Tokio Marine Group Investor Day (5.1MB)PDF

Tokio Marine Group Investor Day

November 26, 2020

Group CEO Group CFO I Group Strategy Group CCO (13:30 －14:30 JST) Satoru Komiya Takayuki Yuasa

President & CEO President & CEO II Domestic Business Strategy Tokio Marine & Tokio Marine & (14:40 15:25 JST) Nichido Nichido Life － Shinichi Hirose Katsumi Nakazato

Ⅲ International Business Strategy Co-Head of International Business Akira Harashima (15:35 －16:20 JST)

Ⅳ Group CIO Asset Management Strategy Yoshinari Endo (16:30 －17:00 JST)

Group CEO Satoru Komiya Group CFO Takayuki Yuasa

Copyright (c) 2020 Tokio Marine Holdings, Inc. 2 I．Group (Strategy) Power of Execution Next Step Next MTP Our Goal and Strategy Continue the existing management strategy and turn the growth cycle at a fast and planned pace heading towards our goal Our Goal A global insurance group delivering attractive value to all stakeholders Stable double-digit ROE High-level shareholder return

Capital adjustment

Capital Organic growth generation Shareholder return

Sustain stable profit base in Japan Business Dividend increase Enhance specialty in investment Flexible capital level adjustment developed countries

Capture growth potential in Disciplined and strategic M&A emerging countries Disciplined risk taking + IN Portfolio review

Strategic capital release Appropriate risk control OUT

ESG for sustainable growth

Constantly review portfolio to further improve capital efficiency

Build optimal portfolio IN (Pure, Caixa, etc.)

Forward-looking portfolio review Disciplined and strategic M&A, risk taking

Actual Profit Volatility Growth Potential

Strategic Significance ROR of Business

Generate Capital / Fund OUT (TMR, Bail USA, Egyptian Life, etc.)

Enhance our actual capabilities with steady execution of business strategy towards our goal

M&A [Adjusted Net Income/Adjusted ROE (normalized basis)*] Allocating capital for M&A will enable further growth and shorter time Further Further growth frame 12.5% M&A (Billions of JPY) Medium- to long-term Shorter time target (Milestones) 500.0 frame Over ¥500 bn (Adjusted net income) Organic 420.0 growth Around 12 ％ (Adjusted ROE)

400.0 Organic growth

Medium- to long-term target can be achieved with organic 300.0 growth  Hardening overseas market  Growth potential of Pure and Caixa 200.0 4.8%  Profitability improvement of fire insurance and expansion of specialty insurance 114.1 100.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Our Goal (Projection)

*: Natural catastrophes are adjusted to 2020 original projection level, and the impact of reinstatement premiums is excluded for 2018 and 2019. Copyright (c) 2020 Tokio Marine Holdings, Inc. 2020 figures exclude the impact of COVID-19. 5 I．Group (Strategy) Power of Execution Next Step Next MTP Portfolio Diversification

Appropriately control risk and realize sustainable growth

Risk diversification Trends of premiums and risks*

FY2019 Diversification effects 48 % ¥4.5 Sustainable trillion growth Risk after diversification

12% ¥ trillion 24% 2.7 Before 24% ¥5.2 trillion Domestic non-life 24% ■ (underwriting) 16% Control of nat-cat risk

■ Domestic non-life ¥3.3 Net premiums written + Life insurance premiums (investment) trillion Reduction of business-related equities risk FY2014 Diversification effects 44 % ■ Domestic life Control of interest rate risks Risk Shift to protection-type products 10% Disciplined 21% ¥2.8 International insurance control 14% ■ trillion Before Diversification improvements ¥5.0 trillion with business expansion ¥2.7 21% 33% trillion

Risk after diversification ¥2.8 trillion 2014 2015 2016 2017 2018 2019

■ Others: Financial and General businesses, FX risk derived from net capital investments, etc. *: ESR risk (99.95% VaR, after tax basis) Copyright (c) 2020 Tokio Marine Holdings, Inc. 6 I．Group (Strategy) Power of Execution Next Step Next MTP Stabilization of Business Platform with Global Risk Diversification

Control impact on income from natural catastrophes and COVID-19 with risk diversification

Impact of natural catastrophes Impact of the COVID-19 on underwriting profit

 Geographical and business diversification steadily  Impact of COVID-19 in FY2020 expected to be controls impact of natural catastrophes on controlled compared to peers with risk income diversification Limited the impact on income *2 400.0 despite large natural catastrophes

Adjusted netincome FY14-16 Peers *3 FY17-19 300.0 Small natural catastrophes, large Average Maximum Minimum adjusted net income 200.0 4.7% FY11-13 3.6% 2.7% 2.9% 100.0 Large natural catastrophes, large impact on income (*1)

0 40.0 80.0 120.0 160.0 (billions of JPY) Net Incurred losses related to natural catastrophes (*1) *2: Ratio of net incurred losses for COVID-19 in FY2020 to net premiums earned in FY2019. *1: 3 year average. Net incurred losses related to natural catastrophes based on Our figure is based on private insurance and net incurred losses excludes domestic non-life which benefited a financial accounting basis (TMNF figures for domestic) from great improvement in loss ratio for auto *3: Allianz, AXA, Chubb, Zurich Source: D&P research

Impacts of Natural Catastrophes and COVID-19 (Billions of JPY) 420.0 (normalized basis *4 )

 The impact of more than annual average natural 2020 *5 catastrophes and COVID-19 is controlled to approx. Revised 91.5 projections 20% of income through global diversification Impact of natural catastrophes and COVID-19 *5 -22 %

*4: Normalizing natural catastrophes to an average annual level and excluding the impact of COVID-19 *5: Natural catastrophes over annual average Copyright (c) 2020 Tokio Marine Holdings, Inc. 7 I．Group (Strategy) Power of Execution Next Step Next MTP Stable Business Platform

We have increased ROE by enhancing profitability and risk diversification through large-scale Mergers & Acquisitions in the U.S. and Europe We will continue to further increase ROE towards our goal

Low Capital efficiency High

0.0% Low TMHD (2014-2019)

Japanese P&C 1 Peer 1 Volatility ROE standard Peer 2 deviation 1.5%

Japanese P&C 2 TMHD (2009-2013) Peer 4 Peer 3 High 3.0%

3% 5% 7% 9% 11% (Cost of capital) ROE: Financial accounting basis. Figures for other companies are 2014-2019 averages. (2017 of AXA is excluded). Average ROE Peers: Allianz, AXA, Chubb, Zurich Source: Bloomberg Copyright (c) 2020 Tokio Marine Holdings, Inc. 8 I．Group (Strategy) Power of Execution Next Step Next MTP Promoting Integrated Group Management

Optimal allocation of diverse talents to globally leverage on expertise and knowledge

Generate Group’s collective strength

Domestic Non-life Domestic Life Insurance International Insurance Financial and general Insurance

Donald Sherman Christopher Williams Appointment as Co-CIO (Group Co-Chief Investment Officer) Co-Head of International Business Co-Head Delphi Financial Group CEO Co-CRSO (Group Co-Chief Retention Strategy Officer)

Internal Audit Reserving Specialty Desmond Yeo Daniel Thomas Philippe Vezio TM Asia Regional Head of Internal Chairperson of International TM Asia Deputy CEO ＆ Audit (additional post: TMHD) P&C Reserving Actuary Chief U/W Officer Expertise Committee (Transferred form TMHCC Barcelona) across the Group Reinsurance Cyber Insurance HR/Legal Barry Cook Daljitt Barn Caryn Angelson CEO of International Group Cyber Centre of Excellence at TMHCC TMNAS CHRO & CLO (TMHD Global Reinsurance Advisor) Global Head of Cyber Risk (additional post: TMHD)

Global Investment ERM Committee Digital Round Table ERM Digital Investment Strategy Committee Global Committee, etc. International Executive Retention Global Retention Global Information International IT Insurance Committee Strategy Strategy Committee Technology Committee

Established global task force and identified post-COVID-19 business environment, etc. Maintaining disciplined risk management while capturing business opportunities with Integrated Group Management

Our view on COVID-19 Impact on insurance business

Based on our view, identify medium- to long-term impact and core requirements for post-  COVID-19 will remain as COVID-19 permanent risk due to the Core business Expected impacts nature of disease requirements

