MS&AD Insurance Group (8725) Investor presentation summary

Strategic direction

• Vision: become a comprehensive insurer offering non-life and life coverage worldwide, while evolving into an insurance and financial services group.

• Maximize synergies across domestic and international non-life, life, direct insurance and financial services to build a global-peer-scale insurer.

• International business aspiration beyond 2030: help shape a more resilient world; target $4.0bn adjusted profit and ROE of 15% or higher.

• Establish MSIG International to strengthen cross-entity governance, global talent, decision-making and group-wide capital optimization.

Financial targets and earnings drivers

• ROE was 9.9% in FY2025 excluding gains from strategic equity sales; targets are 11% or higher by FY2030 and 15% in the early 2030s.

• Adjusted profit target: ¥800bn in FY2030 versus ¥525.5bn in FY2025; early-2030s illustrative target is ¥1,000bn.

• Planned profit contributions include ¥100bn from W. R. Berkley earnings and synergies, ¥75bn from Barings, and ¥150bn in domestic non-life merger cost savings.

• Portfolio optimization based on return on risk, alongside share buybacks and disciplined capital deployment, is intended to support sustainable ROE and EPS growth.

Domestic business and capital allocation

• Domestic non-life strategy targets ¥150bn in merger cost savings by FY2030, continued rate revisions and agency reform; April 2027 rate revisions include auto ~6% and fire ~5%.

• Domestic life strategy expands asset-type products beyond bank channels through agency distribution, MassMutual product collaboration, Barings asset-management capabilities and reinsurance transactions.

• Strategic equity-sale proceeds are intended to fund growth investments and additional shareholder returns; broad issuer agreement has largely been obtained for sales through FY2029.

• Basic shareholder returns target 50% of adjusted profit, including strategic equity-sale gains, through dividends and buybacks; dividends follow a progressive policy.