Tokio Marine : Information about major subsidiaries' business results

Information of major subsidiaries' business results for the six months ended September 30, 2023

November 17, 2023

TOKIO MARINE HOLDINGS, INC.

(Securities Code Number 8766)

		Page
1. Key figures of consolidated results
(1)	Tokio Marine Holdings, Inc. (consolidated)	1
(2)	Insurance premiums	1
(3)	Net income attributable to owners of the parent	1
2. Key figures of the domestic non-life insurance business
(1)	Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated)	2
(2)	Nisshin Fire & Marine Insurance Co., Ltd. (non-consolidated)	3
(3)	E.design Insurance Co., Ltd. (non-consolidated)	4
3. Key figures of the domestic life insurance business	5
4. Business forecasts for the fiscal year 2023 (April 1, 2023 to March 31, 2024)
(1)	Tokio Marine Holdings, Inc. (consolidated)	6
(2)	Insurance premiums	6
(3)	Net income attributable to owners of the parent	6
5. Dividend forecast (Tokio Marine Holdings, Inc.)	6
Financial statements
1. Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated)
(1)	Balance sheet	7
(2)	Statement of income	8
(3)	Underwriting	9
Direct premiums written excluding deposit premiums from policyholders
Net premiums written
Net claims paid
(4)	Investment	10
Interest and dividends
Gains (losses) on sales of securities, Impairment losses on securities
Available-for-sale securities
2. Nisshin Fire & Marine Insurance Co., Ltd. (non-consolidated)
(1)	Balance sheet	11
(2)	Statement of income	12
(3)	Underwriting	13
Direct premiums written excluding deposit premiums from policyholders
Net premiums written
Net claims paid
(4)	Investment	14
Interest and dividends
Gains (losses) on sales of securities, Impairment losses on securities
Available-for-sale securities
3. E.design Insurance Co., Ltd. (non-consolidated)
(1)	Balance sheet	15
(2)	Statement of income	16

		Page
4. Tokio Marine & Nichido Life Insurance Co., Ltd. (non-consolidated)
(1)	Balance sheet	17
(2)	Statement of income	18
Breakdown of Ordinary profit (Core operating profit)
(3)	Underwriting (life)	20
Amount of policies
Annualized premiums
(4)	Investment (General account)	21
Interest and dividends
Gains (losses) on sales of securities, Impairment losses on securities
Fair value information on securities (Securities other than trading securities)
Glossary of terminology	22
Supplementary information of business results for the six months ended September 30, 2023
・ Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated)	24
・ Nisshin Fire & Marine Insurance Co., Ltd. (non-consolidated)	27

1. Key figures of consolidated results

(1) Tokio Marine Holdings, Inc. (consolidated)

				(Yen in millions)
	Six months ended	Six months ended	Increase	Rate of change
	September 30, 2022	September 30, 2023	(Decrease)
Ordinary income	3,375,805	3,744,117	368,311	10.9 %
Ordinary profit	121,699	275,956	154,257	126.8
Net income attributable to owners of the parent	97,903	205,005	107,101	109.4

(Note) Consolidated overseas subsidiaries that apply International Financial Reporting Standards (IFRS) have started to adopt IFRS 17 "Insurance Contracts" (hereinafter referred to as "IFRS 17") from the beginning of the fiscal year 2023. The figures of comparative prior fiscal year are adjusted retrospectively in accordance with IFRS 17.

(2) Insurance premiums

						(Yen in millions)
			Six months ended	Six months ended	Increase	Rate of change
			September 30, 2022	September 30, 2023	(Decrease)
Insurance premiums	2,820,897	2,984,375	163,477	5.8 %
	Net premiums written (non-life)	2,279,880	2,450,491	170,610	7.5
		Tokio Marine & Nichido	1,220,860	1,220,590	(269)	(0.0)
		Nisshin Fire	73,511	74,261	749	1.0
		Overseas subsidiaries	970,381	1,141,858	171,476	17.7
		Others	15,126	13,780	(1,346)	(8.9)
	Life insurance premiums	541,016	533,883	(7,133)	(1.3)
		Tokio Marine & Nichido Life	254,985	217,366	(37,618)	(14.8)
		Overseas subsidiaries	286,436	316,779	30,342	10.6

