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Corporate Strategy

Tokio Marine Group aims to be a global insurance group that delivers sustainable growth by providing safety and security to customers worldwide based on our corporate philosophy, "With customer trust as the foundation for all its activities".
We would like to introduce our Mid-Term Business Plan, "To Be a Good Company 2017", which commenced in FY2015.

May 29, 2015
IR Conference for New Mid-Term Business Plan, "To Be a Good Company 2017"

Movie
Material

For outlook (update) of FY2017 target, please refer to FY2015 Interim IR Conference Materials released in Nov. 27, 2015.

Mid-Term Business Plan "To Be a Good Company 2017"

Long-term Vision and Mid-Term Business Plan "To Be a Good Company 2017"

The Mid-Term Business Plan, "To Be a Good Company 2017" is positioned as a stage of "sustainable profit growth" that will enable the future stage of achieving both globally competitive earnings growth and capital efficiency. By adopting measures listed in this business plan, we will continue to evolve our business approach to realize sustainable profit growth and higher ROE.

Long-term vision: A global insurance group that delivers sustainable growth by providing safety and security to customers worldwide - Our timeless endeavor to be a Good Company -

Initiatives for "Sustainable Profit Growth"

As initiatives to achieve "sustainable profit growth" we will enhance our existing business model, strengthen our capability to respond to changes in the business environment and pursue growth opportunities globally in order to further expand our diversified business portfolio. By strengthening our business platform, which acts as key support for these initiatives, we will improve our capability to enhance profit growth and capital efficiency in a sustainable manner, in the face of a changing business environment.

Enhancement: Unlocking our potential - Domestic insurance: Enhancing the integrated business model for life and non-life, strengthening claims-service capabilities, and further utilizing our risk consulting service, International insurance: Enhancing organic growth / Evolution: Capitalizing on changes - Effectively forecasting and proactively meeting the emerging and evolving needs of the market and our customers, Strengthening R&D to convert new risks into our business opportunities / Expansion: Pursuing growth opportunities - Promoting disciplined business investment to capture growth opportunities globally, Enhancing our diversified business portfolio based on risk appetite / Excellence: Advancing our business platform - Advancing ERM and improving risk portfolio to sustainably and comprehensively enhance profit growth, capital efficiency, and financial soundness, Strengthening our business platform to further reinforce our globalized business, Developing a diverse workforce with a strong customer orientation to drive sustainable growth

Objectives of the Mid-Term Business Plan

In the previous Mid-Term Business Plan, we achieved our ROE target of 7%, exceeding our cost of capital through structural reform to profitable businesses and innovative changes for a well-balanced business portfolio. Under the current Mid-Term Business Plan, the outlook of adjusted ROE is upper 9% range in FY2017, aiming for further improvement in capital efficiency. We plan to realize adjusted net income of approximately 400 billion yen in FY2017. Regarding shareholder returns, we will pursue a steady growth of dividends in line with profit growth.


FY2017 Target *1 Outlook (Update) FY2014 Results 1Enhance capital efficiency Adjusted ROE : approx. 9% Upper 9% range 7.6% (Normalized basis*2) 2 Sustainable profit growth Adjusted Net Income : ¥350B ~ ¥400B Approx. ¥400B ¥298.1B (Normalized basis*2) 3 Enhance shareholder returns Steady growth of dividends in line with profit growth FY2015 projections : ¥105 per share (YoY +10 yen) Dividends ¥ share ¥95
  • *1
    Based on market environment as of the end of Mar. 2015
  • *2
    Natural catastrophe losses in adjusted net income is normalized to an average annual level. In addition, adjusted net assets is normalized based on market environment (share price, FX rate) as of the end of Mar. 2015

Promotion of Enterprise Risk Management (ERM)

Enterprise risk management (ERM) is a business management method for addressing all aspects of decision-making in view of risks. In this framework, we aim to realize sustainable growth in corporate value while firmly maintaining financial soundness by making decisions in light of the sufficiency of capital and profitability relative to risk.
In the Mid-Term Business Plan, we place ERM at the core of the Group management framework, and by using it in a more substantive manner, we aim to maintain financial soundness while at the same time taking a balanced approach to enhancing ROE and achieving sustainable profit growth.


Enterprise risk management (ERM) Generate capital and cash Efficient deployment of capital and cash Invest for growth Invest in new businesses with high capital efficiency Invest today to build foundations for our growth tomorrow Return to shareholders Increase dividends through profit growth Achieve an appropriate level of capital via flexible repurchases of shares Improve capital efficiency by diversifying our business portfolio Achieve sustainable profit growth and improve the risk portfolio in each business domain Achieve sustainable profit growth in each business domain Domestic non-life: Profit growth as the core business of the Group Domestic life: Profit growth while maintaining financial soundness as a growth driver of the Group International insurance: Profit growth while globally diversifying risks as a growth driver of the Group Improve the risk portfolio Reduce the risks associated with business-related equities Strengthen control of natural catastrophe risks Maintain financial soundness+ Enhance ROE+Sustainable profit growth

May 29, 2015
IR Conference for New Mid-Term Business Plan, "To Be a Good Company 2017"

Movie
Material

For outlook (update) of FY2017 target, please refer to FY2015 Interim IR Conference Materials released in Nov. 27, 2015.