Tokio Marine : Overview of financial results - July to September (2Q)

2Q FY2020 Results and Full-Year Projections

Tokio Marine Holdings, Inc.

November 19, 2020

Table of Contents

Highlight

• Top-lineResults/Projections and

	Bottom-line Results	・・・・・・・・・・ 3
-	Bottom-line Projections	・・・・・・・・・・ 4
-	Impacts of COVID-19	・・・・・・・・・・ 5
- Business Unit Profits Projection	・・・・・・・・・・ 6
-	Natural Catastrophes	・・・・・・・・・・ 7

2Q FY2020 Results

• Domestic Non-Life

-	TMNF Results	・・・・・・・・・・ 9
-	TMNF NPW	・・・・・・・・・・ 10
- TMNF Net Incurred Loss	・・・・・・・・・・ 11
-	TMNF Combined Ratio	・・・・・・・・・・ 12

• • TMNF Asset Management Results ・・・・・・・・・・ 13
• Domestic Life

- TMNL Results

・・・・・・・・・・ 14

• International Insurance Business

-	Net Premiums Written	・・・・・・・・・・ 15
-	Business Unit Profits	・・・・・・・・・・ 16
-	Philadelphia	・・・・・・・・・・ 17
-	Delphi	・・・・・・・・・・ 18
-	TMHCC	・・・・・・・・・・ 19

Copyright (c) 2020 Tokio Marine Holdings, Inc.

FY2020 Projections

•	Domestic Non-Life: TMNF	・・・・・・・・・・・・・ 21
•	Domestic Life: TMNL	・・・・・・・・・・・・・ 22

• International Insurance Business

-	Net Premiums Written	・・・・・・・・・・・・・ 23
-	Business Profit Units	・・・・・・・・・・・・・ 26

Economic Solvency Ratio

-	ESR Target Range	・・・・・・・・・・・・・ 30
-	ESR and Sensitivity	・・・・・・・・・・・・・ 31

Reference

- Definition of Terms

・・・・・・・・・・・・ 33-34

• Reconciliation of Adjusted Net Income・・・・・・・・ 35-36
• Adjusted Net Assets/Adjusted ROE ・・・・・・・・・・ 37

- Business Unit Profits/Reconciliation ・・・・・・・・・ 38-39

• Domestic Non-Life: TMNF P/L Projections ・・・・ 40

- Domestic Non-Life: NF Results	・・・・・・・・・・ 41
- Domestic Non-Life: NF Projections	・・・・・・・ 42
◆Abbreviations used in this material
TMNF	︓Tokio Marine & Nichido Fire Insurance Co., Ltd.
NF	︓Nisshin Fire & Marine Insurance Co., Ltd.
TMNL	︓Tokio Marine & Nichido Life Insurance Co., Ltd.
TMHCC	︓Tokio Marine HCC	1
TMK	︓Tokio Marine Kiln

Highlight

Copyright (c) 2020 Tokio Marine Holdings, Inc.

2

Top-line Results / Projections and Bottom-line Results

Top-line

Consolidated Domestic Life

Domestic International Non-Life

Stable growth of +0.9% YoY is projected for full-year net premiums written on a local currency basis mainly due to rate increase in North America.

Life insurance premiums are projected to fall by -6.7% mainly due to increased surrender in corporate insurance and the impact of the stronger yen

• Net Premiums Written

2Q result : ¥1,809.5bn (+0.1% YoY)

Full-year projections : ¥ 3,550.0bn (-1.4% YoY)

• Life insurance premiums

2Q result : ¥469.4bn (-3.2% YoY)

Full-year projections : ¥ 920.0bn (-6.7% YoY)

• In 2Q, NPW rose 0.1% YoY (or 4.4% excluding FX effects) as an increase in NPW (+3.8%) resulting from the implementation of overseas growth strategies and the rate increase offset a drop in NPW mainly caused by the lowering of CALI premiums in Japan (-1.6%) and the impact of the stronger yen (-¥21.8bn).
• Full-yearNPW was revised downward by ¥10bn from August projection due to the impact of the stronger yen (- approx. ¥32.0bn) despite the upward revision in Japan and overseas.
• In 2Q, life insurance premiums fell 3.2% YoY due to the increased surrender in corporate insurance and other factors in the domestic business. These cancelled out the growth in the international business mainly attributable to the rate increase by TMHCC.
• Full-yearlife insurance premiums were revised upward by ¥10bn from August projection by stable rate increase in TMHCC, despite the impact of the stronger yen (- approx. ¥8.0bn)

Bottom-line (2Q results)

Consolidated net income fell ¥54.2bn YoY to ¥62.3bn mainly due to the impact of COVID-19 (hereinafter, "COVID-19 Impacts").

-¥54.2 YoY

Domestic Non-Life*3

+41.2

Natural	Other
+15.9
catastrophes
+12.3

116.6							Mainly due to
							increase in
	COVID-19 Impacts +13.0	net premiums
	earned for
	Underwriting +17.3	auto and fire
	insurance
	Investment	-4.3

Domestic Life*3

(billions of JPY)

International Insurance*3

+9.5

Financial and

-107.3

general etc.

(Of this, COVID-19

+2.3

Impacts +0.4）

Mainly due to

decrease in

Natural

Amortization of

system

Pure's goodwill

development

catastrophes

and other

+1.4

intangible fixed

expenses

Other

assets -10.3

62.3

+0.5

COVID-19 Impacts

-86.0

Temporary

Underwriting -52.7	factor*4
-12.9
Investment -33.3

2Q19

2Q20

*3 Include consolidation adjustments. Gains and losses on overseas business such as group reinsurance recorded by TMNF are included in international insurance.	3
Copyright (c) 2020 Tokio Marine Holdings, Inc. *4 Impairment loss on equities of unconsolidated overseas subsidiaries, etc. and reaction to the previous year's acquisition of a US insurance agent as a subsidiary.

Bottom-line Projections

Consolidated Domestic Life

Domestic

Non-Life

International

Full-year consolidated net income was revised upward by ¥25bn from August projection mainly due to the improved COVID-19 Impacts and an increase in net premiums earned, which will more than offset an increase in natural catastrophes in Japan and impairment losses on equities of overseas subsidiaries.

Adjusted net income was revised upward by ¥22bn reflecting the exclusion of an impact of catastrophe loss reserves and impairment losses on equities of overseas subsidiaries, etc.

• Consolidated net income

+25.0 from August projection

Domestic Non-Life*1

+17.0

COVID-19 Impacts +13.0

	domestic Life*1		International Insurance*1	Financial &
	+6.0			-3.1	general etc.	(billions of JPY)
					+5.1
				Natural
COVID-19			catastrophes
Other	+5.0		200.0

Underwriting +11.0 Investment +2.0

Catastrophe

Other

Impacts

+4.0

Other

+2.0

+2.2

+11.2

175.0

loss reserves

+13.3

Mainly gains on	COVID-19 Impacts ±0
sales of overseas	Underwriting -8.0
bonds
Investment +8.0

Impairment loss

on equities of

overseas

Natural catastrophes

-20.5

Mainly an increase in net premiums earned in fire and specialty

subsidiaries, etc.

-10.4

2020 projections	2020 projections
（August）	（revised）

• Adjusted net income

+22.0 from August projection

Financial &

Domestic Non-Life*1

domestic Life*1

International Insurance*1

(billions of JPY)

general etc.

COVID-19 Impacts +21.0

+0.5

Natural

Underwriting +19.0

catastrophes

Investment

+2.0

COVID-19

Other

332.0

+5.0

Impacts

+4.0

Other

+2.0

Other

+11.2

310.0

Mainly gains on

COVID-19 Impacts ±0

-1.2

Underwriting -8.0

sales of overseas

Natural

Mainly an increase in net premiums

bonds

Investment +8.0

catastrophes

-20.5

earned in fire and specialty

2020 projections

*1 Include consolidation adjustments. Gains and losses on overseas business such as group reinsurance recorded by TMNF are included in international insurance.

2020 projections

（August）

*2 Include adjustment from consolidated net income to adjusted net income.

（revised）

4

Copyright (c) 2020 Tokio Marine Holdings, Inc.

Impacts of COVID-19

COVID-19 impacts on underwriting and investment are improving with the projected negative impact of ¥76.0bn, which is ¥24.0bn less than August projections.

Impacts on adjusted net income (billions of JPY; estimates)

August	Revised	Change	Main reason for change
projections	projections

Life-Non Domestic

Underwriting

Investment

+5.0	+24.0	+19.0	 Projected fall in net incurred losses in auto and
			P.A. insurance
-6.0	-4.0	+2.0	 Decrease in hedging costs due to the contraction
in interest rate differentials between Japan and
			overseas

International

Underwriting

Investment

-57.0

-65.0

-8.0  Expected increase in trade credit insurance, etc.

-42.0	-34.0	+8.0  Decrease in losses on the default of credit risk
		assets

			+1.0	+3.0	+2.0	 Decrease in hedging costs due to the contraction
Domestic Life	in interest rate differentials between Japan and
						overseas
	Total	-100.0	-76.0	+24.0

	※ Plus and minus of the figures in above table correspond to positive and negative to profit respectively	5
Copyright (c) 2020 Tokio Marine Holdings, Inc.

Business Unit Profits Projection

Business unit profit of Domestic Non-life was revised upward by ¥15.0bn from August projection due to the improved COVID-19 Impacts (+¥21.0bn) and increased net premiums earned despite increased natural catastrophe.

In Domestic Life, no change was made to August projection as the business is progressing smoothly.

In International Insurance, business unit profit was revised upward by ¥8.0bn from August projection mainly due to the improved COVID-19 Impacts (+¥6.0bn*1) and a fall in natural catastrophes.

FY2020 projections

August	Revised	Change

Domestic	¥135.0bn	¥150.0bn	+¥15.0bn
Non-life

Domestic	¥164.0bn	¥164.0bn	-
Life*2

International*1	¥67.0bn		¥75.0bn		+¥8.0bn

Main reasons for change

• Improved COVID-19 Impacts
• Increase in net premiums
  earned (fire/specialty)

• Increase in natural catastrophes

(See p.21 for details)

No change to August projection as the business is progressing as planned

(See p.22 for details)

• Improved COVID-19 Impacts
• Fall in natural catastrophes  Stronger yen
  (See p.26 for details)

*1	The difference with impacts on adjusted net income is attributable to the different methods of profit calculation in life segment (business unit profits:
	based on an increase in EV; adjusted net income: based on financial accounting).
*2	Increase in EV for life insurance	6
Copyright (c) 2020 Tokio Marine Holdings, Inc.

Natural Catastrophes

Full-year projections are expected to ¥128.5bn (before tax) due to an increase in natural catastrophes in Japan.