(3) Net income attributable to owners of the parent

					(Yen in millions)
		Six months ended	Six months ended	Increase	Rate of change
		September 30, 2022	September 30, 2023	(Decrease)
Net income attributable to owners of the parent	97,903	205,005	107,101	109.4 %
	Tokio Marine & Nichido	32,904	97,614	64,710	196.7
	Nisshin Fire	4,816	272	(4,544)	(94.3)
	Tokio Marine & Nichido Life	9,700	15,687	5,987	61.7
	Overseas subsidiaries	133,573	213,295	79,722	59.7
	Financial and other business subsidiaries	3,597	2,743	(854)	(23.8)
	Consolidation adjustment, etc.	(86,689)	(124,608)	(37,918)	-

(Note) Consolidated overseas subsidiaries that apply IFRS have started to adopt IFRS 17 from the beginning of the fiscal year 2023. The figures of comparative prior fiscal year are adjusted retrospectively in accordance with IFRS 17.

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2. Key figures of the domestic non-life insurance business

(1) Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated)

(Yen in millions)

Six months ended

September 30, 2022

Key components of ordinary profit

Six months ended

September 30, 2023

Increase

(Decrease)

	(＋) Net premiums written	1,220,860	1,220,590	(269)
	(－) Net claims paid	643,029	675,787	32,757
	(－) Loss adjustment expenses	64,798	66,672	1,873
	(－) Agency commissions and brokerage	240,505	236,161	(4,344)
Underwriting	(－) Operating and general administrative expenses on	143,534	148,949	5,414
	underwriting
	(－) Provision for (reversal of) outstanding claims	146,810	133,122	(13,688)
	(－) Provision for (reversal of) underwriting reserves	40,379	(22,907)	(63,287)
	Underwriting profit (loss)	(74,270)	(28,436)	45,834
	(＋) Interest and dividends	154,243	140,873	(13,370)
Investment and	(＋) Gains (losses) on sales of securities	54,529	77,774	23,244
(－) Impairment losses on securities	1,652	3,035	1,383
other
(＋) Gains (losses) on derivatives	(56,484)	(77,206)	(20,722)
	Net investment income (loss) and other	159,024	137,229	(21,794)
Ordinary profit (loss)		85,354	109,540	24,185
(＋) Extraordinary gains	602	3,707	3,105
(－) Extraordinary losses	54,317	5,670	(48,647)
Net income (loss)		32,904	97,614	64,710
Loss ratio (private sector, E/I basis)	73.0 %	71.1 %	(1.9)
Fire and allied lines	105.4	77.3	(28.2)
Voluntary automobile	62.7	68.5	5.8
Expense ratio (private sector)	31.6	31.5	(0.2)
Combined ratio (private sector)	104.6	102.6	(2.1)
Net incurred losses related to natural catastrophe	104,536	75,295	(29,240)
Fire and allied lines	75,107	38,326	(36,780)
Voluntary automobile	26,952	34,859	7,906
Increase (decrease) in catastrophe loss reserve	34,871	453	(34,417)
Fire and allied lines	15,256	15,641	385
Voluntary automobile	10,886	(18,265)	(29,151)
Balance of catastrophe loss reserve	1,111,127	1,075,584	(35,542)
Reservation ratio of catastrophe loss reserve	49.8 %	48.2 %	(1.7)

2

(2) Nisshin Fire & Marine Insurance Co., Ltd. (non-consolidated)

Six months ended

September 30, 2022

Key components of ordinary profit

Six months ended

September 30, 2023

(Yen in millions)

Increase

(Decrease)

