Tokio Marine Holdings (8766) Investor update summary

Market Overview and Financial Performance

• Brazil's insurance market totals $34 billion for P&C and life, with a projected 6.6% CAGR over the next decade.

• Holds a 6.5% market share, ranking fourth overall and second among non-banking insurers, with $2.4 billion gross written premium and $245 million net income in 2023.

• Gross written premium grew 633% (18% CAGR) since 2011, consistently outpacing market growth.

• Combined ratio improved from 106.6% in 2011 to 86.7% in 2023, outperforming peers.

• Administrative expense ratio improved from 20% to 8.5%, maintaining best-in-class efficiency since 2015.

Strategic Drivers and Operational Excellence

• The 4Ps strategy (People, Process, Product, Passion) underpins growth, differentiation, and efficiency.

• Employee satisfaction rose from 67% in 2011 to 93% in 2023, with low turnover and consistent GPTW recognition.

• Stable top management since 2013 supports continuity and strategic execution.

• Automation, insourcing, and technological innovation, including AI and robotic process automation, have reduced costs and improved service.

• Technology investment is about 2.5% of gross written premium, with 300 IT staff (15% of headcount).

Distribution, Product Mix, and Market Share

• Nearly 100% of distribution is via brokers, with a growing focus on digital and ecosystem partnerships.

• Product mix is diversified: 61% auto, 29% commercial, 5% personal, 5% life, with over 60 products offered.

• Achieved significant growth in auto (x11.6), commercial (x19.1), life (x2.4), and personal lines (x6.2) since 2011.

• Broker base expanded from 10,000 to over 42,000 in 10 years, representing one-third of Brazil's brokers.

• Multi-line offerings and service quality drive broker loyalty and market share gains from competitors.