■ Net incurred losses relating to natural catastrophes (business unit profit basis; billions of JPY)

	FY2019	FY2020	YoY Change*1
Before tax	2Q Results	2Q Results
Domestic	89.6	72.5	-17.1
Non-life
International	10.2	8.6	-1.5
Total	99.8	81.1	-18.6
After tax*2
Domestic	64.6	52.2	-12.3
Non-life
International	8.0	6.8	-1.2
Total	72.7	59.0	-13.6

FY2020 Full-year Projections	Difference*1
(1) August	(2) Revised	((2) - (1))
58.0	86.5	+28.5
49.0	42.0	-7.0
107.0	128.5	+21.5

41.8	62.3	+20.5
38.0	33.0	-5.0
79.8	95.3	+15.5

• Major natural catastrophes in Japan in 2Q *Natural catastrophes larger than a certain size

		Gross incurred losses*3
Typhoon Haishen	¥34.3bn
Heavy rains in July	¥31.8bn
*1	"+" means negative for profits, while "-" means positive for profits.
*2	After-tax figures are estimates.
*3	Before tax and total of Domestic Non-life.	7
Copyright (c) 2020 Tokio Marine Holdings, Inc.

2Q FY2020 Results

	Applied FX rate (USD/JPY)
	FY2019	FY2020
End of September	JPY 107.92	JPY 105.80
(Domestic Non-Life & Life)	(+JPY3.07 from Mar. 2019)	(+JPY3.03 from Mar. 2020)
End of June	JPY 107.79	JPY 107.74
(International)	(+JPY3.21 from Dec. 2018)	(+JPY1.82 from Dec. 2019)

Copyright (c) 2020 Tokio Marine Holdings, Inc.	8

Domestic Non-Life 1: TMNF Results

Consolidated Domestic Life

Domestic

Non-Life

International

Underwriting profit grew by ¥35.6bn YoY to -¥4.8bn mainly due to a fall in net incurred losses.

Net investment income and other rose by ¥12.2bn YoY to ¥95.7bn mainly due to an increase in dividends from overseas subsidiaries.

As a result, net income grew by ¥21.4bn YoY to ¥62.9bn.

(billions of JPY)

				FY2019	FY2020
				2Q	2Q	COVID-19	YoY
				Results	Results
				Impacts	Change
	Underwriting profit/loss	- 40.5	- 4.8	1.0	35.6
		(Underwriting profit/loss: excluding provision/reversal of	- 6.0	36.5		42.5
		catastrophe loss reserves)
		Net premiums written (Private insurance)	1,001.9	1,004.0		2.1
		Net premiums earned (Private insurance)*1	957.2	983.4		26.1
		Net incurred losses (Private insurance)*2	- 635.1	- 591.2		43.9
			Natural catastrophe losses	- 82.2	- 66.9		15.3
			Provision/Reversal of foreign currency denominated	2.8	2.9		0.1
			outstanding claims reserves
			Other than above	- 555.7	- 527.3		28.4
		Business expenses (Private insurance)	- 313.9	- 313.4		0.5
		Provision/Reversal of catastrophe loss reserves	- 34.4	- 41.3		- 6.9
			Auto	- 10.4	- 17.5		- 7.0
			Fire	- 10.0	- 15.6		- 5.6
		Provision/Reversal of nat-cat underwriting reserves	-	- 8.4		- 8.4
		Provision/Reversal of underwriting result for the first year*3	- 11.7	- 32.7		- 21.0
	Net investment income (loss) and other	83.5	95.7	- 6.0	12.2
	Ordinary profit/loss	45.4	93.9		48.4
	Extraordinary gains/losses	0.2	- 14.2		- 14.5
	Net income/loss	41.5	62.9	- 4.0	21.4
	*1 Excluding provision for nat-cat underwriting reserves
	*2 Including loss adjustment expenses

*3 provision for the general underwriting reserves excluding provision for unearned premiums

(Notes)

1. Plus and minus of the figures in the above table correspond to positive and negative to profit respectively
2. Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• Underwriting Profit:
• • Grew by ¥35.6bn YoY to -¥4.8bn mainly due to the following factors:
  • Net premiums written (Private insurance) (see P.10 for details):
  • • Increased in auto insurance due to rate revision
  • Net incurred losses (Private insurance) (see P.11 for details):
  • • Decreased in auto and P.A. insurance due to fall in accident frequency
  • Catastrophe loss reserves:
  • • Increase in provision due to the reversal effect of takedown in 2Q FY2019
  • Natural catastrophe underwriting reserves:
  • • Provision with the upward trend in the fire loss ratio
  • Provision of underwriting result for the first year:
  • • Increase due to a drop in net incurred losses in auto

insurance

• • Underwriting result for the first year is underwriting reserve posted by deferring a profit remained for the year of the contract to the following fiscal year.
• Net Investment Income and Other (see P.13 for details):
• • ¥12.2bn increase YoY to ¥95.7bn mainly due to an increase in dividends from overseas subsidiaries
• Extraordinary Gains / Losses:
• • Decreased by ¥14.5bn YoY to -¥14.2bn mainly due to valuation losses of affiliate equities and a reaction to sales gains on affiliate equities posted in 2Q FY2019
• Net Income:
• • ¥21.4bn increase YoY to ¥62.9bn due to the above factors, etc.

9

Domestic Non-Life 2: TMNF NPW

Consolidated Domestic Life

Domestic

Non-Life

International

Net premiums written (private insurance) increased by ¥2.1bn YoY to ¥1,004bn driven by auto insurance rate revision, although P.A. and some other lines declined due to COVID-19 Impacts.

For all lines, NPW fell by ¥17.9bn YoY to ¥1,127.4bn due to factors such as the impact of rate reduction in CALI in April 2020.

(billions of JPY, except for %)

	FY2019	FY2020
	2Q	2Q	YoY
	Results	Results
	Change	%
Fire	164.4	164.3	- 0.0		-0.0%
Marine	33.3	31.8	-1.4		-4.5%
P.A.	101.8	91.4	-10.4		-10.2%
Auto	536.3	546.8	10.4		2.0%
CALI	143.1	123.0	-20.0		-14.0%
Other	166.3	169.8	3.5		2.1%
Total	1,145.4	1,127.4	-17.9		-1.6%
o/w Private insurance	1,001.9	1,004.0	2.1		0.2%
Total

• Fire:
• • Increase in premiums ceded
  • Grew due to rate revision in October 2019
• Marine:
• • Fell due to less movements of goods following COVID-19
• P.A.:
• • Fell in travel insurance due to COVID-19
• Auto:
• • Increase driven by rate revision in January 2020, etc.
  • Decrease in new vehicles sales due to COVID-19
• CALI:
• • Fell due to rate reduction in April 2020
  • Decrease in new vehicles sales due to COVID-19
• Other:
• • Grew due to large contracts in movable comprehensive insurance, etc.
  • Fell in event cancellation insurance, etc. due to COVID-19

Copyright (c) 2020 Tokio Marine Holdings, Inc.	10

Domestic Non-Life 3: TMNF Net Incurred Loss

Consolidated Domestic Life

Domestic

Non-Life

International

Net incurred losses fell by ¥43.9bn YoY to ¥591.2bn mainly due to lower accident frequency in auto and P.A. insurance as a result of COVID-19 Impacts (-¥36.0bn) and a drop in net incurred losses relating to natural catastrophes (-¥15.3bn).

			(billions of JPY, except for %)
	FY2019		FY2020
	2Q	Nat-Cat	2Q	Nat-Cat	YoY
	Results	Results
	losses	losses	Change	%
Fire	142.3	72.0	144.4	58.9	2.1	1.5%
Marine	26.6	0.9	20.6	1.1	- 6.0	-22.5%
P.A.	47.1	-	36.9	-	- 10.1	-21.6%
Auto	324.7	6.8	281.8	5.0	- 42.9	-13.2%
Other	94.3	2.4	107.3	1.8	13.0	13.8%
Total	635.1	82.2	591.2	66.9	- 43.9	-6.9%

• Fire:
• • Increase in large losses overseas due to COVID-19 Impacts, etc.

• • Decrease in natural catastrophes
• Marine:
• • Decrease in small size losses for both hull and cargo
• P.A.:
• • Lower accident frequency due to COVID- 19 related stay at home policies
• Auto:
• • Lower accident frequency due to COVID- 19 related stay at home policies
• Other:

• Increase in net incurred losses in overseas trade credit insurance due to COVID-19 Impacts

(Notes)

Including loss adjustment expenses in the above table

Copyright (c) 2020 Tokio Marine Holdings, Inc.	11

Domestic Non-Life 4: TMNF Combined Ratio

Consolidated Domestic Life

Domestic

Non-Life

International

E/I loss ratio fell by 6.2pts YoY to 60.1% mainly due to a fall in net incurred losses from the impacts of COVID-19.

Expense ratio declined by 0.1pt YoY to 31.2% as a drop in corporate expense ratio offset a rise in agency commission ratio.

Combined ratio improved by 6.4pts YoY to 91.3%.

Combined Ratio	110.5%
(Private insurance:
E/I basis)	97.7%
E/I Loss Ratio*1	91.3%

Impact of natural catastrophes (pt)

21.2 8.6 6.8

Expense Ratio

(billions of JPY)

		FY2018	FY2019	FY2020
		2Q	2Q	2Q
		YoY
		Results	Results	Results
		Change
Net premiums written	959.1	1,001.9	1,004.0	2.1
Net premiums earned*2	943.6	957.2	983.4	26.1
Net incurred losses*1	742.3	635.1	591.2	- 43.9
Business expenses	305.5	313.9	313.4	- 0.5
	Corporate expenses	112.5	111.3	103.8	- 7.4
	Agency commissions	192.9	202.6	209.5	6.8

*1 Including loss adjustment expenses

*2 Excluding provision for nat-catunderwriting reserves Copyright (c) 2020 Tokio Marine Holdings, Inc.

• E/I Basis Loss Ratio:
• • Fell for all lines excluding Other due to the impacts of

COVID-19 related stay at home policies and a reduction in natural catastrophes

• • Increased by 4.6pts in Other following an increase in net incurred losses in overseas trade credit insurance due to the impacts of COVID-19
• Expense Ratio:

• Corporate expense ratio fell by 0.8pt due to a fall in non-personnel expenses

• • Agency commission ratio rose by 0.6pt due to the effect of consumption tax hike, etc.
• Combined Ratio:

Improved by 6.4pts YoY to 91.3% due to the above and other factors

E/I Loss Ratio*1

	FY2019	FY2020
	2Q	2Q
	YoY
	Results	Results
	Change
Fire	98.7%	94.6%	- 4.1pt
Marine	82.1%	60.2%	- 22.0pt
P.A.	54.5%	45.0%	- 9.5pt
Auto	61.0%	51.8%	- 9.1pt
Other	58.4%	63.0%	4.6pt
Private insurance	66.4%	60.1%	- 6.2pt
Total

12

Domestic Non-Life 5: TMNF Asset Management Results

Consolidated Domestic Life

Domestic

Non-Life

International

Net investment income and other increased by ¥12.2bn YoY to ¥95.7bn mainly because of an increase in dividends income from overseas subsidiaries.

