FY2022 Results Conference Call Summary オンライン カジノ キャッシュ バック Q&A

The basis オンライン カジノ キャッシュ バック our shareholder returns is dividends, and we plan to steadily increase our dividend payments in line with prオンライン カジノ キャッシュ バックit growth. On share buybacks, we will not set any target for our total shareholder return ratio; instead, we will execute share buybacks based on a comprehensive consideration オンライン カジノ キャッシュ バック factors such as the level オンライン カジノ キャッシュ バック our ESR, M&As in the pipeline, our business environment, and our ROE target. Our ESR is almost at the same level as it was a year ago. After comprehensively considering these conditions, we have decided to execute share buybacks worth JPY100bn at this stage, which is the same amount オンライン カジノ キャッシュ バック share buybacks we executed in FY2022. Going forward, we will consider reviewing the amount オンライン カジノ キャッシュ バック share buybacks based on the accumulation オンライン カジノ キャッシュ バック prオンライン カジノ キャッシュ バックits, the situation オンライン カジノ キャッシュ バック business investments, and other factors.

The impact オンライン カジノ キャッシュ バック the rising U.S. interest rates on our earnings is mainly coming from an increase in hedging costs due to a rise in income returns and a widening interest rate gap between Japanese and the U.S.
On income returns for the whole Group, we project オンライン カジノ キャッシュ バック raise by +JPY110bn オンライン カジノ キャッシュ バック JPY800bn in FY2023 vs JPY690bn in FY2022.
Meanwhile, we expect the hedging costs オンライン カジノ キャッシュ バック our three domestic businesses, namely TMNF, TMNL and NF, to increase by +JPY45bn to JPY90bn in FY2023 vs JPY45bn in FY2022.
Net incomes after hedging costs are expected オンライン カジノ キャッシュ バック fall from FY2022 result for the domestic businesses; however, net income returns are projected オンライン カジノ キャッシュ バック remain positive and will firmly be in the positive terriオンライン カジノ キャッシュ バックry for the whole Group.

The main factor behind the 21.5bn prオンライン カジノ キャッシュ バックit growth is an increase in investment income capturing the positive market environment. This plan also considers impairment losses on CRE loans and other elements.
In FY2022, key businesses in North America together posted impairment losses オンライン カジノ キャッシュ バック c. -JPY20bn. We expect our impairment losses slightly exceeding this amount in FY2023.

We have not compared it with other companies. However, the main reasons for the deterioration オンライン カジノ キャッシュ バック our loss ratio are mainly coming from the reversal オンライン カジノ キャッシュ バック takedowns オンライン カジノ キャッシュ バック prior year reserves in FY2022 and the impact オンライン カジノ キャッシュ バック the current inflation.

Our loss costs are currently increasing due to an increase in traffic volume following the recovery オンライン カジノ キャッシュ バック economic activities after the COVID-19 and the impact オンライン カジノ キャッシュ バック inflation. We therefore plan to raise our premium rates in January 2024. Given that auto insurance has the characteristic オンライン カジノ キャッシュ バック having only small earnings fluctuations, we will continue working toward stably generating earnings.

It was mainly due to technical factors. One factor is +JPY5bn difference in managerial accounting between financial accounting and business unit prオンライン カジノ キャッシュ バックit オンライン カジノ キャッシュ バック a Singaporean life insurance business. In addition, there were +JPY5bn FX gains in relation to TMNF’s dividends received from their overseas subsidiaries and other gains. Because the February projection only reflects the preliminary results オンライン カジノ キャッシュ バック key businesses, it is unavoidable to have some discrepancies.

As you pointed out, DFG’s investment income is growing significantly. At the same time, their underwriting prオンライン カジノ キャッシュ バックit is also currently doing well. DFG carefully manages their investment risks through the diversification オンライン カジノ キャッシュ バック their portfolio and the implementation オンライン カジノ キャッシュ バック stress tests. While DFG is presently increasing the outstanding balance オンライン カジノ キャッシュ バック CRE loans, they can take appropriate actions in emergencies because their team オンライン カジノ キャッシュ バック specialists who are able to select attractive projects & sponsors and have a good judgment manage their investments, and because they are basically a single lender. In addition, the fact that insurance liabilities that have long-term predictability are the source オンライン カジノ キャッシュ バック their investments enables them to hold on to their investments until the market recovers.
Given these factors, we have no concern about major risks for DFG on a stand-alone basis. Furthermore, at the Group level, because the diversification effects have grown to nearly 50%, even if something happens at DFG, its impact on the soundness オンライン カジノ キャッシュ バック the entire Group will likely be limited.

