yen

2-20‒30％92

billion yen

500

Over

billion yen

600

●

(%)

+100

(billions of JPY)

●

C/R*1

+105.1billion yen

Business expense related: Digitize customer contacts, increase automation, andimprove the eﬃciency of administrative work
● Loss adjustment expense related: Improve eﬃciency using AI, online procedures, etc.
●

Strategy and Business Platform Supporting Our Purpose Story▶Progress Status

700(2) Initiatives that utilize the timecreated●●Approach

Rigorously reduce internal(1) administrative work through thethorough use of digital technology

Accelerate initiatives for commercialization in the presymptomatic and preventive area
(established a preparatory company in April 2023)● Increase revenue through new sales models and digital application procedures●

Healthcare
Expansion of
initiatives infour priority
areas ofsocial issues▶Key Measures

End of2019

End of2022

End of2023

End of2026*2: Virtual calculation of the reduction effect compared to the actual
results as of the end of fiscal 2019

*1: Natural catastrophes are normalized to an average annual level,
and the impacts of COVID-19 and exchange rates are excluded.
In addition to the above, the impact of the ﬂooding in South Africa(approximately 3 billion yen) was excluded in ﬁscal 2022.

+10

billion yen*1: A system that enables the introduction of solar power generation systems without initial and maintenance costs*2: Including P.A.
*3: After tax, estimation (including rate revision effects)
136

137

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
Road Map for Achieving the Current Mid-Term Business Plan

Road Map for Achieving the Current Mid-Term Business Plan

Contributing to the Groupʼs risk diversiﬁcation andlong-term growth

Domestic life
insurance

International
insurance

Underwriting Proﬁts Increase in Advanced Markets▶Current MTP Targets▶Current MTP Targets

Under the current MTP, plans are in place to secure stable top-line growth of around +5% CAGR and bottom-line growth of around 50
billion yen per year by expanding sales of highly proﬁtable products.

Under the current MTP, we plan to boost underwriting proﬁt (15 billion yen before tax) compared with ﬁscal 2020 by generating robust growthin the top line with a CAGR of approximately 5% while maintaining a C/R that compares well to our global peers of approximately 93%.

▶Key Measures▶Key Measures

Introduce highly proﬁtable products that focus on the three areas of seniors, healthcare, and asset formation. In addition, aim to achieve
the current MTP targets using digital technology to expand our business model that establishes direct contact between TMNL andexisting non-life insurance policyholders and connects them with sales agents who can provide consulting services.

In consistently focusing on the bottom line and harnessing our strength in underwriting and risk underwriting, we will work to achieve targets identiﬁed
under the current MTP by realizing appropriate underwriting while ascertaining the proﬁtability of each business line via a forward-looking approach.

MeasureMeasureApproach(1)

Focus on growth areas(seniors, healthcare, and asset formation)(2)

Promote the cross-selling of life andnon-life products

Policy Initiatives
Leverage the strengths of each Group company and achieve rate increases above
market level and exceeding loss cost
● Through portfolio management, engage in new risk-taking in lines where high returns are
expected while ensuring proﬁtability● Implement bolt-on M&As●

Introduce new products focusing on nursing care and cancer and expand sales ofvariable insurance with installment plans● Expand such supplementary services as dementia prevention and early cancer
detection●●●(1) Top-line growth

Expand the use of apps that provide comprehensive insurance diagnosis services
Expand the division of labor model in which direct contacts with existing non-life
insurance policyholders are established and they are referred to life insurance agents▶Progress Status(2) Maintain strong proﬁtability▶Progress Status●(Reference) Medium- to Long-Term
Growth Driver

Top-line (New Policies ANP)
(billions of JPY)

CAGR
+5%

CAGR
+10.2%

Current main and new products have RORs thatexceed the cost of capital and will serve as adriver of future proﬁt growth.

CAGR+11.1%

43.3

51.9

53.4

58.0

50.0

2021

2022

2023
Projection

2023
Current
MTP

2020

138

51.1

2021

0

46.0

2022

39.0
2023
Projection

Long-term care annuity insurance(from Aug. 2021)

CAGR

CAGR

+11%*3+11%*3Risks*3*1: The size of the bubble indicates annualized new policy net premium(FY2023 projection)*2: Value of new business and future release of cost of non-hedgeable risks(FY2023 projection)*3: Sum of the present value of required capital for each future ﬁscal year
(FY2023 projection)

Approximately 93 %

+5%

CAGR

Installment
variableinsurance

Disability insurance
7% ROR
Cancer treatment insurance(from Feb. 2022 onwards) (TMHD capital cost)
Medical insurancewith relaxed
underwriting criteria

91.6 %

91.7 %

CAGR

Top-line*

Fixed-term insurance(with non-cancellation surrender
value rider)(from May 2021)

Medium- to long-term proﬁt growththrough recent sales expansion andexpansion of the portfolio of highly
proﬁtable products

52.7

93.8 %

98.9 %

2

Bottom line
(billions of JPY)

C/R*1

ROR*1 for TMNLʼs main products (image)
Return*2

2020

We are steadily implementing and realizing the eﬀects of a variety of measures including rate increases that take advantage of thehard market environment and disciplined underwriting, as well as such bolt-on M&As (see p. 143) as SSLʼs acquisition by DFG(most recently, GGEBS s acquisition by TMHCC (July 2023)).
● As a result, actual underwriting proﬁt in ﬁscal 2022 increased 87.5 billion yen compared with ﬁscal 2020 (including take down ofprior year loss reserves) and is projected to climb 47.5 billion yen in ﬁscal 2023 compared with ﬁscal 2020. This is due to top-line
growth at a pace that exceeds plans and steady improvements in the C/R. As a result, trends in underwriting proﬁt substantiallyexceed the target of the current MTP (a 15 billion yen increase compared with ﬁscal 2020).
●

1,923.7+8%*3

billion yen

2Strategy and Business Platform Supporting Our Purpose Story

The top-line ﬁscal 2022 result was 53.4 billion yen (CAGR +11.1% vs. ﬁscal 2020). The ﬁscal 2023 projection is 58 billion yen (CAGR+10.2% vs. ﬁscal 2020), exceeding the current MTP target (CAGR +5%).
● The bottom-line 2022 result (excluding one-oﬀ eﬀects) was 46 billion yen due to an increase in hedging costs, etc. Under the current
MTP, plans were to secure a stable stream of proﬁts around the 50 billion yen level, but the ﬁscal 2023 projection is lower than theplan due to an increase in the ﬁrst-year burden associated with top-line growth and an increase in hedging costs.

Build a strong underwriting portfolio by maintaining strict underwriting discipline while
paying close attention to trends in proﬁtability including rising social inﬂation● Promote eﬀorts to improve operation eﬃciency through such measures as administrative
process improvement and work to reduce operating expenses, etc.
●

1,971.2

billion yen

1,515.9

Approximately

1,500.0 billion yen

billion yen

1,314.8billion yen
2020

Underwriting proﬁt*4
88.0 billion yen
vs. 2020:

2021

2022

2023 Projection

2023 Current MTP

102.0 billion yen

175.5 billion yen

135.5 billion yen

103.0 billion yen+14.0 billion yen+87.5 billion yen+47.5 billion yen+15.0 billion yen*1: North America + Europe segments. Include policies with a high C/R such as DFGʼs excess workersʼ compensation and life insurance.
Exclude transient eﬀects such as natural catastrophes and COVID-19, the currency-adjusted C/R was 93.3% in 2020, 93.0% in 2021, and 89.2% in 2022
*2: Total NWP of the North America + Europe segments. For the 2020 and 2023 current MTP, the foreign exchange rate is as of March 31, 2021
*3: The foreign exchange rate is as of March 31, 2021
*4: Estimated with the top line × (1-C/R) (before tax). Adjusted C/R in *1 above used for 2020, 2021, and 2022, excluding foreign exchange.

139

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
(2) Expansion of highly proﬁtable business lines

Reference: Capacity to support sustainable expansion in underwriting proﬁts in advanced markets(1) Rate increase capacity

We are improving the proﬁtability of our entire portfolio not only

Through forward-looking rate increases, we have realized rate

specialty insurance ﬁeld and has high price bargaining power as

increases that exceed not only the loss cost but also those ina market leader. In addition, PHLY has achieved high customer

the market. This is because of the superior strength of our Groupsatisfaction through a strong sales network, detailed services

Companies compared to competitors in their respective markets.

through specialized products that meet the speciﬁc needs ofFor example, since its foundation, TMHCC has built up

specialized claim services provided by experienced staﬀ.

＋6％(Indexed starting 2017)
PHLY

＋14％

Market*

2

＋9％
＋7％

＋4％

2017

2018

according to proﬁtability.

bolt-on M&As and new underwriting.

2019

Example of eﬀorts (1)

TMHCC International segment top-line*1 (millions of USD)

＋9％Highly specialized underwriting and claims service expertise built
as a specialty insurance company since establishment in 1974
● Trusted by customers/brand recognition● Strong price negotiation as the market leader●

Organic growth

＋6％
＋7％

＋8％

2

2020

2021

2019

2022

●

Provides highly specialized and high-quality products andservices to meet customer needs

66
31

enable disciplined U/W
Preferred Agent*

4

Other

42%

Marine Liability

Launched/
Established▶Net Promoter Score*5 of PHLY
Signiﬁcantly Higher than the Market

Home insurance
Industry average

58%

37
Auto insurance
Industry average

PHLY

2020

2021

2022

GCube

Bolt-on M&As

▶PHLYʼs Strong Sales Network*3
Strong relationships with leading agents/brokers to

1,455
1,138

＋11％

Delegated Property
Marine Cargo

Example of eﬀorts (2)▶Portfolio Management Based on Proﬁtability at PHLY
●
●

●

2,250

Rate increases

Strengths of Tokio Marine Group Companies
That Enable Above-Market Rate Increases▶Strong Competitive Advantage of TMHCC

2,064

Benefits from new business investment such as bolt-on M&As*2

Classifying products into Tiers 1‒3 based on proﬁtability
Improving the proﬁtability of the entire portfolio by implementing a disciplined underwriting strategy for each Tier and repeating thecycle of reviewing the content of each Tier every year

More rigorous underwritingin the less profitable

Expansion ofhighly profitable

Tier 3(-12% year on year)

Tier 1Strategy and Business Platform Supporting Our Purpose Story＋2％

disciplined underwriting strategy for each product group (Tiers)

expanded its highly proﬁtable International segment through

＋11％

＋16％

＋5％
＋3％

improving the proﬁtability of the entire portfolio through a

proﬁtable business lines. TMHCC, for example, has recently▶Expansion of TMHCC s International Segment

Examples of rate increases (ﬁgures in the graph are YoY rate increase)

TMHCC*

by increasing rates but also by strategically expanding highly

niche sectors such as nonproﬁt organizations, and highly

expertise and brand power by specializing in the North American1

In addition, PHLY is expanding underwriting while continuously

Top-line*1
3.7 billion USD(ﬁscal 2022)

Tier 1(+8% year on year)

Tier 2Tier 3*1: Excluding A&H, Surety and Credit*2: Source: Willis Towers Watson*3: Results of PHLYʼs underwriting of new contracts in fiscal 2022 (GWP base)*4: PHLYʼs Preferred Agent and equivalent brokers*5: Indicator to measure customer loyalty and customer willingness to use products/services continuously. PHLY based on 2022 data
Source: Customer GURU, NICE Satmetrix 2022, Consumer Net Promoter Benchmark Study

140*1: GWP for TMHCC, NWP for PHLY
*2: Written premium generated from business investment such as bolt-on M&As implemented since 2018.

141

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
(3) Resistance to inflation(4) Ability to execute bolt-on M&As

There are three major types of inﬂation: (1) economic inﬂation(goods and services), in which the price of goods rises;(2) economic inﬂation (medical care and wages), in which
medical care costs and wages rise; and (3) social inﬂation, in
which legal costs and damages rise as a result of a growing▶Loss Reserve Ratio by Inﬂation Typefor Our U.S. Business*1

We are executing bolt-on M&A deals and forward-looking

and robust framework. Meanwhile, our well-diversiﬁed portfolio

divestments with the aim of strengthening existing businesses,

has allowed us to stabilize C/Rs, which has contributed to proﬁt

diversifying risk, and stabilizing C/Rs.

growth, even as our business expands.

Bolt-on M&As are distinguished by their high rate of success.

SocialUnder the proactive governance of Tokio Marine Holdings, weThis is because we have predominantly targeted companies andwill further enhance the quality of our bolt-on M&A deals andbusinesses with which we have had a long-standing businessaccelerate growth by utilizing, within each Group company,

relationship, in-depth knowledge of their business, and enjoy

TMHCCʼs know-how developed through more than 60 successful

control rises in the loss cost due to inﬂation. Among them,

relationships of trust with their management. In addition, we arebolt-on M&A deals.

economic inﬂation (goods and services) has a particular impact

steadily implementing PMI*1 based on our wealth of experience*1: Abbreviation of Post Merger Integration, which refers to the integration process after an M&A

tendency to hold corporations more strictly accountable. For
sustainable earnings growth, it is important to appropriately

Medical careand wages
Goods and services

Approximately
30%

on loss cost in ﬁre insurance and auto insurance, which are
traditional insurance lines. However, Tokio Marineʼs U.S.
operations, which are centered on specialty insurance, arerelatively resistant to this impact.
However, in specialty insurance, which is one of our strengths,

Approximately
55%
approximately
40% are medicalHigh success rate
: In-depth understanding based on a long-term business relationship
Accumulated know-how : Experience of executing more than 60 bolt-on M&As
: Strategic portfolio adjustment taking the future business environment into consideration
Disciplined M&As

Advantages ofbolt-on M&As

loss cost in medical stop-loss insurance and excess workersʼ
compensation, for example, are susceptible to economic inﬂation(medical care and wages), while liability insurance is susceptible
to social inﬂation. In response to these developments, we havestrengthened our resilience to inﬂation by proactively implementing
measures such as rate increases, reviewing underwriting, andreducing the number of lawsuits by promoting early settlements.

2015‒2017

Approximately
15%

By continuing this proactive approach, we will continue to(crop insurance)
January 2015

Acquisition

and generate stable proﬁts.

Social inflation

As a result of significantly reducing high limit policies of 10 million USD or more, which are often
targeted by lawsuits, more than 90% of all in-force policies*2 have a limit less than 5 million USD
Reduced number of lawsuits by approximately 60%*3 through early settlement efforts
Rate increases in light of rising loss cost

AJF

International Ag(personal accident
insurance)
June 2015(crop insurance)
April 2017

On CallInternational

Bail USA(assistant service)
January 2016

▶Tokio Marine Strategies by Inﬂation Type

Identify high-risk contracts potentially deteriorating future performance in advance, andproactively take measures by reviewing underwriting details, etc.

(medical stop-loss)
October 2017

Qdos

(liability)
October 2018

Midlands(excess workers
compensation)
December 2018

(surety)February 2016

Bail USA(surety)
Divested in
April 2019

Sale

Colors indicate acquired companies

WNC(property andﬂood insurance)
January 2018

■ TMHCC■ TMK■ PHLY■ DFG

NAS(cyber/liability)
April 2019

BCC

2021‒
A&H
InternationalSSL(paid familyleave insurance)
April 2021

(personal accident
insurance)
June 2019

GGEBS

GCube

(surety/credit
insurance)
April 2019

(renewable energy)
May 2020(gap medical
insurance)
July 2023

AmTrust Ag

Acquisition of
WWS businesses

We will continue
to look for
quality projects(crop insurance)
May 2019(insurance for the temporary
staﬃng business)

December 2020

LifeTrac(medical services)
Divested in
January 2020

Highland*2(construction
insurance)
Divested inAugust 2022

■TMMA (Australia)*2: Agents handling construction insurance in the Tokio Marine Highland (formerly WNC) Group, aﬃliated with TMK

2Strategy and Business Platform Supporting Our Purpose Story

improve our ability to respond to sudden environmental changes

AIG
business acquisition

Pro AgTokio Marine
U.S. Operations

2018‒2020

Loss reserves in select liability lines strengthened and prior year reserves have developed
favorably since fiscal 2019

Economic inflation(medical care and wages)

Although there are impacts on excess workersʼ compensation and medical stop-loss due toincreases in medical expenses and wages, etc., they are controlled through proactive rateincreases and increases in self-insurance retention, etc.

Latest M&A Deals●Provides gap medical insurance*3 for small to medium-sized businesses, which are

expected to increase in the United States●Aims to capture the growth of the gap medical insurance market and further diversify the

Increasing rates in light of increased loss cost due to inflation

Economic inflation(goods and services)

We have a structure that is relatively resistant to the impact of economic inflation due tocentering on specialties (low proportion of fire and automobile insurance, etc.)●Provides paid family leave insurance, a market that is expected to expand throughout the

The current inflation index for goods and services (flexible CPI, construction price index,etc.) has declined since peaking in 2021, and the risk of inflation on goods and services has
relatively decreased*1: Tokio Marine North U.S. subsidiaries loss reserves by inflation type as of the end of fiscal 2022
*2: Umbrella insurance with many high-value limit contracts*3: Compared with Q2 of fiscal 2020 when the Company commenced early settlement initiatives

142business by leveraging support from TMHCCʼs nationwide sales network

Acquired by TMHCC in July 2023 (Acquisition price: Below 10 billion yen)

United States●Expects to become a top three company in the industry in the state of New York andAcquired by DFG in April 2021
(Acquisition price: Around 19.8 billion yen)achieve after-tax proﬁt of 1.5‒2 billion yen after the M&A
Will further expand insurance for employee beneﬁts through cross-selling synergies withDFG

*3: A generic term for ancillary insurance to cover medical expenses that are not covered by primary health insurance arranged by employers for employees.

143

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
Road Map for Achieving the Current Mid-Term Business Plan

International
insurance

Road Map for Achieving the Current Mid-Term Business Plan

International
insurance

Driving Growth for Pure

Emerging Countries Strategy▶Current MTP Targets▶Current MTP Targets

Under the current MTP, we are taking advantage of the customer loyalty rate that is well above the industry average toaccelerate the pace of growth and have achieved major growth. Through the creation of synergies that leverage the Company s North
American‒based sales platform, we plan to expand business unit proﬁts by 13 billion yen.

Under the current MTP, we are implementing a growth strategy with the goal of diversifying geographical risk and capturing markets
with high growth potential. Plans are in place to secure a CAGR of at least +10% (+15 billion yen) through proﬁt growth.

▶Key Measures
We aim to achieve the goals of the current MTP by expanding our business scale and earnings through measures such as rate increases
and the geographical diversiﬁcation of our portfolio based on high customer loyalty.

Measure▶Key Measures
In emerging markets, made up of a variety of countries, we will strategically develop businesses and implement growth strategies
considering conditions in each country. Through these means, we will work to achieve current MTP targets and develop pillars of future
growth.

MeasureApproach
Focus on the high-net-worth market, which is a source of high growth potential● Diversify our portfolio, including expanding into Canada● Maintain and enhance strong customer loyalty● Increase rates that take advantage of the hard market environment, etc.
New business relation with PHLYʼs leading agents holding high net worth clients
Joint marketing to agents in Hawaii with Hawaiian subsidiary FICOH● Joint development of cyber insurance products with TMHCC for individual clients, etc.
●

(2) Demonstrate Group synergies●▶Progress Status▶Progress Status
Business unit proﬁts in ﬁscal 2022 increased 49% and ﬁscal 2023 projections are an increase of 38% compared with ﬁscal 2020, excludingtransient eﬀects. Progress is substantially beyond the current MTP (over 10% increase).
● In particular, the bottom line in Tokio Marine Seguradora in Brazil has grown to a scale of more than 10 billion yen in actual proﬁts, as a resultof its high insurance underwriting capacity and the implementation of digital transformation.
●

As a result of the steady implementation of our key measures, business unit proﬁts in ﬁscal 2022 increased 10 billion yen and ﬁscal
2023 projections are an increase of 12 billion yen compared with ﬁscal 2020. This is generally in line with the current MTP target (a 13billion yen increase compared with ﬁscal 2020).

India
●

Business unit proﬁts*

1

Approximately+12

Approximately

ThailandIFFCO-TOKIO General
Insurance (49.0%)

13

Proﬁt

yen

M/S

+ billion

billion yen

+10

5.6

2022

●

2023 Projection

0.3 → 1.5 billion yen

No. 13 (4%)

M/S

3.4

trillion yen

2022

2023 Projection

Premiums under management company
+20%

642
2016

803
2017

1,024

1,693

1,966

2,260

trillion yen

2019

2020

2023 Projection

6.8*→ 4.9 billion yen

12.7→ 15.6 billion yen

No. 4 (8%)

M/S

No. 4 (7%)

1.3

trillion yen

3.2

0.5

trillion yen

trillion yen

South Africa

59
31

2021

2022

2023
Projection*1: The foreign exchange rate is as of March 31, 2021. For 2020, 2021, and 2022, natural catastrophes arenormalized to an average annual level and the impact of COVID-19 is excluded.

144

1.0

2023 Current MTP●

37

Hollard Group (22.5%)

Proﬁt

2018

2022

Proﬁt

■Net Promoter Score*2

CAGR

1,526

2023 Projection

Tokio Marine Seguradora (98.5%)

Strong customer loyalty(millions of USD)

1,294

2022

●

* Including the impact of a decrease in traffic volume

yen

2021

BrazilTokio Marine Safety Insurance(Thailand) (99.3%)
Proﬁtbillion yen+ billion

2020

2

Major regions of non-life insurance business in emerging countries

Strategy and Business Platform Supporting Our Purpose Story●

Capture Brazilian mortgage-related insurance needs that oﬀer high growth and proﬁtability
potential through the establishment of a joint venture with Caixa, Brazil s largest banking group● Expand our market share in the Thai automobile market through integration with Safety
Insurance acquired in Thailand●

Strategic business development
based on conditions in each country●(1) Implement growth strategies

ApproachHome insurance Auto insurance
averageaveragePure*2 Indicator to measure customer loyalty and customer
willingness to use products/services continuously.
Data for Pure are from 2022.
Source: Customer GURU, NICE Satmetrix 2022
Consumer Net Promoter Benchmark Study

M/S

2022

2023 Projection

Malaysia●

Tokio Marine Insurans (Malaysia)(100%)

1.0 → 1.5 billion yen

Proﬁt

No. 2 (12%)*

M/S

1

2022

2023 Projection

3.3 → 3.8 billion yen

No.7 (6%)

Proﬁts: Business unit proﬁts
Sources for M/S: AXCO, IRDAI, IPRB, SUSEP, Swiss Re, FSCA Financial Sector Conduct Authority
Figures in brackets by the company name: Ownership ratio as of March 2023
Figures in circles: GWP of each country as of FY2021 Source: Swiss Re

Growth exceeding the market
Non-life premiums*2

8.3 %2016‒2021 CAGR

vs. market +0.5 pt*1: M/S of P&C business (2021)*2: NWP for TMHD, GWP for market Source: Swiss Re

145

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Progress of Current Mid-Term Business Plan by Business Unit
Road Map for Achieving the Current Mid-Term Business Plan

Increase Investment Income by Leveraging
Our Strength in Credit Management

International
insurance

Reference: DFGʼs strengths in CRE loan management
One of the strengths of DFGʼs credit management is its CRE loan investment that utilizes its high level of expertise. DFG has implemented
appropriate measures even in the recent ﬁnancial turmoil, and the negative impact has been limited.

▶Current MTP Targets
Under the current MTP, we plan to increase investment income utilizing the ability to spot good investment targets in the credit market.

Nature of the marketʼs concerns▶Key Measures
Under appropriate risk control based on the characteristics of insurance liabilities, we will work to achieve the current MTP targets byachieving high returns relative to risks through various measures including investments in credit assets in the United States that utilize
DFG s asset management prowess.

MeasureApproachCredit management(1) utilizing the strengths of
DFG s investment team

(2)

Collaboration with Tokio
Marine Group companies(3)

Demonstrate Groupsynergies

Increase in vacancy rate of office properties

Rise in U.S. interest rates

Tightening of bank lending

BackgroundFederal Reserve monetary tightening

Background
Decline in liquidity due to the outﬂow
of deposits from commercial banks
triggered by the failure of SVBs, etc.

Risk of property price declines

Borrowerʼs risk of default on interest payments

Default risk at maturity■ Decrease in rent, the basis of
calculating property price■ Decline in present value due to risein discount rate

■ Decrease in rent revenue as a sourceof interest payment■ Increase in interest payment burden
due to rise in interest rates■ Decline in property prices■ Diﬃculty in reﬁnancing due totightening of bank lending

BackgroundPost-pandemic telecommuting,large-scale layoﬀs, etc.

Leverage long-term, predictable investment fund characteristics and pursue excess proﬁts thattolerate liquidity risk
● Execute agile asset allocation according to the investment environment by data gathering andanalysis leveraging a broad network● Undertake investments that require expertise in such areas as CLOs and CRE loans●●●

Control credit risk appropriately within our Group-wide ERM framework
Develop specialized investment personnel through personnel exchanges within the Group, etc.

Entrust the assets of Group companies to DFG while expanding proﬁts by utilizing the DFG
investment team s capabilities● Execute R&D in new ﬁelds such as ESG investment on a Group-wide basis●▶Progress Status●

Stable growth of investment income(DFG-managed *1)(millions of USD)

Increase of AUM due to business growthand increase in managed assets(DFG-managed*1)(millions of USD)（%）

40,0001,500

30,0004

1,000

20,0003

6
5

2

10,000

DFG

GCs

Income + gains and losses onsales + impairment (Reference)012012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

DFG

GCs

0

Select projects where the property
value can be increased throughrenovation, etc.
● In addition to the above, utilize
experienced, specialist teams fromthe perspective of the sponsorʼsreal estate investment experience,ﬁnancial soundness, and tenantquality, etc.
● 99%*1 of the portfolio successfully
pays interest●

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

DFG + GCs

Barclays US Aggregate Bond Index●

Allow emergency measures,
including workouts (collection), at
our own discretion●

Can hold the position until market
recovery, including extension of
maturity＞

2,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

DFGʼs investment resources
based onlong-term, predictable insurance
liabilities

Portfolio dominated bystand-alone projects

750,0000

Selective financing based on
ability to identify properties
and sponsors

Stable acquisition of a higher
income yield compared to the index

2,500

500

DFGʼs strengths (initiatives) in response to these concerns

In actual workouts, we have madesteady progress in recovery eﬀorts,
for example, by gaining proﬁts
from the sale of seized properties

2
Strategy and Business Platform Supporting Our Purpose Story

Assets under management (AUM) of the entire Group have increased signiﬁcantly mainly due to the strong performance in insurance
underwriting. DFG, which excels at credit management, has managed part of this, and has achieved stable income revenue exceeding
the benchmark, and made good progress.

*1: Assets entrusted to DFG by major Group Companies (TMNF, AL, NF, PHLY, TMAIC, TMHCC)

Results compared to index
Total return（％）

Volatility

（％）

2.93

3.91

5.04

3.62

3.90

0.03
5-year average(2018‒2022)2007‒2022 average

5-year average(2018‒2022)2007‒2022 average

0.69

Conﬁrmed that the CRE loan impairment amount calculated in the stress test*2 can be recoveredfrom the asset within six months due to the high income return from the asset● Compared to the 37.5% decline in real estate prices*3 during the 2008 ﬁnancial crisis, the average
LTV*4 of the portfolio was approximately 60%
●

-0.34

5-year average(2018‒2022)

Barclays US Aggregate Bond Index*2: Indicator for measuring investment return per unit of risk. Calculated by total return minus risk-free rates divided by volatility. Risk-free rates: LIBOR6M

146

Limited impact on PL from the 2008 ﬁnancial crisis

5.93

4.43

DFG

Sharpe ratio*2

1.23

0.38

2007‒2022 average

In addition to theabove strengths*1: Balance as of March 31, 2023 *2: Calculated based on a conservative assumption that certain losses will occur, with reference to the probability of default at the time of the 2008
financial crisis. *3: Refer to the CPPI Index. *4: Loan to Value = Loan balance/collateral value147

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Toward Adjusted ROE Growth

Toward Adjusted ROE Growth
We will secure adjusted ROE growth by steadily implementing business unit strategies based on our strengths.

Business Unit Strategies

Management Strategies/
Capital Policy*(pp. 44‒48)

Adjusted ROE Growth

ROR Improvement and ESR Control

Domestic Non-Life
Insurance(pp. 134‒137)
Domestic Life
Insurance(p. 138)
International Insurance(pp. 139‒147)

Organic Growth
Strategic Risk Release

Portfolio Review

M&A(pp. 26‒29)
New Business(pp. 34‒43)

Tokio Marine Groupʼs Strengths

Adjusted ROE

2

Risk Amount

Adjusted Net Income

×

Business Divestment(p. 29)
Sale of BusinessRelated Equities(pp. 116, 117)

Adjusted Net Income

1/ESR

Driver for Proﬁt Growth and Risk Diversiﬁcation

Business Investment

Dividend Increase
Flexible Capital Level Adjustment≒
Adjusted Net Assets

Risk Amount

Strategy and Business Platform Supporting Our Purpose Story

Asset Management(pp. 146, 147)

ROR

Basis of Proﬁt Growth

Net Asset Value

Shareholder Return

Global Risk Diversiﬁcation(pp. 27‒29)

Global Integrated Group Management(pp. 30‒33)*: Arrows from Management Strategies and Capital Policy are drawn toward the components of ROR and ESR that are especially affected. For example, while a portfolio review
attributable to the sale of business-related equities increases adjusted net income owing to the gain on sale of business-related equities, an arrow is not drawn toward adjusted net
income because the primary objective is to eliminate the risk amount.