(billions of JPY)

					FY2019	FY2020
					2Q	2Q	COVID-19	YoY
					Results	Results	Impacts	Change
Net investment income and other	83.5	95.7	- 6.0	12.2
	Net investment income	102.3	112.1	- 6.0	9.8
		Net interest and dividends income	57.8	63.0	- 7.0	5.2
			Interest and dividends	77.5	81.2		3.7
					37.1	30.9		- 6.2
				Dividends from domestic stocks
				Dividends from foreign stocks	10.4	23.7		13.2
				Income from domestic bonds	10.2	8.6		- 1.6
				Income from foreign bonds	2.3	1.3		- 0.9
				Income from other domestic securities*1	2.1	0.2		- 1.9
				Income from other foreign securities*2	9.4	10.4		1.0
			Transfer of investment income	- 19.7	- 18.1		1.5
			on deposit premiums
		Net capital gains	44.5	49.1	1.0	4.5
			Gains/Losses on sales of securities	57.9	56.8		- 1.0
			Impairment losses on securities	- 2.5	- 2.9		- 0.4
				Impairment losses on domestic stocks	- 2.2	- 1.1		1.0
			Gains/Losses on derivatives	- 7.8	- 5.4		2.4
			Foreign exchange gains/losses	- 3.2	0.1		3.3
			Other investment income and expenses	0.2	0.1		- 0.1
			Others	- 0.0	0.3		0.3
	Other ordinary income and expenses	- 18.8	- 16.3		2.4

*1 Income from domestic securities excluding domestic stocks and domestic bonds. *2 Income from foreign securities excluding foreign stocks and foreign bonds.

Note: Plus and minus of the figures in the above table correspond to positive and negative to profit respectively.

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• Net interest and dividends income:

• Decrease in dividends income from domestic equities

• • Increase in dividends income from overseas subsidiaries
• Net capital gains:
• • Decrease in losses on derivatives due to improved hedging cost
  • The reversal effect of FX losses on USD deposits posted in FY2019

¥57.0bn capital gains from sales of business-related equities, ¥2.0bn increase YoY

(Sales of business-related equities was ¥72.0bn)

13

Domestic Life: TMNL Results

Consolidated Domestic Life

Domestic

Non-Life

International

New policies ANP moved flat YoY as the strong sales of new medical insurance offset the impact of the self-imposed suspension of face-to-face sales activities during the COVID-19 pandemic.

Net income rose by ¥9.1bn YoY to ¥22.3bn mainly due to a reaction to an increase in system development expenses in 2Q FY2019 and a drop in hedging cost.

（Billions of JPY）

			FY2019	FY2020
			2Q	2Q	YoY
			Results	Results	Change	%
	New policies ANP	18.4	18.4	- 0.0			- 0.1%
	In-force policies ANP	844.9	826.4	- 18.5			- 2.2%
			FY2019	FY2020
			2Q	2Q	COVID-19		YoY
			Results	Results	Impacts		Change
	Ordinary income	481.8	488.6				6.8
		Insurance premiums and other	422.3	405.8				- 16.4
	Net income	13.2	22.3	0.4			9.1
	Ordinary profit	15.6	29.9				14.2
		(-) Capital gains / losses	- 5.3	- 2.7				2.6
		(-)Non-recurring income / losses	- 0.2	- 0.6				- 0.3
	Core operating profit	21.3	33.3	- 0.4			11.9
			FY2019	FY2020
			2Q	2Q	YoY
			Results	Results	Change
	Increase in MCEV*	- 51.4	145.6	197.1
		Value of new business +	30.2	34.0	3.8
		Existing business contribution
	* Excluding capital transactions

• New Policies ANP

• Impact of the self-imposed suspension of face-to-face sales activities during the COVID-19 pandemic

• • Strong sales of new medical insurance targeting seniors (hereinafter, the "New Product")
• In-forcePolicies ANP

• • Impact of a reduction in in-force policies caused by increased surrender, etc. which exceeded an increase in new policies, in corporate insurance (In-force policies ANP were up 2.1% YoY excluding corporate insurance)
• Net Income
• • Drop in business expenses due to factors such as a reaction to the increased system development cost in 2Q FY2019
  • Improved capital gains / losses due to a reduction in hedging cost, etc.
• Business Unit Profits (Increase in MCEV)
• • Higher yen interest rates and reaction to the lower yen interest rates in 2Q FY2019

Copyright (c) 2020 Tokio Marine Holdings, Inc.	14

International 1 : Net Premiums Written

Consolidated Domestic Life

Domestic	International
Non-Life

NPW almost moved sideways YoY on a local currency basis as the growth measures taken offset the reduction caused by the impact of COVID-19 (approx. - ¥30bn) and the underwriting practice focusing on profitability. In North America, NPW rose 3.1% YoY on a local currency basis or 6.6% excluding the impact of COVID-19, capturing the hardening market.

					(billions of JPY, except for %)	-
		FY2019	FY2020
		2Q	2Q	YoY
		Results	Results		(Ref.)
	Applied FX rate	As of end	As of end				YoY %
	Jun. 2019	Jun. 2020	Change	％		(Excluding
	(USD/JPY)	JPY 107.7	JPY 107.7				FX effects*4)
	North America*1	550.7	567.2	16.4	3.0%		3.1%
	Philadelphia	179.9	170.1	- 9.7	-5.4%		-5.4%
	Delphi	135.7	144.1	8.3	6.2%		6.2%
	TMHCC	195.6	216.4	20.7	10.6%		10.7%
	Europe & Middle East &	93.6	79.3	- 14.2	-15.2%		-8.5%	-
	Africa*2
	South &	67.7	49.0	- 18.6	-27.6%		2.6%
	Central America
	Asia & Oceania	91.9	87.2	- 4.6	-5.1%		-2.9%
								-
Total Non-Life*3	812.7	782.9	- 29.8	-3.7%		-0.0%
Life	48.3	45.9	- 2.3	-4.9%		-2.0%
								-
Total	861.1	828.9	- 32.1	-3.7%		-0.1%

*1: North American figures include European business of TMHCC, but do not include North American business of TMK.

*2: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.

*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.

North America (See P. 17-19 for details)

• Philadelphia: Although premiums were raised for the renewal book (+9.9%), NPW fell due to the impact of COVID-19 and the underwriting practice focusing on profitability

• Delphi: NPW rose thanks to the expanded underwriting of non-life book
• TMHCC: Despite the impact of COVID-19, NPW grew mainly due to the rate increase in medical stop-loss (+23.5% on an effective rate change basis, including higher deductibles effect) and the expanded underwriting of segments outside the U.S.

Europe, Middle East & Africa

• Despite the rate increase in Lloyd's, NPW fell due to the impact of the stronger yen and changes made to the managerial accounting rules applied to Hollard (-¥10.7bn).

South & Central America

• Despite the expanded underwriting of corporate products, NPW declined due to the impact of the stronger yen.

Asia & Oceania

• NPW shrank due to the impact of the stronger yen and COVID-19.

*4: Excluding the FX impact for conversion to the Japanese yen.

The above figures of International Insurance Business are the total of foreign branches of TMNF, equity method investees,

and non-consolidated companies, etc., and are aligned with the disclosure format of our IR materials from before. (The same applies below)

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• Life
• • Despite an increase in Thailand, NPW fell due to the impact of COVID-19 and the stronger yen.

15

International 2 : Business Unit Profits

Consolidated Domestic Life

Domestic	International
Non-Life

Business unit profits shrank by ¥66.5bn mainly due to the impact of COVID-19(-¥73.1bn).

Of the ¥73.1bn reduction, -¥40bn*1 was related to underwriting (approx. -¥36.0bn for Event Cancellation and Business Interruption total) and -¥33.1bn was related to investment.

(billions of JPY, except for %)

		FY2019	FY2020
		2Q	2Q
		Results	Results	YoY
		As of end	As of end
	Applied FX rate	Jun. 2019	Jun. 2020	Change	％
	(USD/JPY)
	JPY 107.7	JPY 107.7
	North America*2	80.8	34.2	- 46.6		-57.6%
	Philadelphia	18.8	13.6	- 5.1		-27.6%
	Delphi	37.8	10.2	- 27.5		-72.9%
	TMHCC	21.6	8.0	- 13.6		-62.9%
	Europe & Middle East &	4.2	- 7.7	- 11.9		-284.1%
	Africa*3
	South &	6.7	5.3	- 1.4		-22.0%
	Central America
	Asia & Oceania	8.4	9.1	0.7		8.7%
Total Non-Life*4	101.9	42.4	- 59.4		-58.3%
Life	6.4	- 3.9	- 10.4		-162.1%
Pure	-	3.9	3.9		-
Total	102.6	36.1	- 66.5		-64.8%

(Ref.) YoY %

(Excluding FX effects*5)

-57.6%

-27.6%

-72.9%

-62.9%

-295.4%

10.7%

9.4%

-57.4%

-162.7%

-

-63.7%

- North America (See P. 17-19 for details)

 Profits decreased mainly due to the impact of COVID-19,

although net incurred losses related to natural catastrophes

fell and profitability improvement efforts had a positive

impact

- Europe, Middle East & Africa

 Although FX gains/losses improved in Europe, profits shrank

due to the impact of COVID-19

- South & Central America

 Profits rose on a local currency basis thanks to factors such as

a decline in car accidents due to COVID-19

- Asia & Oceania

 Profits grew thanks to factors such as a decline in car

accidents due to COVID-19 in Asia

- Life*6

 Profits fell mainly due to the reaction to the rise in share

prices in the previous year in Singapore

- Pure

 Profits grew thanks to the new consolidation (recorded for

*1: The difference with the impact of COVID-19 on consolidated net income (-¥52.7bn) on P.3 is attributable to the impact on TMNF's international insurance business for Group reinsurance and so on (which was reflected in the 2Q consolidated net income and will be reflected in the 3Q business unit profits).

*2: North American figures include European business of TMHCC, but do not include North American business of TMK.

*3: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.

*4: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.

*5: Excluding the FX impact for conversion to the Japanese yen.