 Balance between risk Digital capability/  Omni-channel sales with face-to-face and virtual communication avoidance and restarting data analytics economic activity will differ  Accelerate creation of new values with use of technology and data by country  Need to review operation model in response to digitalization  COVID-19 will accelerate DX and business model reform Resilience  Positive outcome  Preparing for uncertainties is essential for management recognized by businesses and individuals will increase (online sales, etc.) New normal  Need for HR system review to enable flexible workstyle work-style  HR development to enhance digital capability

 Need for flexible organization design that can respond to rapid and dynamic environmental changes

Incorporate details to strategy of each group company to build sustainable competitiveness

Utilize technology and data to implement digital transformation (DX) that builds competitive advantage

Achieve growth through internal systems reform and building new business model

Internal Systems Values Creation Reform (DX) Reform (DX) Improve productivity to achieve lean Create new growth axis, enhance capacities management system for resolving issues

Business Process/Operations DX Business model DX towards new growth

 Promote remote work and online sales  Enhance customer contact with digitalization  Digitalize business process  Polish core insurance function CX with digitalization (paperless operation, utilization of AI/RPA) , etc.  Enhance measures targeting active seniors/digital native generation , etc. Corporate Culture DX  Promote new workstyle, create corporate Resolution of Social Issues DX culture that supports employee initiatives and  Develop new products, services, and solutions change that lead to prevention and reduction of  Enhance digital resource recruitment and disasters , etc. development , etc.

Global Digital Synergies

Recruit / develop digital resource and utilize external knowledge; boost competitiveness with lateral deployment

Digital resource recruitment / development Collaboration with diverse partners

 Actively utilize external personnel with diverse career history and strong expertise  Accelerate data collaboration in  AI reenactment of accident. Introduced  Established “Data Science Hill Climb,” a program various areas leveraging on the new function for automatic calculation of for data scientist development under supervision strength of algorithms and machine liabilities between parties in auto accident by Professor Yutaka Matsuo of the University of learning. JV established in November Tokyo (TMHD original program)

 “Tokio Marine Innovation Program” seeks ideas for  Trade platform JV utilizing blockchain  As part of strategic alliance under implementation from employees to promote established with NTT Data, Mitsubishi consideration, participated in reinsurance innovation Corporation and MUFG Bank, etc. program

5 Labs

Tokyo London Established in April 2020 Supervise Global Labs ・ Daljitt Barn appointed as ・ Global Head of Cyber to ・ Research on latest technologies Silicon Valley and business model trends supervise the area • Identify start-ups ・ Identify start-ups • Support DX by group companies in North America NY Established in July 2020 Periodic Digital Round Table among Group companies for global knowledge Singapore Taipei sharing and synergy effect ・ Research/identify digital technologies Research/identify digital and new business models technologies and new Support DX by group companies in Asia business models Copyright (c) 2020 Tokio Marine Holdings, Inc. ・ 12 I．Group (Strategy) Power of Execution Next Step Next MTP Strategic Direction for Next Mid-Term Business Plan ESG To realize our long-term vision, enhance capabilities through business model reform and improving profitability of the insurance business

A global insurance group that delivers sustainable growth Long-term vision by providing safety and security to customers worldwide - Our timeless endeavor to be a Good Company -

Our aspirations for the long-term vision

Growth and stable high profit Win-Win situation with Glocal Synergy (Medium- to long-term target of over ¥500.0 bn × Stakeholders adjusted net income/around 12% adjusted ROE) 2+1 Growth Strategy Enhance profitability of New Markets × New Approach insurance business  Precisely respond to the quickly changing customer needs  Acknowledge issues including intensified natural and implement products/services and channel strategies catastrophes and low interest rates while utilizing business reflecting the market opportunities presented by hardening of premium rates and digitalization to enhance profitability of insurance business + Business investment for the next growth stage

Business Platform (Human Resources / Integrated Group Management / Culture / Technology / ERM)

Search for optimal solution to provide balanced values to all stakeholders based on our purpose

Our unchanging Protect our customers and society in times of need by delivering safety and security purpose

Alleviate concerns of households and Resolve social issues and contribute to provide support to move forward Customers Society creation of a resilient society

Provide an environment that enables Share- Employees Provide returns matching investment diverse employees to actively holders through profit growth participate and grow

Robust and agile organization

Many wisdoms and Agility to adjust and Passion to realize our Stay ahead of customers solidarity to overcome and society to capture Pursuit of speedy reform ability to execute purpose difficulties their needs strategies

1914 1998 2001 2020

Launched Japan’s first auto insurance Launched Japan’s first auto insurance Launched microinsurance in India Launched indexed insurance to to support motorization with coverage for personal injury and and contributed to addressing protect the livelihood of people realized early insurance payment poverty problems directly following an earthquake

1959 1999 2002 2020

Launched Japan’s first liability Amid rising cyber risk worldwide, Launched Super Insurance , a globally Developed insurance for offshore wind power generation projects to insurance to contribute to minimize UK-based Tokio Marine Kiln (TMK) unique integrated life and non-life support the spread of renewable consumer losses offered cyber-related coverage from insurance product energy early on

Premiums Direct Net Premiums Written *1 (Bar Graph) and Total Dividends (Line Graph) ￥3.99 trillion Domestic non- International Total life insurance *2 insurance *3 dividends *4 Dividends Tokyo Marine Holdings 133.0 billion established ￥

Founding

1879 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019 (FY)

*1: Excludes deposit premiums from policyholders *2: Premiums from Tokio Marine from FY2001 and prior, and combined premiums from Tokio Marine & Nichido and Nisshin Fire, etc. from FY2002 onward *3: Premiums from FY2002 onward when Tokio Marine Holdings was established 15 Copyright (c) 2020 Tokio Marine Holdings, Inc. *4: Does not include one-time dividends provided as capital level adjustment I．Group (Strategy) Power of Execution Next Step Next MTP Management Focused on People ESG

Promote diversity and spread our core identity to enhance Group competitiveness

Promotion of Diversity & Inclusion Spreading the core identity

Promoting overseas talent  CEO to engage in town hall meetings in Japan and overseas to  Excellent talent who join the Group through overseas M&A, are engage in a global dialogue with employees appointed to positions such as Group Co-Heads and global  Promote spread of group culture through town hall meetings to committee leaders further enhance group governance Promoting Success for Women  Tokio Marine Group Women’s Career College (TWCC) was established in Sep 2019 to assist female employees in voluntary career planning, and to ensure that women are active in their workplaces Overseas town hall meeting led by A town hall meeting led by the president of Promoting Success for Young the Group CEO (Before COVID-19) Tokio Marine & Nichido (During COVID-19)  An in-house venture program was established to support young talent who are eager to innovate Exciting and Rewarding Work Environments

* Promoting D ＆I Culture & value survey  Continue discussions on D&I around 4.3 points out of 5 the world (Proud to work for Tokio Marine Group)  Establish global Diversity Council chaired *FY2019 survey result (total of overseas and HD) by Group CEO to accelerate initiatives (FY2021) TMNAS’ Diversity & Inclusion Committee Developing Future Management Talent, etc.  Discussions on talent development for future management and corporate function talents held at global CXO meetings Placing in best place to work rankings around the world Copyright (c) 2020 Tokio Marine Holdings, Inc. (Ceremony for Great Place to Work Award in Brazil) 16 I. Group Shareholder (Shareholder Return) FY20 Projections Return Policy Capital Policy TSR/EPS FY2020 Revised Projections and Target KPIs

FY2020 projections FY2020 target Mid-term Goal (Normalized basis) *1

Adjusted net income ¥420bn ¥400 - 450bn *2 Over ¥500bn

Adjusted ROE 12.5% 10% or higher *2 Around 12%

Shareholder return

Gradually increase to Payout ratio *3 40% 35% or higher levels on par with global peers *4

Capital level ¥50bn *5 capital level adjustment Flexible execution Flexible execution adjustments as of end of September 2020

*1: Normalizing natural catastrophes to an average annual level and excluding the impact of COVID-19. *2: Calculated based on FY2017 normalized basis of ¥372bn. Specifically, net incurred losses relating to natural catastrophes are normalized to an average annual level, and the impact of FX fluctuations and the one-time impact of U.S. tax reforms are excluded. *3: Payout ratio is based on the five-year average adjusted net income. Based on original projections. *4: Payout ratio of global peers is currently approx. 50%. *5: The figure includes one-time dividends of approx. ¥25bn.

