New Mid-Term Management Plan
(Domestic P&C Insurance Business, Overseas Insurance Business and Wellbeing)

July 10, 2024

Table of Contents
Overview of New Mid-Term Management Plan

3

Highlights(5) Investment Income to Provide Tailwind for FY2024 - 2026

35

1. Domestic P&C Insurance Business4

Q1 2024 Investments Snapshot

36

Overview of New Mid-Term Management Plan (SJ-R)

5

Investment Income Provides Tailwind

37

KPIs of the New Mid-Term Management Plan

6

Tailwinds and Management Actions Driving Higher Investment Income

38

Projected Earnings Improvement

7

Highlights(6) FY2024 Off to a Good Start

39

Driver of Earnings Improvement (Portfolio Reform)

8

Q1 FY2024 Performance

40

Resilience against Rapid Changes in the Environment

9

Key Messages

41

Core Operation Reform (Sales)

10

3. Wellbeing

42

Core Operation Reform (Claims Service)11

Wellbeing (1) The “Three Concerns“ We Want to Solve

43

Initiatives in Pursuit of Uniqueness and Further Growth (Direct Sales & Alliance)

12

Wellbeing (2) Overview

44(Reference) New Sompo Japan / Committed to Uniqueness13

Wellbeing (3) Achieve Sustainable Growth by Addressing Social Challenges

45(Reference) Support to Agent Offices

14

Wellbeing (4) Business Strategy and Roles of Business Units

46

2. Overseas Insurance Business

15

Domestic Life Business47

Highlights

16

Domestic Life (1) Growth History of the Domestic Life Insurance Business

48

Strategic Objectives

17

Domestic Life (2) Features of Insurhealth®

49

Highlights(1) Growth Strategy Focused on Geographic Expansion

18

Domestic Life (3) New Mid-Term Management Plan (FY2024-2026)

50

Global Expansion of Sompo International (SI)19

Domestic Life (4) Accelerate Growth through the Wellbeing

51

Growth Strategies

20(Reference) Factors of Variation in Adjusted IFRS Profit and ROE

52

Strategic Growth Initiatives

21

Nursing Care Business

53

Highlights(2) Financial Targets Focus on Profitable Growth22

Nursing Care(1) Business Foundation

54

FY2024 - 2026 New Mid-term Plan Financial Targets

23

Nursing Care(2) Business Environment and Review of the Previous Mid-Term Management Plan

55

Financial Strategic Objectives

24

Nursing Care(3) Operator Business (Strategy)

56

Highlights(3) Strong Capital Base to Fund Growth Strategy

25

Nursing Care(4) Operator Business (Future Nursing Care)57

A Strong Capital Position by All Measures...

26

Nursing Care(5) Platform & Wellbeing (Connect with Customers and Deliver Connected Services)

58...and Positioned for Growth Based on Internal Model

27

Main Initiatives

59

Optimal Capital Allocation

28

Main Initiative(1) Overview of “Connect with Customers and Deliver Connected Services”

60

Highlights(4) Continued Underlying Underwriting Improvement and Expense Discipline

29

Main Initiative(2) Example of “Connect with Customers and Deliver Connected Services” (Digital Touchpoints)

61

Combined Ratio Improvement

30

Main Initiative(3) Extending Healthy Life Expectancy

62

Overview of Commercial Insurance Mix

31

Main Initiative(4) Other Business Areas (Physical Touchpoints) and Future Actions

63

Earnings Volatility and Exposure from Natural Catastrophe Loss

32

SompoRe Portfolio Positioned to Perform in Current Climatic Conditions

33

Overview of Expenses

34

Overview of New Mid-Term Management Plan•

For a future of “Health, Wellbeing & Financial Protection, aim to “increase resilience” and “Connect with customers and deliver connected
services” by focusing on the three business segments•

Aim to target ROE at the global peer level and high EPS growth by making efficient use of group capital with strengthening governance

SOMPO’s Purpose
VisionFor a future of"Health, Wellbeing & Financial Protection″

SOMPO P&C
Consumer services

Commercial services

Efficiency

Expertise

Management target*New
Mid-term
Management
Plan

Deliver solutions forhealth, nursing care & retirement finances

Adjusted consolidated ROE：13～15%

Finance strategy～Promote capital circulation ～ Strategic capital allocation /Risk reduction
 Remittance ratio 100% in principle
 Lower the upper limit of the ESR target range Growth investment with strategy and discipline

HR strategy* IFRS basis (excluding OCI）

SOMPO Wellbeing

Data & digitalstrategy

Adjusted EPS growth ：CAGR 12% +Today’s
topicsThree businesssegments

New Sompo Japan

Regain trust and increase resilience

Overseas
Group scale and growth

Wellbeing
Driver of mid- to long-term growth3

1．Domestic P&C
Insurance BusinessDomestic P&C

Overseas

Wellbeing

Overview of New Mid-Term Management Plan (SJ-R)•

The goal is to realize sustainable growth by implementing earnings structure and operational reforms to increase profitability andresilience

Dedicated to Customers and Society
Portfolio and UW reforms
Increasecompetitivenessthrough operational
reformCommitted to uniqueness and resilience

Culture change

NonFinancial

Financial(Earnings structure)

Strengthen
quality
management andgovernance(Operating foundation)

Sales reform

Claims service reform

Reinvest profits
generated from
earnings structurereformData-driven operations& IT reformBe the “New Sompo Japan”

Human capital investment &talent development

5Domestic P&C

Overseas

Wellbeing

KPIs of the New Mid-Term Management Plan•

Improve stability and flexibility as well as profitability under the SJ-R, and transform into a resilience business structure•

Implement the initiatives in each area to achieve the following quantitative targets by the end of FY2026

Improve profitability

Increase earnings stability
Strategic shareholding risk
(allocated capital) reduction

Profit recovery through SJ-R

8% +

KPI

（ROE*1）(¥ bn.)

KPI(Combined ratio*2)(FY2026)

Below 95.0%

Japantyphoon risks

Maintain or reduce

Strategic
shareholding

Reduce by ¥ 600.0 bn.
or moreIncrease flexiility

Shorten product and rate
revision cycles

Adjusted profit

100.6%

Level of profit required
to achieve the 8% ROE target

99.3％

8% +

CAGR 10% +Reduction in the risk amount(allocated capital) throughreduction of strategic holding stocks

72.3

Below 95.0%

Long-term
contractswith fixed rates

1.5%
15.0
FY2023

Portfolio reform

FY2024FY2025

FY2026(Forecast) (Estimate) (Estimate)*1 Current definition basis*2 E/I basis

・・・

FY2023

FY2024FY2025

FY2026(Forecast) (Estimate) (Estimate)・・・

Rapid changeof earnings
environment

Major
business risk

Reduce the ratio of long-term contracts＋
Implement drastic measures6

Domestic P&C

Overseas

Wellbeing

Projected Earnings Improvement•

Plan to steadily increase earnings, primarily through rate revisions that are likely to boost earnings by around ¥70.0 bn.*•

Generate profits by maximizing the potential of the portfolio of in-force policies through fine segmentation and underwriting

Adjusted profit outlook (Domestic P&C Insurance Business)
Earnings x stability improvement
mainly through SJ-R
Earnings

Risk selection based on micro segmentation
Steady growth by focusing on casualty, etc.
Reduce the expense ratio and improve
claims payment adequacy

Stability••

Control typhoon risk
Reduce the risk amount throughreduction of strategic shareholding

improvement

While headcountdecreases, expenses will
increase due to inflation
and upfront investment•••

Further improve and stabilize profitability throughportfolio strategy, branch office consolidation,
progress in sales & claims service reforms, etc.