	(＋) Net premiums written	73,511	74,261	749
	(－) Net claims paid	40,969	40,496	(472)
	(－) Loss adjustment expenses	5,241	5,443	202
	(－) Agency commissions and brokerage	13,763	14,046	283
Underwriting	(－) Operating and general administrative expenses on	11,812	11,956	144
	underwriting
	(－) Provision for (reversal of) outstanding claims	2,750	4,013	1,263
	(－) Provision for (reversal of) underwriting reserves	(5,710)	(1,189)	4,521
	Underwriting profit (loss)	4,638	(554)	(5,192)
	(＋) Interest and dividends	2,137	3,157	1,019
Investment and	(＋) Gains (losses) on sales of securities	494	271	(223)
(－) Impairment losses on securities	-	1	1
other
(＋) Gains (losses) on derivatives	(394)	(1,869)	(1,474)
	Net investment income (loss) and other	1,304	734	(570)
Ordinary profit (loss)		5,743	13	(5,729)
(＋) Extraordinary gains	1,034	1,237	202
(－) Extraordinary losses	282	796	514
Net income (loss)		4,816	272	(4,544)
Loss ratio (private sector, E/I basis)	66.2 %	66.6 %	0.4
Fire and allied lines	100.1	86.7	(13.4)
Voluntary automobile	57.0	61.3	4.2
Expense ratio (private sector)	34.8	34.9	0.2
Combined ratio (private sector)	101.0	101.6	0.6
Net incurred losses related to natural catastrophe	4,099	4,897	797
Fire and allied lines	3,012	3,868	856
Voluntary automobile	917	945	28
Increase (decrease) in catastrophe loss reserve	(2,420)	(295)	2,124
Fire and allied lines	(3,918)	(1,769)	2,149
Voluntary automobile	1,383	1,371	(12)
Balance of catastrophe loss reserve	54,002	53,311	(690)
Reservation ratio of catastrophe loss reserve	40.0 %	38.9 %	(1.1)

3

(3) E.design Insurance Co., Ltd. (non-consolidated)

Six months ended

September 30, 2022

Key components of ordinary profit

Six months ended

September 30, 2023

(Yen in millions)

Increase

(Decrease)

	(＋) Net premiums written	15,288	13,927	(1,360)
	(－) Net claims paid	8,970	9,516	545
	(－) Loss adjustment expenses	1,990	2,034	44
	(－) Agency commissions and brokerage	199	185	(14)
Underwriting	(－) Operating and general administrative expenses on	6,294	6,766	471
	underwriting
	(－) Provision for (reversal of) outstanding claims	(141)	(198)	(56)
	(－) Provision for (reversal of) underwriting reserves	(2,219)	(1,667)	551
	Underwriting profit (loss)	205	(2,696)	(2,902)
	(＋) Interest and dividends	0	0	(0)
Investment and	(＋) Gains (losses) on sales of securities	-	-	-
(－) Impairment losses on securities	-	-	-
other
(＋) Gains (losses) on derivatives	-	-	-
	Net investment income (loss) and other	(39)	(12)	26
Ordinary profit (loss)		166	(2,708)	(2,875)
(＋) Extraordinary gains	-	-	-
(－) Extraordinary losses	-	0	0
Net income (loss)		156	(2,715)	(2,872)
Loss ratio (private sector, E/I basis)	64.5 %	74.9 %	10.4
Fire and allied lines	-	-	-
Voluntary automobile	64.5	74.9	10.4
Expense ratio (private sector)	42.8	50.3	7.5
Combined ratio (private sector)	107.3	125.3	17.9
Net incurred losses related to natural catastrophe	385	570	185
Fire and allied lines	-	-	-
Voluntary automobile	385	570	185
Increase (decrease) in catastrophe loss reserve	(825)	(505)	320
Fire and allied lines	-	-	-
Voluntary automobile	(825)	(505)	320
Balance of catastrophe loss reserve	2,304	444	(1,859)
Reservation ratio of catastrophe loss reserve	7.6 %	1.6 %	(6.0)

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3. Key figures of the domestic life insurance business

Tokio Marine & Nichido Life Insurance Co., Ltd. (non-consolidated)

								(Yen in millions)
					Six months ended	Six months ended	Increase	Rate of change
					September 30, 2022	September 30, 2023	(Decrease)
Annualized premiums
	Policies in force	804,800	786,477	(18,323)	(2.3)%
		Individual insurance	683,247	678,135	(5,112)	(0.7)
			Medical coverage, accelerated death benefits, etc.	233,898	242,469	8,570	3.7
				Medical and cancer	194,380	198,950	4,569	2.4
		Individual annuities	121,553	108,342	(13,210)	(10.9)
	New policies	24,678	23,917	(760)	(3.1)
		Individual insurance	24,678	23,917	(760)	(3.1)
			Medical coverage, accelerated death benefits, etc.	10,998	10,099	(898)	(8.2)
				Medical and cancer	7,617	6,943	(673)	(8.8)
		Individual annuities	-	-	-	-
Net income (loss)	9,700	15,687	5,987	61.7