Copyright (c) 2020 Tokio Marine Holdings, Inc. 17 I. Group Shareholder (Shareholder Return) FY20 Projections Return Policy Capital Policy TSR/EPS Shareholder Return Policy Our primary means of shareholder return is dividends and we plan to sustainably increase total dividends along with profit growth

Dividends Capital level adjustment

 Payout ratio is at or above 35% of the 5-year average adjusted net  Adjust capital levels flexibly through share buybacks, etc. income  Gradually increase the payout ratio *1 to levels that are on par with based on a comprehensive consideration of the market global peers to achieve mid-term goal environment, business investment opportunities, etc.

High level shareholder return

Ninth consecutive year of higher dividends projected

200 *4 190 Global Peer Level 180 DPS (JPY) 160 140 40% 38% 36% 35% 35% Payout ratio *1

2016 2017 2018 2019 2020 Our Goal (Projections)（予想） *1: Payout ratio based on the original projection basis. Total dividends *2 (billions of JPY) 105.3 117.6 128.0 133.0 139.6 *2: The figure for 2020 (projections) is before reflecting share buybacks. *3: Total amount approved by the announcement date of financial results of each fiscal year. The figures include approx. ¥50.0bn for 2018 and approx. ¥25.0bn for *3 Capital level adjustment 50.0 150.0 125.0 50.0 50.0 2019 and 2020, respectively as one-time dividends. (share buybacks, etc.) (billions of JPY) *4: Payout ratio of global peers is currently approx. 50%.

Capital policy based on ESR ESR

(trillions of JPY) 153% 163% ESR *1 Implementation of; 4.3  Business investment, and/or 4.2  Additional risk-taking, and/or 2.7 Net 2.6 Net (Reference)  Shareholder return asset asset ESR after deducting value value restricted capital Risk Risk 210% 117 % End of Mar 2020 End of Sep 2020 Strategic consideration of; Nikkei Stock Target  Business investment, and/or 18,917 yen 23,185 yen Average Range  Additional risk-taking, and/or 0.44% 30Yr JPY interest 0.60%  Shareholder return rate 2.72% Credit Spread 1.36% 150%

 Aim to recover capital level through *2 accumulation of profits ESR sensitivity (End of Sep 2020)

 Control risk level by reducing risk-taking activities 10% 10% 100% +30% -30% +50bp -50bp appreciation depreciation -50bp +50bp

 De-risking +5pt +6pt  Consideration of capital increase +1pt +1pt  Review of shareholder return policy -1pt

*1: Economic Solvency Ratio -6pt -6pt Risk is calculated using a model based on 99.95%VaR (AA credit rating equivalent) -8pt

*2: Sensitivity based on parallel shift *3: See p73 of reference material for details Copyright (c) 2020 Tokio Marine Holdings, Inc. 19 I. Group Shareholder (Shareholder Return) FY20 Projections Return Policy Capital Policy TSR/EPS Strong Track Record Our steady implementation of management strategies has resulted in above-market TSR and an EPS that is comparable to our peers

TSR *1 EPS *3 CAGR(2014-2019)

Performance 3Y 6Y (Before Sep. 2020) As of end of Sep. 2020 *2 Tokio Marine 118 169 Peers

Peers *2 97 143 Average Maximum Minimum 400 MSCI World Insurance 100 135

TOPIX (Insurance) 97 141

TOPIX 104 141 337 +6.6%

300 Peers *2 241 +2.7% TOPIX 216 +1.9% 200 TOPIX (Insurance) -5.0% 214 MSCI World Insurance 100 210

Source: Bloomberg 0 2002April年 20024月 2004April年 20044月 April2006 年 20064月 April2008 年 20084月 April2010 年 20104月 April2012 年 20124月 April2014 年 20144月 April2016 年 20164月 April2018 年 20184月 April2020 年 20204月 *1: Total Shareholder Return (TSR): Capital return after reinvesting dividends. Stock price indexed at 100 as of April 1, 2002. *2: Allianz, AXA, Chubb, Zurich *3: Financial accounting basis Copyright (c) 2020 Tokio Marine Holdings, Inc. 20 II Domestic Business Strategy Tokio Marine & Nichido President & CEO Shinichi Hirose Tokio Marine & Nichido Life President & CEO Katsumi Nakazato

Copyright (c) 2020 Tokio Marine Holdings, Inc. 21 II. Domestic Non-Life Our Position Next Step Next MTP Largest Japanese Non-life Insurer with Growth Outperforming the Market Secure business efficiency advantages and steadily increase share in the domestic market with stable growth potential

Growth outperforming the market Share in domestic non-life market

 Top line *1 (billions of JPY) ■ TMNF  FY2019 *1,3  vs FY2010 *1,3 ■ Market *2

CAGR + 2.7 % 2.0% 1.5% Other, 1.1% 15.0% TMNF, 26.5% 1.0% AD, 14.0% 0.0%

SJ, -1.0% MS, 18.5% -0.8% CAGR + 3.3 % 26.0%

-2.0% -1.7% 2,486.2 1,851.4 Competitive business efficiency 26.5% Market 25.0% Share  Expense Ratio (all lines) TMNF Market *4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 35.0%  Net income CAGR 33.3% +6.0% 33.5%

169.9 Reduce workloads on a long-term basis 100.7 By 20-30% 30.8% 2010 2019 *1: Direct net premiums written *2: Total of the members of The General Insurance Association of Japan. Source: Website of the General Insurance Association of Japan, Insurance Statistics (Sompo Toukeigo) *3: Total of the members of The General Insurance Association of Japan. Source: Website of the General Insurance Association of Japan, company websites 2010 2019 *4: Total of the members of The General Insurance Association of Japan (excluding TMNF). Source: Website of the General Insurance Association of Japan Copyright (c) 2020 Tokio Marine Holdings, Inc. 22 II. Domestic Non-Life Our Position Next Step Next MTP Presence in Auto Insurance Market Support growth of non-life business by steadily increasing market share with increased coverage that meets the needs of our customers

Auto insurance growth potential Solid unit premiums growth

*5  Top line *1 (billions of JPY)  Achieved unit premiums growth with development of DAP which contributes to accident prevention, increase in coverage that CAGR 1,078.3 meets the needs of customers, and strengthening sales force, etc. +2.7%  Strengthen initiatives by increasing added values with further increase in coverage (new DAP in Apr. 2021) and sophisticated AI utilization, etc. 850.8 25.6% Policy coverage with room for growth (current ratio) Market Share *2 24.3% • DAP: several percentage points • Car rental expense coverage: about 60% • Vehicle insurance: about 70% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Number of policies outperforming the market *Growth rate, TMNF non-fleet unit premiums in FY2010 is set at index value of 100 113.8 115  Achieved strong growth with attractive products/services, superior agency system, increased activities, and high-quality claims service, etc.  As the number of owned automobiles gradually decrease (CAGR: -0.4%), steadily 110 capture number of insured automobiles by enhancing our strength 105 *Growth rate, FY2010 is set at index value of 100 TMNF number of insured automobile *3 115.0 111.7 100 Number of owned 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 110.0 automobiles in Japan *4 103.7 105.0 *1: Net premiums written *2: Direct net premiums written Source: Insurance Statistics (Sompo Vol.4864) 100.0 *3: Managerial accounting basis *4: Source: “Joyosha Dealer Vision (Passenger Vehicle Dealer Vision)” (FY2019) 95.0 *5: Drive Agent Personal (DAP). A product using original driving recorder with communications function that 2010 2015 2019 2025 2030 provides accident prevention and accident response services.

Copyright (c) 2020 Tokio Marine Holdings, Inc. 23 II. Domestic Non-Life Our Position Next Step Next MTP Specialty Insurance Growth Realize sustainable growth by contributing to solving social issues through expansion of specialty insurance with high growth potential, etc.

