Sompo : Summary of Consolidated Financial Results for the fiscal year ended March 31, 2022 Supplementary Information

UNOFFICIAL TRANSLATION

This document is an unofficial English translation of the Japanese original.

Summary of

Consolidated Financial Results

for the fiscal year ended March 31, 2022

Supplementary Information

May 20, 2022

Sompo Holdings, Inc.

（ Securities Code : 8630 ）

Sompo Holdings, Inc.

1. Overview of Consolidated Financial Results for the fiscal year ended March 31, 2022

（１）Sompo Holdings, Inc.

Overview of Consolidated Financial Results for the fiscal year ended March 31, 2022

					(Yen in hundred millions)
		Fiscal year ended	Fiscal year ended	Increase		Rate of change
		March 31, 2021	March 31, 2022	(Decrease)
						%
Ordinary income:	(1)	38,463	41,674	3,211		8.4
Net premiums written:	(2)	29,235	32,157	2,921		10.0
Sompo Japan Insurance, Inc.	(3)	21,414	21,587	173		0.8
Overseas consolidated subsidiaries	(4)	7,269	9,985	2,715		37.4
Life insurance premiums written	(5)	3,461	3,251	(209)		(6.1)
Ordinary profit:	(6)	2,150	3,155	1,004		46.7
Sompo Japan Insurance, Inc.	(7)	1,974	2,108	133		6.8
Net income attributable to shareholders of the	(8)	1,424	2,248	823		57.8
parent:
Sompo Japan Insurance Inc.	(9)	1,469	1,662	192		13.1
Overseas consolidated subsidiaries(Note 2)	(10)	358	388	30		8.4
Sompo Himawari Life Insurance, Inc.	(11)	200	159	(41)		(20.6)
Nursing Care & Seniors consolidated	(12)	56	59	2		5.2
subsidiaries(Note 3)
Others and consolidation adjustment, etc.(Note 1, 2)	(13)	(660)	(20)	639

Notes)

1. "Others and consolidation adjustment, etc." in the above table includes profits and losses of consolidated companies other than the above and adjustments due to consolidation adjustments, etc.
2. Sompo International Holdings Ltd., among overseas consolidated subsidiaries, has adopted International Financial Reporting Standards and due to differences in accounting standards, 14.7 billion yen is included in the result for the fiscal year ended March 31, 2021 and (25.5) billion yen is included in the result for the fiscal year ended March 31, 2022 as the amount to be revised in accordance with PITF No.18 "Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries, etc. for
   Consolidated Financial Statements". The same amount is excluded in "Consolidation adjustment, etc.".
3. "Nursing care and healthcare consolidated subsidiaries" has changed its name to "Nursing Care & Seniors consolidated subsidiaries" from the beginning of the fiscal year 2021.
   Financial results of "Nursing Care & Seniors consolidated subsidiaries" in Fiscal year ended March 31, 2021 are figures of "Nursing care and healthcare consolidated subsidiaries".

'SOMPO HOLDINGS' numerical management targets

				(Yen in hundred millions)
	Fiscal year ended	Fiscal year ended	Increase		Rate of change
	March 31, 2021	March 31, 2022	(Decrease)
					%
Adjusted consolidated profit	2,021	2,613	591		29.3

1

Sompo Holdings, Inc.

（２）Sompo Japan Insurance Inc.

Summary of Results of Operations

(Yen in hundred millions)

					Fiscal year ended		Fiscal year ended
					March 31, 2021		March 31, 2022	Increase		Rate of
					(April 1, 2020 to		(April 1, 2021 to	(Decrease)		change
					March 31, 2021)		March 31, 2022)
										%
Ordinary income and expenses:
	Underwriting income and expenses:(Note)
			Direct premiums written	(1)	24,096		24,211	114		0.5
		(+)	Net premiums written	(2)	21,414		21,587	173		0.8
		(-)	Net claims paid	(3)	11,898		11,750	(148)		(1.2)
		(-)	Loss adjustment expenses	(4)	1,128		1,154	26		2.3
		(-)	Net operating expenses:	(5)	7,205		7,285	79		1.1
			Net commissions and brokerage fees	(6)	4,148		4,230	81		2.0
			Operating, general and administrative expenses related to underwriting	(7)	3,057		3,055	(2)		(0.1)
			Underwriting result	(8)	1,181		1,397	215		18.3
		(-)	Change in reserve for outstanding losses and claims	(9)	133		276	143		107.5
		(-)	Change in Ordinary Underwriting Reserves	(10)	127		48	(79)		(62.1)
		(-)	Change in Catastrophic Loss Reserve	(11)	361		571	210		58.4
		(+)	Other underwriting income and expenses	(12)	103		129	25		24.9
			Underwriting profit	(13)	663		630	(33)		(5.0)
	Investment income and expenses:
		(+)	Interest and dividend income	(14)	1,261		1,479	218		17.3
		(+)	Transfer of interest and dividend income on deposits of premiums, etc.	(15)	(319)		(308)	10		－
			Net Interest and dividend income	(16)	941		1,170	228		24.3
		(+)	Gains and losses on sales of securities	(17)	648		381	(266)		(41.1)
		(-)	Impairment losses on securities	(18)	32		18	(14)		(45.2)
		(+)	Gains and losses on derivatives	(19)	(130)		(24)	106		－
		(+)	Other investment income and expenses	(20)	37		123	85		227.4
			Gross investment margin	(21)	1,464		1,633	168		11.5
	(+)	Other ordinary income and expenses etc.	(22)	(153)		(155)	(1)		－
			Ordinary profit	(23)	1,974		2,108	133		6.8
Extraordinary gains and losses:
		(+)	Extraordinary gains	(24)	96		163	67		70.0
		(-)	Extraordinary losses	(25)	144		149	4		3.1
			Extraordinary gains and losses	(26)	(48)		14	62		－
			Net income before income taxes	(27)	1,925		2,122	196		10.2
(-)	Total income taxes	(28)	455		460	4		1.0
			Net income	(29)	1,469		1,662	192		13.1
Ratios:				%	%		%
		Net loss ratio	(30)	60.8		59.8	(1.1)
		Net operating expenses ratio	(31)	33.6		33.7	0.1
		Combined ratio	(32)	94.5		93.5	(1.0)
		Return on investments (income base)	(33)	2.35		2.75	0.40
		Return on investments (realized base)	(34)	3.30		3.60	0.30

