Tokio Marine : Integrated Annual Report_2of4

Part 1 The Story of Our Purpose Strength 3

Integrated Group Management

Tokio Marine deploys its diverse workforce, including talent acquired through M&A, optimally on a global basis to utilize their expertise and wisdom to resolve issues and to generate synergies.

Utilizing strong local expertise and capabilities across the entire Group

Marine Tokio

Establishment of strong localities

The insurance business is a collection of local businesses because	establish a dominant competitive position. In actuality, each Group
no matter how global a business becomes, regulations, culture and	company has established the strongest localities in each region
social issues vary depending on country and region. As a result, for	where it operates by steadily enhancing its capabilities (please see
the entire Group to continue growing, Group companies must build	pages 120 and 121). We are a global company precisely because of
a unique business model rooted in their regions and markets to	this strong local presence.

Generating Group synergies with the Group's capabilities

Main areas for synergy generation

Revenue		Investment
(Expanding topline)		(Expanding investment income)
Leverage our global network		Leverage DFG's asset
Group	synergies	management capabilities
Annual	results:
USD	295mn

01

Our of Story The

2021 Report Annual Integrated | .Inc Holdings,

Our strong localities are further refining their strengths and accelerating growth by fully harnessing the Group's capabilities of product lineup, underwriting capacity, and sales network. As a result, in the four areas of revenue (expanding topline), investment (expanding investment income), capital (optimizing retention/reinsurance*) and cost (reducing costs), Group synergies have materialized, resulting in profit contribution of around ¥30 billion this year and over ¥130 billion since fiscal 2016.

Companies that can generate quantitative effects from such synergies are rare. This is why we give such importance to this within our strength of integrated group management. More concretely, most companies attempt to generate cost synergies by rightsizing their workforce, but in our case, our workforce has increased over the years because the companies we acquire

generate even more growth after joining the Group. In addition to growing cross-selling (revenue) using our diverse and broad product lineup along with our global sales network, we are expanding investment income (investment) through DFG with its sophisticated know-how in asset management, optimizing retention/reinsurance (capital) including underwriting capacity, and steady progress with the necessary cost synergies such as joint purchasing of systems. Today, discussions about achieving these synergies are being held actively among each Group company rather than led by the holding company. For example, proactive discussions on generating synergies with PURE Group are taking place during the CEO conference in North America. In this manner, the Group's sense of solidarity is growing.

Capital	(Dec. 31, 2020)	Cost
(Optimizing retention/reinsurance)		(Reducing costs)
Optimize retention / reinsurance		Leverage group resources and
on a group basis		economies of scale

Impact on profits from Group synergies (cumulative)

(USD mn)
1,500	1,303

Purpose

* Transferring some underwritten risk to other insurance companies through reinsurance for risk diversification and other purposes

1,000

500

170

0	2016	2017	2018	2019	2020

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	Strength 3
Part 1	The Story of Our Purpose
		Integrated Group Management

Personnel with advanced expertise are appointed to core positions for the Group's strategy

Assigning our talented workforce optimally to enhance the Group's strategy execution and capabilities

Internal Audit

DesmondYeo

Reserving*3

DanielThomas

Synergies go beyond quantitative figures. We have diversified risk and grown our business through M&A. However, the greatest outcome from these transactions has been the acquisition of talented people, expertise and wisdom. We assign our talented workforce to the positions best suited to them globally. Best practices combining the expertise and wisdom of Group companies is deeply incorporated and utilized in the Group's strategies to enhance the execution of measures Groupwide.

For example, top management of acquired companies are appointed to the position of Group Co-Head of the entire Group's asset management and international insurance operations. Personnel with particularly advanced expertise also play an active role as a focal point of strategy being implementing cross-functionally across the Group. In this manner, our chief officer system*1 and functional global committees, which include top management from outside, Japan have

the Group works collectively on global issues as if by second nature. The Post COVID-19 Task Force, in which top management from

overseas also participates, was launched in the summer of 2020 and since then it has utilized the wisdom of our workforce outside of Japan to upgrade the Group's strategy aimed at the post-COVID-19 world (please see page 69).

During the three years of the previous Mid-Term Business Plan, besides the novel coronavirus, Tokio Marine faced the challenges of natural disasters and a low interest rate environment. A major accomplishment during this plan was to enhance the capabilities of integrated group management by overcoming these issues using the Group's collective wisdom.

