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5-day change | 1st Jan Change | |
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3,676.00 JPY |
+1.24% |
+5.72% |
+30.08% |
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Official press release from TOKIO MARINE HOLDINGS, INC.
November 22, 2023 at 12:40 am EST
TOKIO MARINE GROUP BUSINESS STRATEGY
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I. Sustaining World’s Top-Class EPS Growth |
P. 4 |
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II. Lift ROE to World’s Top-Class |
P. 25 |
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III. Vision and Next MTP (Direction) |
P. 31 |
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IV. Reference |
P. 40 |
- Abbreviations used in this material
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TMHD |
: Tokio Marine Holdings |
PHLY |
︓Philadelphia |
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TMNF |
: Tokio Marine & Nichido Fire Insurance |
DFG |
︓Delphi Financial Group |
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NF |
: Nisshin Fire & Marine Insurance |
TMHCC |
︓Tokio Marine HCC |
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TMNL |
: Tokio Marine & Nichido Life Insurance |
TMK |
︓Tokio Marine Kiln |
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TMSR |
︓Tokio Marine Seguradora |
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“Normalized basis” in the material generally refers to the definition where Nat Cats are adjusted to average level |
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(other adjustments will be stated in the text) |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
2 |
Sustaining
World’s Top-class
EPS Growth
Confidence in
Maintaining ROE
at the Existing
World Class Top
Level
Continue Balance
Between Profit
Growth and
Governance at
High Levels
World’s top-class EPS growth at +13% (10Y CAGR*)- EPS growth is attributable to strong organic growth (10Y CAGR* of +12%; projected +9% YoY growth in FY2023). With a robust, globally diversified underwriting portfolio and strong investment income leveraging its liability characteristics as the source of earnings, steadily continue achieving the world’s top-class growth
- World’s top-class DPS growth which is in line with the EPS growth, with the projected +21% YoY increase in FY2023; DPS will increase sharply and with certainty on the back of the growing moving-average profit (no planned decrease in dividends)
*: 2012-2022 CAGR
Adjusted ROE in FY2023 is projected at 16.1%; further lift ROE to the level comparable to global peers
This will be achieved by realizing the “world’s top-class EPS growth” and the “efficient use of capital”; the sale of business-related equities is accelerating smoothly (with the sale of JPY600.0bn or more in the next four years); continue implementing the in/out strategy of business with discipline- ESR as of Sept. 30, 2023 was strong at 133%. Share buyback for FY2023 will be increased from originally announced JPY100.0bn to JPY120.0bn comprehensively considering one-off profit from Group reorganization and the current M&A pipeline, etc.
- Deep-rooted“Sustainability Management” since our founding and our unique strengths of “Global Risk Diversification (reduce volatility and generate profits)” and “Global Group Integrated Management (ability to be responsive leveraging expertise and insights)” support the above
- In addition to these, in the next MTP, we will deliver high-quality management where growth and governance coexist at a high level through exponential expansion of business area (promotion of the solution business) and strengthening of governance throughout the Group
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
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I. World’s Top-Class |
Sustainability of EPS |
Domestic Non-Life / |
International / |
Investment |
2023DPS |
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EPS Growth |
Growth |
Underwriting |
Underwriting |
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Current Position of Our Profit Growth
Our existing profit growth is amongst the world’s top-class with the 10Y CAGR of +12% and the projected growth of +9% in FY2023 a journey that we plan to continue on.
We will be able to stably achieve the world’s top-class growth in the future
Track Record
Adjusted Net Income*
10Y CAGR
+12％
203.8
Future Direction
+9％
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(Excl. FX +8%) |
(billions of JPY) |
675.0
original projection
670.0
617.1
Organic growth as the world’s top-class P&C company- Inorganic growth utilizing its strength in executing M&As
Expansion into pre- and post-incident areas
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2012 |
2022 |
2023 revised |
outlook |
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projection |
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*: Normalized Nat Cats to an average annual level and excluding the impact of COVID-19, capital gains/losses in North America, etc., capital gains |
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from the sale of business-related equities (for part of sale exceeding original projection) from 2022 results and 2023 revised projection. Wars and |
4 |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. South African floods is also excluded from 2022 results. |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
5 |
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I. World’s Top-Class |
Sustainability of EPS |
Domestic Non-Life / |
International / |
Investment |
2023DPS |
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EPS Growth |
Growth |
Underwriting |
Underwriting |
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EPS Growth Track Record
Our EPS growth is mainly driven by organic growth
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Adjusted EPS*1,3 |
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CAGR |
+13％ |
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Actual basis |
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+12.3％ |
（JPY）
307
88
Adjusted Net Income*1Capital Policy*3,4
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+12％ |
+1％ |
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Of this, impact of M&A |
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new consolidation*2 |
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+2％ |
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(million shares) |
2,301
2,009
203.8
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2012 |
2022 |
2012 |
2022 |
2012 |
2022 |
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*1: Normalized Nat Cats to an average annual level and excluding the impact of COVID-19, capital gains/losses in North America, etc., capital gains from the sale of business-related |
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equities (for part of sale exceeding JPY100.0bn), wars and South African floods for 2022. |
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*2: Business unit profit of TMHCC and Pure. |
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*3: After the stock split (into three shares) executed in Oct. 2022. |
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*4: The graphs show the average number of outstanding shares during the fiscal year excluding treasury shares. |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