148

149

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Participation in International Initiatives/ESG Evaluations and External Awards

Participation in International Initiatives

ESG Evaluations and External Awards

Tokio Marine Group participates in various international initiatives, taking part in surveys, research, and making recommendations

Tokio Marine Group has been highly evaluated and has received numerous awards from domestic and overseas institutions for theto contribute to the realization of a sustainable society.

environmental, social, and governance (ESG) initiatives that it promotes as a part of its business and corporate social responsibility activities.

Human Rights, Labor, the Environment, and Anti-Corruption

Socially Responsible Investment (SRI) and ESG Indexes that include Tokio Marine Holdings

United Nations Global Compact● Globally recognized ESG Index Series jointly developed● Joined in 2005 and continued declaration of support

by S&P Dow Jones Indices LLC and RobecoSAM AG in 1999

● In ﬁscal 2022, participated in the “Disaster Prevention and Mitigation Working Group,”● Tokio Marine Holdings included for 14 consecutive years beginning“WEPs Working Group,” etc.

in 2009

Sustainable Finance and Insurance Frameworks

United Nations Environment Programme and Finance Initiative (UNEP FI)● Participated in the Insurance Committee as a representative

Principles for Financial Action
for the 21st Century

director of the Asia region● Participated in the Asia-Paciﬁc Roundtable 2021 (June 2021)

Principles for Sustainable Insurance (PSI)● Signing as a founding signatory in 2012 and participation in the PSI TCFD Insurer Pilot

Working Group in 2018 to promote the development of climate-related disclosure frameworks
based on the TCFD recommendations

Awards for ESG Initiatives● Tokio Marine included in the 2023 “Health & Productivity Stock Selection program”(eighth consecutive year)

Sustainable Investment● Tokio Marine selected as an Excellent Enterprise of Health & Productivity Management

United Nations Principles for Responsible Investment (PRI)

Japan Sustainable
Investment Forum● In Tokio Marine Group, TMNF and Tokio Marine Asset Management(Large Enterprise Category) together with 13 Group companies, of which ﬁve were recognized
as White 500 enterprises● Selected as a DX Stock for 2023 in the Digital Transformation Stock (DX Stock) listing

became signatories to promote responsible and sustainable investment(second consecutive year)
Climate-Related Information Disclosure

PCAF

2
Strategy and Business Platform Supporting Our Purpose Story

The inclusion of Tokio Marine Holdings in
any MSCI Index, and the use of MSCI logos,
trademarks, service marks, or index names
herein, do not constitute a sponsorship,endorsement, or promotion of Tokio Marine
Holdings by MSCI or any of its aﬃliates. The
MSCI Indexes are the exclusive property of
MSCI. MSCI and the MSCI index names andlogos are trademarks or service marks of MSCI
or its aﬃliates.

● Tokio Marine won the Silver Award (Minister of the Environment Award) in the Environmentally

United Nations International
Strategy for Disaster Risk Reduction/
Private Sector Alliance for Disaster
Resilient Societies

Sustainable Company category of the “ESG Finance Awards Japan”
The Geneva
Association

ClimateWise

Asia-Paciﬁc
Financial Forum● Tokio Marine was selected as the Supplier Engagement Leader which is the highest rating inthe 2022 “Supplier Engagement Rating (SER)” by the international environmental nonproﬁtorganization CDP
Insurance Development Forum(insurance industry-spearheaded
international public-private
partnership)

CDP

Task Forceon Climate-related Financial
Disclosures

Taskforceon Nature-related Financial
Disclosures

Sustainable Markets
Initiative● Overseas Group companies named among the “Best Workplaces in Brazil” (10th consecutiveyear) and among the “Best Places to Work in Insurance” in the United States

150

151

2 Strategy and Business Platform Supporting Our Purpose Story | Financial and Non-Financial Data | Initiatives for Environmental, Social, and Governance (ESG) and SDGs Measures
The material social issues to be addressed by Tokio Marine Group are indicated on pp. 64‒65. In addition to these issues, theGroup is advancing various initiatives pertaining to environmental, social, and governance (ESG) issues.
We will work to contribute greatly to the achievement of the SDGs through such initiatives.

ESG Category

Environmental

E

Initiative Themes

Major Initiative

Relevance to the 17 Sustainable Development Goals (SDGs)

Promoting environmental management

Reduction of environmental impacts of business activities and achievement of a carbon-neutral●●

Preserving biodiversity throughproducts and services

Promotion of web-based insurance contracts and omission of issuing issuance policies

●

●

●

●

●

●

●

●

●

Mangrove planting project, “Green Gift,” and conservation and restoration activities for eelgrass beds
Promotion of the use of recycled parts when repairing damage to vehicles involved in accidents

Preventing global warming bypromoting the developmentof clean energy●

Provision of products and services for environment-related operators
Promotion of the use of environmentally friendly drones through the provision of drone insurance
Provision of renewable energy funds, and investment in green bonds●

Promotion of green transformation (GX)●

Supporting the decarbonization of business partners and recipients of investments and ﬁnancing●

Implementation of “Green Lessons” and “Marunouchi Citizens Environmental Forum”

Making society resilient tonatural catastrophes

Execution of natural disaster risk research and “Disaster Risk Prevention Lessons” through industry-academia collaboration●

Participation in the Geneva Association and other initiatives and events related to natural catastrophes

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Provision of auto insurance compatible with autonomous driving and sharing economies

●

●

●

●

Provision of products and services that utilize an original driving recorder

●

●

●

●

Provision of one-day auto insurance (Choinori Insurance)

●

●

●

●

●

●

●

2
●

●

●
●

●

●
●
●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Monetary donations made with the objective of providing logistic support for COVID-19 and large-scale natural disasters, etc.

●●

Support for corporate health and productivity management eﬀorts

●

●

●

●

●

●

●

●

●

●

●

●
●

Execution of lessons on risk and the future●

Contribution to the development of society through sports

Promotion of work-style reforms, and health and productivity management
Human resources development that leverages the Groupʼs collective strengths

●

●

●

●
●

●

●

Promotion of diversity and inclusion

●
●

●

●

●

Appointment of outside directors with diverse expertise, and adoption of hybrid corporate governance structure●

Linkage between executive compensation and the results of ESG initiatives●

Enhancement of governance through the execution of the PDCA cycle that is based on the evaluation of eﬀectivenessStrengthening integrated group management

●

●

●

●

●

Formulation of various basic policies and conducting regular monitoring

Formulation of Tokio Marine Groupʼs Basic Policies for Risk Management and Tokio Marine Group Basic Policy
for Crisis Management, and conducting regular monitoring●●

Execution of compliance training and introduction of a hotline system
Enhancement of enterprise risk management and convening the ERM Committee

Strategy and Business Platform Supporting Our Purpose Story●

Provision of products and services catering to the LGBTQ＋ community

Partnership between local governments and businesses operators to advance regional revitalization initiatives

Governance●●Collaboration with the Japanese Para-Sports Association and the Japan Inclusive Football Federation

152

●

●

Responding to the need for coverage for COVID-19 as well as for preventing infection

Provision of microﬁnance funds

Practicing risk management●●

Provision of specialized products for addressing dementia, and execution of courses to foster people providing support to dementia patients

●

●

●

●

●

●

●

●

Provision of weather insurance and microinsurance for farmers in India

Implementing internal controls●

Provision of services for facilitating Health and Productivity Management

Development of inbound business support services for Japanese business operators

Enhancing corporate governance●●

Eliminating poverty in society

●

●

●

Partnership with the Special Olympics Nippon Foundation and the Japan Deafblind Association, etc.

G●

Provision of highly original medical and cancer insurance (“Life Insurance Revolution to Protect Oneʼs Living”)

Addressing the increase in foreign visitors to Japan

Increasing employee motivation

●

●

●

●

●

Provision of claim services that utilize big data and AI technologies

Developing industrial foundations

●

●

●

Provision of cyber risk insurance for corporate customers

Realizing an inclusive society

●

●

●

Establishment of the disaster prevention consortium CORE

Responding to technological progressand changes in the automotive lifestyle●●

Improvement of products and services that respond to increasingly serious natural catastrophes

Creating a society based onhealth and longevity●●

Provision of business continuity plan (BCP) formulation support programs, and disaster education and training services

Development of claim services that utilize satellites and drones

●

●

●

Providing environmental awarenessSocialS●

Provision of exclusive products and services for solar, geothermal, and oﬀshore wind power generators

●

●

●
●

●
153

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Business Conditions

Main Financial and Non-Financial Data
(Yen in millions unless otherwise indicated)

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Ordinary income

3,857,769

4,166,130

4,327,982

4,579,076

5,232,602

5,399,115

5,476,720

5,465,432

5,461,195

5,863,770

6,648,600

Net premiums written

2,558,010

2,870,714

3,127,638

3,265,578

3,480,478

3,564,747

3,587,400

3,598,396

3,606,548

3,887,821

4,469,989

Ordinary proﬁt

207,457

274,386

358,182

385,825

387,659

344,939

416,330

363,945

266,735

567,413503,907

Net income attributable to owners of the parent

129,578

184,114

247,438

254,540

273,856

284,183

274,579

259,763

161,801

420,484

376,447

Comprehensive income

548,251442,277

997,024(14,543)

169,603

500,528

42,871

2,737

465,071590,780(116,412)

Net assets

2,363,183

2,739,114

3,609,655

3,512,656

3,569,760

3,835,536

3,603,741

3,426,675

3,722,780

4,072,625

3,657,849

Total assets

18,029,442

18,948,000

20,889,670

21,855,328

22,607,603

22,929,935

22,531,402

25,253,966

25,765,368

27,245,852

27,699,816

12.98

14.32

17.13

15.94

15.67

16.59

15.86

13.35

14.22

14.76

13.11

Performance Indicators (Consolidated)

Financial Indicators (Consolidated)

Capital ratio (%)
Return on equity: ROE (%)
Consolidated solvency margin ratio (%)

6.2

7.3

7.9

7.2

7.8

7.7

7.4

7.5

4.6

10.9

9.8

737.0

728.4

781.3

791.4

897.3

879.3

854.2

845.8

896.5

827.3

627.5

1,017

1,178

1,580

1,539

1,574

1,748

1,686

1,610

1,761

1,977

1,823

56

79

107

112

121

127

127

123

77

204

187

Stock-related Information

Net assets per share (Yen)
Net income per share―Basic (Yen)Dividends per share (Yen)

18

23

32

37

47

53

60

63

67

85

100

Dividends total (100 million yen)

422

537

722

830

1,053

1,176

1,280

1,330

1,391

1,739

2,002

2,413,572

2,308,572

2,272,572

2,272,572

2,259,072

2,244,072

2,130,000

2,106,000

2,092,500

2,040,000

2,002,500

Number of shares outstanding at year-end (Thousands)

883

1,032

1,512

1,267

1,565

1,578

1,787

1,650

1,755

2,376

2,547

Price-to-earnings ratio: PER (Ratio)

15.69

12.91

14.01

11.27

12.92

12.37

14.00

13.39

22.68

11.62

13.60

Price-to-book value ratio:
PBR (Ratio)

0.87

0.88

0.96

0.82

0.99

0.90

1.06

1.02

0.99

1.20

1.39

1,631

2,437

3,233

3,519

4,067

3,414

2,809

2,867

3,361

5,783

4,440

483

340

1,225

1,260

1,676

1,443

189

259

1,279

2,167

1,079

Key Performance Indicators

Adjusted net income (100 million yen)
Business unit profits
Domestic non-life insurance
Domestic life insurance

1,103

1,045

1,398

(1,881)

3,735

984

(1,586)

(703)

2,052

511

364

International insurance

692

1,369

1,455

1,318

1,695

1,441

1,762

1,795

1,011

2,523

2,186

Financial and other
Adjusted net assets (100 million yen)

(187)

25

40

73

66

72

68

53

73

69

70

27,46531,72541,03435,99338,12440,864

37,631

32,40936,92442,24037,991

Adjusted ROE (%)

6.5

8.2

8.9

9.1

11.0

8.6

7.2

8.2

9.7

14.4

11.1

Adjusted BPS (Yen)

1,193

1,378

1,812

1,589

1,694

1,877

1,775

1,547

1,775

2,077

1,908

Adjusted EPS (Yen)

70

105

141

155

179

153

130

136

160

281

221

Adjusted PBR (Ratio)

0.74

0.75

0.83

0.80

0.92

0.84

1.01

1.07

0.99

1.14

1.33

33,00633,31033,82936,902

38,842

39,19140,848

41,101

43,26043,04843,217

8,687

9,102

9,640

12,612

13,52513,803

15,557

15,814

17,811

17,936

18,394CO2 emissions (Tons)

93,311

87,971

98,317122,280

119,420

115,244

111,509111,172

89,894

83,48380,201CO2 ﬁxation/reductioneﬀect (Tons)

84,360100,951

113,310

133,447

163,459

163,521

153,335

133,617

123,531130,003

93,000Strategy & Business Platform Supporting Our Purpose Story

Share price at year-end (Yen)

Environmental, Social and Governance (ESG) Information

Number of employees
Number of employees outside Japan

Notes: 1. With the application of “Accounting Standard for Business Conbinations” (Accounting Standards Board of Japan (“ASBJ”) Statement No.21), the former Net income is
Net income attributable to owners of the parent from FY2015.
2. Number of employees is staﬀ head-count currently at work.
3. Figures for Comprehensive income, consolidated solvency margin ratio, and number of employees outside Japan are provided beginning with the ﬁscal year from whichdata collection and disclosure began.

154

4. Dividends per share for FY2018, FY2019, and FY2020 do not include one-time dividends of approximately JPY50.0 billion, JPY25.0 billion, and JPY25.0 billion,
respectively.
5. A stock split was implemented (a ratio of three shares per share) in October 2022. The “BPS,” “EPS,” “DPS,” “Number of shares outstanding at year-end,” and “Shareprice at year-end” for FY2021 and earlier fiscal years have been recalculated based on after the stock split.
6. The Key Performance Indicators have been newly deﬁned in FY2015 and ﬁgures for FY2012 and thereafter have been restated. FY2021 onward is based on new
definition.
7. The main reason for the increase in CO2 emissions from FY2015 was the expansion of coverage for calculation of Scope 3 (Other Indirect Emissions). The CO 2
emissions for the fiscal year ended March 31, 2023 reflects a CO2 reduction effect of 14,074 tons from green power purchases.

155

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Business Conditions

Overview of Business Results

Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE
Adjusted
Net
Income*1

Net Income(consolidated)*2

Provision forcatastrophe loss
reserves*3

Adjusted
ROE

Catastrophe
loss
reserves

Net assets(consolidated)

Provision for pricefluctuation
reserves*3

Contingency
reserves

Price fluctuation
reserves

Provision forunderwriting result for
the first year*5*6

Provision for nat-cat
underwriting
reserves*3*4

Gains or losses on sales or valuationof fixed assets and business
investment equities

Amortization of
goodwill and otherintangible fixed assets

Gains or losses on sales orvaluation of ALM*7 bonds andinterest rate swaps

Adjusted
Net
Assets*1

Provision forcontingency
reserves*3

Naturalcatastrophe
underwriting
reserves*4

Other extraordinary gains /losses, valuation
allowances, etc.

UW reserves
related tounderwriting result
for the first year*5

Goodwill andother intangible
fixed assets

Domestic Non-Life Insurance Business

Adjusted Net Assets(average balance basis)*1*8

Adjusted Net
Income*1

In the Domestic non-life insurance business, Ordinary income increased by 190.5 billion yen to 3,040.6 billion yen from the previous fiscal
year. Ordinary profit decreased by 18.0 billion yen to 284.5 billion yen from the previous fiscal year. Figures pertaining to insurance
underwriting and investment in the Domestic non-life insurance business are as follows:

Definition of Business Unit Profits

Underwriting
Direct premiums written (including deposit premiums from policyholders)Non-life insurance business
Net Income

Provision forcatastrophe loss
reserves*3

Provision forprice fluctuation
reserves*3

Provision for nat-cat
underwriting
reserves*3*4

Gains or losses on sales orvaluation of ALM*7 bonds andinterest rate swaps

Provision forunderwriting result
for the first year*5*6

Gains or losses on sales orvaluation of fixed assets,business-related equities andbusiness investment equities

AmountOther extraordinary
gains / losses,
valuation
allowances, etc.

Net Income

Fire and allied lines
Hull and cargo
Personal accident
Voluntary automobile
Compulsory automobile liabilityLife insurance business*9
Business
Unit
Profits*1

OthersProvision forcontingency
reserves*3

Total
Deposit premiums frompolicyholders

Provision forprice fluctuation
reserves*3

Gains or losses on sales orvaluation of ALM*7 bonds andinterest rate swaps

Other businesses

Gains or losses on sales orvaluation of fixed assets,business-related equities andbusiness investment equities(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

Other extraordinary
gains / losses,
valuation
allowances, etc.

530,932
95,380

FY2021(April 1, 2021 - March 31, 2022)

Composition ratio(%)

Rate of change
(%)

18.65
3.35

7.25
18.59

Amount495,041
80,431

Composition ratio(%)

Rate of change
(%)

17.82
2.89

0.94
18.35
0.62

249,177

8.75

3.60

240,5268.66

1,233,670

43.33(0.69)

1,242,298

44.71

0.93

223,400

7.85

1.21

220,727

7.94(7.36)

514,270

18.06

2.97

499,451

17.98

2.27

2,846,830

100.002.46

2,778,476

100.000.85

50,4801.77(19.99)63,091

2.27(3.12)

Note: 1. The figures represent amounts before the elimination of internal transactions between segments.
2. Direct premiums written including deposit premiums from policyholders = Gross premiums written - Surrender benefits of direct policies - Other refunds of direct policies (including
deposit premiums from policyholders)

Strategy & Business Platform Supporting Our Purpose Story

Business
Unit
Profits*1

1. Consolidated Results of Operations
During the fiscal year 2022, the world economy remained on the recovery path that started in the fiscal year 2021. The pace of recovery,
however, slowed due to record price inflation caused by such factors as surging energy prices and supply constraints. The Japanese
economy gradually recovered, mainly driven by personal consumption, despite the impact of price inflation, due to the gradual relaxation of
restrictions relating to the spread of the novel coronavirus (COVID-19) and the ongoing normalization of economic activities.
Under these circumstances, as a result of our efforts to expand our domestic and overseas business, which is centered on non-life
insurance and life insurance, our consolidated results of operations for the fiscal year 2022 were as follows:
Ordinary income increased by 784.8 billion yen to 6,648.6 billion yen from the previous fiscal year, the main components of which were
Underwriting income of 5,634.8 billion yen and Investment income of 875.4 billion yen. Ordinary expenses increased by 848.3 billion yen to
6,144.6 billion yen from the previous fiscal year, the main components of which were Underwriting expenses of 4,666.0 billion yen,
Investment expenses of 203.9 billion yen, and Operating and general administrative expenses of 1,135.6 billion yen.
As a result, Ordinary profit decreased by 63.5 billion yen to 503.9 billion yen from the previous fiscal year.
Net income attributable to owners of the parent, composed of Ordinary profit plus Extraordinary gains minus Extraordinary losses andTotal income taxes, decreased by 44.0 billion yen to 376.4 billion yen from the previous fiscal year.

Net income determined in accordance with financial
accounting principles

Definition of Net Asset Value
Net Asset
Value*1

Net assets(consolidated)

Catastrophe
loss reserves

Contingency
reserves

Price
fluctuation
reserves*1: Each adjustment is on an after-tax basis.
*2: Net income attributable to owners of the parent in the consolidated
financial statements.
*3: In case of reversal, it is subtracted from the equation.
*4: Unearned fire insurance premiums corresponding to large natural
catastrophe risk.
*5: Premiums, minus a portion of net incurred losses and business
expenses, to be carried forward in preparation for an insured eventin the following year.

156

Goodwill and otherintangible fixed
assetsPlanneddistribution toshareholders

Value of life
insurance
policies
in-force

Other*6: Provision for the general underwriting reserves excluding
provision for unearned premiums.
*7: ALM: Asset Liability Management. Excluded since it is counterbalance of ALM related liabilities.
*8: Average balance basis*9: For the overseas life insurance companies, Business Unit Profit iscalculated by using the definition in Other businesses.

157

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Business Conditions
Net premiums written(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

FY2021(April 1, 2021 - March 31, 2022)

AmountComposition ratio(%)

Rate of change(%)

AmountComposition ratio(%)

Rate of change(%)

Fire and allied lines
Hull and cargo

438,566
85,019

17.13
3.32

14.42
15.57

383,292
73,565

15.54
2.98

1.78
19.75

Personal accident

192,583

7.52

10.72

173,932

7.05

4.04

1,228,971

48.01(0.60)

1,236,399

50.11

0.84

Compulsory automobile liability

225,269

8.80(3.18)

232,657

9.43(8.14)

Others389,614

15.22

6.05

367,379

14.89

2.76

Total

2,560,025

100.003.76

2,467,227

100.001.03

Voluntary automobile

Note: The figures represent amounts before the elimination of internal transactions between segments.

Net claims paid

(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

FY2021(April 1, 2021 - March 31, 2022)

AmountComposition ratio(%)

Rate of change(%)

AmountComposition ratio(%)

Fire and allied lines
Hull and cargo

273,740
39,386

18.85
2.71

22.65
(1.16)

223,186
39,84717.35
3.10(1.45)
4.78

Personal accident

102,314

7.04

25.78

81,3426.32

0.75

Voluntary automobile

664,930

45.78

10.55

601,476

46.74

2.16

Compulsory automobile liability

157,832

10.87(7.73)

171,063

13.29(8.49)

Others214,307

14.75

26.19

169,826

13.20

8.86

Total

1,452,510

100.0012.88

1,286,743

100.000.77

Rate of change
(%)

Yield
Income yield

IncomeAverage balance

Annual yield (%)

Average balance

Annual yield (%)

433,821
2

0.04
0.00

78
—

520,287
2

0.02
0.00

0

1,987

0.02

1

9,081

0.01

20

23,2600.09

4285,009

0.05

(0)

7,333

(0.00)

—

504

0.00

Securities

139,601

3,391,674

4.12

125,267

3,400,815

3.68

Loans

18,003410,926

4.38

11,380359,976

3.16

Land and buildings

5,693

207,706

2.74

7,763

210,223

3.69

Subtotal

163,5134,476,713

3.65

144,533

4,585,901

3.15

Others

2,531

—

—

635

—

—

Total

166,045——

145,168——

Money trusts

AmountAs of March 31, 2022

Composition ratio (%)

AmountComposition ratio (%)

IncomeNote: 1. The figures represent amounts before the elimination of internal transactions between segments.
2. Income is the sum of Interest and dividends and the amount equivalent to the Interest and dividends that is included in Gains on money trusts in the consolidated statement of income.
3. Average balance is, in principle, calculated based on the average of balances at the end of each month (on the basis of acquisition costs or amortized costs). Meanwhile, the balances
for Call loans, Receivables under resale agreements, and Monetary receivables bought are calculated based on the average of daily balances (on the basis of acquisition costs oramortized costs).

Realized yield(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)
Net investment
incomeBank deposits
Call loans
Receivables underresale agreements
Monetary receivables bought
Money trusts

9,847
—

FY2021(April 1, 2021 - March 31, 2022)

Average balance

Annual yield (%)

Net investment
incomeAverage balance

Annual yield (%)

433,821
2

2.27
0.00

10,174—

520,287
2

1.96
0.00

0

1,987

0.02

1

9,081

0.01

20

23,2600.09

4285,009

0.05

293

7,333

4.00

44

504

8.77

452,953

6.04

457,568

6.00

Securities

244,208

3,391,674

7.20

215,483

3,400,815

6.34

999

0.01

3,999

0.05

Loans

31,242410,926

7.60

24,365359,976

6.77

28,4750.38

46,6340.61

Land and buildings

5,693

207,706

2.74

7,763

210,223

3.69

8,000

0.11

—

—

(59,617)——(37,182)——

5,297,550

70.68

5,574,688

73.15

Others

2,905

—

—

6,350

—

—

Loans

481,547

6.43

387,837

5.09

Total

234,594

4,476,713

5.24

227,042

4,585,901

4.95

Land and buildings

204,5372.73

204,524

2.68

Bank deposits
Receivables underresale agreements
Monetary receivables bought
Money trusts
Securities

Total investment assets

6,474,064

86.38

6,675,254

87.59

Total assets

7,494,722

100.007,620,856

100.00Derivatives

Note: 1. The figures represent amounts before the elimination of internal transactions between segments.
2. Net investment income is the sum of Investment income and Investment income on deposit premiums in the consolidated statement of income less Investment expenses.
3. Average balance is, in principle, calculated based on the average of balances at the end of each month (on the basis of acquisition costs or amortized costs). Meanwhile, the balances
for Call loans, Receivables under resale agreements, and Monetary receivables bought are calculated based on the average of daily balances (on the basis of acquisition costs oramortized costs).

Strategy & Business Platform Supporting Our Purpose Story(Yen in millions)

As of March 31, 2023

FY2021(April 1, 2021 - March 31, 2022)

194—

Bank deposits
Call loans
Receivables underresale agreements
Monetary receivables bought

Note: The figures represent amounts before the elimination of internal transactions between segments.

Investment
Investment assets(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

Note: The figures represent amounts before the elimination of internal transactions between segments.

Securities(Yen in millions)

As of March 31, 2023

Domestic government bonds
Domestic municipal bonds

As of March 31, 2022

AmountComposition ratio (%)

AmountComposition ratio (%)

1,220,504
61,87623.04
1.17

1,322,222
79,13923.72
1.42

Domestic corporate bonds

520,867

9.83

571,797

10.26

Domestic equity securities

2,438,251

46.03

2,561,525

45.95

Foreign securities

1,030,826

19.46

1,013,321

18.18

Others25,2230.48

26,682

0.48

Total

5,297,550

100.005,574,688

100.00Note: The figures represent amounts before the elimination of internal transactions between segments.

158

159

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Business Conditions
Securities

Domestic Life Insurance BusinessIn the Domestic life insurance business, Ordinary income decreased by 14.7 billion yen to 699.6 billion yen from the previous fiscal year.
Ordinary profit decreased by 17.8 billion yen to 51.7 billion yen from the previous fiscal year. Figures pertaining to insurance underwriting
and investment in the Domestic life insurance business are as follows:
Underwriting
Total amount of business in force(Yen in millions)

As of March 31, 2023
Total

As of March 31, 2022

Rate of change (%)

Total

Rate of change (%)

Individual insurance

28,386,051(1.13)

28,711,080(0.95)

Individual annuities

1,878,882(4.32)

1,963,806(4.48)

Group insurance

1,912,540(3.35)

1,978,781(6.29)

Group annuities

2,768(9.96)

3,074(0.73)(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)
New business +Net increase on
conversion

New business

FY2021(April 1, 2021 - March 31, 2022)

Net increase on
conversion

New business +Net increase on
conversion

AmountComposition ratio (%)

AmountComposition ratio (%)

7,130,635
5,610

86.55
0.07

7,941,635
4,811

88.25
0.05

Domestic corporate bonds

528,776

6.42

502,226

5.58

Domestic equity securities

151

0.00

155

0.00

Foreign securities

385,454

4.68

382,393

4.25

Others188,125

2.28

167,832

1.87

Total

8,238,754

100.008,999,053

100.00Note: The figures represent amounts before the elimination of internal transactions between segments.

Yield
Income yield

New business

2,123,212

2,123,212—

2,216,007

2,216,007—

Individual annuities

—

—

—

—

—

—

Group insurance

25,09225,092—

18,856

18,856—

Group annuities

—

—

—

—

—

—

Note: 1. The figures represent amounts before the elimination of internal transactions between segments.
2. Amounts of individual annuities under new business represent the sums of annuity funds at the beginning of the annuity payment.
3. Amounts of group annuities under new business represent the first installment of premium payments.

IncomeAverage balance

Annual yield (%)

Bank deposits
Securities

0105,63185,026
8,254,471

0.00
1.28

0
105,577

61,534
8,628,882

0.00
1.22

Loans

13,885

243,558

5.70

10,821

219,698

4.93

—

1,025

0.00

—

629

0.00

Subtotal

119,517

8,584,081

1.39

116,398

8,910,745

1.31

Others

—

—

—

—

—

—

119,517——

116,398

—

—

Total

Note: 1. The figures represent amounts before the elimination of internal transactions between segments and exclude investment gains and assets on separate accounts specified in Article
118 of the Insurance Business Act.
2. Income represents Interest and dividends in the consolidated statement of income.
3. Average balance is, in principle, calculated based on the average of balances at the end of each month (on the basis of acquisition costs or amortized costs).

(Yen in millions)

Net investment
incomeAs of March 31, 2022
AmountComposition ratio (%)

74,5818,238,754

0.85
94.23

62,7738,999,053

0.67
95.50

254,472

2.91

231,505

2.46

833

0.01

912

0.01

Total investment assets

8,568,641

98.00

9,294,245

98.63

Total assets

8,743,102

100.009,423,469

100.00

FY2021(April 1, 2021 - March 31, 2022)
Net investment
incomeAverage balance

Annual yield (%)

Average balance

Annual yield (%)

61

85,0260.07

60

61,534

0.10

Securities

140,138

8,254,471

1.70

108,0828,628,882

1.25

Loans

13,822

243,558

5.68

10,816219,698

4.92

—

1,025

0.00

—

629

0.00

(19,356)——(3,601)

—

—

—

—

—

—

—

—

134,6658,584,081

1.57

115,358

8,910,745

1.29Bank deposits

Composition ratio (%)

Note: The figures represent amounts before the elimination of internal transactions between segments.

