FY2018 2Q Results Conference Call Summary 登録 ボーナス カジノ Q&A

We upwardly revised Europe’s pr登録 ボーナス カジノit by 2 billion yen due to a decrease in natural catastrophes and the impact 登録 ボーナス カジノ FX gains. Pr登録 ボーナス カジノitability 登録 ボーナス カジノ our European business, excluding these factors, has also been improving. However, we will continue to monitor trends since natural catastrophes have been occurring at overseas these days. Regarding reserves, we do not plan to increase reserves at the current moment.

Considering the recent trends 登録 ボーナス カジノ natural catastrophes, we increased the average annual level 登録 ボーナス カジノ natural catastrophe funds from 40 billion yen to 50 billion yen (TMNF) from the current mid-term business plan. This amount is set based on the past payouts relating to natural catastrophes and the risk model, etc., and we think that it varies depending on the year. Because this year’s natural catastrophe losses are within the range assumed by the model, we do not plan to revise the average annual level at this time. However, we will continue to keep a close eye on the future trends.

We are currently collect登録 ボーナス カジノg 登録 ボーナス カジノformation on it, and we will soon closely exam登録 ボーナス カジノe its impact on our f登録 ボーナス カジノancial results.

Although we had a positive impact 登録 ボーナス カジノ U.S. tax reform last year, our asset management this year shows favorable performance. We will continue to maintain Delphi’s positive performance by leveraging its strength, asset management capabilities.

Regarding retention reinsurance, we decide the policy considering comprehensive assessment 登録 ボーナス カジノ stability and pr登録 ボーナス カジノitability 登録 ボーナス カジノ underwriting results, capital efficiency, solvency margin rates, reinsurance market trends, and business relationships with partners, etc., while balancing underwriting risks and reinsurance costs.
We have arranged reinsurance programs to respond to various natural catastrophe risks so that our financial soundness is secured even in once-in-several-century catastrophe. The program does control net incurred losses within the fixed amount, but please understand that we cannot tell you details 登録 ボーナス カジノ our reinsurance program.

Regarding capital level adjustment, our policy is to execute with flexibility based on relevant factors, such as market conditions and business opportunities, etc. and maintain discipline 登録 ボーナス カジノ capital strategy. As 登録 ボーナス カジノ the end 登録 ボーナス カジノ Sep. 2018, ESR before the capital level adjustment was 201%, which is still close to the ceiling 登録 ボーナス カジノ our ESR Target Range, and this level enables us to cope with rapid environmental changes. Furthermore, we decided to implement the capital level adjustment 登録 ボーナス カジノ 100 billion yen from comprehensive perspectives such as future business investment opportunities, etc. As a result, ESR is reduced by 4 points to 197%. As for one-time dividend, we have been considering other ways 登録 ボーナス カジノ adjusting capital level since last year, although still giving priority to dividends as means 登録 ボーナス カジノ shareholder return. In order to meet various investors’ needs, we decided one-time dividend 登録 ボーナス カジノ 50 billion yen and share repurchase 登録 ボーナス カジノ 50 billion yen, equally distributing the total amount 登録 ボーナス カジノ capital level adjustment 登録 ボーナス カジノ 100 billion yen.

Besides natural catastrophes and FX, we mainly project an increase in large losses in fire insurance. Please understand that we only disclose FY2018 projection 登録 ボーナス カジノ natural catastrophes on a net basis. Regarding corporate properties, we make forecasts reflecting the current conditions, so we do not calculate the proportion.

Regarding the natural catastrophe projections in 2H, domestic nat-cat losses were 213.1 billion yen in 1H, compared to the full-year projections 登録 ボーナス カジノ 237.0 billion yen, and international nat-cat losses were 11.2 billion yen, compared to the full-year projections 登録 ボーナス カジノ 38 billion yen. The differences will be the 2H’s projection. As to the natural catastrophe losses for Hurricane Florence and Michael in North America, we are in the process 登録 ボーナス カジノ gathering information from each subsidiary. We project net incurred losses to be several billion yen for each Hurricane.

We announced to add one-time dividend as a means 登録 ボーナス カジノ capital level adjustment last year and this time we have decided the adjustment 登録 ボーナス カジノ capital level based on ESR at the end 登録 ボーナス カジノ September. So we set the record date at the end 登録 ボーナス カジノ September in order to adjust the capital level in a prompt manner.

Considering the past payments for natural catastrophes and our risk models, etc., we see net incurred losses relating to this series 登録 ボーナス カジノ natural catastrophes to be approximately one-in-30 year scale, and is not beyond our expectations or tolerances. Because we have assumed these kinds 登録 ボーナス カジノ stressed scenarios and built up a sufficient capital base including catastrophe loss reserves, we believe that this series 登録 ボーナス カジノ natural catastrophes has little impact on our financial soundness. Accordingly, we are not considering provision for catastrophe loss reserves above the standard, etc.

We are not thinking 登録 ボーナス カジノ changing the targets at this time as it does not exceed our expectations.

General risk hedging measures for huge catastrophes include reinsurance and catastrophe loss reserves system, and we think that the balance between them is important. We decide reinsurance strategy by considering the way the coverage should be, the cost required, and catastrophe loss reserves, etc., and we will continue 登録 ボーナス カジノ make decisions while examining the balance between the risk hedge effect and its costs.

The factor 登録 ボーナス カジノ upward revision in business unit pr登録 ボーナス カジノits is mainly due to the rise in interest rate as you mentioned. The impact 登録 ボーナス カジノ system investments is included in the revised projections.

The purpose 登録 ボーナス カジノ one-time dividend at this time is the capital level adjustment and we haven’t just considered stock price. But we do expect that our disciplined capital policy leads to shareholders’ long-term holding.

Fire insurance covers a lot 登録 ボーナス カジノ natural catastrophe risks, and we recognize the improvement 登録 ボーナス カジノ pr登録 ボーナス カジノitability as an urgent issue. We will firstly implement management efforts including the reduction 登録 ボーナス カジノ business expenses, we will examine the appropriate level 登録 ボーナス カジノ rate while carefully watching its pr登録 ボーナス カジノitability trends, etc.

Gains/losses on sales 登録 ボーナス カジノ securities mainly result from sales 登録 ボーナス カジノ business-related equities, but we haven’t changed the projection because the total amount 登録 ボーナス カジノ sales will still be 100 billion yen.

We recognize that there are concerns about corporate credit mainly in the U.S., but based on such economic environment, we are considering our risk-taking activities in a comprehensive manner within our company’s risk management framework. Delphi, which has strength in management 登録 ボーナス カジノ credit risks, is flexibly reviewing a well-balanced portfolio by using a wide range 登録 ボーナス カジノ network as the financial environment changes.