Note) Profit or losses by maturity refunds, etc. of savings-type insurance are not included in underwriting income and expenses.

Reference) Total return based on the fair value:	Fiscal year ended March 31, 2021	8.11	%
	Fiscal year ended March 31, 2022	2.50	%

（３）Overseas consolidated subsidiaries

Summary of Results of Major items

(Yen in hundred millions)

		Fiscal year ended	Fiscal year ended
		March 31, 2021	March 31, 2022	Increase	Rate of
		(April 1, 2020 to	(April 1, 2021 to	(Decrease)	change
		March 31, 2021)	March 31, 2022)
					%
Net premiums written	(1)	7,269	9,985	2,715	37.4
Net income attributable to shareholders of the parent	(2)	358	388	30	8.4
The amount to be revised due to differences in accounting standards, which is excluded	(3)	(147)	255	402	－
on consolidation(Note)
Reference: Adjusted net income attributable to shareholders of the parent (2)+(3)	(4)	210	643	432	205.1

Note) "The amount to be revised due to differences in accounting standards, which is excluded on consolidation" is the amount stated on page 2 (Note 2).

（４）Sompo Himawari Life Insurance, Inc.

Summary of Results of Major items

(Yen in hundred millions)

		Fiscal year ended	Fiscal year ended
		March 31, 2021	March 31, 2022	Increase	Rate of
		(April 1, 2020 to	(April 1, 2021 to	(Decrease)	change
		March 31, 2021)	March 31, 2022)
					%
Insurance premiums and other	(1)	4,415	4,368	(46)	(1.1)
Net premiums written	(2)	3,402	3,185	(217)	(6.4)
Ordinary profit	(3)	321	264	(56)	(17.7)
Net income	(4)	200	159	(41)	(20.6)

2

Sompo Holdings, Inc.

（５）Sompo Japan Insurance Inc.

Summary of Results of Major items

(a) Direct premiums written (excluding deposits of premiums by policyholders)

						(Yen in hundred millions)
	Fiscal year ended March 31, 2021			Fiscal year ended March 31, 2022
	(April 1, 2020 to March 31, 2021)			(April 1, 2021 to March 31, 2022)
Business line	Amount	Rate of change		Amount		Increase		Rate of change
		(Decrease)
			%					%
Fire and allied insurance	4,813	8.7		4,955		141		2.9
Marine insurance	444	(4.3)		490		46		10.5
Personal accident insurance	1,581	(7.8)		1,571		(10)		(0.7)
Voluntary automobile insurance	10,956	0.5		10,927		(29)		(0.3)
Compulsory automobile liability insurance	2,388	(17.8)		2,206		(182)		(7.6)
Others	3,912	(0.6)		4,059		147		3.8
Total	24,096	(1.1)		24,211		114		0.5
Deposits of premiums by policyholders	934	(17.8)		810		(124)		(13.4)

(b) Net premiums written

						(Yen in hundred millions)
	Fiscal year ended March 31, 2021			Fiscal year ended March 31, 2022
	(April 1, 2020 to March 31, 2021)			(April 1, 2021 to March 31, 2022)
Business line	Amount	Rate of change		Amount		Increase		Rate of change
		(Decrease)
			%					%
Fire and allied insurance	3,063	7.4		3,276		212		6.9
Marine insurance	405	(13.5)		468		62		15.4
Personal accident insurance	1,521	(8.9)		1,516		(4)		(0.3)
Voluntary automobile insurance	10,898	0.5		10,877		(20)		(0.2)
Compulsory automobile liability insurance	2,376	(15.3)		2,168		(208)		(8.8)
Others	3,148	(1.8)		3,280		131		4.2
Total	21,414	(2.0)		21,587		173		0.8
Excluding earthquake insurance and	19,034	(0.0)		19,417		382		2.0
compulsory automobile liability insurance