160

Annual yield (%)(Yen in millions)

As of March 31, 2023

Land and buildings

Average balance

FY2022(April 1, 2022 - March 31, 2023)

AmountLoans

IncomeRealized yield

Investment
Investment assets

Bank deposits
Securities

FY2021(April 1, 2021 - March 31, 2022)

Land and buildings
Derivatives
Others
Total

Strategy & Business Platform Supporting Our Purpose Story

Individual insurance(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

Land and buildings

Net increase on
conversion

As of March 31, 2022

Domestic government bonds
Domestic municipal bonds

Note: 1. The figures represent amounts before the elimination of internal transactions between segments.
2. Amounts of individual annuities represent the sums of funds to be held at the time annuity payments are to commence for an annuity for which payment has not yet commenced, andthe amount of underwriting reserves for an annuity for which payments have commenced.
3. Amounts of group annuities represent amounts of underwriting reserves.

Total amount of new business(Yen in millions)

As of March 31, 2023

Note: 1. The figures represent amounts before the elimination of internal transactions between segments and exclude investment gains and assets on separate accounts specified in Article
118 of the Insurance Business Act.
2. Net investment income represents Investment income in the consolidated statement of income less Investment expenses.
3. Average balance is, in principle, calculated based on the average of balances at the end of each month (on the basis of acquisition costs or amortized costs).

161

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Business Conditions
Yield
Income yield

International Insurance BusinessIn the International insurance business, Ordinary income increased by 699.9 billion yen to 2,964.7 billion yen from the previous fiscal year.
Ordinary profit decreased by 25.9 billion yen to 159.5 billion yen from the previous fiscal year. Figures pertaining to insurance underwriting
and investment in the International insurance business are as follows:
Underwriting
Net premiums written(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)
Composition ratio(%)

AmountFire and allied lines
Hull and cargo379,239
89,271

FY2021(April 1, 2021 - March 31, 2022)

Rate of change(%)

Amount

19.86
4.67

41.26
30.52

268,462
68,398Rate of change
(%)

18.90
4.81

19.64
40.53

Personal accident

35,347

1.85

11.78

31,623

2.23

5.96

Voluntary automobile

437,383

22.90

57.16

278,296

19.59

15.37

Others968,777

50.72

25.19

773,867

54.47

24.74

Total

1,910,019

100.0034.45

1,420,648

100.0021.99

Note: The figures represent amounts before the elimination of internal transactions between segments.

Net claims paid

IncomeAverage balance

Annual yield (%)

IncomeAverage balance

Annual yield (%)

3,071
90,030298,727
1,759,258

1.03
5.12

1,885
55,205299,932
1,395,272

0.63
3.96

Securities

174,658

4,817,815

3.63

150,587

4,005,751

3.76

Loans

140,078

1,767,610

7.92

91,914

1,354,823

6.78

1,000

97,9691.02

787

68,8001.14

Subtotal

408,839

8,741,382

4.68

300,381

7,124,579

4.22

Others

2,088

—

—

1,133

—

—

Total

410,927——

301,515——

Note: 1. The figures represent amounts before the elimination of internal transactions between segments. Securities on the consolidated balance sheet includes shares of affiliates accounted
for by the equity method. However, these shares have been excluded from calculations of average balance and annual yield.
2. Income represents Interest and dividends in the consolidated statement of income.
3. Average balance is calculated based on average balances at the beginning and end of each fiscal year (acquisition costs or amortized costs).

Realized yield

Composition ratio(%)

AmountFY2021(April 1, 2021 - March 31, 2022)

Rate of change(%)

AmountComposition ratio(%)

Rate of change(%)(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

FY2021(April 1, 2021 - March 31, 2022)

Bank deposits
Monetary receivables boughtLand and buildings

Composition ratio(%)(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)

Net investment
incomeFY2021(April 1, 2021 - March 31, 2022)

Average balance

Annual yield (%)

Net investment
incomeAverage balance

Annual yield (%)

0.11

Bank deposits
Receivables underresale agreements
Monetary receivables bought

31

298,7270.01

330

299,932

2,531

—

—

—

—

—

81,777

1,759,258

4.65

54,0881,395,272

3.88

153,486
34,184

18.25
4.06

2.35
29.56

149,966
26,385

22.42
3.95

29.48
35.26

Securities

142,084

4,817,815

2.95

177,482

4,005,751

4.43

Personal accident

14,7131.75(2.33)

15,065

2.25

17.57

Loans

127,133

1,767,610

7.19

87,057

1,354,823

6.43

Voluntary automobile

223,401

26.56

50.01

148,923

22.27

6.76

Land and buildings

1,000

97,9691.02

787

68,800

1.14

Others415,272

49.38

26.43

328,448

49.11

9.90

Derivatives(13,254)

—

—

1,683

—

—

Total

841,058

100.0025.76

668,789

100.00

14.03

Others

2,466

—

—

9,944

—

—

Total

343,770

8,741,382

3.93

331,373

7,124,579

4.65

Note: The figures represent amounts before the elimination of internal transactions between segments.

Investment
Investment assets(Yen in millions)

As of March 31, 2023

As of March 31, 2022

AmountComposition ratio (%)

AmountComposition ratio (%)

Bank deposits
Monetary receivables bought

307,035
1,835,348

2.63
15.75

290,414
1,583,889

2.82
15.38

Securities

4,951,147

42.48

4,712,188

45.76

Loans

2,011,498

17.26

1,521,656

14.78

121,875

1.05

74,062

0.72

Total investment assets

9,226,906

79.17

8,182,211

79.45

Total assets

11,654,160

100.00

10,298,239

100.00Land and buildings

Note: 1. The figures represent amounts before the elimination of internal transactions between segments. Securities on the consolidated balance sheet includes shares of affiliates accounted
for by the equity method. However, these shares have been excluded from calculations of average balance and annual yield.
2. Net investment income represents Investment income in the consolidated statement of income less Investment expenses.
3. Average balance is calculated based on average balances at the beginning and end of each fiscal year (acquisition costs or amortized costs).

Note: The figures represent amounts before the elimination of internal transactions between segments.

(Reference) Total for All Businesses
Direct premiums written (including deposit premiums from policyholders)(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)
AmountFire and allied lines
Hull and cargo
Personal accident
Voluntary automobile
Compulsory automobile liability

1,097,688
218,315

FY2021(April 1, 2021 - March 31, 2022)

Composition ratio(%)

Rate of change
(%)

21.39
4.25

18.49
23.87

Amount926,362
176,248

Composition ratio(%)

Rate of change
(%)

20.39
3.88

12.23
28.54
2.80

288,737

5.63

4.56

276,149

6.08

1,665,800

32.46

8.45

1,536,050

33.81

3.64

223,400

4.35

1.21

220,727

4.86(7.36)

Others1,637,835

31.92

16.40

1,407,059

30.97

15.41

Total
Deposit premiums frompolicyholders

5,131,778

100.0012.97

4,542,598

100.008.92

50,4800.98(19.99)63,091

1.39(3.12)

Strategy & Business Platform Supporting Our Purpose Story

Fire and allied lines
Hull and cargo

Note: 1. Figures are amounts after the elimination of internal transactions with other operating segments.
2. Direct premiums written including deposit premiums from policyholders = Gross premiums written - Surrender benefits of direct policies - Other refunds of direct policies (including
deposit premiums from policyholders)

162

163

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Business Conditions

Consolidated Financial Statements

Net premiums written(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)
AmountFY2021(April 1, 2021 - March 31, 2022)

Composition ratio(%)

Rate of change(%)

Amount(1) Consolidated Balance Sheet(Yen in millions)Composition ratio(%)

Rate of change(%)

Notes No.

AssetsCash and bank deposits

Fire and allied lines
Hull and cargo

817,805
174,291

18.30
3.90

25.48
22.77

651,754
141,964

16.76
3.65

8.45
28.94

Personal accident

227,923

5.10

10.89

205,548

5.29

4.34

Monetary receivables bought

1,666,353

37.28

10.01

1,514,695

38.96

3.23

Money trusts

225,269

5.04(3.18)

232,657

5.98(8.14)

Voluntary automobile
Compulsory automobile liability

3,999

1,863,824

1,630,523

8,000

—

Securities*2*4*618,489,522

19,288,018*3*4*72,576,446

2,008,708*1

399,817344,703Land

132,547

133,930

Buildings

204,194

155,392

1,358,345

30.39

19.03

1,141,201

29.35

16.70

Loans

4,469,989

100.0014.97

3,887,821

100.007.80

Tangible fixed assets(Yen in millions)

FY2022(April 1, 2022 - March 31, 2023)
AmountComposition ratio(%)

Rate of change(%)

AmountConstruction in progress

4,919

5,650

Other tangible fixed assets

58,15549,729Intangible fixed assets

FY2021(April 1, 2021 - March 31, 2022)
Composition ratio(%)

Rate of change(%)

Fire and allied lines
Hull and cargo

427,226
73,482

18.63
3.20

14.49
11.07

373,153
66,158

19.08
3.38

9.02
15.15

Personal accident

116,804

5.09

21.35

96,257

4.92

3.11

Voluntary automobile

888,330

38.74

18.38

750,399

38.38

3.04

Compulsory automobile liability

157,832

6.88(7.73)

171,063

8.75(8.49)

Others629,573

27.45

26.35

498,275

25.48

9.55

Total

2,293,251

100.0017.28

1,955,306

100.004.95

Note: Figures are amounts after the elimination of internal transactions with other operating segments.

3. Production, Orders and Sales
There is no applicable information due to the nature of the business as an insurance holding company.

Preparation of Consolidated Financial Statements
The accompanying consolidated financial statements have been prepared in accordance with the Regulation on Terminology, Forms andPreparation Methods of Consolidated Financial Statements (Ministry of Finance Ordinance No. 28, 1976, hereinafter referred to as"Consolidated Statements Regulation"). The consolidated financial statements have been also prepared in conformity with the Enforcement
Regulations for the Insurance Business Act (Ministry of Finance Ordinance No. 5, 1996, hereinafter referred to as "Insurance Act
Enforcement Regulations"), as stipulated under Articles 46 and 68 of the Consolidated Statements Regulation.
The Company and its domestic consolidated subsidiaries maintain their accounts and records in accordance with the provisions set forthin the Companies Act of Japan and the Financial Instruments and Exchange Act of Japan, and in conformity with accounting principles
generally accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Financial
Reporting Standards.
Amounts of less than 1 million yen have been omitted in the consolidated financial statements. As a result, the provided total balance does
not necessarily agree with the sum of the individual account balances.

1,165,860

1,082,579

Software

224,927

157,580

Goodwill

428,601

453,433

Other intangible fixed assets

512,330

471,565

2,262,950

1,996,932

Other assets
Net defined benefit assets

3,717

4,523

Deferred tax assets

77,80046,252Customers' liabilities under acceptances and guarantees
Allowance for doubtful accounts
Total assets
Liabilities
Insurance liabilities

1,759

1,878

(22,876)(11,089)

27,699,816

27,245,852

20,807,869

19,246,028

Outstanding claims*44,287,286

3,609,687

Underwriting reserves*4

16,520,582

15,636,341

Corporate bonds

222,811219,795

Other liabilities

2,376,340

2,945,481

461,324

1,157,261

1,915,015

1,788,219

Net defined benefit liabilities

255,437

259,198

Provision for employees' bonus

97,55985,893

Provision for share awards

3,401

3,410

Reserves under special laws

132,394

138,331

Reserve for price fluctuation

132,394

138,331

137,746

264,754

Negative goodwill

6,645

8,453

Acceptances and guarantees

1,759

1,878

24,041,966

23,173,226

Payables under securities lending transactions
Other liabilities

Deferred tax liabilities

Total liabilities*4*10

Strategy & Business Platform Supporting Our Purpose Story

2. Cash Flows
Cash flows for the fiscal year 2022 were as follows:
Net cash provided by operating activities decreased by 94.6 billion yen to 1,007.5 billion yen compared to the previous fiscal year, mainly
due to an increase in claim payments. Net cash provided by investing activities increased by 683.6 billion yen to 18.1 billion yen, mainly due
to an increase in Proceeds from sales and redemption of securities. Net cash used in financing activities increased by 504.5 billion yen to
1,009.2 billion yen, mainly due to a decrease in Change in cash collateral under securities lending transactions for procurement of funds.
As a result, Cash and cash equivalents at end of year was 985.3 billion yen, an increase of 73.1 billion yen from that as of March 31, 2022.

848,819*4

Total

Net claims paid

871,993

As of March 31, 2022

999

OthersNote: Figures are amounts after the elimination of internal transactions with other operating segments.

*4

Receivables under resale agreements

As of March 31, 2023

Net assets
Shareholders' equity
Share capital
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedge transactions
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

150,000

150,000

2,042,054

1,954,445(28,056)(13,179)

2,163,998

2,091,265

954,650

1,835,605(8,755)(1,551)535,662

110,335(14,471)(15,011)

1,467,085

1,929,376

33
26,731

33
51,9493,657,849

4,072,625

27,699,816

27,245,852

The accompanying notes are an integral part of the consolidated financial statements.

164

165

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Consolidated Financial Statements
Consolidated Statement of Comprehensive Income(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Note No.

Consolidated Statement of Income(Yen in millions)

Notes No.

*1
*1

*1

*2

*3

*4

FY2022(April 1, 2022 – March 31, 2023)

FY2021(April 1, 2021 – March 31, 2022)

6,648,600
5,634,811
4,469,989
50,48032,893
1,071,645
9,802
875,494
690,474
293—
184,521
2,932—
30,164(32,893)138,295
1,807
136,487
6,144,693
4,666,080
2,293,251
171,018
850,155
153,4722
521,666
297,831373,599
5,081
203,996
4,578
63,483
15,816
1,292
92,197
2,369
24,2591,135,646
138,970
13,953
11,646394
104,887
8,088
503,907
34,035
7,840
5,936
5,936
20,258
8,584
4,616
3,740
—
—
228
529,358
176,548
3,179
179,727
349,630(26,817)
376,447

5,863,770
4,988,607
3,887,821
63,091
34,238996,288
7,167
738,186
560,08244
22,553
131,947
3,962
13,53340,301(34,238)
136,976
10,229126,747
5,296,357
4,184,455
1,955,306
160,775
748,881180,5163
436,693
219,809477,046
5,421
88,364—23,326
13,176
2,069
38,946—
10,845
1,002,477
21,060
8,398
71
339
3,034
9,215
567,413
3,470
3,470
—
—
—
16,611
3,374
764
10,324
10,3242,148
554,272
180,191(36,333)
143,858
410,414(10,070)
420,484

FY2021(April 1, 2021 – March 31, 2022)

349,630

410,414(890,153)(79,398)

Net income
Other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedge transactions
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for by the equity method(7,203)(4,339)437,698258,238562(1,295)(6,947)

7,161(466,042)

180,366(116,412)

590,780

Owners of the parent(85,843)

601,393

Non-controlling interests(30,569)(10,613)

Total other comprehensive income＊

Total comprehensive income
Comprehensive income attributable to:

The accompanying notes are an integral part of the consolidated financial statements.

(3) Consolidated Statement of Changes in Shareholders' Equity
FY2022 (April 1, 2022 – March 31, 2023)(Yen in millions)Shareholders' equity
Share capital

Beginning balance
Changes during the year
Dividends
Net income attributable to owners of the parent

Retained earnings

150,000

Total shareholders' equity(13,179)

2,091,265(192,151)
376,447

Purchases of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Changes in the scope of consolidation
Changes in equity resulted from increase incapital of consolidated subsidiaries
OthersNet changes in items other than shareholders' equity
Total changes during the year
Ending balance

Treasury stock

1,954,445(192,151)
376,447(111,691)
688
96,126

0(96,126)—
150,000(111,691)
688
—
—

(49)

(49)

(509)

(509)

87,6092,042,054(14,876)(28,056)

72,732
2,163,998

Accumulated other comprehensive income
Unrealized
gains (losses) on
available-for-salesecurities

Deferred
gains (losses)on hedgetransactions

Foreigncurrencytranslation
adjustments

Beginning balance
Changes during the year
Dividends
Net income attributable to owners of the parent
Purchases of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Changes in the scope of consolidation
Changes in equity resulted from increase incapital of consolidated subsidiaries
OthersNet changes in items other than shareholders' equity

1,835,605(1,551)

110,335(880,954)(7,203)425,326

540—(25,217)

Total changes during the year

(880,954)(7,203)425,326

540—(25,217)(414,775)

Ending balance

954,650(8,755)535,662(14,471)

33

26,731

3,657,849

Stock
Non-controlling
Remeasurements
Total net assets
acquisition rights
interestsof defined
benefit plans(15,011)33

51,949Strategy & Business Platform Supporting Our Purpose Story

Ordinary income
Underwriting income
Net premiums written
Deposit premiums from policyholders
Investment income on deposit premiums
Life insurance premiums
Other underwriting income
Investment income
Interest and dividends
Gains on money trusts
Gains on trading securities
Gains on sales of securities
Gains on redemption of securities
Investment gains on separate accounts
Other investment income
Transfer of investment income on deposit premiums
Other ordinary income
Amortization of negative goodwill
Other ordinary income
Ordinary expenses
Underwriting expenses
Net claims paid
Loss adjustment expenses
Agency commissions and brokerage
Maturity refunds to policyholders
Dividends to policyholders
Life insurance claims
Provision for outstanding claims
Provision for underwriting reserves
Other underwriting expenses
Investment expenses
Losses on trading securities
Losses on sales of securities
Impairment losses on securities
Losses on redemption of securities
Losses on derivatives
Investment losses on separate accounts
Other investment expenses
Operating and general administrative expenses
Other ordinary expenses
Interest expenses
Increase in allowance for doubtful accounts
Losses on bad debts
Equity in losses of affiliates
Other ordinary expenses
Ordinary profit
Extraordinary gains
Gains on disposal of fixed assets
Reversal of reserves under special laws
Reversal of reserve for price fluctuation
Other extraordinary gains
Extraordinary losses
Losses on disposal of fixed assets
Impairment losses on fixed assets
Provision for reserves under special laws
Provision for reserve for price fluctuation
Other extraordinary losses
Income before income taxes and non-controlling interests
Income taxes–current
Income taxes–deferred
Total income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of the parent(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

4,072,625(192,151)
376,447(111,691)
688
—
—
(49)
(509)
(487,508)

The accompanying notes are an integral part of the consolidated financial statements.

166

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Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Consolidated Financial Statements
FY2021 (April 1, 2021 – March 31, 2022)(Yen in millions)Shareholders' equity
Share capital

Beginning balance
Changes during the year
Dividends
Net income attributable to owners of the parent
Purchases of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Changes in the scope of consolidation
Changes in equity resulted from increase incapital of consolidated subsidiaries
OthersNet changes in items other than shareholders' equity

150,000

Total changes during the year
Ending balance—
150,000

Retained earnings

Treasury stock

1,788,764

1,915,553(151,661)
420,484

Notes No.

Cash flows from operating activities
Income before income taxes and non-controlling interests
Depreciation(151,661)
420,484(93,736)
772
—
1,540

(93,736)869
102,898(0)(0)(1,686)(1,686)

165,680
1,954,445

10,031(13,179)

175,7122,091,265

Accumulated other comprehensive income

Total changes during the year
Ending balance

Deferred
gains (losses)on hedgetransactions

Foreigncurrencytranslation
adjustments

1,908,438

2,787(149,098)

Stock
Remeasurements
acquisition rights
of defined
benefit plans(13,661)

2,379

Non-controllinginterests

Total net assets

56,3803,722,780(151,661)
420,484(93,736)
772
—
1,540
(0)

(72,833)(4,339)259,433(1,350)(2,345)(4,431)(1,686)
174,132(72,833)(4,339)259,433(1,350)(2,345)(4,431)

349,845

1,835,605(1,551)

110,335(15,011)33

51,9494,072,625

The accompanying notes are an integral part of the consolidated financial statements.

FY2022(April 1, 2022 – March 31, 2023)

529,358
112,514

FY2021(April 1, 2021 – March 31, 2022)

554,272
89,754

Impairment losses on fixed assets

3,740

764

Amortization of goodwill

80,692

72,152

Amortization of negative goodwill
Increase (decrease) in outstanding claims(1,807)
334,838(10,229)
241,282

Increase (decrease) in underwriting reserves

491,149

529,601

Increase (decrease) in allowance for doubtful accounts

11,020(600)

Increase (decrease) in net defined benefit liabilities(4,914)

2,078

Increase (decrease) in provision for employees' bonus
Increase (decrease) in provision for share awards

3,106
465

5,336
3,410

Increase (decrease) in reserve for price fluctuation
Interest and dividends(5,936)(690,474)

10,324(560,082)

Losses (gains) on securities(120,237)(118,255)

Interest expenses
Foreign exchange losses (gains)

13,953(20,254)8,398(26,178)(3,224)(601)

Equity in losses (earnings) of affiliates
Investment losses (gains) on separate accounts

104,887
2,369

3,034
(13,533)

Decrease (increase) in other assets (other than investing and financing activities)(165,628)(68,773)

Increase (decrease) in other liabilities (other than investing and financing activities)(119,937)

52,765Losses (gains) on tangible fixed assets

OthersSubtotalInterest and dividends received
Interest paid
Income taxes paid
OthersNet cash provided by (used in) operating activities (a)Cash flows from investing activities
Net decrease (increase) in deposits

18,841

427

574,521775,350

665,382(12,829)(225,446)

552,023(8,788)(223,279)

5,954

6,934

1,007,582

1,102,240

18,569228

Purchases of monetary receivables bought(516,140)(625,850)

Proceeds from sales and redemption of monetary receivables bought

296,315474,800

Increase in money trusts(8,000)—Decrease in money trusts

—

2,421

Purchases of securities
Proceeds from sales and redemption of securities(2,015,966)
2,647,425(2,255,729)
2,046,983

Payments for issuance of loans(1,000,890)(864,335)

Proceeds from collection of loans

697,998

650,557

Others(95,355)(70,711)23,956(641,634)

Subtotal (b)1,031,538

460,606

Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets(24,877)
18,798(29,050)
5,240

Purchases of shares of subsidiaries resulting in change in the scope of consolidation(26,111)—

Sales of shares of subsidiaries resulting in change in the scope of consolidation

26,428—18,193(665,444)(a) + (b)Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from borrowings

15,56534,506

Repayments of borrowings
Proceeds from issuance of short-term corporate bonds(13,347)
9,999(42,350)
9,999

Redemption of short-term corporate bonds(10,000)(10,000)(48)(12,705)

Change in cash collateral under securities lending transactions(695,937)(351,789)

Purchases of treasury stock(111,691)(93,736)

Dividends paid

(192,008)(151,571)

Redemption of corporate bonds

Dividends paid to non-controlling shareholders
Proceeds from share issuance to non-controlling shareholders
Purchases of shares of subsidiaries not resulting in change in the scope of consolidation

(707)

(681)

11,091(5,060)6,794—(17,081)

106,903(1,009,226)(504,629)

Effect of exchange rate changes on cash and cash equivalents

56,61559,659Net increase (decrease) in cash and cash equivalents

73,165(8,174)

Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries fromconsolidation
Cash and cash equivalents at end of year

912,216

924,687

OthersNet cash provided by (used in) financing activities*1—(4,295)985,382

912,216

Strategy & Business Platform Supporting Our Purpose Story

Beginning balance
Changes during the year
Dividends
Net income attributable to owners of the parent
Purchases of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Changes in the scope of consolidation
Changes in equity resulted from increase incapital of consolidated subsidiaries
OthersNet changes in items other than shareholders' equity

Unrealized
gains (losses) on
available-for-salesecurities(Yen in millions)

Total shareholders' equity(23,211)(97)(102,898)
1,540(4) Consolidated Statement of Cash FlowsThe accompanying notes are an integral part of the consolidated financial statements.

168

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Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements

Significant Accounting Policies
1. Scope of consolidation(1) Number of consolidated subsidiaries: 172 companies
For details of the Company’s major consolidated subsidiaries, please refer to "Tokio Marine Holdings and its Subsidiaries" in"Corporate Data".
Standard Security Life Insurance Company of New York and four other companies are included in the scope of consolidationfrom the fiscal year 2022 due to the acquisition of shares, etc.
Chestnut Investors IV, Inc. and two other companies are excluded from the scope of consolidation from the fiscal year 2022 dueto the liquidation, etc.
(2) Names of major non-consolidated subsidiaries(Names of major non-consolidated subsidiaries)
Tokio Marine & Nichido Adjusting Service Co., Ltd.
Tokio Marine Life Insurance (Thailand) Public Company Limited(Reason for exclusion from the scope of consolidation)
Each non-consolidated subsidiary is small in scale in terms of total assets, sales, net income or loss and retained earnings. As suchnon-consolidated subsidiaries are not considered to materially affect any reasonable determination as to the Group's financial
condition and results of operations, these companies are excluded from the consolidation.
2. Application of the equity method(1) Number of non-consolidated subsidiaries and affiliates accounted for by the equity method: 9 companies
For details of major affiliates accounted for by the equity method, please refer to "Tokio Marine Holdings and its Subsidiaries" in"Corporate Data".
Newa Insurance (Cambodia) Plc. is included in the application of the equity method from the fiscal year 2022 due to the capitalincrease to Tokio Marine Newa Insurance Co., Ltd.

(3) The Company owns 30.1% of the total voting rights of Japan Earthquake Reinsurance Co., Ltd. through Tokio Marine & Nichido andNisshin Fire. However, the Company does not consider Japan Earthquake Reinsurance Co., Ltd. to be its affiliate since it cannot exert
a significant influence on any decision making of its policies given the highly public nature of their business.
(4) When a company accounted for by the equity method has a different closing date from that of the Company, in principle, the financial
statements prepared at its closing date are used for presentation in the consolidated financial results.
3. Balance sheet date of consolidated subsidiaries
There are one domestic subsidiary and 162 overseas subsidiaries whose balance sheet dates are December 31. The consolidated
financial statements incorporate the results of these subsidiaries for the period ended December 31. Necessary adjustments for the
consolidation are made for material transactions that occur during the three-month lag between the balance sheet dates of thesesubsidiaries and the consolidated balance sheet date.
4. Accounting policies(1) Accounting for insurance contracts
Accounting for insurance contracts such as insurance premiums, outstanding claims and underwriting reserves of domestic
consolidated insurance subsidiaries is stipulated under Insurance Business Act and other laws and regulations.
(2) Valuation of securities
a. Trading securities are measured at fair value, with the costs of their sales being calculated based on the moving-average method.
b. Bonds held to maturity are recorded at amortized cost based on the moving-average method (straight-line method).
c. Bonds earmarked for underwriting reserves are stated at amortized cost under the straight-line method in accordance with theIndustry Audit Committee Report No. 21 "Temporary Treatment of Accounting and Auditing Concerning Securities Earmarked for
Underwriting Reserve in Insurance Industry" (issued by the Japanese Institute of Certified Public Accountants (the "JICPA"),
November 16, 2000).
The following is a summary of the risk management policy concerning bonds earmarked for underwriting reserves.
In order to adequately manage interest rate risk related to assets and liabilities, Tokio Marine & Nichido Life has established"part of underwriting reserve for individual insurance policies (non-participating or participating)" as an underwriting reserve
subgroup. Tokio Marine & Nichido Life's policy is to match the duration of the underwriting reserve in the subgroup with the sameor similar duration of bonds that are earmarked for underwriting reserves.

170(3) Valuation of derivative transactions
Derivative financial instruments are measured at fair value.
(4) Depreciation methods for material depreciable assets
a. Tangible fixed assets
Depreciation of tangible fixed assets is calculated using the straight-line method.
b. Intangible fixed assets
Intangible fixed assets recognized in acquisitions of overseas subsidiaries are amortized over the estimated useful life reflecting
the pattern of the assets' future economic benefits.
(5) Accounting policies for significant reserves and allowancesa. Allowance for doubtful accounts
In order to prepare for the losses from bad debts, allowances are provided pursuant to the rules of asset self-assessment and therules of asset write-off. Allowances are provided by major domestic consolidated subsidiaries as follows:
For receivables from any debtor who has legally, or in practice, become insolvent (due to bankruptcy, special liquidation orsuspension of transactions with banks based on the rules governing clearing houses, etc.) and for receivables from any debtor who
has substantially become insolvent, allowances are provided based on the amount of any such receivables deducting the amount
expected to be collectible calculated based on the disposal of collateral or execution of guarantees.
For receivables from any debtor who is likely to become insolvent in the near future, allowances are provided based on theamount of any such receivables deducting the amount expected to be collectible through the disposal of collateral or execution ofguarantees and the overall solvency assessment of the relevant debtor.
For receivables other than those described above, allowances are the amount of receivables multiplied by the default rate,
which is calculated based on historical default experience in certain previous periods.
In addition, all receivables are assessed by the asset accounting department and the asset management department inaccordance with the rules of asset self-assessment. Subsequently, the asset auditing departments, which are independent fromother asset-related departments, conduct audits of the assessment results of the other asset-related departments. Allowances areprovided based on such assessment results as stated above.
b. Provision for employees' bonus
To provide for payment of bonuses to employees, the Company and its major consolidated domestic subsidiaries recognize
Provisions for employees' bonus based on the expected amount to be paid.
c. Provision for share awards
To provide the Company's shares to Directors and Executive Officers pursuant to the share delivery rules, the Company
recognizes Provision for share awards based on the expected amount of obligation as of the end of the fiscal year 2022.
d. Reserve for price fluctuation
Domestic consolidated insurance subsidiaries recognize reserves in accordance with Article 115 of the Insurance Business Act inorder to provide for possible losses or damages arising from fluctuation of share prices, etc.