Specialty insurance growth potential Presence in renewable energy area  Strong expansion expected for transition to a  Top line *1 (billions of JPY) carbon-free society  Enhance initiatives by utilizing the expertise of Gcube CAGR 646.6 +4.1% and cooperation with major trading houses, etc. Enhance initiatives in SME market that supports 448.7 regional revitalization

 Market size of about ¥400bn, penetration ratio of 5-10% *2  Started digital sales to employees of SMEs belonging to Chamber of Commerce to enhance the SMEs company benefits

1H20 News Releases Packaged products for SMEs 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (billions of JPY) Packaged products for SMEs: • Legal trouble resolution support service (July 2020) 60060.0 4.4倍 52.2 Capturing increased needs created by COVID-19 • Business suspension clause/infectious disease coverage rider (January 2021) 40040.0 Group long-term disability income insurance: 20020.0 11.9  Respond to increase in teleworking, companies considering • Treatment and work support rider (October business succession, and restaurants providing to-go services 2020) 0 0 • Nursing care and work support rider 2010 2013 2016 2019 (October 2020) 1H20 News Releases • Microsoft Azure user cloud insurance (June 2020) Protection for increasing cyber risks • M&A NEXT (M&A insurance) (July 2020) • To-go/delivery comprehensive coverage plan (July (cyber risk insurance) 2020)  FY2019 uptake was several billion yen, but double-digit growth *3 *1: Direct net premiums written, including P.A. each term *2: Estimated from actual sales of our packaged products for SMEs and public data on the number of SMEs.  Market size of about ¥180bn (according to research firm), *3: As the risk may involve significant concentration of losses, build a system for capturing concentration/risk *4 management in addition to establishment of appropriate Group level underwriting framework. penetration ratio of 12% *4: The General Insurance Association of Japan (Survey on Cyber Insurance 2018)  In response to increased teleworking and Revised Personal Information Protection Act of 2022, further enhance 24 Copyright (c) 2020 Tokio Marine Holdings, Inc. efforts with coverage/services expansion and webinars II. Domestic Non-Life Our Position Next Step Next MTP Profitability Improvement of Fire Insurance

In addition to fire insurance rate revision, contribute to building a society resilient to catastrophes through initiatives on disaster prevention and reduction, and realize continuous RoR improvement

Fire insurance rate revision Arrange reinsurance/catastrophe loss reserves

Increase in natural catastrophes and water leak  Appropriate arrangement of reinsurance and catastrophe loss Issues damage in aging buildings reserves based on natural catastrophe risk and reinsurance market environment Industry insurance payment trend *1 (billions of JPY) Safety in preparation 4,000900.0 900.0 Other (water leakage, etc.)  Personalized video sent from Mobile Agent (app) Fire/lightning/ruptur e/explosion Information on preparation for typhoons and rainstorms delivered to 300.03,000 Over ¥1.3tn Natural catastrophes customers in an easy-to-understand video Natural *1 catastrophes *2 Actual data for residential  Alert on disaster prevention/mitigation properties up to FY2017. 2,000200.0 Over ¥900bn General Insurance Rating Cooperate with agents to deliver useful information Organization of Japan on disaster prevention/mitigation, measures against “Kasai hoken/jishin hoken 1,000100.0 no gaikyo (Overview of fire wind/salt damage, measures against flooding insurance and earthquake insurance) ”  NADIAct: Enterprise Disaster Prevention and *2 0 Actual results for fire Mitigation Alert System insurance in FY2018 and Distribute disaster prevention information utilizing real 2013 2014 2015 2016 2017 2018 2019 FY2019. Calculated based on figures published by time disaster prevention weather report and flooding The General Insurance Association of Japan risk management expertise (September 2020)

Advisory rate May 2018 Oct 2019 (TBD) Safety in recovery revision +5.5 % +4.9 %  Restoration by BELFOR Oct 2019 Jan 2021 Support early business Advisory rate Advisory rate revision +α revision +α reopening with advanced ＋Approx. ¥ 16 bn ＋Approx. ¥ 20 bn Our action (Before tax/net basis) (Before tax/net basis) cleaning technology of a disaster Before restoration After restoration Breaking down water recovery specialist damage rate for corporate fire insurance  Enhance insurance payout process Continuous efforts on various issues including long-term contracts Digitalize whole process to complete insurance claim process online

Copyright (c) 2020 Tokio Marine Holdings, Inc. 25 II. Domestic Non-Life Our Position Next Step Next MTP Further Improve Business Efficiency (1) Further reduce 20-30% of office work by FY2026 by reforming business process and work-style with effective use of digitalization. Use the time generated to provide optimal service for customers through pursuit of more value-added business

Initiatives between 2008-2019 Initiatives from 2020

2008-2014 2015-2019  Sales Build remote sales framework with superior customer experience (CX) and flexibility (smartphone contracting process and online  Business process reform  Work-style reform negotiations, etc.), minimize internal administration/inquiry project response Simplify business process with Respond to inquiries using AI,  Claims streamlined products / promote paperless process Build remote claims services framework with superior CX and administration / IT systems and use of tablets, etc. flexibility (complete insurance claims online, etc.), minimize (policy reporting/credit internal administration management, etc.)  Work-style, etc. Build paperless business process, renew internal communication  Empowering employees tools and office environment, build a structure that supports motivation Rotating employees from administrative positions to sales

High value-  Reduce sales administration by Sales added business administ- about 30% ration Sales administ- Reduce internal ration administration  Increase area course sales force Claims administ- By 20-30% Claims ration administ- FY2008: 120 ration FY2019: 1,951 2019 2026

Copyright (c) 2020 Tokio Marine Holdings, Inc. 26 II. Domestic Non-Life Our Position Next Step Next MTP Further Improve Business Efficiency (2) Enhance CX by effective use of digitalization and build a business model with focus on productivity and flexibility

Sales Claims

Reduce internal administration and build a structure focusing on sales Reduce internal administration and expand areas for providing value

• Complete online (self- Accident reception application) • Reenactment of accident / initial response • Expand coverage areas of Group Sales activity, etc. companies

• AI image recognition (efficiency) Loss review, etc. • AI elimination of fraud (support decision making, etc.)

• Utilize AI and chatbot to automate Settlement negotiation • Inquiries inquiry response, self-application Chat format communication • Centralize in Group company, etc. / progress report • Complete online (self-application)

• Digitalize contract related business Policy management (Online procedures, etc.) Various inspections • AI speech recognition (automate / reporting • Centralize administration in records) Group company / insurance payment • Automated approval

Other internal • Internal infrastructure renewal administration (Utilize Office 365, etc.) • Review various inspection (Various operations inspections, etc.) Prevention / Follow-up Services

Copyright (c) 2020 Tokio Marine Holdings, Inc. 27 II. Domestic Non-Life Our Position Next Step Next MTP Strategic Direction for Next Mid-Term Business Plan Build a framework that enables stable profit generation in uncertain environment with development of a business model based on best mix of digitalization and people’s power, and aim to become a company of choice by the customers that addresses social issues and continue growing Creation of new markets Enhance profitability of insurance business

Create markets focusing on growth markets by • Enhance initiatives for improving profitability of leveraging on collective Group strength while fire insurance and enhancing underwriting contributing to resolution of social issues in Japan ＤＸ discipline to build a sustainable fire insurance

Priority area system • Health care (contribute to healthy longevity society) • Enhance sustainable growth with combination • SMEs (contribute to regional revitalization) of investment and thorough business expense • Renewable energy (contribute to carbon-free society) Products / reduction • New corporate risks (increased cyber risks, etc.) Services • Increase growth of profitable specialty • Data strategy Marketing Customer insurance Contact Point Digital × People’s Building a lean business operation power Development of digital-integrated channels Sales Internal process process • Utilize digitalization to build simple and speedy • Enhance customer contact point and sales business process and realize flexible and Claims capacity of agencies with renewal of agency productive workstyle process systems, etc. • Pursue high value-added business at the same • Build a sales model utilizing online negotiation, time for further growth etc.

