Asset Owner Principles Policy
Acceptance of the Asset Owner Principles
Tokio Marine Holdings, Inc. (President and Group CEO, Satoru Komiya; “the Company”) announces that it adheres to the objective of the Asset Owner Principles and accepts the Principles as an asset owner at the following Group companies in Japan.
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Tokio Marine & Nichido Fire Insurance Co., Ltd. (President & CEO, Hiroaki Shirota; “Tokio Marine & Nichido”)
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Tokio Marine & Nichido Life Insurance Co., Ltd. (President & CEO, Tetsufumi Kawamoto; “Tokio Marine & Nichido Life”)
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Nisshin Fire & Marine Insurance Co., Ltd. (President & CEO, Shin Oriyama; “Nisshin Fire & Marine”)
The Principles were announced by the Cabinet Secretariat in August 2024 as part of the asset ownership reform, in the Policy Plan for Promoting Japan as a Leading Asset Management Center formulated in December 2023. The Principles set forth common principles related to investment, governance, risk management, and other factors, in order for asset owners to fulfill their responsibility to manage their assets, taking into account the best interests of beneficiaries.
For more information on the Asset Owner Principles, please refer to the Cabinet Secretariat’s website.
The Company’s policy and approach are as follows.
- Principle 1
Asset owners should take into account the best interests of beneficiaries. In doing so, they should determine the purpose of investing, and then set investment targets and policies based on the purpose through an appropriate process, taking into account the economic and financial situation. The purpose of investing, targets, and policies should be reviewed as appropriately in response to changes in situations. -
The core operation of Tokio Marine Group (“the Group”) is its insurance business, and it invests utilizing the cash inflows mainly arising from insurance premiums. Therefore, with the investment purpose of providing stable compensation to policyholders, the Group seeks to appropriately control risks based on the characteristics of insurance products primarily through asset liability management (ALM). The Group thereby aims to ensure stable, long-term earnings while realizing efficient management of liquidity.
These measures are reviewed as necessary in response to changes in the economic and financial situation.
- Principle 2
Asset owners need to make decisions based on their expert knowledge, in pursuing the best interests of beneficiaries. They should develop an appropriate structure, by securing talents with sufficient knowledge and experience, in order to realize the investment purpose and policies set forth by Principle 1. They should make such a structure function properly, and consider using external knowledge and outsourcing when needed to receive and enhance expert knowledge. -
To achieve its investment targets and policies, the Group develops professionals by recruiting talents and utilizing opportunities for them to gain a diverse set of experiences through assignments at overseas subsidiaries, Tokio Marine Asset Management, and external investment managers.
Furthermore, the Group has put an appropriate structure in place, such as having investment plans deliberated and approved at the Management Meeting and other meeting bodies, and having the Risk Management Department, which is independent of the Investment Department, manage investment risks accordingly. The Investment Department appoints multiple chief investment officers with high levels of expertise and knowledge, and the authority of the chief investment officers is clarified in our internal rules on authority.
- Principle 3
Asset owners should choose investment methods appropriately to achieve the investment targets, based on the investment policies, from the viewpoint of the interests of beneficiaries, not those of themselves or third parties. Asset owners should appropriately manage risks, including by diversifying the investment portfolio. In particular, when they entrust investment to other entities such as financial institutions, the asset owners should select the optimal investment trustee while managing conflicts of interest. The choice of the investment trustee should be reviewed periodically. To achieve its investment targets and policies, the Group appropriately selects investment methods while closely monitoring potential changes in the global economy and financial markets, with a focus on the portfolio it aims to achieve over the medium- to long-term.
The Group also conducts appropriate risk management by utilizing quantitative risk indicators such as VaR and managing credit risk concentration with the aim of diversifying the risks related to investees.
In the asset management of Tokio Marine & Nichido, Tokio Marine & Nichido Life, and Nisshin Fire & Marine (“three domestic companies”), the Company is entrusted with the management of their assets in an integrated manner. The Company also utilizes various asset managers such as Delphi, a Group company in the United States, to manage the Group’s assets under appropriate monitoring and risk control.
Furthermore, the Company implements the Emerging Managers Program (EMP) to help promote Japan as a leading asset management center. When exploring new investment opportunities, we select asset managers with a view to utilizing emerging managers.
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*The Company’s management systems and methods are described below.
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- Principle 4
Asset owners should provide information on the status of asset management (“visualization”) and engage in dialogues with stakeholders, in order to fulfill accountability to stakeholders. -
The Group strives to deepen stakeholders’ understanding by disclosing the status of the Group’s asset management in annual securities reports, integrated annual reports, investor relations event materials, general shareholders’ meeting reports, etc.
Disclosure materials: Download Center
Through its IR activities, the Company also discloses information regarding the evaluation of its corporate value to shareholders and investors in a timely and appropriate manner, and engages in constructive dialogues with shareholders and investors.
- Principle 5
Asset owners should give consideration to the sustainable growth of investee companies by conducting stewardship activities by themselves or through the investment trustee, in order to achieve the investment targets for beneficiaries. -
In 2014, Tokio Marine & Nichido accepted the Principles for Responsible Institutional Investors (Japan’s Stewardship Code), formulated and published the Policies Related to Japan’s Stewardship Code, and has since been conducting stewardship activities that contribute to the sustainable growth of investee companies.
Since Japan’s Stewardship Code is mainly aimed at Japanese listed stocks, Tokio Marine & Nichido Life and Nisshin Fire & Marine, with limited holdings of such stocks, have not declared their acceptance of the Code.
In addition, as responsible institutional investors, all three domestic companies are committed to ESG investment and financing, taking into account environmental, social, and governance perspectives, based on Tokio Marine Group ESG Investment and Financing Policy.