2017 INTEGRATED ANNUAL REPORT WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 We will be there for our customers, playing our part in society in times of need. We will balance our strength as an organization with compassion as individuals, looking beyond profit to deliver fully on our commitments. Through our collective efforts, we will strive to be a Good Company, living up to the trust placed in us. In Times of Need When Venturing into a New Area We Want to Be a Strong and Reassuring Presence Integrated Annual Report 2017 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Always Mindful of This Spirit... Tokio Marine Group Will Continue Taking on Challenges Tokio Marine Holdings 1 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Tokio Marine Group Corporate Philosophy With customer trust as the foundation for all its activities, Tokio Marine Group continually strives to raise corporate value. Through the provision of the highest quality products and services, Tokio Marine Group aims to deliver safety and security to all our customers. By developing sound, profi table and growing businesses throughout the world, Tokio Marine Group will fulfi ll its mandate to shareholders. Tokio Marine Group will continue to build an open and dynamic corporate culture that enables each and every employee to demonstrate his or her creative potential. Acting as a good corporate citizen through fair and responsible management, Tokio Marine Group will broadly contribute to the development of society. 2 Integrated Annual Report 2017 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Contents Management Vision “To Be a Good Company” 1 About Tokio Marine GroupAbout Tokio Growth Strategies Marine Group’s Tokio Tokio Marine Group’s Value Creation Model 4 Message from the President and Group CEO 6 About Tokio Marine Group 13 History of Tokio Marine Group 14 Tokio Marine Group Now 16 Tokio Marine Group: The Year in Review 20 Main Financial and Non-Financial Data 22 Tokio Marine Group’s Growth Strategies 24 Overview of the Management Strategies 25 Group CFO on Tokio Marine Group’s Capital Strategy 27 Group CRO on Tokio Marine Group’s Risk Management 29 Group Synergies 30 Continuously Enhancing Corporate Value Group CSSO on Mid-to-Long-Term Strategies and Creating Group Synergies 31 Continuously Enhancing Corporate Value 32 Initiatives to Enhance Corporate Value: Environment/Society 33 Contributing to the Creation of a Sustainable World through International Initiatives 33 Protecting the Earth 34 Providing Safety and Security 36 Supporting People 38 Group Governance: The Initiatives That Underpin Our Endeavors to Enhance Corporate Value 40 Directors and Audit & Supervisory Board Members 42 Operations Section Aligned Group Management 44 Dialogue with Shareholders and Investors 46 Corporate Governance to Support Sustainable Enhancement of Corporate Value: Outside Officers on Corporate Governance 48 Measures to Strengthen Corporate Governance 52 Fundamental Corporate Governance Policy 54 Internal Control System, Compliance, Risk Management and Crisis Management 57 The Power of Our People: The Initiatives That Underpin Our Endeavors to Enhance Corporate Value 60 Financial Data An Explanation of Human Resource Strategy by the Group CHRO 60 Group Synergies and Human Resource Exchange in Japan and Overseas 62 Promotion of Diversity and “Innovation in Work Style” 64 Operations Section 66 Domestic Non-Life Insurance Business 67 Domestic Life Insurance Business 72 International Insurance Business 75 Corporate Data Financial and General Businesses 84 Financial Data 87 Corporate Data 149 Tokio Marine Holdings 3 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Tokio Marine Group’s Value Creation Model Tokio Marine Group’s long-term vision is to be a global insurance group that delivers sustainable growth while providing safety and security to customers worldwide—to be a “Good Company” now and for the next 100 years—and we are pursuing initiatives to enable us to be a “Good Company”. Our Value Creation Model is a long-term PDCA cycle, which generates various kinds of value, and is based on our management vision and corporate philosophy. For more information about the overall concept and details of the Value Creation Model, please refer to the Message from the President and Group CEO. Tokio Marine Group Strengths Value Creation Process Value Creation Providi ng a Se and Sec nse urity B of S and aft oth afe Our Group DNA er Ac bef ty Resolving Social Issues/Enhancing Corporate Value cide ore Domestic Non-Life nts Insurance Business Providing Safety and Security to Customers, Local Communities and P r Well-Balanced o Society Worldwide through Aligned Group Management t d n u e the Insurance Business Business Portfolio Achieve sound, c t m transparent D e e g management v Domestic Life a e n Group Synergies l a Management Vision o