2Q FY2020 Results and Full-Year Projections
Tokio Marine Holdings, Inc.
November 19, 2020
Table of Contents
Highlight
- Top-lineResults/Projections and
Bottom-line Results | ・・・・・・・・・・ 3 | |
- | Bottom-line Projections | ・・・・・・・・・・ 4 |
- | Impacts of COVID-19 | ・・・・・・・・・・ 5 |
- Business Unit Profits Projection | ・・・・・・・・・・ 6 | |
- | Natural Catastrophes | ・・・・・・・・・・ 7 |
2Q FY2020 Results
- Domestic Non-Life
- | TMNF Results | ・・・・・・・・・・ 9 |
- | TMNF NPW | ・・・・・・・・・・ 10 |
- TMNF Net Incurred Loss | ・・・・・・・・・・ 11 | |
- | TMNF Combined Ratio | ・・・・・・・・・・ 12 |
- TMNF Asset Management Results ・・・・・・・・・・ 13
- Domestic Life
- TMNL Results | ・・・・・・・・・・ 14 |
- International Insurance Business
- | Net Premiums Written | ・・・・・・・・・・ 15 |
- | Business Unit Profits | ・・・・・・・・・・ 16 |
- | Philadelphia | ・・・・・・・・・・ 17 |
- | Delphi | ・・・・・・・・・・ 18 |
- | TMHCC | ・・・・・・・・・・ 19 |
Copyright (c) 2020 Tokio Marine Holdings, Inc.
FY2020 Projections
• | Domestic Non-Life: TMNF | ・・・・・・・・・・・・・ 21 |
• | Domestic Life: TMNL | ・・・・・・・・・・・・・ 22 |
- International Insurance Business
- | Net Premiums Written | ・・・・・・・・・・・・・ 23 |
- | Business Profit Units | ・・・・・・・・・・・・・ 26 |
Economic Solvency Ratio
- | ESR Target Range | ・・・・・・・・・・・・・ 30 |
- | ESR and Sensitivity | ・・・・・・・・・・・・・ 31 |
Reference
- Definition of Terms | ・・・・・・・・・・・・ 33-34 |
- Reconciliation of Adjusted Net Income・・・・・・・・ 35-36
- Adjusted Net Assets/Adjusted ROE ・・・・・・・・・・ 37
- Business Unit Profits/Reconciliation ・・・・・・・・・ 38-39
- Domestic Non-Life: TMNF P/L Projections ・・・・ 40
- Domestic Non-Life: NF Results | ・・・・・・・・・・ 41 | |
- Domestic Non-Life: NF Projections | ・・・・・・・ 42 | |
◆Abbreviations used in this material | ||
TMNF | ︓Tokio Marine & Nichido Fire Insurance Co., Ltd. | |
NF | ︓Nisshin Fire & Marine Insurance Co., Ltd. | |
TMNL | ︓Tokio Marine & Nichido Life Insurance Co., Ltd. | |
TMHCC | ︓Tokio Marine HCC | 1 |
TMK | ︓Tokio Marine Kiln |
Highlight
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 2 |
Top-line Results / Projections and Bottom-line Results
Top-line
Consolidated Domestic Life
Domestic International Non-Life
Stable growth of +0.9% YoY is projected for full-year net premiums written on a local currency basis mainly due to rate increase in North America.
Life insurance premiums are projected to fall by -6.7% mainly due to increased surrender in corporate insurance and the impact of the stronger yen
- Net Premiums Written
2Q result : ¥1,809.5bn (+0.1% YoY)
Full-year projections : ¥ 3,550.0bn (-1.4% YoY)
- Life insurance premiums
2Q result : ¥469.4bn (-3.2% YoY)
Full-year projections : ¥ 920.0bn (-6.7% YoY)
- In 2Q, NPW rose 0.1% YoY (or 4.4% excluding FX effects) as an increase in NPW (+3.8%) resulting from the implementation of overseas growth strategies and the rate increase offset a drop in NPW mainly caused by the lowering of CALI premiums in Japan (-1.6%) and the impact of the stronger yen (-¥21.8bn).
- Full-yearNPW was revised downward by ¥10bn from August projection due to the impact of the stronger yen (- approx. ¥32.0bn) despite the upward revision in Japan and overseas.
- In 2Q, life insurance premiums fell 3.2% YoY due to the increased surrender in corporate insurance and other factors in the domestic business. These cancelled out the growth in the international business mainly attributable to the rate increase by TMHCC.
- Full-yearlife insurance premiums were revised upward by ¥10bn from August projection by stable rate increase in TMHCC, despite the impact of the stronger yen (- approx. ¥8.0bn)
Bottom-line (2Q results)
Consolidated net income fell ¥54.2bn YoY to ¥62.3bn mainly due to the impact of COVID-19 (hereinafter, "COVID-19 Impacts").
-¥54.2 YoY
Domestic Non-Life*3
+41.2
Natural | Other |
+15.9 | |
catastrophes | |
+12.3 |
116.6 | Mainly due to | ||||||
increase in | |||||||
COVID-19 Impacts +13.0 | net premiums | ||||||
earned for | |||||||
Underwriting +17.3 | auto and fire | ||||||
insurance | |||||||
Investment | -4.3 | ||||||
Domestic Life*3 | (billions of JPY) | |||||||||||||||||
International Insurance*3 | ||||||||||||||||||
+9.5 | Financial and | |||||||||||||||||
-107.3 | ||||||||||||||||||
general etc. | ||||||||||||||||||
(Of this, COVID-19 | ||||||||||||||||||
+2.3 | ||||||||||||||||||
Impacts +0.4) | ||||||||||||||||||
Mainly due to | ||||||||||||||||||
decrease in | Natural | Amortization of | ||||||||||||||||
system | Pure's goodwill | |||||||||||||||||
development | catastrophes | and other | ||||||||||||||||
+1.4 | intangible fixed | |||||||||||||||||
expenses | Other | |||||||||||||||||
assets -10.3 | 62.3 | |||||||||||||||||
+0.5 | ||||||||||||||||||
COVID-19 Impacts | -86.0 | |||||||||||||||||
Temporary | ||||||||||||||||||
Underwriting -52.7 | factor*4 |
-12.9 | |
Investment -33.3 | |
2Q19 | 2Q20 |
*3 Include consolidation adjustments. Gains and losses on overseas business such as group reinsurance recorded by TMNF are included in international insurance. | 3 |
Copyright (c) 2020 Tokio Marine Holdings, Inc. *4 Impairment loss on equities of unconsolidated overseas subsidiaries, etc. and reaction to the previous year's acquisition of a US insurance agent as a subsidiary. |
Bottom-line Projections
Consolidated Domestic Life
Domestic
Non-Life
International
Full-year consolidated net income was revised upward by ¥25bn from August projection mainly due to the improved COVID-19 Impacts and an increase in net premiums earned, which will more than offset an increase in natural catastrophes in Japan and impairment losses on equities of overseas subsidiaries.
Adjusted net income was revised upward by ¥22bn reflecting the exclusion of an impact of catastrophe loss reserves and impairment losses on equities of overseas subsidiaries, etc.
- Consolidated net income
+25.0 from August projection
Domestic Non-Life*1
+17.0
COVID-19 Impacts +13.0
domestic Life*1 | International Insurance*1 | Financial & | ||||
+6.0 | -3.1 | general etc. | (billions of JPY) | |||
+5.1 | ||||||
Natural | ||||||
COVID-19 | catastrophes | |||||
Other | +5.0 | 200.0 |
Underwriting +11.0 Investment +2.0
Catastrophe
Other | Impacts | +4.0 | Other | |||||||||
+2.0 | +2.2 | |||||||||||
+11.2 | ||||||||||||
175.0
loss reserves
+13.3
Mainly gains on | COVID-19 Impacts ±0 |
sales of overseas | Underwriting -8.0 |
bonds | |
Investment +8.0 |
Impairment loss
on equities of
overseas
Natural catastrophes
-20.5
Mainly an increase in net premiums earned in fire and specialty
subsidiaries, etc.
-10.4
2020 projections | 2020 projections |
(August) | (revised) |
- Adjusted net income
+22.0 from August projection
Financial & | |||||||||||||||||||||||||||||||||
Domestic Non-Life*1 | domestic Life*1 | International Insurance*1 | (billions of JPY) | ||||||||||||||||||||||||||||||
general etc. | |||||||||||||||||||||||||||||||||
COVID-19 Impacts +21.0 | +0.5 | ||||||||||||||||||||||||||||||||
Natural | |||||||||||||||||||||||||||||||||
Underwriting +19.0 | |||||||||||||||||||||||||||||||||
catastrophes | |||||||||||||||||||||||||||||||||
Investment | +2.0 | COVID-19 | Other | 332.0 | |||||||||||||||||||||||||||||
+5.0 | |||||||||||||||||||||||||||||||||
Impacts | +4.0 | ||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
+2.0 | Other | ||||||||||||||||||||||||||||||||
+11.2 | |||||||||||||||||||||||||||||||||
310.0 | Mainly gains on | COVID-19 Impacts ±0 | -1.2 | ||||||||||||||||||||||||||||||
Underwriting -8.0 | |||||||||||||||||||||||||||||||||
sales of overseas | |||||||||||||||||||||||||||||||||
Natural | |||||||||||||||||||||||||||||||||
Mainly an increase in net premiums | bonds | Investment +8.0 | |||||||||||||||||||||||||||||||
catastrophes | |||||||||||||||||||||||||||||||||
-20.5 | earned in fire and specialty | ||||||||||||||||||||||||||||||||
2020 projections | *1 Include consolidation adjustments. Gains and losses on overseas business such as group reinsurance recorded by TMNF are included in international insurance. | 2020 projections | |||||||||||||||||||||||||||||||
(August) | *2 Include adjustment from consolidated net income to adjusted net income. | (revised) | 4 | ||||||||||||||||||||||||||||||
Copyright (c) 2020 Tokio Marine Holdings, Inc. | |||||||||||||||||||||||||||||||||
Impacts of COVID-19
COVID-19 impacts on underwriting and investment are improving with the projected negative impact of ¥76.0bn, which is ¥24.0bn less than August projections.
Impacts on adjusted net income (billions of JPY; estimates)
August | Revised | Change | Main reason for change |
projections | projections | ||
Life-Non Domestic
Underwriting
Investment
+5.0 | +24.0 | +19.0 | Projected fall in net incurred losses in auto and |
P.A. insurance | |||
-6.0 | -4.0 | +2.0 | Decrease in hedging costs due to the contraction |
in interest rate differentials between Japan and | |||
overseas | |||
International
Underwriting
Investment
-57.0 | -65.0 | -8.0 Expected increase in trade credit insurance, etc. |
-42.0 | -34.0 | +8.0 Decrease in losses on the default of credit risk |
assets |
+1.0 | +3.0 | +2.0 | Decrease in hedging costs due to the contraction | |||
Domestic Life | in interest rate differentials between Japan and | |||||
overseas | ||||||
Total | -100.0 | -76.0 | +24.0 | |||
※ Plus and minus of the figures in above table correspond to positive and negative to profit respectively | 5 | |
Copyright (c) 2020 Tokio Marine Holdings, Inc. | ||
Business Unit Profits Projection
Business unit profit of Domestic Non-life was revised upward by ¥15.0bn from August projection due to the improved COVID-19 Impacts (+¥21.0bn) and increased net premiums earned despite increased natural catastrophe.
In Domestic Life, no change was made to August projection as the business is progressing smoothly.
In International Insurance, business unit profit was revised upward by ¥8.0bn from August projection mainly due to the improved COVID-19 Impacts (+¥6.0bn*1) and a fall in natural catastrophes.
FY2020 projections
August | Revised | Change |
Domestic | ¥135.0bn | ¥150.0bn | +¥15.0bn |
Non-life | |||
Domestic | ¥164.0bn | ¥164.0bn | - |
Life*2 |
International*1 | ¥67.0bn | ¥75.0bn | +¥8.0bn | ||
Main reasons for change
- Improved COVID-19 Impacts
- Increase in net premiums
earned (fire/specialty)
- Increase in natural catastrophes
(See p.21 for details)
No change to August projection as the business is progressing as planned
(See p.22 for details)
- Improved COVID-19 Impacts
- Fall in natural catastrophes Stronger yen
(See p.26 for details)
*1 | The difference with impacts on adjusted net income is attributable to the different methods of profit calculation in life segment (business unit profits: | |
based on an increase in EV; adjusted net income: based on financial accounting). | ||
*2 | Increase in EV for life insurance | 6 |
Copyright (c) 2020 Tokio Marine Holdings, Inc. | ||
Natural Catastrophes
Full-year projections are expected to ¥128.5bn (before tax) due to an increase in natural catastrophes in Japan.
