Tokio Marine Holdings(TKOMY) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For fiscal year 2022, the actual adjusted net income was JPY 444 billion, reflecting impacts from COVID losses and natural catastrophes. The normalized profit, excluding one-off effects, was JPY 617.1 billion, which is a 22% increase compared to fiscal year 2021 [2][9]. - The projection for fiscal year 2023 adjusted net income is JPY 670 billion, representing a 9% growth year-over-year on a normalized basis, and an 8% growth excluding foreign exchange impact [3][10]. Business Line Data and Key Metrics Changes - Net premiums written increased by 15% year-over-year for fiscal year 2022, while life premiums increased by 8%. For fiscal year 2023, net premiums written are projected to grow by 3%, although life insurance premiums are expected to decline by 4% due to corporate-owned life insurance surrenders [7][10]. - The domestic business is expected to see an 11% increase in adjusted net income, while the international business is projected to grow by 6% or 5% excluding foreign exchange impact [10][11]. Market Data and Key Metrics Changes - The company anticipates that the growth drivers for fiscal year 2023 will include rate increases and expansion of underwriting, which will lead to increased underwriting profit and investment income due to rising interest rates in the United States [3][10]. Company Strategy and Development Direction - The company aims to enhance shareholder returns in line with profit growth, maintaining a commitment to increase dividends consistently. The dividend per share (DPS) for fiscal year 2022 is set at JPY 100, with a projected increase to JPY 121 for fiscal year 2023, marking an 18% and 21% growth respectively [5][16]. - The company plans to accelerate equity sales to JPY 150 billion starting in 2023, with a target of JPY 600 billion over the next four years [4]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to enhance underlying capabilities and maintain a strong performance despite external challenges. They emphasized the importance of global risk diversification and innovative management strategies [12][13]. - The company is focused on achieving top-class DPS growth and enhanced return on equity (ROE) in fiscal year 2023 and beyond [13]. Other Important Information - The current economic solvency ratio (ESR) is at 124%, which is considered ample. The company plans to conduct a JPY 100 billion share buyback throughout the year, with JPY 50 billion approved as the first step [6][17]. Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content.