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

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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

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Provision of auto insurance compatible with autonomous driving and sharing economies

●

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Provision of products and services that utilize an original driving recorder

●

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Provision of one-day auto insurance (Choinori Insurance)

●

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2
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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

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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

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Promotion of diversity and inclusion

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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

●

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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

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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

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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

●

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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

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Provision of claim services that utilize big data and AI technologies

Developing industrial foundations

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Provision of cyber risk insurance for corporate customers

Realizing an inclusive society

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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

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Providing environmental awarenessSocialS●

Provision of exclusive products and services for solar, geothermal, and oﬀshore wind power generators

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153