Tokio Marine Holdings (8766) Investor Day 2025 summary

Strategic Direction and Leadership

• Emphasis on a federated management model, leveraging unique strengths of each business unit for group-wide value creation and sustainable growth.

• CEO Koike highlighted a purpose-driven culture, focusing on employee engagement and sustainability as core to value creation.

• Commitment to transparent investor communication and ongoing feedback.

• New leadership aims to further evolve the business model through both organic growth and M&A.

Financial Performance and Guidance

• Achieved top-tier EPS growth with a 5-year CAGR of 19.9%, with current midterm plan targeting +8% or more, currently tracking at +8.9%.

• IFRS-based ROE is approximately 13%, with a clear roadmap to further enhancement through risk diversification and fee-based solutions.

• Share buyback for FY2025 increased to JPY240.0bn, supporting EPS growth and reflecting a robust capital position.

• Projected DPS for FY2025 is JPY211 (+23% YoY), marking the 14th consecutive dividend increase.

• Financial leverage remains lower than global peers, providing significant capacity for future M&A.

Japan P&C and Solutions Business

• Significant rate increases in auto and fire lines have improved profitability; long-term combined ratio targets are sub-95% for auto and maintaining current levels for property, with fire insurance targeting 80% range by FY2026.

• Structural reform of distribution through the "Re-New" initiative is reducing expense ratios and agency commissions, targeting E/R below 30%.

• Direct channel subsidiary rebranded as Tokio Marine Direct Insurance, with new policy sales and premium income exceeding plan.

• Solutions business, newly established and expanded by the acquisition of ID&E, aims to provide risk management services beyond insurance, evolving from R&D to a growth engine.

• Long-term commitment to developing Solutions into a sustainable growth pillar, similar to the international expansion journey.