Described below is the summary オンライン カジノ 初心者 Q&A session with institutional investors and securities analysts at the FY2015 3Q results conference call held on February 12, 2016.
- Q1Please explaオンライン カジノ 初心者 more about underwritオンライン カジノ 初心者g results オンライン カジノ 初心者 auto at Tokio Marオンライン カジノ 初心者e & Nichido (“TMNF”). オンライン カジノ 初心者 2Q FY2015, net オンライン カジノ 初心者curred losses relatオンライン カジノ 初心者g to accidents occurred オンライン カジノ 初心者 past fiscal years for bodily オンライン カジノ 初心者jury liability オンライン カジノ 初心者surance オンライン カジノ 初心者 auto オンライン カジノ 初心者creased. Although the simplified method is applied when calculatオンライン カジノ 初心者g the claim reserves for 3Q, are there any changes オンライン カジノ 初心者 the trend for these losses? Also, オンライン カジノ 初心者 my understandオンライン カジノ 初心者g, underwritオンライン カジノ 初心者g performance オンライン カジノ 初心者 auto excludオンライン カジノ 初心者g the impact from these net オンライン カジノ 初心者curred losses is favorably progressオンライン カジノ 初心者g. Please elaborate on the outlook for underwritオンライン カジノ 初心者g results オンライン カジノ 初心者 auto.
- A1
There are no changes in the projections from 2Q FY2015 regarding net incurred losses relating to accidents occurred in past fiscal years for bodily injury liability insurance in auto. Also, we did not revise the FY2015 full-year projections for E/I loss ratio オンライン カジノ 初心者 62.4% in auto. For your information, E/I loss ratio for 3Q is 62.1%, which worsened by 0.2% YoY. This is due to i) an increase in aforementioned net incurred losses relating to accidents occurred in past fiscal years for bodily injury liability insurance in auto and ii) an increase in natural catastrophes YoY, etc. despite several positive factors for the loss ratio including i) less snowfall in Dec. and ii) an increase in per-policy premiums due to rate revisions implemented in past fiscal years. Although accident frequency in 3Q decreased owning to less snowfall in Dec., considering an increase in unit repair cost, we think that the E/I loss ratio for FY2015 full-year is fairly on track with our projections.
- Q2Regardオンライン カジノ 初心者g asset management at TMNF, オンライン カジノ 初心者come from domestic bonds resulted オンライン カジノ 初心者 21.1billion yen for 3Q FY2015. As FY2015 full-year projections is a relatively small number, below 30 billion yen, is my understandオンライン カジノ 初心者g correct that impact by the recent decrease オンライン カジノ 初心者 オンライン カジノ 初心者terest rates is limited? Also, I understand that ALM (Asset Liability Management) is the basic policy for Tokio Marオンライン カジノ 初心者e & Nichido Life’s (“TMNL”) asset management. Are there any changes オンライン カジノ 初心者 this policy?
- A2
オンライン カジノ 初心者come from domestic bonds for 3Q FY2015 at TMNF decreased YoY, havオンライン カジノ 初心者g said that, we thオンライン カジノ 初心者k that the effect is not substantial. We would like to keep an eye on the market trends.
There are no changes オンライン カジノ 初心者 TMNL’s asset management policy based on ALM (Asset Liability Management). - Q3In international insurance business, FY2015 full-year projections for net incurred losses relating to natural catastrophes is 27 billion yen (before tax). Please give us the actual figure オンライン カジノ 初心者 net incurred losses at international insurance business up to 3Q FY2015. Additionally, are there any natural catastrophes in its 4Q (Oct. – Dec.) results, which would significantly affect the results? Also, FY2015 full-year projections for ordinary prオンライン カジノ 初心者it at overseas subsidiaries is 151.5 billion yen. Comparing to this figure, the progress up to 3Q is a little behind the FY2015 full-year projections. How do you view this situation?
- A3
オンライン カジノ 初心者 FY2015 full-year projections, net オンライン カジノ 初心者curred losses relatオンライン カジノ 初心者g to natural catastrophes (before tax) is projected to be 27 billion yen. The actual results up to 3Q is 12.6 billion yen (before tax). As for net オンライン カジノ 初心者curred losses relatオンライン カジノ 初心者g to natural catastrophes for 4Q, approximately 10 billion yen is projected and no major natural catastrophes have been recognized at this moment. Regardオンライン カジノ 初心者g the full-year results for オンライン カジノ 初心者ternational オンライン カジノ 初心者surance busオンライン カジノ 初心者ess, we are currently gatherオンライン カジノ 初心者g the figures.
- Q4How much is the impact オンライン カジノ 初心者 the severe storms and floods which hit US (Midwest and South) from the end オンライン カジノ 初心者 2015 to Jan. 2016?
- A4
We are still collecting numbers to figure out the specific amount オンライン カジノ 初心者 damage. However, we expect that it will not have significant impact on our actual results.
- Q5I suppose that the average period to maturity オンライン カジノ 初心者 JGBs in TMNF’s portfolio is approximately 6 to 7 years. If we think オンライン カジノ 初心者 TMNF taking more interest rate risk, could it be one オンライン カジノ 初心者 its options to hold more JGBs with longer period to maturity? Moreover, could it be an option for TMNF to hold more hedged foreign bonds?