■ Net incurred losses relating to natural catastrophes (business unit profit basis; billions of JPY)
FY2019 | FY2020 | YoY Change*1 | |
Before tax | 2Q Results | 2Q Results | |
Domestic | 89.6 | 72.5 | -17.1 |
Non-life | |||
International | 10.2 | 8.6 | -1.5 |
Total | 99.8 | 81.1 | -18.6 |
After tax*2 | |||
Domestic | 64.6 | 52.2 | -12.3 |
Non-life | |||
International | 8.0 | 6.8 | -1.2 |
Total | 72.7 | 59.0 | -13.6 |
FY2020 Full-year Projections | Difference*1 | |
(1) August | (2) Revised | ((2) - (1)) |
58.0 | 86.5 | +28.5 |
49.0 | 42.0 | -7.0 |
107.0 | 128.5 | +21.5 |
41.8 | 62.3 | +20.5 |
38.0 | 33.0 | -5.0 |
79.8 | 95.3 | +15.5 |
- Major natural catastrophes in Japan in 2Q *Natural catastrophes larger than a certain size
Gross incurred losses*3 | ||||
Typhoon Haishen | ¥34.3bn | |||
Heavy rains in July | ¥31.8bn | |||
*1 | "+" means negative for profits, while "-" means positive for profits. | |||
*2 | After-tax figures are estimates. | |||
*3 | Before tax and total of Domestic Non-life. | 7 | ||
Copyright (c) 2020 Tokio Marine Holdings, Inc. | ||||
2Q FY2020 Results
Applied FX rate (USD/JPY) | ||
FY2019 | FY2020 | |
End of September | JPY 107.92 | JPY 105.80 |
(Domestic Non-Life & Life) | (+JPY3.07 from Mar. 2019) | (+JPY3.03 from Mar. 2020) |
End of June | JPY 107.79 | JPY 107.74 |
(International) | (+JPY3.21 from Dec. 2018) | (+JPY1.82 from Dec. 2019) |
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 8 |
Domestic Non-Life 1: TMNF Results
Consolidated Domestic Life
Domestic
Non-Life
International
Underwriting profit grew by ¥35.6bn YoY to -¥4.8bn mainly due to a fall in net incurred losses.
Net investment income and other rose by ¥12.2bn YoY to ¥95.7bn mainly due to an increase in dividends from overseas subsidiaries.
As a result, net income grew by ¥21.4bn YoY to ¥62.9bn.
(billions of JPY)
FY2019 | FY2020 | ||||||
2Q | 2Q | COVID-19 | YoY | ||||
Results | Results | ||||||
Impacts | Change | ||||||
Underwriting profit/loss | - 40.5 | - 4.8 | 1.0 | 35.6 | |||
(Underwriting profit/loss: excluding provision/reversal of | - 6.0 | 36.5 | 42.5 | ||||
catastrophe loss reserves) | |||||||
Net premiums written (Private insurance) | 1,001.9 | 1,004.0 | 2.1 | ||||
Net premiums earned (Private insurance)*1 | 957.2 | 983.4 | 26.1 | ||||
Net incurred losses (Private insurance)*2 | - 635.1 | - 591.2 | 43.9 | ||||
Natural catastrophe losses | - 82.2 | - 66.9 | 15.3 | ||||
Provision/Reversal of foreign currency denominated | 2.8 | 2.9 | 0.1 | ||||
outstanding claims reserves | |||||||
Other than above | - 555.7 | - 527.3 | 28.4 | ||||
Business expenses (Private insurance) | - 313.9 | - 313.4 | 0.5 | ||||
Provision/Reversal of catastrophe loss reserves | - 34.4 | - 41.3 | - 6.9 | ||||
Auto | - 10.4 | - 17.5 | - 7.0 | ||||
Fire | - 10.0 | - 15.6 | - 5.6 | ||||
Provision/Reversal of nat-cat underwriting reserves | - | - 8.4 | - 8.4 | ||||
Provision/Reversal of underwriting result for the first year*3 | - 11.7 | - 32.7 | - 21.0 | ||||
Net investment income (loss) and other | 83.5 | 95.7 | - 6.0 | 12.2 | |||
Ordinary profit/loss | 45.4 | 93.9 | 48.4 | ||||
Extraordinary gains/losses | 0.2 | - 14.2 | - 14.5 | ||||
Net income/loss | 41.5 | 62.9 | - 4.0 | 21.4 | |||
*1 Excluding provision for nat-cat underwriting reserves | |||||||
*2 Including loss adjustment expenses |
*3 provision for the general underwriting reserves excluding provision for unearned premiums
(Notes)
- Plus and minus of the figures in the above table correspond to positive and negative to profit respectively
- Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- Underwriting Profit:
- Grew by ¥35.6bn YoY to -¥4.8bn mainly due to the following factors:
- Net premiums written (Private insurance) (see P.10 for details):
- Increased in auto insurance due to rate revision
- Net incurred losses (Private insurance) (see P.11 for details):
- Decreased in auto and P.A. insurance due to fall in accident frequency
- Catastrophe loss reserves:
- Increase in provision due to the reversal effect of takedown in 2Q FY2019
- Natural catastrophe underwriting reserves:
- Provision with the upward trend in the fire loss ratio
- Provision of underwriting result for the first year:
- Increase due to a drop in net incurred losses in auto
insurance
- Underwriting result for the first year is underwriting reserve posted by deferring a profit remained for the year of the contract to the following fiscal year.
- Net Investment Income and Other (see P.13 for details):
- ¥12.2bn increase YoY to ¥95.7bn mainly due to an increase in dividends from overseas subsidiaries
- Extraordinary Gains / Losses:
- Decreased by ¥14.5bn YoY to -¥14.2bn mainly due to valuation losses of affiliate equities and a reaction to sales gains on affiliate equities posted in 2Q FY2019
- Net Income:
- ¥21.4bn increase YoY to ¥62.9bn due to the above factors, etc.
9
Domestic Non-Life 2: TMNF NPW
Consolidated Domestic Life
Domestic
Non-Life
International
Net premiums written (private insurance) increased by ¥2.1bn YoY to ¥1,004bn driven by auto insurance rate revision, although P.A. and some other lines declined due to COVID-19 Impacts.
For all lines, NPW fell by ¥17.9bn YoY to ¥1,127.4bn due to factors such as the impact of rate reduction in CALI in April 2020.
(billions of JPY, except for %)
FY2019 | FY2020 | ||||
2Q | 2Q | YoY | |||
Results | Results | ||||
Change | % | ||||
Fire | 164.4 | 164.3 | - 0.0 | -0.0% | |
Marine | 33.3 | 31.8 | -1.4 | -4.5% | |
P.A. | 101.8 | 91.4 | -10.4 | -10.2% | |
Auto | 536.3 | 546.8 | 10.4 | 2.0% | |
CALI | 143.1 | 123.0 | -20.0 | -14.0% | |
Other | 166.3 | 169.8 | 3.5 | 2.1% | |
Total | 1,145.4 | 1,127.4 | -17.9 | -1.6% | |
o/w Private insurance | 1,001.9 | 1,004.0 | 2.1 | 0.2% | |
Total | |||||
- Fire:
- Increase in premiums ceded
- Grew due to rate revision in October 2019
- Marine:
- Fell due to less movements of goods following COVID-19
- P.A.:
- Fell in travel insurance due to COVID-19
- Auto:
- Increase driven by rate revision in January 2020, etc.
- Decrease in new vehicles sales due to COVID-19
- CALI:
- Fell due to rate reduction in April 2020
- Decrease in new vehicles sales due to COVID-19
- Other:
- Grew due to large contracts in movable comprehensive insurance, etc.
- Fell in event cancellation insurance, etc. due to COVID-19
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 10 |
Domestic Non-Life 3: TMNF Net Incurred Loss
Consolidated Domestic Life
Domestic
Non-Life
International
Net incurred losses fell by ¥43.9bn YoY to ¥591.2bn mainly due to lower accident frequency in auto and P.A. insurance as a result of COVID-19 Impacts (-¥36.0bn) and a drop in net incurred losses relating to natural catastrophes (-¥15.3bn).
(billions of JPY, except for %) | ||||||
FY2019 | FY2020 | |||||
2Q | Nat-Cat | 2Q | Nat-Cat | YoY | ||
Results | Results | |||||
losses | losses | Change | % | |||
Fire | 142.3 | 72.0 | 144.4 | 58.9 | 2.1 | 1.5% |
Marine | 26.6 | 0.9 | 20.6 | 1.1 | - 6.0 | -22.5% |
P.A. | 47.1 | - | 36.9 | - | - 10.1 | -21.6% |
Auto | 324.7 | 6.8 | 281.8 | 5.0 | - 42.9 | -13.2% |
Other | 94.3 | 2.4 | 107.3 | 1.8 | 13.0 | 13.8% |
Total | 635.1 | 82.2 | 591.2 | 66.9 | - 43.9 | -6.9% |
- Fire:
- Increase in large losses overseas due to COVID-19 Impacts, etc.
- Decrease in natural catastrophes
- Marine:
- Decrease in small size losses for both hull and cargo
- P.A.:
- Lower accident frequency due to COVID- 19 related stay at home policies
- Auto:
- Lower accident frequency due to COVID- 19 related stay at home policies
- Other:
- Increase in net incurred losses in overseas trade credit insurance due to COVID-19 Impacts
(Notes)
Including loss adjustment expenses in the above table
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 11 |
Domestic Non-Life 4: TMNF Combined Ratio
Consolidated Domestic Life
Domestic
Non-Life
International
E/I loss ratio fell by 6.2pts YoY to 60.1% mainly due to a fall in net incurred losses from the impacts of COVID-19.
Expense ratio declined by 0.1pt YoY to 31.2% as a drop in corporate expense ratio offset a rise in agency commission ratio.
Combined ratio improved by 6.4pts YoY to 91.3%.
Combined Ratio | 110.5% |
(Private insurance: | |
E/I basis) | 97.7% |
E/I Loss Ratio*1 | 91.3% |
Impact of natural catastrophes (pt)
21.2 8.6 6.8
Expense Ratio
(billions of JPY)
FY2018 | FY2019 | FY2020 | |||
2Q | 2Q | 2Q | |||
YoY | |||||
Results | Results | Results | |||
Change | |||||
Net premiums written | 959.1 | 1,001.9 | 1,004.0 | 2.1 | |
Net premiums earned*2 | 943.6 | 957.2 | 983.4 | 26.1 | |
Net incurred losses*1 | 742.3 | 635.1 | 591.2 | - 43.9 | |
Business expenses | 305.5 | 313.9 | 313.4 | - 0.5 | |
Corporate expenses | 112.5 | 111.3 | 103.8 | - 7.4 | |
Agency commissions | 192.9 | 202.6 | 209.5 | 6.8 | |
*1 Including loss adjustment expenses
*2 Excluding provision for nat-catunderwriting reserves Copyright (c) 2020 Tokio Marine Holdings, Inc.
- E/I Basis Loss Ratio:
- Fell for all lines excluding Other due to the impacts of
COVID-19 related stay at home policies and a reduction in natural catastrophes
- Increased by 4.6pts in Other following an increase in net incurred losses in overseas trade credit insurance due to the impacts of COVID-19
- Expense Ratio:
- Corporate expense ratio fell by 0.8pt due to a fall in non-personnel expenses
- Agency commission ratio rose by 0.6pt due to the effect of consumption tax hike, etc.
- Combined Ratio:
Improved by 6.4pts YoY to 91.3% due to the above and other factors
E/I Loss Ratio*1
FY2019 | FY2020 | ||
2Q | 2Q | ||
YoY | |||
Results | Results | ||
Change | |||
Fire | 98.7% | 94.6% | - 4.1pt |
Marine | 82.1% | 60.2% | - 22.0pt |
P.A. | 54.5% | 45.0% | - 9.5pt |
Auto | 61.0% | 51.8% | - 9.1pt |
Other | 58.4% | 63.0% | 4.6pt |
Private insurance | 66.4% | 60.1% | - 6.2pt |
Total | |||
12
Domestic Non-Life 5: TMNF Asset Management Results
Consolidated Domestic Life
Domestic
Non-Life
International
Net investment income and other increased by ¥12.2bn YoY to ¥95.7bn mainly because of an increase in dividends income from overseas subsidiaries.
