Tokio Marine Holdings (8766) Investor update summary

Key financial performance and guidance

• Adjusted net income for FY 2024 reached JPY 1.2 trillion, with FY 2025 guidance for adjusted net income to exceed JPY 1 trillion, driven by gains from business-related equity sales.

• EPS growth achieved a 19.9% CAGR over the past five years, placing the group among the global top tier.

• DPS for FY 2025 is set at JPY 210, a 22% increase, marking 14 consecutive years of dividend growth.

• ROE stands at 12.6% (19.8% including equity sales), with a focus on narrowing the gap with global peers.

• Share buybacks of JPY 220 billion are planned for FY 2025, with JPY 110 billion already approved and supported by a strong ESR of 149%.

Strategic initiatives and business transformation

• Ongoing transformation includes capital reallocation from business-related equities to core and solutions businesses, targeting zero business-related equities by FY 2029.

• The Re-New initiative is reforming industry-rooted practices, improving profitability and governance.

• Focus on expanding the solutions business, especially in disaster resilience, leveraging the acquisition of ID&E Holdings and engineering expertise.

• Use of AI and data is being promoted across all business processes to enhance value creation and operational efficiency.

• Initiatives in healthcare, decarbonization, and mobility are being scaled, including new digital platforms and partnerships.

International and domestic business updates

• North American business drives 80% of international profit, with strong growth in specialty P&C and employee benefits lines, and asset management AUM expected to exceed $70 billion.

• Brazilian operations have doubled market share in auto insurance over 10 years, with industry-leading cost efficiency and digital transformation.

• Japan P&C business is implementing significant rate hikes in auto and fire insurance to restore profitability, with specialty insurance identified as a major growth area.

• Structural reform of distribution channels aims to reduce admin expenses and agency commissions, targeting an E/R below 30%.

• Group synergies generate annual profits equivalent to large-scale M&A, leveraging global expertise and networks.