C/R：95.0%
Loss ratio: 62.0%
Expense ratio: 33.0%+¥17.0 bn.

C/R：99.3%
Loss ratio: 65.4%
Expense ratio: 33.8%+¥70.0 bn.

¥72.3 bn.

(FY)

ExpensesRate revisioneffectOther SJ-R
effectInvestment, etc.

* Includes the effects of past rate revisions materializing during the current Mid-Term Management Plan period(Estimate)

SJ-R effect after thecurrent MTMP

Mid to long term
7

Domestic P&C

Overseas

Wellbeing

Driver of Earnings Improvement (Portfolio Reform)•

Substantially change in underwriting discipline, which previously focused on measures for specific policies with extremely poor profitability•

Improve portfolio quality by managing financial performance of all in-force contracts by segment and a finely tuned underwriting policy

Goal

Underwriting approach in the past
Focused on specific measures for high LR contracts
Managed financial performance of other contracts on an
aggregate basis
LOB A

Clarify policy, such as increase, improve, and reduce for each segment
Maximize the potential of the underwriting portfolio by thisComposition of written premiums excluding CALI & household EQ

Contract distribution[FY2023 end]

26.9%
Specificmeasure bycontract

Loss ratio

35.0%

38.1%

[FY2026 end（Projected)]

40.0%

38.5%
Good

Neutral

21.4%

Reduce or improve profitability* The definition of segment differs by LOB

Loss amountSupport and specialists from SI to facilitate accomplishment
Example of segmental underwriting which started early in FY2023

Tightened underwriting for old properties and solar power generation facilities to improve the fire insurance portfolio.
Plan to roll out across all segments due to its proven effectivenessRatio of oldproperties amongnew business

20％⇒4％

No. of in-force solar
power generation
facility contracts

Reduced by
10%

Ratio. of solar power
generation facility
contracts withtheft deductible

40％

Fire insurance
UW income*Returned to
profit(FY2023)* Excludes the effect of catastrophic loss reserves8Domestic P&C

Overseas

Wellbeing

Resilience against Rapid Changes in the Environment•

An existing strategy to improve earnings for FY2026 could be negatively affected if the business environment changes rapidly like during the previous MidTerm Management Plan period•

Aim to reduce the ratio of long-term contracts and shorten the product revision cycle to quickly adapt to possible changes in the environment and increase
the probability of achieving the targets
Need to improve resilience againstchanges in the environment
Net incurred losses from Japan natural disasters (Accident year) *1
177.8
Increasing severity and(¥ bn.)

Rise in auto cost of repair*2

Inflation effectfrequency of natural disasters

126.0
FY2012-2017 average: 68.0

(FY) 2012

2013

2014

2015

2016

2017

93.2

2018

2019

99.3

2020

104.3

5.5%

5.0%

2022

2023

2024

2.7%

74.4

2021

4.4%
1.5%

2022

2023

*1 Excludes CALI & household EQ

(FY)

2020

2021

*2 Sum of vehicle (excluding Nat Cat losses) and property(Forecast)

Ratio of long-term
contracts

Product
development speed

Aim to reduce the ratio of long-term contracts by shortening insurance
period, revising the long-term factor, developing new products, etc.
Auto
Fire & Allied

Substantially reduced lead time for product development andrevision of main LOB by revamping the core IT system

Above
5 yrs

2-5 yrs
1 yr

30%

Above 1 yr 60%

Product development time*3

60%
1 yr

10%
FY2023
2023年

Auto: Already launched
Fire: To be launched in FY2025
Personal accident: Already launched

From2026年以降
FY2026 onward

50% Reduction40%
FY2023

2023年

From FY2026 onward

2026年以降*3 Time required for system development.
Product development time differs by LOB, revision, etc.

9Domestic P&C

Overseas

Wellbeing

Core Operation Reform (Sales)•

Improve operational efficiency by eliminating the dual structure and centralizing back office activities so that sales can use the time
generated for expediting specialization and improving quality

Eliminate the dual structure
Current
challenge

Initiative for
improvement

Example of dual structure
operations

Existence of excessive support for agent
operations by insurance companies
Insurer’s operations

Agent’s operations

Agent

Insurer・Prepare application and pricing
・Manage contract maturity
・Product explanation at the timeof proposal
・Manage insurance agent
qualification

Evaluate all agents, give guidance and hold dialogues for improvementby the end of FY2024
Revise the agent commission system to reflect operation levels andrestrict LOB etc. for agents that cannot eliminate the dual structure
Evaluation agent
operations

Guidance & dialogues for
improvement

Regular monitoring

Back office activities & operations optimization• Difficulties in adequate staffing in the face of population
decline, especially in rural areas• Severe dependency on individual skills due to complicatedproducts and operational rules• Need to reduce expenses and improve productivity toincrease profitability
Improve operational quality and reduce back office activities of sales
branches by 15% through consolidation of sales administration, etc.
Concentrate operations to backoffices in 7 areas in Japan

Expedite paperless(Shipping less)

Fully cashlessStandardize and digitalize
operations

Commercial sales

Retail sales
Goal

Achieve the lowest cost operations in the industry by improving
productivity• Ratio of agents that can complete operations on their own: 100％•

Optimal allocation of resources by channel and geographical area
through selection and concentration•

Establish a framework for delivering high-quality services throughout
the country through high-level standardization

Deliver comprehensive solutions through division of duties and byincreasing specialization

Relationship management
Underwriting
Delivering risk solutions

Division of duties facilitate
specialization which in turn enablesdelivery of highly sophisticatedsolutions10Domestic P&C

Overseas

Wellbeing

Core Operation Reform (Claims Service)•Transform claims service into a model that meets the global standards by referring to Innovative operations of an overseas subsidiaries•

A reform is being implemented that revises the entire claims service process from reported claims to initial response, repair factory referral, fraud detection,and claims payment.