(billions of JPY)
FY2019 | FY2020 | |||||||
2Q | 2Q | COVID-19 | YoY | |||||
Results | Results | Impacts | Change | |||||
Net investment income and other | 83.5 | 95.7 | - 6.0 | 12.2 | ||||
Net investment income | 102.3 | 112.1 | - 6.0 | 9.8 | ||||
Net interest and dividends income | 57.8 | 63.0 | - 7.0 | 5.2 | ||||
Interest and dividends | 77.5 | 81.2 | 3.7 | |||||
37.1 | 30.9 | - 6.2 | ||||||
Dividends from domestic stocks | ||||||||
Dividends from foreign stocks | 10.4 | 23.7 | 13.2 | |||||
Income from domestic bonds | 10.2 | 8.6 | - 1.6 | |||||
Income from foreign bonds | 2.3 | 1.3 | - 0.9 | |||||
Income from other domestic securities*1 | 2.1 | 0.2 | - 1.9 | |||||
Income from other foreign securities*2 | 9.4 | 10.4 | 1.0 | |||||
Transfer of investment income | - 19.7 | - 18.1 | 1.5 | |||||
on deposit premiums | ||||||||
Net capital gains | 44.5 | 49.1 | 1.0 | 4.5 | ||||
Gains/Losses on sales of securities | 57.9 | 56.8 | - 1.0 | |||||
Impairment losses on securities | - 2.5 | - 2.9 | - 0.4 | |||||
Impairment losses on domestic stocks | - 2.2 | - 1.1 | 1.0 | |||||
Gains/Losses on derivatives | - 7.8 | - 5.4 | 2.4 | |||||
Foreign exchange gains/losses | - 3.2 | 0.1 | 3.3 | |||||
Other investment income and expenses | 0.2 | 0.1 | - 0.1 | |||||
Others | - 0.0 | 0.3 | 0.3 | |||||
Other ordinary income and expenses | - 18.8 | - 16.3 | 2.4 | |||||
*1 Income from domestic securities excluding domestic stocks and domestic bonds. *2 Income from foreign securities excluding foreign stocks and foreign bonds.
Note: Plus and minus of the figures in the above table correspond to positive and negative to profit respectively.
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- Net interest and dividends income:
- Decrease in dividends income from domestic equities
- Increase in dividends income from overseas subsidiaries
- Net capital gains:
- Decrease in losses on derivatives due to improved hedging cost
- The reversal effect of FX losses on USD deposits posted in FY2019
¥57.0bn capital gains from sales of business-related equities, ¥2.0bn increase YoY
(Sales of business-related equities was ¥72.0bn)
13
Domestic Life: TMNL Results
Consolidated Domestic Life
Domestic
Non-Life
International
New policies ANP moved flat YoY as the strong sales of new medical insurance offset the impact of the self-imposed suspension of face-to-face sales activities during the COVID-19 pandemic.
Net income rose by ¥9.1bn YoY to ¥22.3bn mainly due to a reaction to an increase in system development expenses in 2Q FY2019 and a drop in hedging cost.
(Billions of JPY)
FY2019 | FY2020 | |||||||
2Q | 2Q | YoY | ||||||
Results | Results | Change | % | |||||
New policies ANP | 18.4 | 18.4 | - 0.0 | - 0.1% | ||||
In-force policies ANP | 844.9 | 826.4 | - 18.5 | - 2.2% | ||||
FY2019 | FY2020 | |||||||
2Q | 2Q | COVID-19 | YoY | |||||
Results | Results | Impacts | Change | |||||
Ordinary income | 481.8 | 488.6 | 6.8 | |||||
Insurance premiums and other | 422.3 | 405.8 | - 16.4 | |||||
Net income | 13.2 | 22.3 | 0.4 | 9.1 | ||||
Ordinary profit | 15.6 | 29.9 | 14.2 | |||||
(-) Capital gains / losses | - 5.3 | - 2.7 | 2.6 | |||||
(-)Non-recurring income / losses | - 0.2 | - 0.6 | - 0.3 | |||||
Core operating profit | 21.3 | 33.3 | - 0.4 | 11.9 | ||||
FY2019 | FY2020 | |||||||
2Q | 2Q | YoY | ||||||
Results | Results | Change | ||||||
Increase in MCEV* | - 51.4 | 145.6 | 197.1 | |||||
Value of new business + | 30.2 | 34.0 | 3.8 | |||||
Existing business contribution | ||||||||
* Excluding capital transactions |
- New Policies ANP
- Impact of the self-imposed suspension of face-to-face sales activities during the COVID-19 pandemic
- Strong sales of new medical insurance targeting seniors (hereinafter, the "New Product")
- In-forcePolicies ANP
- Impact of a reduction in in-force policies caused by increased surrender, etc. which exceeded an increase in new policies, in corporate insurance (In-force policies ANP were up 2.1% YoY excluding corporate insurance)
- Net Income
- Drop in business expenses due to factors such as a reaction to the increased system development cost in 2Q FY2019
- Improved capital gains / losses due to a reduction in hedging cost, etc.
- Business Unit Profits (Increase in MCEV)
- Higher yen interest rates and reaction to the lower yen interest rates in 2Q FY2019
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 14 |
International 1 : Net Premiums Written
Consolidated Domestic Life
Domestic | International |
Non-Life | |
NPW almost moved sideways YoY on a local currency basis as the growth measures taken offset the reduction caused by the impact of COVID-19 (approx. - ¥30bn) and the underwriting practice focusing on profitability. In North America, NPW rose 3.1% YoY on a local currency basis or 6.6% excluding the impact of COVID-19, capturing the hardening market.
(billions of JPY, except for %) | - | |||||||
FY2019 | FY2020 | |||||||
2Q | 2Q | YoY | ||||||
Results | Results | (Ref.) | ||||||
Applied FX rate | As of end | As of end | YoY % | |||||
Jun. 2019 | Jun. 2020 | Change | % | (Excluding | ||||
(USD/JPY) | JPY 107.7 | JPY 107.7 | FX effects*4) | |||||
North America*1 | 550.7 | 567.2 | 16.4 | 3.0% | 3.1% | |||
Philadelphia | 179.9 | 170.1 | - 9.7 | -5.4% | -5.4% | |||
Delphi | 135.7 | 144.1 | 8.3 | 6.2% | 6.2% | |||
TMHCC | 195.6 | 216.4 | 20.7 | 10.6% | 10.7% | |||
Europe & Middle East & | 93.6 | 79.3 | - 14.2 | -15.2% | -8.5% | - | ||
Africa*2 | ||||||||
South & | 67.7 | 49.0 | - 18.6 | -27.6% | 2.6% | |||
Central America | ||||||||
Asia & Oceania | 91.9 | 87.2 | - 4.6 | -5.1% | -2.9% | |||
- | ||||||||
Total Non-Life*3 | 812.7 | 782.9 | - 29.8 | -3.7% | -0.0% | |||
Life | 48.3 | 45.9 | - 2.3 | -4.9% | -2.0% | |||
- | ||||||||
Total | 861.1 | 828.9 | - 32.1 | -3.7% | -0.1% | |||
*1: North American figures include European business of TMHCC, but do not include North American business of TMK.
*2: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.
*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.
North America (See P. 17-19 for details)
- Philadelphia: Although premiums were raised for the renewal book (+9.9%), NPW fell due to the impact of COVID-19 and the underwriting practice focusing on profitability
- Delphi: NPW rose thanks to the expanded underwriting of non-life book
- TMHCC: Despite the impact of COVID-19, NPW grew mainly due to the rate increase in medical stop-loss (+23.5% on an effective rate change basis, including higher deductibles effect) and the expanded underwriting of segments outside the U.S.
Europe, Middle East & Africa
- Despite the rate increase in Lloyd's, NPW fell due to the impact of the stronger yen and changes made to the managerial accounting rules applied to Hollard (-¥10.7bn).
South & Central America
- Despite the expanded underwriting of corporate products, NPW declined due to the impact of the stronger yen.
Asia & Oceania
- NPW shrank due to the impact of the stronger yen and COVID-19.
*4: Excluding the FX impact for conversion to the Japanese yen.
The above figures of International Insurance Business are the total of foreign branches of TMNF, equity method investees,
and non-consolidated companies, etc., and are aligned with the disclosure format of our IR materials from before. (The same applies below)
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- Life
- Despite an increase in Thailand, NPW fell due to the impact of COVID-19 and the stronger yen.
15
International 2 : Business Unit Profits
Consolidated Domestic Life
Domestic | International |
Non-Life | |
Business unit profits shrank by ¥66.5bn mainly due to the impact of COVID-19(-¥73.1bn).
Of the ¥73.1bn reduction, -¥40bn*1 was related to underwriting (approx. -¥36.0bn for Event Cancellation and Business Interruption total) and -¥33.1bn was related to investment.
(billions of JPY, except for %)
FY2019 | FY2020 | |||||
2Q | 2Q | |||||
Results | Results | YoY | ||||
As of end | As of end | |||||
Applied FX rate | Jun. 2019 | Jun. 2020 | Change | % | ||
(USD/JPY) | ||||||
JPY 107.7 | JPY 107.7 | |||||
North America*2 | 80.8 | 34.2 | - 46.6 | -57.6% | ||
Philadelphia | 18.8 | 13.6 | - 5.1 | -27.6% | ||
Delphi | 37.8 | 10.2 | - 27.5 | -72.9% | ||
TMHCC | 21.6 | 8.0 | - 13.6 | -62.9% | ||
Europe & Middle East & | 4.2 | - 7.7 | - 11.9 | -284.1% | ||
Africa*3 | ||||||
South & | 6.7 | 5.3 | - 1.4 | -22.0% | ||
Central America | ||||||
Asia & Oceania | 8.4 | 9.1 | 0.7 | 8.7% | ||
Total Non-Life*4 | 101.9 | 42.4 | - 59.4 | -58.3% | ||
Life | 6.4 | - 3.9 | - 10.4 | -162.1% | ||
Pure | - | 3.9 | 3.9 | - | ||
Total | 102.6 | 36.1 | - 66.5 | -64.8% | ||
(Ref.) YoY %
(Excluding FX effects*5)
-57.6%
-27.6%
-72.9%
-62.9%
-295.4%
10.7%
9.4%
-57.4%
-162.7%
-
-63.7%
- North America (See P. 17-19 for details) |
Profits decreased mainly due to the impact of COVID-19, |
although net incurred losses related to natural catastrophes |
fell and profitability improvement efforts had a positive |
impact |
- Europe, Middle East & Africa |
Although FX gains/losses improved in Europe, profits shrank |
due to the impact of COVID-19 |
- South & Central America |
Profits rose on a local currency basis thanks to factors such as |
a decline in car accidents due to COVID-19 |
- Asia & Oceania |
Profits grew thanks to factors such as a decline in car |
accidents due to COVID-19 in Asia |
- Life*6 |
Profits fell mainly due to the reaction to the rise in share |
prices in the previous year in Singapore |
- Pure |
Profits grew thanks to the new consolidation (recorded for |
*1: The difference with the impact of COVID-19 on consolidated net income (-¥52.7bn) on P.3 is attributable to the impact on TMNF's international insurance business for Group reinsurance and so on (which was reflected in the 2Q consolidated net income and will be reflected in the 3Q business unit profits).
*2: North American figures include European business of TMHCC, but do not include North American business of TMK.
*3: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.
*4: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.
*5: Excluding the FX impact for conversion to the Japanese yen.