*6: Includes the impact of changes made to the managerial accounting rules applied to Singaporean life business (-¥2.5bn).

the applicable portion of the period)

Copyright (c) 2020 Tokio Marine Holdings, Inc.	16

International 3︓Philadelphia

• Changes in Major P/L Items

Consolidated Domestic Life

Domestic	International
Non-Life

(billions of JPY, except for % and pt)

		FY2019	FY2020
		2Q	2Q	YoY
		Results	Results
		As of end	As of end
	FX rates	Jun. 2019	Jun. 2020	Change		%
	（USD/JPY）
	JPY 107.7	JPY 107.7
Net premiums written	179.9	170.1	-9.7		-5.4%
Net premium earned	182.5	177.4	-5.0		-2.8%
Net incurred losses	124.4	119.8	-4.5		-3.7%
		8.8	6.6	-2.1		-24.0%
	Nat-Cat losses
		56.0	53.5	-2.4		-4.4%
Commissions / Other Underwriting expenses
Underwriting profit	2.0	4.0	1.9		95.4%
Net investment income / loss	18.9	12.1	-6.7		-35.8%
Business unit profits	18.8	13.6	-5.1		-27.6%
Loss ratio*1	68.2%	67.5%	-0.7pt		-
Expense ratio*1	30.7%	30.2%	-0.5pt		-
Combined ratio*1	98.9%	97.7%	-1.2pt		-

*1: Denominator used is net premiums earned

*2: Excluding FX effects due to yen conversion

(Ref.) YoY %

(Excluding FX effects*2)

-5.4%-2.7%-3.6%-24.0%-4.4% 95.5% -35.8%-27.6%

-

-

-

Copyright (c) 2020 Tokio Marine Holdings, Inc.

17

International 4 ︓Delphi

• Changes in Major P/L Items

				(billions of JPY, except for % and pt)
		FY2019	FY2020
		2Q	2Q	YoY
		Results	Results
						(Ref.)
		As of end	As of end					YoY %
	FX rates	Jun. 2019	Jun. 2020					(Excluding
	Change		%		FX effects*2)
	（USD/JPY）	JPY 107.7	JPY 107.7
Net premiums written	135.7	144.1	8.3		6.2%		6.2%
Net premium earned	130.1	141.3	11.2		8.6%		8.7%
Net incurred losses	94.1	102.2	8.1		8.6%		8.7%
		-	-	-		-		-
	Nat-Cat losses
Commissions / Other Underwriting expenses	35.3	40.0	4.7		13.6%		13.6%
Underwriting profit	0.6	-1.0	-1.6		-261.3%		-261.6%
Net investment income / loss	81.3	39.0	-42.2		-52.0%		-51.9%
Business unit profits	37.8	10.2	-27.5		-72.9%		-72.9%
Loss ratio*1	72.4%	72.4%	-0.0pt		-		-
Expense ratio*1	27.1%	28.4%	1.2pt		-		-
Combined ratio*1	99.5%	100.7%	1.2pt		-		-

• Net Premiums Written by Segment

(billions of JPY, except for %)

Consolidated Domestic Life

Domestic	International
Non-Life

<-¥42.2bn YoY decrease in net investment income>

Net investment income in the table on the left includes hedging gains/losses for stock price options. Excluding the impact, the YoY change in net investment income is -¥31.9bn.

• Loss Ratio by Segment*1

	FY2019	FY2020
	2Q	2Q	YoY
	Results	Results
	As of end	As of end
FX rates	Jun. 2019	Jun. 2020	Change		%
（USD/JPY）	JPY 107.7	JPY 107.7
Non-life	67.4	75.2	7.8		11.6%
Life	68.3	68.9	0.5		0.8%
Total	135.7	144.1	8.3		6.2%

(Ref.) YoY %

(Excluding

FX effects*2)

11.7%

0.8%

6.2%

	FY2019	FY2020
	2Q	2Q	Change
	Results	Results
Non-life	70.8%	76.9%	6.2pt
Life	73.8%	67.5%	-6.3pt
Total	72.4%	72.4%	-0.0pt

*1: Denominator used is net premiums earned

*2: Excluding FX effects due to yen conversion

18

Copyright (c) 2020 Tokio Marine Holdings, Inc.

International 5 ︓TMHCC

• Changes in Major P/L Items

(billions of JPY, except for % and pt)

Consolidated Domestic Life

Domestic	International
Non-Life

		FY2019	FY2020
		2Q	2Q	YoY
		Results	Results
		As of end	As of end
	FX rates	Jun. 2019	Jun. 2020	Change		%
	（USD/JPY）	JPY 107.7	JPY 107.7
Net premiums written	195.6	216.4	20.7		10.6%
Net premium earned	166.6	188.0	21.3		12.8%
Net incurred losses	108.1	138.8	30.7		28.4%
		0.7	0.6	-0.1		-23.1%
	Nat-Cat losses
Commissions / Other Underwriting expenses	38.5	42.5	4.0		10.4%
Underwriting profit	12.9	0.0	-12.8		-99.5%
Net investment income / loss	14.3	9.9	-4.3		-30.7%
Business unit profits	21.6	8.0	-13.6		-62.9%
Loss ratio*1	64.9%	73.8%	8.9pt		-
Expense ratio*1	23.1%	22.6%	-0.5pt		-
Combined ratio*1	88.0%	96.5%	8.5pt		-

(Ref.) YoY %

(Excluding FX effects*2)

10.7%

12.9%

28.5% -23.1% 10.5% -99.5%-30.6%

-62.9%

-

-

-

The calculation method of expense ratio for the purpose of managerial accounting was changed effective 1Q FY2020.

Accordingly, the expense ratio and combined ratio for FY2019 were recalculated using the new calculation method. This has not changed the bottom-line result.

• Net Premiums Written by Segment

			(billions of JPY, except for %)
	FY2019	FY2020
	2Q	2Q	YoY
	Results	Results
					(Ref.)
	As of end	As of end					YoY %
FX rates	Jun. 2019	Jun. 2020					(Excluding
Change		%		FX effects*2)
（USD/JPY）	JPY 107.7	JPY 107.7
Non-life : North America	69.0	72.4	3.3		4.9%		5.0%
A&H	69.2	77.6	8.4		12.3%		12.3%
International	57.3	66.2	8.8		15.5%		15.6%
Total	195.6	216.4	20.7		10.6%		10.7%

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• Loss Ratio by Segment*1

	FY2019	FY2020
	2Q	2Q	Change
	Results	Results
Non-life : North America	61.0%	87.6%	26.6pt
A&H	78.5%	79.0%	0.5pt
International	47.6%	49.6%	2.0pt
Total	64.9%	73.8%	8.9pt

*1: Denominator used is net premiums earned

*2: Excluding FX effects due to yen conversion

19

FY2020 Projections

Assumptions used for
		FY2020 Projections
		FX Rate	Nikkei Stock Average
		USD/JPY
Original Projections (Announced in Aug.)		108.83 yen	18,917 yen
(End of Mar. 2020 rate and stock avg.)
Revised Projections		105.80 yen	23,185 yen
(End of Sept. 2020 rate and stock avg.)

Copyright (c) 2020 Tokio Marine Holdings, Inc.	20

Domestic Non-Life: TMNF

Consolidated Domestic Life

Domestic

Non-Life

International

Net income was revised downward by ¥4.0bn from August projection to ¥155.0bn mainly due to impairment losses on affiliate equities, although COVID-19 Impacts will decrease.

Business unit profit was revised upward by ¥15.0bn from August projection to ¥138.0bn largely due to the reduced COVID-19 Impacts.

								(billions of JPY)	-
					FY2020 Projections
			Original			Rivised			Difference
			COVID-19	Except	COVID-19	Except
			（① ）	（④）	-
				Impacts	COVID-19		Impacts	COVID-19	（④ ①）
				（②）	（③=①-②）		（⑤）	（⑥=④ ⑤）
					-
Underwriting profit/loss	67.0	-24.0	91.0	74.0	-22.5	96.5	7.0
	(Underwriting profit/loss: excluding provision/reversal of	100.8	-8.0	108.9	101.3	1.5	99.7	0.5
	catastrophe loss reserves)
	Net premiums written (Private insurance)	1,966.1	-38.8	2,005.0	1,968.5	-48.7	2,017.2	2.4	-
	Net premiums earned (Private insurance)*1	1,935.2	-34.5	1,969.7	1,958.3	-36.3	1,994.7	23.1
	Net incurred losses (Private insurance)*2	-1,152.9	33.5	-1,186.5	-1,185.6	53.4	-1,239.0	-32.7
		Natural catastrophe losses	-55.0	#VALUE!	-55.0	-80.0	#VALUE!	-80.0	-25.0
		Provision/Reversal of foreign currency	-	#VALUE!	#VALUE!	2.9	#VALUE!	2.9	2.9
		denominated outstanding claims reserves
		Other than above	-1,097.9	33.5	-1,131.5	-1,108.6	53.4	-1,162.0	-10.7
	Business expenses (Private insurance)	-649.9	7.3	-657.4	-636.8	15.9	-652.8	13.0
	Provision/Reversal of catastrophe loss reserves	-33.8	-15.9	-17.9	-27.3	-24.1	-3.2	6.4
		Auto	7.5	-19.3	26.9	-4.8	-32.5	27.7	-12.3
		Fire	-30.6	-0.1	-30.4	-11.2	5.9	-17.1	19.4	-
	Provision/Reversal for nat-cat underwriting reserves	-12.6	#VALUE!	-12.6	-8.5	#VALUE!	-8.5	4.1
	Provision/Reversal of underwriting result for the first year*3	-18.9	-14.6	-4.3	-28.1	-31.4	3.3	-9.1
Net investment income (loss) and other	146.2	-7.0	153.2	144.9	-4.8	149.7	-1.3

Underwriting Profit

Revised upward by ¥7.0bn from August projection to ¥74.0bn mainly due to the following factors:

• Increase in net premiums earned and temporary

fall in business expenses

• Upward revision of net incurred losses due to an increase in natural catastrophes, large losses, etc.

Net Investment Income and Other

Revised downward by ¥1.3bn from August projection to ¥144.9bn mainly due to the following factors:

• Downward revision to gains/losses on sales of securities and gains/losses on derivatives (by -¥2.8bn and -¥2.5bn respectively)

• Upward revision of recovery from private equities

Extraordinary gains/losses:

• Revised downward by ¥11.9bn from August projection to -¥18.8bn mainly due to impairment losses on affiliate equities

Ordinary profit/loss	214.0	-31.0	245.0	222.0	-27.4	249.4	8.0	-
Extraordinary gains/losses	-6.9	#VALUE!	-6.9	-18.8	#VALUE!	-18.8	-11.9
Net income/loss	159.0	-23.0	182.0	155.0	-20.7	175.7	-4.0
Business unit profit	123.0	-1.0	124.0	138.0	15.0	123.0	15.0
*1	Excluding provision for nat-cat underwriting reserves								-
*2	Including loss adjustment expenses

*3 provision for the general underwriting reserves excluding provision for unearned premiums

(Notes)

1. Plus and minus of the figures in the above table correspond to positive and negative to profit respectively
2. Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance

Net Income

• Revised downward by ¥4.0bn from August projection to ¥155.0bn due to the above factors, etc.