Performance comparison (Sompo Japan vs. Overseas subsidiary)*1
Aim to build an efficient claims service framework by referring to organizational design and digitalization efforts of Sompo Sigorta (Turkey)
Efficiency oforganizational framework

Independent management by department

Falsified claim detection& payment adequacy

Dependence on individual skills

Claims service process

Overseas subsidiary
average

Centralized system and division of duties
by roleSystematic detection framework

Analog
Sompo Japan

Automated
Sompo Sigorta*1 Findings of a research by a third-party consulting firm

Example of claims service reform
To-Be

As-Is
Reported
claim

Level
1

Level
2

Level
3

Level
1

Level
2

Level
3

Level ofserviceableclaim[Workload]

2

Busy
Normal3

Light
Area A

Area B

Area C

Improve productivity and payment adequacy through centralization,
division of duties, specialization, and digitalization
 Visualize capacity of members by accelerating
digitalization

Specialist team

1

Each organization (bygeographical area)
provides claims service
and resources are not
optimally utilized

Virtual organization

 Larger grouping of reported claims (virtual organization)
 A specialist team provides support on special claims,
including falsified claims
 Improve payment adequacy by levelling workload
2

Expected effect* ：C/R -0.5pt*2 Aggregate effect of claims service reform (compared to FY2023)

11

Domestic P&C

Overseas

Wellbeing

Initiatives in Pursuit of Uniqueness and Further Growth (Direct Sales & Alliance)•

Implement the direct sales strategy for sustainable growth of the domestic P&C insurance business in view of the changing customer path•

Strengthen alliances with other businesses, execute M&As, and form alliances to expedite value-added of insurance and group synergies

Direct strategy

Strengthen alliances

Increase competitiveness by leveraging the diverse customer base andstrengths of each business vehicle

Increase value-added of insurance and accelerate group synergy
realization through business alliances with third parties and cooperation
with group companies[Examples of scope]- Hybrid model of agent-based and direct -Sompo Japan to strengthen internet
direct to fulfill diversifying needs
Develop and test sales of fully digitalized Business
Master Plus which has enjoyed brisk sales.
Consider full-scale sales and rollout to otherproducts.

Domestic P&C
Customer base of about 20 million people
Financial protection against emergencies

InsurTech
Disaster prevention &mitigation

Assistance service

Wellbeing- Purely direct Ranked No. 2 in the direct auto
insurance industry
Aim to be the best in internet direct sale P&C
insurance by improving profitability by increasing
sophistication of pricing by cooperating with Sompo
Japan and overseas subsidiaries- Digital marketing & Embedded Cumulative sales exceeded 1 million
policies
Expand the customer base by focusing on next
generation users as well as Sompo Japan andSompo Direct to utilize accumulated knowledge
in digital marketing and embedded insurance* Plan to change the company name from Saison Automobile & Fire Insurance Co., Ltd. on October 1, 2024,
subject to approval by the relevant authorities•

Aim to Aiming to evolve into a "Connect with Customers and Deliver
Connected Services" P&C insurance company by taking in the lifestylesupport and behavior change function of chocoZAP as Sompo Japan’svalue-added•

Launched a special chocoZAP service through SOMPO Park as a first step

12

Domestic P&C

Overseas

Wellbeing(Reference) New Sompo Japan / Committed to Uniqueness•Combine various insurance products and services of Sompo Japan with health support and lifestyle change functions of chocoZAP to evolve into a P&C
insurer that connects with customers and delivers connected services for healthcare and wellbeing, not just security and financial protection

Combine P&C insurance products (auto insurance, travel insurance, etc.) and chocoZAP＜Started from H1 FY2024＞

Sompo Japan (P&C insurance)
Security and financial protection against emergencies

Support and lifestyle change for physicaland mental health = Wellbeing

RIZAP Group

Auto insurance

Fire insurance

Travel, personal
accident, medical

SOMPO Park (Digital touchpoint)(Contents for young people, outdoor, international travel, car magazine, wellbeing, rewards, education contents, etc.)×
Highway service areas

1,500 outlets across Japan

13

Domestic P&C

Overseas

Wellbeing(Reference) Support to Agent office•Become a P&C insurer that is chosen by customers by supporting agent management through collaboration with RIZAP/chocoZAP

New customer value creation through community -based P&C insurance agentsacross Japan * chocoZAP
Sompo Japan agents (47,000 in 47 prefectures)
Community-based approach in operations
・Become a P&C insurer that is chosen by local customers

Open a complex ofchocoZAP and insurance
outlet on unused land(motivation for physical visit,build a lasting touchpoint)

Support care dealers, etc. in
local community contribution

Support the change to aphysical visit insurance outlet

Build a community-based,
new monetization/business
model(Utilize digital signage)

Agent business/operations
supportStrengthen employee welfare service
for employee health insurance

DX / digital marketing support(Support in marketing by
sharing the know-how of
RIZAP, etc.)

122．Oveaseas Insurance
BusinessDomestic P&C

Overseas

Wellbeing

Highlights$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 - 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

16

Domestic P&C

Overseas

Wellbeing

Strategic Objectives
1

2

Improve Operating
Income driven by
Underwriting

3

Expansion throughGeography, Customers
and Products

4

Drive
Culture5

PeopleInvest inTechnology

17

Domestic P&C

Overseas

Wellbeing

Highlights(1) Growth Strategy Focused on Geographic Expansion$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 - 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

18

Domestic P&C

Overseas

Wellbeing

Global Expansion of Sompo International (SI)•

Sompo International is becoming a truly global organization through global expansion

Headquartered in Bermuda
Operates in 20+ countries$44B total assets
9,000+ employees

19Domestic P&C

Overseas

Wellbeing

Growth Strategies•

Good progress is being made on strategic growth initiatives started in FY2023•

Strategic growth initiatives are expected to increase gross written premiums by over $1 billion by FY2026 through organic growth opportunities in the US,
Continental Europe (including UK), Canada and Singapore

Gross Written Premiums for Growth Strategies

United States$1B+

Canada$500M+

2024P

2025P

GWP +$120M
in Q1 FY24

2026P

EuropeSingapore Q1 GWP +$74M
 23 staff onboard YTD
 Opened/expanded 3 offices
 Q1 GWP +$10M
 Licensing new product lines
 Opened new branch Q1 GWP +$34M
 Operational in 6 CE markets and
2 new UK offices
 Geographic and productexpansion Q1 GWP +$3M
 25 staff onboarded YTD
 Launched to market, with positive
feedback and strong submissions

20

Domestic P&C

Overseas

Wellbeing

Strategic Growth Initiatives•

Our strategic initiatives are expected to drive profitable growth through geographic expansion and enhanced product

FY2023
Accomplishments

US Opened new Denver office andexpanded in Texas

Canada Opened an office in Toronto to provide
insurance and reinsurance products

Europe Expanded operations in France,
Germany, Austria, Switzerland, Italy,
Spain and the UK (outside of London)