*6: Includes the impact of changes made to the managerial accounting rules applied to Singaporean life business (-¥2.5bn).
the applicable portion of the period) |
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 16 |
International 3︓Philadelphia
- Changes in Major P/L Items
Consolidated Domestic Life
Domestic | International |
Non-Life | |
(billions of JPY, except for % and pt)
FY2019 | FY2020 | |||||
2Q | 2Q | YoY | ||||
Results | Results | |||||
As of end | As of end | |||||
FX rates | Jun. 2019 | Jun. 2020 | Change | % | ||
(USD/JPY) | ||||||
JPY 107.7 | JPY 107.7 | |||||
Net premiums written | 179.9 | 170.1 | -9.7 | -5.4% | ||
Net premium earned | 182.5 | 177.4 | -5.0 | -2.8% | ||
Net incurred losses | 124.4 | 119.8 | -4.5 | -3.7% | ||
8.8 | 6.6 | -2.1 | -24.0% | |||
Nat-Cat losses | ||||||
56.0 | 53.5 | -2.4 | -4.4% | |||
Commissions / Other Underwriting expenses | ||||||
Underwriting profit | 2.0 | 4.0 | 1.9 | 95.4% | ||
Net investment income / loss | 18.9 | 12.1 | -6.7 | -35.8% | ||
Business unit profits | 18.8 | 13.6 | -5.1 | -27.6% | ||
Loss ratio*1 | 68.2% | 67.5% | -0.7pt | - | ||
Expense ratio*1 | 30.7% | 30.2% | -0.5pt | - | ||
Combined ratio*1 | 98.9% | 97.7% | -1.2pt | - | ||
*1: Denominator used is net premiums earned
*2: Excluding FX effects due to yen conversion
(Ref.) YoY %
(Excluding FX effects*2)
-5.4%-2.7%-3.6%-24.0%-4.4% 95.5% -35.8%-27.6%
-
-
-
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 17 |
International 4 ︓Delphi
- Changes in Major P/L Items
(billions of JPY, except for % and pt) | ||||||||
FY2019 | FY2020 | |||||||
2Q | 2Q | YoY | ||||||
Results | Results | |||||||
(Ref.) | ||||||||
As of end | As of end | YoY % | ||||||
FX rates | Jun. 2019 | Jun. 2020 | (Excluding | |||||
Change | % | FX effects*2) | ||||||
(USD/JPY) | JPY 107.7 | JPY 107.7 | ||||||
Net premiums written | 135.7 | 144.1 | 8.3 | 6.2% | 6.2% | |||
Net premium earned | 130.1 | 141.3 | 11.2 | 8.6% | 8.7% | |||
Net incurred losses | 94.1 | 102.2 | 8.1 | 8.6% | 8.7% | |||
- | - | - | - | - | ||||
Nat-Cat losses | ||||||||
Commissions / Other Underwriting expenses | 35.3 | 40.0 | 4.7 | 13.6% | 13.6% | |||
Underwriting profit | 0.6 | -1.0 | -1.6 | -261.3% | -261.6% | |||
Net investment income / loss | 81.3 | 39.0 | -42.2 | -52.0% | -51.9% | |||
Business unit profits | 37.8 | 10.2 | -27.5 | -72.9% | -72.9% | |||
Loss ratio*1 | 72.4% | 72.4% | -0.0pt | - | - | |||
Expense ratio*1 | 27.1% | 28.4% | 1.2pt | - | - | |||
Combined ratio*1 | 99.5% | 100.7% | 1.2pt | - | - |
- Net Premiums Written by Segment
(billions of JPY, except for %)
Consolidated Domestic Life
Domestic | International |
Non-Life | |
<-¥42.2bn YoY decrease in net investment income>
Net investment income in the table on the left includes hedging gains/losses for stock price options. Excluding the impact, the YoY change in net investment income is -¥31.9bn.
- Loss Ratio by Segment*1
FY2019 | FY2020 | ||||
2Q | 2Q | YoY | |||
Results | Results | ||||
As of end | As of end | ||||
FX rates | Jun. 2019 | Jun. 2020 | Change | % | |
(USD/JPY) | JPY 107.7 | JPY 107.7 | |||
Non-life | 67.4 | 75.2 | 7.8 | 11.6% | |
Life | 68.3 | 68.9 | 0.5 | 0.8% | |
Total | 135.7 | 144.1 | 8.3 | 6.2% | |
(Ref.) YoY %
(Excluding
FX effects*2)
11.7%
0.8%
6.2%
FY2019 | FY2020 | ||
2Q | 2Q | Change | |
Results | Results | ||
Non-life | 70.8% | 76.9% | 6.2pt |
Life | 73.8% | 67.5% | -6.3pt |
Total | 72.4% | 72.4% | -0.0pt |
*1: Denominator used is net premiums earned
*2: Excluding FX effects due to yen conversion
18
Copyright (c) 2020 Tokio Marine Holdings, Inc.
International 5 ︓TMHCC
- Changes in Major P/L Items
(billions of JPY, except for % and pt)
Consolidated Domestic Life
Domestic | International |
Non-Life | |
FY2019 | FY2020 | |||||
2Q | 2Q | YoY | ||||
Results | Results | |||||
As of end | As of end | |||||
FX rates | Jun. 2019 | Jun. 2020 | Change | % | ||
(USD/JPY) | JPY 107.7 | JPY 107.7 | ||||
Net premiums written | 195.6 | 216.4 | 20.7 | 10.6% | ||
Net premium earned | 166.6 | 188.0 | 21.3 | 12.8% | ||
Net incurred losses | 108.1 | 138.8 | 30.7 | 28.4% | ||
0.7 | 0.6 | -0.1 | -23.1% | |||
Nat-Cat losses | ||||||
Commissions / Other Underwriting expenses | 38.5 | 42.5 | 4.0 | 10.4% | ||
Underwriting profit | 12.9 | 0.0 | -12.8 | -99.5% | ||
Net investment income / loss | 14.3 | 9.9 | -4.3 | -30.7% | ||
Business unit profits | 21.6 | 8.0 | -13.6 | -62.9% | ||
Loss ratio*1 | 64.9% | 73.8% | 8.9pt | - | ||
Expense ratio*1 | 23.1% | 22.6% | -0.5pt | - | ||
Combined ratio*1 | 88.0% | 96.5% | 8.5pt | - | ||
(Ref.) YoY %
(Excluding FX effects*2)
10.7%
12.9%
28.5% -23.1% 10.5% -99.5%-30.6%
-62.9%
-
-
-
The calculation method of expense ratio for the purpose of managerial accounting was changed effective 1Q FY2020.
Accordingly, the expense ratio and combined ratio for FY2019 were recalculated using the new calculation method. This has not changed the bottom-line result.
- Net Premiums Written by Segment
(billions of JPY, except for %) | |||||||
FY2019 | FY2020 | ||||||
2Q | 2Q | YoY | |||||
Results | Results | ||||||
(Ref.) | |||||||
As of end | As of end | YoY % | |||||
FX rates | Jun. 2019 | Jun. 2020 | (Excluding | ||||
Change | % | FX effects*2) | |||||
(USD/JPY) | JPY 107.7 | JPY 107.7 | |||||
Non-life : North America | 69.0 | 72.4 | 3.3 | 4.9% | 5.0% | ||
A&H | 69.2 | 77.6 | 8.4 | 12.3% | 12.3% | ||
International | 57.3 | 66.2 | 8.8 | 15.5% | 15.6% | ||
Total | 195.6 | 216.4 | 20.7 | 10.6% | 10.7% | ||
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- Loss Ratio by Segment*1
FY2019 | FY2020 | ||
2Q | 2Q | Change | |
Results | Results | ||
Non-life : North America | 61.0% | 87.6% | 26.6pt |
A&H | 78.5% | 79.0% | 0.5pt |
International | 47.6% | 49.6% | 2.0pt |
Total | 64.9% | 73.8% | 8.9pt |
*1: Denominator used is net premiums earned
*2: Excluding FX effects due to yen conversion
19
FY2020 Projections
Assumptions used for | |||
FY2020 Projections | |||
FX Rate | Nikkei Stock Average | ||
USD/JPY | |||
Original Projections (Announced in Aug.) | 108.83 yen | 18,917 yen | |
(End of Mar. 2020 rate and stock avg.) | |||
Revised Projections | 105.80 yen | 23,185 yen | |
(End of Sept. 2020 rate and stock avg.) | |||
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 20 |
Domestic Non-Life: TMNF
Consolidated Domestic Life
Domestic
Non-Life
International
Net income was revised downward by ¥4.0bn from August projection to ¥155.0bn mainly due to impairment losses on affiliate equities, although COVID-19 Impacts will decrease.
Business unit profit was revised upward by ¥15.0bn from August projection to ¥138.0bn largely due to the reduced COVID-19 Impacts.
(billions of JPY) | - | |||||||||
FY2020 Projections | ||||||||||
Original | Rivised | Difference | ||||||||
COVID-19 | Except | COVID-19 | Except | |||||||
(① ) | (④) | - | ||||||||
Impacts | COVID-19 | Impacts | COVID-19 | (④ ①) | ||||||
(②) | (③=①-②) | (⑤) | (⑥=④ ⑤) | |||||||
- | ||||||||||
Underwriting profit/loss | 67.0 | -24.0 | 91.0 | 74.0 | -22.5 | 96.5 | 7.0 | |||
(Underwriting profit/loss: excluding provision/reversal of | 100.8 | -8.0 | 108.9 | 101.3 | 1.5 | 99.7 | 0.5 | |||
catastrophe loss reserves) | ||||||||||
Net premiums written (Private insurance) | 1,966.1 | -38.8 | 2,005.0 | 1,968.5 | -48.7 | 2,017.2 | 2.4 | - | ||
Net premiums earned (Private insurance)*1 | 1,935.2 | -34.5 | 1,969.7 | 1,958.3 | -36.3 | 1,994.7 | 23.1 | |||
Net incurred losses (Private insurance)*2 | -1,152.9 | 33.5 | -1,186.5 | -1,185.6 | 53.4 | -1,239.0 | -32.7 | |||
Natural catastrophe losses | -55.0 | #VALUE! | -55.0 | -80.0 | #VALUE! | -80.0 | -25.0 | |||
Provision/Reversal of foreign currency | - | #VALUE! | #VALUE! | 2.9 | #VALUE! | 2.9 | 2.9 | |||
denominated outstanding claims reserves | ||||||||||
Other than above | -1,097.9 | 33.5 | -1,131.5 | -1,108.6 | 53.4 | -1,162.0 | -10.7 | |||
Business expenses (Private insurance) | -649.9 | 7.3 | -657.4 | -636.8 | 15.9 | -652.8 | 13.0 | |||
Provision/Reversal of catastrophe loss reserves | -33.8 | -15.9 | -17.9 | -27.3 | -24.1 | -3.2 | 6.4 | |||
Auto | 7.5 | -19.3 | 26.9 | -4.8 | -32.5 | 27.7 | -12.3 | |||
Fire | -30.6 | -0.1 | -30.4 | -11.2 | 5.9 | -17.1 | 19.4 | - | ||
Provision/Reversal for nat-cat underwriting reserves | -12.6 | #VALUE! | -12.6 | -8.5 | #VALUE! | -8.5 | 4.1 | |||
Provision/Reversal of underwriting result for the first year*3 | -18.9 | -14.6 | -4.3 | -28.1 | -31.4 | 3.3 | -9.1 | |||
Net investment income (loss) and other | 146.2 | -7.0 | 153.2 | 144.9 | -4.8 | 149.7 | -1.3 | |||
Underwriting Profit
Revised upward by ¥7.0bn from August projection to ¥74.0bn mainly due to the following factors:
- Increase in net premiums earned and temporary
fall in business expenses
- Upward revision of net incurred losses due to an increase in natural catastrophes, large losses, etc.
Net Investment Income and Other
Revised downward by ¥1.3bn from August projection to ¥144.9bn mainly due to the following factors:
- Downward revision to gains/losses on sales of securities and gains/losses on derivatives (by -¥2.8bn and -¥2.5bn respectively)
- Upward revision of recovery from private equities
Extraordinary gains/losses:
- Revised downward by ¥11.9bn from August projection to -¥18.8bn mainly due to impairment losses on affiliate equities
Ordinary profit/loss | 214.0 | -31.0 | 245.0 | 222.0 | -27.4 | 249.4 | 8.0 | - | |
Extraordinary gains/losses | -6.9 | #VALUE! | -6.9 | -18.8 | #VALUE! | -18.8 | -11.9 | ||
Net income/loss | 159.0 | -23.0 | 182.0 | 155.0 | -20.7 | 175.7 | -4.0 | ||
Business unit profit | 123.0 | -1.0 | 124.0 | 138.0 | 15.0 | 123.0 | 15.0 | ||
*1 | Excluding provision for nat-cat underwriting reserves | - | |||||||
*2 | Including loss adjustment expenses |
*3 provision for the general underwriting reserves excluding provision for unearned premiums
(Notes)
- Plus and minus of the figures in the above table correspond to positive and negative to profit respectively
- Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance
Net Income
- Revised downward by ¥4.0bn from August projection to ¥155.0bn due to the above factors, etc.