Tokio Marine's integrated group management was included in a case study*2 of the Harvard Business School for its uniqueness as a strategy. We will now take steps to increase the level of integrated

TM Asia Regional Head of Internal Audit (Additional post: HD)

Previously worked as an Internal Audit Director of a Global Insurance company. 23 years of working experience in areas of IA, ERM and IT risk management.

Specialty

Philippe Vezio

TM Asia Deputy CEO & Chief U/W Officer (Transferred from TMHCC Barcelona)

Engaged in various senior positions in a Specialty business unit writing international business.

Chairperson of International P&C Reserving

Actuary Committee

Worked as an adviser on reserving to global insurance companies for over 20 years at a major audit firm.

Legal & HR

Caryn Angelson

TMNAS CHRO & CLO (Concurrent posting at TMHD)

Leveraging her background as a lawyer at a global law firm with a focus on litigation, Caryn provides legal counsel to various global corporate functions across a broad range of issues, including in the field of employment and labor.

been firmly ingrained in the Group over the past six years. In addition,

group management and further enhance our problem solving ability.

Reinsurance

Barry Cook

Cyber Insurance

Daljitt Barn

Globalize and enhance our management structure

Generate Group's collective strength

Group CEO / CCO

• Focus on Group management

Domestic

Domestic

International

Financial

Non-life

Life

and

Culture

• Initiatives to spread our Group culture

Insurance

Insurance

Insurance

Other

Business

Business

Business

Business

Group Chief Officers

Functional Global Committees, etc.

CEO of International Group at TMHCC

(TMHD Global Reinsurance Advisor)

Leads TMHCC's International businesses, and has over 30 years service with TMHCC and a reinsurance brokerage company Barry started that was acquired by TMHCC.

Cyber Centre of Excellence

Global Head of Cyber Risk

At his previous position, he formulated and deployed cyber insurance strategy at a global reinsurance company, following more than two decades working as an expert in cyber risk.

			CFO Financial	Top management both in Japan and overseas
			CSSO Strategy and Synergy
			discuss various Group management issues
			CDO Digital
Tokio	CRSO Retention Strategy		ERM	Enterprise Risk Management Committee	• Create synergies and share
Co-CRSO Retention Strategy					best practices in a
			cross-organizational manner
Marine	CIO Investment	International	International Executive Committee	• Brings together the knowledge
		Insurance
Co-CIO Investment
			of the Group to solve
Holdings,	CHRO Human Resources		Digital	Digital Round Table	Group-wide problems
CWO Wellness				• Involve overseas personnel in
					Group management
.Inc	CRO Risk	Retention	Global Retention Strategy Committee
		Strategy
CLCO Legal and Compliance
|
Integrated
CITO InformationTechnology	Investment	Global Investment Strategy Committee
CISO Information Security
Annual	CSUO Sustainability	IT	Global InformationTechnology Committee
CDIO Diversity & Inclusion
2021 Report
					Top management from overseas Group companies are appointed to
Optimal assignment of talented workforce
			the position of Group Co-Head and others
			Donald Sherman			Christopher Williams
			Senior Managing Executive Officer	Senior Managing Executive Officer
			Co-CIO				Co-Head of International Business
			(Group Co-Chief Investment Officer)	Co-CRSO
			Delphi Financial Group CEO		(Group Co-Chief Retention Strategy Officer)
								Former HCC Insurance Holdings CEO
			Robert O'Leary			José Adalberto Ferrara
			Managing Executive Officer		Executive Officer
			Assistant Officer Responsible for North	Chief Executive Officer of Tokio Marine
			America (excluding certain subsidiaries)	Seguradora S.A.

Chairperson of Philadelphia Consolidated

Holding Corp.

Susan Rivera

Executive Officer

Chief Executive Officer of HCC Insurance

Holdings, Inc.