Singapore

FY2024-2026
Objectives
 Continue to attract additional
underwriters Continue to expand existing
offices in the U.S. and Europe

 Open new office locations in
the U.S. and Europe
 Expand product offerings Added commercial underwriters toserve the wholesale distribution
channel21

Domestic P&C

Overseas

Wellbeing

Highlights(2) Financial Targets Focus on Profitable Growth$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 - 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

22

Domestic P&C

Overseas

Wellbeing

FY2024 - 2026 New Mid-term Management Plan Financial Targets•

Adjusted profit is expected to grow supported by expanding underwriting income and higher net investment income•

Strategic growth initiatives will generate top line growth and support profitable growth

Overseas Adjusted Profit

Target

GWP for Growth Strategies

CAGR ＋10%
CAGR
＋10%

Target

GWP $1.0B+

Operating Return on Equity for SI

Target13%＋
Implied Levered
ROE*

Asia

1,000+

Europe1,500+

Canada

15.0%
14.4%

14.4%
13.9%

US

1,150

13.1%

Operating
ROE
13.4%
12.9%
13%

12.4%

Target216

FY2023

FY2024P(in USD Millions)

FY2025P

FY2026P

FY2023

FY2024P

FY2025P

FY2026P

FY2023

FY2024P

FY2025P

FY2026P(in USD Millions)* Assumes a 20% debt-to-equity ratio consistent with Sompo23

Domestic P&C

Overseas

Wellbeing

Financial Strategic Objectives•

We will achieve our financial targets by driving our strategic financial objectives

Continued
ToplineGrowth Continue global expansion across U.S., Canada, Europe and Singapore
 Still targeting modest growth in established markets

Disciplined
Underwriting Increase rates in line with lost cost trends / maintain stable underwriting margins while growing
 Retain premiums based on profitability and risk appetite (cycle management) Continuous re-underwriting (product mix / catastrophe losses)

Investment
IncomeManagement

 Increase net investment income through higher book yields and growth in cash flows Tactical reallocations and improved cash flow analysis
 Total return focus to increase shareholder value

Optimize
Capital
DeploymentCapital levels above required capital range to fund growth strategy
Capital allocated based on internal model
Hurdle rate is 13%24

Domestic P&C

Overseas

Wellbeing

Highlights(3) Strong Capital Base to Fund Growth Strategy$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 - 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

25

Domestic P&C

Overseas

Wellbeing

A Strong Capital Position by All Measures...
•

Strong capital position supports growth initiatives and provides capacity for external opportunities

ECR Solvency Ratio*1
219%

Capital Policy
222%
214%

220%

Action219%

Suboptimal

Potential redeployment of capital

OptimalFine-tune risk strategy

SubOptimal

Improve capital position / re-orient
risk strategy

Alert

Restore capital position

Below
Minimum

Submission of recovery plan to BMA

180%180% 172%

177%

Optimal
range

160%

160%

140%

120%
2020

2021

2022

2023

2024F

2025F

2026F

S&P SCR*2

146% Strong contributor to Group SCR and rating

ESR SCR*3

290% Reflects strong diversification benefit*1 Bermuda Monetary Authority Bermuda Solvency Capital Requirement (BMA BSCR)*2 SIH stand-alone*3 Internal model

100%

26

Domestic P&C

Overseas

Wellbeing...and Positioned for Growth Based on Internal Model•

We deploy capital based on our internal model•

The internal model is used to assess our risk adjusted performances and to drive our portfolio mix

SIH Economic Solvency Ratio (ESR) (%)*
290%

High diversification driven by product array and geographic footprint*

Operational
CreditMarketCat
Non-Cat

277%
3%
7%

203%

186%

23%

174%

(58%)

150%

26%

42%

YE 2020

YE 2021

YE 2022

SIH ESRYE 2023

Target ESR

Q1 24

ESR SCR before

Tax and

ESR SCR afterTax & Diversification

Diversification

Tax & Diversification*Internal Model

27

Domestic P&C

Overseas

Wellbeing

Optimal Capital Allocation•

Our model is used to allocate capital to the most value-accretive lines to support the overall portfolio

Economic RoRAC*1 vs Capital intensity*2, main lines of business
RoRAC

Portfolio management: Reducing tail intensity
 Managing earnings volatility
 Driving pricing adequacy Monitoring Nat Cat appetite

Capital intensity

Sompo International
Net Earned Premiumby Size*1 Return on Risk Adjusted Capital*2 Allocated Risk Adjusted Capital / NEP

28

Domestic P&C

Overseas

Wellbeing

Highlights(4) Continued Underlying Underwriting Improvement and Expense Discipline$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 - 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

29

Domestic P&C

Overseas

Wellbeing

Combined Ratio Improvement•

SIH Combined ratio is expected to improve by 5.8pt driven by modest underwriting improvement and expense discipline

Combined Ratio – FY2023 through FY2026
5.8pt Improvement

Growth Initiatives
+0.6%

30

Domestic P&C

Overseas

Wellbeing

Overview of Commercial Insurance Mix•

Diversity across multiple lines of business

Commercial Insurance GWP Mix Over Time

6.5%

6.8%

7.1%

7.6%

7.7%

8.8%

10.3%

11.9%

12.6%

12.8%

25.6%

22.8%

20.4%

20.3%

20.1%

15.9%

19.1%

20.1%

20.1%

20.3%

20.3%

22.0%

21.7%

21.8%

25.0%

20.8%

18.5%

17.7%

17.4%

2022

2023

2024P

2025P

2026P

18.2%

Other
Specialty
Professional
Lines
Casualty
Property
Agriculture31

Domestic P&C

Overseas

Wellbeing

Earnings Volatility and Exposure from Natural Catastrophe Loss
Earnings volatility and exposure from natural catastrophe loss has reduced•

Catastrophe Probable Maximum Loss* % of NWP ($M)
12,00023%

20%
10,376

10,000

16%

8,000

7,015

10,940
10,151Highlights
19%

8,629

17%

14%

15%

13%

6,000

21%

12%

12%

11%

9%

2,000

7%

NWP
0

─ Greater portfolio diversification
─ Improved pricing adequacy

13%

5,028
4,000

• Achieved through:─ Shift of assumed portfolios
─ Repositioning to higher
attachment
─ Disciplined limit deployment

5%

2019

2020

2021

2022

2023

2024 P* Catastrophe PMLs shown represent the level of single occurrence net loss we would expect not to exceed with 99% confidence.

32

Domestic P&C

Overseas

Wellbeing

SompoRe Portfolio Positioned to Perform in Current Climatic Conditions•

Driving the portfolio towards higher attaching cat losses while achieving strong rate

SompoRe Catastrophe Portfolio Re-positioning

Highlights

PricedUnderwrting
Ratio
68%

68%

% of
Portfolio
High
Attaching

66%

60%

43%

42%

• The SompoRe portfolio has beensuccessfully transitioned over several
years to minimise exposure to‘attritional’ catastrophe losses.
• The current portfolio is generatingstrong risk-adjusted returns andremains a focus for opportunistic risktaking.

