MS&AD Insurance Group (8725) Investor update summary

Growth Strategy and Vision

• Targeting transformation into a globally respected comprehensive insurance company by 2030, integrating non-life and life insurance, with a focus on international expansion, domestic business optimization, and leveraging AI and unified asset management.

• International business management is being centralized, with the International Executive Committee evolving into MSIG International to drive group-wide growth and talent development, focusing on US expansion and multinational talent.

• Domestic life insurance is adapting to the shift from savings to investment, expanding asset-building products, leveraging partnerships like MassMutual, and reviewing structure for optimal governance.

• Domestic non-life insurance will realize merger synergies, implement rate increases in auto and fire insurance, integrate MSI and ADI products by April 2027, and aims for 150 billion yen in cost reductions by FY2030.

• Asset management is unified under Barings, aiming for enhanced performance, capital efficiency, and global investment capabilities, with AUM expected to grow from 18.6 trillion yen in 2026 to 20.4 trillion yen by 2030.

Financial Targets and Shareholder Returns

• Adjusted profit target for FY2030 raised to JPY 800 billion, with a path to JPY 1 trillion in the early 2030s, and adjusted ROE targeted at over 11% (15% level in some forecasts), driven by diversified business growth.

• EPS growth target set at 11%+, with progressive dividend increases and share buybacks totaling 270 billion yen for FY2026.

• Shareholder returns set at 50% of adjusted profit, with a shift from special to ordinary dividends as equity sales progress.

• FY2025 dividend forecast is JPY 160, FY2026 is JPY 170.

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

Business Initiatives and Capital Allocation

• International business aims for JPY 600 billion adjusted profit in the early 2030s, focusing on the Americas, leveraging partnerships like W. R. Berkley, and optimizing capital via a Bermuda-based retention vehicle.

• Domestic life insurance is reviewing its structure to enhance transparency and customer trust, with a focus on new product development and capital efficiency.

• Direct channel strategies are being strengthened, with Mitsui Direct rebranding and closer coordination among group companies.

• Proceeds from accelerated equity sales to be invested in new business, organic growth, and additional returns, with a focus on the Americas and Asian markets.

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