March 18, 2011
Tokio Marine Holdings, Inc.
President: Shuzo Sumi
TSE code number: 8766
Tokio Marine Comments on March 11 Earthquake in North East Japan
Tokio Marine would like to comment on the devastating earthquake which struck the north-eastern part of Japan on March 11. First, we would like to express our most sincere condolences to all people, our customers, agents, employees and their families and friends who have been affected. Also we very much appreciated for many warm words and encouragements from all around the world.
We confirmed that most of our employees including those who reside in north-eastern region were safe while some are still missing and a few sub-branches in the region suffered certain damages. Tokio Marine, as a public insurance company, will operate our business as usual and take all necessary measures to fulfill our business and social responsibilities, including expeditious and efficient claim services. Now, we immediately formed the Special Task Force headed by the President Sumi and are providing full scale support for the affected area such as operating the toll-free emergency call centers, dispatching special teams for claim services and delivering necessary living items for our operations, partners and customers on site.
With respect to insured losses, as for personal lines, the earthquake coverage for residential properties, which is a separate coverage from the standard policy, is basically retained by the Japanese government’s pooling scheme. As for commercial property lines, while we expect certain net losses, our standard commercial property policy form does not cover earthquake shock risk or tsunami risk and we maintain strict underwriting discipline for providing such coverage by endorsement. Also, it is expected that any impacts due to nuclear plant accident will not affect Tokio Marine since losses due to earthquake are excluded. Therefore, while it is too early to estimate the loss Tokio Marine would incur in connection with this event, we believe at this moment that our financial soundness backed by ample reserves and capital will enable us to prepare for the loss events, and the solidity of Tokio Marine Group will not be affected.
Tokio Marine is making every effort to fulfill our responsibility through providing security and safety to the affected area. We will keep you updated as the situation unfolds.