• The five-year achieved catastrophe
loss ratio and associated volatility has
been amongst the lowest acrossreinsurance peers.

2019

2020

2021

2022

2023

2024 P% of
Portfolio
Low
Attaching33

Domestic P&C

Overseas

Wellbeing

Overview of Expenses•

Focused on disciplined expense management

FY2024 Deconstructed Expense Ratio

FY2023 Peer Expense Ratio
Peer A

34.2%

Peer B

33.2%

Peer C

31.7%

Peer D

30.1%

Peer E

30.1%

Peer F

30.1%

Peer G

29.5%

Peer H

29.1%

Peer I

28.5%

SIH

28.5%

Peer J

28.4%

Peer K

28.3%

Peer L

28.3%

Peer M

28.1%

Peer N

28.1%

Peer O

26.4%

Peer P

25.9%

Peer Q

24.7%

Peer R

24.6%

34

Domestic P&C

Overseas

Wellbeing

Highlights(5) Investment Income to Provide Tailwind for FY2024 - 2026$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 - 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

35

Domestic P&C

Overseas

Wellbeing

Q1 2024 Investments Snapshot•

We have a high-quality, well-diversified portfolio

Total Investments and Cash*1
Highlights
13%

3%

28%

• Assets under management of ~$20B as of the end of
Q1 2024• Core fixed income15%

─ AA- average quality
4%5%

─ 3.7-year duration

─ 75% of portfolio*2 is investment grade
32%• Current Book Yield is 5.71%*3, up 15bp from YE 2023
• Trailing 12-month NII of +$1B

US Gov’t & US Backed Securities
Foreign Government
Corporate
Equity Securities
Non-Agency ABS / MBS & CLOs
Cash & ST Investments
Alternatives / Inv in Assoc / ICOLI*1 Includes pending receivables and payables*2 North American and Europe portfolio*3 Includes core fixed income and high yield• Strategy and focus:
 Centralized strategy and team
 Risk controlled approach Portfolio is matched for currency, duration and liquidity
 Total return and ROE focus
36

Domestic P&C

Overseas

Wellbeing

Investment Income Provides Tailwind•

Net investment income expected to increase as the investment portfolio grows supported by operating cashflow while book and market yields converge

Net Investment Income ($M)

AUM ($B) and Portfolio Yield

AUM

1,250+

Market yield

Book yield

6.4%

6.1%

5.8%

5.5%

5.6%

5.4%

5.5%

5.4%
26.6

993

FY2023A

22.3

FY2024P

FY2025P

FY2026P

FY2023A* SI Commercial

FY2024P

FY2025P

FY2026P

37

Domestic P&C

Overseas

Wellbeing

Tailwinds and Management Actions Driving Higher Investment Income•

Management actions continue to support improved investment income

FY2024 Investment Income Walk ($M)

Highlights
1,078+• FY2024 Investment Income growth isdriven by:
─ Higher market yields

55% of increase─ Higher cash flows driven byunderwriting performance and cash
management actions

─ Tactical asset reallocation

FY2023
Actuals

FY2024
Estimate

38

Domestic P&C

Overseas

Wellbeing

Highlights(6) FY2024 off to a Good Start$

Growth strategy
focused on geographic
expansion

Continued underlying
underwriting
improvement andexpense discipline

Financial targets focus
on profitable growth

Investment Income toprovide tailwind
for FY2024 – 2026

Strong capital base tofund growth strategy

FY2024 off to a good
start

39

Domestic P&C

Overseas

Wellbeing

Q1 FY2024 Performance•

Q1 FY2024 performance was strong across GWP, operating income and operating ROE %+4.4%($ millions)

5.79

Gross
WrittenPremium

5.55• Grew 10.9% excluding AgriSompo• $120M from Growth Initiatives• Most lines contributing rate in excess of trend

Q1 23

Q1 24

($ millions)+29.9%

Operating
Income

326.5
251.5

• ~30bps Loss Ratio improvement• Investment Income up 47.1%

Q1 23

Q1 24

+1.9ptOperating
ROE*

14.0%

• Remitted $619M dividend in Q1

12.1%

Q1 23

• Shareholders’ Equity up 8.8% year-over-year

Q1 24*Annualized ROE calculated based on the adjusted profit of Q1 and the average balance of net asset in Q1

40

Domestic P&C

Overseas

Wellbeing

Key Messages•

Off to a good start in FY2024 after successful completion of theprevious mid-term plan in FY2023•

Improved underwriting, reduced catastrophe risk and investment
income expected to drive results for next plan cycle•

Continued investment in growth strategy self-funded by profitabilityof Sompo International Holdings•

Strong capital base for which to continue to grow, while paying ahealthy dividend to shareholder

41

3. Wellbeing

Domestic P&C

Overseas

Wellbeing

Wellbeing (1) The “Three Concerns“ We Want to Solve•

The number of caregivers continues to increase as the population ages, and if we include the elderly, we are entering an "age of 100 million caregivers"
where the involvement of individuals in caregiving is inevitable•

The “three concerns" of health, nursing care, and retirement finance are serious, and the negative impact on the economy is enormous“Age of 100 million caregivers"
Not only those who will become caregivers, but also
those who are in the reserves for when caregiving may
begin, involvement with caregiving is inevitable for many
people throughout their lives.

Persons certified
as requiring
nursing care or
supportCaregivers +Reservists(50s+)

7 million people(2.7 times more than in 2000)

32 million people

Health concern
Gap between average life expectancy and healthy life expectancy :About 10 years

Nursing care concern
Worsening gap between long-term care supply and demand：
Family carers are likely to decrease(56% of their generation)

Financial concern
after retirement

Households involved in long-term careincreased significantly

Retirement needs continue to growPeople who can prepare for retirement on their own：10%
43

Domestic P&C

Overseas

Wellbeing

Wellbeing (2) Overview•

Combine the customer base, strengths, and know how of businesses of SOMPO Group, and combine products and services beyond business boundaries•

We build the wellbeing business infrastructure under the Mid-Term Management Plan to address social challenges and for SOMPO Group to grow sustainably

Domestic life
Grow the customer baseby combining insurance
and health support

Promotelifestyle change
for healthNursing careBusiness foundation
Expertise

Real data

LifestlyechangeDataanalytics

Nursing carebusinessなど
foundation

Connect with customers &households, and deliverconnected services
for unique andsustainable growth

Customer base

Corporate wellness
Promote healthy behavior
among employeesof business partners

Support health &productivity management
for corporate HR

44

Domestic P&C

Overseas

Wellbeing

Wellbeing (3) Achieve Sustainable Growth by Addressing Social Challenges•

Offer solutions for extending healthy life expectancy by focusing on the Group’s products and services and top-level nursing care quality, brand, and customer base in Japan•

We want to be deeply involved our customers’ needs for a long time to further increase LTV of each customer and for SOMPO to grow sustainably in the medium to long term

Offer lifetime solutions(Sustainably increase lifetime value (LTV) and profit)- At your side at all times Extend health life expectancy and protect against emergencies through Insurhealth products
Specific health guidance,
medical checkup service, etc.