Strategy & Business Platform Supporting Our Purpose Story(2) The non-consolidated subsidiaries (Tokio Marine & Nichido Adjusting Service Co., Ltd., Tokio Marine Life Insurance (Thailand) PublicCompany Limited, etc.) and other affiliates (Alinma Tokio Marine Company, etc.) are not accounted for by the equity method because
these companies have an immaterial effect on the Company's consolidated net income or loss as well as consolidated retained
earnings.

d. Available-for-sale securities (except for securities without a market price) are measured at fair value. Unrealized gains/losses onavailable-for-sale securities are included in net assets, and the costs of sales are calculated using the moving-average method.
e. Securities without a market price in available-for-sale securities are stated at original cost by the moving-average method.
f. Securities held in individually managed money trusts that are mainly invested in securities for trading are measured at fair value.

(6) Accounting methods for retirement benefitsa. The method of attributing expected retirement benefits to periods
In calculating the retirement benefit obligations, the method of attributing expected retirement benefits to periods is based on thebenefit formula basis.
b. The method of amortization of actuarial gains and losses and past service costs
Actuarial gains and losses for each fiscal year are amortized proportionally from the following fiscal year using the straight-line
method over a certain number of years (5 to 13 years) within the average remaining work period of employees at the time ofoccurrence.
Past service costs are amortized by the straight-line method over a certain number of years (7 to 13 years) within the averageremaining work period of employees at the time of occurrence.
(7) Consumption taxes
For the Company and its domestic consolidated subsidiaries, consumption taxes are accounted for by the tax-excluded method
except for costs such as Operating and general administrative expenses incurred by domestic consolidated insurance subsidiaries
which are accounted for by the tax-included method.
In addition, any non-deductible consumption taxes, in respect of assets, are included in Other assets and are amortized over five
years using the straight-line method.

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Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements(8) Hedge accounting
a. Interest rate
To mitigate interest rate fluctuation risks associated with long-term insurance policies, Tokio Marine & Nichido and Tokio Marine &Nichido Life conduct Asset Liability Management ("ALM") to control such risks by evaluating and analyzing financial assets andinsurance liabilities simultaneously.
As for interest rate swaps that are used to manage such risks, Tokio Marine & Nichido and Tokio Marine & Nichido Life apply
deferred hedge accounting to the swaps based upon the Industry Committee Practical Guideline No. 26, "Accounting and Auditing
Treatments related to Application of Accounting for Financial Instruments in the Insurance Industry" (issued by the JICPA, March
17, 2022).
Assessment of hedge effectiveness is omitted because the companies group hedged insurance liabilities with the interest rate
swaps that are the hedging instruments, based on the period remaining for the instruments, and the hedge is highly effective.
b. Foreign exchange
Major domestic consolidated insurance subsidiaries apply fair value hedge accounting, deferred hedge accounting or assignment
accounting for certain foreign exchange forwards and certain currency swaps used to reduce future currency risk such as in assets
denominated in foreign currency. Assessment of hedge effectiveness is omitted because the principal terms of the hedging
instruments and the hedged items are identical and the hedge is highly effective.
(9) Methods and periods of amortization of goodwill
Regarding goodwill recognized as an asset on the consolidated balance sheet, goodwill in connection with Philadelphia Consolidated
Holding Corp. is amortized over 20 years using the straight-line method. Goodwill in connection with HCC Insurance Holdings, Inc. isamortized over 10 years using the straight-line method. Goodwill in connection with Privilege Underwriters, Inc. is amortized over 15
years using the straight-line method. Other goodwill is amortized over 5 to 15 years using the straight-line method. Other goodwill insmall amounts is amortized immediately.
Negative goodwill incurred before March 31, 2010 and recognized as a liability on the consolidated balance sheet is amortizedover 20 years using the straight-line method.

Items including accounting estimates that could have a significant impact on the financial condition or results of operations of the Company
and its consolidated subsidiaries are as follows:
1. Outstanding claims(1) The carrying amount shown on the consolidated balance sheet as of March 31, 2023

(Yen in millions)

Outstanding claims

As of March 31, 2023

As of March 31, 2022

4,287,286

3,609,687(2) Information on the significant accounting estimatesa. Calculation method
Outstanding claims are estimated as the amount of claims, refunds and other benefits (hereinafter referred to as "Claims") deemed
to have resulted in an obligation under an insurance contract that have not yet been paid.
b. Key assumptions used in the calculations
Outstanding claims are estimated based on the ultimate settlement of Claims by using the assumptions calculated mainly from
historical payment experience.
c. Impact on the consolidated financial statements for the following fiscal year
Due to the revision of laws and regulations or court decisions, etc., the ultimate settlement of Insurance Claims may change fromthe initial estimate, and the amount recorded for outstanding claims may increase or decrease.
2. Impairment of goodwill(1) The carrying amount shown on the consolidated balance sheet as of March 31, 2023

Goodwill(Yen in millions)

As of March 31, 2023

As of March 31, 2022

428,601

453,433(2) Information on the significant accounting estimatesa. Calculation method
Impairment of goodwill is recognized mainly in accordance with the procedures for identifying indications of impairment, assessing
the recognition of an impairment loss and measuring an impairment loss for each unit to which goodwill is attributed (hereinafterreferred to as "Reporting unit") whose performance is reported independently for the Company's management purpose.
First, for each Reporting unit, the Company assesses if indications of impairment are identified, such as deterioration in thelatest operating results and future prospects, a significant negative deviation compared to the business plan at the time ofacquisition, or significant adverse changes in the business environment including market conditions. For Reporting units for whichindications of impairment were identified, an impairment loss is recognized if the total amount of undiscounted future cash flows is
less than the book value of goodwill. For Reporting units for which recognition of an impairment loss is deemed necessary, thebook value of goodwill shall be reduced to the recoverable amount which is calculated by discounting future cash flows, andrecognizes the reduced amount as impairment loss.
b. Key assumptions for the calculations
Future cash flows and discount rates are used to calculate impairment loss on goodwill.
Future cash flows are estimated based on the latest rational business plan, taking into account the growth, etc., based on thebusiness environment of each Reporting unit.
The discount rate is the pre-tax interest rate, which is the cost of capital plus necessary adjustments such as interest rate
differentials.
c. Impact on the consolidated financial statements for the following fiscal year

Strategy & Business Platform Supporting Our Purpose Story(10) Scope of Cash and cash equivalents on the consolidated statement of cash flows
Cash and cash equivalents on the consolidated statement of cash flows consist of cash on hand, demand deposits and short-term
investments such as time deposits with original maturities or redemption of three months or less at the date of acquisition.

Significant Accounting Estimates

An impairment loss may be incurred if undiscounted future cash flows significantly decline due to, for example, a significant
deterioration in profitability from the assumption at the time of acquisition and a significant downward deviation from the businessplan.
3. Market value evaluation of financial instruments(1) The carrying amount shown on the consolidated balance sheet as of March 31, 2023
Please refer to "Information on Financial Instruments".
(2) Information on significant accounting estimatesa. Calculation method and Key assumptions for the calculations
With regards to the calculation method of the fair value of financial instruments and key assumptions for the calculations, pleaserefer to "Information on Financial Instruments-2. Fair value of financial instruments and breakdown by input level (Note 1)".
b. Impact on the consolidated financial statements for the following fiscal year
Key assumptions may change due to changes in the market environment, and the fair value of financial instruments may increaseor decrease.

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Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements

Accounting Standards Not Yet Adopted by the Company

Notes to Consolidated Balance Sheet• Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries, etc. for Consolidated Financial
Statements (Practical Issue Task Force ("PITF") No. 18, September 14, 2018)• Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method(PITF No. 24, September 14, 2018)*1. Accumulated depreciation of tangible fixed assets and advanced depreciation of tangible fixed assets, deducted from acquisition costs
are as follows:

1. Overview
The Accounting Standards Board of Japan ("ASBJ") has revised PITF No. 18 "Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries, etc. for Consolidated Financial Statements" and PITF No. 24 "Practical Solution on Unification of
Accounting Policies Applied to Associates Accounted for Using the Equity Method". The major amendments are as follows:
For overseas subsidiaries that present subsequent changes in fair value of investment in equity instruments in Other comprehensive
income, when investments in the equity instruments are sold, an adjustment is to be made to recognize the difference between theacquisition cost and sales price as a gain or loss for the corresponding fiscal year within the consolidation process, in accordance with theTentative Practical Solution of "Unification of Accounting Policies Applied to Foreign Subsidiaries, etc. for the Consolidation Process".
For overseas subsidiaries that need to recognize any asset impairment, an adjustment is to be made to recognize the valuationdifference as a loss for the corresponding fiscal year within the consolidation process.

(Yen in millions)

As of March 31, 2023

As of March 31, 2022

Accumulated depreciation

406,178

381,710

Advanced depreciation of tangible fixed assets

17,313

17,887*2. Securities of non-consolidated subsidiaries and affiliates are as follows:

Securities (equity)
Securities (partnership)(Yen in millions)

As of March 31, 2023

As of March 31, 2022

174,645
26,229187,720
24,849*3. The total amount of bankrupt or de facto bankrupt assets, doubtful assets, loans past due for three months or more, and restructuredloans among the assets under the Insurance Business Acts are as follows:(Yen in millions)

2. Date of application
The Company plans to adopt the aforementioned standards from the beginning of the fiscal year in which its overseas subsidiaries adopt
IFRS 9 "Financial Instruments".
3. Impact of application of standards
The Company has not yet evaluated the impact of the application of the aforementioned standards at the timing of the preparation of its
consolidated financial statements.

The Company has applied "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No.31, June17, 2021) (hereinafter referred to as "Guidance for Application of Fair Value Measurement") from the beginning of the fiscal year 2022.
In accordance with the transitional treatment set forth in Paragraph 27-2 of Guidance for Application of Fair Value Measurement, theCompany has prospectively applied a new accounting policy prescribed by Guidance for Application of Fair Value Measurement.
The effect of applying Guidance for Application of Fair Value Measurement on consolidated financial statements is immaterial.

Additional Information
The Company and its major domestic consolidated subsidiaries have adopted a structure called Board Incentive Plan Trust (hereinafter, the"BIP Trust") as a stock-based compensation system (hereinafter, the "System") for its Directors and Executive Officers (hereinafter, the"Directors, etc."). The Company and its major domestic consolidated subsidiaries have applied the "Practical Solution on Transactions ofDelivering the Company's Own Stock to Employees, etc. through Trusts" (Practical Solution Report No. 30, March 26, 2015) to theaccounting treatment for the System.
Under the System, the Company and its major domestic consolidated subsidiaries entrust with the trustee the monies to pay for theCompany's stock-based compensation to acquire the Company's shares through the trust. The Eligible Directors, etc. who meet certain
beneficiary requirements will receive, after their resignation, the Company's shares in the number that is equivalent to a certain ratio of the
granted points accumulated pursuant to the share delivery rules and money corresponding to the conversion value of the Company's sharesthrough the trust.
The Company's shares remaining in the trust are recorded as treasury stock in shareholders' equity. The book value of such treasury
stock is 4,272 million yen and the number of shares is 2,117,000 shares at the end of the fiscal year 2022, and 4,958 million yen and
819,000 shares at the end of the fiscal year 2021, respectively.

Loans past due for three months or more
Restructured loans
Total

8,553
130,647

10,937
138,344

0

1

1,388

12,466

140,589

161,748

Note: Bankrupt or de facto bankrupt assets are receivables from any debtor who has become insolvent due to the commencement of bankruptcy proceedings, reorganization proceedings orrehabilitation proceedings and receivables equivalent to them.
Doubtful assets are receivables from any debtor who has not become insolvent, but which the principal or interest according to the contract are unlikely to be collected due todeterioration in the financial condition and business performance of the debtor. Assets classified as bankrupt or de facto bankrupt assets are excluded.
Loans past due for three months or more are defined as loans on which any principal or interest payments are delayed for three months or more from the date following the due date.
Loans classified as bankrupt or de facto bankrupt assets and doubtful assets are excluded.
Restructured loans are loans on which concessions (e.g. reduction of the stated interest rate, deferral of interest payment, extension of the maturity date, forgiveness of debt) are
granted to borrowers in financial difficulties to assist them in their corporate restructuring or financial recovery by improving their ability to repay creditors. Restructured loans do notinclude loans classified as bankrupt or de facto bankrupt assets, doubtful assets, or loans past due for three months or more.

*4. The value of assets pledged as collateral and collateralized corresponding debt obligations are as follows:
As of March 31, 2023

Assets pledged as collateral
Bank deposits(Yen in millions)

As of March 31, 2022

58,41455,217

Monetary receivables bought

34,30921,159Securities

822,209730,691Loans

394,719

264,866

Outstanding claims

223,584

170,156

Underwriting reserves

284,953

223,808

Other liabilities (payables under repurchase agreements, etc.)

271,147

240,338

Collateralized corresponding debt obligations

5. The fair value of the commercial papers received under resale agreements which the Company has the right to dispose of by sale orrehypothecation is as follows:
They are wholly held by the Company.

(Yen in millions)

As of March 31, 2023

999

As of March 31, 2022

3,999

*6. Securities lent under loan agreements are as follows:
As of March 31, 2023

939,517174

As of March 31, 2022

Strategy & Business Platform Supporting Our Purpose Story

Changes in Accounting Policies

Bankrupt or de facto bankrupt assets
Doubtful assets

As of March 31, 2023

(Yen in millions)

As of March 31, 2022

1,558,306

175

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements*7. The outstanding balance of undrawn loan commitments is as follows:(Yen in millions)

As of March 31, 2023

As of March 31, 2022

Total loan commitments

1,702,132

1,260,620

Balance of drawn loan commitments

1,285,057

890,702417,075

369,918

Undrawn loan commitments

8. The amount of assets or liabilities in separate accounts as prescribed in Article 118 of the Insurance Business Act is as follows:
As of March 31, 2023

* Reclassification adjustments and tax effects relating to Other comprehensive income(Yen in millions)

As of March 31, 2022

211,546

192,942

9. Tokio Marine & Nichido guarantees the liabilities of the following subsidiary.

(Yen in millions)

As of March 31, 2023

As of March 31, 2022

8,098

Tokio Marine Compania de Seguros, S.A. de C.V.

8,569

*10. Subordinated term loans, included in Other liabilities, of which the repayment is subordinated to other obligations, are as follows:(Yen in millions)

As of March 31, 2023

As of March 31, 2022

100,000

100,000

Notes to Consolidated Statement of Income*1. Major components of business expenses are as follows:(Yen in millions)

FY2021(April 1, 2021 – March 31, 2022)

Agency commissions, etc.

687,846

637,801

Salaries

379,631345,670

Note: Business expenses consist of Loss adjustment expenses, Operating and general administrative expenses, and Agency commissions and brokerage as shown in the accompanying
consolidated statement of income.

*2. Other extraordinary gains for the fiscal year 2022 are primarily attributable to 18,145 million yen of Gains on sales of shares ofsubsidiaries and affiliates.

Purpose of use

Category

Properties for business use(Other business(nursing care business))

Land andbuildings

Idle properties or properties
planned for saleLand andbuildings

Total

Location

3 properties,
including buildings
in Setagaya-ku, Tokyo
15 properties, including
buildings in Kawachi-county,
Tochigi(Yen in millions)

Impairment loss
Land

Building

Others

Total

160

77

36

275

2,295

1,169

—

3,464

2,456

1,247

36

3,740

Unrealized gains (losses) on available-for-sale securities
Amount arising during the year
Reclassification adjustment
Before tax effect adjustment
Tax effectUnrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedge transactions
Amount arising during the year
Reclassification adjustment
Before tax effect adjustment
Tax effect
Deferred gains (losses) on hedge transactions
Foreign currency translation adjustments
Amount arising during the year
Remeasurements of defined benefit plans
Amount arising during the year
Reclassification adjustment
Before tax effect adjustment
Tax effectRemeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustment
Share of other comprehensive income ofaffiliates accounted for by the equity method
Total other comprehensive income(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

FY2021(April 1, 2021 – March 31, 2022)(915,368)(134,505)(1,049,873)
159,719(890,153)(7,661)(98,151)(105,812)
26,413(79,398)(9,816)(185)(10,001)
2,798(7,203)(5,451)(574)(6,026)
1,686(4,339)437,698258,238

147
635
783
(220)
562

(6,064)
4,263(1,800)504(1,295)(6,238)
(709)

8,302
(1,140)(6,947)

7,161(466,042)

180,366

Strategy & Business Platform Supporting Our Purpose Story

FY2022(April 1, 2022 – March 31, 2023)*3. The Company recognized impairment losses on the following assets:
FY2022 (April 1, 2022 – March 31, 2023)

Notes to Consolidated Statement of Comprehensive Income

Properties are classified as follows: (a) properties for use in insurance business are grouped by each consolidated company and (b) otherproperties including properties for rent, idle properties, or properties planned for sale and properties for business use in other business(nursing care business) are grouped on an individual basis.
The total amount of projected future cash flows generated from other business (nursing care business) fell below the book values of theproperties used for this business. Consequently, the Company wrote off the excess of the book values of such properties over therecoverable amounts and recognized such write-offs as impairment losses in Extraordinary losses. The recoverable amount is primarily thenet sales price of each property. Net sales price is the appraisal value by qualified independent valuers.
The Company wrote off the excess of the book values over the recoverable amount for certain idle properties or properties planned for
sale, mainly due to the decision to sell the properties, and recognized any such write-offs as impairment losses in Extraordinary losses. The
recoverable amount is the net sales price of each property. Net sales price is the appraisal value by qualified independent valuers appraisers
less anticipated expenses for disposal of the relevant property.
*4. Other extraordinary losses for the fiscal year 2021 are primarily attributable to 1,608 million yen of Impairment losses on shares ofsubsidiaries and affiliates.

176

177

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements
FY2021 (April 1, 2021 – March 31, 2022)
1. Type and number of issued stock and treasury stock

Notes to Consolidated Statement of Changes in Shareholders' Equity
FY2022 (April 1, 2022 – March 31, 2023)
1. Type and number of issued stock and treasury stock
Number of shares
as of April 1, 2022

(Unit: thousand shares)

Increase during
the fiscal year 2022

Decrease during
the fiscal year 2022

Number of shares
as of March 31, 2023

Issued stock
Common stock
Total

680,000

1,360,000

37,5002,002,500

680,000

1,360,000

37,5002,002,500

2,217

46,85637,678

11,3962,217

46,85637,678

11,396

Treasury stock
Common stock
Total

Note: 1. The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022.
2. The number of shares of common stock at the beginning and the end of the fiscal year 2022 respectively include 819 thousand and 2,117 thousand shares of treasury stock held by
BIP Trust.
3. The increase of 1,360,000 thousand shares of common stock is entirely attributable to the stock split.
4. The decrease of 37,500 thousand shares of common stock is entirely attributable to the cancellation of treasury stock.
5. The increase of 46,856 thousand shares of common stock is primarily attributable to the acquisition of 25,914 thousand shares of treasury stock resolved at the meeting of the Board of
Directors, and an increase of 20,934 thousand shares by the stock split.
6. The decrease of 37,678 thousand shares of common stock is primarily attributable to the cancellation of 37,500 thousand shares of treasury stock and the sale of 177 thousand sharesof treasury stock by BIP Trust.

2. Stock acquisition rights (including those owned by the Company)
Amount as of March 31, 2023 (Yen in millions)Category

Nature of stock acquisition rights

The Company (parent company)

Stock acquisition rights as stock options

Amount ofdividends paid

Dividends
per share

Record date

Effective dateCommonstock

91,611 million yen

135.00 yen

March 31, 2022

June 28, 2022

Commonstock

100,540 million yen

150.00 yen

September 30, 2022

December 12, 2022—

17,500680,000

697,500—

17,500680,000

4,226

15,643

17,653

2,217

4,226

15,643

17,653

2,217

Treasury stock
Common stock
Total

Note: 1. The number of shares of common stock at the end of the fiscal year 2021 includes 819 thousand shares of treasury stock held by BIP Trust.
2. The decrease of 17,500 thousand shares of common stock is entirely attributable to the cancellation of treasury stock.
3. The increase of 15,643 thousand shares of common stock is primarily attributable to the acquisition of 14,753 thousand shares of treasury stock conducted based on resolution by the
Board of Directors and the acquisition of 867 thousand shares of treasury stock by BIP Trust.
4. The decrease of 17,653 thousand shares of common stock is primarily attributable to the cancellation of 17,500 thousand shares of treasury stock and the sale of 48 thousand sharesof treasury stock by BIP Trust.

2. Stock acquisition rights (including those owned by the Company)
Category

Nature of stock acquisition rights

The Company (parent company)

Stock acquisition rights as stock options

Ordinary General Meetingof Shareholders held on
June 28, 2021
Meeting of the Board of
Directors held on
November 19, 2021

Amount ofdividends paid

Dividends
per share

Record date

Effective dateCommonstock

69,327 million yen

100.00 yen

March 31, 2021

June 29, 2021

Commonstock

82,334 million yen

120.00 yen

September 30, 2021

December 13, 2021

Note: For dividends resolved at the meeting of the Board of Directors held on November 19, 2021, the amount of dividends paid includes dividends for treasury stock held by BIP Trust of 104
million yen.

(2) Dividends of which the record date falls within the fiscal year 2021, and the effective date falls after March 31, 2022
Resolution

Type of stock

Amount ofdividends paid

Source ofdividends

Dividends
per share

Record date

Effective dateOrdinary General Meetingof Shareholders held on
June 27, 2022

Commonstock

91,611 million yen

Retainedearnings

135.00 yen

March 31, 2022

June 28, 2022

Notes to Consolidated Statement of Cash Flows

Resolution

Type of stock

Ordinary General Meetingof Shareholders held on
June 26, 2023

Commonstock

99,661 million yen

Record date

Effective date

Retainedearnings

50.00 yenMarch 31, 2023

June 27, 2023

Note: The amount of dividends paid includes dividends for treasury stock held by BIP Trust of 105 million yen.

33

Type of stock(2) Dividends of which the record date falls within the fiscal year 2022, and the effective date falls after March 31, 2023
The Company intends to obtain approval for the following dividend payment at the 21st Ordinary General Meeting of Shareholders to be heldon June 26, 2023.
Dividends
per share

Amount as of March 31, 2022 (Yen in millions)

3. Dividends(1) Amount of dividends

Note: The amount of dividends paid includes dividends for treasury stock held by BIP Trust of 110 million yen.

Source ofdividends

Number of shares
as of March 31, 2022

697,500

Note: 1. For dividends resolved at the ordinary general meeting of shareholders held on June 27, 2022, the amount of dividends paid includes dividends for treasury stock held by BIP Trust of
110 million yen.
2. For dividends resolved at the meeting of the Board of Directors held on November 18, 2022, the amount of dividends paid includes dividends for treasury stock held by BIP Trust of
110 million yen.
3. The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022, but the amount of dividends per share is presented with theamount before the stock split.

Amount ofdividends paid

Decrease during
the fiscal year 2021

*1. Reconciliation of cash and cash equivalents to the amounts disclosed in the consolidated balance sheet is provided as follows:
FY2022(April 1, 2022 – March 31, 2023)(Yen in millions)

FY2021(April 1, 2021 – March 31, 2022)

Cash and bank deposits
Monetary receivables bought

871,993
1,863,824

848,819
1,630,523

Securities

18,489,522

19,288,018

Time deposits with initial term over three months to maturity(103,228)(112,006)

Monetary receivables bought not included in cash equivalents(1,863,224)(1,596,975)

Securities not included in cash equivalents(18,273,503)(19,146,163)

985,382

912,216

Cash and cash equivalents

Strategy & Business Platform Supporting Our Purpose Story

Ordinary General Meetingof Shareholders held on
June 27, 2022
Meeting of the Board of
Directors held on
November 18, 2022

Common stock
Total

Resolution

Type of stock

Increase during
the fiscal year 2021

Issued stock33

3. Dividends(1) Amount of dividends
Resolution(Unit: thousand shares)

Number of shares
as of April 1, 2021

*2. Cash flows from investing activities include cash flows arising from asset management relating to insurance business.

178

179

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements
FY2021 (April 1, 2021 – March 31, 2022)

Segment Information
1. Segment information(1) Outline of reportable segments
The Company, as a holding company that controls the Group's business, establishes basic policies about Group business management,
formulates corporate strategies based on the surrounding business environment and promotes the Group's business activities. The
Company classifies its operations into four segments following its corporate strategies: "Domestic non-life insurance business", "Domestic
life insurance business", "International insurance business" and "Financial and other businesses".
"Domestic non-life insurance business" primarily comprises underwriting of non-life insurance in Japan and related investments. "Domestic
life insurance business" primarily comprises underwriting of life insurance in Japan and related investments. "International insurance
business" primarily comprises underwriting of insurance overseas and related investments. In "Financial and other businesses", the main
businesses are investment advisory, investment trust services, staffing business, facility management business and nursing care services.
(2) Calculation of ordinary income, profit (loss), assets, liabilities and other items by reportable segments
The accounting treatment for reported operating segments is the same as described in "Significant accounting policies".
Segment profit is based on Ordinary profit. Ordinary income from transactions with other operating segments is based on prevailing market
prices.
(3) Ordinary income, profit (loss), assets, liabilities and other items by reportable segments
FY2022 (April 1, 2022 – March 31, 2023)(Yen in millions)

Reportable segments
Domestic
non-life
insurancebusiness

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses

Total

3,027,923

699,523

2,961,310

73,711

6,762,469(113,868)

6,648,600

12,681

124

3,411

27,07343,291(43,291)—

Total

3,040,604

699,648

2,964,722

100,785

6,805,760(157,160)

6,648,600

Segment profit

284,594

51,749159,5458,017

503,907—503,907

Segment assets

7,494,722

8,743,102

11,654,160

73,29027,965,275(265,459)

27,699,816

Domestic
non-life
insurancebusiness

Ordinary income
Ordinary income fromexternal customers
Ordinary income from transactions
with other reportable segments

Adjustments(Note 1)

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses

Total

2,839,955

713,641

2,262,031

72,883

5,888,512(24,741)

5,863,770

10,087798

2,728

29,47743,091(43,091)—
5,863,770

Total

2,850,042

714,440

2,264,759

102,360

5,931,603(67,832)

Segment profit

302,684

69,579185,526

9,623

567,413—567,413

Segment assets

7,620,856

9,423,469

10,298,239

72,026

27,414,592(168,739)

27,245,852

28,696

1,481

58,697879

89,754—89,75496—

71,857

198

72,152—

72,152

8,917

248

917

145

10,229—10,229145,168

116,398

301,51526

563,109(3,027)560,082

2,052

1,992

6,204

—

10,249(1,850)

8,398

—

—

(3,034)—(3,034)—(3,034)——

124,690—

124,690—

124,690

66,725

8,932

27,584734

103,976—

103,976

Other items
Depreciation
Amortization of goodwill
Amortization of negative goodwill
Interest and dividends
Interest expenses
Equity in earnings (losses)of affiliates
Investments in affiliates accounted
for by the equity method
Increase in tangible andintangible fixed assets

Note: 1. "Adjustments" are as follows:(1) "Adjustments" for Ordinary income from external customers of (24,741) million yen includes the transfer of Reversal of underwriting reserves of 21,268 million yen. This is includedin Ordinary income of Domestic non-life insurance business segment, while it is included in Provision for underwriting reserves in the consolidated statement of income.
(2) "Adjustments" for Segment assets of (168,739) million yen is mainly to eliminate intersegment transactions.
(3) "Adjustments" for Other items is to eliminate intersegment transactions.
2. Segment profit corresponds to Ordinary profit in the consolidated statement of income.

2. Related information
FY2022 (April 1, 2022 – March 31, 2023)(1) Information by product and service(Yen in millions)

Other items
35,7732,870

73,192

678

112,514—

112,514

Amortization of goodwill

93—

80,599—80,692—80,692

Amortization of negative goodwill

744

—

917

145

1,807

—

1,807

166,045

119,517

410,927

27

696,517(6,042)

690,474

2,139

1,695

15,629—19,464(5,510)13,953——(104,887)—(104,887)—(104,887)——

110,518—

110,518—

110,518

91,763

6,967

47,038938

146,708—

146,708

Depreciation

Interest and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates accounted
for by the equity method
Increase in tangible and intangible
fixed assets

Note: 1. "Adjustments" are as follows:(1) "Adjustments" for Ordinary income from external customers of (113,868) million yen includes the transfer of Reversal of underwriting reserves of 105,718 million yen. This isincluded in Ordinary income of Domestic non-life insurance business segment, while it is included in Provision for underwriting reserves in the consolidated statement of income.
(2) "Adjustments" for Segment assets of (265,459) million yen is mainly to eliminate intersegment transactions.
(3) "Adjustments" for Other items is to eliminate intersegment transactions.
2. Segment profit corresponds to Ordinary profit in the consolidated statement of income.

Amounts
shown onthe consolidated
financialstatements(Note 2)

Ordinary income fromexternal customers

Non-Life insuranceLife insurance

OthersSubtotal

5,090,351

1,494,001

73,711

6,658,064

Adjustments(9,463)

Total

6,648,600

Note: "Adjustments" includes transfer of Gains (Losses) on trading securities in the consolidated statement of income.

