Tokio Marine Holdings, Inc.

FY2024 adjusted net income including gains on sales of business-related equities was JPY680.9 billion, up JPY27.9 billion versus the February forecast; normalized adjusted net income excluding one-off effects was JPY679.0 billion, up JPY82.5 billion and 14% year over year. Business-related equity sales were JPY922 billion, versus the initial JPY600 billion plan, and adjusted net income including those gains was JPY1.215 trillion. For FY2025, management guided to JPY700 billion of adjusted net income excluding gains on sales of business-related equities, JPY1.100 trillion including such gains, and business-related equity sales of JPY600 billion. DPS is planned at JPY210 for FY2025, up JPY38, and the company plans JPY220 billion of share repurchases in FY2025, with JPY110 billion approved as the first step.

CEO Komiya framed FY2024 as a strong year driven by major international businesses, Japan P&C rate increases, and lower large losses, while acknowledging some wind-aided benefit from favorable FX and reserve effects. He emphasized that Tokio Marine is focused on core insurance profit rather than gains from selling business-related equities, which he said are not directly tied to corporate value. His tone was confident but measured, repeatedly pointing to resilience, diversified earnings, and disciplined capital policy.

CFO Okada focused on shareholder returns and capital allocation, saying dividends remain the core of returns and should track EPS/profit growth. He reiterated the plan to use capital first for M&A and risk-taking that improves ROE, and to buy back shares if attractive uses are not available, with FY2025 repurchases set at JPY220 billion and a current ESR of 149% cited by management. He also said FY2024 business-related equity sales reached JPY922 billion, well above the initial plan, and that sales should continue toward the long-term target of reducing the balance to zero by FY2029.

Analysts pressed management on inflation, North America social inflation, reserve adequacy, CRE loan losses, and the pace of business-related equity sales. Management said U.S. social inflation and Japan repair-cost inflation are being monitored closely, with FY2024 unit claim cost growth ending at 7% versus an initial 4% assumption and FY2025 assumed at 6%. On CRE loans, they said the outstanding balance should fall from $11 billion to $9 billion by end-FY2025, that workouts are ongoing, and that the current reserve level is adequate; on equity sales, Okada said the FY2025 JPY600 billion target is executable, though he did not provide the exact progress-to-date. Management also said Trump tariffs and Moody’s sovereign rating actions are not expected to materially affect the plan, and that M&A interest is currently mainly bolt-on, with no M&A upside baked into guidance.