Business Unit Profit
- Revised upward by ¥15.0bn from August projection to ¥138.0bn as other extraordinary gains/losses are excluded from net income
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 21 |
Domestic Life: TMNL
Consolidated Domestic Life
Domestic
Non-Life International
Net income was revised upward by ¥6.0bn from August projection to ¥47.0bn due to gains on sales of overseas bonds, a fall in hedging cost, etc.
No change was made to business unit profit projected in August mainly because there had been no material change in yen interest rates.
(billions of JPY)
FY2020 Projections | ||||||||
Original | COVID-19 | Except | Revised | COVID-19 | Except | Difference | ||
(①) | Impacts | COVID-19 | (④) | Impacts | COVID-19 | (④-①) | ||
(②) | (③=①-②) | (⑤) | (⑥=④-⑤) | |||||
New policies ANP | 38.0 | -5.0 | 43.0 | 38.0 | -5.0 | 43.0 | - | |
In-force policies ANP | 809.0 | 804.0 | -5.0 | 809.0 | ||||
Ordinary income | 945.0 | 950.0 | ||||||
Insurance premiums and other | 836.0 | 836.0 | ||||||
Net income | 41.0 | 1.0 | 40.0 | 47.0 | 3.0 | 44.0 | 6.0 | |
Ordinary profit | 52.0 | 60.0 | ||||||
(-) Capital gains / losses | -8.0 | -4.0 | ||||||
(-)Non-recuming income / losses | 0.0 | 0.0 | ||||||
Core operating profit | 61.0 | 0.0 | 61.0 | 65.0 | 2.0 | 63.0 | 4.0 | |
Increase in MCEV* | 164.0 | -11.0 | 175.0 | 164.0 | -11.0 | 175.0 | - | |
value of new business + | 71.0 | -11.0 | 82.0 | 71.0 | -10.0 | 81.0 | - | |
Existing business contribution | ||||||||
* Excluding capital transaction |
- New Policies ANP
- No change to August projection given support provided by the New Product although COVID-19 Impacts remain
- Net Income
- Upward revision by ¥6.0bn from August projection to ¥47.0bn mainly due to the following factors:
- Gains on sales of European bonds, private equities, etc.
- Fall in overall provisions due to strong sales of the New Product that requires smaller underwriting reserves while no change is made to projected top- line results
- Fall in hedging cost due to the contraction of interest rate differentials between Japan and overseas
- Business Unit Profit (Increase in MCEV)
- No change to August projection given that there has been no material change to interest rates and the business is progressing as planned
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 22 |
International 1: Net Premiums Written
Consolidated Domestic Life
Domestic
Non-Life International
NPW are expected to almost move sideways YoY declining 0.5% on a local currency basis as growth measures in each line offset COVID-19 Impacts (approx. -¥70.0bn). On a non-local currency basis, NPW are expected to fall by 6.9% due to the impact of the further strengthening of the yen (-¥112.0bn).
-6.9%
(billions of JPY)
-0.5%
1,741.6 | 1,733.0 | |||||||
+1.8% | ||||||||
(+Approx. 32.0) | -Approx. 4.0% | +1.7% | ||||||
(-Approx. 70.0) | (+Approx. 30.0) | |||||||
1,621.0 | ||||||||
-6.4% | ||||||||
(-Approx. 112.0) | ||||||||
FY2019 result | Increase/decrease | COVID-19 | Increase/decrease | FY2020 projection | Impact of FX rate | FY2020 projection | ||
factor (1) | Impacts | factor (2) | (revised) | (revised) | ||||
(FY2019 vs | (May projection* vs | (local currency basis) | ||||||
May projection*) | revised projection) |
[Increase/decrease factor (1)
(FY2019 vs May projection*)]
Announced at the May conference call presentation (see p.25)
Revised projection
[Increase/decrease factor (2) (May projection* vs revised projection)]
- North America (+approx. ¥20.0bn)
- All three North American companies are expected to implement the rate increases exceeding the plan in their main business lines.
- Europe, Middle East & Africa (+approx. ¥10.0bn)
- Europe's rate environment is expected to keep improving.
* Excluding COVID-19 impacts | 23 | |
Copyright (c) 2020 Tokio Marine Holdings, Inc. |
International 1: Net Premiums Written | Consolidated | ||||||||||
Domestic | |||||||||||
Non-Life | |||||||||||
(billions of JPY, except for %) | |||||||||||
FY2020 Projections | |||||||||||
FY2019 | Pre COVID-19 | ||||||||||
Results | Basis | Projections | |||||||||
(Announced in | (b) | YoY | (Ref.) | ||||||||
May) | |||||||||||
YoY % | |||||||||||
As of end- | As of end- | As of end- | |||||||||
(Excluding | |||||||||||
Applied FX rate | Dec. 2019 | Mar. 2020 | Sep. 2020 | ||||||||
Change | % | FX effects*4) | |||||||||
(USD/JPY) | JPY 109.5 | JPY 108.8 | JPY 105.8 | ||||||||
North America*1 | 1,124.0 | 1,147.0 | 1,098.0 | - 26.0 | - 2.3% | 1.2% | |||||
Philadelphia | 369.2 | 368.0 | 340.0 | - 29.2 | - 7.9% | - 4.5% | |||||
Delphi | 278.2 | 287.0 | 281.0 | 2.8 | 1.0% | 4.7% | |||||
TMHCC | 399.1 | 417.0 | 404.0 | 4.9 | 1.2% | 4.8% | |||||
Europe, Middle East | 196.1 | 155.0 | 166.0 | - 30.1 | - 15.3% | - 7.6% | |||||
& Africa*2 | |||||||||||
South & | 136.0 | 111.0 | 98.0 | - 38.0 | - 27.9% | 4.2% | |||||
Central America | |||||||||||
Asia & Oceania | 184.5 | 186.0 | 168.0 | - 16.5 | - 8.9% | - 4.1% | |||||
Total Non-Life*3 | 1,649.5 | 1,599.0 | 1,530.0 | - 119.5 | - 7.2% | - 0.8% | |||||
Life | 92.0 | 95.0 | 91.0 | - 1.0 | - 1.1% | 5.6% | |||||
Total | 1,741.6 | 1,694.0 | 1,621.0 | - 120.6 | - 6.9% | - 0.5% | |||||
Domestic Life
International
YoY %
(Excl. COVID-19 Impacts)
+4.9%
YoY %
(Excl. COVID-19 Impacts)
+3.8%
*1: North American figures include European business of TMHCC, but do not include North American business of TMK.
*2: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.
*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.
*4: Excluding the FX impact for conversion to the Japanese yen.
Yen's appreciation impact
-¥112.0 bn
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 24 |
FY2020 Profits (May projection, Pre COVID-19 Basis) (NPW) | Repost of conference call |
presentation on May 20 | |
NPWs by Business Domain (billions of JPY)
- NPWs are projected to grow 1.8% YoY on a local |
currency basis thanks to factors such as the execution of |
FY2019 | FY2020 | |||||
Profits | ||||||
Results | YoY | |||||
(Pre COVID-19 Basis) | ||||||
As of end- | As of end- | |||||
Applied FX rate | Dec. 2019 | Mar. 2020 | Change | % | ||
(USD/JPY) | JPY 109.5 | JPY 108.8 | ||||
North America*1 | 1,124.0 | 1,147.0 | 22.9 | 2.0% | ||
Philadelphia | 369.2 | 368.0 | - 1.2 | - 0.3% | ||
Delphi | 278.2 | 287.0 | 8.7 | 3.2% | ||
TMHCC | 399.1 | 417.0 | 17.8 | 4.5% | ||
Europe & Middle East & | 196.1 | 155.0 | - 41.1 | - 21.0% | ||
Africa*2 | ||||||
South & | 136.0 | 111.0 | - 25.0 | - 18.4% | ||
Central America | ||||||
Asia & Oceania | 184.5 | 186.0 | 1.4 | 0.8% | ||
Total Non-Life*3 | 1,649.5 | 1,599.0 | - 50.5 | - 3.1% | ||
Life | 92.0 | 95.0 | 2.9 | 3.3% | ||
Pure | - | - | - | - | ||
Total | 1,741.6 | 1,694.0 | - 47.6 | - 2.7% | ||
(Ref.) YoY (Excluding FX effects)*4
2.8%
0.3%
3.8%
5.2%
-
11.7%
6.3%
7.6%
1.3%
10.9%
-
1.8%
growth measures in each business and rate increases |
but are projected to decrease 2.7% YoY on the Japanese |
yen basis due to the appreciation of the yen (-¥78.1bn) |
Major Factors of Changes |
North America
- Philadelphia: Projected to be flat as the reduction caused by the underwriting practice focusing on profitability will be offset by rate increases for renewal books, and so on
- Delphi: Projected to grow due to the expanded underwriting of non-life insurance
- TMHCC: Projected to increase due to the contribution of a business purchased as a bolt-on acquisition, in addition to the growth in each segment
Europe, Middle East & Africa(*)
- Projected to decline due to the run-off of the company business in Europe and an increase in reinsurance to stabilize profitability
- Including the impact (-¥12.7bn) of the change in management accounting principles on Hollard. There is no impact on earnings
South & Central America
- Projected to decline due to the impact of the stronger yen, although the underwriting of products other than auto insurance will be expanded
Asia & Oceania
- Projected to increase due to factors such as the expanded underwriting of auto insurance in India and Thailand
*1 North American figures include European and Reinsurance businesses of TMHCC, but not include North American business of TMK
*2 Figures of "Europe & Middle East & Africa" include North American business of TMK, but not include European and Reinsurance businesses of TMHCC *3 Total Non-Life figures include some life insurance figures of composite overseas subsidiaries
*4 Excluding FX effects due to yen conversion
Life Insurance
- Projected to increase due to factors such as an increase in sales in Thailand and India
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 25 |
International 2: Business Unit Profits
Consolidated Domestic Life
Domestic
Non-Life International
Business Unit Profits was revised upward by ¥8.0bn from August projection to ¥75.0bn mainly driven by improvement of COVID-19 impacts (approx. +¥6.0bn) and a decrease in natural catastrophes (approx. +¥5.0bn)
179.5 | 177.0 | (billions of JPY) | ||||||||||||||||||||
-2.5 | ||||||||||||||||||||||
+8.0 | ||||||||||||||||||||||
67.0 | 75.0 | |||||||||||||||||||||
-Approx.110.0 | +Approx. 6.0 | +Approx. 8.0 | -Approx. 6.0 | |||||||||||||||||||
FY2019 result | Increase/decrease | FY2020 | COVID-19 | FY2020 | COVID-19 | Increase/decrease | Impact of | FY2020 projection | ||||||||||||||
factor (1) | profits | Impacts | projection | Impacts | factor (2) | FX rate | (revised) | |||||||||||||||
(FY2019 vs May projection*) | (May projection*) | (August projection) | (August projection) | (August projection vs | ||||||||||||||||||
revised projection) | ||||||||||||||||||||||
Revised projection | ||||||||||||||||||||||
May projection* | August projection | |||||||||||||||||||||
[Increase/decrease factor (1)
(FY2019 vs May projection*)]
Announced at the May conference call presentation (see p.28)
[Increase/decrease factor (2) (August projection vs revised projection)]
- Common item in all segments (upward revision)
- Expected approx. ¥5.0bn fall in natural catastrophes compared with the August projection
- North America (upward revision)
- Delphi's underwriting profit is expected to improve in life and non-life segments
- Life (downward revision)
- Impact of changes to managerial accounting rules in Singapore Life (-¥2.5bn)
* Excluding COVID-19 impacts | 26 | |
Copyright (c) 2020 Tokio Marine Holdings, Inc. |
International 2: Business Unit Profits
Consolidated Domestic Life
Domestic
Non-Life International
(billions of JPY, except for %) | ||||||||||||
FY2020 Projections | ||||||||||||
FY2019 | Pre COVID-19 | Original (a) | ||||||||||
Results | Basis | (Announced in | Projections | |||||||||
(Announced in | (b) | YoY | ||||||||||
August) | (Ref.) | |||||||||||
May) | ||||||||||||
COVID-19 | Difference | YoY % | ||||||||||
As of end- | As of end- | As of end- | As of end- | |||||||||