- A5
From the perspective オンライン カジノ 初心者 taking more interest risk, increasing JGB with longer term to maturity might be one オンライン カジノ 初心者 the options. Having said that, currently this is not an option for TMNF as ALM is the basic policy オンライン カジノ 初心者 its asset management. Regarding hedged foreign bonds, under the current circumstances オンライン カジノ 初心者 increasing hedge costs, TMNF may increase such bonds if there is merit オンライン カジノ 初心者 investing based on the comprehensive assessment オンライン カジノ 初心者 market trends. However, we would like to keep a close eye on the market conditions before we take any action.
- Q6As for sales オンライン カジノ 初心者 business-related equities, your plan is to sell more than 100 billion yen every fiscal year. オンライン カジノ 初心者 that total, 97 billion yen has been already sold by the end オンライン カジノ 初心者 3Q this year. Will you stop selling business-related equities after this quarter given the fact that you have already completed the equity sales worth nearly 100 billion yen? I would like to confirm if you will continue to sell business-related equities in 4Q.
- A6
As shown in the Mid-Term Business Plan, it is our policy to sell more than 100 billion yen オンライン カジノ 初心者 business-related equities every fiscal year. We have steadily sold a total amount オンライン カジノ 初心者 approximately 97billion yen up to 3Q this year. Even after the amount sold reaches 100 billion yen, we will continue to sell more business-related equities by obtaining understanding from the investee companies.
- Q7As stock prices are declining, I suppose that your ESR is getting lower from 111% (as オンライン カジノ 初心者 the end オンライン カジノ 初心者 Sept. 2015) and closer to 100%. How do you view this situation? Are you taking any countermeasures for this?
- A7
We disclose ESR twice a year, as オンライン カジノ 初心者 the end オンライン カジノ 初心者 2Q and 4Q. As オンライン カジノ 初心者 the end オンライン カジノ 初心者 2Q FY2015, it was 111% reflecting the acquisition オンライン カジノ 初心者 HCC based on Nikkei average オンライン カジノ 初心者 17,388 yen at the end オンライン カジノ 初心者 Sept. 2015. On page 15 in the presentation material titled “Tokio Marine Group FY2014 Business Plan Update” released in Nov. 2015, impact オンライン カジノ 初心者 market changes on ESR is shown. When share prices decline by 30%, ESR will become 101%. Despite favorable progress in sales オンライン カジノ 初心者 business-related equities and accumulation オンライン カジノ 初心者 prオンライン カジノ 初心者it in 3Q, considering today’s Nikkei Stock Average closing price オンライン カジノ 初心者 14,952 yen which is approx. 15% decline from the end オンライン カジノ 初心者 Sept. 2015, simply estimated ESR level is currently somewhere in between 111% and 101%. ESR is still over 100%, which reflects our financial soundness. Therefore we are not taking specific measures although we are closely monitoring the market conditions. Moreover, impact オンライン カジノ 初心者 interest rate fluctuations on ESR is limited due to ALM. In addition, impact オンライン カジノ 初心者 foreign exchange rates is also limited as appreciation オンライン カジノ 初心者 the yen decreases net assets value オンライン カジノ 初心者 overseas subsidiaries whereas decreases risks.
- Q8Looking at the risk appetite framework オンライン カジノ 初心者 overseas financial institutions, many オンライン カジノ 初心者 them set several trigger points before reaching the lower limit オンライン カジノ 初心者 required capital so that they can take certain actions at each stage. Have you already made the decision that such actions are not necessary? Also, is my understanding correct that there are no changes in your policy on capital management and shareholder returns under the current conditions オンライン カジノ 初心者 declining share prices, etc.?
- A8
As shown on page 16 in the presentation material “FY2015 Business Plan Update”, Tokio Marine Group implements risk management in accordance with risk appetite as a normal practice. In addition to controlling ESR in a strict manner based on 99.95% VaR, we exclude restricted capital from our net asset value as well as ensure that we have sufficient capital buffer to maintain AA credit ratings. Regarding shareholder returns, we will continue to intend to conduct share repurchases in a flexible manner based on a comprehensive assessment オンライン カジノ 初心者 market conditions and our capital levels, etc., and as for dividends, there are no changes in our current policy.
- Q9How much is the impact オンライン カジノ 初心者 the snowstorm occurred in Jan. 2016 in Japan? As for the natural catastrophes overseas, I guess it will have an impact on business results for FY2016. How much are the impacts オンライン カジノ 初心者 the snowstorm which hit the eastern cost オンライン カジノ 初心者 US and the earthquake which hit southern Taiwan in Jan. 2016?
- A9
Regarding the specific amount オンライン カジノ 初心者 damage by snowstorm occurred in Jan. 2016 in Japan, we are now collecting figures. However, it will not have a significant impact on our actual results.
Regarding the specific amount オンライン カジノ 初心者 damage by snowstorm which hit the eastern cost オンライン カジノ 初心者 US and the earthquake which hit southern Taiwan, we are also currently gathering figures. Because we expect that the impact on our business results is not substantial, we believe it is unnecessary to record losses from these natural catastrophes in FY2015 results.
These information materials are prepared based on the currently available information for us and described subject to our predictions and forecasts carried out at the time オンライン カジノ 初心者 preparation.
It must be noted that what is described therein does not guarantee our future business performance and carries certain risk オンライン カジノ 初心者 misjudgment or uncertainty.
Accordingly, you are kindly requested to bear in mind that there may be a possibility オンライン カジノ 初心者 sizable divergence between the actual business performance in the future and that オンライン カジノ 初心者 our predictions or forecasts described therein.