Tokio Marine : FY2020 Results and FY2021 Projections

FY2020 Results and FY2021 Projections

Tokio Marine Holdings, Inc.

May 20, 2021

Highlight

-	Top-line and Bottom-line	・・・・・・・・・・ 3-5
-	Impacts of COVID-19	・・・・・・・・・・・・ 6
-	Natural Catastrophes	・・・・・・・・・・・・ 7

FY2020 Results

• Domestic Non-Life (TMNF)

-	Results	・・・・・・・・・・・・ 9
-	Net Premiums Written	・・・・・・・・・・・ 10
-	Net Incurred Loss	・・・・・・・・・・・・ 11
-	Combined Ratio	・・・・・・・・・・・・ 12
-	Asset Management Results	・・・・・・・・・・・・ 13

• Domestic Life (TMNL)

- Results

・・・・・・・・・・・・ 14

• International

-	Net Premiums Written	・・・・・・・・・・・・ 15
-	Business Unit Profits	・・・・・・・・・・・・ 16
-	Results (PHLY)	・・・・・・・・・・・・ 17
-	Results (Delphi)	・・・・・・・・・・・・	18
-	Results (TMHCC)	・・・・・・・・・・・・	19

• 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.

PHLY : Philadelphia

TMHCC : Tokio Marine HCC

TMK : Tokio Marine Kiln

FY2021 Projections

• Domestic Non-Life (TMNF)

-	Financial Projections	・・・・・・・・・・・・ 21
-	Net Premiums Written	・・・・・・・・・・・・ 22
-	Net Incurred Loss	・・・・・・・・・・・・ 23
-	Combined Ratio	・・・・・・・・・・・・ 24
-	Asset Management	・・・・・・・・・・・・ 25

• Domestic Life (TMNL)

- Financial Projections

・・・・・・・・・・・・・26

• International

-	Net Premiums Written	・・・・・・・・・・・・	27
-	Business Unit Profits	・・・・・・・・・・・・	28

Economic Solvency Ratio

-	Target Range of Economic Solvency Ratio・・ 30
-	ESR and Sensitivity	・・・・・・・・・・・・・・ 31

Reference

• Financial Results / Projections: NF ・・・・・・・・33-34

- Definition of KPIs

・・・・・・・・・・ 35-36

• Adjusted Net Income / Adjusted Net Assets /

Adjusted ROE	・・・・・・・・・・・ 37-39
- Business Unit Profits	・・・・・・・・・・ 40-41

• Supplementary Information on TMNL MCEV・・42

Copyright (c) 2021 Tokio Marine Holdings, Inc.	1

Highlight

Copyright (c) 2021 Tokio Marine Holdings, Inc.

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Highlight-1: Results and Projections of Top-line

Consolidated	Domestic Life

Domestic

Non-Life International

Net Premiums Written: Strong growth of +2.7% YoY excluding the FX effect (slightly better than FY2020 projections).

FY2021 Projection: Expecting continued strong performance of +2.2% YoY excluding the FX effect.

Life Insurance Premiums: Decrease of 0.7% YoY excluding the FX effect due to surrenders of corporate insurance, etc. (slightly better than FY2020 projections)

FY2021 Projection: Expecting decrease of 4.9% YoY excluding the FX effect.

		*As consolidation adjustments are included, the sum does not match the simple total for domestic and overseas
■ Net Premiums Written* (billions of JPY)	■ Life Insurance Premiums* (billions of JPY)
+0.2%	+4.3%	-2.7%	-2.6%
(+2.7% excluding FX effect)	(+2.2% excluding FX effect)	(-0.7% excluding FX)	(-4.9% excluding FX)

			3,598.3	3,606.5	3,760.0
			1,170.6	1,166.7	1,313.0
	Overseas	2,428.1	2,442.3	2,440.0
	Domestic
		FY2019 Results	FY2020 Results	FY2021
			19年度実績	20年度実績	Projection
				+1.6% from

FY2020 projection

[FY2020 Results]

• Domestically, NPW increased by 0.6% with the effects of rate revision in auto and fire insurance and higher premiums from expanded specialty insurance offsetting the decline in premiums primarily due to COVID-19 and CALI rate cuts.

• Overseas, the decline in premiums due to COVID-19 and profitability-focused underwriting was offset with rate increase at each entity, etc., resulting in an increase of 7.7% on a local currency basis (-0.3% when FX is factored in).