Impacts | (b-a) | (Excluding | ||||||||||
Applied FX rate | Dec. 2019 | Mar. 2020 | Mar. 2020 | Sep. 2020 | ||||||||
Change | % | FX effects*4) | ||||||||||
(USD/JPY) | ||||||||||||
JPY 109.5 | JPY 108.8 | JPY 108.8 | JPY 105.8 | |||||||||
North America*1 | 147.2 | 149.0 | 92.0 | - 55.2 | - 37.5% | - 35.2% | ||||||
Philadelphia | 27.0 | 40.0 | 31.0 | 4.0 | 14.8% | 18.8% | ||||||
Delphi | 76.5 | 62.0 | 38.0 | - 38.5 | - 50.3% | - 48.6% | ||||||
TMHCC | 41.9 | 44.0 | 21.0 | - 20.9 | - 49.9% | - 48.1% | ||||||
Europe, Middle East | 2.2 | 8.0 | - 15.0 | - 17.2 | - | - | ||||||
& Africa*2 | ||||||||||||
South & | 10.8 | 6.0 | 9.0 | - 1.8 | - 16.7% | 20.5% | ||||||
Central America | ||||||||||||
Asia & Oceania | 16.6 | 11.0 | 4.0 | - 12.6 | - 75.9% | - 74.6% | ||||||
Total Non-Life*3 | 179.0 | 176.0 | 82.0 | - 97.0 | - 54.2% | - 51.5% | ||||||
Life | 12.9 | 4.0 | - 3.0 | - 15.9 | - | - | ||||||
Pure | - | 9.0 | 9.0 | 9.0 | - | - | ||||||
Total | 179.5 | 177.0 | 67.0 | - 110.0 | 75.0 | 8.0 | - 104.5 | - 58.2% | - 55.6% | |||
*1: North American figures include European business of TMHCC, but do not include North American business of TMK. | ||||||||||||
*2: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC. |
*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries. | |
*4: Excluding the FX impact for conversion to the Japanese yen. | 27 |
Copyright (c) 2020 Tokio Marine Holdings, Inc. | |
FY2020 Profits (May projection, Pre COVID-19 Basis) (BUP) | Repost of conference call |
presentation on May 20 | |
BUPs by Business Domain (billions of JPY)
- Projected to grow 1.9% YoY on a local currency basis due to |
the new consolidation of Pure, a reaction to provisions for |
FY2019 | FY2020 | |||||
Results | Profits | YoY | ||||
(Pre COVID-19 Basis) | ||||||
As of end- | As of end- | |||||
Applied FX rate | Dec. 2019 | Mar. 2020 | Change | % | ||
(USD/JPY) | ||||||
JPY 109.5 | JPY 108.8 | |||||
North America*1 | 147.2 | 149.0 | 1.7 | 1.2% | ||
Philadelphia | 27.0 | 40.0 | 12.9 | 48.0% | ||
Delphi | 76.5 | 62.0 | - 14.5 | - 19.0% | ||
TMHCC | 41.9 | 44.0 | 2.0 | 5.0% | ||
Europe & Middle East & | 2.2 | 8.0 | 5.7 | 247.8% | ||
Africa*2 | ||||||
South & | 10.8 | 6.0 | - 4.8 | - 44.6% | ||
Central America | ||||||
Asia & Oceania | 16.6 | 11.0 | - 5.6 | - 34.1% | ||
Total Non-Life*3 | 179.0 | 176.0 | - 3.0 | - 1.7% | ||
Life | 12.9 | 4.0 | - 8.9 | - 69.0% | ||
Pure | - | 9.0 | 9.0 | - | ||
Total | 179.5 | 177.0 | - 2.5 | - 1.4% | ||
(Ref.) YoY (Excluding FX effects)*4
1.9%
49.0%
-
18.5%
5.7%
298.9%
- 27.5%
-
29.6%
1.1% - 67.2%
-
1.9%
reserves in the previous fiscal year, and so on, although there |
are negative factors such as the assumption that natural |
catastrophes will be at the same level as the average year |
(-¥18.6bn) and a drop in investment income; projected to |
decline ¥2.5bn on the Japanese yen basis due to the |
appreciation of the yen (-¥5.7bn) |
- Main Factors of Change
North America
- Philadelphia: Despite the above-mentioned negative factors, profits will grow due to factors such as a reaction to the past reserve provision in FY2019 (+¥23.5bn)
- Delphi: Profits are expected to drop due to factors such as a smaller investment income and the worsening loss ratio of long tail products caused by the lower discount rate
- TMHCC: Despite the above-mentioned negative factors, profits are projected to rise thanks to factors such as a reaction to the reserve provision in FY2019 for crop insurance and medical stop-loss
Europe, Middle East & Africa
- In Europe, profits will rise thanks to the improved profitability of Lloyd's and a decline in large losses, despite the above- mentioned negative factors
South & Central America
- Profits are projected to shrink due to factors such as the worsening loss ratio in Brazil caused by the intensifying competition and lower income yield
*1 North American figures include European and Reinsurance businesses of TMHCC, but not include North American business of TMK
*2 Figures of "Europe & Middle East & Africa" include North American business of TMK, but not include European and Reinsurance businesses of TMHCC *3 Total Non-Life figures include some life insurance figures of composite overseas subsidiaries
*4 Excluding FX effects due to yen conversion
Asia & Oceania
- Profits are expected to decline due to factors such as the net incurred losses of nat-cat at the level equivalent to the average year and a reaction to equity sales gains posted in Thailand in FY2019
Life Insurance
Copyright (c) 2020 Tokio Marine Holdings, Inc.
Profits are projected to decline due to factors such as a reaction to the higher stock prices and lower interest rates in
FY2019 in Singapore (-¥8.1bn)
28
Economic Solvency Ratio
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 29 |
Economic Solvency Ratio (ESR) Target Range
- ESR is calculated using capital model based on 99.95% VaR (equivalent to AA credit rating).
- The target range is set at 150 to 210% from the viewpoint of soundness and profitability.
210%
Target
Range
150%
100%
Implementation of
Business investment, and/or
Additional risk-taking, and/or
Shareholder return
consideration of
Business investment, and/or Additional risk-taking, and/or Shareholder return
g to recover capital level through accumulation of profits
of risk level by reducing risk-taking activities
risking
Consideration of capital increase of shareholder return policy
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 30 |
ESR and Sensitivity
- ESR as of Sept. 30, 2020 was 163% (within the target range) reflecting profit contributions in 1H, rises in stock prices and interest rates, etc., and shareholder return.
ESR*1
163% | |||||||||||||
153% | |||||||||||||
Net | Net | ||||||||||||
asset | asset | ||||||||||||
value | value | (Reference) | |||||||||||
Risk | Risk | ||||||||||||
ESR after deducting | |||||||||||||
2.7 | 4.2 | 4.3 | restricted capital : | ||||||||||
trillion | 2.6 | trillion | 117% | ||||||||||
trillion | yen | trillion | yen | ||||||||||
yen | yen | ||||||||||||
Mar. 31, 2020 | Sept. 30, 2020 | ||||||||||||
Nikkei Stock | ¥23,185 | ||||||||||||
¥18,917 | |||||||||||||
Average | |||||||||||||
0.44% | 30Yr JPY | 0.60% | |||||||||||
interest rate | |||||||||||||
2.72% | Credit spread | 1.36% |
ESR Sensitivity (based on parallel shift)
Sept. 30, 2020 | 163% | ||||||||||||
Stock price | +30% | 168% | |||||||||||
-30% | 157% | ||||||||||||
Interest rate | +50bp | ||||||||||||
164% | |||||||||||||
-50bp | 155% | ||||||||||||
FX rate | 10% | 164% | |||||||||||
appreciation | |||||||||||||
10% | 162% | ||||||||||||
depreciation | Of this, sensitivity | ||||||||||||
Credit | -50bp | ||||||||||||
169% | |||||||||||||
spread*2 | +50bp | 157% | to overseas net | ||||||||||
asset value: ±3pt | |||||||||||||
Stock price: Continue to sell business-related equities
Interest rate: Control the impact of interest rate fluctuations through ALM
FX rate: Limited impact on ESR
Credit: Allow risk-taking within the risk limits
*2: Due to different consolidated accounting periods adopted by overseas subsidiaries(refer to *1), the periods of credit spread fluctuations reflected on ESR differ.
4.0%
Factors changing net asset value
- 1H adjusted net income contribution
- Higher stock prices/interest
rates | |
Shareholder return, | etc. |
Factors changing risk
- Higher interest rates
- Lower credit spread volatility, etc.
2.72% | Tightening (-1.36pt) | ||||||
3.0% | |||||||
2.0% | 1.50% | ||||||
0.94% | |||||||
1.0% | 1.36% | ||||||
Widening (+0.56pt) | |||||||
*1: Net asset value of overseas subsidiaries shows the balance as of three months earlier (Dec. 31, 2019 and June 30, 2020).
Copyright (c) 2020 Tokio Marine Holdings, Inc.
31/12/19 | 31/3/20 | 30/6/20 | 30/9/20 |
(2Q results overseas) | (2Q results Japan) 31 |
Reference
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 32 |
Definition of Terms①
Adjusted Net Income (Group total)
Enhancing transparency and comparability /
Linking with shareholder return
- For the Group total, "Adjusted Net Income" based on financial accounting is used from the perspective of enhancing transparency and comparability as well as linking with shareholder return
- Profit indicator for the Group total as the base for calculating capital efficiency (adjusted ROE) and source of dividends
Business Unit Profits
Creating long-term corporate value
- For each business domain, "Business Unit Profits" is used from the perspective of accurately assessing corporate value including economic value, etc. for the purpose of long- term expansion
- Use MCEV (market-consistent embedded value) for domestic life, which reflects the economic value of the business more accurately
Domestic non-life | Gains or losses on sales of |
business-related equities | |
Provision for reserves of capital | |
nature, etc. | |
Domestic life | |
Other than the above | Amortization of goodwill and |
other intangible fixed assets | |
Adjusted Net Income
Included
Excluded
Adjust the financial accounting
basis net income
Excluded
Business Unit Profits
Excluded
Excluded
Increase in MCEV
during the current fiscal year
Excluded
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 33 |
Definition of Terms②
Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE
Adjusted | Net income | Provision for | ||
Net | = | + | catastrophe loss | |
(consolidated)*2 | ||||
Income | ||||
reserves*3 | ||||
Provision for | Provision for | Gains or losses on sales or | |||
+ | contingency | + | price fluctuation | - | valuation of ALM*4 bonds and |
reserves*3 | reserves*3 | interest rate swaps |
Amortization of
-
goodwill and other
intangible fixed assets
Gains or losses on sales or
- valuation of fixed assets and - business investment equities
Other extraordinary
gains / losses, valuation
allowances, etc.
Adjusted | = | Net assets | + | Catastrophe | + | Contingency | + | Price fluctuation | - | Goodwill and other |
Net Assets | (consolidated) | loss reserves | reserves | reserves | intangible fixed assets | |||||
Adjusted | = | Adjusted Net | ÷ | Adjusted Net Assets |
ROE | Income | (average balance basis) | ||
Definition of Business Unit Profits
*1 Each adjustment is on an after-tax basis.
*2 Net income attributable to owners of the parent in the consolidated financial statements.
*3 In case of reversal, it is subtracted from the equation.
*4 ALM = Asset Liability Management. Excluded since it is a counter-balance item of ALM related liabilities.
*5 For some of the life insurance companies, Business Unit Profit is calculated using the definition in Other businesses (head office expenses, etc. are deducted from profits).
*6 EV: Embedded Value. An index that shows the sum of the net present value of profits to be gained from policies in-force and the net asset value.
