Tokio Marine Holdings, Inc.

Business Details

Tokio Marine & Nichido Fire Insurance, together with Nisshin Fire & Marine Insurance, Tokio Marine Direct General Insurance and others, conducts non-life insurance underwriting and asset management business within Japan. The segment offers a broad range of insurance lines including fire, automobile, accident, marine, and compulsory automobile liability insurance, and promotes the provision of value through "Risk Solutions (Insurance +α)" in addition to underwriting, for both individual and corporate customers. The company is actively advancing the sale of strategic shareholdings and working to improve capital efficiency. Note that voluntary application of IFRS began from FY2026 (ending March 2026), and the presentation format of segment income has changed accordingly.

Recent Overview

Under first-time IFRS application, both insurance revenue and profit increased substantially. Insurance service result rose 62% year on year.

From FY2026 (ending March 2026), the company transitioned to voluntary IFRS application. The Domestic Non-Life Insurance Business's insurance revenue increased substantially to ¥3,040,655 million (up ¥105,562 million year on year), and insurance service result rose to ¥257,461 million (up ¥98,690 million year on year). Investment income also increased to ¥124,599 million (up ¥87,859 million year on year), profit before tax reached ¥325,173 million (up ¥155,030 million year on year), and segment profit (profit attributable to owners of the parent) rose approximately 78% year on year to ¥237,541 million (up ¥103,961 million year on year). The main drivers were the effects of rate revisions in automobile and fire insurance and the expansion of asset management income.

Key Products

Growth Drivers

• Increase in insurance revenue through product and rate revisions in automobile insurance and fire insurance (insurance revenue up ¥105,562 million in FY2026, ending March 2026)
• Expansion of investment income through the planned sale of strategic shareholdings (investment income of ¥124,599 million for the period, up ¥87,859 million year on year)
• Substantial improvement in insurance service result (¥257,461 million, up ¥98,690 million year on year), strengthening the revenue structure
• Creation of new markets through the deployment of Insurance +α risk solutions in priority fields such as healthcare and resilience
• Expansion of the direct channel through Tokio Marine Direct General Insurance

Risks

• Risk of decline as gains from strategic shareholdings sales taper off (a structural factor reducing asset management income once sales are complete)
• Risk of increased net claims paid due to the intensification of natural disasters (estimated net incurred losses from domestic natural disasters of ¥105.0 billion for FY2027, ending March 2027)
• Risk of rising loss ratios in automobile insurance due to rising repair costs and parts shortages, among other factors
• Risk of expanding bond valuation losses accompanying rising domestic interest rates
• Risk of recurrence of insurance premium adjustment issues and information leakage incidents stemming from industry practices, and associated reputational risk
• Risk that changes in the discount rate for insurance contract liabilities under IFRS 17 application affect capital through OCI