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| The Tokio Marine Group expresses its sincere appreciation to all investors and shareholders for their continuing guidance and support of its business activities. When the Great East Japan Earthquake struck in March of this year, causing enormous damage to the country, the Tokio Marine Group responded by redirecting a large portion of its nationwide staff to the task of swift and proper claim payments to help disaster victims rebuilding their lives and businesses as quickly as possible. Through the end of September, we processed around 200,000 claim payments, in which the number was over ten times we handled following the Great Hanshin Earthquake. We also have assisted the large number of agents who found themselves among the disaster victims restore their business. For ensuring customers' convenience, we established a consultation system and supported customers with policy renewals. We continue to receive claims related to the disaster and, as a matter of fully living up to our social responsibilities as an insurance group, and we are committed to swiftly and properly paying every last one. Outside of Japan, global economy decelerated through the first half of FY2011 amid financial market anxiety driven by growing debt problems among Eurozone countries. The Japanese economy continued to suffer from impacts of the March earthquake and tsunami, but began to see upturns, mainly in production, exports, and consumption since the middle of the first half. Those positive developments, however, were muted by the yen's appreciation and slowing in overseas economies. Against this background, the Tokio Marine Group, in the final year of its “Innovation and Execution 2011” mid-term corporate strategy, is working toward the goal of achieving sustainable growth based on quality improvements in our products, services and business processes. We are also moving forward with initiatives aimed at enhancing our risk-based management (“ERM” or Enterprise Risk Management), which will result in greater profitability and capital efficiency as well as financial soundness maintained by striking an appropriate balance between capital and risk. Business Overview of 1H of FY2011 Domestic Non-life Insurance Business Tokio Marine & Nichido Fire Insurance Co., Ltd. (Tokio Marine & Nichido), while enhancing customer contact, aims to offer products and services that customers choose for their quality as well as to achieve growth by strengthening its sales networks and developing new markets. Tokio Marine & Nichido is promoting sales of its all-in-one life and non-life insurance, “Super Insurance” which offers total coverage in accordance with customers’ life plans, family composition and other factors. In June, the number of households enrolled in “Super Insurance” surpassed the one million mark. Tokio Marine & Nichido developed a new rider for auto insurance based on the experience gained from the recent disaster, and will start sales of "Lump-sum payment rider for auto insurance in case of total vehicle loss from an earthquake, volcanic eruption or tsunami" in January 2012. The rider aims to ensure funds for customers to purchase a replacement in case of total vehicle loss from an earthquake, volcanic eruption or tsunami. Tokio Marine & Nichido has also developed the industry’s first "One-day auto insurance", which can be purchased via mobile phone at any time of the day, and started its presales in October. This is a new type of auto insurance that can be purchased for 500 or 1,000 yen per day for the number of days needed. It is hoped that this product will help to reduce the number of accidents involving uninsured drivers and protect accident victims by increasing the rate of insurance enrollment among young drivers, in particular. In April of next year, Tokio Marine & Nichido will introduce its new paperless system for completing an insurance contract process through tablet and other mobile terminals. This system is aimed at making insurance contract procedures easier to understand and faster to complete, as well as helping to reduce usage of paper resources since it is completely electronic. Domestic Life Insurance Business Tokio Marine & Nichido Life aims to realize growth by developing products and services that respond to customer needs and pursuing an integrated life and non-life approach. In August of this year, Tokio Marine & Nichido Life launched its "Medical Kit" insurance with a new rider covering work disability in the event of five different types of diseases. Last November, it also introduced "Long-life supporting whole life” insurance featuring lifetime nursing care coverage in addition to severe disability and death coverage to meet the needs of a super-aging society. Sales results for this product have been consistently strong since introduction. Furthermore, Tokio Marine & Nichido Life strengthened its integrated life and non-life approach by making it possible to incorporate the above new products into "Super Insurance". Tokio Marine & Nichido Financial Life endeavored to strengthen its relationships with financial institution sales channels, while maintaining its emphasis on risk control and a cautious sales posture in consideration of financial market conditions. International Insurance Business The Group vigorously carries out its international insurance business with the aim of pursuing further global growth opportunities. Philadelphia Consolidated Holding Corporation (“PHLY”), a U.S. property and casualty insurance group, is pursuing strategies focused on specific industry sectors and customer segments amid a low growth in the U.S. non-life insurance market, and, as a new initiative, has begun to underwrite guarantee insurance. Kiln Group Limited (“Kiln”), a U.K. insurance group, has invested in WNC Holdings, a U.S. based agent, and is aiming to expand its insurance business by strengthening its relationship with that company. As for the reinsurance business, Tokio Millennium Re Limited has pursued enhancement of its business base by expanding reinsurance underwriting in European continent and Oceania, based on its new growth strategy. In August of this year, Tokio Marine Holdings decided to make First Insurance Company of Hawaii Limited, the oldest non-life insurer in the U.S. state of Hawaii, into a wholly owned subsidiary, through Tokio Marine & Nichido. Also in the U.S. market, Tokio Marine Holdings established Tokio Marine North America as a holding company for its U.S. operations to further expand the profitability and scale of insurance businesses in the U.S. In emerging markets, Edelweiss Tokio Life Insurance Company Limited, a joint venture established in India by Tokio Marine Group and a leading financial services company in India, commenced operations in July this year. Consequently, the Tokio Marine Group became the only Japanese insurance group operating both non-life and life insurance businesses in India. CSR The Group devotes considerable efforts to CSR activities, and has been particularly active in addressing the protection of the global environment. Tokio Marine & Nichido has introduced a system that enables customers to view insurance terms and conditions on the company website, "web clauses," instead of in a paper form, in an effort to reduce paper usage. So far, over 8.4 million customers have chosen "web clauses". In accordance with the number of contract in which "web clauses" is chosen, Tokio Marine & Nichido contributes funds to support mangrove-planting activities of NGOs. In addition, having achieved “carbon neutral” status at the end of the previous fiscal year at Tokio Marine & Nichido, the Group as a whole endeavors to realize carbon neutral by undertaking various initiatives to reduce environmental impact. (Note) "Carbon neutral" refers to achieving net zero carbon emissions by balancing a measured amount of carbon released from business activities with an equivalent amount sequestered or offset by means of carbon-absorbing or carbon-reducing activities, such as mangrove planting. Consolidated Business Results for 1H of FY2011 Interim consolidated business results reflect lower earnings YoY as shown below, mainly due to the impacts of typhoon No.15 and other large-scale domestic and overseas natural catastrophe losses.
Ordinary income and ordinary profit for each business segment were as follows:
Under our management philosophy to place “customer trust at the base of all its activities,” the entire Tokio Marine Group will endeavor to achieve further growth as a corporate group, seeking growth characterized by high profitability, sustainability and soundness. The management would like to express its sincere appreciation to both investors and shareholders of Tokio Marine Holdings for their continued guidance and support. December, 2011 |