(2) Information by regiona. Ordinary income(Yen in millions)Japan

United States

OthersSubtotal

Adjustments

Total

3,463,794

2,030,871

1,164,404

6,659,070(10,470)6,648,600

Strategy & Business Platform Supporting Our Purpose Story

Ordinary income
Ordinary income from externalcustomers
Ordinary income from transactions
with other reportable segments

Adjustments(Note 1)

Amounts
shown onthe consolidated
financialstatements(Note 2)

(Yen in millions)

Reportable segments

Note: 1. The above figures are classified by country and region based on customer location.
2."Adjustments" includes transfer of foreign exchange gains included in Other investment income and foreign exchange losses included in Other investment expenses in the consolidated
statement of income.

b. Tangible fixed assets(Yen in millions)Japan

United States

OthersTotal

246,635

115,595

37,585399,817(3) Information about major customers
None.

180

181

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements
FY2021 (April 1, 2021 – March 31, 2022)(1) Information by product and service
Non-Life insurance

Ordinary income fromexternal customers

4,440,474(Yen in millions)Life insurance

1,350,862

OthersSubtotal

72,883Adjustments

5,864,220

(449)

Japan

United States

OthersSubtotal

Adjustments

Total

3,422,097

1,591,695

882,825

5,896,619(32,848)

5,863,770

United States

OthersTotal

62,13034,774

344,703

Impairment losses—

80,692428,592—

428,601

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses(2) Negative goodwill(Yen in millions)

Domestic non-life
insurancebusiness

Total

744

—

917

145

1,807

2,607

—

3,669

369

6,645

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses(Yen in millions)

Total

Amortization

96—

71,857

198

72,152

Remaining balance as of March 31, 2022

102—

453,331—453,433

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses

—

0

274

Total

3,740

Domestic life
insurancebusiness

International
insurancebusiness

Financialand otherbusinesses

—

194

44

(Yen in millions)

Domestic non-life
insurancebusiness(Yen in millions)(Yen in millions)525

80,599—(2) Negative goodwill

FY2021 (April 1, 2021 – March 31, 2022)
Domestic non-life
insurancebusiness

—

9

Total

Amortization

8,917

248

917

145

10,229Remaining balance as of March 31, 2022

3,352

—

4,586

514

8,453

5. Gains on negative goodwill by reportable segments
None.

Total

764

Related-party Transactions
There is no significant transaction to be disclosed.

Lease Transactions
Operating leases
Future lease payments related to non-cancelable operating leases

Strategy & Business Platform Supporting Our Purpose Story

3,464

Total

93

Domestic non-life
insurancebusiness

3. Impairment losses of fixed assets by reportable segments
FY2022 (April 1, 2022 – March 31, 2023)

Impairment losses

Financialand otherbusinesses

FY2021 (April 1, 2021 – March 31, 2022)(1) Goodwill(3) Information about major customers
None.

Domestic non-life
insurancebusiness

International
insurancebusiness

Remaining balance as of March 31, 2023

Remaining balance as of March 31, 2023

(Yen in millions)Japan

Domestic life
insurancebusiness

Amortization

Amortization

Note: 1. The above figures are classified by country and region based on customer location.
2. "Adjustments" includes transfer of Gains (Losses) on derivatives in the consolidated statement of income.

247,799

Domestic non-life
insurancebusiness

5,863,770(Yen in millions)b. Tangible fixed assets(Yen in millions)

Total

Note: "Adjustments" includes transfer of Increase (Decrease) in allowance for doubtful accounts in the consolidated statement of income.

(2) Information by regiona. Ordinary income

4. Amortization and remaining balance of goodwill by reportable segments
FY2022 (April 1, 2022 – March 31, 2023)(1) Goodwill(Yen in millions)

As of March 31, 2023

As of March 31, 2022

As lessee:
Due within one year

8,545

17,180Due after one year

26,412

72,868

Total

34,95790,048Due within one year

1,922

1,374

Due after one year

9,774

9,201

Total

11,696

10,576

As lessor:

182

183

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements

Deferred Tax Accounting

Information on Financial Instruments

1. Major components of deferred tax assets and deferred tax liabilities
Deferred tax assets
Underwriting reserves
Unrealized losses on available-for-sale securities
Outstanding claims
Net defined benefit liabilities
Reserve for price fluctuation
Impairment losses on securities
Net operating loss carry forward (Note 2)
OthersSubtotal
Valuation allowance on net operating loss carry forward (Note 2)
Valuation allowance on deductible temporary differences
Subtotal (Note 1)
Total deferred tax assets
Deferred tax liabilities
Unrealized gains on available-for-sale securities
Unrealized gains on consolidated subsidiaries
OthersTotal deferred tax liabilities
Net deferred tax assets (liabilities)(Yen in millions)

As of March 31, 2023

As of March 31, 2022

412,204
96,616
93,27474,73336,962
25,746
27,815140,596
907,948(15,209)(115,333)(130,542)
777,405

422,822—
97,47574,901
38,61728,95921,012
114,137
797,926(13,368)(35,388)(48,756)
749,169(524,778)(182,665)(129,907)(837,351)(59,945)(685,761)(163,235)(118,673)(967,670)(218,501)(Note 1) The main reason for the increase in valuation allowance is as follows:
The fair value of available-for-sale securities held by some overseas consolidated subsidiaries decreased due to a rise in interest rates and were recognized as Unrealized losses. It
was decided not to schedule the expected fiscal year for the reversal of the related deductible temporary differences and not to recognize deferred tax assets arising from thedeductible temporary differences.
(Note 2) Schedule by expiration of net operating loss carry forward and the corresponding deferred tax assets.

As of March 31, 2023

Within 1 year

Over 2 to
3 years

Over 3 to
4 years

Over 4 to
5 years

Over 5 years

Total

2,857
(2,718)138

1,852(1,781)70

1,777(1,757)19

1,224(1,220)
4

962
(919)
42

19,140(6,810)12,33027,815(15,209)12,605(*) The amounts of net operating loss carry forward are calculated by using statutory income tax rates.

As of March 31, 2022

Net operating loss carry forward (*)
Valuation allowance
Deferred tax assets(2) Details of financial instruments and their risks
The Group holds financial instruments including equity securities, bonds, other securities, loans and derivatives. These instruments are
exposed to market risk, which refers to the risk of losses arising from fluctuations in stock prices, exchange rates, interest rates, andother market indicators. They are also exposed to credit risk, which refers to the risk of losses when the value of an investment declines
or is lost due to deterioration in the financial condition of the debtor. Other risks to which these instruments are exposed include market
liquidity risk, which refers to the risk of losses that may occur from being unable to make transactions due to disorderly market conditions
or being forced to make transactions at extremely unfavorable prices.
Some currency risk is hedged through foreign exchange forwards, currency swaps and other such transactions. Hedge accounting isapplied to some of these transactions.
Credit risk associated with over-the-counter derivative transactions includes the risk of losses when the counterparties fail to fulfill their
obligations due to insolvency or for other reasons. In order to reduce such credit risk, netting arrangements and collateral transfers
equivalent to fair value of derivative transactions may be used with financial institutions and other counterparties with whom there are
frequent transactions. Also, interest rate risk associated with long-term insurance liabilities is hedged by interest rate swaps and othertransactions for which hedge accounting is applied in some cases.
With regard to hedging instruments, hedged items, hedging policies and evaluation of hedge effectiveness, please refer to "Significant
Accounting Policies - 4. Accounting policies - (8) Hedge accounting".

(Yen in millions)

Within 1 year

Over 1 to
2 years

Over 2 to
3 years

Over 3 to
4 years

Over 4 to
5 years

Over 5 years

Total

1,479
(1,443)35

2,783(2,748)35

1,821(1,781)40

1,799(1,757)41

1,257(1,220)36

11,870(4,416)
7,454

21,012(13,368)
7,644(*) The amounts of net operating loss carry forward are calculated by using statutory income tax rates.

2. Reconciliation of the statutory income tax rate and the effective tax rate after the application of deferred tax accounting when
there is a significant difference
Japanese statutory tax rate
(Adjustments)
Permanent differences such as dividends received
Permanent differences such as entertainment expenses
Equity in earnings or losses of affiliates
Amortization of goodwill and negative goodwill
Valuation allowance
Tax rate applied to consolidated subsidiaries
Others
Effective tax rate

As of March 31, 2023(%)

As of March 31, 2022

30.6

30.6

(2.8)
2.2
6.1
4.6
0.1
(8.9)
2.2
34.0

(2.4)
1.4
0.2
3.4
(0.0)
(4.6)
(2.6)
26.0

Changes in Presentation"Equity in earnings or losses of affiliates" was included in "Others" in the previous fiscal year, however, due to the higher materiality, it ispresented separately from this fiscal year. To reflect this change in presentation, the notes from the previous fiscal year have been
reclassified.
As a result, "Others" which was (2.4%) in the previous fiscal year, has been reclassified and represented to "Equity in earnings or losses ofaffiliates" 0.2% and "Others" (2.6%).

(3) Risk management structurea. Market risk and credit risk management
Based on the "Investment risk management policy" established by the Board of Directors, Tokio Marine & Nichido executes risk
management activities both quantitatively and qualitatively to control investment risk related to financial instruments, such as market
risk and credit risk, at the risk management department, which is independent of trading departments.
In accordance with the policy, "Investment guidelines" are established, which set the rules for which instruments to invest in, risk
limits, and actions to take when limits are exceeded for each segment set in the annual investment plan. Investment risk isquantitatively measured using VaR-like concepts. Compliance with the guidelines and investment risk and return are reported on aregular basis to directors.
Tokio Marine & Nichido appropriately manages credit risk by regularly monitoring the concentration and the status of issuers andborrowers using internal credit rating guidelines set by the "Guidelines for managing credit risk concentration".
In order to control individual investments, Tokio Marine & Nichido also executes pre-investment review and post-investment
monitoring according to the "Review guidelines" and others.
Risk monitoring operations are reported to the Board of Directors depending on their importance.
Other consolidated subsidiaries maintain risk management structures based on the aforementioned risks.

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Net operating loss carry forward (*)
Valuation allowance
Deferred tax assets(Yen in millions)Over 1 to
2 years

1. Qualitative information on financial instruments(1) Investment policies
The core operation of the Group is its insurance business, and it invests utilizing the cash inflows mainly arising from insurance
premiums. Therefore, the Group seeks to appropriately control risks based on the characteristics of insurance products primarily throughALM. The Group thereby aims to ensure stable, long-term earnings while realizing efficient management of liquidity.
Specifically, the Group's approach entails controlling interest rate risks associated with insurance liabilities by utilizing interest rate
swaps and other transactions while assuming a certain degree of credit risks by investing in bonds with high credit ratings. At the sametime, the Group endeavors to ensure medium-to-long-term earnings by diversifying risks and asset management approaches in Japanand overseas through the utilization of a wide range of products including foreign securities and alternative investments. Foreignexchange forwards and other derivative transactions are used to mitigate risks associated with the Group's asset portfolio.
Through these approaches, the Group aims to increase investment income in order to maximize net asset value in the medium-to-longterm and maintain financial soundness.
With regard to financing, the Group issues corporate bonds and undertakes borrowings mainly to secure funds for investments. When
financing is necessary, amounts and methodologies are determined based on the Group's cash flow status.

b. Liquidity risk management
The Group manages liquidity risk by controlling payment schedules and ensuring various ways of financing through treasury
management by each consolidated subsidiary and by the Group as a whole.
(4) Supplementary information on fair value of financial instruments
The fair value of financial instruments is measured under certain assumptions, therefore it may differ under other assumptions.

3. Accounting treatment of tax effect accounting for corporate and local income taxes
The Company and some of its domestic consolidated subsidiaries have adopted the Group Tax Sharing System from the fiscal year 2022.
Accordingly, for the accounting treatment and disclosure of deferred tax accounting related to corporate and local income taxes, the"Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System" (PITF No. 42, August 12, 2021) has been
adopted from the beginning of the fiscal year 2022.

184

185

Financial Data—

Financial and Non-Financial Data—

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Notes to Consolidated Financial Statements
2. Fair value of financial instruments and breakdown by input level
The tables below show carrying amounts shown on the consolidated balance sheet, fair value, differences of financial instruments, and fairvalue breakdown by input level.
Securities without a market price, and investments in partnerships are not included below. (Refer to Note 3.)
The fair values of financial instruments are classified into the following three levels depending on the observability and significance of the
input used in the fair value calculation:
Level 1: Fair value measured by the market price of the asset or liability in active markets among the observable inputs
Level 2: Fair value measured by the observable inputs other than the Level 1 inputs
Level 3: Fair value measured by unobservable inputs
If multiple inputs are used with a significant impact on the fair value measurement, the fair value measurement is categorized in its entirety
in the same level of the fair value hierarchy as the lowest level input.
(1) Financial instruments recorded at fair value on the consolidated balance sheet
As of March 31, 2023

(Yen in millions)

Carrying amount shown on the consolidated balance sheet
Level 1

Level 2—

Monetary receivables bought
Securities

Level 3

1,592,732

271,091

Total

1,863,824

103,999

479,147

10,347593,494

4,920,572

5,157,840

151,727

10,230,139——

20,274

20,274

6,491

87,4786,494

100,465

5,031,063

7,317,198

459,935

12,808,198

Derivative transactions

200

114,835

9,367

124,403

Liabilities

200

114,835

9,367

124,403

Trading securities
Available-for-sale securities
Loans
Derivative transactions
Assets

As of March 31, 2022

(Yen in millions)

Trading securities
Available-for-sale securities
Loans

Level 3—

5,218,135

5,116,287

101,848—

1,710,663

2,104,656(393,993)—

2,538,764

2,538,764

2,554,213(15,448)

2,113,080

2,538,764

9,467,563

9,775,156(307,593)

210,939—

210,939

222,811(11,871)

210,939—

210,939

222,811(11,871)

Level 1

Level 2

Level 3

Bonds held to maturity
Bonds earmarked for underwriting
reserves
Loans(*)

3,780,595

1,437,539

1,035,122

675,540—

Assets4,815,718

Corporate bonds—

Liabilities—

Difference

Securities(*) Carrying amount shown on the consolidated balance sheet is the loans after the deduction of Allowance for doubtful accounts earmarked for loans of 1,958 million yen.

As of March 31, 2022

(Yen in millions)

Total

Carrying amountshown on the
consolidatedbalance sheet—

5,528,977

5,112,881

416,095—

1,982,480

2,220,503(238,023)

Fair value

Securities
Bonds held to maturity
Bonds earmarked for underwriting
reserves
Loans(*)

Level 1

Level 2

Level 3

3,968,104

1,560,872

1,312,011

670,468

Difference——

1,935,010

1,935,010

1,934,859

150

5,280,115

2,231,341

1,935,010

9,446,467

9,268,245

178,222

Corporate bonds—

219,35942

219,401

219,795(394)

Liabilities—

219,35942

219,401

219,795(394)—

1,433,790

196,733

1,630,523

106,365

244,308

7,915

358,589

5,519,401

4,383,083

131,949

10,034,434
72,145(*) Carrying amount shown on the consolidated balance sheet is the loans after the deduction of Allowance for doubtful accounts earmarked for loans of 1,703 million yen.

——

72,14573,66917,32593,2405,628,012

6,134,851

426,069

12,188,933

Derivative transactions

511

166,815

1,172

168,499

Liabilities

511

166,815

1,172

168,499

Assets

Total

Carrying amountshown on the
consolidatedbalance sheet

Fair value

Total

2,245

Derivative transactions(Yen in millions)(*) The amount of investment trusts is not included in the table above in accordance with Paragraph 27-3 of "Guidance for Application of Fair Value Measurement". The amount of suchinvestment trusts on the consolidated balance sheet is 1,141,916 million yen.

(Note 1) Description of the valuation techniques and inputs used in the fair value measurement.
Monetary receivables bought
The fair value of Monetary receivables bought is measured using valuation techniques such as discounted cash flow and matrix pricing. These valuation techniques include the inputs
such as yield curves, prepayment rates and market prices of similar type of securities.
The fair value is categorized within Level 2 if unobservable inputs are either not included or not significant in the valuation techniques. It is categorized within Level 3 if unobservable
inputs are significant in the valuation techniques.
Securities
The fair value of securities which is measured using quoted prices in active markets is categorized within Level 1. The fair value of securities which is based on quoted prices in inactive
markets is categorized within Level 2.
If quoted prices in markets are not available, the fair value of securities is measured using valuation techniques such as discounted cash flow and matrix pricing. These valuation
techniques include the inputs such as yield curves, credit spreads and market prices of similar type of securities.
The fair value is categorized within Level 2 if unobservable inputs are either not included or not significant in the valuation techniques. It is categorized within Level 3 if unobservable
inputs are significant in the valuation techniques.
The fair value of major investment trusts for which quoted prices in markets are not available, is based on net asset value and categorized within Level 2, as there is no significant
restriction on cancellation.

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Monetary receivables bought
Securities

Level 2As of March 31, 2023

AssetsCarrying amount shown on the consolidated balance sheet
Level 1

(2) Financial instruments which are not recorded at fair value on the consolidated balance sheet
Cash and bank deposits, Receivables under resale agreements and Payables under securities lending transactions are omitted since they
are mainly scheduled to be settled in a short period of time and the fair value approximates the book value.

Loans
With regard to floating rate loans, fair value is measured using the book value and is categorized within Level 3 as long as there are no significant changes in the credit status of theborrowers, since the fair value is considered to approximate the book value as the changes in interest rates are reflected in a timely manner in the future cash flows.
With regard to fixed rate loans, the fair value is measured using valuation techniques such as discounted cash flow. These valuation techniques include the inputs such as yield curves
and credit spreads. The fair value of fixed rate loans is categorized within Level 3.
With regard to loans of which borrowers are insolvent or in bankruptcy proceedings, the fair value approximates the amount after deducting the estimated uncollectible debts from thecarrying amount. Therefore, the fair value is measured with such amount and is categorized within Level 3.
Corporate bonds
The fair value of Corporate bonds is measured using quoted prices in markets and others and categorized within Level 2.
Derivative transactions
With regard to exchange-traded derivative transactions, the fair value is measured using the closing prices at exchanges and others. For over-the-counter derivative transactions, the fairvalue is measured using valuation techniques such as the Black-Scholes model and the discounted cash flow, using the inputs such as swap rates, forward rates, volatilities and basis
swap spreads.
The fair value of derivative transactions which is measured using closing prices at exchanges and others is categorized within Level 1. It is categorized within Level 2 if unobservable
inputs are either not included or not significant in the valuation techniques. It is categorized within Level 3 if unobservable inputs are significant in the valuation techniques.

186

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Financial Data—

Financial and Non-Financial Data—

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Notes to Consolidated Financial Statements(Note 2) Information on the fair value of Level 3 financial instruments which are recorded at fair value on the consolidated balance sheet(1) Reconciliation of beginning balances to ending balances, unrealized gains and losses recognized in profit or loss for the period
As of March 31, 2023

Beginningbalance

Monetary receivables bought

196,733

Transfers to
Level 3 fairvalue (*1, *2)

14,139Transfers
from Level 3
fair value(*1, *3)(11,431)(Note 4) Maturity analysis of financial assets(Yen in millions)

Net amount
Recorded in
Recorded inof purchases,
otherprofit or loss
sales, issues
for the period comprehensive
andincome (*5)(*4)
settlements(13,248)

17,933

66,965Endingbalance

Unrealized
gains(losses) on
financialassets andliabilities heldat the end of
the period, ofthe amountrecorded in
profit or loss
for the period(*4)

271,091—

Securities
Trading securities
Available-for-sale securities
(*6)
Loans

7,915

690

—

2,025

1,081

134,508

1,484

72,145—Derivative transactions (*7)

16,153—(1,365)

10,347(2,387)

8,398—(5,685)—(14,800)

1,078

16,820(7,097)

151,727—

11,089(57,276)

20,274(1,678)2,575(6,800)(2,872)(14,741)(*1) Transfers between levels are recognized at the beginning of the period.
(*2) The fair value were transferred from Level 2 to Level 3 because the inputs became unobservable.
(*3) The fair value were transferred from Level 3 to Level 2 because the inputs became observable.
(*4) The amounts are included in "Investment income" and "Investment expenses" on the consolidated statement of income.
(*5) The amounts are included in "Unrealized gains (losses) on available-for-sale securities" and "Foreign currency translation adjustments" in "Other comprehensive income" on the
consolidated statement of comprehensive income.
(*6) The amount of investment trusts has been included from the beginning of the fiscal year due to the application of the "Guidance for Application of Fair Value Measurement".
(*7) Derivative transactions recorded in Other assets and Other liabilities are collectively presented. Net receivables and payables and Gains and losses arising from derivativetransactions are presented on a net basis, and Net liability or Loss are shown in parentheses.

(Yen in millions)

Within 1 year

Over 1 to 5 years

Over 5 to 10 years

147,127

12,746——

Monetary receivables bought

27,20139,067

541,623

1,495,287

3,765,532

Securities
Bonds held to maturity
13,000308,800

711,097

Domestic municipal bonds

—

—

—

3,000

Domestic corporate bonds

—

—

—

155,600

13,26817,235

16,58025,656

Domestic government bonds

—

—

—

1,764,300

Domestic municipal bonds

—

—

—

2,600

Domestic corporate bonds

—

—

—

330,400

Domestic government bonds

43,245

258,049

516,569

755,922

Domestic municipal bonds

12,64336,070

4,782

6,690

Domestic corporate bonds

36,185282,237

189,695

65,8892,493,192

Domestic government bonds

Foreign securities
Bonds earmarked for underwriting reserves

Available-for-sale securities with maturity

Foreign securities
Loans

(*)

Total

175,508

748,478806,781

688,543

1,260,786

277,462

249,7121,156,722

2,963,471

3,064,593

11,113,783(*) Loans to borrowers that are insolvent or in bankruptcy proceedings and for which repayment cannot be expected (30 million yen), and loans with no repayment schedule (8,789
million yen) are not included above.

(Yen in millions)

155,575

Transfers to
Level 3 fairvalue (*1, *2)

15,677

Transfers fromLevel 3 fairvalue(*1, *3)(4,516)

Recorded in
profit or loss
for the period(*4)(5,940)Recorded inothercomprehensive
income (*5)

17,725

Net amount ofpurchases,
sales, issues
andsettlements

18,211Endingbalance

196,733—

Securities
Trading securities

4,909

104

—

1,843

556

500

7,915

Available-for-sale securities

1,862

76,033

12,731(3,241)

9,989

9,406

27,031

131,949—

Loans

53,093

—

—

3,505

5,909

9,636

72,145

3,136

Derivative transactions (*6)

16,258——16,386

1,927(18,418)

16,1536,931(*1) Transfers between levels are recognized at the beginning of the period.
(*2) The fair value were transferred from Level 2 to Level 3 because the inputs became unobservable.
(*3) The fair value were transferred from Level 3 to Level 2 because the inputs became observable.
(*4) The amounts are included in "Investment income" and "Investment expenses" on the consolidated statement of income.
(*5) The amounts are included in "Unrealized gains (losses) on available-for-sale securities" and "Foreign currency translation adjustments" in "Other comprehensive income" on the
consolidated statement of comprehensive income.
(*6) Derivative transactions recorded in Other assets and Other liabilities are collectively presented. Net receivables and payables and Gains and losses arising from derivativetransactions are presented on a net basis, and Net liability or Loss are shown in parentheses.

(Yen in millions)

Within 1 year

Cash and bank deposits
Monetary receivables boughtOver 1 to 5 years

Over 5 to 10 years

Over 10 years

139,11441,095

8,517
25,168—467,342—
1,133,727

4,054,162

Securities
Bonds held to maturity
Domestic government bonds

4,500

246,500

497,767

Domestic municipal bonds

—

—

—

3,000

Domestic corporate bonds

—

—

—

155,600

5,543

12,635

15,37024,978Domestic government bonds

—

—

—

1,897,200

Domestic municipal bonds

—

—

—

1,800

Domestic corporate bonds

—

—

—

305,500

Domestic government bonds

37,105249,298

579,815

1,297,873

Domestic municipal bonds

9,612

41,01318,7007,236

Domestic corporate bonds

60,196

280,981

214,743

56,9172,034,528

Foreign securities
Bonds earmarked for underwriting reserves

Available-for-sale securities with maturity

Foreign securities
Loans
Total

(*)

119,714582,696

745,114

520,850

918,923

228,130

228,276

937,734

2,365,736

2,766,983

11,200,801

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Beginningbalance

Unrealized
gains (losses)
on financial
assets andliabilities heldat the end of
the period, ofthe amountrecorded in
profit or loss
for the period(*4)

Over 10 years

Cash and bank deposits

As of March 31, 2022

As of March 31, 2022

Monetary receivables bought

As of March 31, 2023(*) Loans to borrowers that are insolvent or in bankruptcy proceedings and for which repayment cannot be expected (25 million yen), and loans with no repayment schedule (8,175
million yen) are not included above.

(2) Explanation of the fair value valuation process
The Group's policies and procedures of fair value measurement are established by a department which is independent of the trading departments.
In regard to the measured fair value and the categorized levels, the Group verifies the appropriateness of the valuation techniques and inputs used for the fair value measurement.
In measuring the fair value, the valuation models are appropriately selected by nature, characteristics and risks of each financial instrument.
When using the quoted market prices obtained from third parties, the prices are verified by appropriate methods such as confirming the valuation techniques and inputs, orcomparing with the prices of similar financial instruments.
(Note 3) The amounts of securities without a market price, and investments in partnerships on the consolidated balance sheet(Yen in millions)

As of March 31, 2023

As of March 31, 2022

Securities without a market price (*1)
Investments in partnerships (*2)

241,530
199,802

246,748
169,334

Total

441,333

416,082(*1) Securities without a market price include unlisted stock and others. These are not subject to fair value disclosure in accordance with Paragraph 5 of "Implementation Guidance on
Disclosures about Fair Value of Financial Instruments" (ASBJ Guidance No. 19, March 31, 2020).
(*2) Investments in partnerships are not subject to fair value disclosure in accordance with Paragraph 24-16 of "Guidance for Application of Fair Value Measurement".

