MS& Insurance : Explanatory Material for Business Results for the Year Ended March 31, 2021

[Attachment]

Explanatory Material for Business Results for the Year Ended March 31, 2021

May 20, 2021

MS&AD Insurance Group Holdings, Inc.

This document has been translated from the Japanese original solely for reference purposes, and the Japanese original shall prevail if any discrepancy is identified.

Contents

1.	Summary of Consolidated Business Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	Page
1
	(1)	Consolidated Business Results	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	1
	(2)	Business Results of Domestic Non-Life Insurance Subsidiaries (Simple Sum of Two Main
		Consolidated Subsidiaries) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	2
	(3)	Business Results of Domestic Life Insurance Subsidiaries ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	3
	(4)	Business Results of Overseas Insurance Subsidiaries ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	4
2.	Non-Consolidated Business Results of Mitsui Sumitomo Insurance Co., Ltd. ・・・・・・・・・・・	5
3.	Non-Consolidated Business Results of Aioi Nissay Dowa Insurance Co., Ltd. ・・・・・・・・・・・	10
4.	Earnings Forecasts
	(1)	Consolidated Business Results	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	15
	(2)	Domestic Non-Life Insurance Subsidiaries (Two Main Consolidated Subsidiaries) ・・・・・・・・・・・・・・	16
[Supplementary Information]
1.	Supplementary Information on Consolidated Business Results ・・・・・・・・・・・・・・・・・・・・・・・	17

1. Consolidated Business Results
2. Premiums Written and Net Claims Paid by Line of Insurance
3. Investments in Securities

2.	Summary of Business Results of Main Consolidated Subsidiaries ・・・・・・・・・・・・・・・・・・・・	20
	(1)	Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)
	(2)	Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)
	(3)	Mitsui Direct General Insurance Co., Ltd. (Non-consolidated)
	(4)	Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (Non-consolidated)
	(5)	Mitsui Sumitomo Primary Life Insurance Co., Ltd. (Non-consolidated)
3.	Supplementary Information on Business Results
	for the Year Ended March 31, 2021 for Press Conference ・・・・・・・・・・・・・・・・・・・・・・・・・・	40

1. Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)
2. Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

1. Summary of Consolidated Business Results

(1) Consolidated Business Results

						(Yen in 100 millions)
		Items	Year ended	Year ended	Change		Change ratio
		March 31, 2020	March 31, 2021
							%
Net premiums written (non-life insurance)	1	35,737	35,009	(727)		(2.0)
	Mitsui Sumitomo Insurance	2	15,479	15,595	116		0.8
	Aioi Nissay Dowa Insurance	3	12,767	12,814	46		0.4
	Simple sum	4	28,247	28,409	162		0.6
	Mitsui Direct General Insurance	5	363	364	1		0.3
	Overseas insurance subsidiaries	6	7,119	6,235	(883)		(12.4)
Insurance premiums (domestic life insurance)	7	13,934	12,973	(960)		(6.9)
	Mitsui Sumitomo Aioi Life Insurance	8	5,212	5,119	(93)		(1.8)
	Mitsui Sumitomo Primary Life Insurance	9	8,721	7,854	(867)		(9.9)
Ordinary profit	10	1,577	3,065	1,488		94.4
Net income attributable to owners of the parent	11	1,430	1,443	13		1.0
	Mitsui Sumitomo Insurance	12	940	922	(18)		(2.0)
	Aioi Nissay Dowa Insurance	13	447	216	(231)		(51.7)
	Simple sum	14	1,388	1,138	(250)		(18.0)
	Mitsui Direct General Insurance	15	1	8	7		514.4
	Mitsui Sumitomo Aioi Life Insurance	16	75	119	44		58.8
	Mitsui Sumitomo Primary Life Insurance	17	203	431	228		112.3
	Overseas insurance subsidiaries	18	361	(31)	(393)		(108.8)
	Others, consolidation adjustments, etc.	19	(599)	(221)	377		-
	One-time amortization of goodwill related to an affiliate	20	(366)	-	366		-
	Provision/reversal of reserve for losses on sales of shares	21	(169)	81	250		-
	of subsidiaries and associates
(Note) Items 12 to 18 represent the net income or loss on a non-consolidated basis after taking into account the Company's ownership interests in
	its subsidiaries.

(Supplement 1) Incurred Losses Caused by the Spread of COVID-19

			(Yen in 100 millions)
		Items	Year ended
		March 31, 2021
Total	22	658
	Mitsui Sumitomo Insurance	23	52
	Aioi Nissay Dowa Insurance	24	167
	Overseas insurance subsidiaries	25	438

(Note) The amounts include incurred losses of profit insurance (fire and allied insurance), guarantee and credit insurance, and event cancellation insurance, etc.

(Supplement 2) Incurred Losses Caused by Natural Disasters in Japan, Excluding Residential Earthquake Insurance, of Two Main Consolidated Domestic Non-Life Insurance Subsidiaries

					(Yen in 100 millions)
		Items	Year ended	Year ended		Change
		March 31, 2020	March 31, 2021
Total	26	1,305	711		(593)
	Mitsui Sumitomo Insurance	27	711	427		(283)
	Aioi Nissay Dowa Insurance	28	594	283		(310)

(Supplement 3) Incurred Losses Caused by Overseas Natural Disasters

						(Yen in 100 millions)
		Items	Year ended		Year ended	Change
		March 31, 2020	March 31, 2021
Total	29	197		537	340
	Aioi Nissay Dowa Insurance	30	84		165	80
	Overseas insurance subsidiaries (MS Amlin)	31	112		230	118
	Other subsidiaries	32	-		21	21
	Consolidation adjustments	33	-		120	120

(Notes) 1. The scope of aggregation for overseas natural disasters is determined on the basis of internal management.