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4. Business forecasts for the fiscal year 2023 (April 1, 2023 to March 31, 2024)

(1) Tokio Marine Holdings, Inc. (consolidated)

										(Yen in millions)
					Forecasts for the fiscal year 2023	Increase
			Actual results for		(A) Original
				forecasts		(B) Revised	(Decrease)		Rate of change
			the fiscal year 2022
				at the beginning		forecasts	(B)-(A)
					of the year
	Insurance premiums		5,541,635		5,620,000		6,010,000	390,000		6.9 %
	Ordinary profit		494,165		750,000		765,000	15,000		2.0
	Net income attributable to owners of the parent		374,605		530,000		575,000	45,000		8.5

(Note) Consolidated overseas subsidiaries that apply IFRS have started to adopt IFRS 17 from the beginning of the fiscal year 2023. The figures of comparative prior fiscal year are adjusted retrospectively in accordance with IFRS 17.

(2) Insurance premiums

							(Yen in millions)
				Forecasts for the fiscal year 2023	Increase
			Actual results for	(A) Original
			forecasts	(B) Revised	(Decrease)	Rate of change
			the fiscal year 2022
				at the beginning	forecasts	(B)-(A)
				of the year
Insurance premiums	5,541,635	5,620,000	6,010,000	390,000	6.9 %
	Net premiums written (non-life)	4,469,989	4,590,000	4,890,000	300,000	6.5
		Tokio Marine & Nichido	2,385,239	2,399,000	2,424,000	25,000	1.0
		Nisshin Fire	145,031	142,100	142,900	800	0.6
		Overseas subsidiaries	1,910,055	2,024,000	2,301,000	277,000	13.7
		Others	29,662	24,900	22,100	(2,800)	(11.2)
	Life	insurance premiums	1,071,645	1,030,000	1,120,000	90,000	8.7
		Tokio Marine & Nichido Life	513,442	479,000	474,000	(5,000)	(1.0)
		Overseas subsidiaries	559,010	556,000	652,000	96,000	17.3

(3) Net income attributable to owners of the parent

						(Yen in millions)
			Forecasts for the fiscal year 2023	Increase
		Actual results for	(A) Original
		forecasts	(B) Revised	(Decrease)	Rate of change
		the fiscal year 2022
			at the beginning	forecasts	(B)-(A)
			of the year
Net income attributable to owners of the parent	374,605	530,000	575,000	45,000	8.5 %
	Tokio Marine & Nichido	189,549	320,000	362,000	42,000	13.1
	Nisshin Fire	7,092	7,500	7,600	100	1.3
	Tokio Marine & Nichido Life	35,611	38,000	33,000	(5,000)	(13.2)
	Overseas subsidiaries	238,369	385,000	417,000	32,000	8.3
	Financial and other business subsidiaries	6,069	6,000	6,000	-	-
	Consolidation adjustment, etc.	(102,086)	(226,500)	(250,600)	(24,100)	-

(Note) Consolidated overseas subsidiaries that apply IFRS have started to adopt IFRS 17 from the beginning of the fiscal year 2023. The figures of comparative prior fiscal year are adjusted retrospectively in accordance with IFRS 17.

(Key assumptions for business forecasts)

• Net incurred losses related to natural catastrophes occurring during the period are projected to be 96.0 billion yen in Japan and 98.0 billion yen outside Japan.
• The Company assumes there will be no significant changes in interest rates, stock market conditions and currency exchange rates from those as of September 30, 2023.

The above forecasts are prepared based on business results for previous years, information available to the Company as of the release date of this document and certain assumptions. Actual results may significantly differ affected by various factors.