- Non-lifeinsurance business
Business | Provision for | Provision for price | ||||
Unit | = | Net income | + | catastrophe loss | + | fluctuation |
Profits*1 | reserves*3 | reserves*3 | ||||
Gains or losses on sales or | Gains or losses on sales or | Other extraordinary | |||
valuation of fixed assets, | |||||
- | valuation of ALM*4 bonds and | - | - | gains / losses, valuation | |
business-related equities and | |||||
interest rate swaps | allowances, etc. | ||||
business investment equities | |||||
- Life insurance business*5
Busines | Increase in EV*6 | Capital | ||
s Unit | = | during the current | - | transactions such |
Profits*1 | fiscal year | as capital increase |
- Other businesses
Net income determined in accordance with financial accounting principles
Definition of Net Asset Value
Net | Net assets | Catastrophe | Contingency | Price fluctuation | Goodwill and | Planned | Value of life | |||||||||
Asset | = | + | + | + | - | other intangible | - | distribution to | + | insurance policies | + | Others | ||||
Value*1 | (consolidated) | loss reserves | reserves | reserves | fixed assets | shareholders | in-force | |||||||||
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 34 |
Reconciliation of Adjusted Net Income (Group Total) : 2Q FY2020 Results
Adjusted Net Income for 2Q FY2020 fell ¥19.1bn YoY to ¥156.2bn
- Reconciliation*1
Note: Factors positive to profit are shown with a plus sign
(billions of JPY)
FY2019 FY2020
2Q 2Q
YoY
Provision for catastrophe loss reserves: |
Results Results
Change
Increased mainly due to a drop in net incurred |
Net income attributable to owners of the parent
(consolidated)
116.6 62.3 -54.2
losses relating to natural catastrophes in Domestic |
Non-life (increases reconciling amount) |
Provision for catastrophe loss reserves*2 | +26.3 | +31.6 | 5.2 |
Provision for contingency reserves*2 | +0.6 | +0.7 | 0.0 |
Provision for price fluctuation reserves*2 | +2.7 | +3.5 | 0.8 |
Gains or losses on sales or valuation of ALM*3 bonds | -1.4 | +1.6 | 3.1 |
and interest rate swaps | |||
Gains or losses on sales or valuation of fixed assets | +0.3 | +1.3 | 0.9 |
and business investment equities | |||
Amortization of goodwill and other intangible fixed | +36.7 | +44.8 | 8.1 |
assets | |||
Other extraordinary gains/losses, | -6.6 | +10.0 | 16.6 |
valuation allowances, etc. | |||
Adjusted Net Income | 175.4 | 156.2 | -19.1 |
*1 Each adjustment is on an after-tax basis.
*2 In case of reversal, it is subtracted from the equation
*3 ALM: Asset Liability Management. Excluded since it is counter balance of ALM related liabilities
- Gains or losses on sales or valuation of ALM bonds and interest rate swaps:
- Increased mainly due to a reaction to the deduction of gains on sales of domestic bonds in 2Q FY2019 at TMNF (increases reconciling amount)
- Amortization of goodwill and other intangible fixed assets:
- Increased mainly due to the consolidation of Pure (increases reconciling amount)
- Other extraordinary gains or losses, valuation allowances, etc.:
- Increased mainly due to deductions of sales and valuation losses on equities of overseas subsidiaries, etc. (increases reconciling amount)
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 35 |
Reconciliation of Adjusted Net Income (Group Total): FY2020 Projection
Adjusted net income was revised upward by ¥ 22.0bn from August projection to ¥332.0bn. Adjusted ROE is projected at 9.9%, up 0.5pt from August projection.
• | Reconciliation*1 | (billions of JPY) | ||||
Note: Factors positive to profits are showed | ||||||
with a "plus" sign | ||||||
FY2019 | FY2020 Projections | |||||
Results | Original (a) | Revised (b) | (b)-(a) | |||
Net income attributable to owners of the parent | 259.7 | 175.0 | 200.0 | 25.0 | ||
(consolidated) | ||||||
Provisions for catastrophe loss reserves: | ||||||
Provision for catastrophe loss reserves*2 | -49.7 | +27.0 | +21.0 | -6.0 |
Provision for contingency reserves*2 | +0.8 | +0.0 | +0.0 | - | |
Provision for price fluctuation reserves*2 | +6.9 | +7.0 | +7.0 | - | |
Gains or losses on sales or valuation of ALM*3 bonds | -12.5 | +0.0 | +1.0 | - | |
and interest rate swaps | |||||
Gains or losses on sales or valuation of fixed assets | +8.5 | +1.0 | +1.0 | - | |
and business investment equities | |||||
Amortization of goodwill and other intangible fixed | +77.7 | +92.0 | +88.0 | -3.0 | |
assets | |||||
Other extraordinary gains/losses, | -4.8 | +4.0 | +10.0 | 5.0 | |
valuation allowances, etc. | |||||
Adjusted Net Income | 286.7 | 310.0 | 332.0 | 22.0 | |
Adjusted ROE | 7.5% | 9.4% | 9.9% | +0.5pt |
*1: Each adjustment is on an after-tax basis | ||||
*2: In case of reversal, it is subtracted from the equation |
*3: ALM: Asset Liability Management. Excluded since it is counter balance of ALM related liabilities
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- The amount of catastrophe loss reserves taken down will increase as net incurred losses relating to natural catastrophes are expected to increase in Domestic Non-life (decreases reconciling amount)
- Other extraordinary gains/losses, valuation allowances, etc.:
- Deductions of losses on sales and valuation of equities of overseas subsidiaries, etc. (increases reconciling amount)
36
Adjusted Net Assets / Adjusted ROE
- Adjusted Net Assets*1
FY2019 | FY2020 Projections | ||||
Results | Original (a) | Revised (b) | (b)-(a) | ||
Net assets(consolidated) | 3,372.1 | 3,353.0 | 3,451.0 | 97.0 | |
Catastrophe loss reserves | +691.5 | +719.0 | +712.0 | -6.0 | |
Contingency reserves | +41.6 | +42.0 | +42.0 | - | |
Price fluctuation reserves | +85.1 | +92.0 | +92.0 | - | |
Goodwill and other intangible | -949.5 | -857.0 | -851.0 | +6.0 | |
fixed assets | |||||
Adjusted Net Assets | 3,240.9 | 3,350.0 | 3,448.0 | 98.0 | |
*1 Each adjustment is on an after-tax basis.
Copyright (c) 2020 Tokio Marine Holdings, Inc.
(billions of JPY)
- Adjusted ROE
FY2019 | FY2020 Projections | |||
Results | Original (a) | Revised (b) | (b)-(a) | |
Net income(consolidated) | 259.7 | 175.0 | 200.0 | 25.0 |
Net assets(consolidated)*2 | 3,473.1 | 3,362.0 | 3,411.0 | 48.0 |
Financial acccounting basis | 7.5% | 5.2% | 5.9% | 0.7pt |
ROE | ||||
*2 average balance basis | ||||
FY2019 | FY2020 Projections | |||
Results | Original (a) | Revised (b) | (b)-(a) | |
Adjusted Net Income | 286.7 | 310.0 | 332.0 | 22.0 |
Adjusted Net Assets*2 | 3,502.0 | 3,300.0 | 3,344.0 | 44.0 |
Adjusted ROE | 8.2% | 9.4% | 9.9% | 0.5pt |
*2 average balance basis |
37
Business Unit Profits: 2Q FY2020 Results
(billions of JPY) | |||||
FY2019 | FY2020 | ||||
Business Domain | 2Q | 2Q | |||
Results | Results | YoY | |||
Domestic Non-Life | 20.2 | 69.0 | 48.7 | ||
TMNF | 21.2 | 61.6 | 40.3 | ||
Domestic Life*1*2 | -51.4 | 145.6 | 197.1 | ||
TMNL | -51.4 | 145.6 | 197.1 | ||
International Insurance | 102.6 | 36.1 | -66.5 | ||
North America | 80.8 | 34.2 | -46.6 | ||
Philadelphia | 18.8 | 13.6 | -5.1 | ||
Delphi | 37.8 | 10.2 | -27.5 | ||
TMHCC | 21.6 | 8.0 | -13.6 | ||
Europe, Middle East & Africa | 4.2 | -7.7 | -11.9 | ||
South & Central America | 6.7 | 5.3 | -1.4 | ||
Asia & Oceania | 8.4 | 9.1 | 0.7 | ||
International Non-Life*3 | 101.9 | 42.4 | -59.4 | ||
International Life | 6.4 | -3.9 | -10.4 | ||
Pure | - | 3.9 | 3.9 | ||
Financial & General | 3.9 | 2.6 | -1.3 | ||
*1: Excluding capital transactions
*2: Simplified calculation method is applied for EV. The calculation is an unaudited basis
*3: International Non-Life figures include some life insurance figures of composite overseas subsidiaries
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 38 |
Reconciliation of Business Unit Profits
Domestic Non-life*1 (TMNF) | (billions of JPY) |
FY2019 | FY2020 | |||
2Q | 2Q | YoY | ||
Results | Results | |||
Net income for accounting purposes | 41.5 | 62.9 | 21.4 | |
Provision for catastrophe loss reserves*2 | +25.3 | +30.1 | 4.8 | |
Provision for price fluctuation reserves*2 | +2.0 | +2.1 | 0.1 | |
Gains or losses on sales or valuation of | -2.0 | +1.3 | 3.4 | |
ALM*3 bonds and interest rate swaps | ||||
Gains or losses on sales or valuation of | ||||
fixed assets, business-related equities and | -37.3 | -39.2 | -1.8 | |
business investment equities | ||||
Intra-group dividends | -11.5 | -23.4 | -11.8 | |
Other extraordinary gains/losses, | +3.4 | +27.6 | 24.2 | |
valuation allowances, etc | ||||
FY2019 | FY2020 Projection | ||||
Results | ① Original | ②Revised | ②-① | ||
Net income for accounting purposes | 169.9 | 159.0 | 155.0 | -4.0 | |
Provision for catastrophe loss reserves*2 | -47.0 | +24.9 | +20.3 | -4.6 | |
Provision for price fluctuation reserves*2 | +4.3 | +4.0 | +4.3 | 0.3 | |
Gains or losses on sales or valuation of | -12.6 | +0.4 | +1.1 | 0.7 | |
ALM*3 bonds and interest rate swaps | |||||
Gains or losses on sales or valuation of | |||||
fixed assets, business-related equities and | -41.7 | -54.9 | -54.1 | 0.8 | |
business investment equities | |||||
Intra-group dividends | -58.6 | -33.5 | -33.0 | 0.4 | |
Other extraordinary gains/losses, | +11.9 | +23.1 | +44.6 | 21.4 | |
valuation allowances, etc | |||||
Business Unit Profits | 21.2 | 61.6 | 40.3 | Business Unit Profits | 26.0 | 123.0 | 138.0 | 15.0 | |
- International Insurance*1
FY2019 | FY2020 | FY2020 | |||||
YoY | FY2019 | ||||||
2Q | 2Q | Results | ① Original | ②Revised | ②-① | ||
Results | Results | ||||||
Overseas subsidiaries | 105.9 | 32.8 | -73.1 | |
Net income for accounting purposes*4 | ||||
Difference with EV (Life) | +2.4 | +0.0 | -2.4 | |
Adjustment of non-controlling interests | -1.6 | -0.1 | +1.4 | |
Difference of subsidiaries covered | +1.3 | -0.6 | -1.9 | |
Other adjustments*5 | -5.4 | +4.0 | +9.4 | |
Business Unit Profits | 102.6 | 36.1 | -66.5 |
Overseas subsidiaries | 176.8 | 93.0 | 105.0 | 12.0 | |
Net income for accounting purposes*4 | |||||
Difference with EV (Life) | +8.1 | ||||
Adjustment of non-controlling interests | -2.5 | ||||
Difference of subsidiaries covered | +0.6 | ||||
Other adjustments*5 | -3.6 | ||||
Business Unit Profits | 179.5 | 67.0 | 75.0 | 8.0 | |
*1 | Each adjustment is on an after-tax basis. *2 Reversals are subtracted. *3 ALM = Asset Liability Management. Excluded since it is a counter-balance item of ALM related liabilities. | |
*4 | Since FY2020, figures have been changed to exclude purchase method adjustments such as amortization of intangible fixed assets and others. *5 Extraordinary gains/losses, head office expenses, etc. | 39 |
Copyright (c) 2020 Tokio Marine Holdings, Inc. | ||
Domestic Non-Life: TMNF P/L Projections
(billions of JPY)
FY2019 | FY2020 Projections | |||||
Results | ① Original | ②Revised | ||||
Difference | ||||||
(②-①) | ||||||
Underwriting profit/loss | 38.4 | 67.0 | 74.0 | 7.0 | ||
(Underwriting profit/loss: excluding provision/reversal of | -27.5 | 100.8 | 101.3 | 0.5 | ||
catastrophe loss reserves) | ||||||
Net premiums written (Private insurance) | 1,969.9 | 1,966.1 | 1,968.5 | 2.4 | ||