Business Unit Profit

• Revised upward by ¥15.0bn from August projection to ¥138.0bn as other extraordinary gains/losses are excluded from net income

Copyright (c) 2020 Tokio Marine Holdings, Inc.	21

Domestic Life: TMNL

Consolidated Domestic Life

Domestic

Non-Life International

Net income was revised upward by ¥6.0bn from August projection to ¥47.0bn due to gains on sales of overseas bonds, a fall in hedging cost, etc.

No change was made to business unit profit projected in August mainly because there had been no material change in yen interest rates.

（billions of JPY）

				FY2020 Projections
		Original	COVID-19	Except	Revised	COVID-19	Except	Difference
		（①）	Impacts	COVID-19	（④）	Impacts	COVID-19	（④-①）
			（②）	（③=①-②）		（⑤）	（⑥=④-⑤）
New policies ANP	38.0	-5.0	43.0	38.0	-5.0	43.0	-
In-force policies ANP			809.0	804.0	-5.0	809.0
Ordinary income			945.0	950.0
	Insurance premiums and other			836.0	836.0
Net income	41.0	1.0	40.0	47.0	3.0	44.0	6.0
Ordinary profit			52.0	60.0
	(-) Capital gains / losses			-8.0	-4.0
	(-)Non-recuming income / losses			0.0	0.0
Core operating profit	61.0	0.0	61.0	65.0	2.0	63.0	4.0
Increase in MCEV*	164.0	-11.0	175.0	164.0	-11.0	175.0	-
	value of new business +	71.0	-11.0	82.0	71.0	-10.0	81.0	-
	Existing business contribution
* Excluding capital transaction

• New Policies ANP
• • No change to August projection given support provided by the New Product although COVID-19 Impacts remain
• Net Income
• • Upward revision by ¥6.0bn from August projection to ¥47.0bn mainly due to the following factors:
  • • Gains on sales of European bonds, private equities, etc.
    • Fall in overall provisions due to strong sales of the New Product that requires smaller underwriting reserves while no change is made to projected top- line results
    • Fall in hedging cost due to the contraction of interest rate differentials between Japan and overseas

• Business Unit Profit (Increase in MCEV)
• • No change to August projection given that there has been no material change to interest rates and the business is progressing as planned

Copyright (c) 2020 Tokio Marine Holdings, Inc.	22

International 1: Net Premiums Written

Consolidated Domestic Life

Domestic

Non-Life International

NPW are expected to almost move sideways YoY declining 0.5% on a local currency basis as growth measures in each line offset COVID-19 Impacts (approx. -¥70.0bn). On a non-local currency basis, NPW are expected to fall by 6.9% due to the impact of the further strengthening of the yen (-¥112.0bn).

-6.9%

(billions of JPY)

-0.5%

1,741.6					1,733.0
	+1.8%
	（+Approx. 32.0）	-Approx. 4.0%	+1.7%
		(-Approx. 70.0)	(+Approx. 30.0)
								1,621.0
						-6.4%
						(-Approx. 112.0)
FY2019 result	Increase/decrease	COVID-19		Increase/decrease	FY2020 projection	Impact of FX rate		FY2020 projection
	factor (1)	Impacts		factor (2)	(revised)			(revised)
	(FY2019 vs			(May projection* vs	(local currency basis)
	May projection*)			revised projection)

[Increase/decrease factor (1)

(FY2019 vs May projection*)]

Announced at the May conference call presentation (see p.25)

Revised projection

[Increase/decrease factor (2) (May projection* vs revised projection)]

• North America (+approx. ¥20.0bn)
• • All three North American companies are expected to implement the rate increases exceeding the plan in their main business lines.
• Europe, Middle East & Africa (+approx. ¥10.0bn)
• • Europe's rate environment is expected to keep improving.

	* Excluding COVID-19 impacts	23
Copyright (c) 2020 Tokio Marine Holdings, Inc.

International 1: Net Premiums Written						Consolidated
					Domestic
										Non-Life
							(billions of JPY, except for %)
					FY2020 Projections
			FY2019	Pre COVID-19
			Results	Basis	Projections
				(Announced in	(b)	YoY		(Ref.)
				May)
								YoY %
			As of end-	As of end-	As of end-
						(Excluding
		Applied FX rate	Dec. 2019	Mar. 2020	Sep. 2020
		Change	%		FX effects*4)
		(USD/JPY)	JPY 109.5	JPY 108.8	JPY 105.8
		North America*1	1,124.0	1,147.0	1,098.0	- 26.0	- 2.3%		1.2%
		Philadelphia	369.2	368.0	340.0	- 29.2	- 7.9%		- 4.5%
		Delphi	278.2	287.0	281.0	2.8	1.0%		4.7%
		TMHCC	399.1	417.0	404.0	4.9	1.2%		4.8%
		Europe, Middle East	196.1	155.0	166.0	- 30.1	- 15.3%		- 7.6%
		& Africa*2
		South &	136.0	111.0	98.0	- 38.0	- 27.9%		4.2%
		Central America
		Asia & Oceania	184.5	186.0	168.0	- 16.5	- 8.9%		- 4.1%
	Total Non-Life*3	1,649.5	1,599.0	1,530.0	- 119.5	- 7.2%		- 0.8%
	Life	92.0	95.0	91.0	- 1.0	- 1.1%		5.6%
	Total	1,741.6	1,694.0	1,621.0	- 120.6	- 6.9%		- 0.5%

Domestic Life

International

YoY %

(Excl. COVID-19 Impacts)

＋4.9%

YoY %

(Excl. COVID-19 Impacts)

＋3.8%

*1: North American figures include European business of TMHCC, but do not include North American business of TMK.

*2: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.

*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.

*4: Excluding the FX impact for conversion to the Japanese yen.

Yen's appreciation impact

-¥112.0 bn

Copyright (c) 2020 Tokio Marine Holdings, Inc.	24

FY2020 Profits (May projection, Pre COVID-19 Basis) (NPW)	Repost of conference call
presentation on May 20

 NPWs by Business Domain (billions of JPY)

- NPWs are projected to grow 1.8% YoY on a local

currency basis thanks to factors such as the execution of

		FY2019	FY2020
		Profits
		Results	YoY
		(Pre COVID-19 Basis)
		As of end-	As of end-
	Applied FX rate	Dec. 2019	Mar. 2020	Change	％
	(USD/JPY)	JPY 109.5	JPY 108.8
	North America*1	1,124.0	1,147.0	22.9		2.0%
	Philadelphia	369.2	368.0	- 1.2		- 0.3%
	Delphi	278.2	287.0	8.7		3.2%
	TMHCC	399.1	417.0	17.8		4.5%
	Europe & Middle East &	196.1	155.0	- 41.1		- 21.0%
	Africa*2
	South &	136.0	111.0	- 25.0		- 18.4%
	Central America
	Asia & Oceania	184.5	186.0	1.4		0.8%
Total Non-Life*3	1,649.5	1,599.0	- 50.5		- 3.1%
Life	92.0	95.0	2.9		3.3%
Pure	-	-	-		-
Total	1,741.6	1,694.0	- 47.6		- 2.7%

(Ref.) YoY (Excluding FX effects)*4

2.8%

0.3%

3.8%

5.2%

• 11.7%
  6.3%

7.6%

1.3%

10.9%

-

1.8%

growth measures in each business and rate increases

but are projected to decrease 2.7% YoY on the Japanese

yen basis due to the appreciation of the yen (-¥78.1bn)

 Major Factors of Changes

North America

• Philadelphia: Projected to be flat as the reduction caused by the underwriting practice focusing on profitability will be offset by rate increases for renewal books, and so on
• Delphi: Projected to grow due to the expanded underwriting of non-life insurance
• TMHCC: Projected to increase due to the contribution of a business purchased as a bolt-on acquisition, in addition to the growth in each segment

Europe, Middle East & Africa(*)

• Projected to decline due to the run-off of the company business in Europe and an increase in reinsurance to stabilize profitability

1. Including the impact (-¥12.7bn) of the change in management accounting principles on Hollard. There is no impact on earnings

South & Central America

• Projected to decline due to the impact of the stronger yen, although the underwriting of products other than auto insurance will be expanded

Asia & Oceania

• Projected to increase due to factors such as the expanded underwriting of auto insurance in India and Thailand

*1 North American figures include European and Reinsurance businesses of TMHCC, but not include North American business of TMK

*2 Figures of "Europe & Middle East & Africa" include North American business of TMK, but not include European and Reinsurance businesses of TMHCC *3 Total Non-Life figures include some life insurance figures of composite overseas subsidiaries

*4 Excluding FX effects due to yen conversion

Life Insurance

• Projected to increase due to factors such as an increase in sales in Thailand and India

Copyright (c) 2020 Tokio Marine Holdings, Inc.	25

International 2: Business Unit Profits

Consolidated Domestic Life

Domestic

Non-Life International

Business Unit Profits was revised upward by ¥8.0bn from August projection to ¥75.0bn mainly driven by improvement of COVID-19 impacts (approx. +¥6.0bn) and a decrease in natural catastrophes (approx. +¥5.0bn)

179.5

177.0

(billions of JPY)

-2.5

+8.0

67.0

75.0

-Approx.110.0

+Approx. 6.0

+Approx. 8.0

-Approx. 6.0

FY2019 result

Increase/decrease

FY2020

COVID-19

FY2020

COVID-19

Increase/decrease

Impact of

FY2020 projection

factor (1)

profits

Impacts

projection

Impacts

factor (2)

FX rate

(revised)

(FY2019 vs May projection*)

(May projection*)

(August projection)

(August projection)

(August projection vs

revised projection)

Revised projection

May projection*

August projection

[Increase/decrease factor (1)

(FY2019 vs May projection*)]

Announced at the May conference call presentation (see p.28)

[Increase/decrease factor (2) (August projection vs revised projection)]

• Common item in all segments (upward revision)
• • Expected approx. ¥5.0bn fall in natural catastrophes compared with the August projection
• North America (upward revision)
• • Delphi's underwriting profit is expected to improve in life and non-life segments
• Life (downward revision)
• • Impact of changes to managerial accounting rules in Singapore Life (-¥2.5bn)

	* Excluding COVID-19 impacts	26
Copyright (c) 2020 Tokio Marine Holdings, Inc.

