Tokio Marine Holdings (8766) Investor update summary

IFRS adoption and KPI redefinition

• Transition to IFRS at the end of fiscal 2025 (with full implementation from FY2026) will align financial reporting with economic value and global peers, enhancing transparency and comparability.

• Adjusted net income will exclude capital gains/losses from asset management, focusing on underwriting profit plus investment income, and will be used as a new KPI for both group and business units.

• Adjusted ROE will be calculated using adjusted net income and net assets, excluding unrealized gains/losses, and will include goodwill and intangibles.

• FY 2024 adjusted net income is projected at JPY 805.0 billion, FY 2025 at JPY 840.0 billion, with adjusted ROE at 13% for both years.

• IFRS-based forecasts and disclosures will begin in May-June 2026, with full transition and reporting in securities filings.

Dividend and shareholder return policy

• Dividends remain the primary shareholder return, with a policy of sustainable DPS growth in line with profit growth and top-tier EPS growth.

• The averaging period for adjusted net income used for dividends will shorten from five to three years, with DPS for FY 2026 based on the three-year average of IFRS-based adjusted net income from FY 2024-2026.

• Share buybacks will continue, targeting 2% EPS growth, with flexibility based on market and M&A conditions.

Capital policy and ESR changes

• ESR definition will be revised to align with new Japanese capital regulations and global standards, using a 99.5% Value at Risk, with a target set at 190% or higher, equivalent to maintaining AA-rated capital adequacy.

• The upper end of the ESR target range will be abolished to allow more flexible capital allocation.

• Capital generated will be prioritized for M&A and risk-taking to drive profit and ROE growth; surplus capital may be returned to shareholders.