(c) Net claims paid

(Yen in hundred millions)

	Fiscal year ended March 31, 2021			Fiscal year ended March 31, 2022
	(April 1, 2020 to March 31, 2021)			(April 1, 2021 to March 31, 2022)
	Amount	Net loss ratio		Amount	Increase	Net loss ratio
Business line		(Decrease)	Increase
					(Decrease)
			%			%	%
Fire and allied insurance	2,143	72.1		2,161	17	68.6	(3.6)
Marine insurance	249	64.4		230	(19)	51.7	(12.7)
Personal accident insurance	710	50.8		696	(14)	50.1	(0.7)
Voluntary automobile insurance	5,321	55.5		5,363	41	56.0	0.5
Compulsory automobile liability insurance	1,752	80.4		1,587	(165)	80.2	(0.2)
Others	1,720	57.9		1,712	(8)	55.5	(2.4)
Total	11,898	60.8		11,750	(148)	59.8	(1.1)
Excluding earthquake insurance and	10,145	58.4		10,141	(4)	57.4	(1.0)
compulsory automobile liability insurance

(d) Net Incurred Loss during the period due to Natural Disasters in Japan

								(Yen in hundred millions)
	Fiscal year ended March 31, 2021		Fiscal year ended March 31, 2022
	(April 1, 2020 to March 31, 2021)		(April 1, 2021 to March 31, 2022)
			Reserve for				Reserve for
	Net claims paid		outstanding	Net incurred loss	Net claims paid	outstanding		Net incurred loss
Business line		losses and	losses and
			claims				claims
Fire and allied insurance	488		436		925	225	475		700
Voluntary automobile insurance	31		(0)		30	17	1		18
Other than the above	18		18		36	12	12		25
Total excluding earthquake insurance and	538		454		993	255	489		744
compulsory automobile liability insurance
Note) Net incurred loss ＝ Net claims paid ＋ Reserve for outstanding losses and claims

Reserve for outstanding losses and claims represents amounts deducting reinsurance recoverable on unpaid loss from reserve for outstanding losses and claims of direct insurance and assumed reinsurance.

3

Sompo Holdings, Inc.

(e) Breakdown of Operating, General and Administrative Expenses and Loss Adjustment Expenses

(Yen in hundred millions)

	Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2022
	Amount	Increase	Rate of	Amount	Increase	Rate of
Business line	(Decrease)	change	(Decrease)	change
			%			%
Personnel expenses	2,169	(106)	(4.7)	2,090	(79)	(3.7)
Non-personnel expenses	1,983	112	6.0	2,103	120	6.1
Others (taxes and contributions)	189	8	4.6	200	10	5.7
Total	4,342	14	0.3	4,394	51	1.2

(f) Reserve for Outstanding Losses and Claims

						(Yen in hundred millions)
	Fiscal year ended March 31, 2021		Fiscal year ended March 31, 2022
Business line	Balance		Change		Balance		Change
Fire and allied insurance		1,424		337	1,548		124
Marine insurance		214		(10)	231		16
Personal accident insurance		448		(90)	470		21
Voluntary automobile insurance		3,711		(70)	3,692		(18)
Compulsory automobile liability insurance		626		(62)	622		(3)
Others		2,299		29	2,435		136
Total		8,724		133	9,001		276

(g) Ordinary Underwriting Reserves

						(Yen in hundred millions)
		Fiscal year ended March 31, 2021		Fiscal year ended March 31, 2022
Business line		Balance	Change		Balance		Change
Fire and allied insurance		7,752		149	7,840		88
Marine insurance		199		(15)	222		22
Personal accident insurance		1,273		(0)	1,281		7
Voluntary automobile insurance		3,203		9	3,173		(30)
Compulsory automobile liability insurance		4,620		(9)	4,595		(25)
Others		3,460		(6)	3,446		(14)
Total		20,511		127	20,559		48
Note) This table excludes reserve for maturity refunds and reserve for dividends to policyholders of savings-type insurance and includes underwriting reserves of earthquake
insurance and compulsory automobile liability insurance.

(h) Catastrophic Loss Reserve

							(Yen in hundred millions)
	Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2022
	Reversal	Provision	Balance	Balance	Reversal	Provision		Balance	Balance
Business line	ratio		ratio
				%					%
Fire and allied insurance	585	552	1,036	33.9	475	585		1,146	35.0
Marine insurance	12	12	440	108.6	－	14		455	97.2
Personal accident insurance	－	48	763	50.2	－	48		812	53.6
Voluntary automobile insurance	－	353	710	6.5	－	352		1,063	9.8
Others	112	103	1,987	63.1	61	107		2,034	62.0
Total	709	1,071	4,940	26.0	537	1,109		5,512	28.4

Note) Balance ratio = Balance of catastrophic loss reserve / Net premiums written (excluding earthquake insurance and compulsory automobile liability insurance) × 100

4