5. Dividend forecast (Tokio Marine Holdings, Inc.)

					(Yen)
		Actual results for	Fiscal year 2023
		the fiscal year 2022	Declared		Forecasted
		dividend		dividend
Ordinary dividends per share	100.00	121.00
	Interim dividends	50.00	60.50		-
	Year-end dividends	50.00	-		60.50

(Note) The Company implemented a stock split by a ratio of three shares per share with an effective date of October 1, 2022. For Fiscal year 2022, the amount of Ordinary dividends per share and Interim dividends per share are calculated based on the assumption that the stock split was implemented at the beginning of the Fiscal year 2022.

6

Tokio Marine & Nichido (non-consolidated)

Financial statements

1. Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated)

(1) Balance sheet

					(Yen in millions)
	As of March 31, 2023	As of September 30, 2023	Increase
	Amount	Composition	Amount	Composition	(Decrease)
	ratio	ratio
Assets		%		%
Cash and bank deposits	336,326	3.57	323,182	3.20	(13,143)
Receivables under resale agreements	999	0.01	999	0.01	(0)
Monetary receivables bought	28,475	0.30	40,532	0.40	12,057
Money trusts	8,000	0.08	8	0.00	(7,991)
Securities	7,669,605	81.36	8,217,115	81.38	547,509
Loans	314,262	3.33	421,848	4.18	107,585
Tangible fixed assets	210,525	2.23	206,323	2.04	(4,201)
Intangible fixed assets	128,793	1.37	146,073	1.45	17,280
Other assets	725,464	7.70	736,227	7.29	10,763
Prepaid pension costs	5,767	0.06	5,624	0.06	(142)
Customers' liabilities under acceptances and guarantees	1,759	0.02	1,644	0.02	(115)
Allowance for doubtful accounts	(2,867)	(0.03)	(2,865)	(0.03)	2
Total assets	9,427,112	100.00	10,096,715	100.00	669,603
Liabilities
Insurance liabilities	5,500,921	58.35	5,611,136	55.57	110,214
Outstanding claims	1,191,164		1,324,286		133,122
Underwriting reserves	4,309,757		4,286,849		(22,907)
Corporate bonds	200,000	2.12	200,000	1.98	-
Other liabilities	515,705	5.47	520,953	5.16	5,247
Income taxes payable	6,124		43,626		37,501
Lease obligations	2,265		2,407		141
Asset retirement obligations	5,740		5,675		(65)
Other liabilities	501,574		469,243		(32,330)
Provision for retirement benefits	208,468	2.21	208,520	2.07	52
Provision for employees' bonus	18,627	0.20	24,788	0.25	6,161
Provision for loss on business of subsidiaries and	20,591	0.22	-	-	(20,591)
affiliates
108,000	1.15	111,084	1.10	3,083
Reserves under special laws
Reserve for price fluctuation	108,000		111,084		3,083
Deferred tax liabilities	30,278	0.32	133,959	1.33	103,680
Acceptances and guarantees	1,759	0.02	1,644	0.02	(115)
Total liabilities	6,604,353	70.06	6,812,086	67.47	207,733
Net assets
Share capital	101,994	1.08	101,994	1.01	-
Capital surplus	135,434	1.44	135,434	1.34	-
Additional paid-in capital	123,521		123,521		-
Other capital surplus	11,913		11,913		-
Retained earnings	1,184,509	12.56	1,282,124	12.70	97,614
Surplus reserve	81,099		81,099		-
Other retained earnings	1,103,410		1,201,025		97,614
Reserve for advanced depreciation of fixed assets	22,902		22,902		-
Reserve for open innovation tax incentive	1,769		1,769		-
Special reserves	235,426		235,426		-
Retained earnings carried forward	843,312		940,927		97,614
Total shareholders' equity	1,421,939	15.08	1,519,553	15.05	97,614
Unrealized gains (losses) on available-for-sale securities	1,429,173	15.16	1,807,885	17.91	378,712
Deferred gains (losses) on hedge transactions	(28,353)	(0.30)	(42,810)	(0.42)	(14,457)
Total valuation and translation adjustments	1,400,819	14.86	1,765,075	17.48	364,255
Total net assets	2,822,759	29.94	3,284,629	32.53	461,870
Total liabilities and net assets	9,427,112	100.00	10,096,715	100.00	669,603

7