Tokio Marine : FY2021 Results and FY2022 Projections (2.1MB)PDF

FY2021 Results and FY2022 Projections

May 20, 2022

Table of Contents

Highlight

-	Key Messages	・・・・・・・・・・・・・・	3
-	Executive Summary	・・・・・・・・・・・・・・	4

FY2021 Results

• Consolidated Results (Adjusted Net Income) ・・・ 10

- Natural Catastrophes

・・・・・・・・・・・・・・ 12

• Domestic Non-Life (TMNF)

-	Results	・・・・・・・・・・・・・・ 13
-	Net Premiums Written	・・・・・・・・・・・・・・ 14
-	Net Incurred Loss	・・・・・・・・・・・・・・ 15
-	Combined Ratio	・・・・・・・・・・・・・・ 16

• • Asset Management Results ・・・・・・・・・・・・・・ 17
• Domestic Life (TMNL)

- Results

・・・・・・・・・・・・・・ 18

• International

-	Net Premiums Written	・・・・・・・・・・・・・・ 19
-	Business Unit Profits	・・・・・・・・・・・・・・ 21
-	Results (PHLY)	・・・・・・・・・・・・・・ 23
-	Results (Delphi)	・・・・・・・・・・・・・・ 24
-	Results (TMHCC)	・・・・・・・・・・・・・・ 25
	◆Abbreviations used in this material
	TMNF: Tokio Marine & Nichido Fire Insurance Co., Ltd.
	TMNL: Tokio Marine & Nichido Life Insurance Co., Ltd.
	PHLY: Philadelphia
	TMHCC: Tokio Marine HCC
	TMK: Tokio Marine Kiln
Copyright (c) 2022 Tokio Marine Holdings, Inc.

FY2022 Projections

• • Consolidated (Adjusted Net Income)・・・・・・・ 28
• Domestic Non-Life (TMNF)

-	Financial Projections	・・・・・・・・・・・・・・ 29
-	Net Premiums Written	・・・・・・・・・・・・・・ 30
-	Net Incurred Loss	・・・・・・・・・・・・・・ 31
-	Combined Ratio	・・・・・・・・・・・・・・ 32

• • Asset Management Results ・・・・・・・・・・・・・・ 33
• Domestic Life (TMNL)

- Financial Projections

・・・・・・・・・・・・・・ 34

• International

-	Net Premiums Written	・・・・・・・・・・・・・・ 35
-	Business Unit Profits	・・・・・・・・・・・・・・ 37

Economic Solvency Ratio

-	ESR and Sensitivity	・・・・・・・・・・・・・・ 40
-	Target Range of ESR	・・・・・・・・・・・・・・ 41

Reference

-	Consolidated Net Income	・・・・・・・・・・・・・・ 43
-	Definition of KPIs	・・・・・・・・・・・・・・ 45

• Reconciliation of Adjusted Net Income ・・・・・ 47
• Adjusted Net Assets / Adjusted ROE ・・・・・・・ 49
• Reconciliation of Business Unit Profits・・・・・・・ 50
• Supplemental Information on TMNL's

MCEV	・・・・・・・ 51

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Copyright (c) 2022 Tokio Marine Holdings, Inc.

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Key Messages

Strong 2021

Results

2022 Projected

to Maintain

Strong Results

Expansion of Shareholder Returns Consistent with Profit Growth

• Adjusted net income rose to JPY 578.3bn in FY2021, up 45% YoY and up 3% vs projection (released in February).
• It was a strong result representing a 13% YoY increase on a normalized basis excluding one-time factors such as a decline in natural catastrophes, COVID-19's impact, and capital gains in North America, etc.
• Adjusted net income is projected at JPY 550.0bn in FY2022 (up 9% YoY on a normalized basis and up 5% excl. the FX rate impact), maintaining the current strong performance.
• Profit growth will be driven by an "increase in underwriting profit" supported by rate increases and the expansion of underwriting and an "increase in income gains" on the back of the resultant larger investment assets.
• DPS in FY2021 is raised to JPY 255 based on the strong profits. (Up JPY 55 or 28% YoY and up JPY 10 vs Nov. projection)
• DPS is projected at JPY 300 in FY2022 (up 18% YoY), realizing a dividend growth consistent with the strong profit growth.
• At this point, we plan to repurchase its own shares of JPY 100.0bn within FY2022 in a flexible manner. (As the first step, JPY 50.0bn share buybacks were approved today.)

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Executive Summary: Top-Line	TBU

• Top-lineresults for FY2021 were strong both domestically and internationally and for life and non-life, showing steady performance overall (impact of corporate insurance cancellations for domestic life premiums was in line with projections)
• Solid growth projected for FY2022 driven by rate increases and expanded sales

				Net Premiums Written	Life Insurance Premiums
				*All growth excluding FX effects, billions of JPY	*All growth excluding FX effects, billions of JPY
			+4.4%		+3.8%		+0.4%		+0.5%
							4,150.0		954.9	996.2	1,030.0
						3,887.8
			3,606.5
							2,537.0		598.8	567.5	549.0
						2,467.4
Domestic 2,442.3
International 1,166.7	1,420.6	1,612.0		356.4	429.2	482.0
			2020		2021	2022 Projections	2020	2021	2022 Projections
				* +0.2% vs Feb. Projection	* +2.7% vs Feb. Projection
						+1.0%	+2.8%			-5.2%	-3.3%
	YoY		Domestic
	Growth		International	+10.8%	+5.3%			+9.0%	+5.4%

[2021 Results]

• Strong domestic performance with growth led by reversal of COVID-19 effects in FY2020 and fire insurance rate revisions, despite the impact of rate decrease for CALI
• Strong international performance primarily led by North America with rate increases and expanded underwriting, etc.

[2021 Results]

• Domestic premiums declined due to increased cancellations of corporate insurance (in line with projections) despite steady sales
• International performance was strong mainly due to rate increases and expanded underwriting

[2022 Projections]

• Domestic premiums expected to increase led by product and rate revisions for fire and expansion in specialty sales, etc., despite the impact of rate decrease for auto
• International premiums expected to increase through rate increases and expanded underwriting, etc., with continued focus on disciplined underwriting

Copyright (c) 2022 Tokio Marine Holdings, Inc.

[2022 Projections]

• Domestic sales is expected to continue expanding, but premiums expected to decline due to the impact of increased cancellation of corporate insurance
• International premiums expected to increase through rate increases and expanded underwriting, etc., with continued focus on disciplined underwriting

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