MS&AD Insurance Group (8725) investor relations material

Growth strategy and business transformation

• Aims to become a globally respected comprehensive insurance provider by 2030, integrating non-life and life insurance for individuals and society worldwide, with a focus on international expansion, domestic business restructuring, and leveraging AI and system enhancements.

• International business management is being centralized, with the International Executive Committee evolving into MSIG International to drive group-wide growth and talent development, targeting 600 billion yen profit in the early 2030s and focusing on US expansion and group synergies.

• Domestic life insurance is being reviewed for optimal structure, expanding asset-building products, leveraging partnerships like MassMutual, and focusing on transparency and customer trust.

• Asset management is unified under Barings, aiming for enhanced group-wide investment performance, capital efficiency, and expanding global investment capabilities.

• AI and digital transformation, human capital development, and ESG investments are prioritized to adapt quickly to market changes, improve operational efficiency, and support long-term growth.

Financial targets and capital policy

• Adjusted profit target for fiscal 2030 raised to 800 billion yen, with a longer-term goal of 1 trillion yen in the early 2030s, and adjusted ROE targeted at over 11% (15% level in some projections), with EPS growth at 11% CAGR.

• FY2025 adjusted profit (IFRS) expected at 918.7 billion yen (525.5 billion yen excluding equity gains); FY2026 forecast at 800 billion yen (532 billion yen excluding equity gains).

• Shareholder returns set at 50% of adjusted profit, with a progressive dividend policy, annual dividends projected at 160 yen for FY2025 and 170 yen for FY2026, and share buybacks totaling 270 billion yen in FY2026.

• Strategic equity holdings sales are being accelerated, with about 70% of planned sales to be completed by FY2027, reallocating proceeds to growth investments and shareholder returns.

• ESR (Economic Solvency Ratio) target set at over 180% to ensure financial soundness.

International and domestic business initiatives

• International business aims to contribute 600 billion yen to group profit, focusing on the Americas, leveraging partnerships like W. R. Berkley, and considering bolt-on acquisitions in Asia for distribution and operational synergies.

• Enhanced global HR systems and centralized management are expected to attract and develop multinational talent.

• Domestic non-life insurance will realize merger synergies, with cost reductions of 150 billion yen targeted by FY2030, ongoing premium rate revisions, and integrated product offerings from April 2027.

• Direct channel strategies are being strengthened, with Mitsui Direct rebranded and integrated into group offerings.

• Strategic investments include a 15% stake in W.R. Berkley and an 18% stake in Barings, aiming for synergies in underwriting and asset management.