TOKIO MARINE HOLDINGS, INC. May 20, 2020
Tokio Marine Holdings, Inc.
President: Satoru Komiya
TSE code number: 8766
Tokio Marine Group's FY2020 Business Plan and FY2019 Actual Result
Tokio Marine Holdings, Inc. has announced today that its business plan based on an adjusted net income basis ("Adjusted Net Income") for the fiscal year ended March 31, 2021 ("FY2020") is undetermined.
１．Business plan based on profits for the entire Group（Adjusted Net Income）and Business Unit Profits
Business plan based on profits for the entire Group (Adjusted Net Income) for FY2020 is undetermined as there are difficulties in reasonably estimating the impacts caused by the spread of COVID-19 as of the release date of this document. Business plan based on Business Unit Profits for FY2020 is also undetermined.
２．Profits for the entire Group（Adjusted Net Income）for FY2019
In the fiscal year ended March 31, 2020 ("FY2019"), the Tokio Marine Group (the"Group") recorded Adjusted Net Income of 286.7 billion yen, which increased by 5.7 billion yen mainly due to an increase of net income at domestic life and overseas insurance subsidiaries.
（Hundred millions of Yen, except percentages）
FY2017 | FY2018 | FY2019 | FY2019 | ||
Actual | Actual | Revised | Actual | ||
Results | Results | Forecast | Results | ||
Adjusted Net Income | 3,414 | 2,809 | 3,050 | 2,867 | |
Adjusted Net Assets | 39,494 | 39,247 | 38,330 | 35,020 | |
Adjusted ROE | 8.6% | 7.2% | 8.0% | 8.2% |
Notes;
To appropriately capture and enhance the corporate value of the Tokio Marine Group, earnings and ROE are presented on "Adjusted Net Income" basis (please refer to Appendix for the definition).
３．Business Unit Profits for FY2019
In FY2019, the Group recorded Business Unit Profits of 25.9 billion yen for the domestic non-life insurance business, ▲70.3 billion yen for the domestic life insurance business, 179.5 billion yen for the international insurance business and 5.3 billion yen for the financial and other businesses.
（Hundred millions of Yen）
FY2017 | FY2018 | FY2019 | FY2019 | |||
Business Unit | Actual | Actual | Revised | Actual | ||
Results | Results | Forecast | Results | |||
Domestic non-life insurance business | 1,443 | 189 | 480 | 259 | ||
Domestic life insurance business | 984 | ▲1,586 | ▲360 | ▲703 | ||
International insurance business | 1,441 | 1,762 | 1,560 | 1,795 | ||
Financial / other businesses | 72 | 68 | 50 | 53 | ||
Notes;
To appropriately present the results of our efforts reflecting the features of each business unit, profits for each business unit are presented on "Business Unit Profits" basis (please refer to Appendix for the definition).
Appendix
Definitions of Adjusted Net Income, Adjusted ROE and Business Unit Profits
1. KPI for the entire GroupAdjusted Net Income*1
Adjusted | Net income | Provision for | Provision for | Provision for | Gains or losses on sales or | ||||||||||||||||||
catastrophe | |||||||||||||||||||||||
Net | ＝ | (consolidated) | ＋ | ＋ | contingency | ＋ | price fluctuation | － | valuation of ALM*４ bonds | ||||||||||||||
loss | |||||||||||||||||||||||
Income | *2 | reserves*３ | reserves*３ | and interest rate swaps | |||||||||||||||||||
reserves*３ | |||||||||||||||||||||||
Amortization of goodwill | Gains or losses on sales | Other extraordinary | |||||||||||||||||||||
or valuation of fixed assets | |||||||||||||||||||||||
＋ | and other intangible fixed | － | － | gains/losses, | |||||||||||||||||||
and business investment | |||||||||||||||||||||||
assets | valuation allowances, etc. | ||||||||||||||||||||||
Adjusted Net Assets*1 | equities | ||||||||||||||||||||||
Adjusted | ＝ | Net assets | ＋ | Catastrophe | ＋ | Contingency | ＋ | Price fluctuation | － | Goodwill and other | |||||||||||||
Net Assets | (Consolidated) | loss reserves | reserves | reserves | intangible fixed assets | ||||||||||||||||||
Adjusted ROE | |||||||||||||||||||||||
Adjusted Net | |||||||||||||||||||||||
Adjusted | ＝ | Adjusted | ÷ | Assets | |||||||||||||||||||
ROE | Net Income | (average | |||||||||||||||||||||
balance basis) | |||||||||||||||||||||||
2. Business Unit Profits*1
(1) Non-life insurance business
Business | Net | Provision for | Provision for | Gains or losses on sales or | |||||||||||||||
＝ | ＋ | catastrophe loss | ＋ | price fluctuation | － | valuation of ALM*４ bonds | |||||||||||||
Unit Profits | income | ||||||||||||||||||
reserves*３ | reserves*３ | and interest rate swaps | |||||||||||||||||
Gains or losses on sales or | Other extraordinary | ||||||||||||||||||
valuation of fixed assets, business | |||||||||||||||||||
－ | － | gains/losses, | |||||||||||||||||
related equities and business | |||||||||||||||||||
valuation allowances, etc. | |||||||||||||||||||
(2) Life insurance business*5 | investment equities | ||||||||||||||||||
Business Unit | Increase in EV*6 | Capital transactions | |||||||||||||||||
＝ | during the current | － | such as | ||||||||||||||||
Profits | |||||||||||||||||||
fiscal year | capital increase | ||||||||||||||||||
(3) Other businesses
Net income presented in financial statements
*1: Each adjustment is on after-tax basis
*2: Net income attributable to owners of the parent presented in Consolidated Financial Statements
*3: In case of reversal, it is subtracted from the equation
*4: ALM: Asset Liability Management. Excluded since it is counter balance of ALM related liabilities
*5: For some of the life insurance companies, Business Unit Profits is calculated by using the definition in (3) (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
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Tokio Marine Holdings Inc. published this content on 20 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2020 05:27:02 UTC
