May 18, 2018

Tokio Marine Holdings, Inc. President: Tsuyoshi Nagano

TSE code number: 8766

Tokio Marine Group's FY2018 Business Plan on Adjusted Net Income basis

Tokio Marine Holdings, Inc. (the "Company") announced today its business plan based on an adjusted net income basis ("Adjusted Net Income", please refer to Appendix for the definition) for the fiscal year ending March 31, 2019 ("FY2018").

１．Profits for the entire Group（Adjusted Net Income）

In the fiscal year ended March 31, 2018 ("FY2017"), Tokio Marine Group (the "Group") recorded Adjusted Net Income of 341.4 billion yen, which decreased by 65.3 billion yen mainly due to an increase in natural catastrophe losses at domestic and overseas non-life insurance subsidiaries.

In FY2018, the Group is targeting Adjusted Net Income of 396.0 billion yen, an increase of 54.6 billion yen compared to FY2017 mainly due to a decrease in natural catastrophe losses (projected to be at the annual average level) at domestic and overseas non-life insurance subsidiaries.

（Hundred millions of Yen, except percentages）

FY2015

FY2016

FY2017

FY2017

FY2018

Actual

Actual

Revised

Actual

Business

Results

Results

Forecast

Results

Plan

Adjusted Net Income

3,519

4,067

3,150

3,414

3,960

Adjusted Net Assets

38,514

37,059

38,900

39,494

41,200

Adjusted ROE

9.1%

11.0%

8.1%

8.6%

9.6%

N o te s ;

To appropriately capture and enhance the corporate value of the Tokio Marine Group, earnings and ROE are presented on "Adjusted Net Income" basis (please refer to Appendix for the definition).

２．Business Unit Profits

In FY2018, the Group is targeting Business Unit Profits of 161.0 billion yen for the domestic non-life insurance business, 35.0 billion yen for the domestic life insurance business, 165.0 billion yen for the international insurance business and 5.0 billion yen for the financial / other businesses.

（Hundred millions of Yen）

Business Unit

FY2015 Actual Results

FY2016 Actual Results

FY2017 Revised Forecast

FY2017 Actual Results

FY2018 Business

Plan

Domestic non-life insurance business

1,260

1,676

1,470

1,443

1,610

Domestic life insurance business

▲1,881

3,735

1,170

984

350

International insurance business

1,318

1,695

1,040

1,441

1,650

Financial / other businesses

73

66

50

72

50

Notes ;

To appropriately present the results of our efforts reflecting the features of each business unit, profits for each business unit are presented on "Business Unit Profits" basis (please refer to Appendix for the definition).

The business plans described above are based on information available to the Company as of the date of the release of this document. Actual results may materially differ from the plans.

Appendix

Definitions of Adjusted Net Income, Adjusted ROE and Business Unit Profits

1. KPI for the entire Group

Adjusted Net Income*1

＋

－

－

Adjusted Net Assets*1

＝

＋

＋

－

Adjusted ROE

Adjusted

Adjusted

Assets

ROE

Net Income

(average

balance basis)

＝

÷

2. Business Unit Profits*1 (1) Non-life insurance business

＝

＋

＋

－

－

－

(2) Life insurance business*5

＝

－

(3) Other businesses

Net income presented in financial statements

  • *1: Each adjustment is on after-tax basis

  • *2: Net income attributable to owners of the parent presented in Consolidated Financial Statements

  • *3: In case of reversal, it is subtracted from the equation

  • *4: ALM: Asset Liability Management. Excluded since it is counter balance of ALM related liabilities

  • *5: For some of the life insurance companies, Business Unit Profits is calculated by using the definition in (3)

    (head office expenses, etc. are deducted from profits)

  • *6: EV: Embedded Value. An index that shows the sum of the net present value of profits to be gained from policies in-force and the net asset value

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Tokio Marine Holdings Inc. published this content on 18 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 May 2018 05:08:01 UTC