International 2: Business Unit Profits

Consolidated Domestic Life

Domestic

Non-Life International

										(billions of JPY, except for %)
					FY2020 Projections
		FY2019	Pre COVID-19	Original (a)
		Results	Basis	(Announced in			Projections
			(Announced in			(b)		YoY
				August)						(Ref.)
			May)
				COVID-19			Difference				YoY %
		As of end-	As of end-	As of end-		As of end-
		Impacts		(b-a)				(Excluding
	Applied FX rate	Dec. 2019	Mar. 2020	Mar. 2020		Sep. 2020
				Change	%		FX effects*4)
	(USD/JPY)
	JPY 109.5	JPY 108.8	JPY 108.8			JPY 105.8
	North America*1	147.2	149.0				92.0		- 55.2	- 37.5%		- 35.2%
	Philadelphia	27.0	40.0				31.0		4.0	14.8%		18.8%
	Delphi	76.5	62.0				38.0		- 38.5	- 50.3%		- 48.6%
	TMHCC	41.9	44.0				21.0		- 20.9	- 49.9%		- 48.1%
	Europe, Middle East	2.2	8.0				- 15.0		- 17.2	-		-
	& Africa*2
	South &	10.8	6.0				9.0		- 1.8	- 16.7%		20.5%
	Central America
	Asia & Oceania	16.6	11.0				4.0		- 12.6	- 75.9%		- 74.6%
Total Non-Life*3	179.0	176.0				82.0		- 97.0	- 54.2%		- 51.5%
Life	12.9	4.0				- 3.0		- 15.9	-		-
Pure	-	9.0				9.0		9.0	-		-
Total	179.5	177.0	67.0	- 110.0		75.0	8.0	- 104.5	- 58.2%		- 55.6%
	*1: North American figures include European business of TMHCC, but do not include North American business of TMK.
	*2: Figures of "Europe, Middle East & Africa" include North American business of TMK, but do not include European business of THMCC.

*3: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries.
*4: Excluding the FX impact for conversion to the Japanese yen.	27
Copyright (c) 2020 Tokio Marine Holdings, Inc.

FY2020 Profits (May projection, Pre COVID-19 Basis) (BUP)	Repost of conference call
presentation on May 20

 BUPs by Business Domain (billions of JPY)

- Projected to grow 1.9% YoY on a local currency basis due to

the new consolidation of Pure, a reaction to provisions for

		FY2019	FY2020
		Results	Profits	YoY
		(Pre COVID-19 Basis)
		As of end-	As of end-
	Applied FX rate	Dec. 2019	Mar. 2020	Change	％
	(USD/JPY)
	JPY 109.5	JPY 108.8
	North America*1	147.2	149.0	1.7		1.2%
	Philadelphia	27.0	40.0	12.9		48.0%
	Delphi	76.5	62.0	- 14.5		- 19.0%
	TMHCC	41.9	44.0	2.0		5.0%
	Europe & Middle East &	2.2	8.0	5.7		247.8%
	Africa*2
	South &	10.8	6.0	- 4.8		- 44.6%
	Central America
	Asia & Oceania	16.6	11.0	- 5.6		- 34.1%
Total Non-Life*3	179.0	176.0	- 3.0		- 1.7%
Life	12.9	4.0	- 8.9		- 69.0%
Pure	-	9.0	9.0		-
Total	179.5	177.0	- 2.5		- 1.4%

(Ref.) YoY (Excluding FX effects)*4

1.9%

49.0%

• 18.5%
  5.7%

298.9%

• 27.5%
• 29.6%
  1.1%
• 67.2%

-

1.9%

reserves in the previous fiscal year, and so on, although there

are negative factors such as the assumption that natural

catastrophes will be at the same level as the average year

(-¥18.6bn) and a drop in investment income; projected to

decline ¥2.5bn on the Japanese yen basis due to the

appreciation of the yen (-¥5.7bn)

• Main Factors of Change

North America

• Philadelphia: Despite the above-mentioned negative factors, profits will grow due to factors such as a reaction to the past reserve provision in FY2019 (+¥23.5bn)
• Delphi: Profits are expected to drop due to factors such as a smaller investment income and the worsening loss ratio of long tail products caused by the lower discount rate
• TMHCC: Despite the above-mentioned negative factors, profits are projected to rise thanks to factors such as a reaction to the reserve provision in FY2019 for crop insurance and medical stop-loss

Europe, Middle East & Africa

• In Europe, profits will rise thanks to the improved profitability of Lloyd's and a decline in large losses, despite the above- mentioned negative factors

South & Central America

• Profits are projected to shrink due to factors such as the worsening loss ratio in Brazil caused by the intensifying competition and lower income yield

*1 North American figures include European and Reinsurance businesses of TMHCC, but not include North American business of TMK

*2 Figures of "Europe & Middle East & Africa" include North American business of TMK, but not include European and Reinsurance businesses of TMHCC *3 Total Non-Life figures include some life insurance figures of composite overseas subsidiaries

*4 Excluding FX effects due to yen conversion

Asia & Oceania

• Profits are expected to decline due to factors such as the net incurred losses of nat-cat at the level equivalent to the average year and a reaction to equity sales gains posted in Thailand in FY2019

Life Insurance

Copyright (c) 2020 Tokio Marine Holdings, Inc.

 Profits are projected to decline due to factors such as a reaction to the higher stock prices and lower interest rates in

FY2019 in Singapore (-¥8.1bn)

28

Economic Solvency Ratio

Copyright (c) 2020 Tokio Marine Holdings, Inc.

29

Economic Solvency Ratio (ESR) Target Range

• ESR is calculated using capital model based on 99.95% VaR (equivalent to AA credit rating).
• The target range is set at 150 to 210% from the viewpoint of soundness and profitability.

210%

Target

Range

150%

100%

Implementation of

Business investment, and/or

Additional risk-taking, and/or

Shareholder return

consideration of

Business investment, and/or Additional risk-taking, and/or Shareholder return

g to recover capital level through accumulation of profits

of risk level by reducing risk-taking activities

risking

Consideration of capital increase of shareholder return policy

Copyright (c) 2020 Tokio Marine Holdings, Inc.	30

ESR and Sensitivity

• ESR as of Sept. 30, 2020 was 163% (within the target range) reflecting profit contributions in 1H, rises in stock prices and interest rates, etc., and shareholder return.

ESR*1

163%

153%

Net

Net

asset

asset

value

value

(Reference)

Risk

Risk

ESR after deducting

2.7

4.2

4.3

restricted capital :

trillion

2.6

trillion

117％

trillion

yen

trillion

yen

yen

yen

Mar. 31, 2020

Sept. 30, 2020

Nikkei Stock

¥23,185

¥18,917

Average

0.44%

30Yr JPY

0.60%

interest rate

2.72%

Credit spread

1.36%

ESR Sensitivity (based on parallel shift)

	Sept. 30, 2020						163%
Stock price	+30%								168%
		-30%				157%
Interest rate	+50bp
			164%
		-50bp		155%
FX rate	10%							164%
		appreciation
		10%			162%
		depreciation										Of this, sensitivity
Credit	-50bp
		169%
spread*2	+50bp			157%	to overseas net
			asset value: ±3pt

Stock price: Continue to sell business-related equities

Interest rate: Control the impact of interest rate fluctuations through ALM

FX rate: Limited impact on ESR

Credit: Allow risk-taking within the risk limits

*2: Due to different consolidated accounting periods adopted by overseas subsidiaries(refer to *1), the periods of credit spread fluctuations reflected on ESR differ.

4.0%

Factors changing net asset value

• 1H adjusted net income contribution
• Higher stock prices/interest

rates
 Shareholder return,	etc.

Factors changing risk

• Higher interest rates
• Lower credit spread volatility, etc.

2.72%	Tightening (-1.36pt）
3.0%
2.0%				1.50%
0.94%
1.0%				1.36%
Widening (+0.56pt)

*1: Net asset value of overseas subsidiaries shows the balance as of three months earlier (Dec. 31, 2019 and June 30, 2020).

Copyright (c) 2020 Tokio Marine Holdings, Inc.

31/12/19	31/3/20	30/6/20	30/9/20
		(2Q results overseas)	(2Q results Japan) 31

Reference

Copyright (c) 2020 Tokio Marine Holdings, Inc.

32

Definition of Terms①

Adjusted Net Income (Group total)

Enhancing transparency and comparability /

Linking with shareholder return

• For the Group total, "Adjusted Net Income" based on financial accounting is used from the perspective of enhancing transparency and comparability as well as linking with shareholder return
• Profit indicator for the Group total as the base for calculating capital efficiency (adjusted ROE) and source of dividends

Business Unit Profits

Creating long-term corporate value

• For each business domain, "Business Unit Profits" is used from the perspective of accurately assessing corporate value including economic value, etc. for the purpose of long- term expansion
• Use MCEV (market-consistent embedded value) for domestic life, which reflects the economic value of the business more accurately

Domestic non-life	Gains or losses on sales of
business-related equities
	Provision for reserves of capital
	nature, etc.
Domestic life
Other than the above	Amortization of goodwill and
other intangible fixed assets

Adjusted Net Income

Included

Excluded

Adjust the financial accounting

basis net income

Excluded

Business Unit Profits

Excluded

Excluded

Increase in MCEV

during the current fiscal year

Excluded

Copyright (c) 2020 Tokio Marine Holdings, Inc.	33

Definition of Terms②

Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE

Adjusted		Net income		Provision for
Net	=	+	catastrophe loss
(consolidated)*2
Income
			reserves*3

	Provision for		Provision for		Gains or losses on sales or
+	contingency	+	price fluctuation	-	valuation of ALM*4 bonds and
	reserves*3		reserves*3		interest rate swaps

Amortization of

• goodwill and other
  intangible fixed assets

Gains or losses on sales or

- valuation of fixed assets and - business investment equities

Other extraordinary

gains / losses, valuation

allowances, etc.

Adjusted	=	Net assets	+	Catastrophe	+	Contingency	+	Price fluctuation	-	Goodwill and other
Net Assets	(consolidated)	loss reserves	reserves	reserves	intangible fixed assets

Adjusted	=	Adjusted Net	÷	Adjusted Net Assets
ROE	Income	(average balance basis)

Definition of Business Unit Profits

*1 Each adjustment is on an after-tax basis.

*2 Net income attributable to owners of the parent in the consolidated financial statements.

*3 In case of reversal, it is subtracted from the equation.

*4 ALM = Asset Liability Management. Excluded since it is a counter-balance item of ALM related liabilities.

*5 For some of the life insurance companies, Business Unit Profit is calculated using the definition in Other businesses (head office expenses, etc. are deducted from profits).

*6 EV: Embedded Value. An index that shows the sum of the net present value of profits to be gained from policies in-force and the net asset value.