Organizational culture and people that create initiatives and motivation Improve employee Corporate culture Human resource Promote D&I engagement reform development

Joint creation of social values, contribution to sustainable society

Copyright (c) 2020 Tokio Marine Holdings, Inc. 28 II. Domestic Life Growth Strategy Integrated life & non-life Risk Control Next MTP Growth Strategy Maintain growth exceeding the market by focusing on profitable “protection-type products and installment variable annuities” and implementing unique product strategy

Focus on profitable “protection-type products Growth exceeding the market and installment variable annuities”

 Mainstay product for TMNL secured RoR above capital cost (7%)  Unique products in focus area to achieve growth exceeding the market TMNL mainstay product risk/return *1 (image) TMNL product portfolio TMNL growth capacity *5 Return *2 (FY2019 New Policies ANP ¥40.5bn) ＜Protection-type products> Protection- Installment + % variable type 7.8 Household annuities +5.0% 20% Products income Other Medical 65% Term Kit R 15% TMNL Market *6 ROR 7% 18% (Cost of capital) Market Link Medical Medical insurance *4 insurance *4 20% 17% +66.9 % Medical Kit R Other Household protection- Market Link Income type Term +24.7% 13% 17%

TMNL Market *6

Numerous unique products supporting strong growth

Household Medical Kit R Market Link 0 Risk *3 Income Term First in Japan medical Reduce First in Japan *7 investment risk insurance for insurance that returns with long-term inability to work unused premiums diversified investment

*1: Size of the bubble indicates new policies ANP for the product (FY2019 actual) *5: CAGR (2014-2019) of number of in-force policies for protection-type products and YoY % of number of *2: Value of new business and future release of cost of non-hedgeable risks (FY2020 forecast-basis) new policies in FY2019 for variable insurance *3: Sum of necessary capital for future fiscal years *6: Medical, cancer and fixed-term insurance for protection-type products, fixed-term for variable insurance *4: Excludes Medical Kit R Source: Insurance Statistics (Seimei Hoken Toukeigo), the Life Insurance Association of Japan website *7: In addition to instance of death, fixed coverage provided for reduced income throughout insurance period in case of inability to work caused by the five diseases Copyright (c) 2020 Tokio Marine Holdings, Inc. 29 II. Domestic Life Growth Strategy Integrated life & non-life Risk Control Next MTP Enhance Integrated Business Model for Life and Non-life Accelerate cross-selling by introducing competitive products for clear targets. Enhance integrated business model for life and non-life with further development of Group customer base to establish advantage in increasingly competitive market

Current cross-selling Further develop Group customer base  Utilize “Super Insurance” to cross-sell Deep cultivation of senior generation with integrated business model for TMNL & TMNF Policy Portfolio (Mar. 31, 2020) life and non-life ＜＞ Room for cultivation of senior customers TMNL Results TMNF Accelerate cross-selling  About 20,000 policies sold in first two months  Record sales second only to mega-hit product “Medical Visualize risks for the family 0 10 20 30 40 50 60 70 80 (Policyholder age) to propose optimal insurance Kit R” (about 200,000 policies sold  Super Insurance policies exceeded + × in a year, about 50,000 policies in first two months) 1.9 million Product that captures the needs of the market/agencies  Latest cross-sell ratio of 24.4 % New product “Medical Kit Yell” (Medical insurance with relaxed underwriting criteria, August 2020) Further cultivate the Big data analysis achieved improved product appeal and ease of sales customer base with the product to enhance  Relaxed underwriting standard for seniors with preexisting conditions or concerns over health and simplify sales administration integrated business 24.4 % model for life and non- 23.9 %  Industry top level price competitiveness for seniors life 22.6 %  Strong coverage/services Online medical Support health consultation and maintenance with hospital/doctor Mar. 2019 Mar. 2020 Sep. 2020 appointment service health advice app

Partially due to COVID-19 pandemic, accelerated digital sales initiatives, including fully online contracting process. With prolonged low interest rate environment expected, control interest rate risk by shifting to protection-type products and installment variable annuities and implementing strict ALM

Response to COVID-19 pandemic Interest rate risk control

 Led the industry with online contracting process and online Shift to protection-type products / installment variable annuities consulting by agencies and prevented fall in sales during the  Stop sales of long-term saving-type products with significant interest COVID-19 pandemic rate risks, and promote shift to protection-type products / installment variable annuities with lower interest rate risks Key processes for insurance application by customers (current) 2015 2019 Agency consultation Contracting process Oct. 2016 Available online or in person Can be completed by post Sales Suspension of long-term without face-to-face savings-type products transaction 4% Other Impact on top line Ratio of protection- <1Q FY2020 New policies ANP YoY (individual insurance + individual annuities)> type products and Promote 43% installment variable Non-life affiliated shift *2 *3 TMNL life insurance *1 Market annuities 57% 96%

New business margin *4 4.5 % 6.3 % -21.5% -26.4% 30Y JGB *5 1.28% 0.40% (Yearly average)

-55.4% Strict ALM  As a result of investment in super-long-term bonds in the past 18 Accelerate digital sales initiatives months, hedge ratio improved to about 90% as of end of Sep 2020 including fully online contracting process

*1: Average of Sompo Himawari Life and Mitsui Sumitomo Aioi Life *3: Ratio among products for individuals (excluding business insurance), new policy ANP basis *2: Total of the members of the Life Insurance Association of Japan (excluding TMNL and non-life affiliated life insurance) *4: Value of new business / Present value of new business premiums, including business insurance *5: Source: Bloomberg Copyright (c) 2020 Tokio Marine Holdings, Inc. 31 II. Domestic Life Growth Strategy Integrated life & non-life Risk Control Next MTP Strategic Direction for Next Mid-Term Business Plan To resolve the social issues in the era of 100-year lifespan, deploy integrated product/sales strategy in the three areas of seniors, healthcare and asset formation; and accelerate digitalization for overall customer contact point/business process also in preparation for post-COVID-19 era, to create a new growth path

Market-oriented integrated product/sales strategy

Seniors Healthcare Asset formation

• Develop products/services responding to the • Provide unique set of products and • Improve asset formation product appeal needs of seniors and improve underwriting services in response to the development by responding to the customers’ needs • Strongly promote cultivation of Group of healthcare technologies in the 100-year lifespan era customer base to enhance the integrated • New market cultivation starting with • Develop/increase sales force with high business model for life and non-life healthcare service financial literacy

Enhance customer contact and business process improvement with digitalization

Accelerate DX in preparation of post-COVID-19 era Promote R&D to secure competitive advantage

Maintenance/ Business process Digital sales insurance payout Products / Services Marketing enhancement • Build fully online • Promote fully online • Big data analysis • Digital marketing • Business process contracting process maintenance procedures • Leading-edge improvement • Build online consulting • Automated assessment medical technology • Promote digital know-how of insurance payout • IoT/wearables technology utilization

Unchanging values and business platform Spirit of insurance professional that Human Resource development / protects customers New normal work-style Pursuit of quality to be chosen by ERM customers

Co-Head of International Business Akira Harashima

Creating strong franchise by acquiring blue chip companies with unique strength In recent years, promoting selection and diversification of business to optimize business portfolio

2000 2007 2012 2015 2018 2020

Business diversification

Regional diversification Acquired Feb 2020 Secure entry point to emerging markets

Acquired Invested Announced Growth and business Aug 2018 Dec 2018 Jan 2020 diversification in the U.S. Established material presence in Acquired Acquired the U.S. and Europe May 2012 Oct 2015

Expand into non- Review business portfolio Acquired Acquired Japanese businesses Mar 2008 Dec 2008 TMK UK non- Japanese P&C in Life in Business emerging emerging Run-off July 2019 Tokio Marine markets markets Egypt Family Takaful Divested (-2000) Reinsurance Sep 2020 subsidiary Business development Divested Mar 2019 focused on Japanese clients

Achieve high profit growth and profitability exceeding the market by establishing robust specialty franchises in the U.S.

Robust specialty franchises Bottom-line focus (High profit growth and profitability exceeding the market)

＜Bottom-line *2 ＞＜Combined ratio ＞ Top 10 2015-2019 CAGR 2015-2019 Ave. べ in commercial lines *1 6.6 % 95.5 %

*3 Best in Class vs Market +4.7 pt vs Market *3 4.0 pt Favorable FY2020 ~ ＜Bottom-line *2 ＞ Specialty Markets （USD mn ） 1,600

1,200

Focus in niche markets, Specialized in HNW such as NPO, etc. insurance market 800

400

Strength in Mainly provides 0 employee benefit, etc. specialty products 2008 2015 2016 2017 2018 2019

*2. Annual after-tax profit on a local accounting basis. *1. The U.S. commercial P&C direct premiums written in FY2019, Source: S&P Global For 2017, the one-time impact of U.S. tax reforms was excluded. *3. Source: S&P Global Copyright (c) 2020 Tokio Marine Holdings, Inc. 35 III. International Strengths Current MTP Next MTP Profitable Business Model in Developed Market (2)

Maintaining competitive advantages of higher profitability and lower volatility based on diversified portfolio

Diversified business portfolio Higher profitability and lower volatility

100+ business portfolio in “our U.S. business” 10-year C/R in “U.S. P&C market”

