Tokio Marine Holdings (8766) Investor update summary

Strategic Goals and Capital Strategy

• Aspiration 2035 targets doubling profits and raising ROE to 17% or higher, focusing on organic growth, selective M&A, and integrated capital strategy.

• High-quality M&A will be pursued only when aligned with long-term aspirations, leveraging strong capital and execution capabilities.

Underwriting Excellence, Strategy, and Market Environment

• Expertise in risk assessment, pricing, and product development drives disciplined and agile underwriting, supported by global knowledge sharing and optimized reinsurance strategies.

• Japan P&C market is transforming, emphasizing underwriting discipline over market share, with risk-based pricing and agency reforms.

• Sustainable profit growth relies on disciplined underwriting, agile risk assessment, and product development to capture new risks and growth areas.

• Integrated management pools underwriting expertise across entities, leveraging global committees and centers of excellence for cyber, casualty, and auto risks.

• Cyber risk underwriting benefits from global data gathering, annual summits, and diversified portfolios by size, industry, and geography, with Asia representing a larger share than the market average.

Profitability Improvement and Risk Management

• Fire insurance profitability improved through risk-based pricing, inflation-adjusted insured amounts, and advanced risk models, maintaining loss ratios below industry average.

• Proprietary risk models and PDCA cycles enhance fire insurance results, with granular pricing and risk-based underwriting.

• Intensive measures for underperforming policies include AI-driven risk identification, tailored actions, and strong sales-underwriting collaboration, limiting non-renewals.

• Sales and underwriting teams collaborate to optimize coverage, implement rate increases, and reduce excessive capacity, achieving profitability while retaining policies.

• North American liability portfolio focuses on high-severity excess layers, with intensive measures since FY2023 to improve profitability and reduce exposure.

• Profit improvement measures have reduced large loss exposure by 70%, with long-tail liability claims meaning benefits will materialize gradually.

• Legacy contract impacts are diminishing, with future profitability expected to improve as countermeasures take effect.