• Non-lifeinsurance business

Business				Provision for		Provision for price
Unit	=	Net income	+	catastrophe loss	+	fluctuation
Profits*1				reserves*3		reserves*3

	Gains or losses on sales or		Gains or losses on sales or		Other extraordinary
		valuation of fixed assets,
-	valuation of ALM*4 bonds and	-	-	gains / losses, valuation
business-related equities and
	interest rate swaps			allowances, etc.
		business investment equities

• Life insurance business*5

Busines		Increase in EV*6		Capital
s Unit	=	during the current	-	transactions such
Profits*1		fiscal year		as capital increase

• Other businesses

Net income determined in accordance with financial accounting principles

Definition of Net Asset Value

Net

Net assets

Catastrophe

Contingency

Price fluctuation

Goodwill and

Planned

Value of life

Asset

=

+

+

+

-

other intangible

-

distribution to

+

insurance policies

+

Others

Value*1

(consolidated)

loss reserves

reserves

reserves

fixed assets

shareholders

in-force

Copyright (c) 2020 Tokio Marine Holdings, Inc.	34

Reconciliation of Adjusted Net Income (Group Total) : 2Q FY2020 Results

Adjusted Net Income for 2Q FY2020 fell ¥19.1bn YoY to ¥156.2bn

• Reconciliation*1

Note: Factors positive to profit are shown with a plus sign

(billions of JPY)

FY2019 FY2020

2Q 2Q

YoY

 Provision for catastrophe loss reserves:

Results Results

Change

 Increased mainly due to a drop in net incurred

Net income attributable to owners of the parent

(consolidated)

116.6 62.3 -54.2

losses relating to natural catastrophes in Domestic

Non-life (increases reconciling amount)

Provision for catastrophe loss reserves*2

+26.3

+31.6

5.2

Provision for contingency reserves*2	+0.6	+0.7	0.0
Provision for price fluctuation reserves*2	+2.7	+3.5	0.8
Gains or losses on sales or valuation of ALM*3 bonds	-1.4	+1.6	3.1
and interest rate swaps
Gains or losses on sales or valuation of fixed assets	+0.3	+1.3	0.9
and business investment equities
Amortization of goodwill and other intangible fixed	+36.7	+44.8	8.1
assets
Other extraordinary gains/losses,	-6.6	+10.0	16.6
valuation allowances, etc.
Adjusted Net Income	175.4	156.2	-19.1

*1 Each adjustment is on an after-tax basis.

*2 In case of reversal, it is subtracted from the equation

*3 ALM: Asset Liability Management. Excluded since it is counter balance of ALM related liabilities

• Gains or losses on sales or valuation of ALM bonds and interest rate swaps:
• • Increased mainly due to a reaction to the deduction of gains on sales of domestic bonds in 2Q FY2019 at TMNF (increases reconciling amount)
• Amortization of goodwill and other intangible fixed assets:
• • Increased mainly due to the consolidation of Pure (increases reconciling amount)
• Other extraordinary gains or losses, valuation allowances, etc.:
• • Increased mainly due to deductions of sales and valuation losses on equities of overseas subsidiaries, etc. (increases reconciling amount)

Copyright (c) 2020 Tokio Marine Holdings, Inc.	35

Reconciliation of Adjusted Net Income (Group Total): FY2020 Projection

Adjusted net income was revised upward by ¥ 22.0bn from August projection to ¥332.0bn. Adjusted ROE is projected at 9.9%, up 0.5pt from August projection.

•	Reconciliation*1			(billions of JPY)
Note: Factors positive to profits are showed
	with a "plus" sign
		FY2019	FY2020 Projections
		Results	Original (a)	Revised (b)	(b)-(a)
	Net income attributable to owners of the parent	259.7	175.0	200.0	25.0
	(consolidated)
						 Provisions for catastrophe loss reserves:
	Provision for catastrophe loss reserves*2	-49.7	+27.0	+21.0	-6.0

	Provision for contingency reserves*2	+0.8	+0.0	+0.0	-
	Provision for price fluctuation reserves*2	+6.9	+7.0	+7.0	-
	Gains or losses on sales or valuation of ALM*3 bonds	-12.5	+0.0	+1.0	-
	and interest rate swaps
	Gains or losses on sales or valuation of fixed assets	+8.5	+1.0	+1.0	-
	and business investment equities
	Amortization of goodwill and other intangible fixed	+77.7	+92.0	+88.0	-3.0
	assets
	Other extraordinary gains/losses,	-4.8	+4.0	+10.0	5.0
	valuation allowances, etc.
Adjusted Net Income	286.7	310.0	332.0	22.0

Adjusted ROE	7.5%	9.4%	9.9%	+0.5pt
*1: Each adjustment is on an after-tax basis
*2: In case of reversal, it is subtracted from the equation

*3: ALM: Asset Liability Management. Excluded since it is counter balance of ALM related liabilities

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• • The amount of catastrophe loss reserves taken down will increase as net incurred losses relating to natural catastrophes are expected to increase in Domestic Non-life (decreases reconciling amount)
• Other extraordinary gains/losses, valuation allowances, etc.:

• Deductions of losses on sales and valuation of equities of overseas subsidiaries, etc. (increases reconciling amount)

36

Adjusted Net Assets / Adjusted ROE

• Adjusted Net Assets*1

		FY2019	FY2020 Projections
		Results	Original (a)	Revised (b)	(b)-(a)
Net assets(consolidated)	3,372.1	3,353.0	3,451.0	97.0
	Catastrophe loss reserves	+691.5	+719.0	+712.0	-6.0
	Contingency reserves	+41.6	+42.0	+42.0	-
	Price fluctuation reserves	+85.1	+92.0	+92.0	-
	Goodwill and other intangible	-949.5	-857.0	-851.0	+6.0
	fixed assets
Adjusted Net Assets	3,240.9	3,350.0	3,448.0	98.0

*1 Each adjustment is on an after-tax basis.

Copyright (c) 2020 Tokio Marine Holdings, Inc.

(billions of JPY)

• Adjusted ROE

	FY2019	FY2020 Projections
	Results	Original (a)	Revised (b)	(b)-(a)
Net income(consolidated)	259.7	175.0	200.0	25.0
Net assets(consolidated)*2	3,473.1	3,362.0	3,411.0	48.0
Financial acccounting basis	7.5%	5.2%	5.9%	0.7pt
ROE
*2 average balance basis
	FY2019	FY2020 Projections
	Results	Original (a)	Revised (b)	(b)-(a)
Adjusted Net Income	286.7	310.0	332.0	22.0
Adjusted Net Assets*2	3,502.0	3,300.0	3,344.0	44.0
Adjusted ROE	8.2%	9.4%	9.9%	0.5pt
*2 average balance basis

37

Business Unit Profits: 2Q FY2020 Results

					(billions of JPY)
			FY2019	FY2020
		Business Domain	2Q	2Q
			Results	Results	YoY
Domestic Non-Life	20.2	69.0	48.7
	TMNF	21.2	61.6	40.3
Domestic Life*1*2	-51.4	145.6	197.1
	TMNL	-51.4	145.6	197.1
International Insurance	102.6	36.1	-66.5
		North America	80.8	34.2	-46.6
		Philadelphia	18.8	13.6	-5.1
		Delphi	37.8	10.2	-27.5
		TMHCC	21.6	8.0	-13.6
		Europe, Middle East & Africa	4.2	-7.7	-11.9
		South & Central America	6.7	5.3	-1.4
		Asia & Oceania	8.4	9.1	0.7
		International Non-Life*3	101.9	42.4	-59.4
	International Life	6.4	-3.9	-10.4
	Pure	-	3.9	3.9
Financial & General	3.9	2.6	-1.3

*1: Excluding capital transactions

*2: Simplified calculation method is applied for EV. The calculation is an unaudited basis

*3: International Non-Life figures include some life insurance figures of composite overseas subsidiaries

Copyright (c) 2020 Tokio Marine Holdings, Inc.	38

Reconciliation of Business Unit Profits

 Domestic Non-life*1 (TMNF)

(billions of JPY)

		FY2019	FY2020
		2Q	2Q	YoY
		Results	Results
Net income for accounting purposes	41.5	62.9	21.4
	Provision for catastrophe loss reserves*2	+25.3	+30.1	4.8
	Provision for price fluctuation reserves*2	+2.0	+2.1	0.1
	Gains or losses on sales or valuation of	-2.0	+1.3	3.4
	ALM*3 bonds and interest rate swaps
	Gains or losses on sales or valuation of
	fixed assets, business-related equities and	-37.3	-39.2	-1.8
	business investment equities
	Intra-group dividends	-11.5	-23.4	-11.8
	Other extraordinary gains/losses,	+3.4	+27.6	24.2
	valuation allowances, etc

		FY2019	FY2020 Projection
		Results	① Original	②Revised	②-①
Net income for accounting purposes	169.9	159.0	155.0	-4.0
	Provision for catastrophe loss reserves*2	-47.0	+24.9	+20.3	-4.6
	Provision for price fluctuation reserves*2	+4.3	+4.0	+4.3	0.3
	Gains or losses on sales or valuation of	-12.6	+0.4	+1.1	0.7
	ALM*3 bonds and interest rate swaps
	Gains or losses on sales or valuation of
	fixed assets, business-related equities and	-41.7	-54.9	-54.1	0.8
	business investment equities
	Intra-group dividends	-58.6	-33.5	-33.0	0.4
	Other extraordinary gains/losses,	+11.9	+23.1	+44.6	21.4
	valuation allowances, etc

Business Unit Profits	21.2	61.6	40.3		Business Unit Profits	26.0	123.0	138.0	15.0

• International Insurance*1

FY2019	FY2020					FY2020
YoY		FY2019
2Q	2Q		Results	① Original	②Revised	②-①
Results	Results

Overseas subsidiaries	105.9	32.8	-73.1
Net income for accounting purposes*4
	Difference with EV (Life)	+2.4	+0.0	-2.4
	Adjustment of non-controlling interests	-1.6	-0.1	+1.4
	Difference of subsidiaries covered	+1.3	-0.6	-1.9
	Other adjustments*5	-5.4	+4.0	+9.4
Business Unit Profits	102.6	36.1	-66.5

Overseas subsidiaries	176.8	93.0	105.0	12.0
Net income for accounting purposes*4
	Difference with EV (Life)	+8.1
	Adjustment of non-controlling interests	-2.5
	Difference of subsidiaries covered	+0.6
	Other adjustments*5	-3.6
Business Unit Profits	179.5	67.0	75.0	8.0

*1	Each adjustment is on an after-tax basis. *2 Reversals are subtracted. *3 ALM = Asset Liability Management. Excluded since it is a counter-balance item of ALM related liabilities.
*4	Since FY2020, figures have been changed to exclude purchase method adjustments such as amortization of intangible fixed assets and others. *5 Extraordinary gains/losses, head office expenses, etc.	39
Copyright (c) 2020 Tokio Marine Holdings, Inc.

