Tokio Marine : Mid-Term Business Plan 2023～Adapt, Lead, Innovate～PDF

May 28, 2021

Tokio Marine Holdings, Inc.

Tokio Marine Group Mid-Term Business Plan 2023

～Adapt, Lead, Innovate～

Tokio Marine Holdings, Inc. (President and Group CEO: Satoru Komiya, hereinafter referred to as "we") is pleased to announce that the New Mid-Term Business Plan (FY2021 to FY2023); "Adapt, Lead, Innovate" has been released.

１． Tokio Marine Group Purpose and Long-term Vision

As a group we have been able to deliver sustainable growth, by working to solve social issues while remaining focused on our purpose which is "protect our customers and society in their time of need", which has remained unchanged since our foundation.

As the challenges that our society faces become more varied and complex, it is increasingly necessary for every company to consider just how much they can be part of the solution to these challenges and how much they can deliver value to society.

In this environment, we see working to solve these social issues through our business operations and trying to create a sustainable society as being a key mid- to long-term growth driver for the group and a step towards realizing our group vision to be a "Global Insurance Group that Creates Sustainable Growth by Delivering Safety and Security to Customers Around the World".

Through this new mid-term plan, we will work to create a "Win-win Situation with Stakeholders" while leveraging "Glocal x Synergy" to deliver 'Growth and Stable High Profit'.

２． Strategic Direction of New Mid Term Plan

In order to realize the long-term vision, built on a robust business platform we plan to implement our "2+1 Growth Strategy".

Specifically, we will respond to the rapidly evolving needs of the customers by delivering new products and channel strategies which utilize digital technology and bring added convenience to the customer while delivering operational efficiency. We have termed this as "New Market x New Approach" to strengthen the profitability of our core insurance business while continuing to invest in our business to create the next growth stage.

The key KPIs in the New Mid-Term Business Plan are "Adjusted net income" and "Adjusted ROE" in which we aim to achieve "Adjusted Net Income: CAGR (Compound Annual Growth Rate) 3-7%, Adjusted ROE: around 12%" in FY2023.

３．Key Initiatives from the Tokio Marine Group Mid-term Plan 2023 - "Adapt, Lead, Innovate"

We, Tokio Marine Group, has been able to deliver sustainable growth, by working to solve social issues while remaining focused on our purpose which is to "protect our customers and society in their time of need". We will work with this in mind through the mid-term business plan, focusing on how much we can be part of the solution to social issues through our business operation and how much we can deliver value to the society.

（１） Domestic Non-Life Business

Resolving Social Issues while Creating New Markets and Generating Stable Profit.

• We will enhance our competitiveness in the auto insurance market by increased coverage that meets the needs of our customers. In addition, we have set Green, Cyber, Healthcare, and SME etc. as priority markets, and we will grow by proactively providing products and services that work to resolve social issues.
• We will work to create a resilient society by providing comprehensive solutions to cope with natural disasters including strengthening disaster prevention, mitigation and early recovery efforts in addition to continuing to deliver prompt payment to claims.
• We will invest approximately JPY40 billion in advanced use of digital and AI to further upgrade our business processes and employee efficiency. In the additional time created by these efficiencies we will have our people to focus on delivering the additional value that only people can bring.
• We will use data and advanced analytics to create solutions that go beyond products and help to deal with the increasingly complex and diverse risks we see in the world.

（２） Domestic Life Business

Create New Products and Sales Channels in the Market to Generate a New Path to Growth

• In growth areas such as seniors, health care, wealth creation and SME market we will work to create strategic products that we will deliver through the optimum sales channel .
• While working to create 'speedy and simple customer facing processes' that balance efficiency with quality, we will accelerate the implementation of digitalization to improve customer satisfaction and increase competitiveness.
• In order to adapt to changes in the business environment and grow, we will promote diversity and inclusion among employees and provide the infrastructure and policy to support diverse working styles.

（３） International Business

Group Wide Risk Diversification to Deliver Sustainable Growth of Profit

• In both developed and emerging countries, through disciplined underwriting, we will expand our business portfolio and aim to deliver an annual profit growth of 9% CAGR across the international portfolio.
• In developed countries, we will further increase our underwriting profits, at the same time, in emerging countries, we will continue to strengthen the foundations for future growth.
• We will further diversify our risks across the portfolio, by avoiding duplication and focusing on diversified lines of business and geographical regions to deliver stable profit growth. Additionally, we will leverage the global network and expertise that is within to further realize group synergy.
• Maintaining our disciplined and proven approach to acquisitions, we will continue to look for strategic M&A and business investment opportunities

Please find the key KPIs for each main business line below.

For further detailed information on the Tokio Marine Group Mid-Term Business Plan 2023～ Adapt, Lead, Innovate～please refer to the additional attached documents.

Link to presentation materials, "Tokio Marine Group Business Strategy", of FY 2021 investor relations conference dated May 27, 2021.

https://www.tokiomarinehd.com/en/ir/event/presentation/2021/k82ffv0000009zlr - att/FY2021_IR_conference_e_Main.pdf

Tokio Marine Group

Mid-Term Business Plan 2023

~Adapt, Lead, Innovate~

May 28, 2021

Achieved carbon-neutral for seven consecutive years

111 133

(Thousand ton)

2013	2014	2015	2016	2017	2018	2019
CO2 Emission			CO2 Absorption/Fixation/Reduction