2. Consolidation adjustments are the amounts of additional entries related to North American winter storm in February 2021 which occurred at overseas insurance subsidiaries (fiscal year end: December 31) in the first quarter of 2021.

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(2) Business Results of Domestic Non-Life Insurance Subsidiaries (Simple Sum of Two Main Consolidated Subsidiaries)

The figures in the tables below are presented as simple sum of Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd.

											(Yen in 100 millions)
			Items		Year ended		Year ended		Change		Change ratio
				March 31, 2020		March 31, 2021
												%
(+)	Net premiums written		1	28,247			28,409		162		0.6
(-)	Net claims paid		2	16,133			15,153		(979)		(6.1)
(-)	Loss adjustment expenses		3	1,573			1,682		108		6.9
(-)	Commissions and collection expenses		4	5,301			5,531		230		4.4
(-)	Operating expenses and general and		5	4,056			4,050		(6)		(0.2)
administrative expenses for underwriting
	Underwriting profit before		6	1,182			1,991		809		68.5
	movements in reserves
(-)	Movement in outstanding claims		7	(224)			569		793		-
(-)	Movement in ordinary underwriting reserves		8	1,068			833		(235)		(22.0)
(+)	Other		9	80			178		98		123.1
	Underwriting profit before		10	418			767		349		83.5
	movement in catastrophe reserve
(-)	Movement in catastrophe reserve		11	333			653		319		95.9
	Underwriting profit		12	84			114		29		34.8
(+)	Interest and dividends income		13		1,613			1,537		(75)		(4.7)
(-)	Transfer of investment income on deposit		14		452			417		(34)		(7.6)
premiums from policyholders
	Net interest and dividends income		15		1,160			1,119		(41)		(3.5)
	(item 13 - item 14)
(+)	Gains/(losses) on sales of securities		16		859			672		(187)		(21.8)
(-)	Impairment losses on securities		17	319			18		(300)		(94.2)
(+)	Other		18	(208)			(111)		97		-
	Investment profit		19	1,492			1,662		169		11.4
(+)	Other ordinary profit/(loss)		20	(99)			(135)		(35)		-
	Ordinary profit		21	1,477			1,640		163		11.1
(+)	Extraordinary income/(losses):		22	(1,463)			(70)		1,393		-
	Gains/(losses) on reserve for price fluctuation	23	402			(59)		(462)		(114.7)
	Losses on valuation of shares of subsidiaries	24	(1,863)			-		1,863		-
	and associates
	Income before income taxes		25	13			1,570		1,557		11,397.0
(-)	Income taxes		26	(1,374)			432		1,807		-
	Net income		27	1,388			1,138		(250)		(18.0)
	Net loss ratio	Note 1	28	62.7		%	59.3	%	(3.4) %
Ratios	Net expense ratio	Note 2	29	33.1		%	33.7	%	0.6	%
	Combined ratio	Note 3	30	95.8		%	93.0	%	(2.8) %
Incurred losses (including loss adjustment expenses) Note 4, 5	31	14,991			15,091		99		0.7
	EI loss ratio	Note 4, 6	32	61.7		%	60.5	%	(1.2) %

(Notes) 1. Net loss ratio = (net claims paid + loss adjustment expenses) / net premiums written x 100

1. Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) / net premiums written x 100
2. Combined ratio = net loss ratio + net expense ratio
3. The calculation is exclusive of residential earthquake insurance and CALI*.
   * CALI stands for compulsory automobile liability insurance, and the same hereinafter.
4. Incurred losses (including loss adjustment expenses) = net claims paid + loss adjustment expenses + movement in outstanding claims
5. EI loss ratio = incurred losses (including loss adjustment expenses) / earned premiums x 100
   Earned premiums are calculated based on unearned premiums (excluding underwriting reserves for natural disasters), premium reserve, etc.

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1. Business Results of Domestic Life Insurance Subsidiaries 1. Mitsui Sumitomo Aioi Life Insurance Co., Ltd.

					(Yen in 100 millions)
	Items	Year ended	Year ended	Change	Change ratio
	March 31, 2020	March 31, 2021
Amount of new policies(Note)	1	20,684	17,690	(2,994)	(14.5)	%
Annualized premiums of	2	293	262	(31)	(10.6)	%
new policies
Amount of policies in force(Note)	3	244,580	242,669	(1,910)	(0.8)	%
Annualized premiums for	4	4,481	4,479	(1)	(0.0)	%
policies in force
Insurance premiums	5	5,212	5,119	(93)	(1.8)	%
Ordinary profit	6	186	256	69	37.3	%
Extraordinary income/(losses)	7	(9)	(14)	(4)	-
Net income	8	75	119	44	58.8	%

(Note) The figures represent the total sum of individual insurance and individual annuities.

2. Mitsui Sumitomo Primary Life Insurance Co., Ltd.

					(Yen in 100 millions)
	Items	Year ended	Year ended	Change	Change ratio
	March 31, 2020	March 31, 2021
Amount of new policies(Note)	1	8,827	7,882	(944)	(10.7)	%
Amount of policies in force(Note)	2	65,140	65,958	818	1.3	%
Insurance premiums	3	8,721	7,854	(867)	(9.9)	%
Ordinary profit	4	314	1,600	1,286	408.9	%
Extraordinary income/(losses)	5	(35)	(1,005)	(970)	-
Net income	6	203	431	228	112.3	%

(Note) The figures represent the total sum of individual insurance and individual annuities.

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