Domestic Non-Life: TMNF P/L Projections

(billions of JPY)

			FY2019	FY2020 Projections
			Results	① Original	②Revised
			Difference
						（②-①）
Underwriting profit/loss	38.4	67.0	74.0	7.0
	(Underwriting profit/loss: excluding provision/reversal of	-27.5	100.8	101.3	0.5
	catastrophe loss reserves)
	Net premiums written (Private insurance)	1,969.9	1,966.1	1,968.5	2.4
	Net premiums earned (Private insurance)*1	1,917.2	1,935.2	1,958.3	23.1
	Net incurred losses (Private insurance)*2	-1,270.8	-1,152.9	-1,185.6	-32.7
		Natural catastrophe losses	-162.5	-55.0	-80.0	-25.0
		Provision/Reversal of foreign currency	2.0	-	2.9	2.9
		denominated outstanding claims reserves
		Other than above	-1,110.3	-1,097.9	-1,108.6	-10.7
	Business expenses (Private insurance)	-638.2	-649.9	-636.8	13.0
	Provision/Reversal of catastrophe loss reserves	66.0	-33.8	-27.3	6.4
		Auto	18.0	7.5	-4.8	-12.3
		Fire	41.5	-30.6	-11.2	19.4
	Provision/Reversal for nat-cat underwriting reserves	-21.1	-12.6	-8.5	4.1
	Provision/Reversal of underwriting result for the first year*3	-10.9	-18.9	-28.1	-9.1
Net investment income (loss) and other	182.0	146.2	144.9	-1.3
Ordinary profit/loss	223.9	214.0	222.0	8.0
Extraordinary gains/losses	-12.6	-6.9	-18.8	-11.9
Net income/loss	169.9	159.0	155.0	-4.0
*1 Excluding provision for nat-cat underwriting reserves
*2 Including loss adjustment expenses

*3 Provision for the general underwriting reserves excluding provision for unearned premiums

										(billions of JPY)
						FY2019		FY2020 Projections
						Results		① Original	②Revised
							Difference
										（②-①）
	Net investment income and other	182.0		146.2	144.9	-1.3
		Net investment income	220.7		177.9	179.1	1.1
			Net interest and dividends income	151.4		105.0	110.7	5.7
				Interest and dividends	189.2		141.3	145.5	4.2
						66.5		57.7	53.8	-3.8
					Dividends from domestic stocks
					Dividends from foreign stocks	63.0		36.8	39.2	2.4
					Income from domestic bonds	20.7		17.1	16.9	-0.2
					Income from foreign bonds	4.1		2.6	3.3	0.6
					Income from other domestic securities*4	2.1		0.1	-0.3	-0.4
					Income from other foreign securities*5	20.8		16.1	20.8	4.7
				Transfer of investment income on deposit	-37.8		-36.3	-34.7	1.5
				premiums
			Net capital gains	69.3		72.9	68.3	-4.6
				Gains/Losses on sales of securities	110.6		80.2	77.4	-2.8
					-22.1		-2.8	-2.9	-0.0
				Impairment losses on securities
						-18.1		-0.9	-1.1	-0.2
					Impairment losses on domestic stocks
						-15.7		-4.6	-7.2	-2.5
				Gains/Losses on derivatives
					-3.5		-0.0	0.1	0.1
				Foreign exchange gains/losses
					0.5		0.3	0.5	0.2
				Other investment income and expenses
					-0.3		-	0.3	0.3
				Others
		Other ordinary income and expenses	-38.7		-31.7	-34.1	-2.4
	*4 Income from domestic securities excluding domestic stocks and domestic bonds.
	*5 Income from foreign securities excluding foreign stocks and foreign bonds.

Copyright (c) 2020 Tokio Marine Holdings, Inc.	40

Domestic Non-Life: NF Results

Underwriting profit increased by ¥6.0bn YoY to ¥2.1bn mainly due to a reduction in net incurred losses. Net investment income and other rose by ¥2.9bn YoY to ¥3.5bn mainly due to an increase in gains on sales of securities.

As a result of the above, net income grew by ¥5.8bn YoY to ¥3.3bn.

						(billions of JPY)
			FY2019	FY2020
			2Q	2Q	COVID-19	YoY
			Results	Results
			Impacts	Change
Underwriting profit/loss	- 3.8	2.1	1.4	6.0
	(Underwriting profit/loss: excluding provision/reversal	- 1.1	3.9		5.0
	of catastrophe loss reserves)
	Net premiums written (Private insurance)	67.7	66.9		- 0.8
	Net premiums earned (Private insurance)*1	64.8	66.3		1.5
	Net incurred losses (Private insurance)*2	- 43.2	- 39.0		4.2
			- 7.1	- 5.5		1.6
		Natural catastrophe losses
		Other than above	- 36.1	- 33.5		2.6
	Business expenses (Private insurance)	- 22.8	- 22.3		0.5
	Provision/Reversal of catastrophe loss reserves	- 2.7	- 1.7		0.9
			- 1.3	- 1.4		- 0.0
		Fire
		Auto	- 0.7	- 0.0		0.6
	Provision/Reversal for nat-cat underwriting reserves	-	0.0		0.0
	Provision/Reversal of underwriting result for the first year*3	0.1	- 1.1		- 1.3
Net investment income (loss) and other	0.6	3.5	0.0	2.9
	Net investment income/loss	0.8	3.7		2.8
			2.2	2.1		- 0.1
		Interest and dividends
		Gains/Losses on sales of securities	0.1	2.6		2.4
		Impairment losses on securities	- 0.3	- 0.0		0.2
		Gains/Losses on derivatives	- 0.4	- 0.2		0.2
Ordinary profit/loss	- 3.8	5.2		9.0
Extraordinary gains/losses	0.4	- 0.5		- 1.0
Net income/loss	- 2.5	3.3	1.0	5.8
*1 Excluding provision for nat-cat underwriting reserves
*2 Including loss adjustment expenses

*3 provision for the general underwriting reserves excluding provision for unearned premiums

Notes:

1. Plus and minus of the figures in the above table correspond to positive and negative to profit respectively.
2. Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance.

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• Underwriting Profit

¥6.0bn increase YoY to ¥2.1bn mainly due to the following factors

• Net premiums written (Private insurance):
• • Increase in premiums ceded in fire
• Net incurred losses (Private insurance):
   Lower traffic accident frequency due to COVID-19 related stay at home policies
   Decrease in natural catastrophes
• Catastrophe loss reserves:
   Takedown due to a rise in the W/P loss ratio in fire
• Provision/Reversal of underwriting result for the first year:
• • Increase due to a drop in net incurred losses in auto

• • Underwriting result for the first year is underwriting reserve posted by deferring a profit for the first year of the contract to the following fiscal year.
• Net Investment Income and Other
• • ¥2.9bn increase YoY to ¥3.5bn mainly due to an increase in gains on sales of business-related equities
• Net Income
• • ¥5.8bn increase YoY to ¥3.3bn due to the above factors, etc.

41

Domestic Non-Life: NF Projections

Underwriting profit is projected to grow by ¥4.0bn YoY to ¥6.8bn mainly due to an decrease in net incurred losses relating to natural catastrophes.

Net investment income and other is projected to grow ¥13.1bn YoY to ¥16.7bn mainly due to an increase in gains on sales of securities.

Net income is projected to increase ¥12.3bn YoY to ¥16.0bn due to the factors above, etc.

(billions of JPY)

				FY2019	FY2020 Projections
				Results	Profit	Revised	Difference
				(Pre COVID-
				(① )	（②）	（②-①）
				19 Basis)
Underwriting profit/loss	2.7	6.9	6.8	4.0
		(Underwriting profit/loss: excluding provision/reversal of	- 0.2	11.7	7.4	7.7
		catastrophe loss reserves)
		Net premiums written (Private insurance)	131.7	134.1	132.7	1.0
		Net premiums earned (Private insurance)*1	129.6	132.5	132.6	3.0
		Net incurred losses (Private insurance)*2	- 80.5	- 73.7	- 74.4	6.0
			Natural catastrophe losses	- 12.1	- 3.1	- 6.5	5.6
			Other than above	- 68.3	- 70.6	- 67.9	0.4
		Business expenses (Private insurance)	- 45.3	- 45.0	- 45.0	0.3
		Provision/Reversal of catastrophe loss reserves	3.0	- 4.7	- 0.6	- 3.6
			Auto	- 2.7	- 2.8	- 2.8	- 0.0
			Fire	2.7	- 1.3	2.6	- 0.0
		Provision/Reversal for nat-cat underwriting reserves	- 1.8	0.1	0.0	1.8
		Provision/Reversal of underwriting result for the first year*3	- 2.1	- 2.1	- 5.7	- 3.6
Net investment income (loss) and other	3.6	12.9	16.7	13.1
		Net investment income/loss	4.0	13.3	17.0	13.0
				4.7	4.2	4.0	- 0.6
			Interest and dividends
			Gains/Losses on sales of securities	3.1	11.1	14.9	11.8
			Gains/Losses on derivatives	- 0.9	- 0.7	- 0.4	0.5
Ordinary profit/loss	5.7	19.2	22.9	17.1
Extraordinary gains/losses	- 0.0	- 0.5	- 0.6	- 0.6
Net income/loss	3.7	13.4	16.0	12.3
Business unit profit	0.8	9.2	6.3	5.5
*1 Excluding provision for nat-cat underwriting reserves
*2 Including loss adjustment expenses

*3 Provision for the general underwriting reserves excluding provision for unearned premiums

(Notes)

1. Plus and minus of the figures in the above table correspond to positive and negative to profit respectively
2. Private insurance includes all lines excluding compulsory automobile liability insurance and residential earthquake insurance

Copyright (c) 2020 Tokio Marine Holdings, Inc.

• Underwriting Profit

Projected to grow ¥4.0bn YoY to ¥6.8bn due to the following factors:

• • Increase in net premiums earned in auto and specialty insurance
  • Decrease in net incurred losses relating to natural catastrophes
• Net Investment Income and Other
• • Projected to increase ¥13.1bn YoY to ¥16.7bn mainly due to an increase in gains on sales of business-related equities
• Net Income
• • Projected to increase ¥12.3bn YoY to ¥16.0bn due to the factors above, etc.
• Business Unit Profit
• • Projected to increase ¥5.5bn YoY to ¥6.3bn due to the factors above, etc.

42

Disclaimer

These presentation materials include business projections and forecasts relating to expected financial and operating results of Tokio Marine Holdings and certain of its affiliates in current and future periods. All such forward looking information is based on information and assumptions available to Tokio Marine Holdings when the materials were prepared and is subject to a range of inherent risks and uncertainties. Actual results may vary materially from those estimated, anticipated, expected or projected in the accompanying materials and no assurances can be given that any such forward looking information will prove to have been accurate. Investors are cautioned not to place undue reliance on forward looking statements in these materials. Tokio Marine Holdings undertakes no obligation to update or revise any of this forward looking information, whether as a result of new information, recent or future developments, or otherwise.

These presentation materials do not constitute an offering of securities in any jurisdiction. To the extent distribution of these presentation materials or the information included herein is restricted by law, persons receiving these materials must inform themselves of and observe any such restrictions.

For further information...

Investor Relations Group, Corporate Planning Dept.

Tokio Marine Holdings, Inc.

URL : www.tokiomarinehd.com/en/inquiry/

Tel : [phone]

20201119