Low Profitability High

0.0 % Medical Stop Loss Human Services Peer 3 Low

Crop Real estate Peer 4 Non profit Premium Composition Volatility

U.S. Surety organization Peer 2 C/R （image ） D&O 、E&O U.S. P&C 3 * *

5.0 % SD Japan P&C 1 U.S. P&C 1 Peer 1

U.S. P&C 2 Japan P&C 2 10.0 % 105.0 % 97.5 % 90.0 % Disability (life) High * Excess Workers’ Average C/R Compensation

Other non-life

*︓C/R of U.S. P&C business through 2010 to 2019, Source: S&P Global Peer ︓Allianz, AXA, Chubb, Zurich U.S. P&C Tokio Marine selected from P&C insurers focusing mainly on U.S. commercial business with market cap of Copyright (c) 2020 Tokio Marine Holdings, Inc. ︓ 36 ¥1.5+ trillion （Travelers, AIG, Hartford ） III. International Strengths Current MTP Next MTP Far-Reaching Business Expansion in Emerging Countries Strategic expansion focusing on markets with high growth potential in order to develop businesses generating ¥5bn-level profit in a stable manner India Thailand Brazil

 IFFCO-TOKIO General  Tokio Marine Safety Insurance  Tokio Marine Seguradora Insurance (49.0%) (Thailand) (99.3%) (97.8%)

2018 2019 Profit 2018 2019 2018 2019 Profit Profit 1.2 → ¥ 1.3 bn 2.0 → ¥ 4.7 bn 9.1 → ¥ 10.8 bn M/S No. 9 (4%) M/S No. 4 (8%) M/S No. 6 (5%)

¥1.0 tn ¥2.9 tn ¥3.6 tn ¥0.5 tn ¥1.0 tn

South Africa Malaysia  Hollard Holdings (22.5%)  Tokio Marine Insurans (Malaysia) (100%) 2015-2019CAGR 2018 2019 2018 2019 Profit Profit → ¥ 1.3 bn → ¥ bn 9.8 % (New－ Consolidation) 2.3 2.8 M/S No. 2 (10%) M/S No. 8 (5%) vs Market +2.2pt

Profits: Business unit profits Non-Life Premiums: M/S: Source: AXCO, IPRB, SUSEP, Swiss Re, FSCA Financial Sector Conduct Authority NWP for Tokio Marine, Figures in brackets by the company name: Ownership ratio as of Mar. 2020 GWP for others Copyright (c) 2020 Tokio Marine Holdings, Inc. 37 Figures in circles: GWP as of FY2019, Source: Swiss Re Source: Swiss Re III. International Strengths Current MTP Next MTP Strength in International Insurance

Achieve stable profit growth supported by the strength

Well-balanced business portfolio, Well-disciplined underwriting / strong specialty franchise Adequate risk control Strength Competitive Advantages Group level financial strength and Integrated Group Management sophisticated ERM

International: Business Unit Profits Further Risk Diversification & Lower Volatility ■Philadelphia ■Central & South America ■Delphi ■Asia ■TMHCC ■Reinsurance ■Europe ■Life ¥179.5 bn

¥52.7 bn*

¥3.5 bn

2002 2010 2019

Copyright (c) 2020 Tokio Marine Holdings, Inc. *: Before adjustment relating to natural catastrophe in 1Q 2011 38 III. International Strengths Current MTP Next MTP Initiatives During Current Mid-Term Business Plan

Steadily addressed issues and prepared for capturing “opportunities” in the future

 Establish “Co-Head of International Business” structure  Strengthen business platform through large M&A (PURE, etc.), Bolt-on M&A, Strengthening of and divestment Management Structure  Globalize corporate function (ERM ・Internal Audit ・IT Support, etc.)  Group-wide talent management (strategic allocation of executive candidates and experts)

 Reserve review, enhancement of underwriting discipline, reduction of limit, rate increase above Social Inflation / Medical Cost Inflation loss cost, prompt claim settlement (PHLY)  Rate and Self Insured Retention increase on Medical Stop Loss (TMHCC) Response to Changing Social  Shift to improve underwriting profit based on lower interest rate on each Group Company / Business Lower Interest Rate  Rate and Self Insured Retention increase on Excess Workers’ Compensation (DFG) Environment  Optimization of investment portfolio under lower interest rate environment

Risk Control by  Reduction of profit volatility through controlling group retention Reviewing Reinsurance Program  Appropriate reinsurance program based on NatCat and market environment

 Divestment of TMR Strengthening Review of  Restructuring of UK/EU business, Strengthening of TMK Management structure, and profitability Management Strategy/ of GC’s Business Restructuring improvement through focusing on areas / products where TMK has competitive advantage Management  Integration of Safety (acquired) and an existing subsidiary in Thailand Structure and Allocation of Group Operation Resources  Group-wide digital utilization and busuness process improvement

Contribute to the Group through both profit growth and risk-diversification

Strategic Direction for Next Mid-Term Business Plan Our Key Initiatives

Enhance capability to increase underwriting profits

Foster and increase “Pillars of profit”, including continued enhancement of synergies within the Group

Further accelerate innovation and improve operational efficiency under post COVID-19 environment

Effectively manage investment within Group risk appetite

Steady implementation of revival plan for respective group company

Seek further opportunity for strategic M&A

Strengthen global business management and governance capabilities

Key lines have realized rate increases above hardening market Aim to achieve higher profitability

Figures in brackets for FY2019 Premiums

General Liability (32.4%) Commercial Auto (16.6%) Umbrella (8.3%)

13.0% 12.3% 13.0% 30.0%

10.6% 25.0% 22.1% PHLY 11.0% 11.0%

Market *1 9.6% 20.0% 20.0% 9.0% 9.0% 15.0% 7.0% 7.0% 6.8% 10.0%

5.0% 5.0% 5.0% 2019.4Q 2020.1Q 2020.2Q 2019.4Q 2020.1Q 2020.2Q 2019.4Q 2020.1Q 2020.2Q

*4 Medical Stop Loss *2 (37.3%) U.S. D&O *3 (8.6%) Property D&F (2.3%) Shown on a yearly basis due to heavy volume in 1Q 30.0% 30.0% 30.0% 24.7% 23.5% 25.0% TMHCC 25.0% 25.0% 19.3% 23.4% 20.0% Market *1 20.0% 21.0% 20.0% 15.0% For Medical Stop Loss, 13.3% estimated loss cost (Leveraged Trend) is used because there is 15.0% 15.0% 10.0% no market data 10.0% 10.0% 5.0% 2018 2019 2020.1H 2019.4Q 2020.1Q 2020.2Q 2019.4Q 2020.1Q 2020.2Q

*1: U.S. Commercial P&C Market (Excluding Medical Stop Loss & U.S. D&O ) *2: TMHCC: Effective rate change basis, including higher deductible effect Source: COMMERCIAL PROPERTY / CASUALTY MARKET INDEX Q2/2020, Market: Estimated loss cost (Leveraged Trend) The Council of Insurance Agents & Brokers *3: Market: Public Primary D&O, Source: Aon 41 Copyright (c) 2020 Tokio Marine Holdings, Inc. *4: Market: Rate increase data for “Property” line total III. International Strengths Current MTP Next MTP Enhance Capability to Increase Underwriting Profits (2)

Continue / enhance improving profitability for some entities to increase profits

Improve profitability for PHLY (measures for social inflation) Improve profitability for TMK (Lloyd’s)

 Restructuring of UK/EU business  Implemented past reserve provision in FY2019 ($273M) and  Refocus on Lloyd’s business and focus on areas / products strengthened underwriting discipline where TMK has competitive advantage to improve *1 102.0% profitability 97.8%  Run-off unprofitable UK non-Japanese company business

95.3% 93.5%  Capturing market hardening expected in most lines of business in *1: Local management FY2020 & FY2021 2017 2018 2019 2020 1H accounting basis *3 TMK(Syndicate510)  Implemented proactive rate  Strengthened underwriting 80% *4 increase initiative ahead of peers. discipline on new and renewal Lloyd's Total Profitability will improve going book. The ability to win new

forward business book remains strong 69.2%  In line with 2020 plan even ＜Rate Increase ＞ 12% 9.9% under COVID-19 61.1%

PHLY 7.2% Steady progress of 8% （USD mn ） profitability 48.4% Around 50% 3.2% improvement 4% Market *2 490 520 490 40% 2017 2018 2019 2020 1H *5 0% 2018 2019 2020 1H *3: Local management accounting basis 10y ave. 2019 2020 Plan *4: Source: Lloyd’s Annual Report *2: Source: Willis Towers Watson *5: Excluding impact of COVID-19

