At a Glance

Tokio Marine Group captures profits in specialty insurance unaffected by market conditions in developed countries and high growth in emerging countries as well as sustainably generates stable profits through domestic non-life business and life business.
Its composition of profits is splitted almost fifty-fifty between domestic and international businesses. Tokio Marine Group realizes a well diversified portfolio on a global basis.

Results

Realizing stable business expansion, profit growth, and high capital efficiency

  • Top-line
    (Net premiums written + Life insurance premiums)
    ¥ 4,690 bn
  • Adjusted net income¥ 424 bn
  • Adjusted ROE10.8 %
  • * Fiscal 2021 original projection basis
  • * Adjusted net income and Adjusted ROE are our original indicators excluding the effect of various reserves specific to the Japanese insurance business and goodwill, etc.

Composition of Profits

Balanced business portfolio

Business Unit Profits International: 46% Domestic: 54%

  • * Fiscal 2021 original projection basis

Operating Presence

Network encompassing Japan and 46 countries and regions worldwide

Japan (Tokio Marine & Nichido) No.1 Philippines No.1 South Africa No.2 Thailand No.4 U.K. (Lloyd’s) No.3 Brazil No.6 Malaysia No.8 India No.9 U.S. (Commercial Lines) No.10 Indonesia No.12

  • Sources: Axco, SUSEP, FSCA, Financial Sector Conduct Authority, Lloyd’s Annual Report, S&P Global, and The General Insurance Association of Japan (Direct premiums written)
  • * The given country based on non-life insurance premiums

Shareholder Value

Realized above market and peers TSR

* As of end of March 2021

  • Source: Bloomberg
  • * Total Shareholder Return (TSR): Capital return after reinvesting dividends. Stock price indexed at 100 as of April 1, 2002.
  • * Peers are Allianz, AXA, Chubb and Zurich.

Financial Base

High ratings from third party ratings institutions

  • S&PA+
  • Moody’sAa3
  • A.M.BestA++
  • * Financial strength rating of Tokio Marine Nichido (as of end of March 2021)

ESG Rating

High evaluations from various global ESG rating institions

  • 12 Consecutive YearsMEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM
  • 5 Consecutive Years2020 CONSTITUENT MSCI JAPAN ESG SELECT LEADERS INDEX
  • 20 Consecutive
    Years
    CDP A LIST 2019 CLIMATE

(Reference) Market Environment

Profit growth in the U.S., which has the world’s largest insurance market, and stable growth in Japan, which has the world’s third-largest market (No. 4 in non-life insurance, and No. 3 in life insurance), are the key.

The global insurance market in 2017 was worth $4,891 billion, with the U.S. in first place for both life and non-life insurance. Following China, Japan was in third place with the fourth largest non-life insurance and the third largest life insurance markets.

Ten Largest Insurance Markets in Direct Premiums Written for Life Insurance and Non-life Insurance in 2017*1

(Unit: Millions of USD)
Ranking Country Life premiums Non-life premiums*2 Total premiums
Amount Change against 2016 (%) Share of the global total (%)
1 United States*3, 4 546,800 830,315 1,377,114 2.0 28.15
2 China*5 317,570 223,876 541,446 16.2 11.07
3 Japan*4, 6 307,232 114,818 422,050 -6.5 8.63
4 United Kingdom*4 189,833 93,499 283,331 -2.6 5.79
5 France*7 153,520 88,083 241,603 1.8 4.94
6 Germany*7, 8 96,973 126,005 222,978 3.8 4.56
7 South Korea*4, 6 102,839 78,378 181,218 2.4 3.70
8 Italy*4 113,947 41,562 155,509 -2.6 3.18
9 Canada*4, 9 51,592 67,927 119,520 5.5 2.44
10 Taiwan 98,602 18,873 117,474 15.8 2.40
  • Source:Swiss Re Institute, sigma No. 3, 2018
  • *1 Before reinsurance
  • *2 Includes personal accident insurance and health insurance
  • *3 Non-life premiums include state funds. Life insurance premiums include the estimated value of group annuities premiums
  • *4 Estimated figures
  • *5 Provisional figures
  • *6 Fiscal year between April 1, 2017 and March 31, 2018
  • *7 Figure for non-life premiums is provisional
  • *8 Figure for life premiums is an estimate
  • *9 Net premiums are shown for life premium amount

Life and Non-Life Insurance Premiums in 2017, and Penetration through 1960–2017 (Ratio of Insurance Premiums to GDP)

Region Premium (Share)

Western Europe:$1,416bn(28.9%) Africa:$66bn(1.3%) India:$98bn(2.0%) Russia:$21bn(0.4%) China:$541bn(11.0%) ASEAN:$102bn(2.1%) Japan:$422bn(8.6%) Oceania:$90bn(1.8%) North America:$1,496bn(30.6%) Central and South America:$167bn(3.4%) (of which, Brazil):$83bn(1.7%)

  • * Circle size gives a visual idea of the size of premiums

Developed Europe, Middle East, and Africa (EMEA)

Western Europe

Emerging EMEA

Africa, Russia

Emerging Asia

India, China, ASEAN

Developed Asia-Pacific

Japan, Oceania

North America

Central and South America

  • Source:Swiss Re Institute, sigma No. 3, 2018

In addition to stable growth in developed markets, capturing booming emerging markets is the key.

Non-life premiums grow in tandem with economic growth in developed markets. However, in emerging markets, which have low levels of insurance penetration and upward trends in populations, insurance premiums show growth that exceeds economic growth. Note that increases in life premiums are greatly impacted by such factors as interest rates, market regulations, and taxation systems, so they are not necessary linked to economic growth.

Growth in Non-life and Life Premiums, and Growth in Real GDP (Seven-Year Moving Average)

Developed Markets

Emerging Markets

  • Source:Swiss Re Institute, sigma No. 3, 2018