Nursing care services(at facility, at home)

Wellbeing

New products and services to meet the diverse needs

Three concerns (Social challenges)
Health concern
Gap between average life
expectancy and healthy
life expectancy :About 10 years

Nursing care concern

Financial concern after retirement

People who can prepare
for retirement on their own:

10%

Family carers are likely to decrease(Widening labor supply-demand gap in nursing care)45

Domestic P&C

Overseas

Wellbeing

Wellbeing (4) Business Strategy and Roles of Business Units•

Create a society where people can look positively at growing old by alleviating the “three concerns”•

Evolve and integrate the business platform and strategies in “insurance” and “nursing care” which are SOMPO’s strengths and differentiating factors(connect with customers and deliver connected services)•

Turn SOMPO into a brand that is chosen by customers for its unique value

Strategy house/business model
Customers and families
１
Mission

Address social challenges
Increase LTV

Operation

Distribution channel, products,
and services

２

３

Insurance
Sompo
Himawari Life
Sompo Japan
Sompo Direct

Nursing
Care
Sompo CareND Software

４

Group
businesses
other than on
the left(including
M&A)
Sompo Health Support
Wellness Communications

Overview
１ Mission••

Create a society where people can look positively at growing old by alleviating the “three concerns” related
to health, retirement finances and nursing care
Increase LTV per customer, accelerate growth, and increase adjusted profits by combining life insurance, nursing
care, and other group businesses

Build a unique business that combines insurance for health, wellbeing and financial protection, new-age nursing care,and healthcare, assist customers throughout their lives, and turn SOMPO into a brand that is chosen by customers

２

Insurance(mainly
domestic life)• Increase Himawari clients/users through insurance and health services, establish a business
infrastructure for promoting lifestyle change related to health of customers of the P&C andlife insurance businesses, and contribute to alleviating health concerns
By FY2026

No. of Himawari clients/users: 7 million people, No. of health actions: 550,000

own operations, improve industry-wide quality and efficiency by offering to other
３ Nursing • Improve
care providers as solutions, and contribute to alleviating nursing care concerns
care
By FY2026

４

No. of staff per facility:
Sompo no ie 16.4 people（-1.9 v.s. FY2022）, La Vie Re 25.8(-0.4 v.s. FY2022)• Build a business platform by tying up and strengthening each business and supplementing theGroupmissing components through M&As, etc. to accomplish the mission
businesses(Other than • Expand B2B2E medical checkup service, mental health service, specific health guidance for health② and ③)insurance associations to alleviate health concerns of employees

Infrastructure

５
Business platform

５ Businessplatform• Possess functions, including customer touchpoints (both offline and online), data
accumulation and analysis, forecasting, and lifestyle change• Acquire crosssell and upsell products to increase LTV in “three concerns”

46Domestic Life BusinessDomestic P&C

Overseas

Wellbeing

Domestic Life (1) Growth History of the Domestic Life Insurance Business•Our challenge began in FY2016 to become a “health support company” as a way forward from a traditional life insurance company•

Increased customer base and annualized premium in force through Insurhealth®*1 have driven profits and improved capital efficiency

CAGR +3.3%(Industry average +1.8%)

3.92 million

FY2016FY2023

Annualized premium in force

CAGR +1.3%(Industry average +0.4%)¥390.3 bn.
¥357.6 bn.

FY2016FY2023Adjusted profit*2

CAGR +6.5%¥41.8 bn.

High profitability

4.93 million

Increased customer baseNo. of in-force policies¥26.9 bn.

FY2016FY2023

Capital efficiency (ROE*2)
6.6%

3.7%

+2.9ptInterest rate risk
reduced by 70%

FY2016*1 Unique value that combines traditional insurance function and healthcare function *2 Excludes realized gains/losses and unrealized losses on securities (J-GAAP basis)

FY202348

Domestic P&C

Overseas

Wellbeing

Domestic Life (2) Features of Insurhealth®
•Insurhealth has been a driver of ROE improvement with cumulative sales of 1.6 million policies since FY2018 and new business ROR at 1.3x of other products•

It has gradually built a track record of heath support CX for customers who have found value in the combination of insurance and healthcare services (Himawari
clients/users)

Sales record and profitability

Health support CX effects

Cumulative sales (No. of policies, annualized premium*1)

1.6

million

116.0

¥ bn.

Variable
Insurhealth products
MedicalContribution to new business
IRR

Cancer

Income protection

Ratio to new business ROR
Termc. 1.3xWhole life

Products other than Insurhealth*2

Hospitalization rate of customers who succeeded in “Get☆Healthy!” Challenge
program*3-50c.

Unsuccessful％

Renewal rate of medical checkup data registrants*4+1.5 ％ p.a.
c.

Unregistered
At the timeof purchase

１yr
later

2 yrs
later

3 yrs
later

３ yrs later +4.5%

Ratio of appreciation for Insurhealth*5
Other appreciation,complaint, etc.

c.

50

％

New business ROR*1 Sales performance basis through end-March 2024 *2 YoY increase in annualized premium in force x Profitability *3 A discount system for BMI and blood pressure improvement and smoking cessation through a cash refund*4 “Get☆Healthy!” Challenge app registrants *5 Ratio to total voice of customers (appreciation, complaint, etc.)49

Domestic P&C

Overseas

Wellbeing

Domestic Life (3) New Mid-Term Management Plan (FY2024-2026)•

Aim to increase Himawari clients/users and strengthen health support services for Himawari clients/users as a health support
company•

Establish a health behavior change platform and achieve the financial and non-financial targets

FY2023

FY2026

ROE*1

9.2％

Interest rate risk
reduction effect

ROE

12% +

New business
CSM¥93.0 bn.

Insurhealth new business ×1.4x*3

Non-financial
targetNew business
CSM¥68.1 bn.

Hiawariclients/users

5.02 mn.

Himawariclients/users

7.00 mn.