p Insurance Business M Group m t Diversity e Governance e s n s The Power of t A Our People Expanding Global Network A global insurance Developing Employees group that delivers and Partners Who Support International sustainable growth by providing safety and security and Bring a Virtuous Cycle Insurance Business to customers worldwide to Local Communities Expertise and and Society Accumulated Know-How Achieve sustainable growth and s enhance capital efficiency centered on e Enterprise Risk Management (ERM) ic Contributing to a rv e Management Strategies S Sustainable C d la n im a Global Environment Financial and s s t Se uc General Businesses rv d Sound Financial Base ice ro ¥ s g P idin rov P Continuously Enhancing Shareholder Value We will link value creation and our Group strengths to continuously enhance corporate value. 4 Integrated Annual Report 2017 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Tokio Marine Group Strengths Value Creation Process Value Creation Providi ng a Se and Sec nse urity B of S and aft oth afe Our Group DNA er Ac bef ty Resolving Social Issues/Enhancing Corporate Value cide ore Domestic Non-Life nts Insurance Business Providing Safety and Security to Customers, Local Communities and P r Well-Balanced o Society Worldwide through Aligned Group Management t d n u e the Insurance Business Business Portfolio Achieve sound, c t m transparent D e e g management v Domestic Life a e n Group Synergies l a Management Vision o p Insurance Business M Group m t Diversity e Governance e s n s The Power of t A Our People Expanding Global Network A global insurance Developing Employees group that delivers and Partners Who Support International sustainable growth by providing safety and security and Bring a Virtuous Cycle Insurance Business to customers worldwide to Local Communities Expertise and and Society Accumulated Know-How Achieve sustainable growth and s enhance capital efficiency centered on e Enterprise Risk Management (ERM) ic Contributing to a rv e Management Strategies S Sustainable C d la n im a Global Environment Financial and s s t Se uc General Businesses rv d Sound Financial Base ice ro ¥ s g P idin rov P Continuously Enhancing Shareholder Value We will link value creation and our Group strengths to continuously enhance corporate value. Tokio Marine Holdings 5 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Message from the President and Group CEO We aim to be a company that plays an important role in society, a “Good Company”. Through continuous group effort, we will strive to be recognized as such by all of our stakeholders now and for the next 100 years. Our group vision is “To Be a Good Company”. Within this vision the phrase “to be” carries a significant meaning—it indicates our ongoing determination and our commitment to our timeless endeavor “To Be a Good Company”. Tsuyoshi Nagano President and Group CEO 6 Integrated Annual Report 2017 WorldReginfo - e8a53897-488b-41a1-8dff-01214076d916 Tokio Marine Group has a Corporate Philosophy of continually striving to earn customer trust and consistently raising our corporate value. Guided by this philosophy we have been implementing many key initiatives to realize our long-term vision: “to be a global insurance group that delivers sustainable growth by providing safety and security to customers worldwide – our timeless endeavor to be a Good Company now and for the next 100 years”. When we use the phrase “Good Company” it means that we will provide value to our customers and society by being there for them in their times of need. By executing on this commitment we will earn customer trust and this will enable us to improve our corporate value over many years and be regarded as a Good Company. In other words, the purpose of what we do every day is to help our clients and society, not simply to pursue profits in the short-term. Profits are the result of doing business in the right way, they are an indicator of the trust that we earn from our clients and society through our activities. With this purpose in mind, our principal focus is on meeting the expectation of customers and society, therefore success is a result that follows. We consider this cycle based on building customer trust first to be of critical importance. A Good Company is driven by the power of its people and their teamwork. Insurance is called a people’s business because insurance is essentially a promise that is based on trust. Trust is earned by our people and the quality of what they do. In this sense, our people are our product. Therefore, the most important step in building a Good Company is to ensure our people are motivated and passionate and our team is driven by a sense of purpose, which is to help our customers and society. For our Good Company vision, there is no goal or finish line. Once we think our goal is met, we will no longer evolve.