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*1: Tokio Marine has adopted a system in which its chief officers manage the strategies and policies of the entire Group for each particular field, thereby leveraging	01
functions in a cross-organizational manner.
*2: DAVID COLLIS, AKIKO KANNO, "Tokio Marine Group (A)", "Tokio Marine Group (B)", HARVARD BUSINESS SCHOOL, SEPTEMBER 15, 2020
*3: To estimate future payments on reported and unreported claims, with respect to insured events that have occurred
	Penetration of our purpose as a foundation		of Story The
				Our
workforce of more than 40,000 employees worldwide is united as	and society and how they can contribute to the world as a team.
	Purpose
It is important to foster an integrated culture where our diverse	opportunity to think about how their work is benefiting customers
one team in order to maintain the same passion during both	Through this dialogue, information is shared Groupwide and the
emergencies and normal times as they go about resolving	meaning of work is further instilled in employees.
challenges. Tokio Marine is working to penetrate its purpose by	At Tokio Marine, the CEO who also serves as the Group Chief
hosting "Majikirakai," a group that talks about serious matters very	Culture Officer (CCO) takes the lead in efforts for penetrating our
casually, globally for various levels of employees, including between	purpose. He engages our employees around the world both
officers, officers and employees, and among employees. The	physically and remotely to ask "What is our business for?" to foster
important aspect of these Majikirakai is that employees have the	this mindset in our culture Groupwide.

Dialogue with employees aimed at penetration of our purpose

Majikirakai led by President Hirose via Zoom (2020)

Majikirakai led by CEO Komiya at PHLY (2019)

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Part 1 The Story of Our Purpose Our Aspiration

Question

What are we aiming for?

Answer

Become a company that is always there for customers to support them in their times of need

Protecting customers and society in their times of need has been Tokio Marine's purpose since our founding. This has remained the same no matter the time period. We also believe that this purpose alone should never change.

Currently, our business environment is changing profoundly and rapidly during the COVID-19 pandemic, increasing expectations placed on the insurance industry as a form of social infrastructure. During such a difficult time, focusing solely on the conventional insurance business will make it challenging to continue to meet the true, constantly changing expectations of society and customers. For example, in response to the growing severity of natural disasters and rising number of cyber risks, are we able to fulfill our purpose simply by paying out insurance claims during an event? Needless to say, paying out insurance claims is the most important function of an insurance company, so our mission is first and foremost to carry this out without fail. However, preventing accidents, mitigating the burdens from these accidents if they occur, and quickly restoring and preventing recurrence are also important. Such peace of mind before and after an event and providing value beyond just the payment of insurance claims will likely become more

important in the future. Therefore, we are dramatically expanding the domains where we provide value in a wide range of fields including health care, disaster prevention and mitigation, mobility and cyber, while thoroughly utilizing digitalization. In this manner, we are attempting to evolve into a company that is always there to aid our purpose of supporting customers in their times of need.

As the times change so does social issues and the solutions required. This is a given. As we approach a turning point today, we believe it will be important to carefully examine the domains where we should play a role and embark on bold reforms.

Tokio Marine will continue to contribute to a sustainable society and simultaneously increase social value and economic value (profit growth), while creating a cycle of business activities and solutions to social issues as a leader in solutions to social issues.

By quickly implementing this cycle of solutions to social issues and business activities along with continual improvement, we will continue to provide value to all stakeholders and become a "Good Company" that is truly needed and trusted by all even a century later.

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[Sample image of system screen] Instantaneous forecasting of flood areas

	Special Feature 1
Part 1	The Story of Our Purpose
		WhatTokio Marine Aims For in the Future

We will thoroughly utilize digitalization in an effort to expand business domains to evolve into a company that always supports its customers.

Becoming a company that always supports its customers to support them in their times of need means not only paying out

information on their living habits may enable us to provide advice so that they are less prone to sickness or prevent health conditions

Examples of expanding business domains *Please see pages 15 and 52 to 53 for mobility and pages 80 and 81 for cyber

insurance claims, but also detecting possible accidents customers may encounter, helping prevent customers from experiencing these accidents, and offering advice that will help customers regain their health should they become sick. Internally, we refer to this as providing peace of mind before and after events. We believe that we will only be able to fulfill our purpose after achieving such a presence.

Digitalization is one vital aspect that will empower us to expand business domains and evolve into a company that always supports its customers. For example, it may be possible to prevent customers from getting into a traffic accident by analyzing their driving tendencies. Obtaining customers' health data and

from becoming severe if they do. The Tokio Marine Group's aspiration can be found here.

In July 2021, the Tokio Marine Group established Tokio Marine dR Co., Ltd. (TdR) to head up our core data functions in order to evolve into a company that always supports its customers. TdR will become a focal point of the Group's sophisticated digital capabilities and spearhead efforts to strengthen the Group's data analysis and solution development capabilities. Utilizing TdR's digital capability, we will provide powerful peace of mind before and after events in the fields of disaster prevention and mitigation, health care, mobility (please see pages 15 and 52 to 53) and cyber (please see pages 80 and 81).

