Enhancement of Corporate Value through Capital Policy
Through our efforts to help resolve social issues, Tokio Marine Group aims to become a leading global insurer delivering significant value to all our stakeholders, including customers, society, shareholders, and employees. Specifically, we aim to achieve stable double-digit return on equity (ROE) and high-level shareholder return.
In the course of working toward these goals, we are creating capital through strategic business portfolio revisions focused on organic growth in Japan and overseas. This capital is allocated to M&As and other business investments or returned to shareholders if there are no candidates for a good investment, making for an ongoing capital cycle.
Capital Cycle for Realizing Our Goal
(Reference) Mid-Term Business Plan Targets and Progress
Initiatives for Achieving Stable Double-Digit ROE
The ongoing improvement of profitability and diversification of risks accomplished through large-scale M&As in Europe and the United States has driven steady growth in Tokio Marine Group's ROE, which has remained consistently above a cost of capital*1 of 7% with low volatility. Our ROE is approaching the level of our peers, and we will seek to further enhance ROE going forward.