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  4. Review of Fiscal 2018—A Year of Supporting Customers and Society in Their Times of Need after Natural Disasters

Review of Fiscal 2018
—A Year of Supporting Customers and Society in Their Times of Need after Natural Disasters

With climate change resulting from global warming,demographic changes, technological progress, and trade disputes between the United States and China, we are witnessing rapid changes in society, the economy, and the operating environment.
In the midst of such change, fiscal 2018 saw some of the largest natural disasters ever, including the 2018 northern Osaka earthquake in June, the West Japan Heavy Rain in July, and the 2018 Hokkaido Eastern Iburi earthquake in September. Japan was also struck by Typhoon 21, Typhoon 24, and several other large-scale typhoons.
The insurance claims associated with disasters exceeded ¥1.7 trillion when looking at the non-life insurance industry as a whole. Tokio Marine Group was responsible for making ¥550.0 billion of these claims payments.
The purpose of Tokio Marine Group’s business is to support customers and society in times of need; part of accomplishing this purpose is to protect customers after the accidents and disasters of today and to support them in tackling new challenges for tomorrow. Fiscal 2018 was thus a year in which our employees banded together with agents to pay the claims of customers that had been impacted by natural disasters in our home market of Japan.
Japan has one of the disaster-prone country in the world. In fact, it is estimated that between 10% and 20% of losses resulting from natural catastrophes around the world are concentrated in Japan.
The insurance business is the business of assuming responsibility for the risks facing customers and society. We therefore must diversify these risks in order to stabilize our business and ensure that we are able to offer support in times of need.
To ensure that we are always able to accomplish our business purpose, we have been gradually growing our international insurance business over the past 15 years. Today, the international insurance business has grown to produce roughly half of our total profit.
These efforts were reflected in the Company’s financial results for fiscal 2018. Japan was struck by several massive natural disasters, but overall financial results were supported by the strong performance of our international insurance business. We managed to keep net incurred losses relating to catastrophes exceeding our average budget to just 30% of profits of the whole Group.
Our ability to continue to stably operate our business, even in a year with such a high frequency of natural disasters, has earned us great praise from our various shareholders.