Disaster prevention and mitigation

In recent years, Japan as a whole has seen an increase in the number of natural disasters causing significant damages. With regard to water damages in particular, the torrential rains that hit Western Japan in 2018, Typhoon No. 19 (Hagibis) in 2019, and the torrential rains in Kyushu in 2020 resulted in large scale flooding and rivers overflowing their levees.

In the case of flooding disasters, local governments must make decisions regarding evacuations in a swift and appropriate manner. For this reason, it is important to gather information immediately after a flood in a timely manner.

Going forward, TMNF and TdR will provide this system to local governments already using an integrated geographic information system (GIS) to contribute to strong local communities that are resilient in the face of natural disasters. As a result, we will earn positive evaluations from customers by preventing accidents before they happen and reduce the loss rate.

Overview of Group-wide initiatives through TdR

Amidst this, in April 2021 TMNF and TdR (Tokio Marine Risk Consulting as of April 2021) newly developed a flood hazard prediction system using AI with the cooperation of the National Research Institute for Earth Science and Disaster Resilience. This system is able to

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| .Inc Holdings, Marine Tokio

Launch of business aimed at new value creation

Original risk data	Reinforcing the Group's		Expand various Rs
	while collaborating
platforms	data analysis and solutions	R	across the Group
	development capabilities	Group companies, etc.
	d	REVEAL

New value provided

Be able to underwrite new risk and risks that we did not typically underwrite before (provide coverage)

instantaneously predict areas of flood damage, present threat levels in real time, and visualize the number of households and age-group-specific population in areas with high threat levels.

Management Sustainability

2021 Report Annual Integrated

		Detect threats and	1
Disaster	data	clarify risks
prevention and
mitigation
	• Our original risk data	REDUCE	Data-driven
	products
	platform	Reduce risk and
	• Sophisticated data	eliminate accidents
	analysis system
Health care		REFINE	2
	digital
	Improve health
	• Research and utilization
	of cutting edge	RETAIN	Risk solutions
	beyond
	technology and IoT
Mobility	devices	Underwrite new risk	insurance
		and risks that we did
	design	not typically
	underwrite before	3
	• Agile development
	implementation system	RESILIENCE
Cyber		Achieve resilient	Risk algorithm
		business	Overseas Group
		local communities

Provide new technologies and solutions in the field of early detection and prevention seamlessly linked with insurance products

Make society a better place (eliminate accidents and improve health) by encouraging behavioral changes among customers and local communities based on risk visualization and future forecasting

Health care

As we enter an era of 100-year lifespans and extension of healthy life expectancy becomes an important social issue, there is growing demand mainly among middle aged and elderly customers for living a long, healthy and independent life.

Given such environmental changes, in August 2020, TMNL released Medical Kit Yell, a medical insurance with relaxed underwriting criteria expanding coverage to people with chronic disease or people with health concerns, in order to deliver peace of mind to as many customers as possible.

Medical Kit Yell analyzes big data to fundamentally change insurance underwriting criteria to expand the number of people eligible for insurance and to keep premiums low. In addition, people with chronic

disease or people with health concerns are highly interested in receiving support from a medical professional or finding ways to prevent serious complications associated with an illness. There is also growing interest in easing health concerns online owing to the COVID-19 pandemic. Medical Kit Yell offers two new online services that deliver even greater peace of mind and health to customers as they go about their daily lives.

Medical Kit Yell, which was developed extensively with digitalization, has recorded strong sales second only to Medical Kit R, our best-selling product ever*1. TMNL will continue to deliver greater peace of mind to customers while utilizing the digital capability of TdR.

							companies
							Etc.
Etc.	Consolidate the			Strategic JVs
	Group's sophisticated			with AlgoNaut
	digital capability			and PKSHA

Become a company that always supports its customers to support them in their times of need

Examples of new online services

We offer online health consultations*2, second opinion appointments, a first-of-its-kind in the life insurance industry where customers can designate a hospital, and exam booking services where customers can designate a physician or hospital.

To support customers' health management and efforts to prevent serious complications, we will offer a health advice app that supports people's everyday life, including eating, exercise and sleeping habits, using an AI-powered virtual dietitian.

*1: Limited to protection-type products

*2: Implemented within the scope of remote health consultations permitted under the "Guidelines on Appropriate Implementation of Online Physician Visits."