[FY2021 Projection]

• Domestically, the decline in premiums primarily due to CALI rate cuts was offset by the effects of a reaction to the impact of COVID-19 and rate revision in auto, etc., and remained largely flat overall.
• Overseas, NPW are expected to increase by 6.0% on a local currency basis (+12.5% when FX is factored in) mainly due to rate increase in

North America, etc.

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			981.9	954.9	930.0
			354.9	356.4	378.0
	Overseas	627.2	598.8	552.0
	Domestic
			FY2019 Results	FY2020 Results	FY2021
			19年度実績	20年度実績	21年度
				+3.8% from	Projection
				FY2020 projection	通期予想

[FY2020 Results]

• Domestically, life insurance premiums fell 4.5% due to a decline in in- force policies from surrender in corporate insurance, despite countering the self-imposed suspension of face-to-face sales activities during COVID-19 with new medical insurance products.

• Overseas, life insurance premiums rose 6.5% on a local currency basis (+0.4% when FX is factored in) due to rate increase for TMHCC medical stop-loss and expanded underwriting, etc.

[FY2021 Projection]

• Domestically, expecting decrease of 7.8% due to a decline in in-force policies from increased surrender in corporate insurance, etc.

• Overseas, life insurance premiums are expected to remain largely flat on a local currency basis (+6.0% when FX is factored in).

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Highlight-2 :Bottom-line Results

Consolidated	Domestic Life

Domestic

Non-Life International

Consolidated net income was JPY161.8 billion, down JPY97.9 billion YoY primarily due to the impact of COVID-19 and an increase in various reserves, and below FY2020 Projection due to the increase in various reserves, etc. Adjusted net income which reflects the Group's underlying capabilities deducting catastrophe loss reserves, etc. grew JPY49.4 billion YoY to JPY336.1 billion, mostly in line with FY2020 Projection.

 Consolidated net income (billions of JPY)
					-97.9 YoY
								Financial and
	Domestic Non-Life*1		Domestic			International*1
	-7.1		Life*1		-106.9	general, etc.
			+11.8		+4.2

	Increase in net premiums	Mainly due to
Natural	earned, but gains on sales of	decrease in system
catastrophes	ALM bonds decreased	development costs
+53.5

• Reversal effect of reserve provision at PHLY in FY2019
• Improved profits due to rate increases, etc.
• New consolidation of Pure

• Increase in large losses relating specialty insurance, etc.

259.7							Other	+11.8
						-4.4
	COVID-19 impact	Catastrophe loss reserves
+29.1		(excl. COVID-19 impact)
				-85.3
	Underwriting	+10.6( +4.0)
	Investment	+18.5(+20.0)			Underwriting	-62.1
	* ( ): Reversal effect of FY2019 impact
	Investment	-26.7

Natural	Impairment loss on
catastrophes	shares of overseas

		-11.3				subsidiaries, etc.
							-6.3
COVID-19 impact
-88.9
		Amortization of Pure's goodwill
									Foreign exchange

	and intangible fixed assets	-11.5
*Investment declined from Q3 (-32.3) due to	-20.2
improved market environment, etc.

Other

+31.3 +4.2 161.8

FY2019 Results

FY2020 Results

 Adjusted Net Income

-38.1 from FY2020 projection

(billions of JPY)

+49.4 YoY

Domestic

*1

International

*1

Domestic Non-Life

Life*1

Financial and

general, etc.

15.3*4

Natural

Other

+0.8

336.1

Other

catastrophes

+31.3

+13.3 *3

-11.3

286.7

Natural

COVID-19 impact

catastrophes

Foreign exchange

+53.5

-88.9

COVID-19 impact

-11.5

+46.7

Underwriting

+28.3 *2

Investment

+18.5

FY2019 Results

*1 Includes consolidation adjustments. Note that P/L related to overseas business such as group reinsurance recorded by TMNF is included in international insurance.

*2 Difference from consolidated net income is due to deduction of provision of catastrophe loss reserves in connection with COVID-19

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FY2020 Results

+4.1 from FY2020 projection

*3 Difference from consolidated net income is due to deductions such as gain from sales of ALM bonds *4 Difference from consolidated net income is due to deductions such as gain from sales of ALM bonds

4