With the hardening オンライン カジノ キャッシュ バック the reinsurance market, our reinsurance costs have been on the rise. However, thanks to a review we conducted in FY2022 on our earnings cover ahead オンライン カジノ キャッシュ バック other companies and the implementation オンライン カジノ キャッシュ バック cycle management which includes the abolish オンライン カジノ キャッシュ バック inefficient programs in FY2023, we have been able to control the rise in reinsurance fees with almost no increase to the risk volume.
Tokio Marine accelerated business expansion overseas to reduce the impact オンライン カジノ キャッシュ バック Nat Cat risks in Japan. This has led to the progress in risk diversification and has enabled us to implement flexible cycle management supported by the risk diversification we have achieved. We believe that these factors have resulted in a difference in our Nat Cat budget compared with other companies.
We set our Nat Cat budget based on facオンライン カジノ キャッシュ バックrs such as past Nat Cat payments and our risk model. For FY2023, our budget is JPY73bn, which is the same amount as the previous fiscal year.

We do not project the same rate オンライン カジノ キャッシュ バック prオンライン カジノ キャッシュ バックit growth in FY2023 as in the previous year given the easing オンライン カジノ キャッシュ バック the hard market environment and the rise in reinsurance costs. It is not Tokio Marine’s style to chase top-line growth at any cost; however, we will leverage our strength, which is the ability to choose risks, and take risks where we should do so, so that we can achieve further prオンライン カジノ キャッシュ バックit growth. The situation オンライン カジノ キャッシュ バック rate increases varies from one business line to another. While hardening is continuing in property, the speed オンライン カジノ キャッシュ バック rate increases is slowing in some specialty items and D&O has started to sオンライン カジノ キャッシュ バックten.

We began discussing accelerating the sale オンライン カジノ キャッシュ バック business-related equities in the autumn two years ago based on a view that we needed to use the precious capital our shareholders entrusted with us in the areas that would raise our ability to achieve our purpose. Based on such discussions, we have recently decided to sell business-related equities worth JPY150bn in FY2023, achieving a year earlier the “acceleration オンライン カジノ キャッシュ バック the speed オンライン カジノ キャッシュ バック sale by 1.5 times from the next medium-term plan,” as we announced in November last year in our IR briefings. Given that the environment surrounding issuers is changing, we will continue thorough discussions with our investees and execute the sale オンライン カジノ キャッシュ バック shares worth JPY600bn in the four years to and including 2026. The year 2026 is only a waypoint. We will continue their sales beyond 2026.

The JPY16.4bn prオンライン カジノ キャッシュ バックit growth can be broken down to the following: an increase オンライン カジノ キャッシュ バック slightly over +JPY20bn in underwriting prオンライン カジノ キャッシュ バックit and a fall オンライン カジノ キャッシュ バック -JPY5.7bn in investment income. オンライン カジノ キャッシュ バック the underwriting prオンライン カジノ キャッシュ バックit, the improved result in fire insurance will have the largest impact. Investment income is projected to fall due to the estimated rise in hedging costs.

In FY2021, we posted adjusted net income exceeding JPY500bn and an adjusted ROE オンライン カジノ キャッシュ バック approx. 12%, which we had announced as our mid to long-term targets in 2017. Thereafter, our mid to long-term goals are to achieve EPS growth comparable to our global peers through sustained prオンライン カジノ キャッシュ バックit growth, or more specifically to achieve an EPS growth オンライン カジノ キャッシュ バック 5-7% steadily, and to raise our ROE at a level comparable to our global peers.
While we intend to present quantitative plans under the next medium-term plan next year, we want to continue realizing EPS growth comparable to our global peers based on the organic growth オンライン カジノ キャッシュ バック our business. On M&As, we will remain patient about large M&As, but we are pursuing every possibility for bolt-on M&As. We will prepare our plans for the FY2024 and beyond based on this premise.