No. of healthactions

60,000No. of healthactions

550,000

Review of sales framework
・Insurance × Healthcare

No. of health app users:

20,000 people“Get☆Healthy!” Challenge

20,000 people

Strengthen with Health support CX

Renewal rate
+1.5% p.a.
Hospitalization rate-50%

 Insurance + Health application to be
introduced (from September 2024)

MY Himawari

450,000 people*5

 Integration of contracting proceduresand health support Lifestyle change and mechanism
for encouraging continuation“Get☆Healthy!” Challenge

Health support company

Financial target

10.1%*2

Further growth

60,000 people*4*1 IFRS profit basis *2 Reflects a decrease in capital allocated by Sompo Holdings (required capital) due to a reduction in interest rate risk
*3 Annualized premium from new business +¥12.0 bn. (Increase during the previous MTMP period +¥13.5 bn.) *4 Value that may significantly increase future profits*5 No. of customers who use the app and registered medical checkup data

50

Domestic P&C

Overseas

Wellbeing

Domestic Life (4) Accelerate Growth through the Wellbeing•

Accelerate growth by strengthening the health support platform of the domestic life insurance business through inter-business coordination•

Contribute to addressing social challenges by focusing on extending health life expectancy and increasing value delivered to customers

FY2027
onwards

FY2018-2020

FY2021-2023

FY2024-2026

Introduction of Insurhealthto market

Growth of Insurhealth

Sustainable growth of the domestic life insurance business

Cumulative sales*

Addressing the “three concerns” through the Wellbeing

Accelerationof growth

1.6 mn. 116.0¥ mn.

Share customer baseStrengthen health support
platform
Health concern

Profit growth+¥10.0 bn.

Retirement
finance concern
Nursing care
concern* Sales performance basis through end-March 2024

+20.0 bn.

Lifestyle change to
become healthy
Protection & asset
building
Direct benefits &extension of healthy
life expectancy

51

Domestic P&C

Overseas

Wellbeing(Reference) Factors of Variation in Adjusted IFRS Profit and ROE
Factors of variation in adjusted IFRS profit (After tax)(¥ bn.)

IFRS
adoption

Insuranceserviceresult*1

NII

Other

＋5.5

＋0.5

Factors of variation in ROE

12% +70.0 level

＋6.0
＋16.0

Increase inadjusted
IFRS profit

58.0 level
Hedging cost
reduction

41.8

Release ofconservative
policy reserves,
etc.

10.1％

FY2023 level＋
Increase in
new business
CSM

Adjusted IFRS
profit9.2％

FY2023Adjusted IFRS profit
basis*1 Income from insurance service (sum of profit earned, including amortization of CSM recorded as a liability, etc. and P&L from claims, etc.)*2 Reflects a decrease in capital allocated by Sompo Holdings due to a reduction in interest rate risk

Interest
rate risk
reduction*2

Decrease in required
capitalFY2026(Estimate)52

Nursing Care BusinessDomestic P&C

Overseas

Wellbeing

Nursing Care(1) Business Foundation•

The nursing care business cosists of two companies. Both Sompo Care, a leading nursing care provider, and ND Software, a leading nursing care system provider, havestrong business foundation•

The two companies generats stable profits as Sompo Care is top-ranked in terms of the number of senior care home rooms in Japan, while ND Software is top-ranked interms of the number of facilities that introduced nursing care operations support software

ND Software
Overview

Overview
No. of executives &employees

No. of executives & employees(of which engineer)

25,225 people

No. of care home facilities

471

No. of at-home care facilities

639

No. of facilities using NDS
software*• Top-ranked in terms of the number of facilities that
introduced its nursing care operations support software• Provides full lineup of services (at facility, at home)

Adjusted profit
6.2

7.3

5.9

5.9

6.0

• 530 engineers supporting software development(¥ bn.)

4.0
2.1

2.8

2.5

2.6

2021

2022

2023

0.3

-2.8
2016

• Sales offices and 700 business partners in 18 prefectures
across Japan

Net income(¥ bn.)

3.0

700 + companies* ND Software on a non-consolidated basis, only nursing care

Strengths• Operates in 25 prefectures throughout Japan

48,000 +No. of sales partners• Top-ranked in terms of the number of senior care homerooms (28,500 + rooms)
Strengths

1,080 people(530 people)

2017

2018

2019

2020

2021

2022

2023

2019

2020

54

Domestic P&C

Overseas

Wellbeing

Nursing Care(2) Business Environment and Review of the Previous Mid-Term Management Plan•

In 2040, the population aged 75 years and over will increase by 2.5 times, while the working-age population will decrease by 30% as compared with 2000 when the public longterm care insurance system was introduced•

Improved employee compensation and made investment, such as in “egaku” development, to address the labor shortage during the previous Mid-Term Management Plan periodBusiness environment

Review of the previous Mid-Term Management Plan

Increase in nursing care demand and labor shortage
Materialization of inflation risk (construction expense, food expenses,
utility charges, etc.)




8,622

Working age population
Population aged 75 years and overMeasures implemented during the previous MTMP

Increase in nursing care demand and labor shortage(10,000 people)

Profits remained flat (inflation and advance investment, such as in egaku
development)
Implemented measures to address the labor supply-demand gap in nursing carec. -30%Compensation improvement(Twice, about ￥3.0 bn. in total)

7,509

6,213
Future Nursing Care & egaku development

900
2000

(CY)

1,860
2020

Source: Annual Report on the Aging Society (2023)

Challenge fromthe previous
MTMP

c. 2.5x

2,227
2040

Acquisition of ND Software• Improve profitability through Future Nursing Care (improve both quality and productivity) andutilization rate of existing facilities

Operator business• ”Connect with customers and deliver connected services” mainly
through egaku and ND Software

Wellbeing business

Platform business55

Domestic P&C

Overseas

Wellbeing

Nursing Care (3) Operator Business (Strategy)•

Work steadily on price revision by adapting to changes in the environment as well as raising the occupancy rate and making new facilities contribute to profits•

Improve both quality and productivity, step up efforts to generate non-public insurance revenue, and invest earnings generated in human capital to build a sustainablebusiness model

Improve profitability
Grow the existing
businesses

Strengthen PMI

Build a sustainable business
model
Future Nursing Care
(Improve both quality andproductivity)
See next page for details

Increase non-insurance
earnings

Adapt to changes in thebusiness environment

Price revision

Increase in repair costs
and inflation effects

Human capital investment
Major compensation
improvement

Improve employee
satisfaction
Strengthen education

56

Domestic P&C

Overseas

Wellbeing

Nursing Care(4) Operator Business (Future Nursing Care)•

The Future Nursing Care aims to improve both quality and productivity in a phased manner (create time, increase specialization and improve quality, offer
customized care)•

By 2030, each facility will be able to operate with 4 to 6 fewer people than the current number of employees

Future Nursing Care initiatives
Increase specializationand improve quality

Create time
Change

Understand theactual situation
Appropriate care plan
Secure time

Before the initiatives

Valuable

New Mid-Term Management Plan
periodPDCA cycle
Reduce out-of-hours
care
Mitigate the problems

Offer customized care

ImpressiveSupport forindependence
ACP
Participation

Goals (FY2030)
Upper limit under the current rules(3.3：1)

