Full Year 2025 Tokio Marine Holdings Inc Earnings Call Transcript
Key Points
- Tokio Marine Holdings Inc (TKOMF) reported a significant increase in adjusted net income for fiscal 2024, reaching JPY608.9 billion, surpassing the February forecast by JPY27.9 billion.
- The company achieved a 14% year-on-year growth in normalized adjusted net income, driven by strong performance in major international businesses and favorable exchange rates.
- Sales of business-related equities exceeded expectations, amounting to JPY922 billion, which was 1.5 times higher than the initial forecast.
- The dividend per share (DPS) for fiscal 2024 was increased by JPY10, resulting in a 40% growth, and further growth is expected in fiscal 2025 with a projected DPS increase of JPY38.
- Tokio Marine Holdings Inc (TKOMF) plans to repurchase JPY220 billion of its own shares in fiscal 2025, demonstrating a commitment to shareholder returns and disciplined capital policy.
- The company experienced a decrease in life insurance premiums by 44% due to block reinsurance implementation, impacting overall premium growth.
- Profit in the Asian life insurance segment decreased due to a drop in interest rates and a decrease in prior year reserve takedown.
- There was a large capital loss on CRE loans in November, leading to a revision of expected capital loss from minus $265 million to minus $440 million.
- Japan P&C business faced profit declines due to higher auto loss costs, increased natural disaster budgets, and prior year reserve development for liability insurance in North America.
- The international business showed flat growth year-over-year when considering the strong yen, although it achieved a 5% growth excluding exchange rate impacts.
Good evening, everyone. My name is Komiya. Thank you very much for taking time out of your busy schedule to join us today. I would also like to thank you for your continued support towards Tokio Marine.
First of all, I would like to begin by explaining the content of the financial results for fiscal '24 and the message from the management based on these results. Please turn to page 3 of the document. There are three main points I would like to convey to you today. The first point is about fiscal 2024 results. Our management places more emphasis on adjusted net income, excluding gain on sales of business-related equities, i.e., core profit of insurance business.
And this figure on an actual basis was JPY608.9 billion. This is an increase by JPY27.9 billion over the full year forecast announced most recently in February. This is due to the appreciation of the yen against the foreign currencies used by Japan P&C in its financial results as of the end of March
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