Tokio Marine : Overview of FY2022 1Q Results (1.6MB)PDF

Overview of 1Q FY2022 Results

August 5, 2022

Table of Contents

Highlight

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

FY2022 1Q Results

-	Consolidated Results (Adjusted Net Income) ・・・ 10
-	Natural Catastrophes	・・・・・・・・・・・・・・・・・・ 11

• Domestic Non-Life (TMNF)

-	Results	・・・・・・・・・・・・・・・・・・ 12
-	Net Premiums Written	・・・・・・・・・・・・・・・・・・ 13
-	Net Incurred Loss	・・・・・・・・・・・・・・・・・・ 14
-	Combined Ratio	・・・・・・・・・・・・・・・・・・ 15

• • Asset Management Results ・・・・・・・・・・・・・・・・・・ 16
• Domestic Life (TMNL)

- Results

・・・・・・・・・・・・・・・・・・ 17

• International

-	Net Premiums Written	・・・・・・・・・・・・・・・・・・ 19
-	Business Unit Profits	・・・・・・・・・・・・・・・・・・ 21
-	Results (PHLY)	・・・・・・・・・・・・・・・・・・ 23
-	Results (Delphi)	・・・・・・・・・・・・・・・・・・ 24
-	Results (TMHCC)	・・・・・・・・・・・・・・・・・・ 25

Copyright (c) 2022 Tokio Marine Holdings, Inc.

Reference

-	Consolidated Net Income	・・・・・・・・・・・・・・・・・・	28
-	Definition of KPIs	・・・・・・・・・・・・・・・・・・	29

• Reconciliation of Adjusted Net Income ・・・・・・・・ 31
• Reconciliation of Business Unit Profits ・・・・・・・・・ 32
• Impact of FX Rate Change on the Group's Financial

Results

・・・・・・・・・・・・・・・・・・ 33

◆Abbreviations used in this material

TMNF: Tokio Marine & Nichido Fire Insurance Co., Ltd.

TMNL: Tokio Marine & Nichido Life Insurance Co., Ltd.

PHLY: Philadelphia

DFG: Delphi

TMHCC: Tokio Marine HCC

TMK: Tokio Marine Kiln

TMSR: Tokio Marine Seguradora

1

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Copyright (c) 2022 Tokio Marine Holdings, Inc.

2

*1: Rate is as of Jun. 30, 2022. Approx. JPY20.0bn with rate as of Mar. 31, 2022

*2: Excluding impact of natural catastrophes, South African floods, FX, and COVID-19

Key Messages

Strong Results Maintained on Normalized Basis

Transient Effect

of COVID-19 in

Taiwan

Full Year

Projections

Sustained

• Progress by main overseas entities exceeded projections with strong underwriting and investment performance (1Q results c. +JPY8.0bn vs local plan, 1H results to further upswing of approx. +JPY22.0bn*1 vs local plan)
• Domestic non-life YoY progress rate may appear low, but 40% progress rate excl. transient effects etc.*2 is on schedule comparing the 5Y average

progress rate of 38%

• Sudden change in COVID-19 policy by the Taiwanese government led to significant COVID-19 related losses for the entire non-life insurance market in Taiwan
• Our group company in Taiwan, Tokio Marine Newa Insurance, will report net loss of -JPY53.9bn (our share) in 2Q mainly due to COVID-19 claims
• Despite issues such as transient effect of COVID-19 in Taiwan and how to incorporate the resurgence of COVID-19 outside of Taiwan, full year projections are sustained at this point based on comprehensive consideration including the strong performance mainly in overseas and that it is before the main natural catastrophe season

3

Executive Summary: Top-Line	TBU

• Strong performance with increase of +11.2% (+7.0% excl. FX) in net premiums written and +8.3% (+3.5% excl. FX) increase in life premiums, driven by rate increases and expansion of underwriting leveraging on the overseas hard market
• TMNF's private insurance total premium written (+3.5% increase) is steady in line. Domestic life insurance premium is also on schedule as TMNL is aiming to accelerate sales from 2Q

Net Premiums Written

Life Insurance Premiums

*All growth excluding FX effects, billions of JPY

*All growth excluding FX effects, billions of JPY

+7.0% (full-year projections +3.8%)

+3.5% (full-year projections +0.5%)

965.3

1,073.1

254.4

234.9

650.4

639.5

123.0

134.1

Domestic

International

326.0

422.8

131.5

101.0

2021

2022

2021

2022

1Q

1Q

1Q

1Q

+1.7%

(full-year projections +2.8%)

-8.3%

(full-year projections -3.3%)

YoY

Domestic

YoY

Domestic

Growth

International

+16.2%

(full-year projections +5.3%)

Growth

International

+17.7%

(full-year projections +5.4%)

[Domestic]

• The impact of rate decrease for auto was covered by adding riders and increasing the number of policies, product and rate revisions for fire and expansion in specialty sales, etc.
• Total private insurance is steady in line with projections (total net premiums written was below projections due to decline in CALI from fall in new vehicle sales)

[Domestic]

• Declined due to increased cancellations of corporate insurance despite increase in new policies
• Full year progress is steady with aim of accelerated sales from 2Q

[International]

• Strong results exceeded projections leveraging on hard market with continued rate increases and expansion of underwriting with strict discipline

Copyright (c) 2022 Tokio Marine Holdings, Inc.

[International]

• Strong results exceeded projections with rate increases and expansion of underwriting mainly for MSL* at TMHCC and

group life/disability insurance at DFG	4
*Medical Stop-loss Insurance