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Part 1 The Story of Our Purpose Our Approach to Value Creation

The Group we aim to be

A global insurance group that delivers sustainable growth by providing safety and

security to customers worldwide

-Our timeless endeavor to be a Good Company-

For Customers

For Society

For Future

For Employees

For Shareholders /

Generations

Investors

Contributing to the

Contributing to creating

Passing on a

Contributing to

Sustainable growth of

realization of healthy

a sustainable society

sustainable

employees' high

shareholder returns.

and enriched lives of

where can live in safety

environment to the

performance by

Working to gain the

our customers by

and security, and take

future generations

providing opportunities

trust of shareholders /

delivering safety and

on any challenges

to work brightly and

investors and improve

security and by

vibrantly and through

corporate value

supporting them in

engagement

through appropriate

challenges that lead to

disclosure and

the future

constructive dialogue

Medium- to long-term targets	Adjusted Net Income			Adjusted ROE	Payout ratio
(milestones) to achieve during the	Over ¥ 500 bn				About 12 %	Increase to levels on par with global peers
new Mid-Term Business Plan				(approx. 50%)

100 years from now

Upward value creation spiral

Simultaneously increase social value and economic value

Create a cycle of business

activities and solutions to social issues to further enhance problem solving capabilities and refine strengths and strategies

The society we aim to create

A sustainable society in which everyone can live in safety and security,

and take on any challenge

01

02

03

04

05

06

07

Resilient world

World with

World offering

World of

A safe, secure

World that

World with a

at peace with

extended healthy

a sense of

increased

and comfortable

fosters children

sustainable

natural disaster

life expectancy

purpose and

national strength

world based on

with the

environment

risks

and where

motivation to all

supported by

urban strategies

strength to live

that is passed

everyone can live

industrial and

led by Tokio

down to future

independently

regional

Marine Group

generations

and affluently with

innovation

peace of mind

Targets for Fiscal 2030

• Reduce our own greenhouse gas emissions by 60% (compared to fiscal 2015)

• Increase the ratio of renewable energy in electricity consumption at main

business locations to 100%, etc.

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07

Social issues forming the basis

* Based on emissions from our business activities

for identification of materiality

(Scopes 1+2+3 (Categories 1, 3, 5 & 6))

Pages 72-73

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2021 Report Annual Integrated | .Inc Holdings, Marine Tokio

Eliminate	Quickly restore
uncertainty by	and prevent
underwriting risk	recurrence

Provide value through resolution of social issues

-Realize our purpose unchanged

from time of founding-

We will achieve our purpose by not only supporting customers and local communities in their times of need through the payment of insurance claims, but also expanding domains where we provide value before and after events (always there for customers).

	Identify all risks	Provide safety and
	facing customers and	security, including	Cover damages
Detect risk and	propose the right	before and after
products and	events, using	and encourage
avoid/control
damages	services	digitalization	efforts to tackle
			challenges

Foundations Underpinning Value Creation

Strengths Cultivated byTokio Marine Group

The Ability to Deliver Security and	Portfolio Management Ability	Integrated Group Management
Expand Safety
Pages 14-17	Pages 18-21	Pages 22-25

Present

Pages 48-51

Unlocking growth through resolutions to

social issues 2+1 growth strategy in the new Mid-Term Business Plan

New Markets		Enhance
		profitability of
New Approach		insurance business

Business investment

for the next growth stage

Pages 16-17	Past

History of resolving social issues constantly

changing with the times

2002 Release of Super Insurance, Japan's first integrated life and non-life insurance product

2001 Launch of microinsurance for farmers in India

1999 Start of provision of cyber-related coverage from early on at U.K.-basedTMK

1959 Release of Japan's first liability insurance

1914 Launch of Japan's first auto insurance

1879 Founded as a marine insurance company for supporting trade

02

07

Global climate change and

increase in natural

disasters

Rising burden of nursing

and medical care due to

Protection of natural

aging population and

resources and

progress in medical

biodiversity

technology

Persistent core

social issues

03

Equal

opportunities 06

Social disparity

through education

and inclusion

Industrial foundations for	Operating environment
supporting economic	changes stemming
growth and	from technological
innovation	innovation
04	05

Changing customers and social needs and increasing diversity and complexity of social issues

01

Purpose Our of Story The

Robust and transparent corporate governance measures Pages 92-113

Global warming	Demographic changes	COVID-19 pandemic	Rapid progress of
DX, etc.

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