Copyright (c) 2020 Tokio Marine Holdings, Inc. 42 III. International Strengths Current MTP Next MTP Foster and increase “Pillars of profit” (1) Stable profit growth through fee-driven Pure Group in HNW market with high growth potential

Pure’s Strong top-line growth *1 Customer loyalty supporting Pure’s growth (NPS *2 )

Achieved 22% 77 growth during 71 COVID-19 CAGR 47 52 pandemic 39 24 % (As of 1H20) 35

1,153 Homeowners Auto Apple Intel Pure Starbucks insurance insurance industry industry average average 963 *2: Net Promoter Score Source: Customer GURU, NICE Satmetrix 2019 Consumer Net Promoter Benchmark Study 781 （USD mn ） Original Services 640 responding to client needs

490 (Example) Aug. / Sep. 2020, Western U.S. Response to record scale wildfire  Information gathering from forecast companies or SNS and alert emailing to client  Worked tirelessly around the clock to 2015 2016 2017 2018 2019 2020 (image) prevent fire spread to multiple Coating property with gel *1: Premiums under management company properties to prevent fire spread

Copyright (c) 2020 Tokio Marine Holdings, Inc. 43 III. International Strengths Current MTP Next MTP Foster and increase “Pillars of profit” (2) Steady execution of strategies to increase future profit in market with high growth potential

Completed integration with Safety Bolt-on M&A by TMHCC Establish JV with Caixa Bank No.4 market share in country

Tokio Marine Insurance (Thailand)

Tokio Marine Safety Insurance JV Insurance (Thailand)

 May 2020: TMHCC acquired UK insurance agent  Established insurance JV with Caixa Bank, who has  February 2020: Completed integration of existing handling insurance in the area of renewable energy 70% market share in mortgage market, to sell highly subsidiaries with Safety (acquisition in Aug. 2018) business profitable home insurance (mortgage insurance,  Affected by impact from COVID-19 at the moment, homeowners insurance)  Insurance market size in the area is $500- but maximize synergy in the largest insurance 700mn *1 and is expected to expand further  Steady progress towards start of operation in market in Southeast Asia and fast-growing (GCube’s top-line to exceed $150mn in FY2023) February 2021 insurance market to sell personal and business insurance  Contribute to promoting creation of a sustainable  Aim at about ¥6 billion after-tax profit* 3 in five future through insurance business years (FY2025) (equivalent to Tokio Marine’s 25% equity holding) Growth of CAGR 2019 renewable 6% 2019 $ bn Home insurance $9.3 bn Top-line *5 Renewable Energy 1.8 Top-line *4 energy 73% Brazil Thailand business 51% Market 18% 27% Market 2015-2019 2015-2019 Top-line (Ratio to global Home insurance +7.2 % +7.6 % *4 CAGR *5 power supply) 2005 2020(E) 2035(E) 2050(E) Top-line CAGR

*1: Estimated by TMHD *3: FX on announcement *5: Source: Swiss Re *2: Source: McKinsey *4: Source: Brazilian insurance regulator SUSEP

Copyright (c) 2020 Tokio Marine Holdings, Inc. 44 III. International Strengths Current MTP Next MTP Foster and increase “Pillars of profit” (3) Create synergies by leveraging our global network and Group-wide expertise, etc.

Group synergies Impact on profits from expanded group synergies

318 (USD mn ）

Revenue Investment 170 Leverage our Leverage global network Delphi’s asset management capabilities Group synergies 2016 2019 Annual results:

 Sell TMHCC products like crisis management insurance and event cancellation insurance to Pure policy holders Optimize retention / Leverage group resources reinsurance on a group and economies of scale  Partnership between leading PHLY and Pure agents (sales partnership) basis  Joint marketing by Hawaii subsidiary and Pure for Hawaiian agent  Private jet UW support by TMNF

Accelerate digitalization to prepare for post-COVID-19 environment Tackle operational reform by making the most of advantages of integrated group management

Examples of digital utilization in Asia

Improve CX Introduce new sales model Cost reduction

Aim at CX improvement to earn Introduce new sales model to Aim at significant cost reduction customer loyalty in Asia capture growth potential in Asia to reduce large volume of manual processes in Asia

 Digital recommendation tool for sales  Expand partnership with platformers  Customer inquiry response and agent standardizing information and (E-commerce, ride sharing, etc.) product recommendation by chat-bot quality to customers Our life business in India grew despite  AI fraud detection on automobile market decline under COVID-19 insurance ＜Top-line growth *＞  Customer targeting and tele- 14% marketing with bank data to millions of bank clients  Streamline claim service operation Market with RPA Tokio Marine Life biz. in India -11%  Considering up and cross-selling with  Considering to establish “RPA Library”  Prompt insurance payment with AI information from healthcare platform each GC can utilize to share RPA (within 30 mins) know-how

Determination of intrinsic value will remain the key even in post-COVID-19 environment Capture further growth and pursue business diversification through various strategic options while maintaining discipline

M&A strategy Additional risk taking Developed / Emerging Developed markets Emerging markets markets

M&A M&A including bolt-on M&A Establish new offices Partnership (Bancassurance, etc.)

Strict acquisition criteria to maintain discipline

Cultural fit Cost of capital (7%)

Target High profitability Hurdle rate + risk premium + country interest rate spread Solid business model

Group CIO Yoshinari Endo

Copyright (c) 2020 Tokio Marine Holdings, Inc. 48 IV. Asset Management Group International Domestic Future Plans Group Asset Management Policy Secure long-term and stable investment income under a policy reflecting the characteristics of insurance liabilities with ALM at the core

Investment Portfolio (Sep. 30, 2020) Secure stable yield

Non-Investment Assets 12.6% Investment Assets ¥22.3 trillion Other 5.1% Domestic 8.4% HD Total equities Assets (Mostly business-related Domestic bonds equities) ¥25.5 trillion 42.6% Loans 6.1% (Sep. 30, 2020 ) (Mainly overseas CRE 3.6%) Interim Foreign securities, etc. 25.3% Japan Overseas Group (Foreign bonds 21.8%, CLO 3.5%) (Reference) Open Market Rates FY2020 Interim Period 1. Domestic bonds : Enhance ALM based on insurance liabilities

2. Foreign securities, etc./Loans : Profit contribution by asset US 10Y Treasury diversification 10Y JGB 3. Domestic equities : Mainly business-related equities

Each risk is managed within the ERM framework from an overall Group perspective Aim at profit contribution by taking credit risks under appropriate risk control

Control of interest rate risk Control of credit risk

 Control of interest rate risk with appropriate ALM in each  Take certain credit risk mainly with highly rated bonds country/entity  Diversify domestic and overseas risks and investment  For domestic life, interest rate risk is managed by methods matching asset and liability interest rate sensitivity rather  Leverage on the strength of DFG for appropriate than by using duration, which lacks the concept of integrated risk control and risk taking in US/Japan volume (about 90% hedge ratio, Sep. 30, 2020)  HD engaged in cautious monitoring including risk limit management, etc. Control of FX risk Bonds and similar assets by rating (Sep. 30, 2020)

 Each country/entity mainly makes investments in own Others currency corresponding to insurance liabilities  Foreign currency denominated assets are fully hedged using currency options and derivatives

Control of equities risk

 Continue to reduce business-related equities to improve capital efficiency

Copyright (c) 2020 Tokio Marine Holdings, Inc. 50 IV. Asset Management Group International Domestic Future Plans DFG’s Strong Asset Management Capabilities Achieved strong track record steadily outperforming the market utilizing profound investment expertise and abundant experience

Long-term investment style Stable track record

 Invest in interest rate assets such as bonds and loans that match [Investment Returns *2 ] the cash flow structure of the long-term, stable insurance  Secured positive returns throughout the period despite liabilities (liquidity risk is acceptable) some negative effects such as collapse of Lehman Brothers  Hold to maturity based on ALM regardless of short-term market fluctuation (average duration: 4 years for assets, 6 years for 8.0% liabilities) DFG 6.0% *3 Strength of DFG investment team Market 4.0%  Team experienced numerous market events including the collapse of Lehman Brothers, and produced stable returns 2.0%

throughout the market cycles 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

 Data gathering and analysis leveraging on broad network -2.0%  Continuous portfolio rebalancing in response on the *2: (Income + gains/losses on sale + impairment loss)/AUM *3: Average of US P&C companies (market cap $10bn+) (Source) SNL, Factset economy, etc.