Sompo no Ie 3.3 : 1
FY2026FY2022
Sompo no Ie 2.42 : 1
No. of staff per facility:
18.3 people
La Vie Re 2.22 : 1
No. of staff per facility:
26.2 people*The number of staff is the full-time equivalent of caregivers and nurses

Sompo no Ie 2.82 : 1
No. of staff per facility:
16.4 people
La Vie Re 2.44 : 1
No. of staff per facility:
25.8 people

No. of staff per facility:
14.0 people(-4.3 people)

La Vie Re 3.1 : 1
No. of staff per facility:
20.3 people(-5.9 people)

57

Domestic P&C

Overseas

Wellbeing

Nursing Care(5) Platform & Wellbeing (Connect with Customers and Deliver Connected Services)••

In the platform business, “connect” with 60,000 + nursing care facilities (market share 30%) by sharing the know-how and deploy
services of Sompo Care to other nursing care providers
Also, “connect” the services and businesses of SOMPO Wellbeing with nursing care providers connected with Sompo Care

Sompo Care (nonconsolidated)

Nursing care industry

1,000 facilities in 25 prefecture
85,000 users

Operator business
Care home and athome careRefine know-how
and services

Platform business
Share know-how
and deploy services

Future Nursing
Care model
Private service
Meal
Technology &DX

SOMPO customers

60,000+ facilities in 47 prefectures (market share 30%)
1.8 million users, 3.6 million families*

SOMPO Care
University
SOMPO Care Foods

25+ million people

Domestic life
insurance

Nursing careprovidersSpecial care home & Longterm care health facility

Residence withcare
Home visit careetc.

Connect SOMPO
Wellbeing andbusiness partners of
SOMPO

Transform
ND Software* Calculated by assuming that each user has two family members

Improve quality and productivity→Improve profitability→Virtuous cycle of human capital
investment

Consultation desk forthe “three concerns”

Corporatewellness58

Main Initiatives

Domestic P&C

Overseas

Wellbeing

Main Initiative(1) Overview of “Connect with Customers and Deliver Connected Services”••

Maximize value delivered by SOMPO Group by connecting businesses, products, and services within the Group, and connecting withcustomers and data
Increase lifetime value by offering solutions that address the “three concerns” from the customer’s perspective

Connect with customers and deliver connected services
SOMPO

Customers(1) “Connect”
between businesses(2) “Connect”
with customers

Increase LTV
Increase customer touchpoints and acquire newcustomers by increasing service lineup and CX value ofconnecting with customers
Customers & families(Duration, frequency
And No.)Individual

FamilyCustomer experience ofconnecting withcustomers and delivering
connected services(Physical/digital)

LTV
SustainablegrowthSOMPO Group
Sompo Japan
Sompo Himawari Life

Sompo Care
Sompo Health Support

FamilyWellness Communications
Sompo Japan DC Securities(3) “Connect”
with data

Data

Solutions to eliminate
the “three concerns”

・
・
・

60

Domestic P&C

Overseas

Wellbeing

Main Initiative(2) Example of “Connect with Customers and Deliver Connected Services” (Digital Touchpoints)•

Connect insurance companies, including domestic P&C insurance, within the companies and with nursing care and medical checkup, connect with customers
and families, and build a business infrastructure that creates new value by leveraging the corporate wellness business which has one of largest customer
base in Japan in addition to the insurance and nursing care businesses

Example 1

Introduce life insurance products by connecting with auto
insurance customers

Example 2Create new earnings opportunities by strengthening
customer touchpoints(c. 1.6 million people)

Step 1
Policyholders(Auto insurance, etc.)(c. 1.5 million people)(c. 20 million people)

Step ２

Screen for prospects who are interested inhealth among auto insurance policyholders

Step 3
Policyholders(Auto insurance, etc.)

Newly purchase
Insurhealthproducts(c. 1.2 million people)

Increase customer registration and visit
frequency of SOMPO’s digital touchpoints byintegrating the interface in Step1

Raise the renewal rate of policyholders anddigitalization of claims process, etc., proposeand deliver new services and products
61

Domestic P&C

Overseas

Wellbeing

Main Initiative(3) Extending Healthy Life Expectancy•••

Daily exercise is an essential part of lifestyle change for customers become healthier. Automatically acquire dynamic data by encouraging customers to exercise
through chocoZAP
Develop a mechanism for customers to become healthier by acquiring and accumulating services and dynamic data which are the missing components of theGroup, and establishing a cycle of “Medical checkup” ⇒ “Exercise” ⇒ “Medical checkup”
Contribute to extending healthy life expectancy by implementing the above initiatives

Customer

List of SOMPO
group
companiesthat are in linewith thecustomers'
actions

Touchpoint

OutcomeContents & Service (Example)

Interface for a series of services,
etc. from the customer’s
perspective
Get a medical

登録

健診・脳ドック
checkup/brain
check
up
受診

健診結果のアッUpload checkup
results
プロード

Exercise and dementia
データに基づく、運動指導・
prevention guidance
based on the data
認知症予防指導chocoZAPで
Exercise withchocoZAP運動(health action)(健康行動)＞

Wellness Communications

Sompo Health Support

Data
integration

Attribute(Who)Outcome(What happened)

LifestylechangeExtendhealthy life
expectancy

Action(What to do)(How to change)

62

Domestic P&C

Overseas

Wellbeing

Main Initiative(4) Other Business Areas (Physical Touchpoints) and Future Actions•••

Focus on nursing care first as a new business area, commercialize the support center for the “three concerns”, and plan to open 3 centers by the end of FY2024
Also, deliver services, etc. for working carers to prevent resignation for caring roles which has been attracting attention as a social challenge, by taking into
account the needs of employers and employees
Like the business alliance with RIZAP, strengthen customer touchpoints, form alliances, and strengthen distribution channels for sustainable growth

Corporate wellness business

Consultation desk for the “three concerns”

Customer
contacts
Businessvision Offer nursing care consultation service tocustomers having troubles in caring for aparent among policyholders
 Plan to open 3 centers in FY2024
Nursing care
concern

Services

Futureaction Nursing careconsultation

 Deliver services that fulfill the needs of business
partners and employees, and solve the problems
facing working carers
 Direct to consultation desk for the “three concerns”
Health concern

 Check andadvise on healthconditions

Retirement financeconcern Advice on
asset building Strengthen ties between the customers and families, form alliances with companies that have contents to increase earnings
opportunities, etc.
 Enhance the capability to deliver value that combines insurance and peripheral services to customers, and strengthen the
distribution channels and customer contacts for continuous growth of written premiums and service sales
63Note Regarding Forward-looking Statements
Forecasts included in this document are based on currently available information and certain
assumptions that we consider reasonable at this point in time. Actual results may differ
materially from those projected herein depending on various factors.

Contacts

Investor Relations Department
Telephone :E-Mail:URL:+81-3-3349-3913
ir@sompo-hd.com
https://www.sompo-hd.com/en/