Tokio Marine : Overview of FY2022 2Q Results and Full-Year Projections (2.4MB

2Q FY2022 Results

and

Full-Year Projections

Tokio Marine Holdings, Inc.

November 18, 2022

Table of Contents

Highlight

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

2Q FY2022 Results

• Consolidated Results (Adjusted Net Income)

	・・・・・・・・・・・・・・ 12
- Natural Catastrophes	・・・・・・・・・・・・・・ 13

• Domestic Non-Life (TMNF)

-	Results	・・・・・・・・・・・・・・ 15
-	Net Premiums Written	・・・・・・・・・・・・・・ 16
-	Net Incurred Loss	・・・・・・・・・・・・・・ 17
-	Combined Ratio	・・・・・・・・・・・・・・ 18
-	Asset Management	・・・・・・・・・・・・・・ 19

• Domestic Life (TMNL)

- Results

・・・・・・・・・・・・・・ 20

• International

-	Net Premiums Written	・・・・・・・・・・・・・・ 21
-	Business Unit Profits	・・・・・・・・・・・・・・ 23
-	Results (PHLY)	・・・・・・・・・・・・・・ 25
-	Results (DFG)	・・・・・・・・・・・・・・ 26
-	Results (TMHCC)	・・・・・・・・・・・・・・ 27

◆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	TMK: Tokio Marine Kiln
TMHCC: Tokio Marine HCC	TMSR: Tokio Marine Seguradora

Copyright (c) 2022 Tokio Marine Holdings, Inc.

FY2022 Projections

• • Consolidated (Adjusted Net Income)
    ・・・・・・・・・・・・・・ 29
• Domestic Non-Life (TMNF)

-	Financial Projections	・・・・・・・・・・・・・・ 31
-	Net Premiums Written	・・・・・・・・・・・・・・ 32
-	Net Incurred Loss	・・・・・・・・・・・・・・ 33
-	Combined Ratio	・・・・・・・・・・・・・・ 34
-	Asset Management	・・・・・・・・・・・・・・ 35

• Domestic Life (TMNL)

- Financial Projections

・・・・・・・・・・・・・・ 36

• International

-	Net Premiums Written	・・・・・・・・・・・・・・ 37
-	Business Unit Profits	・・・・・・・・・・・・・・ 39

Economic Solvency Ratio

-	ESR and Sensitivity	・・・・・・・・・・・・・・ 42
-	Target Range of ESR	・・・・・・・・・・・・・・ 43

Reference

-	Consolidated Net Income	・・・・・・・・・・・・・・ 45
-	Definition of KPIs	・・・・・・・・・・・・・・ 47
-	Reconciliation of Adjusted Net Income
		・・・・・・・・・・・・・・ 49
-	Adjusted Net Assets / Adjusted ROE
		・・・・・・・・・・・・・・ 51
-	Reconciliation of Business Unit Profits
		・・・・・・・・・・・・・・ 52
-	Impact of FX Rate Change on the Group's Financial	1
	Results	・・・・・・・・・・・・・・ 53

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Copyright (c) 2022 Tokio Marine Holdings, Inc.

2

Key Messages

Strong

Performance

Maintained

Transient Effect*1

• 2Q results were strong on normalized basis for TMNF, TMNL, and overseas, with progress rate exceeding 50% vs original projections. Especially performance by main overseas entities was steady and exceeded local plan by c. +JPY23.0bn
• Based on the strong performance, full-year projections on normalized basis are revised upwards by +JPY10.0bn to JPY560.0bn
• Transient effect*1 from COVID-19 (Taiwan/Japan) and mainly domestic natural catastrophes*2 is expected to be c. -JPY160.0bn for full-year.
• This includes expected loss in Taiwan of -JPY91.0bn*3 (our share) reflecting the recent increase in COVID-19 infection rate (assuming 44%*4 infection rate)

*1: Natural catastrophes, COVID-19, capital gains in North America, capital gains from sale of business-related equities (for part of sale exceeding JPY100bn), impact of FX, war, and South African floods

*2: Even with Hurricane Ian, the budget for overseas natural catastrophes is expected within the original plan

*3: Includes underwriting profits, etc., other than COVID-19 losses (-JPY96.0bn) *4: Infection rate as of end of October 2022 was 32.1%

Expansion of Shareholder Returns Consistent with Profit Growth

• Based on the strong results despite market events such as COVID-19 and natural catastrophes, JPY100 DPS will be sustained for fiscal 2022 (+18% YoY, JPY300 before stock split)
• Originally announced JPY100.0bn share buybacks for fiscal 2022 will be maintained (JPY50.0bn executed) and buyback of remaining JPY50.0bn has been approved

3

Executive Summary: Top-Line	TBU

• 2Q results were higher-than-expected mainly due to rate increases and expansion of underwriting for overseas and increased premiums for domestic fire insurance, resulting in +18.7% (+10.4% excl. FX) increase in net premiums written and +13.0% (+3.1% excl. FX) in life insurance premiums
• Considering the strong results, full-year projections for net premiums written and life insurance premiums have been revised upward

		Net Premiums Written			Life Insurance Premiums
	2Q Results	Full-Year Projections	2Q Results	Full-Year Projections
+18.7% (excl. FX: +10.4%)			+13.0% (excl. FX: +3.1%)		(billions of JPY)
	4,610.0		1,130.0
			4,150.0			1,030.0
			(YoY excl. FX: +9.1%)		541.0	(YoY excl. FX: +2.8%)
		2,279.8	(YoY excl. FX: +3.8%)		(YoY excl. FX: +0.5%)
				478.9
	1,920.3
			2,561.0		254.9	549.0	529.0
			2,537.0
		1,309.7		273.7
Domestic
1,243.0
Inter-	677.5	970.3	1,612.0	2,049.0	205.4	286.4	482.0	601.0
national
	2021	2022	Original	Revised	2021	2022	Original	Revised
	2Q	2Q	Projections	Projections	2Q	2Q	Projections	Projections
YoY	Domestic	+5.4%	+2.8%	+3.8%		-6.9%	-3.3%	-6.8%
Growth	International	+18.1%	+5.3%	+16.7%		+14.1%	+5.4%	+13.0%
*Excl. FX

[Domestic]	[Domestic]	*All growth excluding FX effects
 Steady performance thanks to increase in fire insurance premiums	 Despite steady sales, premiums declined due to increased
with rate revisions, etc.	cancellations of corporate insurance
 The full-year projections were raised to +3.8% YoY	 The full-year projections are expected to decline -6.8% YoY
(Original projections: +2.8%)	(Original projections: -3.3%)

[International]	[International]
 Strong performance leveraging on market hardening with continued	 Steady performance thanks to rate increases and expansion of
rate increases with strict underwriting discipline and expansion of	underwriting mainly for MSL* at TMHCC and group life/disability
underwriting, etc.	insurance at DFG
 The full-year projections were raised to +16.7% YoY	 The full-year projections were raised to +13.0% YoY
(Original projections: +5.3%)	(Original projections: +5.4%)	4
Copyright (c) 2022 Tokio Marine Holdings, Inc.	*Medical stop-loss Insurance