6 |
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I. World’s Top-Class |
Sustainability of EPS |
Domestic Non-Life / |
International / |
Investment |
2023DPS |
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EPS Growth |
Growth |
Underwriting |
Underwriting |
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(Ref.) World’s Top-Class Stable EPS Growth
We achieved the world’s top-class EPS growth while managing volatility
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EPS Growth |
EPS Growth Volatility |
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(2012-2022 CAGR) |
(2012-2022) |
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Tokio Marine |
Peer 1 |
Peer 2 |
Peer 3 |
Peer 4 |
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Tokio Marine |
Peer 1 |
Peer 2 |
Peer 3 |
Peer 4 |
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+12.3% |
1.7 |
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1.4 |
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+7.3% |
2.5 |
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+6.1% |
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+5.3% |
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+4.4% |
2.6 |
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3.4 |
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Low |
High |
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EPS: Profit in the numerator is adjusted net income for Tokio Marine and KPI for peers |
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Volatility: Coefficient of variation |
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Peers: Allianz, AXA, Chubb, Zurich |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
(Source) Each company data, Bloomberg |
7 |
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I. World’s Top-Class |
Sustainability of EPS |
Domestic Non-Life / |
International / |
Investment |
2023DPS |
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EPS Growth |
Growth |
Underwriting |
Underwriting |
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Sources of Our Organic Growth
Our EPS growth is mostly attributable to strong organic growth
Its sources are a robust, globally diversified underwriting portfolio and strong investment income leveraging its liability characteristics
(ongoing sale of business-related equities also contributes to profit)
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FY12 |
CAGR |
FY22 |
(After tax/ billions of JPY) |
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5％ |
TMNF |
13.9 |
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Under- |
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writing |
Inter- |
45.7 |
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Contribution to |
national*2 |
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CAGR+12％ |
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Adjusted Net Income*1 |
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2％ |
Investment*3 |
91.1 |
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5％
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+21％ |
91.3 |
⇒P.10 |
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+13％ |
155.9 |
⇒P.16 |
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Others*5 |
53.0 |
+8％ 117.3 |
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*1: Normalized Nat Cats to an average annual level and excluding the impact of COVID-19, capital gains/losses in North America, etc., capital gains |
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from the sale of business-related equities (for part of sale exceeding JPY100.0bn), wars and South African floods for 2022 |
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*2: Includes Pure’s business unit profit |
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*3: Total of investment income and other of TMNF (excl. capital gains on sale of business-related equities) and International business |
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*4: Contribution to 10Y CAGR of Investment +11% is +14% by DFG’s investment income growth, -1% by TMNF hedge cost increase and -2% by others. |
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10Y CAGR of DFG’s investment income itself is +22% including assets managed by DFG for key GCs |
8 |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. *5: TMNL and other group companies’ business unit profit, capital gains on sale of business-related equities, etc. |
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
9 |
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I. World’s Top-Class |
Sustainability of EPS |
Domestic Non-Life / |
International / |
Investment |
2023DPS |
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EPS Growth |
Growth |
Underwriting |
Underwriting |
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[Domestic Non-Life U/W Profit] Organic Growth Breakdown
Underwriting profit has expanded at a 10Y CAGR of +13% (with a +3% in top-line and +10% in C/R improvement). We achieved the stable growth of top-line and the target C/R level leveraging rate increases in auto and fire insurance with product revisions- C/R has recently slightly deteriorated (+0.8pt) mainly due to the impact of inflation. We will promptly improve/maintain C/R with a strong focus on bottom-line, while stably expanding top-line with commitment to ensuring profitability, and as a result, will expand underwriting profit
[Structure of TMNF Underwriting Profit]
Track RecordFuture Direction
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10Y CAGR +13% |
+4% |
Stable growth |
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（incl. FX +21%） |
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113.3 original |
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projection |
Underwriting
Profit*1
(Normalized*2)
(billions of JPY)
31.0
（incl. FX 13.9）
Breakdown
Top-line+3%- C/R improvement +10%
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105.6 |
109.0 |
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(incl. FX 85.0) |
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（incl. FX 91.3） |
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Breakdown
Stable top-line growth- Prompt improvement to/ maintain the target
C/R level （92-93%）
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2012 |
2022 |
2023 revised |
outlook |
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projection |
(Continue to the next page)
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Copyright (c) 2023 Tokio Marine Holdings, Inc. |
10 |
Attachments
Original Link
Original Document
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Disclaimer
Tokio Marine Holdings Inc. published this content on 22 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2023 05:38:13 UTC.
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More charts
Tokio Marine Holdings, Inc. is a holding company organized around 3 areas of activity:
- non life insurance (50.3% of net sales);
- life insurance (14.2%);
- other (1.2%): primarily financial services.
The remaining sales (34.3%) concerns the international insurance activities.
More about the company
Buy
Last Close Price
3,631.00JPY
Average target price
3,490.00JPY
Spread / Average Target
-3.88%
Consensus
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