188

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Financial and Non-Financial Data—

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Notes to Consolidated Financial Statements(Note 5) Maturity schedules for corporate bonds, long-term borrowings and lease obligations
As of March 31, 2023

(Yen in millions)

Within 1 year

Corporate bonds

Over 1 to 2 years

Over 2 to 3 years

—

—

—

Over 3 to 4 years

Over 4 to 5 years

Over 5 years——

223,222—

39,81078,293—63,032

103,622

Lease obligations

12,502

11,250

9,200

7,385

6,055

24,201

Total

12,50251,06087,493

7,385

69,088351,046

Long-term borrowings

As of March 31, 2022

Securities
1. Trading securities(Yen in millions)Over 1 to 2 years

Over 2 to 3 years

Over 3 to 4 years

Over 4 to 5 years

42
66,136———34,506————

220,128
154,634

Lease obligations

3,607

2,735

1,944

1,603

1,121

3,584

Total

69,7862,735

36,450

1,603

1,121

378,347

62,841

81,405

2. Bonds held to maturity(Yen in millions)

As of March 31, 2023

Over 5 years

Corporate bonds
Long-term borrowings

As of March 31, 2022

Unrealized gains (losses) included in income(Yen in millions)

Within 1 year

As of March 31, 2023

Carrying amountshown onbalance sheet

Fair value

As of March 31, 2022
Unrealized
gains (losses)

Carrying amountshown onbalance sheet

Fair value413,474
1,071

3,045,970
47,956

3,629,930
50,663

Unrealized
gains (losses)

Those with fair value
exceeding thecarrying amount

Domestic debt securities
Foreign securities

2,984,059
37,0383,397,534
38,110Subtotal

3,021,098

3,435,644

414,546

3,093,927

3,680,593

586,666

Those with fair value
not exceeding thecarrying amount

Domestic debt securities

2,059,095

1,747,368(311,727)

2,007,913

1,837,454(170,459)

Foreign securities
Subtotal

Total

36,09335,122(970)

11,04010,929(111)

2,095,188

1,782,490(312,697)

2,018,954

1,848,383(170,570)

5,116,287

5,218,135

101,848

5,112,881

5,528,977

416,095

3. Bonds earmarked for underwriting reserves(Yen in millions)

As of March 31, 2023
Carrying amountshown onbalance sheet

Fair value

As of March 31, 2022
Unrealized
gains (losses)

Carrying amountshown onbalance sheet

Fair value

Domestic debt securities

11,20011,371

171

5,500

5,545

Subtotal

11,20011,371

171

5,500

5,545

45

Domestic debt securities

2,093,456

1,699,291(394,164)

2,215,003

1,976,934(238,068)

Subtotal

2,093,456

1,699,291(394,164)

2,215,003

1,976,934(238,068)

2,104,656

1,710,663(393,993)

2,220,503

1,982,480(238,023)

4. Available-for-sale securities

Fair value
shown onbalance sheet

Cost

Domestic debt securities

1,485,564

Domestic equity securities

2,361,225

Foreign securities
Others (Note 2)

As of March 31, 2022
Unrealized
gains (losses)

Fair value
shown onbalance sheet

Cost

1,366,670

118,8942,444,299

2,185,962

258,336448,616

1,912,609

2,477,828

466,979

2,010,849

1,833,099

1,671,956

161,142

4,098,931

3,703,787

395,144

256,109

223,744

32,365674,595

613,800

60,794

5,935,999

3,710,987

2,225,012

9,695,654

6,970,529

2,725,125

Domestic debt securities

837,900

874,268(36,367)

707,264

715,626(8,361)

Domestic equity securities

16,70018,195(1,494)

24,462

27,949(3,486)

Foreign securities

3,679,402

4,169,737(490,335)

1,223,458

1,270,490(47,031)

Others (Note 3)

1,610,743

1,784,710(173,966)

969,597

983,593(13,996)

Subtotal

6,144,747

6,846,911(702,164)

2,924,783

2,997,659(72,876)

12,080,746

10,557,898

1,522,847

12,620,437

9,968,188

2,652,249

SubtotalThose with fair value
not exceeding
the cost

45(Yen in millions)

As of March 31, 2023

Those with fair value
exceeding the cost

Unrealized
gains (losses)

Total

Unrealized
gains (losses)

Strategy & Business Platform Supporting Our Purpose Story

Those with fair value
exceeding thecarrying amountThose with fair value
not exceeding thecarrying amount
Total

583,959
2,706

Note: 1. Available-for-sale securities without a market price, and investments in partnerships are not included in the table above.
2. "Others" includes items as follows:- Negotiable certificates of deposit which are presented as Cash and bank deposits on the consolidated balance sheet
As of March 31, 2022: fair value 59 million yen, cost 58 million yen, unrealized gains 0 million yen- Foreign mortgage securities, etc. which are presented as Monetary receivables bought on the consolidated balance sheet
As of March 31, 2023: fair value 248,258 million yen, cost 217,562 million yen, unrealized gains 30,695 million yen
As of March 31, 2022: fair value 663,602 million yen, cost 606,606 million yen, unrealized gains 56,996 million yen
3. "Others" includes items as follows:- Negotiable certificates of deposit which are presented as Cash and bank deposits on the consolidated balance sheet
As of March 31, 2023: fair value 2,870 million yen, cost 2,875 million yen, unrealized losses (4) million yen
As of March 31, 2022: fair value 5,575 million yen, cost 5,575 million yen, unrealized losses (0) million yen- Foreign mortgage securities, etc. which are presented as Monetary receivables bought on the consolidated balance sheet
As of March 31, 2023: fair value 1,599,477 million yen, cost 1,772,894 million yen, unrealized losses (173,416) million yen
As of March 31, 2022: fair value 958,904 million yen, cost 972,501 million yen, unrealized losses (13,596) million yen

5. Bonds held to maturity that were sold
None.

190

191

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements
6. Bonds earmarked for underwriting reserves that were sold(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)
Sale proceeds

Gains on sale

FY2021(April 1, 2021 – March 31, 2022)

Losses on sale

Sale proceeds

Gains on sale

Losses on sale

Domestic debt securities

178,030—

26,961

180,066

2,799

6,895

Total

178,030—

26,961

180,066

2,799

6,895

7. Available-for-sale securities that were sold

Derivative Transactions"Principal amount" as shown in the tables is the nominal contract amount or notional principal amount of derivative transactions. The amountitself does not represent the market or credit risk of such derivative transactions.
1. Derivative transactions to which hedge accounting is not applied(1) Foreign currency-related instruments

FY2022(April 1, 2022 – March 31, 2023)

Principal amountFY2021(April 1, 2021 – March 31, 2022)

Sale proceeds

Gains on sale

Sale proceeds

Gains on sale

Domestic debt securities
Domestic equity securities

863,570
131,782

64,219103,646

Losses on sale

7,271
540

473,825
118,949

6,787
93,9773,644
397

Foreign securities

645,110

16,65528,709495,579

28,215

12,389159,124

641

3,717

290,211

5,035

3,909

Total

1,799,587

185,163

40,2391,378,566

134,015

20,341

Note: "Others" includes items as follows:- Negotiable certificates of deposit which are presented as Cash and bank deposits on the consolidated balance sheet
Fiscal year 2022: proceeds 3,599 million yen
Fiscal year 2021: proceeds 23 million yen- Foreign mortgage securities, etc. which are presented as Monetary receivables bought on the consolidated balance sheet
Fiscal year 2022: proceeds 155,524 million yen, gains 641 million yen, losses 3,717 million yen
Fiscal year 2021: proceeds 289,574 million yen, gains 4,868 million yen, losses 3,909 million yen

1. Money trusts held for trading purposes
None.
2. Money trusts held to maturity
None.

Markettransactions

Over-thecountertransactions

Fair value

As of March 31, 2022
Unrealized
gains (losses)

Principal amountOver 1 year

Fair value

Currency futures
Short

2,511

—

—

—

2,675

—

—

—

Long

1,112

—

—

—

1,028

—

—

—

827,849

—

1,685

1,685

721,810—(28,162)(28,162)

43,351—14

14

22,198

—

508

508

12,435—(2,557)(2,557)

12,435

12,435(1,075)(1,075)52,22652,226

2,025

2,025

45,029—(5,092)(5,092)

—

—

1,167

1,167

—

(33,820)(33,820)

Foreign exchange
forwards
Short
Long
Currency swaps
Pay foreign/Rec. yen
Pay foreign/
Rec. foreign

Total

—

(2) Interest rate-related instruments(Yen in millions)

As of March 31, 2023
Principal amountOver 1 year

Markettransactions

Unrealized
gains (losses)

Interest rate futures
Short

Fair value

As of March 31, 2022
Unrealized
gains (losses)

Principal amountOver 1 year

Fair value

Unrealized
gains (losses)

8,390

—

—

—

6,856

—

—

—

748

—

—

—

1,902

—

—

—

Rec. fix/Pay float

1,061,210

1,020,166(20,894)(20,894) 1,169,047

1,138,611

35,84535,845Rec. float/Pay fix

1,018,853

986,625

14,306

14,306

1,052,312

1,028,614(32,591)(32,591)

4,398

4,398

(75)

(75)

4,696

4,696

(100)

(100)

237

237

5

5

339

339

11

11

1,500

1,500

—

—

[25]

[25]

21

(4)

[—]

[—]

(6,636)(6,661)Long
Interest rate swaps

Over-thecountertransactions

Rec. float/Pay float
Rec. fix/Pay fix
Interest rate swap options
Long

—

Total

—

—

—

—

—

3,165

3,165

Note: For option contracts, the figures below the principal amount denoted with [ ] represent option premiums.

(3) Equity-related instruments

3. Money trusts other than those held to maturity or those held for trading purposes
None.

(Yen in millions)

As of March 31, 2023
Principal amountOver 1 year

Markettransactions

Equity index futures
Short
Long

Strategy & Business Platform Supporting Our Purpose Story

8. Securities on which impairment losses were recognizedImpairment losses were recognized as follows:- Available-for-sale securities with fair value
Fiscal year 2022: 22,989 million yen (Domestic equity securities 1,367 million yen, Foreign securities 13,926 million yen, Others 7,695
million yen)
Fiscal year 2021: 14,892 million yen (Domestic equity securities 2,059 million yen, Foreign securities 9,764 million yen, Others 3,068
million yen)
- Available-for-sale securities without a market price, and investments in partnerships
Fiscal year 2022: 500 million yen (Domestic equity securities 26 million yen, Foreign securities 474 million yen)
Fiscal year 2021: 620 million yen (Domestic equity securities 354 million yen, Foreign securities 266 million yen)
Impairment loss on a security with fair value is, in principle, recognized when the fair value is below its cost by 30% or more.

Money Trusts

Over 1 year

Losses on sale

Others(Yen in millions)

As of March 31, 2023

(Yen in millions)

Fair value

As of March 31, 2022
Unrealized
gains (losses)

Principal amountOver 1 year

Fair value

Unrealized
gains (losses)

5,127

—

(175)

(175)

4,757

—

(383)

(383)

663

—

—

—

2,305

—

—

—

6,974

8,543

19,283(10,989)

35,45017,18954,3495,815

Equity index options
Over-thecountertransactions

Short
Long

209,309—[15,518][—]

282,417—[28,207]
Total

—

[—]
—

183,131—[8,293][—]

251,533—

13,043(15,164)[18,261]

19,843(6,795)—[—]—

Note: For option contracts, the figures below the principal amount denoted with [ ] represent option premiums.

192

193

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements(4) Bond-related instruments(Yen in millions)

As of March 31, 2023
Principal amountOver 1 year

Markettransactions

Bond futures
Short
Long

Fair value

2. Derivative transactions to which hedge accounting is applied(1) Foreign currency-related instruments

Unrealized
gains (losses)

Over 1 year

Fair value

As of March 31, 2023

Unrealized
gains (losses)

Hedged items

—

—

—

—

2,794

—

24

24

12,423

—

233

233

14,121

—

(80)

(80)

options
Short

3,084

—

[23]

[—]

Long

3,084

—

[28]
—

Total

[—]
—

112

(89)

0

(28)

346

115

—

—

Deferredhedges

[—]

[—]

—

—

[—]
—

[—]
—

Fair value
hedges
—

—

—

—

(55)

(55)

(5) Commodity-related instruments(Yen in millions)

As of March 31, 2023
Principal amountOver 1 year

Markettransactions

Long

Fair value

Fair value

Principal amountOver 1 year

Fair value

Investment in
subsidiaries

324,689—(4,502)

290,888—(12,730)

Available-forsale securities

972,069—(17,770)

991,355—(53,037)

13,8869,934(2,306)

13,886

13,886(1,581)

12,316

12,316(Note)

12,316

12,316————

Available-forsale securities
Bonds held tomaturity(24,580)(Note)(67,349)(2) Interest rate-related instruments(Yen in millions)

As of March 31, 2022
Unrealized
gains (losses)

Principal amountOver 1 year

Fair value

As of March 31, 2023

Unrealized
gains (losses)

319

—

—

—

439

—

—

—

332

—

—

—

169

—

—

—

190,265

438

77,822—[10,338]

[39]

6,250

(4,088)[3,203]

[—]

2,150

(1,053)

6,250(4,088)—2,150(1,053)Hedged items

Principal amountOver 1 year

DeferredhedgesTotal

Interest rate swaps
Rec. fix/Pay float

Insurance
liabilities

As of March 31, 2022
Fair value

Principal amountOver 1 year

Fair value

110,182

110,182(77)

259,782259,782

6,884

—

—

(77)

—

—

6,884

Commodity futures options
Short

—

—

Note: For option contracts, the figures below the principal amount denoted with [ ] represent option premiums.

(6) Others(Yen in millions)

As of March 31, 2023
Principal amountOver 1 year

Natural catastrophe
derivatives
Short
Long

26,904

3,939[1,937][289]

22,5813,600[1,086][110]

Fair value

As of March 31, 2022
Unrealized
gains (losses)

Principal amountOver 1 year

27,696
668

1,268

258

(827)

—

—

6,132

3,653

Fair value

Unrealized
gains (losses)

674

711

173

(468)

0

0

3,249

1,785

16,121[1,386][851]

22,45015,000

[641]

[331]

Strategy & Business Platform Supporting Our Purpose Story

—

Total

Over-thecountertransactions

Assignment
accounting
Total

Foreign exchange
forwards
Short
Foreign exchange
forwards
Short
Currency swaps
Pay foreign/Rec. yen
Currency swaps
Pay foreign/Rec. yen

As of March 31, 2022

Note: As the currency swaps to which assignment accounting is applied are accounted for as an integral part of Bonds held to maturity which are treated as hedged item, the fair value of thecurrency swaps is included in the fair value of the Bonds held to maturity.

Note: For option contracts, the figures below the principal amount denoted with [ ] represent option premiums.

Commodity futures
Short

Principal amountOver 1 year

Bond over-the-counter
Over-thecountertransactions(Yen in millions)

As of March 31, 2022
Principal amount

Weather derivatives
Short

—

—

[—]

[—]

13

—

[1]

[—]

OthersShort
Long

152,480—[9,785]

[—]

7,686

—

[130]
Total

—

[—]
—

464

333

7,523

4,428

72,019—[5,035][—]

14,507—[1,886]
—

[—]
—

1,734

(152)

5,833

1,876

Note: For option contracts, the figures below the principal amount denoted with [ ] represent option premiums.

194

195

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements(4) Retirement benefit expenses

Retirement Benefits
1. Outline of retirement benefit plans
The Company and some consolidated subsidiaries have defined benefit plans and defined contribution plans.
Tokio Marine & Nichido has an unfunded lump-sum payment retirement plan covering substantially all employees. The corporate pension
plan is a defined benefit corporate pension plan and a defined contribution pension plan. The benefits of the corporate pension plan andlump-sum payment retirement plan are based on the points which each employee acquired through service.
Additionally, some domestic consolidated subsidiaries have an employee retirement trust.

(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

Service costs
Interest costs

17,863
4,778

18,522
3,899

Expected return on plan assets(2,209)(1,617)

Amortization of actuarial losses (gains)

1,911

5,522

Amortization of past service costs (credits)(1,275)(1,258)31528

21,09825,596

Others

2. Defined benefit plan
(1) Changes in retirement benefit obligations

Retirement benefit expenses(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

FY2021(April 1, 2021 – March 31, 2022)

Beginning balance

529,706

538,203

Service costs

17,863

18,522

Interest costs

4,778

3,899

Actuarial (gains) losses arising in current year

(26,755)(9,966)

Benefit payments(25,235)(23,684)

0—

Past service costs (credits) arising in current year
OthersEnding balance

2,626

2,731

502,983

529,706(Yen in millions)

275,1262,209

287,449
1,617(26,647)(16,029)

Employer contribution

10,423

10,572

Benefit payments(10,247)(9,796)

552

1,313

251,416

275,126(3) Reconciliation of retirement benefit obligations and plan assets with net defined benefit liabilities and assets

Funded retirement benefit obligations
Plan assets
Unfunded retirement benefit obligations(499)

Others

82

(42)

Total

783

(1,800)(Yen in millions)

As of March 31, 2022

283,920(251,416)

299,676(275,126)

32,50324,550219,063

230,02994

251,720

254,674

Net defined benefit liabilities

255,437

259,198

Net defined benefit assets(3,717)(4,523)

251,720

254,674

As of March 31, 2022

Unrecognized past service costs (credits)
Unrecognized net actuarial losses (gains)(12,805)
32,802(14,080)
34,861

Total

19,996

20,780(%)

As of March 31, 2023

As of March 31, 2023

Net liabilities recognized on the balance sheet

Net liabilities recognized on the balance sheet(1,258)

1,976(7) Plan assets
a. Components of plan assets
Percentages by major categories of plan assets are as follows:(Yen in millions)

153

Asset ceiling adjustments(1,275)

Actuarial differences

As of March 31, 2022

Debt securities
Equity securities

86
1

90
1

Cash and bank deposits

22Life insurance company general accounts

5

4

Others

6

3

Total

100

100

Note: The retirement benefit trusts established for the corporate pension plan and the lump-sum payment retirement plan account for 2% of total plan assets as of March 31, 2023, and 2% of
total plan assets as of March 31, 2022.

b. Calculation of long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined through consideration of present and expected allocation of plan
assets and long-term expected rate of returns on the various types of assets in plan assets.
(8) Actuarial assumptions
Principal actuarial assumptions are as follows:

Note: "Asset ceiling adjustments" represents adjustments to reflect certain limits on the recording of net defined benefit assets at overseas consolidated subsidiaries applying the accounting
standard “Employee Benefits” (IAS 19).

Discount rateLong-term expected rate of return on plan assets(%)

As of March 31, 2023

As of March 31, 2022

0.2–1.5
0.7–1.4

0.2–1.0
0.5–1.1

3. Defined contribution pension plans
The contributions of the Company and its consolidated subsidiaries to the defined contribution pension plan are as follows:

196

Strategy & Business Platform Supporting Our Purpose Story

FY2021(April 1, 2021 – March 31, 2022)

Ending balance

Past service costs(6) Remeasurements of defined benefit plans included in Accumulated other comprehensive income
Remeasurements of defined benefit plans (before tax effect) consist of the following:

FY2022(April 1, 2022 – March 31, 2023)

Others(Yen in millions)

FY2021(April 1, 2021 – March 31, 2022)

As of March 31, 2023

(2) Changes in plan assets

Actuarial gains (losses) arising in current year(5) Remeasurements of defined benefit plans included in Other comprehensive income
Remeasurements of defined benefit plans (before tax effect) consist of the following:
FY2022(April 1, 2022 – March 31, 2023)

Note: The Company and some consolidated subsidiaries use the simplified method in calculation of retirement benefit obligations.

Beginning balance
Expected return on plan assets

FY2021(April 1, 2021 – March 31, 2022)

FY2022 (April 1, 2022 – March 31, 2023)

FY2021 (April 1, 2021 – March 31, 2022)

12,463

10,318(Yen in millions)197

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Notes to Consolidated Financial Statements

Investment Property

Stock Options

1. Some consolidated subsidiaries own office buildings and land mainly in Tokyo, Osaka and Nagoya, of which some properties are leased.
The carrying amount shown on the consolidated balance sheet, its change during the year and the fair value at the end of the fiscal year ofthese investment properties are as follows:

1. Expenses related to stock options on the consolidated statement of income(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

Carrying amount shown on the consolidated balance sheet
Beginning balance

FY2021(April 1, 2021 – March 31, 2022)

FY2021(April 1, 2021 – March 31, 2022)

Loss adjustment expenses—

21

Operating and general administrative expenses—

94(Note) The Company and its major domestic consolidated subsidiaries has adopted a stock-based compensation system through BIP Trust in the previous fiscal year.

86,79584,331

Change during the year

(1,840)2,461Ending balance

84,954

86,792

148,785

159,382

Fair value at the end of the fiscal year

(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

2. Details of stock options(1) Details of stock options

Note: 1. Carrying amount shown on the consolidated balance sheet is the acquisition cost after the deduction of accumulated depreciation and accumulated impairment losses.
2. For the fiscal year 2022, the increase is mainly due to the acquisition of real estate properties of 8,263 million yen and renovation work of 3,415 million yen, and the decrease is mainly
due to the sale of real estate properties of 14,298 million yen. In addition, for the fiscal year 2021, the increase is mainly due to the acquisition of real estate properties of 3,104 millionyen.
3. Fair value at the end of the fiscal year is primarily based on appraisals by qualified independent valuers.

2. Income and expenses related to investment property are as follows:

Stock options(July 2019)

Title and numberof grantees(Note 1)

(Yen in millions)

FY2022(April 1, 2022 – March 31, 2023)

FY2021(April 1, 2021 – March 31, 2022)

Rental income
Direct operating expenses

6,654
8,470

7,462
5,862

Net amount(1,815)

1,600

Others (Gains and losses on disposal by sales, etc.)

6,379

2,255

Note: Rental income is included in Interest and dividends. Direct operating expenses such as depreciation, repairs and maintenance, insurance costs, and taxes are included in Operating andgeneral administrative expenses. Others, such as gains and losses on disposal by sales and impairment losses, is included in Extraordinary gains or Extraordinary losses.

Number of stock
options (Note 2)
Grant date
Vesting conditions
Requisite service
periodExercise period(Note 4)

Stock options(July 2018)

Directors of the Company: 12
Executive officers of
the Company: 13
Directors of the Company’s
consolidated subsidiaries: 17
Executive officers of the Company’s
consolidated subsidiaries: 52

Directors of the Company: 13
Executive officers of
the Company: 17
Directors of the Company’s
consolidated subsidiaries: 14
Executive officers of the Company’s
consolidated subsidiaries: 49

Directors of the Company: 13
Executive officers of
the Company: 12
Directors of the Company’s
consolidated subsidiaries: 15
Executive officers of the Company’s
consolidated subsidiaries: 51

Common stock: 480,300 shares

Common stock: 481,200 shares

Common stock: 479,700 shares

July 9, 2019
(Note 3)

July 10, 2018
(Note 3)

July 11, 2017
(Note 3)

From July 10, 2019 to June 30, 2020

From July 11, 2018 to June 30, 2019

From July 12, 2017 to June 30, 2018

From July 10, 2019 to July 9, 2049

From July 11, 2018 to July 10, 2048

From July 12, 2017 to July 11, 2047

Number of stock
options (Note 2)
Grant date
Vesting conditions
Requisite service
periodExercise period(Note 4)

Stock options(July 2015)

Directors of the Company: 11
Executive officers of
the Company: 8
Directors of the Company’s
consolidated subsidiaries: 14
Executive officers of the Company’s
consolidated subsidiaries: 51

Directors of the Company: 10
Executive officers of
the Company: 8
Directors of the Company’s
consolidated subsidiaries: 14
Executive officers of the Company’s
consolidated subsidiaries: 46

Directors of the Company: 10
Executive officers of
the Company: 6
Directors of the Company’s
consolidated subsidiaries: 23
Executive officers of the Company’s
consolidated subsidiaries: 34

Common stock: 535,200 shares

Common stock: 480,000 shares

Common stock: 581,400 shares

July 12, 2016
(Note 3)

July 14, 2015
(Note 3)

July 8, 2014
(Note 3)

From July 13, 2016 to June 30, 2017

From July 15, 2015 to June 30, 2016

From July 9, 2014 to June 30, 2015

From July 13, 2016 to July 12, 2046

From July 15, 2015 to July 14, 2045

From July 9, 2014 to July 8, 2044

Stock options(July 2013)

Title and numberof grantees(Note 1)

Number of stock
options (Note 2)
Grant date
Vesting conditions
Requisite service
periodExercise period(Note 4)

Stock options(July 2014)

Stock options(July 2012)

Strategy & Business Platform Supporting Our Purpose Story

Stock options(July 2016)

Title and numberof grantees(Note 1)

Stock options(July 2017)

Stock options(July 2011)

Directors of the Company: 10
Executive officers of
the Company: 4
Directors of the Company’s
consolidated subsidiaries: 23
Executive officers of the Company’s
consolidated subsidiaries: 30

Directors of the Company: 10
Executive officers of
the Company: 4
Directors of the Company’s
consolidated subsidiaries: 24
Executive officers of the Company’s
consolidated subsidiaries: 30

Directors of the Company: 11
Executive officers of the Company: 7
Directors of the Company’s
consolidated subsidiaries: 22
Executive officers of the Company’s
consolidated subsidiaries: 31

Common stock: 606,300 shares

Common stock: 787,500 shares

Common stock: 666,300 shares

July 9, 2013
(Note 3)

July 10, 2012
(Note 3)

July 12, 2011
(Note 3)

From July 10, 2013 to June 30, 2014

From July 11, 2012 to June 30, 2013

From July 13, 2011 to June 30, 2012

From July 10, 2013 to July 9, 2043

From July 11, 2012 to July 10, 2042

From July 13, 2011 to July 12, 2041

Note: 1. The number of directors of the Company’s consolidated subsidiaries and executive officers of the Company’s consolidated subsidiaries exclude those concurrently serving as directorsof the Company and executive officers of the Company.
2. The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022. The number of stock options is converted into the numbers ofequivalent shares and presented on an after-stock split basis.

198

199

Financial Data—

Financial and Non-Financial Data—

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Notes to Consolidated Financial Statements
3. Stock options are vested on the grant date. If directors or executive officers of the Company or the Company’s subsidiaries retire or resign from their position before the end of service
period, the number of exercisable stock options is calculated by the following formula:
Exercisable stock options = Stock options allotted × Months of service from July in the fiscal year of grant to the month of retirement / 12
Remaining stock options expire after the retirement date, and cannot be exercised after that date.
4. Stock options can only be exercised within ten days from the day following the retirement or resignation from the position of directors, executive officers, or Audit & Supervisory Board
Members of the Company or the Company’s consolidated subsidiaries.

(2) Figures relating to stock options
The number of stock options that existed in the fiscal year 2022 is converted into the number of equivalent shares and listed.
(a) Number of stock options
Stock options(July 2019)

Stock options before vesting (converted
into the number of equivalent shares)
Outstanding at the beginning of the year

Stock options(July 2018)

Stock options(July 2017)

Stock options(July 2016)

Stock options(July 2015)

Stock options(July 2014)

—

—

—

—

—

—

—

—

—

—

—

—

Forfeited

—

—

—

—

—

—

Vested

—

—

—

—

—

—

—

—

—

—

—

—

3,000

3,300

3,900

2,700

2,400

2,400

Vested

—

—

—

—

—

—

Exercised

—

—

—

—

—

—

Forfeited (Note)

—

—

—

—

—

—

3,000

3,300

3,900

2,700

2,400

2,400

Stock options(July 2013)

Stock options(July 2012)

Stock options(July 2011)

Outstanding at the end of the year

—

—

—

Granted———Forfeited———

Vested———Outstanding at the end of the year

—

—

—

Exercisable stock options (converted
into the number of equivalent shares)
Outstanding at the beginning of the year

Stock options(July 2016)

Stock options(July 2015)

300

300

300

300

Average share price at exercise

—

—

—

—

—

523,700

500,700

455,100

337,700

500,800

Stock options(July 2014)

Stock options(July 2013)

Stock options(July 2012)

Stock options(July 2011)

Exercise price (Note)

300

300

300

Average share price at exercise

—

—

—

—

310,800

332,600

181,900

219,500

Fair value on the grant date

300

300

Note: 1. Exercise price per one stock option
2. The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022. The above exercise prices are presented on an after-stock split
basis.

3. Valuation technique used for the estimated fair value of stock options
There were no stock options granted during the fiscal year 2022.
4. Estimate of vested number of stock options
Not applicable, as all rights have vested.

Per Share Information(Yen)

FY2022(April 1, 2022 – March 31, 2023)

FY2021(April 1, 2021 – March 31, 2022)

1,823.65

1,977.35

Net income per share – Basic

187.33204.48Net income per share – Diluted

187.33204.42

Net assets per share

Note: 1. Calculations of "Net income per share – Basic" and "Net income per share – Diluted" are based on the following figures.

FY2022(April 1, 2022 – March 31, 2023)

FY2021(April 1, 2021 – March 31, 2022)

376,447

420,484

Net income per share – Basic

3,000

5,100

1,800

—

—

—

Net income attributable to owners of the parent (Yen in millions)

Exercised———

Forfeited (Note)

—

—

—

3,000

5,100

1,800

Amount not attributable to common shareholders (Yen in millions)
Net income attributable to owners of the parent related tocommon stock (Yen in millions)Average number of shares outstanding (In thousand shares)

Outstanding at the end of the year

Stock options(July 2017)

Exercise price (Note)

VestedNote: The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022. The above numbers of shares are presented on an after-stock split
basis.

Stock options(July 2018)

Net income per share – Diluted
Adjustment of net income attributable to owners of theparent (Yen in millions)
Increased number of common stock (In thousand shares)
Increased number of stock acquisition rights (In thousand shares)——

376,447

420,484

2,009,454

2,056,279

—

—

27

592

27

592

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Stock options before vesting (converted
into the number of equivalent shares)
Outstanding at the beginning of the year

(Yen)

Stock options(July 2019)

Fair value on the grant date

GrantedOutstanding at the end of the year
Exercisable stock options (converted
into the number of equivalent shares)
Outstanding at the beginning of the year(b) Price information

2. In the calculation of "Net income per share - Basic" and "Net income per share - Diluted", the Company shares outstanding in BIP Trust which are recognized as Treasury stock in
Shareholders' equity are included in treasury stock deducted from Average number of shares outstanding (fiscal year 2022: 2,212 thousand shares, fiscal year 2021: 1,506 thousand
shares). In addition, in the calculation of "Net assets per share", such shares are included in treasury stock deducted from the number of total shares outstanding (fiscal year 2022:
2,117 thousand shares, fiscal year 2021: 2,458 thousand shares).
3. The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022. "Net assets per share", "Net income per share - Basic" and "Netincome per share - Diluted" are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.

200

201

Financial Data—

Financial and Non-Financial Data—

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Notes to Consolidated Financial Statements

Solvency Margin Ratio

Subsequent Events

Sufficiency of solvency of insurance holding company and its subsidiaries, etc. to fulfill
payment obligations such as insurance claims

On May 19, 2023 the Company's board of directors resolved repurchases of its own shares, pursuant to Article 156 of theCompanies Act which is applicable in accordance with Article 165, Paragraph 3 of the Companies Act, as detailed below.
1. Reason for the repurchase of shares
The Company intends to repurchase its own shares in order to implement flexible financial policies.
2. Class of shares to be repurchased
Common stock of the Company
3. Aggregate number of shares to be repurchased
Up to 30,000,000 shares
4. Aggregate purchase price of shares
Up to 50 billion yen
5. Period in which repurchases may be madeFrom May 22, 2023 through September 22, 2023

Tokio Marine Holdings' solvency margin ratio (consolidated)(Yen in millions)

Tokio Marine &Nichido Fire
Insurance Co., Ltd.
Delphi Financial
Group, Inc.

Beginningbalance(Yen in millions)Endingbalance(Yen in millions)First series of domestic
subordinated unsecured
bonds with interest
deferral option and early
redemption option

Dec. 24, 2019

Subordinated Bondin USDMay 23, 2007

19,753(USD 171,737
thousand)Jun. 13, 2007

42
(USD 370
thousand)—

219,795

222,811

Surplus Note

Total

—

200,000

Coupon(%)

200,000
22,811(USD 171,902
thousand)

0.96

Collateral

N/A

1,129,262

Reserve for price fluctuation

132,394

138,331

Contingency reserve

64,711

61,8691,136,120

1,145,489

3,505

3,411

1,248,244

2,313,740

286,856

273,658

Catastrophe loss reserve
General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities and deferred gains(losses) on hedge transactions before tax effect deductions
Unrealized gains (losses) on land

Maturity date

Dec. 24, 2079

Total amount of unrecognized actuarial difference and unrecognizedprior service costs before tax effect deductions
Excess of premium reserve, etc.

