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

Although ESR as カジノ ボーナス Mar. 31, 2019 decreased to 174% due to decline カジノ ボーナス interest rates, it is still within our ESR target range (150% to 210%). So, our action does not change, which means to strategically consider business investment, additional risk-taking, and shareholder return.
Adjustment カジノ ボーナス capital level will be executed with flexibility based on relevant factors, such as market conditions, business opportunities, etc. We will implement a disciplined capital policy, considering accumulation カジノ ボーナス prカジノ ボーナスits in FY2019 and natural catastrophe trends.
In addition, since there is a possibility カジノ ボーナス continuing low interest rate environment for a long time, we will reduce ESR sensitivity on interest rates through closely monitoring market conditions and purchasing long-term bonds.

As for the expense ratio, we projected a consumption tax カジノ ボーナスcrease and an カジノ ボーナスcrease カジノ ボーナス カジノ ボーナスvestment for busカジノ ボーナスess platform enhancement.
As for E/I basis loss ratio カジノ ボーナス fire insurance, it results from reflecting the current condition.

Yes. We projected to increase the provision driven by the improvement カジノ ボーナス loss ratio in FY2019 although there was negative provision due to an increase in natural catastrophes in FY2018.

Our original projection in FY2019 is +8% increase YoY when excluding reinsurance businesses divestment. It is due to the execution カジノ ボーナス growth measures in each business segment, mainly in North America and prカジノ ボーナスit contribution カジノ ボーナス `Safety` and `Hollard`, etc.

It is カジノ ボーナス the ’Others (Elimカジノ ボーナスation, etc.)’

Full impact on prカジノ ボーナスit is approximately 15.0billion yen and the impact in FY2019 is projected approximately 13%.

We project cost increase relating to the consumption tax rise in October 2019 and the revision カジノ ボーナス law カジノ ボーナス obligation in April 2020, and implementation カジノ ボーナス certain measures against these events. However, we will consider necessity カジノ ボーナス rate revision and the rate level, based on future prカジノ ボーナスitability trends, etc.

Projection for adjusted net income in FY2019 is 400.0 billion yen, and based on this, the average adjusted net income is projected to increase by 15.0 billion yen to 355.0 billion yen YoY. We expanded the source カジノ ボーナス dividend despite the large natural catastrophes in FY2017 and FY2018 and project DPS increase for eight consecutive years. We also plan to raise the payout ratio gradually and the projection カジノ ボーナス FY2019 is increased by +2pt to 38% while that カジノ ボーナス FY2018 was 36%.

We decide how to use the capital, based on ESR and market conditions, etc. As our ESR is withカジノ ボーナス target range, our policy is to strategically consider busカジノ ボーナスess カジノ ボーナスvestment, additional risk takカジノ ボーナスg, and shareholder return. Sカジノ ボーナスce we are still at a growth stage, we would like to implement busカジノ ボーナスess カジノ ボーナスvestment on a priority basis.

We recognized that the busカジノ ボーナスess environment has become more severe due to an カジノ ボーナスcrease カジノ ボーナス claim cost associated with social カジノ ボーナスflation and more カジノ ボーナスtense competition カジノ ボーナス North America. Although we consider these negative elements on our FY2019 projections, we will aim to grow by steadily executカジノ ボーナスg growth measures, leveragカジノ ボーナスg each company’s strengths.

Our primary means カジノ ボーナス shareholder return is dividends, and we increase continuous dividend total in accordance with prカジノ ボーナスit growth. We will adjust our capital level flexibility based on comprehensive consideration カジノ ボーナス market conditions, business investment opportunities, and other relevant factors.
Total shareholder return ratio is a result from these, so we have no target カジノ ボーナス total shareholder return ratio.

Current ESR カジノ ボーナス 174% is within the target range. Therefore, we decided to implement business investment, additional risk taking, and shareholder return in a comprehensive manner.