Amount Category (FY2020 interim [Track record vs. index] period) Group Total Assets ¥25.5 trillion 7.63% 3.26% 3.21% DFG Proprietary Approx. ¥2.8 6.66% 2.87% assets Of which DFG trillion 4.04% 4.27% AUM *1 1.56% Group company Approx. ¥1.5 assets trillion

3-year average 2007-2019 3-year average 2007-2019 *1: Amount as of Sep. 30, 2020, with JPY / USD rate as of Sep. 30 (2017-19) Average (2017-19) Average Copyright (c) 2020 Tokio Marine Holdings, Inc. ■ DFG ■ Barclays Aggregate 51 IV. Asset Management Group International Domestic Future Plans DFG Asset Management Strategy

Aim to improve profitability with allocation based on return on risk among similar investment assets that generate profit from credit risk

DFG Investment Portfolio (including assets entrusted by Group company) Risk/return ratio for key assets

Other 7% Returns Loans 24% (Of which CRE loans 20%) High Improved profitability Mar. 31, 2018 with DFG’s strength ¥2.8 trillion Bonds 42% CRE Securitized bonds 27% Loan (Of which CLO 15%) CLO CMBS (A) (A) Other 6% Bonds (BBB)

Loans 31% Bonds (Of which CRE loans Sep. 30, 2020 Bonds 40% (AAA) 25%) ¥4.3 trillion Low

Low High Securitized bonds 23% (Of which CLO 15%) Risks

Invest in CLO, leveraging on DFG’s strong expertise and abundant experience

CLO investment (Sep. 30, 2020) CLO investment scheme and status

Balance Approx. ¥900bn  The Group mainly holds CLOs rated BBB or above which are unlikely to default at present Main asset DFG management entity  Stress testing indicates that CLOs rated BBB or above will not incur losses unless in case of 3 consecutive years of 10% or more default ratio Currency USD CLO 1 Insurance liabilities USD* Asset manager Group selects/replaces securities AAA investment Underlying assets Corporate loans 60 ー 65% targets Leveraged Leveraged loansLeveraged for loans 100- AA 7 ー 15% Portfolio Average rating A loan for 100-300 companies300 A 3 ー 8% composition market *1: Includes some JPY denominated insurance liabilities with FX risk companies BBB 3 ー 7% (Sep. 30, 2020) hedged BB ー B 5 ー 8% AAA-AA: 30% Equities 9 ー 10% A : 39% DFG’s strength in CLO investment BBB : 26%  Default ratio for corporate loans underlying CLOs is increasing, but was  Insurance liabilities allow holding to maturity 4.2% as of September 2020  Data gathering network built over the years Leveraged loan default ratio  Expertise to accurately capture the CLO tranche structure from contracts 12.0% Long-term Nov. 2009 average 10.0% 10.8% Sep. 2020 (from 1999)  Detailed risk management (monthly monitoring, 8.0% 4.2% 2.9% stress testing based on conservative scenarios, 6.0% strong checks on outside managers*2) 4.0% 2.0% *2: Asset manager for replacing underlying assets 0.0% Jul-16 Jul-11 Jul-06 Jul-01 Jan-19 Jan-14 Jan-09 Jan-04 Jan-99 Sep-20 Sep-15 Sep-10 Sep-05 Sep-00 Mar-18 Mar-13 Mar-08 Mar-03 Nov-19 Nov-14 Nov-09 Nov-04 Nov-99 May-17 May-12 May-07 May-02 Copyright (c) 2020 Tokio Marine Holdings, Inc. 53 IV. Asset Management Group International Domestic Future Plans Control of US Credit Risk Assets (CRE Loans) Invest in CRE loans, strictly selecting prime transactions, based on close cooperation between DFG and outside managers

CRE loans investment (Sep. 30, 2020) CRE loans investment scheme and status

 Invest in real estates strictly selected with consideration of LTV and ease of attachment Balance Approx. ¥920bn and collection, based on the outside manager’s broad network (TMHD has right to Main asset veto) DFG management entity  Short average holding period of about 3 years. Easy to change sectors after maturity Currency USD  Diversified investment without concentrating in specific region/sector Insurance liabilities USD* 1 Loan to Value*2 62%

Office Provide loans Agency Tokio Main property agreement Rental housing CRE Outside Marine category Manager Hotel CRE Loan Collect Group principal Tenant Active (Investor) *1: Includes some JPY denominated insurance liabilities with FX risk hedged and interest *2: Loan balance / collateral value involvement Lease agreement Property (Rent payment) Equity DFG’s strength in CRE loans investment ownership Sponsor

 Active involvement in decision making by attending the outside manager’s investment committee  Some interest deferral request has been made due to the impact of COVID-19, but (careful investment process and monitoring) appropriateness of payment plan has been confirmed through negotiation with  Active collection activities (workout) for the sponsors underperforming loans possible as the sole lender  New investments are limited to multi-family housing, warehouses and logistics facilities, etc., which are less affected by COVID-19 (shift of portfolio target sectors)

Copyright (c) 2020 Tokio Marine Holdings, Inc. 54 IV. Asset Management Group International Domestic Future Plans Reduce Business-related Equities Ongoing efforts to reduce business-related equities from the perspective of capital efficiency improvement • Book value of business-related equities declined to 35% from Mar. 31, 2002 through steady action • Sold total amount of approx. ¥2.2tn *1 since FY2002 • In this mid-term business plan, we will also plan to sell ¥100bn or more a year

Book value of business-related equities *2 Sales amount

Non-Investment Assets 12.6% Domestic Fiscal Year Plan Results Other Bonds 5.1% 42.6% Domestic 2015 ¥122.0bn Total Assets Previous 100 equities Mid-Term ¥25.5 trillion ¥100.0bn 8.4% (Sep. 30, 2020) Business 2016 ¥117.0bn Loans Plan or more 82 6.1% 2017 ¥108.0bn Foreign securities, etc. 25.3% 2018 ¥107.0bn 57 Current Mid-Term ¥100.0bn Business 2019 ¥107.0bn 42 or more 36 Plan 35 ¥72.0 bn 2020 (Sep. 30, 2020)

End of Mar 2002 End of Mar 2007End of Mar 2012 End of Mar 2017 End of Mar 2020 End of Sep 2020 Continue selling efforts to reduce risk *1: Market price at the time of sale *2: Indexed to the end of Mar. 2002 as 100. Copyright (c) 2020 Tokio Marine Holdings, Inc. 55 IV. Asset Management Group International Domestic Future Plans Future Plans in Light of COVID-19

Promote initiatives to secure stable investment returns in COVID-19 affected market environment

FY2020 Japan Overseas Decrease in Existing policies were prepared for the risk of investment return -¥4.0bn -¥34.0bn decreased return, but implement following measures due to COVID-19

(1) Continue ALM reflecting the characteristics of insurance liabilities  Steady implementation of ALM reflecting the characteristics of insurance liabilities under any environment

(2) Agile response to change in market environment (interest rate volatility and further economic downturn)  Increase the ratio of cash and deposits to prepare for further economic downturn from COVID-19 and agile investment upon market recovery  Considering the interest rate risks including sudden fluctuation, make balanced investment between fixed and variable rates

(3) Investment based on risk and return  Utilize DFG’s data network and analysis capacities, strictly select attractive investments based on risk and return with consideration of default losses for each asset

These presentation materials include business projections and forecasts relating to expected financial and operating results of Tokio Marine Holdings and certain of its affiliates in current and future periods. All such forward looking information is based on information and assumptions available to Tokio Marine Holdings when the materials were prepared and is subject to a range of inherent risks and uncertainties. Actual results may vary materially from those estimated, anticipated, expected or projected in the accompanying materials and no assurances can be given that any such forward looking information will prove to have been accurate. Investors are cautioned not to place undue reliance on forward looking statements in these materials. Tokio Marine Holdings undertakes no obligation to update or revise any of this forward looking information, whether as a result of new information, recent or future developments, or otherwise. These presentation materials do not constitute an offering of securities in any jurisdiction. To the extent distribution of these presentation materials or the information included herein is restricted by law, persons receiving these materials must inform themselves of and observe any such restrictions.

For further information...

Investor Relations Group, Corporate Planning Dept. Tokio Marine Holdings, Inc. URL : www.tokiomarinehd.com/en/inquiry/ TEL : +81-3-3285-0350