(20,010)(20,759)

287,390294,676

Subordinated debt, etc.

300,000

300,000

Amounts within "Excess of premium reserve, etc." and"Subordinated debt, etc." not calculated into the margin
Total margin of Small Amount and Short Term Insurers

—

—

783

628

156,141

159,990513,019473,330

1,576,526

1,439,272

General insurance risk on non-life insurance contracts (R1)

486,054

411,122

Life insurance risk (R2)

39,691

34,923

Third sector insurance risk (R3)

66,602

51,776

Deductions
Others(B) Total amount of risks

3.35–7.80

1.52
—

N/A

N/A
—

May 1, 2067

Jun. 13, 2022—√(√(R +R )+R +R ) +(R +R +R ) +R +R
1

2

2

2

3

4

2

5

6

7

2

8

9

Insurance risk of Small Amount and Short Term Insurers (R4)
Assumed interest rate risk (R5)10

1019,663

21,431

Note: 1. The figures denoted with ( ) in the columns for beginning balance and ending balance are the amounts denominated in foreign currency.
2. There is no redemption schedule within five years after the consolidated closing date.

Minimum guarantee risk on life insurance contracts (R6)

(Schedule of borrowings)

Business administration risk (R8)39,71135,940Catastrophe risk on non-life insurance contracts (R9)395,276

315,825(C) Solvency margin ratio on a consolidated basis [(A)/{(B) × 1/2}] ×100

627.5%

827.3%

Asset management risk (R7)Beginningbalance(Yen in millions)Endingbalance(Yen in millions)Averageinterest rate(%)

Short-term borrowings

23,57930,521

4.4—

Long-term borrowings to be repaid within 1 year

66,136———

Lease obligations to be repaid within 1 year

3,384

12,1803.2

189,078

278,379

3.0—
Apr. 30, 2024 toJan. 1, 2046
Jan. 1, 2024 toAug. 31, 2042—

Long-term borrowings other than those to be repaid within 1 year
Lease obligations other than those to be repaid within 1 year

10,81552,675

3.2

Total

292,993373,756—

Maturity date

Note: 1. Average interest rate is calculated based on the interest rate as of the end of the fiscal year and the outstanding principal amount.
2. The above amount is included in Other liabilities in the consolidated balance sheet.
3. Repayment schedule of long-term borrowings and lease obligations to be repaid within 5 years (excluding the amount to be repaid within 1 year) after the closing date is as follows:(Yen in millions)Over 1 to 2 years

Over 2 to 3 years

Over 3 to 4 years

Over 4 to 5 years

Long-term borrowings

39,81078,293—63,032

Lease obligations

11,250

9,200

7,385

6,055

(Schedule of asset retirement obligations)
Detailed information is omitted due to its immateriality.

202

5,953,649

1,150,128

2,188

2,235

976,083

959,700

Note: "Solvency margin ratio on a consolidated basis" is calculated in accordance with Article 210-11-3 and 210-11-4 of the Ordinance for Enforcement of the Insurance Business Act andPublic Notice No. 23 issued by the Financial Services Agency in 2011.

Solvency margin ratio (consolidated)
1. Most subsidiaries in Tokio Marine Group engage in non-life insurance business, life insurance business and Small Amount and ShortTerm insurance business. In addition to reserves to cover claim payments, payments for maturity refunds of saving type insurance
policies, etc., it is necessary for insurance groups to maintain sufficient solvency in order to cover risks that exceed normal estimates, e.g.
occurrences of a major catastrophe, or a significant decline in value of assets held by insurance groups.

Strategy & Business Platform Supporting Our Purpose Story

Privilege Underwriters
Reciprocal Exchange

Issue date

4,947,004

Shareholders’ equity less adjusting items(Schedule of corporate bonds)
Series

As of March 31, 2022

(A) Total amount of solvency margin

Supplementary Schedule

IssuerAs of March 31, 2023

2. (C) Solvency margin ratio is the ratio of (A) Total amount of solvency margin (i.e. solvency of insurance company groups in terms of theircapital, reserves, etc.) to (B) Total amount of risks (i.e. risks that exceed normal estimates) which is calculated in accordance with theInsurance Business Act.
3. "Risks that exceed normal estimates" is composed of risks described below.
(1) General insurance risk on non-life insurance contracts, life insurance risk, third sector insurance risk and insurance risk of Small
Amount and Short Term Insurers: risk that insurance claims occur in excess of normal estimates excluding catastrophe risk on
non-life insurance contracts.
(2) Assumed interest rate risk: risk that invested assets fail to yield assumed interest rates due to factors such as downturn of investment
conditions.
(3) Minimum guarantee risk on life insurance contracts: risk that value of assets related to the minimum guarantee for benefits of
insurance contracts, which are managed as a separate account, fluctuates in excess of normal estimates and falls below the minimum
guaranteed benefits when they are to be paid.
(4) Asset management risk: risk that the prices of retained securities and other assets fluctuate in excess of normal estimates.

203

Financial Data—

Financial and Non-Financial Data—

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Solvency Margin Ratio(5) Business administration risk: risk that occurs in excess of normal estimates and does not fall under other categories.
(6) Catastrophe risk on non-life insurance contracts: risk that a major catastrophe in excess of normal estimates which is equivalent to theGreat Kanto Earthquake or Isewan Typhoon or overseas major catastrophe occurs.
4. Subsidiaries that were excluded from the scope of consolidation in preparation of the consolidated financial statements due toimmateriality were included within the calculation of the consolidated solvency margin ratio.
5. Solvency of insurance company groups in terms of their capital, reserves, etc. ((A) Total amount of solvency margin) is the total amount of
net assets excluding planned outflows, certain reserves (e.g. price fluctuation reserve, contingency reserve, catastrophe loss reserve,etc.) and part of unrealized gains (losses) on land, etc.
6. Solvency margin ratio on a consolidated basis is one of the objective indicators used by the regulatory authority to supervise corporategroups headed by an insurance holdings company. A ratio exceeding 200% indicates sufficient solvency to fulfill payment obligations suchas insurance claims.

Sufficiency of solvency of major domestic subsidiaries to fulfill payment obligations such as insurance
claimsSolvency margin ratio (non-consolidated) for Tokio Marine & Nichido Fire Insurance Co., Ltd.
(Yen in millions)(A) Total amount of solvency margin
Shareholders’ equity less adjusting items
Reserve for price fluctuation
Contingency reserve
General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities and deferredgains (losses) on hedge transactions before tax effect deductions
Unrealized gains (losses) on land

As of March 31, 2022

5,287,626

5,384,523

1,421,939

1,365,291

108,000

115,167

9,578

7,546

1,081,242

1,085,378

202

183

1,772,797

1,948,640

260,134

249,460——

Subordinated debt, etc.
Amounts within "Excess of policyholders’ contract deposits" and"Subordinated debt, etc." not calculated into the margin
Deductions

200,000

200,000

—

—

590

—

Others434,321412,854

1,231,234

1,276,937

208,993205,776

Excess of policyholders’ contract deposits(B) Total amount of risks√(R +R ) +(R +R ) +R +R
1

2

2

3

4

2

General insurance risk (R1)

5

6

Third sector insurance risk (R2)——

Assumed interest rate risk (R3)

13,762

15,485

Asset management risk (R4)

1,023,509

1,055,088

Business administration risk (R5)27,831

28,688Catastrophe risk (R6)

145,286

158,078858.9%

843.3%(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

2. (C) Solvency margin ratio is the ratio of (A) Total amount of solvency margin (i.e. solvency of insurance companies in terms of theircapital, reserves, etc.) to (B) Total amount of risks (i.e. risks that exceed normal estimates), which is calculated in accordance with theInsurance Business Act.
3. "Risks that exceed normal estimates" is composed of risks described below.
(1) (General) insurance risk, third sector insurance risk: risk that insurance claims occur in excess of normal estimates excluding
catastrophe risk.
(2) Assumed interest rate risk: risk that invested assets fail to yield assumed interest rates due to factors such as downturn of investment
conditions.
(3) Minimum guarantee risk: risk that value of assets related to the minimum guarantee for benefits of insurance contracts, which aremanaged as a separate account, fluctuates in excess of normal estimates and falls below the minimum guaranteed benefits when
they are to be paid.
(4) Asset management risk: risk that prices of retained securities and other assets fluctuate in excess of normal estimates.
(5) Business administration risk: risk that occurs in excess of normal estimates and does not fall under other categories.
(6) Catastrophe risk: risk that a major catastrophe in excess of normal estimates which is equivalent to the Great Kanto Earthquake or
Isewan typhoon occurs.
4. Solvency of insurance companies in terms of their capital, reserves, etc. ((A) Total amount of solvency margin) is the total amount of net
assets excluding planned outflows, certain reserves (e.g. reserve for price fluctuation, contingency reserve, catastrophe loss reserve, etc.)
and part of unrealized gains (losses) on land, etc.
5. Solvency margin ratio is one of the objective indicators used by the regulators to supervise insurance companies. A ratio exceeding 200%
indicates sufficient solvency to fulfill payment obligations such as insurance claims.
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Catastrophe loss reserve

As of March 31, 2023

Solvency margin ratio (non-consolidated)
1. In addition to reserves to cover claim payments, payments for maturity refunds of saving type insurance policies, etc., it is necessary forinsurance companies to maintain sufficient solvency in order to cover risks that exceed normal estimates, e.g. occurrences of a major
catastrophe, a significant decline in value of assets held by insurance companies.

Note: "Solvency margin ratio" is calculated in accordance with Article 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and with Ministry of Finance Official
Notification No. 50 issued in 1996.

204

205

Financial Data—

Financial and Non-Financial Data—

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Solvency Margin Ratio

Solvency margin ratio (non-consolidated) for Nisshin Fire & Marine Insurance Co., Ltd.

Solvency margin ratio (non-consolidated) for Tokio Marine & Nichido Life Insurance Co., Ltd.
(Yen in millions)

As of March 31, 2023

As of March 31, 2022

(Yen in millions)

As of March 31, 2023

As of March 31, 2022

133,868

145,459

555,469

648,429

Shareholders’ equity less adjusting items

60,57460,483

Shareholders’ equity less adjusting items

126,960

119,748

Reserve for price fluctuation

5,048

4,896

Reserve for price fluctuation

19,346

18,267——

Contingency reserve

55,13354,32353,92656,981

20

42

4,009

12,863

2,461

2,402

Excess of policyholders’ contract deposits——

Subordinated debt, etc.

Subordinated debt, etc.

—

—

—

—

Amounts within "Excess of continued Zillmerized reserve" and"Subordinated debt, etc." not calculated into the margin
Deductions——

Others(A) Total amount of solvency margin

Contingency reserve
Catastrophe loss reserve
General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities and deferredgains (losses) on hedge transactions before tax effect deductions
Unrealized gains (losses) on land

Amounts within "Excess of policyholders’ contract deposits" and"Subordinated debt, etc." not calculated into the margin
Deductions
Others(B) Total amount of risks√(R +R ) +(R +R ) +R +R
1

2

2

3

4

2

5

6

General insurance risk (R1)

Third sector insurance risk (R2)

(A) Total amount of solvency margin

General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities and deferredgains (losses) on hedge transactions before tax effect deductions × 90%
Unrealized gains (losses) on land × 85%

325

338

17,118161,832——

Excess of continued Zillmerized reserve

287,390294,676√(R +R ) +(R +R +R ) +R

100,000

100,000(121,675)(153,442)——

70,87052,685

7,826

7,790

106,044

114,91322,542

23,361

Insurance risk (R1)

16,734

16,652

14,448

14,614

Third sector insurance risk (R8)

7,011

6,790

—

—

Assumed interest rate risk (R2)

5,261

5,226

(B) Total amount of risks

1

8

2

2

3

7

2

4

Assumed interest rate risk (R3)

639

719

Minimum guarantee risk (R7)

2,188

2,235

Asset management risk (R4)

5,972

6,572

Asset management risk (R3)

93,344102,311

543

567

6,110

6,461

1,187.6%

1,245.2%

Business administration risk (R5)
Catastrophe risk (R6)(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

Note: "Solvency margin ratio" is calculated in accordance with Article 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and with Ministry of Finance Official
Notification No. 50 issued in 1996.

Business administration risk (R4)(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

Note: "Solvency margin ratio" is calculated in accordance with Article 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and with Ministry of Finance Official
Notification No. 50 issued in 1996.

As of March 31, 2023

As of March 31, 2022

1,759

1,743

1,609

1,598

Reserve for price fluctuation

—

—

—

Catastrophe loss reserve

10

8

—

—

—

—

950

3,129

General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities
before tax effect deductions
Unrealized gains (losses) on landPart of reserve for dividends to policyholders excluding dividends
for following period
Future profit

—

—

—

—

—

—

—

—

Tax effect

140

135

Subordinated debt, etc.

——

Deductions

—

—

105

101

31

31

As of March 31, 2023

As of March 31, 2022

(A) Total amount of solvency margin

12,98815,484

Total net assets excluding deferred assets, etc.

12,037

12,354

Reserve for price fluctuation—

Contingency reserve
Catastrophe loss reserve
General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities and deferredgains (losses) on hedge transactions before tax effect deductions
Unrealized gains (losses) on land

0

0

—

—

—

—

Excess of policyholders’ contract deposits——

Subordinated debt, etc.
Amounts within "Excess of policyholders’ contract deposits" and"Subordinated debt, etc." not calculated into the margin
Deductions

—

—

—

—

—

—

(B) Total amount of risks
Insurance risk

√R +R +R +R
1

2

2

2

3

4

—

—

4,666

4,784

General insurance risk (R1)

5

5

4,205

4,312

Catastrophe risk (R4)26

26

Third sector insurance risk (R2)——

Asset management risk (R2)77

73

Assumed interest rate risk (R3)——

Business administration risk (R3)22Asset management risk (R4)

359

427

3,329.6%

3,434.0%

Business administration risk (R5)

145

151

Catastrophe risk (R6)

300

300

556.6%

647.2%

Others(B) Total amount of risks√(R +R ) +(R +R ) +R +R
1

2

2

3

4

2

General insurance risk (R1)

(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

56(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

Strategy & Business Platform Supporting Our Purpose Story(Yen in millions)(Yen in millions)Shareholders’ equity less adjusting items

2,664
1,128.5%

Solvency margin ratio (non-consolidated) for Tokio Marine Millea SAST Insurance Co., Ltd.

Solvency margin ratio (non-consolidated) for E. design Insurance Co., Ltd.

(A) Total amount of solvency margin

2,490
1,047.6%

Note: The above figures are calculated in accordance with Article 211-59 and 211-60 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 14 issued by the
Financial Services Agency in 2006.

Note: "Solvency margin ratio" is calculated in accordance with Article 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and with Ministry of Finance Official
Notification No. 50 issued in 1996.

206

207

Financial Data—

Financial and Non-Financial Data—

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Solvency Margin Ratio

Market Consistent Embedded Value (MCEV)
Embedded Value for Tokio Marine ＆ Nichido Life Insurance Co., Ltd. (TMNL)

Solvency margin ratio (non-consolidated) for Tokio Marine West SAST Insurance Co., Ltd.

About MCEV(Yen in millions)

As of March 31, 2023

As of March 31, 2022

2,545

2,014

1,911

1,530

Reserve for price fluctuation——

Catastrophe loss reserve

8

6

General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities before
tax effect deductions
Unrealized gains (losses) on landPart of reserve for dividends to policyholders excluding dividends
for following period
Future profit

—

—

—

—

Tax effect

625

477

Subordinated debt, etc.

——

Deductions

—

—

102

94

27

27

(A) Total amount of solvency margin
Total net assets excluding deferred assets, etc.

(B) Total amount of risks
Insurance risk

√R +R +R +R
1

2

2

2

3

4

—

—

—

—

—

—

The current Japanese financial accounting standards focus on conservativeness and have the limitation that the profits generated from life
insurance business are generally undervalued shortly after underwriting contracts in terms of the valuation and assessment of performanceof life insurance business.
Embedded values (EV) are calculated as the total of the "adjusted net worth" and the "value of in-force." EV is designed to address thelimitations of the financial accounting standards in order to facilitate an appropriate evaluation of value and improve performanceassessment, considering the actual situation of the business performance.
While there have been various methodologies for calculation of EV, the European Insurance CFO Forum released its MCEV Principles,the European Insurance CFO Forum Market Consistent Embedded Value Principles, in June 2008, to enhance the consistency of valuation
standards and unify the standards for disclosures. TMNL has been disclosing its EV in compliance with the MCEV Principles to enhance thedisclosure since the fiscal year ended March 31, 2015.

MCEV as of March 31, 2023
1. MCEV as of March 31, 2023
MCEV of TMNL as of March 31, 2023, was 1,199.3 billion yen, a decrease of 10.7 billion yen from the previous fiscal year end (March 31,2022). MCEV consisted of 48.7 billion yen of adjusted net worth and 1,150.6 billion yen of value of in-force.

General insurance risk (R1)

4

4Catastrophe risk (R4)22

22

Asset management risk (R2)

77

69

Adjusted net worth

542.1

2

48.7

Business administration risk (R3)

1

Value of in-force

1,150.6

667.9

322.7

4,986.5%

4,275.9%

MCEV at fiscal year-end

1,199.3

1,210.0

1,177.3

75.0

69.4

55.0

(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

Note: The above figures are calculated in accordance with Article 211-59 and 211-60 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 14 issued by the
Financial Services Agency in 2006.

(Yen in millions)

As of March 31, 2023—

Total net assets excluding deferred assets, etc.

486—

Reserve for price fluctuation——

Catastrophe loss reserve

0—

General allowance for doubtful accounts
Unrealized gains (losses) on available-for-sale securities before
tax effect deductions
Unrealized gains (losses) on landPart of reserve for dividends to policyholders excluding dividends
for following period
Future profit

—

—

—

—

—

—

—

—

—

—

Tax effect——Subordinated debt, etc.

——

Deductions

—

—

4

—

0

—

General insurance risk (R1)0—

Catastrophe risk (R4)——

Asset management risk (R2)

4—

Business administration risk (R3)0—20,928.4%—(B) Total amount of risks
Insurance risk

√R +R +R +R
1

2

2

2

3

4

(C) Solvency margin ratio [(A)/{(B) × 1/2}] × 100

FY2020854.6

2. Change in MCEV
During FY2022, the change in MCEV (before dividends paid) was 76.5 billion yen, which was a decrease of 2.5 billion yen from the previous
fiscal year change in MCEV (FY2021). The reactionary decrease of the actuarial assumption changes and the reactionary increase ineconomic variances from FY2021 offset each other, and so changes in MCEV year on year were flat overall. (For details on the changes,
refer to “Reconciliation Analysis of MCEV from the End of FY2021.”)(Billions of yen)

As of March 31, 2022

486(A) Total amount of solvency margin

New business value

FY2021

Change in MCEV
(Before dividends paid)(Reference)
Change in MCEV
(Before dividends paid and excluding economic variances)

FY2022

FY2021

76.5

79.1

86.7

125.6

Strategy & Business Platform Supporting Our Purpose Story

Solvency margin ratio (non-consolidated) for Tokio Marine X SAST Insurance Co., Ltd.

(Billions of yen)

FY2022

Note: The above figures are calculated in accordance with Article 211-59 and 211-60 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 14 issued by the
Financial Services Agency in 2006.

208

209

Financial Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Market Consistent Embedded Value (MCEV)
Embedded Value for Tokio Marine ＆ Nichido Life Insurance Co., Ltd. (TMNL)
Reconciliation Analysis of MCEV from the End of FY 2021
The table below shows the reconciliation analysis of MCEV as of March 31, 2023 with the MCEV as of March 31, 2022.

(Billions of yen)

MCEVOpening MCEV (MCEV as of March 31, 2022)(1) Dividends paid
Adjusted opening MCEV
(2) New business value(3) Expected existing business contribution (risk-free rate)(4) Expected existing business contribution (in excess of risk-free rate)(5) Actuarial experience variances(6) Actuarial assumption changes(7) Other operating variances(8) Operating MCEV earnings ((2)–(7))(9) Economic variances(10) Other non-operating variances
Total MCEV earnings (before dividends paid)
Closing MCEV (MCEV as of March 31, 2023)

1,210.0(87.3)
1,122.7
75.0
19.3
6.5
(22.9)
10.7
(1.9)
86.7
(10.1)―
76.5
1,199.3

The sensitivity analysis in P.191 presented the impact of changing the extrapolation of JPY-interest rates beyond the 40th year to use anultimate forward rate (UFR) method. This UFR method entails setting the JPY ultimate forward rate to 3.8%, extrapolating rates from year
30,and applying the Smith-Wilson method so that forward rates from the 31st year onwards approach to the UFR in 30 years. This method
was established with reference to the global Insurance Capital Standard (ICS) currently in development by the International Association of
Insurance Supervisors (IAIS). Representative JPY interest rates are as follows:
JPY

Term
1 year
5 years
10 years
20 years
30 years
40 years
50 years

End of March 2023

(0.10%)
0.10%
0.45%
1.09%
1.35%
1.72%
2.10%

We have not included a liquidity premium in the risk-free rates given that definitions in the MCEV Principles are not clear and generally
accepted practice has not yet been established. Negative interest rates are not floored at zero.
2. Insurance Assumptions
Assumptions

Sensitivity Analysis

Mortality and morbidity rates

The impacts of changing specified assumptions underlying the MCEV are as follows.
Assumption

Base case: MCEV as of March 31, 2023
(1) Interest rates(8) Morbidity rates(9) Required capital(10) Foreign exchange rates

No change
50bp decrease
50bp increase
Swap
Ultimate fwd rate
10% decrease
25% increase
25% increase
10% decrease
×0.9
Death protection products: ×0.95
A&H products and annuity
products: ×0.95
×0.95
Solvency margin ratio of 200%
10% appreciation of JPY(Billions of yen)

MCEV

Change in amountRate of change

1,199.3
1,115.3
1,200.5
971.0
1,379.1
1,196.2
1,193.9
1,133.8
1,244.8
1,204.9
1,221.3―(839)
11(2,282)
1,797
(30)
(54)
(655)
454
55
219

―
(7.0%)
0.1%(19.0%)
15.0%(0.3%)(0.5%)(5.5%)
3.8%
0.5%
1.8%

1,186.4(129)(1.1%)

1,272.1
1,199.3
1,200.9

727
―
16

6.1%
―
0.1%

Surrender and lapse rates
Renewal rates

Operating expense rates

Effective tax rate
Consumption tax rate
Inflation rate

Assumptions
1. Risk-Free Rates
We have used government bond yields as of the end of March 2023.
The Company has made sets to the method of 1-year forward rate of government bonds in the 41st year and thereafter, assuming that
adjustments were carried out based on the past yield fluctuations in the 40-year spot rate.We have adjusted and used Bloomberg’s
government bond yields as our data source.The government bond yields (spot rates) for key terms are shown below.

Policyholder dividend

Reinsurance

JPY

Term
1 year
5 years
10 years
20 years
30 years
40 years
50 years

210

End of March 2023

End of March 2022

(0.10%)
0.10%
0.45%
1.09%
1.35%
1.36%
1.43%

(0.08%)
0.03%
0.23%
0.73%
0.95%
0.95%
1.03%

With reference to the break-even inflation rate from the most recently issued inflation index-linked
government bond and the past Consumer Price Index (CPI), inflation rates are set as shown below.
1.0%Strategy & Business Platform Supporting Our Purpose Story(2) Stock/real estate market values(3) Stock/real estate implied volatility(4) Interest swaption implied volatility(5) Maintenance expenses(6) Surrender and lapse rates(7) Mortality rates

Change in assumption

Basis of assumptions
Mortality and morbidity rates are developed based on claims experience of the latest 1–3 years, in principle, by
type of protection, policy year, attained age, and other attributes. For A&H morbidity rates, temporary impacts
due to the spread of COVID-19 are excluded.
Surrender and lapse rates are developed based on the experience of the most recent year, in principle, by lineof business, premium mode, and policy year.
Renewal rates are developed based on past experience. Policies for which renewals are projected
are A&H products, whose impact is large due to a high number of limited term in-force policies.
For the sake of simplicity, we have not reflected future renewals for some riders.
Operating expense rates are developed from past experience based on the ratio (unit cost) of overall actual
operating expenditures to the policy count or the premium separately for acquisition and maintenanceexpenses. Some of the operating expense rates were adjusted by removing one-off costs which are notordinarily expected to be incurred in future periods. The removed one-off cost is 1,580 million yen, which is tiedprimarily to costs relating to response, etc. for insurance premiums and incurred claims related to COVID-19
and a portion of system development costs. And with regard to system development costs for policy
acquisition and maintenance, and the information technology device costs for policy maintenance, the averageamount incurred over the past five years is reflected in the corresponding unit costs. An increase due to
inflation is reflected in future maintenance expenses.
Corporate administration costs paid to the parent company are reflected in unit costs. Other than this, there is
no look-through effect with regards to other companies within the Tokio Marine Group that needs to bereflected.
The effective tax rate is set as follows:
28.0%
The consumption tax rate is set as follows:10%

For products with interest dividends paid every 5 years, dividend rates are set based on
the interest rate level in future periods using the method consistent with the one applied todetermine the most recent dividend results.
Reinsurance premiums are recorded as expenses and reinsurance claims are recorded as profit
to reflect the fact that the Company cedes mortality risks on death protection insurance, third
sector risks on third sector and part of the minimum guarantee risks of variable annuities.
Reinsurance premiums and reinsurance claims are based on reinsurance agreements.

Caveats
Embedded values are calculated using various assumptions about the drivers of future results and the risks and uncertainties inherent inthose results; future experience may deviate, possibly materially, from that underlying the forecasts used in the EV calculation. Also, theactual market value is determined as a result of informed judgments of investors and may differ materially from an embedded value. As
such, embedded values should be used with sufficient caution.

211

Corporate Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Corporate Overview
Major Subsidiaries

Tokio Marine Holdings and Its Subsidiaries(As of March 31, 2023)

Description of Business
Tokio Marine Group is engaged in domestic non-life insurance, domestic life insurance, international insurance, and ﬁnancial and otherbusinesses.
In addition, Tokio Marine Holdings is a speciﬁed listed company. Due to the speciﬁed listed company designation, the de minimis
standard for insider trading regulations is determined on a consolidated basis.
The following is a diagram of businesses as of March 31, 2023.

Business Diagram

Note:

Domestic Non-Life Insurance Business
Tokio Marine & Nichido Fire Insurance Co., Ltd.

indicates consolidated subsidiaries;

indicates equity-method aﬃliates

Company name

Tokio Marine Millea SAST Insurance Co., Ltd.

Domestic Life Insurance Business

International Insurance Business
Tokio Marine North America, Inc.
Philadelphia Consolidated Holding Corp.
Delphi Financial Group, Inc.
HCC Insurance Holdings, Inc.
Privilege Underwriters, Inc.
Tokio Marine Kiln Group Limited
Tokio Marine Asia Pte. Ltd.
Tokio Marine Life Insurance Singapore Ltd.
Tokio Marine Seguradora S.A.

Paid-in capital

LocationMar. 20,
3
1944

JPY101,994
million100

0Tokyo, Japan

Nisshin Fire & Marine Insurance Co., Ltd.

June 10,
1908

JPY20,389
million100

0Tokyo, JapanE. design Insurance Co., Ltd.

Jan. 26,
2009

JPY29,303
million95.2

0Tokyo, Japan

Tokio Marine & Nichido Life InsuranceCo., Ltd.

Aug. 6,
1996

JPY55,000
million100

0Tokyo, Japan

Tokio Marine Millea SAST Insurance Co.,
Ltd.

Sept. 1,
2003

JPY895
million100

0

Yokohama, Japan

Tokio Marine Asset Management Co., Ltd.

Dec. 9,1985

JPY2,000
million100

0Tokyo, Japan

Tokio Marine North America, Inc.

June 29,2011

USD0
thousand

0100

Wilmington, Delaware, U.S.A.

Philadelphia Consolidated Holding Corp.

July 6,1981

USD1
thousand

0100

Bala Cynwyd, Pennsylvania, U.S.A.

Delphi Financial Group, Inc.

May 27,1987

USD1
thousand

0100

Wilmington, Delaware, U.S.A.

HCC Insurance Holdings, Inc.

Mar. 27,
1991

USD1
thousand

0100

Wilmington, Delaware, U.S.A.

Privilege Underwriters, Inc.

Jan. 5,2006

USD0
thousand

0100

Wilmington, Delaware, U.S.A.

Tokio Marine Kiln Group Limited

July 11,
1994

GBP1,010
thousand

0100

London, U.K.

Tokio Marine Asia Pte. Ltd.

Mar. 12,
1992

SGD1,250,971
thousand
THB542,000
thousand
ZAR5,000,000
thousand0100

Singapore, Singapore

Tokio Marine Life Insurance Singapore
Ltd.

May 21,
1948

SGD369,624
thousand0

90.4

Singapore, Singapore

Tokio Marine Seguradora S.A.

June 23,
1937

BRL2,373,779
thousand0

98.5

Sao Paulo, Brazil

Sept. 8,2000

INR2,878,185
thousand0

49.0

New Delhi, India

Major business

Domestic non-life
insurancebusiness
Domestic non-life
insurancebusiness
Domestic non-life
insurancebusiness
Domestic life
insurancebusiness
Domestic non-life
insurancebusiness
Financial andgeneralbusinesses
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness

Affiliate accounted for by the equity method
IFFCO-TOKIO General Insurance
Company Limited

1 The ratio of voting rights of said subsidiaries held by Tokio Marine Holdings to total voting rights
2 The ratio of voting rights of said subsidiaries held by Tokio Marine Holdings’ subsidiaries to total voting rights
3 Founded on August 1, 1879

International
insurancebusiness

Strategy & Business Platform Supporting Our Purpose Story

Tokio Marine Holdings, Inc.