Net premiums earned (Private insurance)*1 | 1,917.2 | 1,935.2 | 1,958.3 | 23.1 | ||
Net incurred losses (Private insurance)*2 | -1,270.8 | -1,152.9 | -1,185.6 | -32.7 | ||
Natural catastrophe losses | -162.5 | -55.0 | -80.0 | -25.0 | ||
Provision/Reversal of foreign currency | 2.0 | - | 2.9 | 2.9 | ||
denominated outstanding claims reserves | ||||||
Other than above | -1,110.3 | -1,097.9 | -1,108.6 | -10.7 | ||
Business expenses (Private insurance) | -638.2 | -649.9 | -636.8 | 13.0 | ||
Provision/Reversal of catastrophe loss reserves | 66.0 | -33.8 | -27.3 | 6.4 | ||
Auto | 18.0 | 7.5 | -4.8 | -12.3 | ||
Fire | 41.5 | -30.6 | -11.2 | 19.4 | ||
Provision/Reversal for nat-cat underwriting reserves | -21.1 | -12.6 | -8.5 | 4.1 | ||
Provision/Reversal of underwriting result for the first year*3 | -10.9 | -18.9 | -28.1 | -9.1 | ||
Net investment income (loss) and other | 182.0 | 146.2 | 144.9 | -1.3 | ||
Ordinary profit/loss | 223.9 | 214.0 | 222.0 | 8.0 | ||
Extraordinary gains/losses | -12.6 | -6.9 | -18.8 | -11.9 | ||
Net income/loss | 169.9 | 159.0 | 155.0 | -4.0 | ||
*1 Excluding provision for nat-cat underwriting reserves | ||||||
*2 Including loss adjustment expenses |
*3 Provision for the general underwriting reserves excluding provision for unearned premiums
(billions of JPY) | ||||||||||
FY2019 | FY2020 Projections | |||||||||
Results | ① Original | ②Revised | ||||||||
Difference | ||||||||||
(②-①) | ||||||||||
Net investment income and other | 182.0 | 146.2 | 144.9 | -1.3 | ||||||
Net investment income | 220.7 | 177.9 | 179.1 | 1.1 | ||||||
Net interest and dividends income | 151.4 | 105.0 | 110.7 | 5.7 | ||||||
Interest and dividends | 189.2 | 141.3 | 145.5 | 4.2 | ||||||
66.5 | 57.7 | 53.8 | -3.8 | |||||||
Dividends from domestic stocks | ||||||||||
Dividends from foreign stocks | 63.0 | 36.8 | 39.2 | 2.4 | ||||||
Income from domestic bonds | 20.7 | 17.1 | 16.9 | -0.2 | ||||||
Income from foreign bonds | 4.1 | 2.6 | 3.3 | 0.6 | ||||||
Income from other domestic securities*4 | 2.1 | 0.1 | -0.3 | -0.4 | ||||||
Income from other foreign securities*5 | 20.8 | 16.1 | 20.8 | 4.7 | ||||||
Transfer of investment income on deposit | -37.8 | -36.3 | -34.7 | 1.5 | ||||||
premiums | ||||||||||
Net capital gains | 69.3 | 72.9 | 68.3 | -4.6 | ||||||
Gains/Losses on sales of securities | 110.6 | 80.2 | 77.4 | -2.8 | ||||||
-22.1 | -2.8 | -2.9 | -0.0 | |||||||
Impairment losses on securities | ||||||||||
-18.1 | -0.9 | -1.1 | -0.2 | |||||||
Impairment losses on domestic stocks | ||||||||||
-15.7 | -4.6 | -7.2 | -2.5 | |||||||
Gains/Losses on derivatives | ||||||||||
-3.5 | -0.0 | 0.1 | 0.1 | |||||||
Foreign exchange gains/losses | ||||||||||
0.5 | 0.3 | 0.5 | 0.2 | |||||||
Other investment income and expenses | ||||||||||
-0.3 | - | 0.3 | 0.3 | |||||||
Others | ||||||||||
Other ordinary income and expenses | -38.7 | -31.7 | -34.1 | -2.4 | ||||||
*4 Income from domestic securities excluding domestic stocks and domestic bonds. | ||||||||||
*5 Income from foreign securities excluding foreign stocks and foreign bonds. | ||||||||||
Copyright (c) 2020 Tokio Marine Holdings, Inc. | 40 |
Domestic Non-Life: NF Results
Underwriting profit increased by ¥6.0bn YoY to ¥2.1bn mainly due to a reduction in net incurred losses. Net investment income and other rose by ¥2.9bn YoY to ¥3.5bn mainly due to an increase in gains on sales of securities.
As a result of the above, net income grew by ¥5.8bn YoY to ¥3.3bn.
(billions of JPY) | ||||||
FY2019 | FY2020 | |||||
2Q | 2Q | COVID-19 | YoY | |||
Results | Results | |||||
Impacts | Change | |||||
Underwriting profit/loss | - 3.8 | 2.1 | 1.4 | 6.0 | ||
(Underwriting profit/loss: excluding provision/reversal | - 1.1 | 3.9 | 5.0 | |||
of catastrophe loss reserves) | ||||||
Net premiums written (Private insurance) | 67.7 | 66.9 | - 0.8 | |||
Net premiums earned (Private insurance)*1 | 64.8 | 66.3 | 1.5 | |||
Net incurred losses (Private insurance)*2 | - 43.2 | - 39.0 | 4.2 | |||
- 7.1 | - 5.5 | 1.6 | ||||
Natural catastrophe losses | ||||||
Other than above | - 36.1 | - 33.5 | 2.6 | |||
Business expenses (Private insurance) | - 22.8 | - 22.3 | 0.5 | |||
Provision/Reversal of catastrophe loss reserves | - 2.7 | - 1.7 | 0.9 | |||
- 1.3 | - 1.4 | - 0.0 | ||||
Fire | ||||||
Auto | - 0.7 | - 0.0 | 0.6 | |||
Provision/Reversal for nat-cat underwriting reserves | - | 0.0 | 0.0 | |||
Provision/Reversal of underwriting result for the first year*3 | 0.1 | - 1.1 | - 1.3 | |||
Net investment income (loss) and other | 0.6 | 3.5 | 0.0 | 2.9 | ||
Net investment income/loss | 0.8 | 3.7 | 2.8 | |||
2.2 | 2.1 | - 0.1 | ||||
Interest and dividends | ||||||
Gains/Losses on sales of securities | 0.1 | 2.6 | 2.4 | |||
Impairment losses on securities | - 0.3 | - 0.0 | 0.2 | |||
Gains/Losses on derivatives | - 0.4 | - 0.2 | 0.2 | |||
Ordinary profit/loss | - 3.8 | 5.2 | 9.0 | |||
Extraordinary gains/losses | 0.4 | - 0.5 | - 1.0 | |||
Net income/loss | - 2.5 | 3.3 | 1.0 | 5.8 | ||
*1 Excluding provision for nat-cat underwriting reserves | ||||||
*2 Including loss adjustment expenses |
*3 provision for the general underwriting reserves excluding provision for unearned premiums
Notes:
- Plus and minus of the figures in the above table correspond to positive and negative to profit respectively.
- Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance.
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- Underwriting Profit
¥6.0bn increase YoY to ¥2.1bn mainly due to the following factors
- Net premiums written (Private insurance):
- Increase in premiums ceded in fire
-
Net incurred losses (Private insurance):
Lower traffic accident frequency due to COVID-19 related stay at home policies
Decrease in natural catastrophes - Catastrophe loss reserves:
Takedown due to a rise in the W/P loss ratio in fire - Provision/Reversal of underwriting result for the first year:
- Increase due to a drop in net incurred losses in auto
- Underwriting result for the first year is underwriting reserve posted by deferring a profit for the first year of the contract to the following fiscal year.
- Net Investment Income and Other
- ¥2.9bn increase YoY to ¥3.5bn mainly due to an increase in gains on sales of business-related equities
- Net Income
- ¥5.8bn increase YoY to ¥3.3bn due to the above factors, etc.
41
Domestic Non-Life: NF Projections
Underwriting profit is projected to grow by ¥4.0bn YoY to ¥6.8bn mainly due to an decrease in net incurred losses relating to natural catastrophes.
Net investment income and other is projected to grow ¥13.1bn YoY to ¥16.7bn mainly due to an increase in gains on sales of securities.
Net income is projected to increase ¥12.3bn YoY to ¥16.0bn due to the factors above, etc.
(billions of JPY)
FY2019 | FY2020 Projections | ||||||
Results | Profit | Revised | Difference | ||||
(Pre COVID- | |||||||
(① ) | (②) | (②-①) | |||||
19 Basis) | |||||||
Underwriting profit/loss | 2.7 | 6.9 | 6.8 | 4.0 | |||
(Underwriting profit/loss: excluding provision/reversal of | - 0.2 | 11.7 | 7.4 | 7.7 | |||
catastrophe loss reserves) | |||||||
Net premiums written (Private insurance) | 131.7 | 134.1 | 132.7 | 1.0 | |||
Net premiums earned (Private insurance)*1 | 129.6 | 132.5 | 132.6 | 3.0 | |||
Net incurred losses (Private insurance)*2 | - 80.5 | - 73.7 | - 74.4 | 6.0 | |||
Natural catastrophe losses | - 12.1 | - 3.1 | - 6.5 | 5.6 | |||
Other than above | - 68.3 | - 70.6 | - 67.9 | 0.4 | |||
Business expenses (Private insurance) | - 45.3 | - 45.0 | - 45.0 | 0.3 | |||
Provision/Reversal of catastrophe loss reserves | 3.0 | - 4.7 | - 0.6 | - 3.6 | |||
Auto | - 2.7 | - 2.8 | - 2.8 | - 0.0 | |||
Fire | 2.7 | - 1.3 | 2.6 | - 0.0 | |||
Provision/Reversal for nat-cat underwriting reserves | - 1.8 | 0.1 | 0.0 | 1.8 | |||
Provision/Reversal of underwriting result for the first year*3 | - 2.1 | - 2.1 | - 5.7 | - 3.6 | |||
Net investment income (loss) and other | 3.6 | 12.9 | 16.7 | 13.1 | |||
Net investment income/loss | 4.0 | 13.3 | 17.0 | 13.0 | |||
4.7 | 4.2 | 4.0 | - 0.6 | ||||
Interest and dividends | |||||||
Gains/Losses on sales of securities | 3.1 | 11.1 | 14.9 | 11.8 | |||
Gains/Losses on derivatives | - 0.9 | - 0.7 | - 0.4 | 0.5 | |||
Ordinary profit/loss | 5.7 | 19.2 | 22.9 | 17.1 | |||
Extraordinary gains/losses | - 0.0 | - 0.5 | - 0.6 | - 0.6 | |||
Net income/loss | 3.7 | 13.4 | 16.0 | 12.3 | |||
Business unit profit | 0.8 | 9.2 | 6.3 | 5.5 | |||
*1 Excluding provision for nat-cat underwriting reserves | |||||||
*2 Including loss adjustment expenses |
*3 Provision for the general underwriting reserves excluding provision for unearned premiums
(Notes)
- Plus and minus of the figures in the above table correspond to positive and negative to profit respectively
- Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance
Copyright (c) 2020 Tokio Marine Holdings, Inc.
- Underwriting Profit
Projected to grow ¥4.0bn YoY to ¥6.8bn due to the following factors:
- Increase in net premiums earned in auto and specialty insurance
- Decrease in net incurred losses relating to natural catastrophes
- Net Investment Income and Other
- Projected to increase ¥13.1bn YoY to ¥16.7bn mainly due to an increase in gains on sales of business-related equities
- Net Income
- Projected to increase ¥12.3bn YoY to ¥16.0bn due to the factors above, etc.
- Business Unit Profit
- Projected to increase ¥5.5bn YoY to ¥6.3bn due to the factors above, etc.
42
Disclaimer
These presentation materials include business projections and forecasts relating to expected financial and operating results of Tokio Marine Holdings and certain of its affiliates in current and future periods. All such forward looking information is based on information and assumptions available to Tokio Marine Holdings when the materials were prepared and is subject to a range of inherent risks and uncertainties. Actual results may vary materially from those estimated, anticipated, expected or projected in the accompanying materials and no assurances can be given that any such forward looking information will prove to have been accurate. Investors are cautioned not to place undue reliance on forward looking statements in these materials. Tokio Marine Holdings undertakes no obligation to update or revise any of this forward looking information, whether as a result of new information, recent or future developments, or otherwise.
These presentation materials do not constitute an offering of securities in any jurisdiction. To the extent distribution of these presentation materials or the information included herein is restricted by law, persons receiving these materials must inform themselves of and observe any such restrictions.
For further information...
Investor Relations Group, Corporate Planning Dept.
Tokio Marine Holdings, Inc.
URL : www.tokiomarinehd.com/en/inquiry/
Tel : +81-3-3285-0350
20201119
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Tokio Marine Holdings Inc. published this content on 19 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2020 15:24:04 UTC