Fiscal 2017 First Information Meeting May 25, 2017 Contents Main - PDF document

Fiscal 2017 First Information Meeting May 25, 2017

Contents Main Points of Today’s Presentation 1 Ⅰ Management That Leverages Diversity Establishment of Business Portfolio to be Achieved 2‐4 Digital Strategy for Sustainable Growth 5‐6 Contribution to Sustainable Development of Society 7‐8 Ⅱ Progress of “Next Challenge 2017” Progress Towards Numerical Management Targets 9 EPS and Total Shareholder Return Per Share 10 Trends of Premium Income 11 Trends of Bottom Line and ROE (on a Financial Accounting Basis) 12 Ⅲ Situation by Business Segment Domestic Non-Life Insurance Business: Trends of Group Core Profit and Underwriting Profit 13 Domestic Non-Life Insurance Business: Trends of Net Premiums Written and Combined Ratio 14 Domestic Non-Life Insurance Business: Net Premiums Written by Class of Business 15 Domestic Non-Life Insurance Business: Underwriting Profit/Loss by Class of Business 16 Domestic Non-Life Insurance Business: Initiatives for Market Creation 17 Domestic Non-Life Insurance Business: Initiatives for Efficiency 18 Domestic Non-Life Insurance Business: Situation at Mitsui Direct General 19 Domestic Life Insurance Business: Trends of Group Core Profit 20 Domestic Life Insurance Business: MSI Aioi Life 21‐22 Domestic Life Insurance Business: MSI Primary Life 23‐24 International Business: Net Premiums Written 25 International Business: Group Core Profit 26 International Business: International Non-Life Insurance Business 27‐30 International Business: Asian Life Insurance Business 31 Asset Management 32‐35 Ⅳ Strengthening Systems for Enterprise Value Creation Promotion of ERM: Improvement in Profitability 36 Promotion of ERM: Status of Sales of Strategic Equity Holdings 37 Promotion of ERM: Diversification of Risk Portfolio 38 Promotion of ERM: Improvement in Financial Soundness 39‐40 Promotion of ERM: Capital Policy 41 Strengthening Corporate Governance 42 Ⅴ Shareholder Return Policy Shareholder Return Policy 43 Shareholder Return Policy: Past Shareholder Returns 44 Appendix Data Calculation Methods of “Group Core Profit,” “Group ROE” and “Shareholder Return Ratio” 45 Goals to Be Achieved 46 Business Environment and Issues from a Mid- to Long-Term Perspective 47 Factors in YoY Changes in Consolidated Net Income (FY2016) 48 Factors in Revision of Consolidated Net Income Forecast for FY2017 49 Major Assumptions for Earnings Forecasts for FY2017 50 Domestic Non-Life Insurance Business: Impact of Natural Catastrophes (FY2016) 51 Domestic Non-Life Insurance Business: Catastrophe Reserves (FY2016) (FY2017 Forecast) 52‐53 Domestic Non-Life Insurance Business: Incurred Losses and E/I Loss Ratio (FY2016) 54‐55 Domestic Non-Life Insurance Business: Voluntary Automobile Insurance (FY2016) 56 Trends in Combined Ratio (W/P) in the Domestic Non-Life Insurance Industry 57 Domestic Life Insurance Business: Trends in Embedded Value (EEV) 58 Domestic Life Insurance Business: Trends in Amount of Policies and Annualized Premiums (MSI Aioi Life) 59 Domestic Life Insurance Business: Impact of Interest Rates and Foreign Exchange Rates (MSI Primary Life) 60 Summary of International Business 61 International Business: Well-Balanced Portfolio after Acquisition of Amlin 62‐63 International Business: Impact of Brexit 64 Asset Management: Assets Under Management as of End of Mar. 2017 65‐66 Asset Management: MS Amlin’s Asset Allocation and Breakdown by Currency as of End of Dec. 2016 67 Asset Management: Breakdown of Interest and Dividends Income (MSI & ADI) 68 Chart of Corporate Governance System 69 Stewardship Activities 70 MS&AD’s Story of Value Creation 71 Activities to Solve Social Issues: Addressing Climate Change 72 Trends in Stock Price Related Indices 73 Reference Materials

MS&AD Group Overview Holding company Domestic Non-Life International Overseas subsidiaries Mitsui Direct General Insurance Domestic Life Mitsui Sumitomo Aioi Life Insurance Financial Services Mitsui Sumitomo Primary Risk-Related Services Life Insurance Abbreviations of company names used in this presentation. • MS&AD Holdings : MS&AD Insurance Group Holdings, Inc. • MS&AD : MS&AD Insurance Group • MSIG : Mitsui Sumitomo Insurance Group Holdings, Inc. • MSI : Mitsui Sumitomo Insurance Co., Ltd. • Aioi : Aioi Insurance Co., Ltd. • NDI : Nissay Dowa General Insurance Co., Ltd. • ADI : Aioi Nissay Dowa Insurance Co., Ltd. • Mitsui Direct General : Mitsui Direct General Insurance Co., Ltd. • MSI Kirameki Life : Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. • Aioi Life : Aioi Life Insurance Co., Ltd. • MSI Aioi Life : Mitsui Sumitomo Aioi Life Insurance Co., Ltd. • MSI Primary Life : Mitsui Sumitomo Primary Life Insurance Co., Ltd. Caution About Forward-looking Statements This presentation contains statements about future plans, strategies, and earnings forecasts for MS&AD Insurance Group Holdings and MS&AD Group companies that constitute forward-looking statements. These statements are based on information currently available to the MS&AD Group. Investors are advised that actual results may differ substantially from those expressed or implied by forward-looking statements for various reasons. Actual performance could be adversely affected by (1) economic trends surrounding our business, (2) fierce competition in the insurance sector, (3) exchange-rate fluctuations, (4) changes in tax and other regulatory systems, etc.

Main Points of Today’s Presentation Management that (1) Establishment of Business Portfolio to be Achieved leverages diversity Aiming to expand earnings in growth business and build a business portfolio to be achieved based on the stable foundation of the Domestic Non-life Insurance Business. (2) Digital Strategy for Sustainable Growth Developed research on advanced digital ICT and demonstration of experiments for utilization in the insurance business. (3) Contribution to Sustainable Development of Society Contributing to resolving social issues through the development of new products and services that make full use of the diversity of the Group. Overall progress Although there were fluctuations in the breakdown of the business domain, there was steady progress as a whole. The Next Challenge 2017 target for its final year is expected to be steadily achieved. Status of each (1) Domestic Non-Life Insurance Business business domain Combined ratio has been stable and growth of casualty insurance is driving profit expansion. (2) Domestic Life Insurance Business Established a profit structure according to the environment by product and sales strategies. (3) International Business Although profit showed negative growth against the plan in FY2016 due to the frequent occurrence of natural disasters and the exchange rate effects, it will be steadily growing from FY2017. Status of driver (1) ERM initiatives ROR of Domestic Non-Life Insurance Business steadily improved, steady progressing toward 10% ROE to be achieved in the future. (2) Corporate Governance Increased the ratio of outside directors and created a more transparent governance structure that takes advantage of diversity. Shareholder returns The annual dividend for FY2016 is planned to be ¥120 (an increase of ¥30 year-on-year). Forecast for FY2017 is ¥130. 1 Ⅰ. Management That Leverages Diversity