Tokio Marine & Nichido Life Insurance Co., Ltd.

Date ofincorporation

Tokio Marine & Nichido Fire Insurance Co.,Ltd.

Nisshin Fire & Marine Insurance Co., Ltd.
E. design Insurance Co., Ltd.

(As of March 31, 2023)
Ratio ofRatio of
Tokio Marine
Tokio Marine
Holdings’
Holdings’
1 subsidiaries’
voting rights
2
voting rights(%)(%)

IFFCO-TOKIO General Insurance Company Limited

Financial and Other Businesses
Tokio Marine Asset Management Co., Ltd.

212

213

Corporate Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Corporate Overview

Worldwide Network of Tokio Marine Group(As of March 31, 2023)

Tokio Marine Group operates a worldwide network that spans 46 countries and regions. The Group has built a structure that can respond to
the diverse needs of customers in each country, beginning with companies setting up overseas operations, as well as overseas travelers.
North America
United States

Northern Marianas
CanadaEurope, Africa & Middle East
■ London□ Tokio Marine Kiln Group Limited(London)□ Tokio Marine HCC (London, Birmingham,
Bridgend, Bristol, Leicester, and Manchester)□ TM Claims Service Europe Ltd. (London)

FranceGermany

Netherlands

Belgium

Central & South America■ Mexico City
□ Tokio Marine HCC México Compañía Afianzadora,
S.A. de C.V. (Mexico City and others)□ Tokio Marine Compañía de Seguros, S.A. de C.V.
(Mexico City and others)
Colombia○ Tokio Marine Compañia de Seguros, S.A. de C.V.
(Bogotá)Brazil■ São Paulo□ Tokio Marine Seguradora S.A.
(São Paulo and others)□ XS3 Seguros S.A. (São Paulo)
Paraguay□ La Rural S.A. de Seguros(Asunción and others)■ Cairo□ Tokio Marine Egypt General Takaful Company(Cairo, Alexandria and others)

U.A.E.

■ Dubai□ Tokio Marine Middle East Limited (Dubai)◆ Al Futtaim Development Services Company(L.L.C.) (Dubai and Abu Dhabi)

Malaysia■ Kuala Lumpur□ Tokio Marine Insurans (Malaysia)
Berhad (Kuala Lumpur and others)□ Tokio Marine Life Insurance Malaysia Bhd.
(Kuala Lumpur and others)

Singapore■ Singapore□ Tokio Marine Asia Pte. Ltd. (Singapore)□ Tokio Marine Insurance Singapore Ltd.
(Singapore)□ Tokio Marine Life Insurance Singapore Ltd.
(Singapore)□ TM Claims Service Asia Pte. Ltd. (Singapore)■ Paris○ Tokio Marine Europe S.A. (Paris, Lyon,
Bordeaux, Colmar, and Nantes)

Saudi Arabia■ Riyadh, Jeddah□ Alinma Tokio Marine Company(Riyadh, Jeddah, and Al Khobar)■ Dusseldorf○ Tokio Marine Europe S.A. (Dusseldorf, Munich,and Frankfurt)

Turkey□ Allianz Sigorta A.S. (Istanbul)□ Allianz Hayat ve Emeklilik A.S. (Istanbul)

Brunei■ Johannesburg□ Hollard Group* Mozambique, Zambia, Botswana, Namibia, Ghana,and Lesotho○ Tokio Marine Insurance Singapore Ltd.
(Bandar Seri Begawan)○ Tokio Marine Life Insurance Singapore Ltd.
(Bandar Seri Begawan)

Indonesia■ Jakarta□ PT Asuransi Tokio Marine Indonesia(Jakarta and others)□ PT Tokio Marine Life Insurance Indonesia(Jakarta and others)■ Amsterdam○ Tokio Marine Europe S.A. (Amsterdam)○ TM Claims Service Europe Ltd. (Amsterdam)■ Brussels○ Tokio Marine Europe S.A. (Brussels)

Luxembourg□ Tokio Marine Europe S.A. (Luxembourg)

Italy■ Milan○ Tokio Marine Europe S.A. (Milan)■ Guam□ Tokio Marine Paciﬁc Insurance Limited (Guam)■ Toronto, Vancouver, and Montreal● Toronto, Vancouver, and Montreal□ Tokio Marine Canada Ltd. (Tronto)

Egypt

United Kingdom

Spain■ Barcelona○ Tokio Marine Europe S.A. (Barcelona)

Norway○ Tokio Marine Europe S.A. (Oslo)

Denmark○ Tokio Marine Europe S.A. (Hellerup)

Russia□ Tokio Marine Risk Management Rus, LLC(Moscow)

South Africa andsub-Saharancountries*

Asia & Oceania
Korea■ Seoul● SeoulPeople’s Republic■ Beijing, Shanghai, Guangzhou, Suzhou,
and Hangzhou□ The Tokio Marine & Nichido Fire Insurance
Company (China) Limited (Beijing, Shanghai,
Guangzhou, Suzhou, and Hangzhou)

India■ New Delhi, Mumbai, and Chennai□ IFFCO-TOKIO General Insurance Company Limited(New Delhi and others)□ Edelweiss Tokio Life Insurance Company
Limited (Mumbai and others)

Hong Kong■ Hong Kong
□ The Tokio Marine and Fire Insurance Company(Hong Kong) Limited (Hong Kong)

Myanmar■ Yangon● Yangon□ Grand Guardian Tokio Marine General
Insurance Company Limited (Yangon)

Taiwan■ Taipei□ Tokio Marine Newa Insurance Co., Ltd.
(Taipei and others)

Cambodia■ Phnom Penh

Australia■ Sydney and Melbourne□ Tokio Marine Management (Australasia)
Pty. Ltd. (Sydney and Melbourne)

New Zealand● Aucklandof China

MexicoSwitzerland
Ireland○ Tokio Marine HCC (Zurich)Philippines■ Manila□ Malayan Insurance Company, Inc.
(Manila and others)

Vietnam■ Hanoi and Ho Chi Minh City
□ Tokio Marine Insurance Vietnam
Company Limited (Hanoi and others)

Thailand■ Bangkok□ Tokio Marine Safety Insurance (Thailand)
Public Company Limited (Bangkok and others)□ Tokio Marine Life Insurance (Thailand)
Public Company Limited (Bangkok and others)○ Tokio Marine Europe S.A. (Kildare)

Strategy & Business Platform Supporting Our Purpose Story

Guam■ New York, New Jersey, Los Angeles, Chicago,
Atlanta, Honolulu, Philadelphia, Bala Cynwyd,
St. Louis, Houston, Dallas, and San Francisco□ Tokio Marine North America, Inc.
(New York and Bala Cynwyd)□ TMNA Services, LLC (New York, Bala Cynwyd,
and New Jersey)□ Tokio Marine America(New York, New Jersey, Los Angeles, Chicago,
Atlanta, Houston, Nashville, Dallas,
and San Francisco)□ TM Claims Service, Inc. (New York, Los Angeles,
Honolulu, and Dallas)□ First Insurance Company of Hawaii, Ltd.
(Honolulu)□ Philadelphia Insurance Companies(Bala Cynwyd and others)□ Delphi Financial Group, Inc. (New York)□ Reliance Standard Life Insurance Company(Philadelphia and others)□ Safety National Casualty Corporation(St. Louis and others)□ Tokio Marine HCC (Houston and others)□ Privilege Underwriters, Inc. (White Plains and others)

Locations of overseas bases: 46 countries and regions
Number of Japanese employees positioned overseas: 302
Number of locally hired employees: Approx. 35,000
Number of claims agents: Approx. 250 (including subagents)■ Cities where employees of Tokio Marine & Nichido
are dispatched/Representative and Liaison Ofﬁcesof Tokio Marine & Nichido● Branches of Tokio Marine & Nichido◆ Underwriting Agents of Tokio Marine & Nichido□ Group Companies & Investing Companiesof Tokio Marine Group○ Branches of Tokio Marine Group Companies

214

215

Corporate Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Corporate Overview

Facilities

Organizational Chart

Overview of Capital Investment(As of April 1, 2023)

General Meeting of
Shareholders

Audit & Supervisory
Board Members

Audit &
Supervisory Board

Nomination
Committee

Oﬃce of Audit &Supervisory Board

Amount (Yen in millions)

91,763

Domestic life insurance business

6,967International insurance business

27,653938

Total

Internal Control
Committee

Management
Meeting

Business segment

Domestic non-life insurance business

Financial and other businesses

Compensation
Committee

Board of Directors

The Group makes capital investments to improve customer services and streamline workflows, mainly comprising software related
investment. The following is a breakdown of capital investment in the fiscal year ended March 31, 2023.

127,323

Status of Major Facilities
The following are the major facilities of Tokio Marine Holdings and its consolidated subsidiaries.
Tokio Marine Holdings

Directors in Charge

Company name

Tokio Marine Holdings(As of March 31, 2023)
Ofﬁce name (Location)

Headquarters (Chiyoda-ku, Tokyo)

Business segment

Holdingcompany

Carrying amount (Yen in millions)Land (m2)

Buildings

MovablesSoftwareNumber of
employees

―
(―)

―

63

2,556

971

Rent (Yen in
millions)

Domestic subsidiaries
DigitalCorporate

Risk

Corporate

Financial

Strategy

Strategy

Administration

Management

Underwriting

Planning

Department

Department

Department

Department

Department

Department

Department

Matters relating to businessstrategic planning, M&A,
development and management
support for domestic insurance
business and general businesssubsidiaries, sustainability andothers of the Tokio Marine
Group

Matters relating to new
businesses and others of Tokio
Marine Group

Matters relating to generalaffairs and administration,
assistance to executives, anddisaster risk, business continuity
management and others of
Tokio Marine Group

Matters relating to integrated risk
management and others of Tokio
Marine Group

Matters relating to underwriting,retention, reinsurance and othersof Tokio Marine Group

Matters relating to asset
management lead, strategies
for financial business, provision ofbusiness administration for
subsidiaries related to financial
business and other businesses
and others of Tokio Marine Group

Matters relating to digitalstrategy and others of Tokio
Marine Group

Legal &

GlobalHealthcare

Human

Corporate

IT Planning

Compliance

Communications

BusinessResources

Accounting

Department

Department

Department

Department

Department

Department

Matters relating to General
Meeting of Shareholders, Boardof Directors, and compliance,
J-SOX, customer protection andothers of Tokio Marine Group

Matters relating to information
disclosure, corporate
communications, IR, brandstrategy and others of theTokio Marine Group

Matters relating to healthcare
business strategies of
Tokio Marine Group

Matters relating to personnel
strategies and others of Tokio
Marine Group

Matters relating to financial
reporting, taxes and others of
Tokio Marine GroupInternational
Business
Development
Department

Matters relating to IT strategies
and others of Tokio Marine
Group

Matters relating to strategies forinternational business, provisionof business administration foroverseas subsidiaries and othersof Tokio Marine Group

GlobalInvestment(As of March 31, 2023)
Ofﬁce name (Location)

Tokio Marine & Nichido
Fire Insurance Co., Ltd.

Headquarters(Chiyoda-ku, Tokyo)

Nisshin Fire & Marine
Insurance Co., Ltd.

Headquarters(Chiyoda-ku, Tokyo)

E. design Insurance Co.,Ltd.

Headquarters(Shinjuku-ku, Tokyo)

Tokio Marine & Nichido
Life Insurance Co., Ltd.

Headquarters(Chiyoda-ku, Tokyo)

Tokio Marine Millea SAST
Insurance Co., Ltd.

Headquarters(Nishi-ku, Yokohama)

Tokio Marine AssetManagement Co., Ltd.

Headquarters(Chiyoda-ku, Tokyo)

Department

Matters relating to analysis of theeconomic and financial
circumstances relevant to thebusiness of the Tokio Marine
Group, the asset management ofdomestic insurance subsidiaries,
and others―

Business segment

Domestic
non-life
insurancebusiness
Domestic
non-life
insurancebusiness
Domestic
non-life
insurancebusiness
Domestic life
insurancebusiness
Domestic
non-life
insurancebusiness
Financial andotherbusinesses

Carrying amount (Yen in millions)Land (m2)

Buildings

MovablesSoftwareNumber of
employees

61,065(136,932)

60,79824,144

128,281

16,64512,017

9,943(18,760)

7,498

1,350

5,235

2,078

1,408

―
(―)

103

54

9,074

317

265

―
(―)

833

489

15,979

2,229

1,959

―
(―)

13

28

171

108

93

―
(―)

307

125

344

363

468

Strategy & Business Platform Supporting Our Purpose Story

New Business

Planning

Department

Matters relating to internal
audits of Tokio Marine Group

Company name

Corporate

Internal Audit

Rent (Yen in
millions)

Employees(As of March 31, 2023)

Number of employees

971

Average age of employees

43.2 years old

Average length of service of employees

17.5 years

Note: Most employees of Tokio Marine Holdings are seconded from its subsidiaries. Average length of service includes the years of service at these subsidiaries.

216

217

Corporate Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Facilities

Stock Information

Overseas subsidiaries(As of March 31, 2023)

Company name

Ofﬁce name (Location)

Tokio Marine North
America, Inc.

Headquarters(Wilmington, Delaware, U.S.A.)

Philadelphia Consolidated
Holding Corp.

Headquarters(Bala Cynwyd, Pennsylvania, U.S.A.)

Delphi Financial Group,
Inc.

Headquarters(Wilmington, Delaware, U.S.A.)HCC Insurance Holdings,
Inc.

Headquarters(Wilmington, Delaware, U.S.A.)

Privilege Underwriters, Inc.

Headquarters(Wilmington, Delaware, U.S.A.)

Tokio Marine Kiln Group
LimitedHeadquarters(London, U.K.)

Tokio Marine Asia Pte.
Ltd.

Headquarters(Singapore, Singapore)

Tokio Marine Life
Insurance Singapore Ltd.

Headquarters(Singapore, Singapore)

Tokio Marine Seguradora
S.A.

Headquarters(São Paulo, Brazil)

Business segment

International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness
International
insurancebusiness

Carrying amount (Yen in millions)Land (m2)

Buildings

MovablesSoftwareNumber of
employees

Rent (Yen in
millions)

―
(―)

3,899

822

3,026

461

426

―
(―)

12,374534

14,139

1,858

1,760

569
(71,876)

19,307

4,510

20,432

3,011

2,625

592
(63,600)

12,725

6,808

9,228

3,787

3,416

―
(―)

2,146

588

4,837

1,057

803

―
(―)

4,814

481

2,512

705

－

―
(―)

508

102

33

85

－

2,050
(214)

960

180

564

250

－

234
(4,660)

1,212

586

311

2,251

316

Company name

Tokio Marine & Nichido Fire Insurance Co., Ltd.

Osaka Tokio Marine Nichido Building(Chuo-ku, Osaka)

4,032(5,483)

2,357

Sino Omiya South Wing
(Omiya-ku, Saitama)

3,752(2,617)2,679

La Mer Sanbancho(Chiyoda-ku, Tokyo)

3,686(2,059)2,283

Minato Mirai Business Square(Nishi-ku, Yokohama)

2,545(1,588)

1,491

12
(844)

1,378

Otemachi First Square(Chiyoda-ku, Tokyo)

a.
b.
c.
d.

The Ordinary General Meeting of Shareholders is held within three months of the end of each ﬁscal year.
Accounting period: Ends March 31
Share registrar: The Mitsubishi UFJ Trust and Banking Corporation
Record date: Ordinary General Meeting of Shareholders: March 31
Year-end dividend: March 31
Interim dividend: September 30
e. Public notice will be electronically published. (http://www.pronexus.co.jp/koukoku/8766/8766.html)
However, in the event that public notice cannot be electronically published due to an accident or other compelling reason, a notiﬁcation
shall be published in the Tokyo issue of the Nihon Keizai Shimbun.
f. Number of shares constituting one unit: 100
g. Stock listing: Tokyo Stock Exchange
Matters for the General Meeting of Shareholders
The 21th General Meeting of Shareholders was held on June 26, 2023. The items reported and the proposals acted upon were as follows:
Items reported
1. Business report, consolidated financial statements and the audit reports on consolidated financial statements prepared by the
independent auditor and the Audit & Supervisory Board, respectively, for the fiscal year 2022 (April 1, 2022 to March 31, 2023)
2. Non-consolidated financial statements for fiscal year 2022 (April 1, 2022 to March 31, 2023)
Proposals acted upon
1. Appropriation of Surplus
2. Election of 15 Directors
3. Election of 1 Audit & Supervisory Board Members

Carrying amount (Yen in millions)Land (m2)
Buildings

Facility name

Stock Information (As of March 31, 2023)
Stock issued by Tokio Marine Holdings is common stock. The total number of authorized shares is 8.0 billion shares and the total number ofshares outstanding is 2,002,500,000 shares.

Dividend Policy
The Company seeks to improve shareholder returns on a cash dividend basis, after providing sufficient capital to meet the business needs ofTokio Marine Group and taking into consideration the business results and the expected future business environment of the Company.
In accordance with the above policy, and considering various factors, the Company paid 50 yen per share as a year-end cash dividend
for fiscal year 2022. As 50 yen per share was paid as an interim cash dividend (an ordinary dividend), the total amount of annual cash
dividends (ordinary dividends) was 100 yen per share for fiscal year 2022. This is an increase of total annual cash dividends (ordinary
dividends) of 15 yen per share from 85 yen per share paid for the previous fiscal year.
In the fiscal years 2018, 2019, and 2020, in addition to the ordinary dividends, the Company also paid one-time dividends (23 yen per
share, 12 yen per share, and 12 yen per share respectively) for capital level adjustment.
Note: The Company conducted a 3-for-1 stock split on October 1, 2022. For dividends paid before the stock split, the amount per shareequivalent after the stock split is shown (fractions less than 1 yen are rounded to the nearest whole number).

Strategy & Business Platform Supporting Our Purpose Story

Notes: 1. All of the above facilities are for business use.
2. Buildings and movables include leased assets.
3. Some buildings are being leased.
4. The figures presented for Tokio Marine North America, Inc., Philadelphia Consolidated Holding Corp., Delphi Financial Group, Inc., HCC Insurance Holdings, Inc., Privilege
Underwriters, Inc. and Tokio Marine Kiln Group Limited include figures for subsidiaries of each company.
5. In addition to the above, main leased facilities are as follows:

Stock and Shareholder Information

Capital

New Facility Construction and Elimination Schedule
As of March 31, 2023, the schedule for new construction and elimination of major facilities is as follows.
(1) New facilities
Scheduled investment

Company nameFacility nameLocation

Business segment

Description

Tokio Marine & Nichido Fire
Insurance Co., Ltd.
(Tentative name) Tokio Marine
Building

Chiyoda-ku,
Tokyo

Domestic non-life insurance

Reconstruction

AmountTotal
already paid
(Yen in millions)(Yen in millions)
T.B.D.

3,706

FinancingmethodSelf financing

Start and completion
schedule
Start

Completion

Dec, 2024

FY2028Date

Equity capital

April 2, 2002

¥150 billion

March 31, 2023

¥150 billion(2) Renovation
None planned(3) SaleNone planned

218

219

Corporate Data—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

Stock Information

Top 10 Shareholders

Stock Ownership Distribution
As of March 31, 2023, the number of shareholders was 185,541. The percentage of major stock ownership was 39.54% and 33.57% forfinancial institutions and foreign shareholders, respectively.
(As of March 31, 2023)

Category

Number of shareholders

Government/Local government

Number of shares

Shareholding ratio (%)

1

1,500

0.00

231

791,847,300

39.54

Financial instruments ﬁrms

59

130,860,268

6.53

Other domestic companies

1,851

115,014,910

5.74

Foreign shareholders

1,191

672,210,157

33.57

Individuals and others

182,207283,287,417

14.15

1

9,278,448

0.46

185,541

2,002,500,000

100.00Financial institutions

Treasury stocks
Total(As of March 31, 2023)

Number of shareholders

Shareholder ratio (%)

Number of shares

Shareholding ratio (%)

1.78

5,314,084

0.27

Tohoku

5,434

2.93

10,874,764

0.54

Kanto

87,60347.21

1,149,611,228

57.41

Chubu

28,831

15.54

65,553,620

3.27

Kinki

37,07719.98

66,876,744

3.34

Chugoku

7,723

4.16

9,855,832

0.49

Shikoku

4,204

2.27

7,608,703

0.38

Kyushu10,268

5.53

14,247,625

0.71

Overseas and others

1,098

0.59

672,557,400

33.59

185,541100.002,002,500,000

100.00c. Breakdown by number of shares held

Category

Number of shareholders
Composition ratios to total
number of shareholders (%)
Number of shares
Composition ratios to total
number of shares (%)

JP Morgan Chase Bank 385632(Custodian: Mizuho Bank, Ltd. Settlement &Clearing
Services Division)
Moxley & Co. LLC.
(Custodian:MUFG Bank, Ltd.)JP Morgan Chase Bank 385781(Custodian: Mizuho Bank, Ltd. Settlement &Clearing
Services Division)(As of March 31, 2023)

5,000 units or more

1,000 units or more

500 units or more

100 units or more

50 units or more

295

407

430

5,299

6,264

0.16

0.22

0.23

2.86

3.38

1,631,959,921

95,225,478

30,017,179

101,193,683

44,097,940

81.50

4.76

1.50

5.05

2.20

10 units or more

5 units or more

1 unit or more

Less than 1 unit

SSBTC CLIENT OMNIBUS ACCOUNT(Custodian: Tokyo branch, The Hongkong and Shanghai
Banking Corporation Limited)

Total

32,651

17,344

75,10247,749185,541

17.60

9.35

40.48

25.74

100.0071,931,516

11,625,821

15,597,897

850,565

2,002,500,000

3.59

0.58

0.78

0.04

100.00Address

11-3, Hamamatsucho 2-chome, Minato-ku,
Tokyo
8-12, Harumi 1-chome, Chuo-ku, Tokyo
1-1, Marunouchi 2-chome, Chiyoda-ku,
Tokyo (8-12, Harumi 1-chome, Chuo-ku,
Tokyo)
1776 HERITAGE DRIVE, NORTH QUINCY, MA
02171,U.S.A.
(Shinagawa Intercity A Building, 15-1 Konan 2chome, Minato-ku,Tokyo)
Tokyo Building 7-3, Marunouchi 2-chome,
Chiyoda-ku,Tokyo
Tokiwabashi Tower 6-4, Otemach 2-chome,
Chiyoda-ku, Tokyo
Human Resources Dept. Tokio Marine & Nichido
Fire Insurance Co., Ltd.
ONE LINCOLN STREET, BOSTON MA USA
02111(11-1, Nihonbashi 3-chome,Chuo-ku, Tokyo)
25 BANK STREET, CANARY WHARF,LONDON, E14 5JP, UNITED KINGDOM(Shinagawa Intercity A Building, 15-1 Konan 2chome, Minato-ku,Tokyo)
4 NEW YORK PLAZA, 13TH FLOOR, NEW
YORK, NY 10004 U.S.A.
(7-1,Marunouchi 2-chome,Chiyoda-ku,Tokyo)
25 BANK STREET, CANARY WHARF,LONDON, E14 5JP, UNITED KINGDOM(Shinagawa Intercity A Building, 15-1 Konan 2chome, Minato-ku,Tokyo)

Note: Moxley & Co. LLC. is the registered holder of shares deposited pursuant to ADR issuance.

Composition ratios to
Number of
total number of sharesshares held
(excluding treasury stock)(Thousand shares)(%)

366,477

18.39

153,222

7.69

42,604

2.14

33,8691.70

32,4401.63

30,5891.53

27,862

1.40

26,844

1.35

26,8391.35

26,512

1.33

Strategy & Business Platform Supporting Our Purpose Story

Total

220

JPMorgan Securities Japan Co., Ltd.

3,303

Composition ratios to total
number of shareholders (%)
Number of shares
Composition ratios to total
number of shares (%)

Meiji Yasuda Life Insurance Company(Custodian: Custody Bank of Japan, Ltd.)State Street Bank West Client - Treaty 505234(Custodian: Mizuho Bank, Ltd. Settlement &Clearing
Services Division)

Hokkaido

Number of shareholders

Custody Bank of Japan, Ltd. (Trust Account)

Tokai Nichido Employee Stock Ownership Planb. Breakdown by region

Category

Shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)a. Types of shareholders

Category(As of March 31, 2023)

221

Corporate Data/On the Publication of Our Integrated Report 2023—

Financial and Non-Financial Data—

Strategy and Business Platform Supporting Our Purpose Story

On the publication of Our Integrated Annual Report 2023

Stock Information
Stock Price Range and Trading Volume
(Yen)
3,000

(Thousands of shares)

Stock price (left scale)

Trading volume (right scale)

600,000

400,000

2,000

1,000

200,000

0 Mar.

2020

Mar.
2021

Mar.
2022

Mar.
2023

0

Note: The Company conducted a stock split (3-for-1) in October 2022. Figures for and prior to September 2022 have been recalculated
based on figures after the split.

As Group CFO (Chief Financial Oﬃcer) of Tokio Marine Holdings, I would like to thank you for taking the time to read ourIntegrated Annual Report 2023 to its conclusion.
We published our ﬁrst integrated annual report in ﬁscal 2015 to provide analysts and institutional investors with abalanced understanding of our sustainable value creation capabilities from both ﬁnancial and non-ﬁnancial perspectives.
Following this initial publication, we have continued to make improvements each year through a process of trial anderror, referring to the opinions of analysts and institutional investors, comments of integrated annual report rating
agencies, and various guidelines, and have now published our ninth integrated annual report, focusing on the following
three main areas.
(1) The addition of social issues to address and clarifying value creation:
In last year’s Integrated Annual Report, we adopted promoting climate action (pp. 14‒15) and improving disaster
resilience (pp. 16‒17) as social issues we needed to address. In this year’s report, we added supporting healthy andspiritually rich living (healthcare) (pp. 18‒19). We aim to further enhance your conﬁdence in our value creation capabilities bydemonstrating that we are able to create both “social value” and “economic value” through addressing these three importantsocial issues that are currently emerging, and that these two values are not contradictory but mutually enhance each other.

(3) Enhancement of disclosure on corporate governance:
In addition to enhancing disclosure in areas of high interest to institutional investors and analysts (reduction ofbusiness-related equities (pp. 116‒117), our information and cybersecurity system (p. 124), etc.), we highlighted themain initiatives recently implemented by Tokio Marine to strengthen governance (accelerating diversity on the Board of
Directors and Audit & Supervisory Board (p. 107), third-party evaluations on the eﬀectiveness of the Board of Directors (pp.
110‒111), etc.). Moreover, for the ﬁrst time, a dialogue on corporate governance was held between the three top
governance executives (Chairman of the Board, Chairman of the Nomination Committee, and Chairman of theCompensation Committee) (pp. 100‒105). Under the topic of the Board of Directors’ discussion on important issues andTokio Marine’s challenges, we introduced the main points of the discussion. In addition, by disclosing the measures taken
in light of the COVID-19 outbreak in Taiwan (p. 125), which caused signiﬁcant losses, we aim to demonstrate theincreased eﬀectiveness of Tokio Marine’s corporate governance and further improve transparency and credibility.

2
Strategy and Business Platform Supporting Our Purpose Story(2) Strengthening human, intellectual, and social capital and connectivity with the future of Tokio Marine:
This year, we concluded our Purpose Story with the message that we will continue to expand the scope of value provided
by continuing to reﬁne internal capital (human capital and intellectual capital) and co-creating with social capital(various external partners). We have adopted a structure that introduces initiatives such as CORE, a disaster prevention
consortium, as an example of strengthening social capital and TdR, the Group’s core data function, as an example ofstrengthening internal capital. We aim to deepen your understanding of “The Expansion of Tokio Marine’s Value
Creation Capabilities” (pp. 34‒43) by strengthening connectivity between strengthening various types of capital, which
are key success factors for our sustainable value creation capabilities and our future potential.
Among the various types of capital, human capital is the foundation of Tokio Marine’s management and the source of
all our initiatives. For this reason, we published the Human Capital Report in June 2023, and incorporated the essence ofthat report into this integrated annual report. In addition, because human capital is the source of all our eﬀorts, in lastyear’s integrated report, the information was provided across multiple sections. In this year’s report, however, to make iteasier to read, information has been consolidated in the form of comments by the chief oﬃcers in charge (pp. 86‒93).

Finally, as the oﬃcer responsible for publishing this integrated annual report, I would like to state that it is a clear andaccurate representation of our Company’s ability to create sustainable value.
Tokio Marine is in the middle of a long climb to achieve our Purpose. Sometimes there is rain or fog along the way.
Nevertheless, we will still be climbing mountains one hundred years from now, step by step, through the strengtheningof human, intellectual, and social capital.
This is the management sentiment that I most wanted toKenji Okada
convey in this integrated annual report, and this sentiment is
Integrated Annual Report
also included on the cover. (If you look at the cover again, I
2023 Publication Oﬃcer
hope you will understand the thoughts of our editors.)
Senior Managing Director
We appreciate your continued support and guidance as weGroup Chiefmove ahead.

Financial Oﬃcer (CFO)

222

223

Tokiwabashi Tower 2-6-4
Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan
Tel: +81-3-6704-4547

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