Tokio Marine : Power to Overcome a Challenge (1.1MB)PDF

Tokio Marine Insights:

Power to Overcome a Challenge

June 28, 2022

Power to overcome a challenge

Today's speakers from PHLY and TMK

John Glomb	Brad Irick

President &

Chief Executive Officer

Chief Executive Officer

Copyright (c) 2022 Tokio Marine Holdings, Inc.	1

PHLY

JOHN GLOMB

PRESIDENT & CHIEF EXECUTIVE OFFICER

2

PHLY's Trends

Measures

Return to Growth Trend

Top-line (Net Premium Written)

(USD mn)

• Achieve rate increases to
  Rate Increases cover loss-cost including

		social inflation
Enhance	•	Significant reduction of
disciplined		marginal policies and high
underwriting		limit policies (> $10M)
Mitigate	•	Target accelerated settlements
inflation risks		on large (> $500K) claims
[Reference]
Implemented	•	In FY2019, established $273M
measures		additional prior accident year
Reserves
	reserves
provision

3,569

3,443

3,360 3,372

3,250

2018 2019 2020 2021 2022 Projection

Bottom-line (Business Unit Profit) (Record profit)	(USD mn)
	430	433
395	386

247

2018 2019 2020 2021 2022 Projection

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Rate Increases & Capacity Management

Rate Increases:

2021	Package	Umbrella
Plan	+8.5%	+20.0%

12.0%

Philadelphia

Actual	+10.8%	+20.5%

9.0%

6.0%

3.0%

U.S. P&C market average*1

Capacity Management:

201920202021

*1: Source: Willis Towers Watson

Significant reduction of high limit policies

• Umbrella Limit: 90-95% of all inforce policies ≤ $5M, almost 100% ≤ $10M
• SAM*2 Limit: Number of policies with $10M or higher SAM Limits,

100+ (in 2018) → Less than 10

*2: Sexual Abuse and Molestation

Copyright (c) 2022 Tokio Marine Holdings, Inc.	4